Denso, Japan’s leading global supplier of advanced automotive technology, is expanding its investment in the kingdom with a new factory that will cost $21.45 million.
The new plant will be built in the Phnom Penh Special Economic Zone (PPSEZ), where Denso already has factories, and is expected to create almost 400 new jobs.
As Cambodia’s infrastructure improves and labour costs remain relatively low, investment from Japan is bound to increase, Anthony Galliano, the founder and CEO of Cambodian Investment Management, recently told Khmer Times.
With proper guidance and the right policies, Cambodia can in upcoming years rival Thailand as a manufacturing hub, he said.
“Cambodia has a young, willing, and rapidly improving workforce, greater focus on infrastructure development and a very friendly and welcoming attitude towards foreign investment.
“We can become a potent manufacturing hub in the region,” he said. “However, investment in reducing electricity costs, lower logistic costs and more infrastructure development is needed for the industry to be scalable,” he said.
Denso (Cambodia) Co, Ltd was established in April 2013 in the PPSEZ and specialises in the production of a range of motorcycle components.