Kampong Speu vehicle plant revs up hope for automobile industry

PHNOM PENH (The Phnom Penh Submit/Asia Information Community): GTV Motor Co Ltd’s planned US$15.6 million car or truck assembly plant in eastern Kampong Speu province has brightened prospects for Cambodia’s nascent automotive market and reaffirmed the great unexplored opportunity of this South-East Asian market place.

In a June 17 see, the Council for the Development of Cambodia (CDC) noted that it experienced authorised the job, which it mentioned would develop 738 new jobs and be found just off Countrywide Highway 3 in Angkrong village of Kong Pisei district’s Ang Popel commune.

Cambodia Chamber of Commerce vice-president Lim Heng mentioned the financial commitment is a testament to the self confidence that traders position in the region, and their being familiar with of the gains of its financial liberalisation guidelines as perfectly as bilateral and multilateral free trade agreements (FTA).

“We’ve gotten improved investment decision flows into new sectors – not in traditional industries like garments and textiles,” he reported, adding that this diversification would create and sustain an financial buffer to boost the sustainability of expansion.

“This highlights the trust and self-confidence that the two neighborhood and international traders have in our country’s financial expansion, political steadiness and sweeping federal government reforms, as effectively as the FTAs we have put in place and people to arrive,” Heng added.

Similarly, Hong Vanak, director of Global Economics at the Royal Academy of Cambodia, stressed that the new Legislation on Investment decision and other governing administration reforms, intra- and more-regional FTAs, and actual physical infrastructure enhancements would be vital drivers of non-conventional expense chances.

“The financial commitment conclusions designed by firms reflect the government’s attempts. Of observe, this hottest project, which is in a newer sector and not a traditional factory, is an critical display of the progressive improvement produced in the Cambodian automotive sector as the organization will not only supply domestically, but quicker or later develop into exports.

“Investment in the automotive sector is a long-expression commitment, and will help the Cambodian economy to grow more robust. It indicates improved tax profits to the govt, and in specific, the creation of a lot more employment for our people [as well as training] in new abilities,” he reported.

The CDC greenlit the venture just a working day soon after RMA Automotive (Cambodia) Co Ltd, an authorised automobile distributor in the Kingdom, on June 16 inaugurated its $21 million Ford vehicle assembly plant in Pursat’s easternmost Krakor district, which is predicted to offer more than 500 work and assemble about 9,000 units every single yr, particularly Ranger SUVs and Everest pickup trucks.