Ten new factory approvals means ‘over 20K’ more jobs
Ten new factory approvals means ‘over 20K’ more jobs
The Council for the Development of Cambodia (CDC) notices issued in January reveal that it has greenlit 10 new projects worth nearly $100 million, all in the manufacturing industry: eight involved in textiles and two in light bulbs.
The CDC – the government’s highest decision-making body for large-scale investments – indicates that the 10 ventures will create an estimated 21,173 new jobs.
On the textiles front, New Target Footwear (Cambodia) Co Ltd’s $7.5 million footwear factory in Takeo province’s Tram Kak district, Golden Island Garments (Cambodia) Co Ltd’s $5.4 million garment factory in Kandal province’s Ang Snuol district, and Jin Long Quan (Cambodia) Co Ltd’s $5.1 million garment, footwear, bag and hat factory in Kandal’s Takhmao town are expected to bring in 1,938, 2,135, and 883 jobs, respectively.
Aroma Success Garment Co Ltd’s $36.6 million apparel factory in Kampong Speu province’s Samrong Tong district, and Qi Heng Xin Factory Co Ltd’s $8.8 million bag and footwear plant along National Road 21 in Takhmao are to deliver 3,158 and 2,930 new jobs.
Windara International Co Ltd’s $5.4 million knapsack, sleeping bag, tent, apparel and bedding factory, Yue Wing Cheong Manufactory Co Ltd’s $5.4 million bag venture, and Xin Shun Jie (Cambodia) Leather Co Ltd’s $5.2 million bag and apparel plant – all in Kampong Speu’s Kong Pisei district – are anticipated to generate 2,714, 738 and 1,133 new jobs.
Meanwhile, Technomate (Cambodia) Technology Co Ltd’s factory will produce LED, string and solar lights as well as plastics and repair tools, while Technomate (Cambodia) Precision Metal Co Ltd’s project will churn out light bulbs, solar lights and electrical appliances.
Both of these are located in Svay Rieng province’s Svay Rieng Giga Resource Special Economic Zone, and each has registered investment capital of $10 million and is expected to bring 750 new jobs, according to the CDC.
Speaking to The Post on February 1, Cambodia Chamber of Commerce (CCC) vice-president Lim Heng remarked that new investments are constantly being made in the Kingdom, despite persistent threats to global economic growth arising from Covid-19, geopolitical conflicts and the Russo-Ukrainian crisis.
Cambodia’s trade agreements with partner countries have been significant draws for investors, he said, suggesting that better access to international markets would drive diversity in production and exports.
“Cambodia has also benefited to some extent from geopolitical conflicts between major powers, which have resulted in a number of factories relocating here,” Heng claimed.
In a January 12 interview with The Post on the occasion of the third Cambodia-Turkey Joint Economic Commission (JEC), Minister of Commerce Pan Sorasak remarked that political stability, strong economic growth, the value of the new Law on Investment, and streamlined administrative procedures have all helped the Kingdom attract investment from local and foreign sources.
Additionally, free trade agreements (FTA), such as the bilateral pacts with China and South Korea as well as the Regional Comprehensive Economic Partnership (RCEP), have yielded “positive results” from improved access to external markets, he said.
“The number of companies investing in Cambodia will increase even more as global economic growth strengthens,” he said, adding that investments in Cambodia have become more diversified.
According to a report jointly published by the CDC and the National Bank of Cambodia (NBC), foreign direct investment (FDI) inflows in Cambodia between August 5, 1994 and December 31, 2021 amounted to 168.8 trillion riel ($41.0 billion), rising by 11.2 per cent from the nearly 152 trillion riel recorded by end-2020.
For context, August 5, 1994 was the day when Royal Decree No 03/NS/94 promulgated the old Law on Investment and established the CDC.
Broken down by sector, finance topped the FDI list, with $9.4 billion invested in the area, followed by manufacturing ($8.5 billion), real estate ($4.9 billion), hotels and restaurants ($4.4 billion), agriculture ($4.2 billion), electricity ($2.6 billion) and construction ($1.6 billion), with $5.3 billion going into other sectors.
