PM: Coalition Will Provide Stability For Cambodian Investors

The Funcinpec-CPP coalition will last at least 15 years and provide a stable political and business environment in which investors can confidently put their money, Prime Minister Hun Sen said Thurs­­­day.

The premier’s comments came during a ceremony to inaugurate a special 240-hectare export processing zone along the Cambodian-Vietnamese border in Svay Rieng pro­vince.

“We will continue to work to­geth­er for at least 15 years,” Hun Sen said. “The coalition will ensure that investment in Cambodia won’t face any risk in the future. In­vestors will never throw money away in war.”

A Taiwanese company, Manhat­tan Textile and Garment Corp, which is expected to invest $30 million in the zone, will run the new export zone, located in Bavet commune in Chantrea district.

Hun Sen said the zone should at­tract hundreds of factories and create about 15,000 jobs, with total exports of about $300 million.

Headed by businessman Cle­ment Yang, Manhattan will build roads, a sewage system, an electricity grid and other infrastructure, he said.

Hun Sen encouraged farmers in the area to sell their land so it can be included in the economic zone,  especially if they think they can’t profit from farming because of the ongoing drought.

“Some people say this kind of investment will lead to people losing their land,” he said. “We have to think. This area’s farmers can’t grow rice two times per year. Svay Rieng has no rain.”

Instead, he said if farmers sell the land to the site developers it will benefit them and the country more than if they keep their land for farming

“People who sell the farmland for the zone will benefit, if they do not enter into gambling,” he said. “People who have already sold the land, they can use that money to buy cheaper land.”

He said in other countries, people are encouraged to buy and sell land often because each transaction increases tax revenue for the country.

According to Council for the De­velopment of Cambodia documents released earlier this month, at least two Taiwanese companies have already expressed an interest in investing in the export zone.

Atlantic Cycle Co Ltd has registered to invest in a new bicycle factory in the zone expected to create 240 local jobs and have 48 foreign staff, and export to the US, Japan, Korea and European Union.

SYG Steel International (Cam­bodia) Co Ltd also plans to build a bolt factory that will employee 111 people and export to the European Union.

 

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