PHNOM PENH, Jan 7 (Reuters) - Foreign direct investment in Cambodia probably fell in 2008 and, given the dire state of the world economy, may drop again in 2009, but it could pick up the following year, the World Bank said on Wednesday.
Cambodia's investment agency said projects worth nearly $6 billion were approved last year but the value of actual inflows will not be known for some time.
Many of the approved projects were island resorts and construction projects largely invested in by Chinese and South Korean firms, said Soun Siththy, Deputy Director of the Council for the Development of Cambodia (CDC).
The World Bank has projected FDI inflows at around $800 million last year and World Bank economist Huot Chea said they could fall further, 'probably to below $600 million', in 2009.
Cambodia said foreign investment of some $2.667 billion was approved in 2007 but the World Bank said the actual inflow was only $866 million.
The widespread economic slowdown, 'not political risk', was the main factor behind the drop in foreign investment, Huot Chea said.
However, the Bank expected inflows to recover in 2010 if the global economy bounced back.
China, Cambodia's biggest aid donor, has also been the leading investor in the country, followed by Malaysia and South Korea, according to World Bank data covering 1995 to the first half of 2008.
(Reporting by Ek Madra; Editing by Alan Raybould) Keywords: CAMBODIA INVESTMENT/
(ek.madra@thomsonreuters.com; +855 23 216977; Reuters Messaging ek.madra.reuters.com@reuters.net)
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