More than $1.2 billion dollars have been invested in Cambodia’s construction sector in the first six months of 2022, with China ranked top, a senior official said this week.
Secretary of State at the Ministry of Land Management, Urban Planning and Construction, Ly Reasmey, said on Wednesday that investment in the construction sector in the first half of 2022 is estimated at more than 2,000 projects with an investment of more than $1.2 billion.
China is top, followed by South Korea, Japan and Thailand.
The construction sector has created many jobs for the people and has increased the income of society, he said in a press conference at the Council of Ministers.
“It participates in national economic growth, especially investment in the construction sector, which makes the construction sector in Cambodia play an important role in national economics,” he said.
Stagnation in the construction sector is a global problem caused by Covid-19, said another spokesman of the ministry, Seng Lot.
A Preah Sihanouk province deputy governor told Kiripost in July that there are about 1,150 incomplete buildings in Sihanoukville after the ban on online gambling and Covid-19. Sihanoukville Official Urges Solution to Incomplete Construction
Lot said a law on construction is already in place to ensure all buildings are constructed safely.
Economist, Nget Chou, said that since China is the largest investor in the construction sector, they have benefited from a lot of opportunities in Cambodia’s real estate and construction sectors, where land prices can be very profitable.
However, despite huge investment in the construction sector, the industry overall has seen some decline during Covid.
“Companies should have a detailed study of the requirements to develop a project. This work requires cooperation in the financial sector and guarantees to create an option to purchase or pay in installments,” he said.
Construction in Sihanoukville is different from Phnom Penh where there are more specific requirements and the work supports local needs, Chou said. However, construction in Sihanoukville has been developed by Chinese investors, he said.
“Their construction has not been studied in detail, because the company does not have enough finance and the government is strict on online gaming, so the crisis is difficult to restore because the need is not local but for the Chinese only. It is very complicated,” Chou said.
