Chinese firms plan to invest in Cambodia’s silk industry
Chinese firms plan to invest in Cambodia’s silk industry
A delegation from the International Silk Union (ISU) and the Cathaya Group, a Chinese company specialised in silk textiles and biotechnology, met with the Council for the Development of Cambodia (CDC) on Monday to discuss the possibility of expanding investment projects in the silk and textile industries.
Suon Sophal, Deputy Secretary General of the Cambodian Investment Board (CIB) of CDC led a working group of the General Department of Customs and Excise (GDCE) to receive a courtesy visit from the Chinese delegation represented by Zhang Guoquang, Chairman of ISU and Cathay Group in Phnom Penh.
The meeting aimed to enhance knowledge and understanding of the Law on Investment of Cambodia and discuss the possibility of expanding investment in the projects related to silk and textile industries in the country.
During the discussion, Sophal informed the delegation about the presence of the ‘China Desk’ which serves as a front-line table mechanism for providing facilitation and investment services for Chinese investors.
He also highlighted the incentive package for qualified investment projects under the investment regime of the Kingdom, establishing an open, transparent, predictable legal framework that is conducive to investment, ensuring full, equitable and non-discriminatory competition.
The Deputy Secretary-General encouraged the delegation to explore the possibility of setting up industrial clusters along with the industrial corridors, opening a gateway for other Chinese companies to invest in the country.
In response, the delegation expressed gratitude to the CDC, GDCE and relevant stakeholders for providing a reliable consultation service. They also gave a positive signal in establishing close relations with Cambodian ministries and institutions to successfully expand the investment activities for mutual benefits.
Speaking to Khmer Times, Lor Vichet, Vice President of Cambodia Chinese Commerce of Association (CCCA) said, “Chinese investors are aware that the new Cambodia Investment Law offers up to nine years of tax breaks through the Qualified Investment Project (QIP) platform.”
He continued that on top of the tax incentives, the investors foresee the Kingdom as a preferred destination for manufacturing and export businesses as evidenced by RGC’s ongoing investment in key infrastructure upgrades like the modernisation of Cambodia’s railways, deep sea port and international airports.”
Vichet emphasised that the presence of the GDCE team reinforces RGC’s commitment to streamlining customs procedures to increase the efficiency and effectiveness of Cambodia’s import and export procedures.
ISU is an international specialised non-profit social organisation located in Hangzhou, China where enterprises and related organisations from the silk-producing and consuming countries participate voluntarily.
Since its foundation in October 2015, there have been over 114 enterprises and organisations from 30 countries and regions joining ISU, including China, Italy, France, Switzerland, Brazil, Poland, Japan, Thailand, India, Vietnam and Cambodia.
