China's healthier growth gives positive sign for Cambodian economy: academic

Source: Xinhua| 2019-04-20 19:16:19|Editor: Li Xia
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PHNOM PENH, April 20 (Xinhua) -- China's rosier growth in the first quarter (Q1) of this year has given a positive sign for Cambodia's economic growth, a Cambodian academic said on Saturday.

China's economy grew faster than expected in the Q1 of 2019, according to the National Bureau of Statistics on Wednesday. The world's largest developing economy achieved a 6.4 percent growth in the Q1 of this year.

Joseph Matthews, a senior professor at the Beltei International University in Phnom Penh, said there had been a lot of speculations and concerns among Cambodian economists and experts that China's economy slowdown would adversely affect the Cambodian economy, as China had been the biggest donors and investors in the country.

"As these figures are out, it gives hope and optimism to all stakeholders in China-Cambodia business communities to strengthen further their partnership and to look for a better future," he told Xinhua.

Cambodia has been in forefront providing all kinds of services and facilitating the investment in Cambodian infrastructure and land development, he said, adding that the southwestern coastal provinces of Preah Sihanouk and Koh Kong are very good examples.

"So, it is very safe to say that Chinese investments in Cambodia's infrastructure and land development will continue at the same pace or accelerate further in coming years," he said.

These investments will also be supported by the Cambodian government's Rectangular Strategy Phase IV, where the government has prioritized four pillars, namely human resources development, economic diversification, private sector and job development, and sustainable development, Matthews said.

The academic said the core of the four pillars is the acceleration of the governance reform, which refers to institutional reform and capacity building, strengthening accountability and integrity in the public administration.

Also, he said recently that the government has announced some incentives and investors motivational measures such as reducing tariff on logistic and goods transportation, reducing levies on container inspections at the port, reducing electricity charges, cutting down holidays by one week and creating tax exemption zone in underdeveloped area in Cambodia.

"These all measures will undoubtedly attract more foreign direct investment (FDIs) from China," Matthews said.