Universal Alliance Co. Ltd. – a corporate advisory and consulting company that facilitates international business and investment in Cambodia – and the Logistics and Supply Chain Business Association in Cambodia (LOSCBA) signed a Memorandum of Understanding (MoU) on “Business Networking & Partnership Cooperation” on February 17, 2024, at the Universal Alliance office.
The MoU signing took place between Eric Lim, CEO of Universal Alliance, and Chea Chandara, President of LOSCBA, and was attended by Universal Alliance company staff and key members of LOSCBA.
“I think the very important thing for all of us here today is business partnerships and networking, which is why Mr. Chea Chandara invited all of you to be a part of something which I feel is going to be really beneficial not only to us, but also Cambodia in general,” said Lim while addressing the audience in his opening remarks.
How Will LOSCBA And Universal Alliance Mutually Benefit From This Partnership?
Providing an overview of what forms of support Universal Alliance can offer LOSCBA through this new partnership, Lim shared that the company has two subsidiaries, Advantage and Engage, which work in media publishing and event planning respectively. Through these subsidiaries, LOSCBA members can benefit from advertising opportunities (particularly through Advantage’s ‘Cambodia Business’ magazine) and from taking part in upcoming events and exhibitions organised by Engage, which also offer a valuable networking opportunity.
Regarding this latter point, Lim shared that Engage will soon be organising the next edition of its ‘Best Buy’ exhibition, which started in 2017 and grew to become “the most visited exhibition in Cambodia”. He explained that this year’s event will be called ‘International Best Buy 2024’ as international companies, particularly those from Thailand, will prominently feature.
Lim believes that LOSCBA members getting a chance to meet and connect with these Thai businesses seeking to enter the Cambodian market will help to attract more investment and further develop the logistics industry.
Both Lim and Chadara spoke with B2B Cambodia after the signing ceremony to further highlight the significance of the MoU.
“We met with Universal Alliance and talked to them about what they do, and [we found out] they are arranging an exhibition and trade fair featuring businesses from other countries in Cambodia,” said Chandara. “I think what they do is really good for our country, as their business [teaches] how to attract investments and how to do commerce and trade [in Cambodia].”
We want to bring our [LOSCBA] members to become a part of [Universal Alliance’s network] and allow our members to meet each other, and if, for example, [Universal Alliance’s network] needs some logistics support, like in transportation, ocean freight or air freight, we can provide that support, so that is why we have come here to sign this MoU.
“We, as part of the private sector, are bringing quite a number of investors into the country, either to set up operations or become involved in import and export trade, so the objective of this MoU was to help LOSCBA by, I would say, improving their business network with potential overseas investors,” continued Lim.
“Most of the companies coming into Cambodia today, selling products and services, require logistics, freight, transportation, and quite a number of things. So that is the reason why we have this MoU here today: to seek better cooperation between the association, the members, and from our side, with the overseas companies coming into Cambodia,” he concluded.
Cambodia’s Growing Logistics Industry
Both parties stated that this partnership comes at an opportune time, as Cambodia continues to advance its logistics infrastructure, including the construction of new roads, rail lines, and the expansion of the Sihanoukville deep sea port. These efforts, along with the country's strategic position in Southeast Asia and its membership in the Regional Comprehensive Economic Partnership (RCEP), position Cambodia as an attractive destination for international trade and investment.
“What we're seeing is the government of Cambodia is trying to develop [the country] a lot,” said Chandara. “We can see [this through the development of new] infrastructure like new roads, expressways, the plan to build an expressway connecting Phnom Penh, Siem Reap and Poipet, the plan to build a railway to and from Bangkok… the construction and expansion of the Sihanoukville port… the new [Phnom Penh] airport, which I saw is now over 60 per cent already constructed, and [the new infrastructure on the river]… All this new infrastructure will make more investors come to Cambodia and help improve the economy, then making it even more possible and easy for investors to come and invest.”
Lim added:
I think transportation and logistics has improved greatly over the last [few] years. Over the next 10 to 20 years, I believe logistics operations will really pick up. Cambodia is primarily an export destination, especially for agriculture-related products. I believe that transportation is key as the government tries to improve its road infrastructure and rail infrastructure as well. Together with air, I believe there will be significant savings. There will be, also, a significant effort from companies outside of Cambodia actually coming in and investing in Cambodia as well.
Both organisations affirmed that ongoing infrastructure improvements and increased international collaboration makes Cambodia well-placed to elevate its standing in the global marketplace, particularly in the regional supply chain.