CDC okays six projects totalling ‘$35M, over 7,000 jobs’
CDC okays six projects totalling ‘$35M, over 7,000 jobs’
Six new investment projects with a total investment of $34.6 million with 7,584 jobs created have been approved by the Council for the Development of Cambodia (CDC) in three provinces.
In Phnom Penh, shoe and accessories manufacturer, Power Crown Footwear (Cambodia) Co Ltd, is investing $5.6 million in Kambol district and would provide 4,040 jobs, while Young Me Apparel (Cambodia) Co Ltd’s $5.4 million garment factory in Por Sen Chey district would hire 1,358 people. Newsight Garment Co Ltd’s $5.1 million garment factory in the capital’s Khan Meanchey district plans to employ 1,586 workers.
Noodle maker Tx Food (Cambodia) Co Ltd is pouring in $7 million to set up a factory in Oral district, Kampong Speu province, where it would hire 120 people. Cardboard box makers, $6.3 million Corp Trim (Cambodia) Industry Co Ltd in Bati district, Takeo province, and $5.2 million Jiashun R Packaging Material (Cambodia) Co Ltd in Samrong Tong district, Kampong Speu, are creating 180 and 300 jobs, respectively.
Royal Academy of Cambodia economic researcher Hong Vanak told The Post on September 17 that although the global economy is not improving, Cambodia is able to attract investors.
“This is because Cambodia has improved its investment law to make it more convenient and attractive, upgraded its transportation system, and possesses international markets that order goods under special tax conditions,” Vanak said, adding that free trade agreements also play an integral role in drawing investors.
He said direct investment is not only helping Cambodia reduce imports as well as exports of unprocessed products or natural resources, but it also gives local products the opportunity to present themselves in the international market.
“Foreign direct investment has positive effects on the economy, from creating new jobs, increasing the export of finished products, and particularly the inflow of international currency, which further strengthens the economy,” he added.
Meanwhile, Ly Ly Food Industry Co Ltd CEO Keo Mom said the price of electricity in Cambodia should be equal or lower compared to neighbouring countries in order to remain attractive to investors.
As electricity tariff is linked to the production chain, low rates would increase its competitiveness, she asserted.
“Lower electricity costs reduce production costs, which would help increase the competitiveness of our goods worldwide. Some of the initial questions investors ask before investing in any country is whether there is adequate electricity and if the cost is high or low,” she said.
Accordingly, these challenges would be highlighted by the private sector during the 19th Government-Private Sector Forum on November 13, which would be attended by Prime Minister Hun Manet.
