FTA, investment law to boost Cambodia-S Korea trade: envoy

22
Nov '21
Pic: Shutterstock
South Korean ambassador to Cambodia Park Heung-kyeong is optimistic about the new investment law and free trade agreement (FTA) signed between the two countries turning out to be important factors in enhancing bilateral trade and encouraging more direct investment flows from his country to the latter. The envoy was addressing the Cambodia-Korea Forum 2021 recently.

The event was organised by the Council for the Development of Cambodia in collaboration with the South Korean embassy in Phnom Penh and the Korea Trade and Investment Promotion Agency to disseminate information regarding the new law to about 100 South Korean investors.

Though bilateral trade was worth $1.032 billion in 2019, as the pandemic took off, it dropped to $884.88 million in 2020, according to statistics from the Korea International Trade Association (KITA).

Cambodia exported products worth more than $317 million in 2020, sliding by 5.4 per cent year-on-year, and imported goods worth over $567 million, plummeting by 18.6 per cent versus 2019, media in Cambodia reported citing KITA data.

But on October 26, the Cambodia-Korea Free Trade Agreement (CKFTA) was formally signed, paving the way for the two countries to increase bilateral trade and investment flows. The CKFTA will enter into force 60 days after both sides have notified each other that their respective internal procedures have been completed.

South Korea is Cambodia’s second largest investor, injecting a total of nearly $7 billion into the country since 1997, the ambassador noted.

In addition to the FTA and the investment law, the double tax agreement and other measures to combat fiscal evasion will also contribute to growth in bilateral trade and investment, he added.

Fibre2Fashion News Desk (DS)


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