by Mr. Bee
Phnom Penh: Sailun Group is considering setting up a plant to produce tyres for passenger vehicles in Cambodia, according to Tyrepress.
According to a feasibility study published today, the Chinese tyre maker is interested in building a facility within the QiLu (Cambodia) Special Economic Zone in Svay Rieng Province that is capable of making five million semi-steel radials a year.
Sailun estimates the project will require an investment of 1.18 billion yuan (£130.5 million or approximately $180 million).
Mr. Lim Heng, vice president of the Cambodia Chamber of Commerce, told propertyarea.asia recently that Cambodia is an attractive investment destination for a lot of international investors.
“We have our strengths and our special points. Only bilateral free trade agreements with China have a large scope to attract many international companies, especially US companies, to invest in Cambodia to export their products to the Chinese market with duty-free and there are many profit opportunities,” he said.
“The trade war between the United States and China has become a pressure for some American companies to export goods and manufactured products to the target markets of China,” he added. “Therefore, when Cambodia is given preferential tariffs on exports to the Chinese market, the companies that are under pressure will definitely consider relocating their production locations to Cambodia.”
In addition, Cambodia is ready to sign agreements with other countries such as Korea, Japan, Australia and India, not including the RCEP trade agreement, which is the world’s largest market.
Mr. Lim Heng stated that although Cambodia has lost 20% of the preferential tariff system from the European market, but Cambodia has received GSP from the United Kingdom and through the United Kingdom will continue to bring Cambodian goods to distribute into the same European market, so Cambodia remains unaffected.
“Normally, when more international companies come in to invest, Cambodia generates income,” he said. “We think of it as a service provider, when they come in, they need a location, they need a transport service, as well as a manpower, all of which are beneficial and we can get new technical knowledge from those international companies as well.”
by Mr. Bee