Two Chinese firms invest in PPSEZ
Two Chinese firms invest in PPSEZ
Two Chinese-owned manufacturers have decided to invest in the Phnom Penh Special Economic Zone (PPSEZ) despite Covid-19.
PPSEZ is a 357ha industrial park in Kambol district’s Kantaok commune on the western outskirts of the capital and is operated by the Cambodian-listed Phnom Penh Special Economic Zone Plc (PPSP).
PPSP on August 14 said businesses in PPSEZ continue to make headway and investors are keeping pace and even expanding in the face of sweeping Covid-19-related concerns.
It said the two companies were drawn into PPSEZ by its potential and the perks the Kingdom provides investors.
Incorporated on May 15, Seikawa (Cambodia) Technology Co Ltd is the local arm of Zhuhai, Guangdong-based manufacturer of plastic parts for electrical and electronic devices Zhuhai Seikawa Plastic Products Co Ltd and will supply a well-known Japanese high-tech company in the Kingdom.
PPSP quoted the company as saying that the benefits of cut logistics costs and delivery time were key reasons for the decision.
Incorporated on May 5, WCFO (Cambodia) Co Ltd is the local arm of Hong Kong-based WCFO Communication Co Ltd, which produces fibre-optic devices and exports them to Japan and the US.
PPSP said WCFO “is looking at Cambodia as a new production base due to the fact that the labour is young, trainable and affordable, and the preferential treatment to Cambodia from developed countries, especially [given] the situation of [the] on-going US-China trade issue.
“During this hard time, we need to keep trying and [have] hope for [a] better [tomorrow]. Meanwhile, looking for or creating new opportunities is very important,” it quoted WCFO as saying.
Cambodia Chamber of Commerce vice-president Lim Heng on Sunday said the investment is a perk from the Chinese government’s trillion-dollar Belt and Road Initiative project.
He said the Kingdom is also reaping the benefits of the Sino-US trade war, especially evident in the soon-to-be-signed Cambodia-China bilateral free-trade agreement.
“The two companies have seized the opportunity to invest in our country to produce and export to China, the US, as well as Europe and ASEAN countries as well. We are pleased to have this many investors come and invest in Cambodia,” Heng said.
PPSP customer service manager Hak Serey told The Post in May that there are 108 companies operating in PPSEZ. “Currently, the project is full and we are planning to expand into another area.”
PPSEZ saw $1.139 billion in trade volume last year, up 14 per cent from 2018, reported PPSP.
Ministry of Economy and Finance data show that Cambodia exported $2.688 billion worth of goods through special economic zones (SEZs) last year, up 27 per cent over 2018.
There were 465 companies operating in the Kingdom’s 54 SEZs employing more than 100,000 workers.
