The finance minister is encouraging Korean investors to pursue opportunities in Cambodia offered by five key sectors – green infrastructure, agriculture, tourism, logistics and digital development – with a focus on the precise provisions of a bilateral free trade agreement (FTA) between the two countries that is set to take effect soon.

Minister of Economy and Finance Aun Pornmoniroth, one of the Kingdom’s 10 deputy prime ministers, made the latest appeal on March 29 at his ministry during a meeting with South Korean Minister for Government Policy Coordination Koo Yun-cheol.

The FTA will come into effect 60 days after both countries deposit their instrument of ratification, a document by which a country formally agrees to be bound by a treaty, which should enter into effect no later than June 30, according to Ministry of Commerce spokesman Penn Sovicheat.

In a finance ministry statement issued later on March 29, Pornmoniroth noted that South Korea has committed a line of concessional credit worth about $1.2 billion over 2022-2026 under a new framework arrangement (FA).

The minister expects the priority projects and areas of focus for the FA to be determined at the 4th Korea-Cambodia Integrated ODA Policy Dialogue which is set to be held “soon”.

“In addition to the concessional loans received from the Korean side to develop the necessary infrastructure in Cambodia, Korea should invest more in Cambodia in other important areas, including green infrastructure, agriculture and tourism industry as potential sectors to boost Cambodia’s economic growth.

“Development of the logistics and digital sectors has also become a priority area, which the Royal Government of Cambodia has been focusing on. Therefore, mobilisation of capital investment from the private sector, both domestic and foreign, is an indispensable factor contributing to the socio-economic development of Cambodia,” he was quoted as saying.

Koo vowed to spur on bilateral trade and private sector investment, as well as persuade new Korean players to enter the Cambodian market. He also lauded the results of the Kingdom’s battle against the Covid-19 crisis, specifically the relatively blunted economic impact, according to the statement.https://www.phnompenhpost.com/business/five-sectors-korean-investors