Logo of Phnom Penh Post newspaper Phnom Penh Post - Hitachi set to conduct feasibility study for new SEZ

Hitachi set to conduct feasibility study for new SEZ

Hitachi set to conduct feasibility study for new SEZ

Japanese conglomerate Hitachi announced plans yesterday for the development of a new special economic zone south of Phnom Penh.

In a statement released yesterday, Hitachi, one of Japan’s largest infrastructure developers, said it is partnering with Japan’s Forval Corporation, the Japan Development Institute and Cambodian real estate developer Heng Development to assess the potential of a new economic zone in Kandal province.

“The four companies will conduct, by June 2015, a feasibility study on marketing, basic design, business plan and other aspects, and conduct a commercial viability assessment based on the results of the study,” the statement reads.

If the study gives the project the green light, construction on the economic zone will begin in July and will take a year to complete according the company’s announcement.

Providing tax and administration incentives to its occupants, the new industrial zone would initially be built over 1 million square metres with the potential to triple in size in the future.

“The site is near national roads and beltways, and offers good access to Bangkok and Ho Chi Minh City. Hitachi expects the tenants of the industrial park to be companies from various Asian countries, as well as Japanese companies,” the statement goes on to say.

Seang Chanheng, general director of Heng Development, the project’s Cambodian partner, told the Post yesterday that negotiations have been in plan with Hitachi for about two years.

Although hopeful that the project would come to fruition, Chanheng cautioned that a thorough assessment was required before a decision to proceed could be made.

“Hitachi is one of the biggest companies in the world and it has many investment partners, and we do want Japanese companies [in Cambodia], because Japanese companies that come and set up shop, making products for the local and markets abroad, they always produce goods of good quality,” she said.

Chanheng said a capital investment figure for the zone would not be confirmed until the completion of the feasibility study.

If it goes ahead, Hitachi’s industrial park will join a growing list of special economic zones in Cambodia, most of which are located along the country’s borders. According to the Ministry of Commerce, 33 SEZ’s have been approved and 11 are currently in operation.

Hiroshi Suzuki, chief economist at Business Research Institute for Cambodia, said that Japanese investment in SEZ’s throughout the region had already proven successful.

“I believe that this type of investment could have a good success based on the experiences in neighbouring countries such as Thailand and Vietnam,” he said referring to the Hitachi proposal.

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a