Workshop on the Implementation of the Interim Master Plan on Intermodal Transport Connectivity and Logistics of Cambodia in 2021
- 15 July, 2022
- Posted by: EuroCham Cambodia
On July 14, Mr. Bunthan Suy, EuroCham Transport, and Logistics Committee Chairman, and Mr. Zola Taing, Public-Private Dialogue Coordinator of EuroCham, joined the Workshop on the Implementation of the Interim Master Plan on Intermodal Transport Connectivity and Logistics of Cambodia in 2021.
Overview of Foreign Direct Investment (FDI)
Despite the COVID-19 pandemic, FDI remained relatively strong during 2020. According to the National Bank of Cambodia (NBC), FDI inflows reached $3.5 billion, equal to 13.6% of the GDP. This represented a slight contraction of -1% compared to 2019, but it was viewed as modest decrease, partly thanks to the Cambodia-China Free Trade Agreement (CCFTA). According to NBC, China continued to account for about half of total approved FDI.
In 2020, exports increased while imports decreased compared to 2019. According to the Asian Development Bank (ADB), the trade deficit decreased from $7.3 billion in 2019 to $3.6 billion in 2020. Exports increased from $15 billion in 2019 to $17 billion in 2020. Imports decreased from $22.2 billion in 2019 to $21 billion in 2020.
Three main road developments were completed including 34 roads in Preah Sihanouk province, 38 roads in Siem Reap province, and 190 kilometres of highway between Phnom Penh and Preah Sihanouk.
There are 652 total kilometres of railway from Poipet to Phnom Penh and from Phnom Penh to Preah Sihanouk. However, rail transport continuously decreased in 2019 and 2020.
Sea transport has steadily increased for the last five years. The Preah Sihanouk Seaport is developing a new container port (2020-23) with support from the Japan International Cooperation Agency to receive 5,000 twenty-foot equivalent units (TEUs) and ships with capacities of 60,000 deadweight tonnage (DWT.) The Ministry of Public Works and Transport (MPWT) is also conducting study on the Port Electronic Data Interchange system.
Air cargo transport decreased from 78,959 tons in 2019 to 55,344 Tons in 2020 (approximately a 30% decrease). However, the Cambodia Secretariat of Civil Aviation and Boeing expected that aviation sector will recover in 2023 and 2024.
Following an MPWT survey in 2021, road transport costs for a 40-foot container from Phnom Penh to:
- Preah Sihanouk was $200
- Poi Pet was $645
- Bavet was $278
- Prey Vor was $200 (It is important to notice that Prey Vor is the new border gate with Vietnam and the survey results showed that the expense was lower compared to Bavet)
Ship transport for a 40-foot container from Phnom Penh to:
- Singapore was $479
- Los Angeles was $13,921
- Rotterdam was $13,600
This summary of the workshop was compiled by the EuroCham team for informational purposes only and is subject to corrections by relevant authorities.