CDC okays three textile-linked projects worth $19M
CDC okays three textile-linked projects worth $19M
The Council for the Development of Cambodia (CDC) on April 29 announced that it had greenlit final registration certificates for three projects in textile-linked sectors with total capital investment of nearly $19 million that are expected to create 2,005 jobs.
Two of these were garment factories in the capital. Orient Hongye (Cambodia) Knitting Co Ltd’s $3 million plant on Northbridge Road in Damnak Thom village, Stung Meanchey III commune, Meanchey district; and Kylin (Cambodia) Sports Co Ltd’s $5.3 million project on National Road 2, in Kandal village, Roluos commune, Dangkor district are to bring 514 and 714 new jobs, respectively, the CDC said in a notice.
Spearhead Commodities (Cambodia) Co Ltd’s $10.5 million bag factory in Rong Ko village, Samrong Tong commune, Samrong Tong district, Kampong Speu province is set to deliver 777 jobs, the notice added.
The Ministry of Commerce’s business registry lists an address in China’s Jiangsu province for Orient Hongye chairman Zhang Baolan. As of May 1, the other two firms were not listed in the registry.
Cambodia Chamber of Commerce (CCC) vice-president Lim Heng said the numbers of project applications and approvals have been steadily increasing following a Covid-19-induced lull.
He said interest among local and foreign investors in Cambodia was growing, most likely due to a combination of factors including a “convenient and attractive” new Law on Investment, improvements in public health and general disease prevention, a relatively cheap and abundant labour force, and significant market access to many major countries.
Heng added that the investment growth has had many positive effects on the Kingdom’s economic growth. “Cambodia is becoming a popular investment destination, since investing here will yield in plenty of benefits when it comes to production chains as well as exports, because the Kingdom has established free trade agreements [FTA] with many countries,” he said.
CDC secretary-general Sok Chenda Sophea previously said that Cambodia offers ample opportunity for investors, created not only by the “attractive” investment law, but also by a recently-introduced range of corresponding perks.
“By launching these effective and timely measures, Cambodia can fully reopen, leading to the rollout of ‘The Strategic Framework and Programmes for Economic Recovery in the Context of Living with Covid-19 in a New Normal 2021-2023’,” he said.
