Logo of Phnom Penh Post newspaper Phnom Penh Post - Toyota looks to Poipet for Thai expansion

Toyota looks to Poipet for Thai expansion

Toyota looks to Poipet for Thai expansion

Toyota Motor Corp’s (TM) trading arm Toyota Tsusho Corp (TYO), is to build a second rental plant in Banteay Meanchey province’s Techno Park Poi Pet to support the Japanese firm’s plans to further expand into the Thai market.

Naoto Sugita, the business park’s deputy managing director, told NNA News that TYO’s wholly owned, Poipet-based subsidiary Techno Park Poi Pet Pvt Corp had signed a contract with Japanese-Cambodian venture Sanco Cambo Investment Group Corp, which operates a special economic zone (SEZ) in Poipet, to build the facility.

According to the report, TYO is set to complete construction of the 8,000sqm factory in Techno Park Poi Pet – four hours from the Thai capital Bangkok – in August next year.

The amount of investment in the project was not disclosed.

Official Council for the Development of Cambodia (CDC) data shows there were 141 Japanese investment projects in Cambodia as of September, with $2.5 billion in capital investment.

Of these, 66 are located in SEZs with an estimated capital investment of $340 million, according to the CDC.

Cambodia Chamber of Commerce vice-president Lim Heng, an investor in several rental warehouses and factories, said the move was indicative of the increased demand in investing in Cambodia’s manufacturing sector.

Heng told The Post that a growing number of investors from China, South Korea and Japan had sought out Cambodia as a manufacturing base to export automotive parts, consumer electronics and other goods for the global market.

“The high demand for rental factories has increased rental prices to $2.50 per square metre, up from $1.80 last year,” he said.

Poipet has become an increasingly attractive destination for Japanese firms who are struggling with rising wages and poor labour management in neighbouring Thailand.

The new rental factory is to provide other services such as logistics, staffing, education and customs clearance.

TYO said it may build a third facility in the Kingdom if there is the demand.

In 2016, TYO built its first rental factory in Techno Park, where five other firms also produce automotive and electrical components and other goods.

MOST VIEWED

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Cambodia at ‘most critical moment’, Hun Sen warns

    Prime Minister Hun Sen said the first community transmission of Covid-19 in Cambodia has led the country to the “most critical moment” that warranted urgent, large-scale operations to contain the pandemic. Hun Sen, who confirmed the first local transmission on November 28, said the source of

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there