The Council for the Development of Cambodia (CDC) has approved projects at a bigger number, jobs and amount of registered capital after the Royal Government of Cambodia (RGC) for the seventh legislature of the National Assembly was officially formed on August 22, 2023, the new Law on Investment was promulgated on October 21, 2021 and the sub-decree on the implementation of the law was issued on June 23, 2023.
According to CDC’s statement published on September 7, 2023, its Cambodian Investment Board (CIB) has approved ten investment projects totally worth $146.45 million proposed by investors who plan to employ more than 14,000 workers to operate their respective factory projects that will produce or manufacture different categories of goods in various locations.
The statement indicated that each of those investors has proposed for the approval of the issuance of the registration of their respective investment project worth at least $5 million individually, which is consistent with the new investment law and sub-decree on the law implementation that state that the CDC approves the projects worth $5 million or more.
The new Law on Investment and the Sub-decree on the Implementation of the Law on Investment also stipulate that the Municipal-Provincial Investment Sub-Committee (MPISC) is responsible for the approval of the issuance of investment projects individually worth less than $5 million, but the previous investment law said that CDC approved all types of projects.
The statement’s figures show that CDC has approved the investment project proposed by Cambodian Transmission II Co Ltd worth about $92.2 million to develop a substation and high-voltage transmission lines—230KV from Kampong Cham to Kratie province— and to create 464 jobs for local people. This is the biggest amount among the ten project values.
Hantang Yipin Leisure Products (Cambodia) Co. Ltd. has proposed for an approval for the issuance of a certificate of the registration of its investment project worth approximately $8.9 million to build a plant that will assemble and install furniture such as chairs and tables and related items in Por Angkrang commune of Baset district in Kampong Speu province. This company plans to recruit 3,618 workers to work at the plant, according to CDC’s statement.
Hantang Yipin Leisure Products (Cambodia) Co. Ltd. has proposed for an approval for the issuance of a certificate of the registration of its investment project worth approximately $8.9 million to build a plant that will assemble and install furniture such as chairs and tables and related items in Por Angkrang commune of Baset district in Kampong Speu province. This company plans to recruit 3,618 workers to work at the plant, according to CDC’s statement.
“To respond to the proposals submitted by those companies, the board has approved the issuance of the registration certificates for their respective investment projects,” the statement stated. Apollo Pet Products (Cambodia) Co. Ltd. has submitted its projects worth about $8 million to build a factory producing animal feeds and materials in Preah Sihanouk province.
Apollo Pet Products (Cambodia) plans to employ 1,126 workers to work at its proposed factory that will be located in Sangkat Muoy of Sihanoukville in the province, while Prime Storage Solution (Cambodia) Co. Ltd. has registered its investment capital of $5.8 million to build a factory that will produce home appliances to be made from types of processed metal.
Prime Storage Solution (Cambodia) plans to create 150 jobs for the local people to work at its proposed factory project that will be located in Raka Koh commune of Kong Pisei district in Kampong Speu province. Integrity Union Packaging Material Co. Ltd. plans to inject $5.7 million into its proposed investment project to build a packaging material production factory.
The project of Integrity Union Packaging Material, which plans to employ 537 employees, will also be located in Raka Koh commune of Kong Pisei district in Kampong Speu province. Xiangruifeng Packaging Technology Co. Ltd. plans to build a factory to manufacture papermade packaging items in its proposed project worth about $5.1 million and create 191 jobs. Xiangruifeng Packaging Technology’s proposed project will be located in Chaom Chao II commune of Por Senchey district in Phnom Penh city, while Neocambo Textile Co. Ltd. plans to invest about $5.4 million to build a garment factory that will be located in Kraing Thnong commune of Sen Sok district in Phnom Penh city and plans to create 2,759 employments.
Fonterig Garment Co. Ltd. has registered an investment capital of approximately $5.3 million to build a garment factory along the National Road 2 in Putsar commune of Bati district in Takeo province and plans to employ 1,686 workers, while Inspiror Bag (Cambodia) Manufacturing Co. Ltd.
Plans to build a bag-manufacturing factory with a registered capital of about $5.03 million and recruit 1,281 employees to work at the factory in Lomhach commune of Ang Snuol district in Kandal province.
Hongrui Bag (Cambodia) Co. Ltd. plans to build a factory to manufacture toy-styled bags and clothes for pets with a registered capital of approximately $5.02 million and plans to employ 2,540 workers to operate its factory that will be located in Trapaing Kong commune of Samraong Tong district in Kampong Speu province.
Prime Minister Hun Manet said at a gathering attended by over 18,000 factory workers in 18,265 workers from 14 from factories in Samrong Tong district of Kampong Speu province that this province has attracted about 385 factories that can employ nearly 160,000 employees that can expect salaries of approximately $31 million per month or $376 million per year.
“It is not magic to establish those factories, but government leaders, ministers and officials of all relevant ministries and institutions have done a lot of works on the sidelines of the main meetings to negotiate with partners and attract investors to come in to invest in our country with very satisfactory results and when they come in, our officials take care of them. If officials of this province cause difficulties for them, they would not come,” Prime Minister Hun Manet said.
… the delegation will promptly pick the potential investment opportunities at a maximum level in key industries …
On August 22 this year, Chea Vuthy, then Acting Secretary General of CDC, provided a warm welcome to an investment and business delegation led by Xu Shiwen, President of the Federation of Enterprises in Fuzhou city. Those investors run their businesses in mines, energy, heating and air-conditioned systems, tourism and hotels in Fujian province of China.
Those Chinese investors had visited Cambodia to get the most updated information regarding the new Law on Investment and relevant legal frameworks, according to another statement released by CDC. They had also explored potential business and investment opportunities in Cambodia as they have strong confidence on the new Cambodian government’s leadership.
At the discussion meeting, Vuthy highlighted the potential industries and investment activities as stated in the Article 24 of the new Law on Investment, which is the great opportunities for investors to invest in Cambodia to gain additional benefits and incentives that have been provided by the government and believed that the delegation will conduct a feasibility study.
Early last month, Vuthy also encouraged another investment delegation of 15 companies led by Boris Xue, President of Ningbo Chamber of Commerce who had paid their visit to Cambodia to learn the new Law on Investment, other relevant legal frameworks either, and especially potentials of investment and environment of investment in Cambodia.
“In this regard, the excellency believed that the delegation will promptly pick the potential investment opportunities at a maximum level in key industries in forms of direct investment or joint venture with local enterprises or partnership between the public and private sector to take the markets with essential potentials and strengthen bilateral partnership,” said Chea Vuthy.
Xue pointed out that the Ningbo Chamber of Commerce is strongly optimistic that the investment opportunities in Cambodia are potential and approximately 40 other companies will visit and explore the opportunities of investment in the country this year.
According to another statement released by CDC on August 30 this year, CDC has also approved another ten investment projects worth altogether nearly $60 million to build factories in different locations of Cambodia with plans to create nearly 12,000 jobs, after other 13 investment projects worth totally about $430 million were approved with plans to employ over 18,300 workers to operate their projects in mostly Kampong Speu province.
