Thursday, May 01, 2008

PPSEZ hopes to attract elusive Japanese investment

Thursday, 01 May 2008
By Soun Sophalmony
The Mekong Times

... only the Svay Rieng special economic zone is currently in operation. The others are in the process of construction or seeking investors ...
The Phnom Penh Special Economic Zone (PPSEZ) yesterday celebrated the completion of its first phase, with officials predicting the free investment area will employ as many as 100,000 and attract investment from Malaysia, Taiwan, Korea and, crucially, Japan upon completion, scheduled for three years time.

Finance and Accounting Director Hiroshi Uematsu said that PPSEZ, a vast joint-venture between Cambodia and Japan, will cost US$90 million to build and cover some 360 hectares. It is located some 18 km from Phnom Penh on National Highway 4.

Lim Chhivhoo, a director of local firm Attwood Import Export and the PPSEZ, confirmed that Cambodian interests own 51 percent of the zone and Japan the rest. “The first phase cost the two parties around US$15 million each and another US$30 million will be needed both for the second and third phases,” she said.

The sprawling site will boast its own electricity network, treated water and sewage systems, an Information and Communication Technology system and a dry port, said Rikuo Katsumata, PPSEZ’s engineering director. “There will be shoe factories, garment factories, carton-manufacturing factories, and motor-manufacturing factories from Malaysia, Taiwan, Korea, and especially Japan,” he added.

Though it contributes a large proportion of Cambodia’s international aid, Japan has traditionally lagged far behind other Asian nations in terms of investment. Figures from the Council for the Development of Cambodia released in February show it invested just US$135 million since 1994, while China poured in over US$1.7 billion and South Korea US$1.5 billion.

“PPSEZ will employ a lot of Cambodians and promote the country’s economic growth. Similar zones have had this effect in Japan,” said Lim Chhivhoo. “It will produce a variety of goods to meet domestic demand and could reduce imports of spare parts from foreign countries such as Thailand.”

Hiroshi Uematsu said that Cambodia is now an up-and-coming investment destination for Japanese businessmen, adding that the PPSEZ has been established with a view to easing their entry into the Kingdom. However, he said critical work remains if Cambodia is to attract investors from the Far-eastern nation, as Japanese are also looking at Myanmar.

“Cambodia should improve its infrastructure and its links to neighboring countries,” said Uematsu. “The Royal Government of Cambodia also has to pay attention to transparency and business registration by investment companies, and customs laws.”

Independent economic analyst Sok Sina said Cambodian need not fear competition from Myanmar.

“We do not have to be scared that Japanese investment will flow into Myanmar as Cambodia is better placed in terms of politics, democracy, and laws,” he said. “If Japan turns to Myanmar, it might be due to [low] costs or natural resources rather than political issues.”

Since 2006, the Cambodian government has authorized private companies to establish 19 special economic zones across the nation – in Phnom Penh, Sihanoukville, Koh Kong province, Poipet (Banteay Meanchey province), and Kompong Cham, Kampot, Takeo, Kandal and Svay Rieng provinces.

However, only the Svay Rieng special economic zone is currently in operation. The others are in the process of construction or seeking investors.

6 comments:

Anonymous said...

Yes, trading zone will created hundreds of thousands of jobs during the project. It will be great if we can go any faster than what the project is scheduled for.

Anonymous said...

ur mom ur dgther u can sell 2:11pm to me how much ? i kno u need money b/c u r pooor & low life.

Anonymous said...

Why should I do that when there are plenty slaves like Ah Khmer-Yuons that can be sold.

Anonymous said...

japan, please don't be afraid to invest in cambodia. cambodian people love you and we want your business skills, your style of economy, your expertise, etc to help cambodia to grow and develop like the rest of the developping world. khmer-nippon friendship and partners forever!

Anonymous said...

The Japanese would rather invest in Vietname or Thailame not to offend China! ahhahahahhahah

The fact is the Japanese would never invest in Cambodia!

Anonymous said...

don't be afraid, japan, it is ok to invest in cambodia. china and others won't bite. if cambodia is open to one, it is also open to other like japan, the US, EU, etc. we just don't want too many thai or viets investments, that's all. that's because we have preferences and thailand and vietnam we are not so fond of, however if you are not thai or viet, then there is nothing to worry about. cambodia tend to encourage all countries to invest in cambodia, the long they waited , prices might go up, you know as cambodia do not stay put forever. thank you.