FDI Drop: No Need To Panic

March 2008 | Market Strategy

The 2007 Approved Investment Report, jointly released by the Cambodian Development Council (CDC) and the Cambodian Investment Board (CIB), has revealed that total foreign investment in Cambodia in 2007 fell to US$2.7bn from US$4.3bn a year before - 37.2% decline. However, we believe that this drop reflects the notoriously volatile nature of FDI flows rather than any major deterioration in Cambodia's investment climate, although we note that improvements still need to be made if Cambodia is to continue attracting investment from overseas.

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