Russian auto giant GAZ Group eyes Phnom Penh manufacturing hub

Russian auto giant GAZ Group eyes Phnom Penh manufacturing hub

Russian commercial vehicle manufacturer GAZ Group is moving forward with plans to establish a production and assembly facility in Cambodia’s capital, Phnom Penh, according to a high-level meeting held at the City Hall yesterday.

The announcement came during a working session between Phnom Penh Deputy Governor Imran Hassan and a delegation from GAZ Group, led by Managing Director Dolgov Leonid. The talks mark the company’s second visit to the country, following initial discussions during Prime Minister Hun Manet’s official trip to Russia.

During the meeting, Leonid presented the company’s extensive portfolio, highlighting its 91-year history and 15 manufacturing plants, including a recent technical expansion into neighbouring Vietnam. The proposed Cambodian operations would mirror that model, focusing on the production of commercial trucks, buses, specialised water tankers, and emergency vehicles powered by a range of fuels, including gasoline, diesel, gas, and electric engines.

The Russian firm confirmed it has already held preliminary discussions with the Cambodian Prime Minister and is actively seeking a strategic site within Phnom Penh to expedite operations. Company officials cited strong domestic demand as a primary driver for entering the Cambodian market.

“We have studied the Cambodian market and identified significant demand for our products,” Leonid stated during the presentation. “We are eager to establish operations here as soon as possible.”

In a gesture of partnership, GAZ Group showcased two of its vehicle models to city officials, offering to donate one unit to the Phnom Penh municipal administration. The company has requested the city’s assistance in expediting the necessary import and customs procedures for the donation.

Deputy Governor Imran Hassan expressed the municipality’s full support for the investment, promising to facilitate legal and administrative processes to ensure a smooth entry for the manufacturer.

“On behalf of the Phnom Penh administration, we strongly endorse this investment and will work diligently to provide all necessary legal coordination,” he said. 

khmertimeskh