Workers working at Meko Intelligent (Cambodia) Co Ltd’s $32 million light bulbs, electronics and electronic parts factory in northern Takeo province on February 20. HMN FACEBOOK PAGE
Meko Intelligent (Cambodia) Co Ltd’s $32 million light bulbs, electronics and electronic parts factory in northern Takeo province official opened on February 20, which pundits have lauded as a product of local export-diversification efforts.
In a February 2022 notice, the Council for the Development of Cambodia (CDC) – the government’s highest decision-making body for large-scale investments – affirmed that it had greenlit the project, which it noted would be located in Veah Puoh village, Khvav commune, Samrong district and expected to generate 1,828 jobs.
The Ministry of Commerce’s business registry only lists a “Huang Lina” with address in Dongguan city, Guangdong province, China as an officer of the company. Dongguan-based Meko Lighting Co Ltd’s website also seems to suggest that Meko Intelligent Cambodia is an affiliate.
At the February 20 inauguration ceremony, Lieutenant General Hun Manet – the eldest son of Prime Minister Hun Sen and a prime ministerial candidate for the ruling Cambodian People’s Party – hailed the new factory as a source of pride for the nation, and a contribution to the Kingdom’s self-sufficiency in consumer goods as well as export growth objectives.
“Cambodia is better able than before to make and install a wide range of products to fulfil domestic and international demand for things such as foodstuffs, garments, footwear, bags and suitcases, furniture, electrical appliances and equipment, bicycles, motorcycles and vehicles,” he said, recalling how the Kingdom in the 80s and 90s had to import almost all consumer goods.
According to Manet, who is also Royal Cambodian Armed Forces (RCAF) deputy commander-in-chief and Royal Cambodian Army (RCA) commander, the factory’s products are to be exported to the US and Canada, among other markets.
The government recently unveiled the “Cambodia’s Automotive and Electronics Sectors Development Roadmap” geared towards turning the Kingdom into a regional and global production hub for automotive and electronic components, drawing in more investment in the field, and boosting exports by billions of US dollars in the long run.
Manet called on domestic and foreign players to invest more in Cambodia and take advantage of the “very attractive” features of the Law on Investment.
Cambodia Chamber of Commerce vice-president Lim Heng remarked to The Post on February 21 that electrical and electronic goods and components, for either domestic supply or export, represent an increasing share of manufacturing investment projects.
These types of medium-industry products make the Cambodian economy more resilient and robust, reduce reliance on the export of textile-related items, and will bring huge profits as well as long-term sustainability for the Kingdom, he argued.
Heng added that light bulbs, electrical appliances, electronics and other medium- and heavy industry products could better position Cambodia to graduate from least developed country (LDC) category, and achieve the government’s goals of entering the “upper-middle income” stage by 2030 and “high-income” group by 2050.
Cambodia’s free trade agreements (FTA) – namely the Regional Comprehensive Economic Partnership Agreement (RCEP) and bilateral deals with China and South Korea – and beneficial updates to the investment laws will be crucial to convincing players to establish investment projects in the Kingdom, he continued.
Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC) president Te Taingpor commented that further reducing electricity prices would slash production costs and strengthen overall competitiveness on the international stage, and thereby be key to bringing in more investors.
“When fuel and electricity prices are stable and low, foreign investors will see opportunities,” he stressed, pointing out raw-material and labour costs as additional major priorities.
In a previous statement, Keo Rottanak, director-general of state-run power utility Electricite du Cambodge (EdC), noted that Cambodia had not raised electricity prices for general daily consumption even as fuel and energy rates rise elsewhere, including in nearby countries.
He also claimed that the Kingdom is now able to bring the share of energy production from “clean” sources to “more than 60 per cent”.
For reference, the World Bank recognises Cambodia as a “lower-middle income” country – one rank below the “upper-middle income” designation – with gross national income (GNI) per capita of $1,551 for fiscal year 2021 (FY21) – the 12-month period ended June 30, 2021 – in nominal terms as calculated by the bank’s Atlas method.
In the current fiscal year 2023, group classifications are based on these calculations of FY21 GNI per capita, as follows: “low income” $1,085 or less; “lower-middle income” $1,086-4,255; “upper-middle income” $4,256-13,205; and “high income” $13,206 or more. The World Bank updates these thresholds each year on July 1.
