Logo of Phnom Penh Post newspaper Phnom Penh Post - Bag firm plans to grow local operations

Bag firm plans to grow local operations

Bag firm plans to grow local operations

Wah Sun Handbags International Holding unveiled plans yesterday to expand its Cambodia operations, citing the country’s low labour costs as the primary reason for the move.

In a filing on the Hong Kong Stock Exchange, the handbag manufacturer announced plans to raise up to $18 million from an initial public offering, 45 percent of which would be used to fund several new projects in the Kingdom.

The plans include new construction, the establishment of a product development team and upgrades to the firm’s existing systems and showrooms.

In the statement, the company said that its interest in Cambodia was due to the relatively low labour costs, particularly in comparison to China, where the average monthly salary for workers in the handbag original equipment manufacturing industry is nearly three times as high as the minimum wage in Cambodia.

“It is expected that more non-leather handbag factories will move from other countries to Cambodia in the future,” the statement reads.

Seang Thay, a spokesman for the Ministry of Commerce, yesterday welcomed the expansion of Wah Sun’s operations in Cambodia and said that he expected the industry to attract more investors in the future.

“After receiving duty-free export [rights] for goods shipped to the US market, we have seen a significant increase in exports of these products,” he said, referring to the mid-2016 expansion of the Generalised System of Preferences (GSP). The GSP expansion allowed all “travel goods”, which includes luggage, backpacks, handbags and wallets, to access the US market duty-free.

Wah Sun’s major customers are multinational fashion brands, including Aldo Group and Nine West Holdings, which are headquartered primarily in western countries.

The brand’s Cambodian factory was established in Kampong Speu province in 2013 and currently employs about 4,500 workers.

MOST VIEWED

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Banteay Meanchey flood victims receive aid

    Prime Minister Hun Sen on Wednesday provided aid to more than 10,000 families affected by flooding in Banteay Meanchey province’s Mongkol Borei district and offered his condolences to the 18 victims who drowned in the province over the past week. He said flooding had occured in

  • PM urges caution as Polish man tests positive for Covid

    The Ministry of Health on Wednesday reported that a 47-year-old Polish man tested positive for Covid-19 after arriving in Cambodia on Monday. There are a total of six Covid-19 patients currently in the country, all of whom are being treated at the Khmer-Soviet Friendship Hospital

  • Banteay Meanchey floods kill one more as death toll reaches 15

    As floodwaters start to recede in Pursat, Battambang and Pailin provinces and Phnom Penh, Banteay Meanchey continues to bear the brunt as one more person was killed on Monday, bringing the total number of flood-related deaths to 15 in the province this month. Banteay Meanchey provincial

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from

  • Floods prompt evacuations in Kampong Speu

    Rain-induced floods and water flowing from Kampong Speu province have submerged the houses of 1,527 families living close to the Prek Thnot River in Spean Thma, Tien, Kong Noy and Roluos communes in Phnom Penh’s Dangkor district, according to data from local authorities. Spean Thma