Logo of Phnom Penh Post newspaper Phnom Penh Post - Electronics factory to open

Electronics factory to open

Electronics factory to open

A US$37.9 million base plate factory will launch in June in the northwestern province of Banteay Meanchey, Japanese electronics manufacturer SC WADO Component Co said yesterday in a statement.

The entry of SC WADO, a subsidiary of Nidec Electronics, was another step in Cambodia’s march away from garment exports, which have been the country’s primary ware to overseas markets.

The company will start on an initial investment of about $12.6 million, and is expected to employ 350 Cambodian workers during its first year of operations, according to the company statement.

By 2014, the manufacturer could have 5,000 workers making base plates, a component of computer hard disc drives.

Last year, Japanese ball bearings maker Minebea became one of first international companies to try Cambodian hands at higher-level production.

The company invested $60 million in its plant in the Phnom Penh Special Economic Zone and is said to be looking for 3,000 local workers this year.

Ford and Hyundai assemble vehicles in the Kingdom.

“Cambodia can enjoy large-scale employment and diversify and increase its exports. Nidec can enjoy reasonable labour costs,” chief executive and economist at the Business Research Institute of Cambodia Hiroshi Suzuki said yesterday.

“It’s very good news for the Cambodian economy. This kind of parts manufacturing is the best investment for Cambodia.”

Concerns over Cambodia’s ability to produce higher-skilled labour, however, has overshadowed some of the cheer surrounding the recent increase in parts manufacturing.

In a report in April, the Asian Development Bank pointed to skill shortage as a primary barrier in the country’s drive toward diversified exports.

Chan Sophal, president of the Cambodian Economic Association, pointed yesterday to some of the problems in securing skilled labour for the price manufacturers expect to pay in Cambodia.

“Our human resources are not attractive compared to Vietnam and Thailand. We lack skilled workers,” he said. “If factories want to employ university graduates, they should give them a better salary because they won’t work for low wages.”

To contact the reporter on this story: May Kunmakara at [email protected]

MOST VIEWED

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • Mr Pancake or M Crepe? Tasty by any title

    Crowds of people gather around a lone man with a mobile food cart every day at around 2pm in front of the Institut Francais du Cambodge to order what many say are the best crepes in Phnom Penh. To some – even to the man making

  • Fourth dose Covid booster drive jabs 43K in two days

    In the first two days of the fourth-dose Covid-19 vaccination campaign, more than 43,000 people volunteered to get the jabs, while over 4.6 million people have received a third shot. Health ministry spokeswoman Or Vandine said that fourth-dose vaccinations, which began on January 14 exclusively with the Pfizer

  • Singapore backs Cambodia's efforts on Myanmar

    Singaporean Prime Minister Lee Hsien Loong supports Cambodia in its efforts to seek a solution to the ongoing Myanmar crisis as the chair of ASEAN. Lee expressed his support during a meeting with Prime Minister Hun Sen via videoconference on January 14, with the talks focused

  • PM sets tourism reopening as centrepiece of ATF 2022

    Prime Minister Hun Sen urged ASEAN to reopen tourism and trade now that many of the bloc’s member countries have vaccinated their populations. Speaking at the 40th ASEAN Tourism Forum 2022 (ATF 2022) in Preah Sihanouk province on January 18, the premier also said ASEAN has a