Logo of Phnom Penh Post newspaper Phnom Penh Post - Poipet SEZ signs first lease to Japan firm

Poipet SEZ signs first lease to Japan firm

The factory of a Japanese company operating in Phnom Penh SEZ is seen in 2014. The company’s subsidiary in Poipet has signed its first lease since being established in 2014 to Japan’s Sumitronics.
The factory of a Japanese company operating in Phnom Penh SEZ is seen in 2014. The company’s subsidiary in Poipet has signed its first lease since being established in 2014 to Japan’s Sumitronics. Hong Menea

Poipet SEZ signs first lease to Japan firm

Japanese firm Sumitronics signed a lease to become the first tenant at the Poipet Special Economic Zone, which was established as a subsidiary of the publicly listed Phnom Penh Special Economic Zone (PPSEZ) in 2014.

The electronics firm leased a 1-hectare plot of land in the zone, moving its manufacturing operation 8 kilometres outside the border town of Poipet in Banteay Meanchey province, where it had been located since 2016.

“This is a historical agreement for us and a milestone,” said Hiroshi Uematsu, CEO of the PPSEZ, in a press release. “We expect more companies to set up their operations at Poipet PPSEZ in the near future.”

The terms of the lease were not disclosed.

According to PPSEZ’s most recent financial filings, the group earned 96 percent of its revenue from its Phnom Penh SEZ operations last year, while it has provided about $5.7 million in advances to the Poipet PPSEZ since 2016.

The Phnom Penh SEZ Plc group’s overall revenue has fallen every year since 2014, when it posted revenue of more than $20 million. That amount fell to $16.4 million in 2015, $9.2 million in 2016 and $8.8 million in 2017.

Profits rose during that same time period, increasing from $1.4 million in 2016 to $1.7 million last year, largely due to an increase in “other income” and a decrease in general administrative expenses.

While the Phnom Penh SEZ operation posted a profit of $2.1 million last year, the group’s overall profit was just $1.7 million.

According to the Poipet PPSEZ website, the zone aims to attract electronic, garment, automobile and plastic industries seeking easy access to major cities in the region.

“Poipet, with its strategic location, geographical connectivity and abundant young labour force nearby, is becoming a regional hotspot for industrial development in inter-Asean investments,” Uematsu said in the release.

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