Japanese Developer Joins Capital's Economic Zone
By Kay Kimsong
THE CAMBODIA DAILY
The Attwood Group agreed Thursday to jointly develop its Phnom Penh Special Economic Zone with a Japanese developer, Zephyr Co, company officials said.
Zephyr Co Senior Managing Director Kosike Izawa and Attwood subsidiary Phnom Penh SEZ President Lim Chhiv Ho signed an agreement to form the Japan Cambodia Development Corporation and manage the 365-hectare zone, which will be located on National Route 4.
The new corporation announced that the zone will be running by the end of 2007.
Japan-based Colben Energy also signed an agreement to develop a power plant on the site, and Cambodian tycoon Kong Sang, owner of one of Cambodia's largest garment manufacturers, QMI, agreed to become the zone's first tenant.
Lim Chhiv Ho said the joint venture will see $89 million invested in the zone, one of 13 currently planned nationwide. Attwood is already slated to develop another zone in Sihanoukville's Stung Hav district.
"Zephyr will provide 49 percent of the investment capital, and PPSEZ will have 51 percent," Lim Chhiv Ho said. "Together we have already built a gate, drainage system, telephone lines, factory plots," she said.
Asked how her zone will be able to compete with 12 others being planned in Cambodia, Lim Chhiv Ho said that a strong marketing campaign will be necessary.
"It depends on the marketing. If we have good marketing we can attract companies to our zone. The zone developer at the Vietnam border will do marketing to attract Vietnamese investors, the zone developer at the Thai border will attract Thais. For mine in Phnom Penh, we will work to attract everyone, Japanese investors, Thai investors, Singapore investors," she said.
Commerce Minister Cham Prasidh said the Phnom Penh zone is on track to become the second fully-operational special economic zone in Cambodia after the Bavet Zone on the Vietnamese border, which already has factories operating on it.
"I believe that garment factories will come first, followed by electronics companies," he said, before appealing to the Japanese ambassador to encourage Japanese firms to invest in the Phnom Penh zone.
Promising to create 100,000 new jobs, the zone developers also plan numerous blocks of town-houses and apartment buildings.
The Phnom Penh economic zone brochure promises investors that they will "receive the privilege of owning the land or building" and that unskilled workers will be paid at $40 a month—five dollars less than the garment minimum wage outside the zone.
Zephyr Co, created in 1994, has $113 million in market capital. Company materials indicate it is primarily involved in condominium sales in Japan.
Zephyr Co Senior Managing Director Kosike Izawa and Attwood subsidiary Phnom Penh SEZ President Lim Chhiv Ho signed an agreement to form the Japan Cambodia Development Corporation and manage the 365-hectare zone, which will be located on National Route 4.
The new corporation announced that the zone will be running by the end of 2007.
Japan-based Colben Energy also signed an agreement to develop a power plant on the site, and Cambodian tycoon Kong Sang, owner of one of Cambodia's largest garment manufacturers, QMI, agreed to become the zone's first tenant.
Lim Chhiv Ho said the joint venture will see $89 million invested in the zone, one of 13 currently planned nationwide. Attwood is already slated to develop another zone in Sihanoukville's Stung Hav district.
"Zephyr will provide 49 percent of the investment capital, and PPSEZ will have 51 percent," Lim Chhiv Ho said. "Together we have already built a gate, drainage system, telephone lines, factory plots," she said.
Asked how her zone will be able to compete with 12 others being planned in Cambodia, Lim Chhiv Ho said that a strong marketing campaign will be necessary.
"It depends on the marketing. If we have good marketing we can attract companies to our zone. The zone developer at the Vietnam border will do marketing to attract Vietnamese investors, the zone developer at the Thai border will attract Thais. For mine in Phnom Penh, we will work to attract everyone, Japanese investors, Thai investors, Singapore investors," she said.
Commerce Minister Cham Prasidh said the Phnom Penh zone is on track to become the second fully-operational special economic zone in Cambodia after the Bavet Zone on the Vietnamese border, which already has factories operating on it.
"I believe that garment factories will come first, followed by electronics companies," he said, before appealing to the Japanese ambassador to encourage Japanese firms to invest in the Phnom Penh zone.
Promising to create 100,000 new jobs, the zone developers also plan numerous blocks of town-houses and apartment buildings.
The Phnom Penh economic zone brochure promises investors that they will "receive the privilege of owning the land or building" and that unskilled workers will be paid at $40 a month—five dollars less than the garment minimum wage outside the zone.
Zephyr Co, created in 1994, has $113 million in market capital. Company materials indicate it is primarily involved in condominium sales in Japan.
3 comments:
$89 millions investment. $40/month x 100,000 jobs = $4 millions. $85 millions go to where? Husband is a Minister of Commerce who brought Japanese investors to his wife's company.. What a double standard. What does the opposite party say?
Why the fuck build something that most Cambodian can't even afford?
Is this another slave factory in the making? Oh! It touch my heart to hear that 100,000 new job will be created at a wage of $40 a month! And be realistic here, do you think that Cambodian people can rent or buy these town-house or apartments? Of course not!What can you do with $40 a month? This is a fucken allowance for small children! In Cambodia, drugs are so cheap that you can shoot yourself with drug all day and all night for $40! The happiest people on Earth are the people who are on drug! I am not surprise when tourists said Cambodian people are happy and friendly!ahahahah
That's all what you guys have mentioned earlier are not true at all. $89 Millions on investment is not for labor force alone, that is for like building infrastructure, telephone system... basically using for develop an empty plot of land to become a zone of industry.
Response to the 100,000 new jobs creation will not be all un-skilled workers. They mentioned very clear that only those un-skilled worker will be paid in this rate. Additionally, $40 is a kind of small amount of money, I agree to that but if you are looking at the zone objective are mainly to compete with the other zones in country as well as foreign country. Thus, those resources supply have to be more competent than others. $40 per month is small but if we are looking at the country economic data we are earning just about $1 per day, thus that $40 is reasonable price to be the first for start up for the zone to start it's operation.
Thanks
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