Cambogia, supplementary production base
Cambodia draws attention as supplementary production base for Thailand and Vietnam.
Foreign direct investment continues to boom not only at Phnom Penh but also at new regional center.
Reasons
Companies moving in PPSEZ
AEON, Densor (sensor parts for magneto), Nippon Seimitu Kikai
Tenants includes...
Japanese (35 mfrs, most are auto part mfrs), Taiwanese, South Korean, ASEAN companies
62 companies as of Sep 2013
In 2012, FDI in Cambodia outside its special economic zones totaled $2.28 billion.
top 3 are
FDI is increasing outside Phnom Penh
i.e. Japanese precision part maker Nihon Seimitsu decided to transfer all its production lines for low end products from Vietnam to Cambodia. It makes exterior watch parts (bands for Casio computer company's G-Shock wrist watch.
Advantages
Vocabulary
supplementary production base 生産補完拠点
Foreign Direct Investment 海外直接投資
suffer head winds 風当たりが強い
make one's way to へ向かって進む
industrial cluster 産業集積地
Magneto (electrical generator for motorcycles)
contingent (group)
underscore 強調する
low end 低価格
trunk road 幹線道路
labor intensive 労働集約的
division of labor 分業
Foreign direct investment continues to boom not only at Phnom Penh but also at new regional center.
Reasons
- 20-30% lower wage vs Vietnam (wage of Phnom Penh is half the level of Chinese coastal areas, a third of those in Bangkok)
- No tariff on exports to western markets as most favored nation status with US and Europe since 1996 (that's why sewing and shoes makers are so concentrated)
- End of long civil war in 1991 (Paris Peace Agreement)
- Cheap land (land cost of Bavet <outside special economic zone> is one fifth of Ho Chi Minh)
- Rising wages in surrounding nations
- Its consumer market is growing attractive
political situation
Companies moving in PPSEZ
AEON, Densor (sensor parts for magneto), Nippon Seimitu Kikai
Tenants includes...
Japanese (35 mfrs, most are auto part mfrs), Taiwanese, South Korean, ASEAN companies
62 companies as of Sep 2013
In 2012, FDI in Cambodia outside its special economic zones totaled $2.28 billion.
top 3 are
- South Korea
- China
- Japan
FDI is increasing outside Phnom Penh
i.e. Japanese precision part maker Nihon Seimitsu decided to transfer all its production lines for low end products from Vietnam to Cambodia. It makes exterior watch parts (bands for Casio computer company's G-Shock wrist watch.
Advantages
- Only 50km away from Ho Chi Minh city
- easily ship products to business partners in Thailand and Hong Kong
- Cheap industrial land (1/5 of near Vietnamese cities)
- Minimum monthly wage of $80 ($110 average in Ho Chi Minh city)
- Trunk road connecting Vietnam, Cambogia, Thailand (Southern economic corrido)
- Link to growing international division of labor progressing in Mekong region
- Hosting labor intensive factory operation (parts mfg)
Vocabulary
supplementary production base 生産補完拠点
Foreign Direct Investment 海外直接投資
suffer head winds 風当たりが強い
make one's way to へ向かって進む
industrial cluster 産業集積地
Magneto (electrical generator for motorcycles)
contingent (group)
underscore 強調する
low end 低価格
trunk road 幹線道路
labor intensive 労働集約的
division of labor 分業
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