The Council for the Development of Cambodia (CDC) has approved final registration certificates for four investment projects worth nearly $24 million that are expected to create 2,376 new jobs.
A CDC press release issued on June 13 showed that three projects were located in Sihanoukville Special Economic Zone (SSEZ), including Mei An Leatherware (Cambodia) Co Ltd’s $10.5 million bag factory, which plans to deliver 1,000 jobs.
The other two SSEZ ventures were Kai Feng Wood Products (Cambodia) Co Ltd’s $6.6 million plywood and plank board factory and Amto Chemical Technology Co Ltd’s $1.7 million glue, paint and ink plant, respectively anticipated to create 300 and 150 jobs.
The remaining project is Golden Sun Fashion Apparel Co Ltd’s $5 million venture, which plans indicate will bring 926 jobs, and be located in Chaom Chao II commune in the capital’s Por Sen Chey district.
Cambodia Chamber of Commerce (CCC) vice-president Lim Heng told The Post that the rising number of new investment projects is covering an increasingly diverse range of sectors, in a departure from when textile-related sectors overwhelmingly dominated the scene.
The uptick in new project approvals reflects the improving political situation, peaceful environment, more favourable investment laws, an upswing in trade with more trading partners, benefits from bilateral and multilateral free trade agreements (FTA) and progress on new deals, as well as favourable tariffs provided by a slew of countries, he said.
“When the internal conditions of a country are conducive to investment, including the legal system, labour factors and geographical location, as well as [preferential access to] a large number of markets, of course, investors will come,” Heng said.
He also commented on the CCC’s contributions to this end, including efforts to promote Cambodia’s investment potential to foreign investors.
He said that the chamber’s first overseas representative office – opened late last month in Toronto, Canada – would go far in facilitating trade between Cambodia and the North American country, and lure more Canadian investors to the Kingdom.
Heng suggested that the second representative office would be opened in Sendai, Japan.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, said the increase in the number of new CDC approvals would improve the Kingdom’s international trade balance and reduce deficits as well.
He also remarked on the diversity of the new projects, which he noted increasingly cover medium industries. “When a country receives investment in all sectors, it will strengthen the economy by avoiding the issues of exporting the same old products and limited export markets,” he said.
Vanak noted that more local factories and manufacturing enterprises would reduce migration for work.