Logo of Phnom Penh Post newspaper Phnom Penh Post - CDC gives nod to nine new factories

CDC gives nod to nine new factories

Content image - Phnom Penh Post
The nine factories have cumulative registered capital investment of around $43 million and are expected to bring a total of 11,049 new jobs. Heng Chivoan

CDC gives nod to nine new factories

The Council for the Development of Cambodia (CDC) on January 12 announced that it has approved nine factories – most of which will produce garments or travel goods – with cumulative registered capital investment of around $43 million that are expected to create a total of 11,049 new jobs.

The CDC said in a statement that it had agreed to issue final registration certificates for the nine projects, including garment factories Como Apparel Co Ltd, Sincere Season (Cambodia) Garment Co Ltd, Powerful Riches Garment (Cambodia) Co Ltd, and Inkyung Wondang Apparel Co Ltd.

Other factories included Global Supply Redwood Co Ltd (bags), Leona (Cambodia) Co Ltd (bags and suitcases) and Green Bag (Cambodia) Co Ltd (handbags and other bags).

The other two are in Preah Sihanouk province’s Cambodian Zhejiang Guoji SEZ: Cambodian Shenghong Packaging Co Ltd (cardboard and plastics) and Best-Run Technology (Cambodia) Co Ltd (pet supplies).

The cumulative registered capital investment of the projects falls in the range of $42.92-43.64 million, according to The Post’s calculations, accounting for rounding.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, postulated that although the majority are in light industry, CDC approvals generally reflect the unobjectionable investment potential of the Kingdom, which continues to lure in new players to the market, despite the difficult time of the Covid-19 crisis.

The latest group of newcomers comes due to investor confidence in Cambodia’s work capacity and sustainability, as well as the epidemiological situation now that the national vaccination rate has risen to nearly 90 per cent, he said.

“Investment growth is an indicator reflecting that the Cambodian economy has started to recover. By the same vein, it will also help create jobs and income for the people,” Vanak told The Post on January 13.

He predicted that the number of applications for such projects in the Kingdom would increase as the Covid-19 situation tapers off, creating a more favourable environment for investment.

Factors such as a supportive new investment law, diverse skilled labour force, convenient infrastructure and trade facilitation agreements with many countries will contribute to these favourable conditions, he said.

Cambodia Chamber of Commerce vice-president Lim Heng said the steady stream of CDC approvals shows that investors’ interest in the Cambodian market remains strong despite Covid, as the Kingdom strives to unlock its investment potential.

He said Cambodia welcomes investors from all countries and all sectors who abide by the Kingdom’s laws.

“Every investment, no matter in which sector, will help Cambodia’s economy grow.”

CDC secretary-general Sok Chenda Sophea on January 11 presided over an in-person and virtual “insiders’ breakfast” co-hosted by the council and European Chamber of Commerce in Cambodia to provide in-depth details on the new investment law and the latest developments in the field.

He told the event that the Kingdom has been bending over backwards to improve its investment environment, to entice more inflows in the “new normal” with Covid, and keep pace with the fourth industrial revolution and digitalisation.

The government is committed to facilitating investment and related maintenance services for all investors without discrimination, he said.

“The now-effective Cambodia-China Free Trade Agreement [CCFTA] and Regional Comprehensive Economic Partnership [RCEP] agreement, and the Cambodia-Korea Free Trade Agreement – currently in preparation for entry into force – will help improve market access and increase the allure of Cambodian investment opportunities,” Chenda Sophea said.

The new Law on Investment was promulgated on October 15, and the CCFTA and RCEP entered into force in Cambodia on January 1.

MOST VIEWED

  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Struggling Battambang artist dreams of staging full-scale gallery exhibition

    Leav Kimchhoth, a 55-year-old artist from Battambang province, is a familiar face to locals and tourists alike on the streets of the riverside in Phnom Penh. The one-armed painter and illustrator often hawks his work near the night market on weekends and public holidays. He

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom

  • PM warns of int’l election interference

    With the national election scheduled to take place in less than two months, Prime Minister Hun Sen has warned foreign nations and their diplomats not to interfere into Cambodia’s domestic affairs. He also hinted that their statements on court verdicts handed down to any