Cambodia still open to Taiwan investors

Cambodia still open to Taiwan investors

PHNOM PENH (Reuter): Cambodian strongman Hun Sen told investors from Taiwan on Saturday the closure of Taipei's representative office in Phnom Penh did not signal an end to investment by Taiwan companies.

He said Taiwan companies would face no obstacles to investing in Cambodia despite Phnom Penh's strict one-China policy.

Taiwan is the largest foreign investor in the country.

Hun Sen said last Tuesday that Taiwan's representative office in Cambodia was being closed due to its alleged involvement in supporting forces loyal to First Prime Minister Prince Norodom Ranariddh, whom Hun Sen, the second prime minister, ousted on July 6.

"The closure of the Taipei liaison office in Phnom Penh does not mean the closing of Taiwanese investment here. On the contrary, we are opening up more freely (to investment)," he told investors from China, Taiwan, Macau and Hong Kong.

Hun Sen made no mention of Cambodia's relations with the Association of South East Asian Nations (ASEAN) or the confusion surrounding his stand on the group playing a mediation role in Cambodia's political troubles.

Hun Sen said in a statement on Friday that ASEAN had a role to play in ensuring Cambodia's stability in terms of preventing foreign interference in Cambodia's internal affairs.

"There are no obstacles to Taiwanese investors," Hun Sen said. "Our one-China policy is not a problem for Taiwanese investment and tourism."

He said if Taiwanese investors had any problems in Cambodia they could report to the Chinese Embassy.

Taiwan has described Hun Sen's closure of its unofficial office as unacceptable and "ridiculous" and said it hoped that Cambodia would reverse the decision.

Officials in Taipei, which has denied any involvement in the Cambodian conflict, have threatened drastic countermeasures, including a boycott of Cambodian trade and tourism, if talks on re-opening the office failed.

Communist China, which has regarded Nationalist-ruled Taiwan as a renegade province since the end of the civil war in 1949, hailed Cambodia's decision to shut Taiwan's office.

Hun Sen said Cambodia needed investment in several priority areas including agro-industry.

"I believe southern China has possibilities for investment there. We have land but we lack capital and technology," he said.

"China can plant rubber in Cambodia and export the raw material to China," he said.

He also appealed for investment in transport and infrastructure. He said Cambodia could offer contracts on build, operate and transfer (BOT) terms for roads and airports.

He also suggested that investors might be interested in upgrading a railway line between Phnom Penh and Cambodia's main port of Sihanoukville.

Hun Sen said his government might amend laws to allow tax-free import of construction materials by companies which suffered damage or looting in the recent turmoil.

Taxes on the import and export of garments might also be abolished and the land law might be changed to allow foreigners to own property.