As the Cambodian economy continues to develop, the government is looking to exploit the country’s excellent natural and human resources. One area that is primed for expansion is the tourism industry.
Over the last few years Cambodia and China have developed a close relationship and cooperate in a number of spheres. Chinese business are looking for investment opportunities in Southeast Asia and Cambodia is looking to attract that investment.
Guangzhou R&F Properties, a Chinese real estate developer plans to invest $3 billion in 5 years to build luxury hotels in the capital Phnom Penh and coastal Preah Sihanouk province. Guangzhou R&F’s chairman, Zhang Li, discussed the plan with Cambodian Prime Minister Hun Sen, who welcomed the idea.
Hun Sen said Cambodia has an attractive investment environment for foreign companies due to its ‘political stability, good infrastructure, and sound economic growth’. That statement rings true considering the string of luxury hotel brands that plan to build properties in the country. Hyatt and Shangri-La both have signed development agreements in the last few years.
Guangzhou R&F will partner with the Cambodian enterprise Royal Group in this joint venture. Some of the proposed developments will be in close proximity to the Chinese-run Sihanoukville Special Economic Zone (SSEZ). China is investing across a wide spectrum of industries in Cambodia.
It’s not hard to see the attraction for all parties. Cambodia receives much sought-after foreign capital and investment, while the Chinese company see a growing economy with excellent investment opportunities. The new hotels could soon be filled with Chinese tourists supporting the local economy and increasing exchanges between the two countries.
China Report ASEAN 