Challenges and chances for Cambodia investment
Challenges and chances for Cambodia investment
The third Vietnam-Cambodia Investment Promotion Conference took place yesterday in the Mekong Delta province of Kien Giang’s Ha Tien Town, chaired by Vietnamese Prime Minister Nguyen Tan Dung and his Cambodian counterpart, Hun Sen.
Cambodia is the second largest outbound investment market of Vietnam, with total investment worth US$2.36 billion.
“Many projects have been smoothly progressing and some have become operational, making a significant contribution for both countries,” PM Dung said at the conference.
However, Vietnamese investors also pointed out certain barriers that have hindered their operational expansion.
Challenges
The Vietnam Rubber Group, who has implemented 23 projects worth VND18 trillion in Cambodia, said one of the hindrances is an adequate workforce, both in terms of quality and quantity.
“We have to pay taxes if we source laborers from Vietnam,” the company representative said. “Moreover, Vietnamese workers are required not to exceed 10 percent of the total workforce.”
Pham Ngoc Lien, CEO of Binh Dinh Sugar JSC, said he also faced workforce, as well as transportation, problems.
His sugar cane and sugar processing project in Kratie Province needs 5,000 laborers, including seasoned experts and engineers, but the local workforce has failed to meet demand, he said.
Lien added that it is also costly to transport equipment and machinery from Vietnam to the country.
“While it costs only $1 million to bring machines from India to Vietnam, the sum is as high as $2.5 million in the Cambodia case,” he elaborated.
Meanwhile, Duong Van Hoa, deputy CEO of Vinacomin, which runs three projects in Cambodia, said the modest infrastructure development in the country is an issue.
“Training local workforces is currently infeasible as there are no professional schools,” he added.
Chances
In responding to Vietnamese investors’ feedback, Cambodian PM Hun Sen said the shortcoming in workforce is “a chance for you to invest in Cambodia.”
Admitting to the shortage of adequate workers in the country, Sen said there is no restriction for high-quality Vietnamese laborers to work in Cambodia.
In regards to the fact that Cambodia has stopped allocating land for Vietnamese businesses to grow rubber as of May 7, Sen told the investors not to worry as operational projects will be able to continue without any problems.
“Cambodia will not clear lands of long-time residences to give way to projects, but will relocate people in isolated areas,” he said.
Meanwhile, PM Dung said Vietnamese investment in Cambodia is still behind its potential.
He thus urged Cambodia to sign new agreements to boost investment between the two countries.
“Vietnam will create conditions for Cambodian businesses to invest in the country, and will seek to become a top investor in Cambodia in the years to come,” the PM promised.
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