The Kampong Speu Provincial Administration announced that a delegation from UMAC – a joint venture between German and Chinese investors – plan to open six factories in the province, with a capital investment of about $50 million. The six state-of-the-art factories are expected to create up to 10,000 jobs.
Kampong Speu governor Vei Samnang met with the delegates on May 24. Following the meeting, he said the UMAC delegates planned to invest in six factories that would produce women’s bags, cosmetics, silicone, packaging paper and pet supplies.
In addition to meeting with the governor, the delegates also visited the proposed sites of the new factories for the first time.
“The six factories will produce goods for export. They will require a capital investment of about $50 million and will provide employment opportunities for workers in the range of 6,000 to 10,000 jobs,” he added.
“This is a lot of workers. Consequently, I believe there may be people moving to Kampong Speu soon to find work. We have many factories that need workers,” he continued.
He explained that when factories come to do business in his province, they improve the living standards of the local population, as they employ so many of them. It also contributes to the growth of the national economy.
Cambodian Labour Confederation (CLC) president Ath Thorn described the increased investment of large factories and enterprises as an overall positive for the Kingdom, noting that it did not matter which province they invested in, as what matters is that job opportunities are created for Cambodian workers.
He said that if the export volume of the six factories was large, it would create more job opportunities for workers, but if the export volume of those factories was small, the job opportunities would also be reduced.
“Every province is important. If the new factories are going to be built in areas with a lot of impoverished people, I think it would be great. Unfortunately, if they are located in an area with a lot of existing factories, it will not help as much,” he added.
He said he would also like to see factory owners hiring people who are a little older, or the disabled, rather than just young workers. He noted that the government has applied this policy, so he sees no reason why the private sector cannot do the same.