Speeches
Remarks by Ambassador Joseph A. Mussomeli, Reception for Cambodia Investment, Trade & Infrastructure Business Roundtable
U.S. Embassy, Phnom Penh
November 07, 2007
Your Excellencies, Ladies and Gentlemen
Welcome. I want to begin by thanking our sponsors, ACLEDA Bank, the American-Cambodian Business Association, and Sciaroni and Associates. Without their support, this evening would not have been possible. In fact without their support, you’d all be eating bread crumbs and drinking unfiltered water.
I don't have to tell you all that Cambodia is becoming a focus for investment -- you wouldn't be here if you didn't know that already. Foreign direct investment in Cambodia reached $425 million last year. Predictably, we Americans are a bit behind the curve, and while a smart and stalwart band of American investors has been here for many years, in general American companies are just beginning to re-discover the Cambodian market.
This re-discovery has been slow. In truth, Cambodia has suffered from two serious problems. First, its recent history -- 30 years of civil war, foreign invasions, and economic chaos. But Cambodia has come back and in only 15 years has resurrected itself and re-established itself as an attractive market for investment. Unfortunately, Cambodia’s other problem is more intractable and pernicious -- our perceptions of Cambodia. While Cambodia has made great strides to enter the 21st century, some foreigners, including the foreign media, are stuck in the past. Their mindset, when they are mindful at all, wallows in the past and cannot see the present, let alone the future.
The Cambodian government and people deserve much credit for the dramatic change in the political and economic atmosphere here. Government reforms have made it easier for businesses. Customs changes have made it easier for Cambodia to trade with other countries. Cambodia has one of Asia's most liberal regimes for foreign investors. Land ownership is the only area in which there is any significant distinction between local and foreign investors.
I also don't need to tell you that there is more to be done if Cambodia is to compete. It must develop its workforce. The rule of law must become central to Cambodian society and business. Improvements in infrastructure must be accelerated. And, most crucially, corruption cannot be ignored. While some investments will come regardless of the level of corruption, Cambodia will lose a great many of its potential investors if it does not combat corruption. All countries have corruption, but at the risk of sounding unfair, Cambodia cannot afford the luxury of corruption. It does not have yet the investments of its neighbors and it will not get them unless it shows a firm commitment against corruption.
So if you already know about what is attracting investors here and the challenges foreign businesses face, why the hell am I taking up your time talking? It's because there is another message that you may not be hearing -- and maybe you don’t want to hear: Cambodia needs more investment. Cambodia is still emerging from the horrors of war and unspeakable tragedy. For the first time in decades, Cambodia has sustained political and economic stability. And while Cambodia has had some of the highest economic growth rates in the world in recent years, it also has a very narrow economic base that is desperate for diversification. The Cambodian government recognizes that the country needs to create jobs and move beyond tourism and garments, and is eager to work with you to promote investment in agriculture, manufacturing, services, and other areas. So as you continue the conference tomorrow, and go home to consider whether or not to do business here, remember: investing in Cambodia will make you a profit, but it will also support a resilient people.
