Factory and warehouse developer Ticon Industrial Connection Plc is looking to launch operations in Cambodia next year, after experiencing sluggish market growth in its home base of Thailand.
The company, which along with its subsidiaries currently runs 51 factories and warehouses with nearly 800 units, has already invested $20 million into expansion Indonesia and is also pursuing a foothold in Vietnam, according to Ticon CEO Lalitphant Phiriyaphant.
Lalitphant noted that factory owners are attracted by Cambodia’s low labour and operating costs, as well as a new US government program – the Generalised System of Preferences scheme – which allows Cambodian products to enter the US duty free.
“Cambodia is closer to Bangkok and Thailand’s eastern seaboard area when compared with Laos, Myanmar and southern Vietnam, which makes Cambodia very competitive at substituting Thailand’s manufacturing of labour-intensive products,” added the CEO.
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