HGB Motors Assembly Co Ltd is investing about $7 million in a car assembly plant in Poipet town, Banteay Meanchey province.
The Council for the Development of Cambodia (CDC) on September 21 issued a final registration certificate for the facility, which is expected to create 165 jobs and is located in Poipet PP Special Economic Zone of the northwestern town on the Thai border.
While admittedly not aware of the specifics, Banteay Meanchey Provincial Administration director Chhoeun Krayong nonetheless said he welcomes the venture.
Cambodia Chamber of Commerce vice-president Lim Heng sees the project as a portent of heavy industry expansion in the Kingdom, noting that historically, most manufacturers have been considered light industry.
He explained that heavy industry revolves around larger products and characteristically involves stable and long-term investments, as opposed to light industry, where he implied that it is easier for investors to back out.
“In Cambodia we have the political stability and peace that inspires people to try their hand at investing in this type of industry,” he said.
He lauded the plant as a reflection that confidence in the Kingdom and the new investment law is motivating businesspeople to enter the Cambodian market.
“This project will also contribute to the growth of internal tax revenue, and hence more production, more investment, manufacturing enterprises, as well as more consumption of Cambodian raw materials, triggering an uptick in GDP [gross domestic product],” Heng said.
However, HGB Motors is not the first company to throw their hat into the post-civil war era automotive assembly ring.
RMA (Cambodia) Plc, which has a bond listed on the Cambodia Securities Exchange, announced that it was authorised by Ford Motor Co to build Ranger pickups and Everest SUVs, and is due to set up an assembly plant in Pursat province’s easternmost district of Krakor.
And a car assembly plant owned by Camko Motor Co Ltd opened in 2011 in the Koh Kong Special Economic Zone.