Cambodian, Hong Kong firms venture into economic zone in Phnom Penh

Cambodia's Worldbridge International and Hong Kong-based Kerry Logistics have jointly invested 100 million U.S. dollars in the establishment of a special economic zone (SEZ) in suburban Phnom Penh capital, a company representative said on Wednesday.

Speaking at a groundbreaking ceremony for the zone, Sear Rithy, president of Kerry Worldbridge SEZ, expressed his belief that the 63-hectare zone will attract a lot of foreign investors to invest in manufacturing industries when it starts business operations.

"The zone may create approximately 20,000 to 25,000 jobs when it is operational," he said, adding that the zone is situated on National Road 2, about 17 km south of central Phnom Penh.

Cambodian Commerce Minister Sun Chanthol said the establishment of the zone clearly showed investors' confidence in doing businesses in Cambodia.

"It will be a new production base for Cambodia," he said at the ceremony.

Cambodia initiated the establishment of SEZs in 2006. To date, the Council for the Development of Cambodia (CDC) has approved 33 SEZs, 11 of them are operational as the rest are under construction.

SEZs are mostly located along the country's borders with Thailand and Vietnam, and some are on the outskirts of Phnom Penh and in coastal Preah Sihanouk province, where the international ports are situated.

The government sees the SEZs as an important part to boost the economic development as they bring infrastructure, jobs, skills and enhanced productivity, according to the CDC.

Products produced in the zones include vehicles and spare parts, bikes, garment, shoes, pure drinking water, food and beverages, electric products, sugar and agro- products. Endi