Logo of Phnom Penh Post newspaper Phnom Penh Post - Poipet SEZ signs first lease to Japan firm

Poipet SEZ signs first lease to Japan firm

The factory of a Japanese company operating in Phnom Penh SEZ is seen in 2014. The company’s subsidiary in Poipet has signed its first lease since being established in 2014 to Japan’s Sumitronics.
The factory of a Japanese company operating in Phnom Penh SEZ is seen in 2014. The company’s subsidiary in Poipet has signed its first lease since being established in 2014 to Japan’s Sumitronics. Hong Menea

Poipet SEZ signs first lease to Japan firm

Japanese firm Sumitronics signed a lease to become the first tenant at the Poipet Special Economic Zone, which was established as a subsidiary of the publicly listed Phnom Penh Special Economic Zone (PPSEZ) in 2014.

The electronics firm leased a 1-hectare plot of land in the zone, moving its manufacturing operation 8 kilometres outside the border town of Poipet in Banteay Meanchey province, where it had been located since 2016.

“This is a historical agreement for us and a milestone,” said Hiroshi Uematsu, CEO of the PPSEZ, in a press release. “We expect more companies to set up their operations at Poipet PPSEZ in the near future.”

The terms of the lease were not disclosed.

According to PPSEZ’s most recent financial filings, the group earned 96 percent of its revenue from its Phnom Penh SEZ operations last year, while it has provided about $5.7 million in advances to the Poipet PPSEZ since 2016.

The Phnom Penh SEZ Plc group’s overall revenue has fallen every year since 2014, when it posted revenue of more than $20 million. That amount fell to $16.4 million in 2015, $9.2 million in 2016 and $8.8 million in 2017.

Profits rose during that same time period, increasing from $1.4 million in 2016 to $1.7 million last year, largely due to an increase in “other income” and a decrease in general administrative expenses.

While the Phnom Penh SEZ operation posted a profit of $2.1 million last year, the group’s overall profit was just $1.7 million.

According to the Poipet PPSEZ website, the zone aims to attract electronic, garment, automobile and plastic industries seeking easy access to major cities in the region.

“Poipet, with its strategic location, geographical connectivity and abundant young labour force nearby, is becoming a regional hotspot for industrial development in inter-Asean investments,” Uematsu said in the release.

MOST VIEWED

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said

  • CPP: ‘Behave or Sokha suffers’

    The ruling Cambodian People’s Party (CPP) spokesman warned Kem Monovithya on Thursday that her attempt to damage “national reputation and prestige” would lead to her father, Kem Sokha, receiving even harsher punishment. Sok Eysan issued the warning as Monovithya, who is the court dissolved

  • Preah Sihanouk beach developments halted

    After receiving an order from Hun Sen, Minister of Land Management Chea Sophara led a team of experts and relevant officials to Sihanoukville to call a halt to the illegal development of a beach. The prime minister ordered the Prek Treng beach in Otres commune

  • News Analysis: Defiance can last for how long?

    The Cambodian government has so far stood strong in the face of mounting international pressure over its treatment of critics, but analysts, diplomats and ruling party officials now wonder how long the defiance can last. The European Union has led the firestorm of criticism, threatening