Govt pushes for tech-driven economic transformation
Govt pushes for tech-driven economic transformation
The government is embarking on an ambitious plan to diversify the economy and make a transition from a labour-intensive manufacturing hub to a high-tech investment hub, Prime Minister Hun Manet said yesterday.
This shift aims to attract significant foreign direct investment in sectors like electronics and automotive manufacturing, Mr Hun Manet said at a graduation ceremony at the Royal University of Phnom Penh.
“The government aims to move the economy from labour-intensive manufacturing to skilled labour manufacturing so that the country becomes more competitive in the international market,” the Prime Minister said.
The government has set a number of policies to enhance its competitiveness, one of which is skilled labour, he said.
To support this, the government has launched a programme to provide training to about 1.5 million poor and young people in vocational and technical skills through the Ministry of Labour and Vocational Training.
Currently, several skilled labour investments have been established in Cambodia, from electronic devices to auto spare parts and from bicycles to auto assembly factories.
Auto assembly factories of Toyota, Ford, Nissan and Hyundai are now operating in Cambodia.
BYD, the world’s leading manufacturer of new energy vehicles (NEVs) and power batteries, is in final talks with the Council for the Development of Cambodia (CDC) on establishing an assembly factory in Cambodia.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, said that this bold move could revolutionise Cambodia’s economic landscape.
“With a young and skilled workforce, coupled with government support, Cambodia can attract global tech giants and become a manufacturing hub for cutting-edge products,” Heng told Khmer Times.
Giving incentives under the investment law, improving infrastructure, and investing in human capital are major factors in attracting new investment, he said.
CDC approved 346 investment projects worth $5.5 billion in the first 10 months of this year, a year-on-year increase of 38 percent compared to the same period in 2023.
The investments also created 270,000 jobs for local people.
The garments, footwear, and travel goods sector continues to be the biggest export earner for Cambodia.
However, the non-garments sector, including electronic components, bicycles, auto parts, furniture, leather and plastic has seen a remarkable growth in the country of late.
Increasing Foreign Direct Investment (FDI) flows to Cambodia reflects foreign investors’ confidence in the country’s improving investment climate and its potential for rapid economic growth, CDC’s First Vice President Sun Chanthol said.
“The results show that investors have confidence in the Royal Government of Cambodia whose Prime Minister has worked hard to attract foreign investors,” he said.
