Thailand
Cambodia to be ASEAN logistics hub for Japan’s Aeon
Cambodia’s burgeoning economy and well-tested legislation surrounded by foreign ownership rights have encouraged leading Japanese retailer Aeon to start international logistics services in Cambodia by 2023.
The Aeon Mall is mulling to build 30,000 sq meter logistics center in Sihanoukville in 2023. The gigantic center will offer import storage, customs clearance and support for cross-border online retail.
As such Cambodia plans to develop part of the economic zone as a free trade port with backing from the Japanese government and Japan International Cooperation Agency.
The center will feature Cambodia’s first bonded warehouse that shall allow importers store products from abroad without paying duties. Companies
can leave large quantities of goods at the centre for a certain period, withdrawing them as needed with minor paying tariffs.
Aeon Mall shopping centers in Cambodia looks to have mall tenants use the warehouse to store imports from Japan, Europe, the U.S. and elsewhere.
Besides, the hub will market its services to local retailers and e-commerce companies, along with Japanese consumer products makers looking to sell in Cambodia.
But the principal objective is linked to the growth story for Aeon. Its medium-term plan through 2025 targets over 100 billion yen ($860 million) in operating profit in Asia outside Japan.
Cambodia’s imports rose to $19.13 billion in 2020 from $6.79 billion in 2010. Further growth is anticipated under the RCEP trade pact that has come into effect begining this year. This will further boost the region’s international e-commerce market. Already Sea – Southeast Asia’s largest e-commerce company – and Alibaba Group Holdings have made Cambodia their focul point.
Once Aeon Mall starts operating its international logistics business in Cambodia, it will enlarge its reach to countries such as Indonesia, Malaysia and beyond.
Source: https://www.khmertimeskh.com/501003780/cambodia-to-be-asean-logistics-hub-for-japans-aeon/