The Cambodia-ASEAN Business Summit 2024 was held on April 2 at the Sofitel Phnom Penh Phokeethra, jointly organised by the Cambodia Chamber of Commerce (CCC) and the ASEAN Business Advisory Council (ASEAN BAC) in Cambodia, with the support of the Cambodian government. The summit brought together prominent leaders, investors, and industry experts to discuss a number of topics under the theme ‘Unleashing ASEAN’s Potential: Connectivity, Technology, and Inclusive Growth’.
Prime Minister Hun Manet presided over the summit’s opening ceremony, which also featured remarks from Neak Oknha Kith Meng, President of the CCC and Chairman of ASEAN BAC Cambodia.
"This business summit represents a key moment in the unlocking of economic potential between Cambodia and other ASEAN countries,” said Kith Meng. “Our vision for the Cambodia-ASEAN Summit 2024 is regional collaboration and connectivity to make Cambodia the beating heart of the ASEAN economic engine."
"ASEAN is projected to become the fourth largest economy in the world by 2030 with a combined GDP of USD $10 trillion.
Cambodia is at the centre of ASEAN and is ready to become the strategic link for trade and collaboration within the ASEAN bloc… For those businesses seeking a manufacturing hub or business office to reach 2.5 billion people across ASEAN, Cambodia is a perfect place for business.
Cambodia’s Strategic Location In ASEAN
“Now, as a 10 member bloc, ASEAN has solidified its position as a global economic force, underpinned by robust growth, a dynamic workforce and progressive integration efforts,” said Prime Minister Hun Manet. “ASEAN has become the world's fifth largest economy and has consistently demonstrated economic resilience in the face of uncertainty.”
Cambodia stands as a vibrant and welcoming partner within the ASEAN community. Our advantageous location provides seamless connectivity across the region, fostering a collaborative ecosystem focused on mutual benefit and regional well-being.
Furthermore, the Prime Minister outlined how Cambodia’s strategic membership in key regional and global trade agreements, including ASEAN, the Regional Comprehensive Economic Partnership (RCEP) and the World Trade Organisation (WTO), positions it as a highly integrated player within the dynamic global market.
Cambodia-ASEAN Energy Grid Connectivity And Sustainability
One of the summit’s main highlights was a panel discussion on ‘ASEAN energy grid connectivity and ASEAN renewable energy and sustainability’, featuring H.E. Keo Rottanak, Minister of Mines and Energy; H.E. Meas Soksensan, Secretary of State from the Ministry of Economy and Finance; Thanongsinh Kanlagna, Vice President of the Lao National Chamber of Commerce and Industry (LNCCI); and Paul Clements, Chairman of the International Business Chamber of Cambodia (IBC).
“Some 16 years ago, we began our energy system with heavy dependence on fuel oil, representing something like almost 90 per cent, and we didn't have electricity 24 hours a day in most parts of the country – less than 14 per cent of households had access to electricity and the cost of electricity was almost a dollar in many parts of the country,” shared Rottanak.
“Now, 16 years later, because of continued investment by the government and partnership with the private sector, [Cambodia’s] energy mix is very different today. Domestic hydropower represents about 42 per cent in the generation mix, solar energy is more than 10 per cent, plus clean energy imported from Laos is around 12 per cent. So all in all, we have something like 62 per cent of renewable energy in our generation mix today,” he added.
Soksensan remarked on the difficulties the government faces when seeking collaboration with the private sector for the development of renewable energy systems in Cambodia, and called for their greater involvement, which he highlighted can be beneficial for all parties involved.
“Putting more money, from the government’s perspective, is quite challenging, because we have to prioritise all different sectors,” said Soksensan. “Of course energy is one of the vital sectors that we could invest more into, but it’s difficult to find a bankable project in which we can include members of the private sectors.”
“But jumping into green [energy] would be beneficial. This is put in the policy of the government, but all private sector entities that jump into green or renewable energy would also benefit on a trade, benefit from the international market when selling in the ‘green’, because it's like a brand for you to sell,” he added.
How Can Cambodia Act As A Strategic Gateway To The ASEAN Market?
Another highlight from the summit was a panel discussion on 'Cambodia - Gateway to ASEAN', a session exploring Cambodia's potential as a strategic gateway to the ASEAN market. Remarking on Cambodia's vast natural resources, H.E. Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC), noted that while Cambodia is geographically lucky to have access to many inland waterways, and while they are not yet being operationalised to full standard, the government has infrastructure development plans in place that will address this.
“Cambodia is blessed with the Mekong river, Tonle Sap, Bassac, Sekong, Sesan, Sreypok, etcetera, but we have not been using our natural resources to the maximum,” said Chanthol. “[This is because] when we ship through the inland waterways and have to pass through another country, obviously we have to respect the local regulations of that country, including immigration, customs [and all other procedures]."
"But we are planning to build a project called the Funan Techo Canal that will link our inland waterways to the deep seaport of Cambodia (on the country's coast), that will save up close to 200 kilometres of distance. This will save time, save cost and also [reduce] administrative procedures at the border,” he added.
Other panellists representing the General Department of Taxation (GDT), General Department of Customs and Excise (GDCE) and Securities and Exchange Regulator of Cambodia (SERC), highlighted some of the government reform policies being introduced to make taxation, customs and securities in Cambodia more attractive for investors.
H.E. Kong Vibol, Director General of the GDT, for example, shared how the new Law on Taxation (LoT), that came into force in 2023, was written to align with Cambodia's favourable investment law promulgated in 2021, and in close collaboration with the private sector.
“[Cambodia’s] investment law is one of the most attractive laws in ASEAN,” asserted Vibol. “Over the past ten years, we have been working closely with the private sector to gather information and input, and [from this collaboration] we drafted a new taxation law to align with the investment law, because the investment law provided incentives, while the [previous] taxation law did not."
Watch B2B Cambodia's video attached to the top of this article for the main event highlights.