The Council for the Development of Cambodia (CDC) has greenlit three manufacturing investment projects – two in garments and one in packing materials – with total registered capital of more than $17 million that are expected to generate 6,482 new jobs.
The CDC – the government’s highest decision-making body for large-scale investments – affirmed in a February 22 notice that its Cambodian Investment Board (CIB) had “decided to issue” investment project registration certificates to the three companies behind the ventures.
On the garments front, Pengjiao (Cambodia) Industrial Co Ltd’s $7 million factory in Samrong village, Sophy commune of northern Takeo’s Bati district and SSH CB Sustainable Fashion Co Ltd’s $5.1 million plant in Prey Sala village, Ralaing Kroeul commune, Samrong Tong district, Kampong Speu province are slated to deliver 3,258 and 2,148 new jobs respectively.
The $5.5 million packing materials factory in Tuol Sambor village, Damnak Raing commune of Kampong Speu’s Samaki Monichey district – formerly part of Oudong district – linked to a “Zhong Shan Teng Fei [Cambodia] Packaging Material Co Ltd” is set to create 1,076 jobs.
The Ministry of Commerce lists addresses in mainland China for officers of the companies except for Zhong Shan Teng Fei which was not found in the business registry as of press time: Shanghai recorded for Pengjiao, and Hangzhou city of Zhejiang province for SSH CB Sustainable Fashion.
Cambodia Chamber of Commerce (CCC) vice-president Lim Heng commented to The Post on February 23 that investments keep rolling in even though global political and economic conditions have yet to return to pre-Covid-19 norms.
Political stability, relatively strong economic growth, favourable investment laws, preferential tariff treatment from major trading partners, and a diverse skilled and affordable labour force are among the main factors convincing local and foreign entities to invest in Cambodia, he surmised.
Cambodia has also benefited to a certain degree from geopolitical conflicts between major powers, which has prompted a number of enterprises to relocate their factories here, Heng claimed, sticking to his expectation that additional large international companies will invest in the Kingdom.
“Opening physical factories or businesses here like this has brought many positive effects for the national economy by, among other things, creating job opportunities, reducing overseas work migration, and also bringing in customs and tax revenues,” he said, in a nod to the three companies mentioned in the February 22 CDC notice.
At the 25th meeting of the Cambodia-Japan Joint Committee on February 21, CDC secretary-general Sok Chenda Sophea affirmed the government’s commitment to creating a more conducive investment environment; improving administrative procedures to further integrate the Kingdom into regional and global supply chains; and building a stronger and more resilient economy.
Of note, the Greater China region – comprising mainland China, Hong Kong, Macau and Taiwan – accounted for $18.0 billion or 43.9 per cent of the 168.8 trillion riel ($41.0 billion) cumulative total in foreign direct investment (FDI) logged by Cambodia between the August 5, 1994 promulgation of the old Law on Investment and end-2021, according to the central bank.