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Auto, electronics development key for Cambodia’s growth
The government has identified automotive and electronics as priority sectors for promoting Cambodia’s participation in the global value chain and promoting economic diversification and, in particular, economic recovery, says Aun Pornmoniroth, Minister of Economy and Finance and Chairman of the Economic and Financial Policy Committee
The Ministry of Economy and Finance held a meeting to discuss a roadmap for developing Cambodia’s automotive and electronics sectors.
“The discussion meeting to prepare this roadmap came after Cambodia saw that in the recent period, the automotive and electronics sectors in Cambodia have grown significantly,” according to a press release from the Ministry of Economy and Finance.
Aun Pornmoniroth, Minister of Economic and Finance and Chairman of the Economic and Financial Policy Committee, said that the government has identified automotive and electronics as priority sectors for promoting Cambodia’s participation in the global value chain and promoting economic diversification and, in particular, economic recovery.
Two documents were prepared to present the long-term vision of the government.
The ‘Roadmap for the Development and Attraction of Investment in the Automotive Sector’ targets the development of Cambodia’s automotive sector and links it to the regional and global value chain. It looks to transform Cambodia into a components manufacturing hub. It intends to promote the production of more complex vehicle components and higher value-added.
The ‘Roadmap for the Development and Attraction of Investment in the Electronics Sector’ seeks the transformation of Cambodia into an integrated electronics production hub. It aims to produce a wide range of electronic components, semi-finished components, sub-assembled products and fully assembled products to serve the regional and global export markets.
On March 1, 2022, the Council for the Development of Cambodia held a consultation meeting on the draft roadmap for the development of the automotive and electronics sectors. It was attended by the representatives of relevant ministries and institutions and the key stakeholders in the automotive and electronics sectors.
Sok Chenda Sophea, Secretary General of the Council for Cambodia, said that the successful implementation of roadmaps in these two areas would have significant implications for Cambodia, such as increasing exports to more than $2 billion and creating over 22,000 new jobs in five years. In the future, it will raise new opportunities for local small and medium enterprises in these sectors.
He said that investors in the automotive and electronics sectors would also benefit from the arrangement, such as developing skilled human resources and additional electricity and logistics infrastructure improvements.
Hong Vannak, an economic researcher at the Royal Academy of Cambodia, told Khmer Times that this road map is crucial for Cambodia. “In the last decade, despite the Covid-19 crisis, the purchasing power regarding vehicles in Cambodia has increased significantly. Recently, in March, the CDC approved new projects for electronic components in Cambodia and existing electronic components companies in the Phnom Penh Economic Special Zone and Poipet Special Economic Zone, invested by a Japanese company.”
“This sector is an important segment considering the global demand. Cambodia has the potential to attract foreign investors in the automotive and electronics sectors. We have adequate infrastructure, including deep-sea ports and favourable natural conditions, peace and helpful laws. The automotive and electronics sectors are stable in demand compared to the garment sector,” he pointed out.
“To ensure the success of this road map, the government prepares valuable legal documents, encourages investment equity for foreign investors, and cooperates with businesses to fully engage with the government. The government continues to establish diplomatic relations with partner countries, and financial institutions, ensuring that all countries buy products from Cambodia,” he added.
Source: https://www.khmertimeskh.com/501060746/auto-electronics-development-key-for-cambodias-growth/