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Cambodia: Poipet industrial park begins operations
Poipet PP Special Economic Zone (Poipet PPSEZ) yesterday announced it is officially beginning operations.
Poipet PPSEZ – located about eight kilometres east of Poipet City in Banteay Meanchey province on the border with Thailand – is owned by Phnom Penh SEZ Plc and boasts access to the border crossing.
Also yesterday, Sumitronics Manufacturing (Cambodia) Co Ltd, a subsidiary of Japanese electronics manufacturer Sumitronics Corporation, held the official launch of its operations in the Kingdom. The firm has set up inside Poipet PPSEZ after reaching a land leasing deal in April 2018.
Presiding over Sumitronics’ launching ceremony, Sok Chenda Sophea, secretary-general of the Council for the Development of Cambodia (CDC), said the firm’s investment reflects the confidence of the private sector in the government. The firm will significantly contribute to the development of the industrial sector in Cambodia, he added.
“This investment will generate jobs for locals and it is in line with the 2015-2025 Industrial Development Policy,” he was quoted as saying in a CDC statement released yesterday.
Newly appointed Japanese ambassador Masahiro Mikami said Sumitronics’ facilities contribute to the ‘Thailand-Plus-One’ strategy.
‘Thailand-Plus-One’ refers to a business model in which Japanese firms maximize revenue by expanding their existing supply chain network in Thailand towards Cambodia, Laos, and Myanmar. The Toyota Group is a good example of the strategy, as it is shifting labor-intensive auto parts manufacturing to these countries.
Mr Mikami said Cambodia has become an attractive destination for Japanese investors due to its fast economic growth, investor-friendly environment, and strategic location.
Hiroshi Uematsu, director of Phnom Penh SEZ Plc, told Khmer Times that Poipet – with its strategic location, geographical connectivity, and abundant young labour force – is becoming a regional hotspot for industrial development in Asean, especially under the ‘Thailand-Plus-One’ strategy.
“The Royal Government of Cambodia has put a lot of effort into infrastructure development to stimulate cross-border business activities, such as new international border gate development, railway rehabilitation, and road expansion,” he said.
According to the company, Poipet PPSEZ occupies 65.7 hectares of land and targets companies in the manufacturing sector, particularly auto parts, electronics, garments, packaging, and plastics.
Strategically located with direct access to National Road 5, Poipet PPSEZ is an important hub along the Hoh Chi Minh – Phnom Penh – Siem Reap – Bangkok route, the company said. The SEZ is about 250 km away from the deep-sea port in Laem Chabang, Thailand.
According to CDC’s report, the Kingdom has 23 active special economic zones, which together are home to 490 factories and 130,000 jobs.
Poipet now has three active SEZs with a total of 17 factories and 7,500 jobs. Eight of those factories belong to Japanese companies.
Source: https://www.khmertimeskh.com/50668493/poipet-industrial-park-begins-operations/