find money
The multibillion-dollar project will find financial backers and partners as China, historically a major backer of Cambodian infrastructure projects, tightens its purse strings overseas.
The potential problems facing Prince, and the fluid but strong relationship between the Chinese government and the new Cambodian government led by Hun Sen’s son Hun Manet, mean that the huge amount needed to fund the Bay of Light will be significantly reduced. Onlookers are concerned about where the funds will come from. come from.
“The spigot has turned off, and everyone who was making a living from the spigot is now living on credit,” said Sophal Ia, an associate professor of global political economy at Arizona State University and an expert on Cambodia-China relations.
“It also seems accurate to say that these investments are changing. This change could be due to changes in China’s own economic policies, the global economic situation, and Cambodia’s regulatory situation.
“The new Manet government’s approach to managing relations with powerful Chinese groups will set the tone for Cambodia’s future economic and diplomatic direction,” he added.
Beyond China, Canopy Sands is “actively engaging with a diverse group of international investors” from Singapore, South Korea, Japan, the United Arab Emirates, Indonesia and Thailand, adding that “the project’s global appeal and urban life “It shows the possibility of redefining the future.” says Chen.
In March, an agreement was reached with UAE-based investment platform Annual Investment Conference (AIM) to build a convention center in the Bay of Lights to host future investment conferences. did.
It marked a rare foray into Cambodia by a Middle Eastern organization.
“This kind of diversification of investment sources could be a positive step for southern Cambodia, bringing new perspectives, new technologies and innovative approaches to development… local needs and sensibilities. If you respect that,” Sopal said.
Virac said the average Cambodian is deeply wary of the influence of Chinese investment across the country, which has left many “in the lurch”.
“I think domestically there’s a lot of pushback against Chinese involvement in investment. If you’re not participating, you’re not going to like what you see,” he said.
“I don’t think it’s helpful in our relationship with our largest and most important neighbor in this area.”
He said Cambodians were being forced out of Sihanoukville amid a construction boom, deteriorating relations between local residents and those who benefit economically.
In recent years, thousands of Cambodians have filed class action lawsuits against Ponzi schemes, and prominent businessmen have been arrested for fraud in construction and land investment schemes.
Former governor of the province Yun Min said that from 2017 to 2018, the value of land and real estate doubled and even quadrupled. According to local media reports, rental market prices have soared up to 10 times compared to before China’s large-scale entry into the market. 2018.
“That created a bubble that skyrocketed. Now the construction industry has a life of its own,” Virak said.
“This industry has become one that is not only driven by speculation, but also driven by money laundering. Construction is usually in response to a specific demand, but then people clean their dirty money. You start using that as a way to do that,” he said.
Vast portions of southern Cambodia’s coastline have been converted into private land in recent years in the name of infrastructure and economic development. Major waterfronts, mangrove forests, and national park areas have been carved out for a variety of powerful individuals, conglomerates, and foreign investors.