Logo of Phnom Penh Post newspaper Phnom Penh Post - PPSEZ sets sights on German manufacturers

PPSEZ sets sights on German manufacturers

PPSEZ sets sights on German manufacturers

Having established itself with Japanese automotive parts manufacturers, Phnom Penh Special Economic Zone said on Friday that going forward it will target German companies with similar operations, to increase investments at its current and proposed Poipet economic zones.

Hiroshi Uematsu, CEO of Phnom Penh Special Economic Zone (PPSEZ), said the weakening of the yen against the dollar could slow down new private Japanese investments, but the SEZ could capitalise on the presence of German, French and American companies in the region.

“From Asian countries, probably Japan is the most developed [auto parts manufacturer], and from the European countries, Germany is the most developed,” Uematsu said. “So, we want to get German companies.”

But despite a weakening yen, Uematsu said that the PPSEZ was working to persuade Japanese auto parts manufacturers in Thailand to transfer part of their production line to Poipet – the location of PPSEZ’s next economic zone.

He added that uncertainty with the Thai political situation and the 2011 floods, which brought the region to a standstill, has led to Japanese investors considering diversification of their production base.

“There are some products and production process that needs labour and relatively low skills, and they can extract that and bring it to Poipet,” he said.

Given that these processes will hinge on low-cost labour, Uematsu said he was hopeful that any increase to the minimum wage in the Kingdom will be “rational and reasonable.”

PPSEZ had announced intentions last December to go public early this year on the Cambodia Securities Exchange (CSX), but Campu Securities, its underwriter for the listing, said the process was now expected to be completed only by the end of this year.

Goh Keat Lye, CEO at Campu Securities, said despite the stock exchange’s initial lethargy in terms of stock activity, the two already-listed companies – Phnom Penh Water Supply Authority and Grand Twins International – have announced healthy dividends, which will spur interest in the exchange.

“With increasing dividends there will be more stock trading activities at the CSX,” said Goh.

“We feel that this will continue to improve and spur more companies, like PPSEZ, to list on the stock exchange.”

Once listed, PPSEZ will enjoy a three-year 50 per cent tax break, which was announced by the government early 2014, in a bid to encourage companies to list on the fledgling exchange.

MOST VIEWED

  • Cambodia’s image problem

    In opening remarks at a recent event, Secretary of State at the Ministry of Foreign Affairs and International Cooperation Luy David said information can be a double-edged sword. He told a European Institute of Asian Studies (EIAS) briefing seminar that the media has unfairly presented

  • PM Hun Sen says dangers averted

    Delivering a campaign speech from his home via Facebook Live on Thursday, caretaker Prime Minister Hun Sen said his Cambodian People’s Party (CPP) had carried the country through danger in its latest mandate. He was specifically referring to the threat of a “colour revolution”

  • Kingdom's trade deal with EU questioned before poll

    A European Union (EU) mission met with senior government officials at the Ministry of Interior on Tuesday as the 28-member bloc monitors an agreement under which Cambodian goods reach the crucial European market tariff-free. Some 10 commissioners are in the Kingdom as part of a seven-day

  • A new carrier takes off in capital

    Cambodia Airways, the latest passenger airline to enter the Kingdom, launched its first domestic flight on Tuesday. Flight KR801, carrying 145 passengers, left the Phnom Penh International Airport at 9:50am and landed in Siem Reap at 10:35am in an Airbus A319. Cambodia Airways marketing and branding