Cambodia inviting for Vietnamese investors
VNE (Hanoi)
VietNamNet Bridge – While competition in many areas is fierce in the domestic market, some companies in HCM City have begun to approach a neighbouring market – Cambodia.
The Dong Thien Joint Stock Company has nearly stopped its business in Vietnam to focus on a sand exploiting project in Cambodia. Its branch in Cambodia has been set up already and will become operational this June.
Assistant to Dong Thien’s General Director, Nguyen Phuc Son, said that the VND20 billion (US$1.25 million) sand exploiting project in Cambodia was the biggest one of Dong Thien to date. The company can exploit up to 7,000 cu.m of sand each week to export to Vietnam.
“Sand in Cambodia meets Vietnam’s standards for construction sand. The local market is now short of this material so the market for sand is extremely large,” said Mr Phuc.
Only one hour by bus from HCM City, Cambodia has become an attractive destination for many companies in the city thanks to its low labour cost, spacious land, and open market.
Twenty-seven Vietnamese companies have opened branches, representative offices and invested in projects in Cambodia. This number is double compared to two years ago. Main fields for Vietnamese investment are health, agriculture, transport, telecom, and hydro power production.
The Ministry of Planning and Investment (MPI) has recently licenced the Saigon Trade Corporation (Satra) to form a joint venture with Sokimex Group to build big plants to process cashews and seafood, to breed cows and to build a supermarket in Cambodia.
Four travel companies, the Saigon Mekong Joint Stock Company, Saigontourist, Cho Lon Tourist, and Fiditour, have cooperated with Cambodian partners to bring tourists from HCM City to Phnom Penh and Siem Reap by land, air and water.
The US$10.5 million Cho Ray-Phnom Penh hospital project is underway, in which the Saigon Health Investment Joint Stock Company is contributing two-thirds of the capital and the remaining is coming from Cambodian partners. The representative office of this joint venture has been set up and is waiting for an investment licence from the Cambodian government.
However, investment in Cambodia still faces many difficulties. A project between the Viet Nga Infrastructure Investment Joint Stock Company and the Mong Reththy Group to establish a joint venture to build a road from the hub of Phnom Penh to Cambodia’s international airport in the form of build-operate-transfer (BOT) was canceled at the last minute because of some problems such as site clearance.
Nguyen Van Hung, representative of a rubber company in the southern province of Dong Nai which has a rubber growing project in Cambodia, also had to abandon his project due to problems associated with site clearance.
Deputy Director of the Department of Planning and Investment of the southern province of Tay Ninh, Tran Luu Quang, complained that even Vietnamese agencies caused problems for companies investing in Cambodia. He gave an example that many companies in Tay Ninh that want to grow cashews and cassavas in Cambodia but when they import cashews and cassavas to Vietnam as materials they face difficulties in customs formalities.
“Because of high import tax rates and no preferences, many companies are discouraged and leave their projects unfinished,” Mr Quang said. He said he hoped that relevant bodies like the Ministries of Trade and Finance and customs agencies would address these problems.
Source: VNE
The Dong Thien Joint Stock Company has nearly stopped its business in Vietnam to focus on a sand exploiting project in Cambodia. Its branch in Cambodia has been set up already and will become operational this June.
Assistant to Dong Thien’s General Director, Nguyen Phuc Son, said that the VND20 billion (US$1.25 million) sand exploiting project in Cambodia was the biggest one of Dong Thien to date. The company can exploit up to 7,000 cu.m of sand each week to export to Vietnam.
“Sand in Cambodia meets Vietnam’s standards for construction sand. The local market is now short of this material so the market for sand is extremely large,” said Mr Phuc.
Only one hour by bus from HCM City, Cambodia has become an attractive destination for many companies in the city thanks to its low labour cost, spacious land, and open market.
Twenty-seven Vietnamese companies have opened branches, representative offices and invested in projects in Cambodia. This number is double compared to two years ago. Main fields for Vietnamese investment are health, agriculture, transport, telecom, and hydro power production.
The Ministry of Planning and Investment (MPI) has recently licenced the Saigon Trade Corporation (Satra) to form a joint venture with Sokimex Group to build big plants to process cashews and seafood, to breed cows and to build a supermarket in Cambodia.
Four travel companies, the Saigon Mekong Joint Stock Company, Saigontourist, Cho Lon Tourist, and Fiditour, have cooperated with Cambodian partners to bring tourists from HCM City to Phnom Penh and Siem Reap by land, air and water.
The US$10.5 million Cho Ray-Phnom Penh hospital project is underway, in which the Saigon Health Investment Joint Stock Company is contributing two-thirds of the capital and the remaining is coming from Cambodian partners. The representative office of this joint venture has been set up and is waiting for an investment licence from the Cambodian government.
However, investment in Cambodia still faces many difficulties. A project between the Viet Nga Infrastructure Investment Joint Stock Company and the Mong Reththy Group to establish a joint venture to build a road from the hub of Phnom Penh to Cambodia’s international airport in the form of build-operate-transfer (BOT) was canceled at the last minute because of some problems such as site clearance.
Nguyen Van Hung, representative of a rubber company in the southern province of Dong Nai which has a rubber growing project in Cambodia, also had to abandon his project due to problems associated with site clearance.
Deputy Director of the Department of Planning and Investment of the southern province of Tay Ninh, Tran Luu Quang, complained that even Vietnamese agencies caused problems for companies investing in Cambodia. He gave an example that many companies in Tay Ninh that want to grow cashews and cassavas in Cambodia but when they import cashews and cassavas to Vietnam as materials they face difficulties in customs formalities.
“Because of high import tax rates and no preferences, many companies are discouraged and leave their projects unfinished,” Mr Quang said. He said he hoped that relevant bodies like the Ministries of Trade and Finance and customs agencies would address these problems.
Source: VNE
5 comments:
only ah pler allow others to abuse and take what ever Cambodia has.
Cambodia people have more plans than the Vietcong and AH HUN SEN Vietcong slave don't make it easy either for any Cambodian people to invest in Cambodia due corruption!
I remembered when the Vietcong invaded Cambodia in 1979, the Vietcong were walking in the park to a picnic table knowing that Cambodian population hate the Khmer Rogue gut like hell! Then the Vietcong began their so called 25 years Cambodian-Vietname friendship treaty and the Vietcong bagan to rob Cambodian people like hell!ahahahahhahahha
The Vietcong thievies put up their fucken check point everywhere in Cambodia and began to rob Cambodian people day and night until their fucken ass got kick out in 1989!ahahahhahhahha
In 2007, the Vietcong want to rob Cambodian people again by using the word "investment"! ahahhahahhah
After all these years of Vietcong investments, I would like to think that Cambodia as a country is going somewhere!!!You know what? Cambodia is actually going somewhere after all that is why AH HUN SEN Vietcong slave is passing a law to cut dirt poor Cambodian people salary!!!!ahahahhahahhahah
Million and million of dirt poor Cambodian people are waiting to be taken advantage of by the Vietcong and of course with AH HUN SEN Vietcong slave's permission!!!
Who care? we just want jobs, and if
you can do better, let us see some
samples; otherwise, just shut the
fuck up.
To 7:46AM!
I am not kidding! You really want a job for real? You tell AH HUN SEN Vietcong slave to pass anti-corruption law first! Have all the fucken laws in place to protect businesses and consumers alike!!!I will guarantee you that more Companies and businesses will flock to Cambodia due to cheap labor as it is!!! Now it is your turn to honor my request!!!
I know you can't honor my request anyway motherfucker and you need to shut the fuck up too!!!
Hey, the anti-corruption law would
have been done long ago, had you
guy stop destracting us from other
bullshits.
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