Logo of Phnom Penh Post newspaper Phnom Penh Post - Ticon follows factory shift to Cambodia

Ticon follows factory shift to Cambodia

Ticon follows factory shift to Cambodia

Ticon Industrial Connection Plc, a Thai-based factory and warehouse developer, is expanding its operations into fast-growing Southeast Asian economies, including Cambodia, to help offset sluggish growth at home.

Lalitphant Phiriyaphant, the company’s chief financial officer, said Ticon has already invested $20 million into expansion in Indonesia, and will consider further investment there, as well as establishing a foothold in Vietnam.

The company is also planning to launch operations in Cambodia next year, he said.

“In Cambodia, we were approached initially by a customer to custom-build a warehouse and lease it only to that customer,” he said.

Ticon specialises in developing and managing industrial real estate properties. The company and its subsidiaries currently have 51 factories and warehouses with nearly 800 units, covering a total 2.4 million square metres of space under management.

Lalitphant said factory owners were being drawn to Cambodia by its low operating costs and abundant cheap labour, and more recently by the US government’s decision to extend its Generalised System of Preferences (GSP) scheme to include Cambodian travel goods, allowing these products to enter the US market duty-free.

He said Ticon has seen many of its customers relocate or expand into Cambodia under the Thailand +1 strategy, in which Japanese companies that have set up production in Thailand extend parts of their supply chains to neighbouring countries in order to hedge risk and take advantage of their cheaper operating costs.

“Cambodia is closer to Bangkok and Thailand’s eastern seaboard area when compared with Laos, Myanmar and southern Vietnam, which makes Cambodia very competitive at substituting Thailand’s manufacturing of labour-intensive products,” he said.

WHA Corporation, a rival Thai warehouse developer, has also announced plans to extend its footprint into Cambodia as part of a regional expansion. The company said in August it would invest $1.2 billion to expand its logistics and warehouse operations in Thailand and Southeast Asia over the coming five years.

WHA currently manages 2.2 million square metres of warehouse space in Thailand.

MOST VIEWED

  • Siem Reap drain canal now ‘mangrove’ promenade

    A more than half a kilometre long stretch of canal in Siem Reap has been covered and turned into a promenade to attract visitors, said Ly Rasmey, secretary of state at the Ministry of Land Management, Urban Planning and Construction, on September 16. The new pedestrianised

  • Angkor wildlife, aquarium park still to open October

    The Angkor Wildlife and Aquarium complex about 30km southeast of Siem Reap town with initial total investment of more than $70 million is reportedly still on track for an end-October opening. The park is located on a 100ha plot along National Road 6 in Kbon village, Khchas

  • Final verdicts for Khmer Rouge leaders ‘vital’ for next generation

    Nearly a decade after the commencement of Case 002/02 against Khieu Samphan back in 2014, the Extraordinary Chambers in the Courts of Cambodia (ECCC) is now set to deliver its final verdict for the former Khmer Rouge head of state. The Supreme Court Chamber of the ECCC,

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Deaths due to ‘lifestyle’ diseases rise in Kingdom

    The Ministry of Health has called on people to pay closer attention to their health to protect themselves from non-communicable diseases (NCDs) which it said have caused high rates of deaths in the country. Ministry secretary of state York Sambath made the call at a

  • Textile industry minimum wage now $200

    The official minimum wage for workers in textile-related sectors including garment, footwear, and travel goods for 2023 was pegged at $198, with Prime Minister Hun Sen stepping in to add $2 to the total, making it $200 per month. The Ministry of Labour and Vocational Training made the announcement