Logo of Phnom Penh Post newspaper Phnom Penh Post - CDC gives nod to nine new factories

CDC gives nod to nine new factories

Content image - Phnom Penh Post
The nine factories have cumulative registered capital investment of around $43 million and are expected to bring a total of 11,049 new jobs. Heng Chivoan

CDC gives nod to nine new factories

The Council for the Development of Cambodia (CDC) on January 12 announced that it has approved nine factories – most of which will produce garments or travel goods – with cumulative registered capital investment of around $43 million that are expected to create a total of 11,049 new jobs.

The CDC said in a statement that it had agreed to issue final registration certificates for the nine projects, including garment factories Como Apparel Co Ltd, Sincere Season (Cambodia) Garment Co Ltd, Powerful Riches Garment (Cambodia) Co Ltd, and Inkyung Wondang Apparel Co Ltd.

Other factories included Global Supply Redwood Co Ltd (bags), Leona (Cambodia) Co Ltd (bags and suitcases) and Green Bag (Cambodia) Co Ltd (handbags and other bags).

The other two are in Preah Sihanouk province’s Cambodian Zhejiang Guoji SEZ: Cambodian Shenghong Packaging Co Ltd (cardboard and plastics) and Best-Run Technology (Cambodia) Co Ltd (pet supplies).

The cumulative registered capital investment of the projects falls in the range of $42.92-43.64 million, according to The Post’s calculations, accounting for rounding.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, postulated that although the majority are in light industry, CDC approvals generally reflect the unobjectionable investment potential of the Kingdom, which continues to lure in new players to the market, despite the difficult time of the Covid-19 crisis.

The latest group of newcomers comes due to investor confidence in Cambodia’s work capacity and sustainability, as well as the epidemiological situation now that the national vaccination rate has risen to nearly 90 per cent, he said.

“Investment growth is an indicator reflecting that the Cambodian economy has started to recover. By the same vein, it will also help create jobs and income for the people,” Vanak told The Post on January 13.

He predicted that the number of applications for such projects in the Kingdom would increase as the Covid-19 situation tapers off, creating a more favourable environment for investment.

Factors such as a supportive new investment law, diverse skilled labour force, convenient infrastructure and trade facilitation agreements with many countries will contribute to these favourable conditions, he said.

Cambodia Chamber of Commerce vice-president Lim Heng said the steady stream of CDC approvals shows that investors’ interest in the Cambodian market remains strong despite Covid, as the Kingdom strives to unlock its investment potential.

He said Cambodia welcomes investors from all countries and all sectors who abide by the Kingdom’s laws.

“Every investment, no matter in which sector, will help Cambodia’s economy grow.”

CDC secretary-general Sok Chenda Sophea on January 11 presided over an in-person and virtual “insiders’ breakfast” co-hosted by the council and European Chamber of Commerce in Cambodia to provide in-depth details on the new investment law and the latest developments in the field.

He told the event that the Kingdom has been bending over backwards to improve its investment environment, to entice more inflows in the “new normal” with Covid, and keep pace with the fourth industrial revolution and digitalisation.

The government is committed to facilitating investment and related maintenance services for all investors without discrimination, he said.

“The now-effective Cambodia-China Free Trade Agreement [CCFTA] and Regional Comprehensive Economic Partnership [RCEP] agreement, and the Cambodia-Korea Free Trade Agreement – currently in preparation for entry into force – will help improve market access and increase the allure of Cambodian investment opportunities,” Chenda Sophea said.

The new Law on Investment was promulgated on October 15, and the CCFTA and RCEP entered into force in Cambodia on January 1.

MOST VIEWED

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • Hun Sen gets 4th Covid shot, urges compatriots to follow

    Prime Minister Hun Sen and his wife Bun Rany on January 14 received their fourth dose of Covid-19 vaccine and called on compatriots to follow suit as the Omicron coronavirus variant continues to spread in the community. This marks the launch of Cambodia's fourth-dose vaccination campaign,

  • Fourth dose Covid booster drive jabs 43K in two days

    In the first two days of the fourth-dose Covid-19 vaccination campaign, more than 43,000 people volunteered to get the jabs, while over 4.6 million people have received a third shot. Health ministry spokeswoman Or Vandine said that fourth-dose vaccinations, which began on January 14 exclusively with the Pfizer

  • Singapore backs Cambodia's efforts on Myanmar

    Singaporean Prime Minister Lee Hsien Loong supports Cambodia in its efforts to seek a solution to the ongoing Myanmar crisis as the chair of ASEAN. Lee expressed his support during a meeting with Prime Minister Hun Sen via videoconference on January 14, with the talks focused

  • PM sets tourism reopening as centrepiece of ATF 2022

    Prime Minister Hun Sen urged ASEAN to reopen tourism and trade now that many of the bloc’s member countries have vaccinated their populations. Speaking at the 40th ASEAN Tourism Forum 2022 (ATF 2022) in Preah Sihanouk province on January 18, the premier also said ASEAN has a