PHNOM PENH - The State-owned Aviation Industry Corporation of China (AVIC) will open a subsidiary in Cambodia through the establishment of Cambodia Bayon Airlines, AVIC's president Lin Zuoming said Thursday.

Speaking during a meeting with Heng Samrin, president of the Cambodian National Assembly, Lin said the Cambodia Bayon Airlines will start domestic flights in Cambodia before the end of 2014.

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The airlines will operate with two Modern Ark 60 aircrafts for regular flights from capital Phnom Penh to cultural Siem Reap province and from Phnom Penh to coastal Preah Sihanouk province.

"AVIC has strong interest in investing in Cambodia because we have seen a huge potential in domestic flight market," he said. "The investment will contribute to developing local economy and creating jobs."

Lin also said that the consortium would consider investing in other fields in the future.

For his part, Heng Samrin expressed his full support to AVIC for investing in Cambodia, saying that the investment would not only help develop the economy, but also contribute to further enhancing relations and cooperation between Cambodia and China.

"It is the right decision that the AVIC invests in Cambodia because the country currently has full political stability and sound macroeconomic stability," he said.

He said currently, 24 foreign airlines, including 4 from China, and 2 Cambodian airlines are operating flights in Cambodia.

Heng Samrin also highly spoke of good investment and trade ties between Cambodia and China, stressing that China is the largest investor in Cambodia with the investment of more than $9 billion.

On the trade side, the two-way trade volume topped $3 billion last year.