Cambodia is benefiting from new investment interest from Japanese companies facing violence and economic retaliation in China, the Asahi Shimbun reported.
“I receive inquiries three or four times a week,” Phnom Penh Special Economic Zone manager Hiroshi Uematsu was quoted as saying. “I have never received so many since I became managing director five years ago.”
The Japanese newspaper said Uematsu’s company was developing a new section of the industrial park that will expand the existing 90 hectares by 150 per cent.
“All lots in the new section will be filled by the end of next year,” Uematsu reportedly said. “I hate to say this, but the current situation in China has served as a tailwind for our company.”
The report said about 500 Japanese companies had discussed possible projects with the Council for the Development of Cambodia. “Half of the companies were manufacturers, 80 per cent of which were considering relocating from China,” it said.
Cambodia’s attraction is being fueled not only by cheap wages and an economy open to foreign investment but also improved highway links to Vietnam and Thailand.
“Land transportation has seen Cambodia, Myanmar and Laos included in production networks and their economies are taking off,” said Kengo Katsuki, vice president of Minebea (Cambodia) Co, the local subsidiary of the Japanese precision parts manufacturer. “‘Inland Asean’ is on the rise in the Indochinese Peninsula.”
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