Thai-based Precise Electric Manufacturing Co Ltd is planning to build an electric equipment plant in Pursat province to cash in on the high demand in the Kingdom.
The announcement was made during a meeting between Pursat provincial governor Mao Thornin and the firm’s representatives on Wednesday.
Deputy governor of Pursat province Cheng Lay on Thursday said the plant will be located in the province’s Krakor district.
“We are now rushing to process some documents to facilitate the company’s investment plan to set up the factory,” he said.
The initial phase of the investment project is worth about $2 million, he said, and that the company will increase capital investment to $5 million in the next phase.
“This investment project will help create jobs for people in Pursat province,” he said.
The Council for the Development of Cambodia approved Thai investment projects worth $6.18 million last year, according to data from the Thai Embassy in Cambodia.
Minister of Mines and Energy Suy Sem on Wednesday called on electricity operators and suppliers to support home-made electric products so the Kingdom can stop relying on imports.
Currently, Cambodia has VP.Start Technology Co Ltd, a local manufacturer of electrical equipment, which is producing and supplying electrical equipment.
According to a National Bank of Cambodia report, in the first nine months of last year, Cambodia imported $10.9 billion worth of goods from international markets, while it exported $16.5 billion.
Of that, 15 per cent came from Thailand and four per cent was exported there.
The report said Cambodia imported $18.18 million worth of electrical equipment in the third quarter of last year.
Data from the Thai Embassy shows that Thai-Cambodian trade volumes reached $9 billion last year. The two countries have pledged to boost trade to $15 billion this year.
In order to attract investors and increase export potential, the government has established a forum with the private sector to address issues.
Ministry of Commerce spokesman Seang Thay said his ministry has been reducing some complicated procedures in terms of business registration to promote investment.
“We welcome companies to invest in Cambodia and have reduced costs and time for investors, such as by doing business registration online,” he said.
According to data from the Council for the Development of Cambodia, there were 2,622 foreign investment companies registered in Cambodia as of December last year.
Those companies are investing in a number of key sectors, including manufacturing sectors, enterprises, tourism, agriculture and infrastructure.