CDC gives nod to nine new factories
The Council for the Development of Cambodia (CDC) on January 12 announced that it has approved nine factories – most of which will produce garments or travel goods – with cumulative registered capital investment of around $43 million that are expected to create a total of 11,049 new jobs.
The CDC said in a statement that it had agreed to issue final registration certificates for the nine projects, including garment factories Como Apparel Co Ltd, Sincere Season (Cambodia) Garment Co Ltd, Powerful Riches Garment (Cambodia) Co Ltd, and Inkyung Wondang Apparel Co Ltd.
Other factories included Global Supply Redwood Co Ltd (bags), Leona (Cambodia) Co Ltd (bags and suitcases) and Green Bag (Cambodia) Co Ltd (handbags and other bags).
The other two are in Preah Sihanouk province’s Cambodian Zhejiang Guoji SEZ: Cambodian Shenghong Packaging Co Ltd (cardboard and plastics) and Best-Run Technology (Cambodia) Co Ltd (pet supplies).
The cumulative registered capital investment of the projects falls in the range of $42.92-43.64 million, according to The Post’s calculations, accounting for rounding.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, postulated that although the majority are in light industry, CDC approvals generally reflect the unobjectionable investment potential of the Kingdom, which continues to lure in new players to the market, despite the difficult time of the Covid-19 crisis.
The latest group of newcomers comes due to investor confidence in Cambodia’s work capacity and sustainability, as well as the epidemiological situation now that the national vaccination rate has risen to nearly 90 per cent, he said.
“Investment growth is an indicator reflecting that the Cambodian economy has started to recover. By the same vein, it will also help create jobs and income for the people,” Vanak told The Post on January 13.
He predicted that the number of applications for such projects in the Kingdom would increase as the Covid-19 situation tapers off, creating a more favourable environment for investment.
Factors such as a supportive new investment law, diverse skilled labour force, convenient infrastructure and trade facilitation agreements with many countries will contribute to these favourable conditions, he said.
Cambodia Chamber of Commerce vice-president Lim Heng said the steady stream of CDC approvals shows that investors’ interest in the Cambodian market remains strong despite Covid, as the Kingdom strives to unlock its investment potential.
He said Cambodia welcomes investors from all countries and all sectors who abide by the Kingdom’s laws.
“Every investment, no matter in which sector, will help Cambodia’s economy grow.”
CDC secretary-general Sok Chenda Sophea on January 11 presided over an in-person and virtual “insiders’ breakfast” co-hosted by the council and European Chamber of Commerce in Cambodia to provide in-depth details on the new investment law and the latest developments in the field.
He told the event that the Kingdom has been bending over backwards to improve its investment environment, to entice more inflows in the “new normal” with Covid, and keep pace with the fourth industrial revolution and digitalisation.
The government is committed to facilitating investment and related maintenance services for all investors without discrimination, he said.
“The now-effective Cambodia-China Free Trade Agreement [CCFTA] and Regional Comprehensive Economic Partnership [RCEP] agreement, and the Cambodia-Korea Free Trade Agreement – currently in preparation for entry into force – will help improve market access and increase the allure of Cambodian investment opportunities,” Chenda Sophea said.
The new Law on Investment was promulgated on October 15, and the CCFTA and RCEP entered into force in Cambodia on January 1.