Japanese manufacturing giant, Toyota, has unveiled plans to invest more than $36 million after receiving clearance from the Council for the Development of Cambodia (CDC).
According to the CDC, Toyota Tsusho Manufacturing (Cambodia) Co., Ltd. has been issued an investment project registration certificate by the Special Economic Zone Committee of the CDC.
Toyota will construct assembly manufacturing, with an investment of $36.7 million and create about 150 jobs in the Royal Group Phnom Penh Special Economic Zone in Phnom Penh.
Hong Vannak, an economic researcher at the Royal Academy of Cambodia, said that Japanese investors are interested in Cambodia since the country has been peaceful for many years. Furthermore, Cambodia has natural benefits as there are no major natural disasters, which is a benefit for Japanese investors.
“Also, the cost of our Cambodian people’s workforce is low when compared to other workers in the region,” he said. “Our cost is affordable, making international investors interested in setting up factories.”
He added that the strong relationship between the Cambodian and Japanese governments is encouraging Japanese companies to invest in Cambodia.
As Toyota is a well-known firm, it will influence other firms, prompting them to be interested in investing in Cambodia. Other corporations may also contemplate expanding in the Kingdom, he said.
“This is what we desire. Aside from the more than $30 million investment, we have gained more reputation from a well-known Japanese company,” he said. “So, there will be more investment.”
“We know that having more goods and exports will contribute to economic growth in Cambodia,” he added.
On June 16, the Ford Motor Factory was officially established as Cambodia's first assembly facility. It was developed on more than 5 hectares in Pursat province, with a $21 million investment, and is estimated to produce more than 500 professional jobs and install around 9,000 automobiles each year.