Infrastructure is an important aspect of the faster economic growth of any country or city. Adequate infrastructure includes roads, tunnels, bridges, railway, ports, power, mass transit systems, telephone lines, dams, waterways, electrical power lines, fire stations, airports, and much more.
If we talk about Cambodia, the infrastructure is still weak, it is basically the result of decades of conflicts and civil war. But, if we talk about the infrastructure of Sihanoukville, it is improving now. The reason why Sihanoukville has better infrastructure, while the rest of the country’s infrastructure is not good is that Sihanoukville is flooded with Chinese.
Earlier, Sihanoukville used to be a quiet coastal city in the southern part of Cambodia. But, when Chinese tourists and Chinese investors started flocking in, the scenario changed completely. In the transformation of Sihanoukville, Chinese investors played a great role. They started to invest in Sihanoukville real estate, businesses, restaurants, etc.
China’s FDI in Cambodia
Over time, Chinese FDI (Foreign Direct Investment) has been increased in the country. If you will compare previous Chinese FDI data with current data, you will find great spike.
In 2008, China’s FDI in Cambodia was $76.9 million, which increased to $179.7 million in 2011. In 2012, it became $367.8 million. In the year 2014, it was $553.9 million. And, in the year 2017, the Chinese FDI in Cambodia became $618.1 million.
From the above figures, we can see that Chinese investment in Cambodia (not just in Sihanoukville) increased constantly.
How China Changed Sihanoukville?
The beaches of Sihanoukville known to be silent and cozy, attractive for families, and individual backpackers. The atmosphere of Sihanoukville attracted tourists and families. Sihanoukville changed completely after Chinese investment started coming in.
About 90 percent of Sihanoukville businesses are Chinese-run. It includes restaurants, casinos, massage parlors, hotels, etc. From 156 guesthouses in Sihanoukville province, 150 are Chinese-owned. From 62 casinos, 48 are invested in by the Chinese nationals. And, out of total of 436 restaurants in the province, 95% around are managed by Chinese nationals.
With the improvement, the tourist visits in various cities of Cambodia also increased. Between 2012 to 2017, it has been increased by more than 700%. Cambodia has received around 6.2 million visitors last year, out of which, one-third were Chinese tourists.
From the facts and figures, we can see how Chinese investors and the Chinese government is making an impact in Cambodia, and especially in Sihanoukville.
Sihanouvkille is the largest city of Cambodia, after Phnom Penh. As more Chinese entered into Sihanoukville, the city turned from quiet coastal city to a bustling city of Cambodia. Companies, businesses, and real estate in Sihanoukville started to develop after Chinese money started pouring in.
Chinese investment in Sihanoukville brought industrial parks, factories, commencing housing, hotels, and restaurants. The road development process in Sihanoukville is not easy, but with Belt and Road development project by China, it would be easier.
The Deep water port of Sihanouvkille plays a crucial role in sea transportation. Out of all Cambodia’s imports and exports by sea, 90% go through the Sihanoukville port.
From the silent coastal city, a few years back to a bustling Cambodian city, the property and business market of Sihanoukville is on rising. As more people are interested in living in this city, the property prices are expected to go up. If you are interested in investing in the new development in Sihanoukville, Dragon Real Estate can help you. We are a real estate agency in Sihanoukville, Cambodia.