2007.03.04 Ekonomist
Following the examples of Japan, South Korea, Malesia, Singapore and China there shines a new star from the far east. Cambodia has become an attraction point discovered by the biggest retailer companies such as Levi’s, GAP, Nike and Diesel. Now it is very common to see “made in cambodia” at the back of the products.
It’s turn for “Made in Cambodia” label after China
China, Vietnam, Thailand, Endonesia... the centres for manufacturing attracting the highest investment within the recent years. Now Cambodia has been added into this list. Cambodia has been newly discovered by the investors looking for alternative markets to China due to its development potential. Labour costs in Cambodia is one fifth those of China. In other terms around 30 US dollars. Annual growth rate is 8 percent.
Situated between Thailand, Vietnam and Laos, the country is regarded as the backyard of China. It is especially promising for the textile sector. Although textile giants such as Levi’s, GAP, Nike and Diesel have already moved most of their manufacturing to Cambodia, the country has not yet been totally discovered.
For the promotion of Cambodia in Turkey the prominent figure is Alphan Manas with its investment in technologies and futuristic identity. Manas went to Cambodia two years ago and believed that the country would be a second China in ten years time ; therefore, declared to the Cambodia Government that he wanted to be the honorary consulate for Cambodia.
Last year he was appointed to this position. Manas who also issues visas for Turkish citizens travelling to Cambodia, is now getting ready to welcome the Cambodian Government in Turkey together with DEIK and ITKIB soon. Manas also has a project for power station investment in Cambodia.
They are coming to Turkey
Cambodian Government is coming to Turkey soon to understand the potential especially in the textile sector and to attract investors to their country. Cambodian Minister of Foreign Affairs together with a committee will have meeting with DEIK and ITKIB in Turkey. This visit is planned for next month.
Countries such as China, Vietnam and Thailand are very popular for investment. However, investors are looking for alternatives to China which has becoming more riskier. Therefore it is anticipated that countries such as Cambodia, Laos will be very popular within the coming five years. Manas says ‘I believe the interest in Vietnam will be reflected on to Cambodia and even to Laos in the next five years. Because the costs has become the priority issue in textile business. Today Zara, H&M are the rising stars in Europe. The only possible way to decrease costs is to invest in such countries. The investors will be willing to lower their China risk.’
There are free-zones
He recommends two free zones for the investors; one in Sihanoukville on the border of Thailand and the second in Popipet region. These regions are very suitable for textile investment. In these days that the costs are the initial element in competition, it is anticipated that the spotlights will turn to Cambodia. Manas says ‘I noticed that some Nike products are manufactured in Cambodia. “made in Cambodia” period has been started all throughout the world. Especially companies like GAP, Levi’s have started to buy products from Cambodia in large quantities.’
We already told that Manas also issues Cambodian visas. According the information we received from Manas, an industrial company has recently asked visa for a group of 100 who will be travelling to Cambodia to investigate investment opportunities. Manas says that the number of investors asking for visa has increased when compared to last year.
High tourism potential
Although Cambodia is not developed in terms of industries, it is indeed a rather developed country in tourism sector with its 15 percent development rate. The biggest temple of the world with its 2.5 square km area Angkor Wat built by Indians and Buddhists in 12th century, attracts 1,5 million tourists every year. There are 20 five stars hotels in the country.
July has been eagerly waited when the Angkor Wat may be nominated as one of the seven wonders of the world. Because the people of Cambodia are certain that their Angkor Wat will be among the new wonders of the world.
Alphan Manas- is the honorary consulate of Cambodia
INVESTMENT
Recommended sectors
Agriculture
Animal breeding
Fishing
Food and food related production
Furniture and accessories
Paper manufacturing
Rubber and plastic production
Leather and leather products
Metal products
Manufacturing of transportation products
Manufacturing of machines and equipment
Hotel investments
RISING STAR
Short facts about today’s Cambodia
Geographical Location: Border with Southeaster Asia-Thailand Bay ; located among Thailand, Vietnam and Laos.
Ethnical Groups: An estimated 85-90 % of the population lives in rural areas. 90 % Khmer, 5 % Chinese and the remaining 5 % consists of Vietnamese and people of mountain tribes (Chams, Bhurmas)
Population: 13 million, 37% between the ages of 0-14 , 59.7 % between the ages of 15-64 and 3.1 % is over the age of 65.
Climate: Tropical and rainy. Dry season is between December and April, monsoon rains between the months of may-november.
How to travel: With THY indirect flight from Istanbul to Bangkok and then with Thai Airways Bangkok-Phnom Penh; or with Singapore Airlines from Istanbul directly to Phnom Penh.
Natural Resources: Oil and natural gas, wood products, precious stones, iron core, manganese, phospate, hydropower potential.
Religious Beliefs: 95 % Buddhist, 5% others
Languages: The official language of the country is Khmer and this language is spoken by 95% of the population. The other spoken languages, French as a second language and among elderly population Lan and among younger population English are spoken.