Although the US aims to see an increase in American investment in Cambodia, the rule of law and corruption form a barrier to attracting investment from US companies to Cambodia, according to Melissa A Brown, the US deputy assistant secretary, Bureau of East and Pacific Affairs.
“As we look at how important the US market is for Cambodian goods, we are also looking at ways to raise American investments here in Cambodia … that was part of my fruitful conversation with the Cambodian government,” she said at a press meet following the AmCam Exchange event on December 15. “I think in order to realize our potential, we need to work closely with the Cambodian government to ensure that the rule of law is respected, that there is certainty and predictability. We should also work together to combat corruption because those are the kind of things that could perhaps give US companies cause to further their investment here.”
Earlier at the AmCam Exchange event, Brown said the US is the most important market for Cambodian exports, with shipments to the US valuing over $12 billion in 2022.
“The US is a long-term friend of Cambodia and plays a key role in Cambodia’s remarkable economic growth,” she noted, adding that she would like to see more American investments coming to Cambodia. “American investment comes with a higher standard of technology, environmental protection, labor, and training.”
Just a day earlier, Brown met with Sok Chenda Sophea, Minister of Foreign Affairs, followed by a discussion with Sun Chanthol, first vice-chairman of the Council for the Development of Cambodia on bilateral relations. The dialogue focused on trade, expanding investment and participation as a way to improve and enhance cooperation and relationships between the two countries.
“Both the Deputy Prime Minister and Deputy Assistant Secretary reaffirmed commitments to enhance mutually beneficial cooperation across various sectors, including trade and investment, development assistance, and people-to-people exchange,” the Ministry of Foreign Affairs stated.
In a Facebook post, Sun Chanthol said he requested the US to promote direct investment both ways during his talk with Brown, where he pointed out the virtues of Cambodia’s new Investment Law, which encourages foreign investors to participate in all sectors.
Responding to that, Brown expressed interest in jointly reviewing their cooperation on socio-cultural conservation, education, health and sectors with potential investment in both countries. She also urged Cambodia to consider improving issues related to tax transparency and the effectiveness of legal standards to build on past efforts to enhance its investment climate.
Chan Sophal, director of the Centre for Policy Studies, told CamboJA that issues with the rule of law and corruption have long existed. He observed that although foreign investments in Cambodia are diverse, they are still not enough for Cambodia to grow.
“I think it might be because Cambodia is not attractive when compared to Vietnam and Thailand, and other regional countries,” he said.
Pen Sovicheat, a spokesperson for the Ministry of Commerce, declined to comment, saying he was busy.
Meanwhile, activism, freedom of expression and democracy were also discussed by Brown during her trip here, where the US plans to continue talking to the Cambodian government regarding people’s power to exercise their right including freedom of expression.
“It is really a priority for us to continue raising key cases like Seng Theary, Kem Sokha, and Chhim Sithar, where we would like for the government to take action and ensure that political opposition leaders are not unjustly detained. That they can be released and be able to express themselves,” she added. “We will continue to have dialogues with the new Cambodian government about how we can approach this more positively.”
