Post on 14-Jun-2020
Date: Jul. 13, 2017
By James Chang
Visiting Report
TAIWAN EDUCATION/EMPLOYMENT PROGRAM(CTEP) to
PHNOM PENH SPECIAL ECONOMIC ZONE(PPSEZ)
Kingdom of Cambodia
With the realization of ASEAN Economic Community (AEC), ASEAN has been characterized by free movement of goods, services, and investments as well as free flow of capital and skills. Cambodia, strategically located at the center of ASEAN, gets the most attention due to its openness of economic policy, positive demographic dividend with 70% youth labor, and average GDP growth over 7% in the past decade. It envisions Cambodia as a single market and production base, a highly competitive nation, with equitable economic development, and fully integrated into the global economy.
Phnom Penh
Conveniently located in the intersection of East-West Economic Corridor, Phnom Penh Special Economic Zone (PPSEZ) provides several forms of tax preferences and generous investment incentives without various monetary restrictions. With the development of Phnom Penh, extremely high economic growth and large youth workforce has been driven. The most important of all, wide range of trade preferences offered to Cambodia's export products ensures a suitable business community which draws investments from throughout the world.
Phnom Penh Special Economic Zone
PPSEZ Fundamental Construction in Three Phases: (Overall Project Size: 357.3 Ha)
Phase I (137.9 Ha) has been completed all the construction with occupancy rate about 95% since April 2008.
Phase II (161.6 Ha) started operation of construction with occupancy rate almost 90% since January 2011.
Phase III (57.8 Ha) started soil back filling work from May 2015.
Advantageous location:
Only 8 km west of Phnom Penh International Airport
Only 18 km from Phnom Penh's city center
Easy access to Phnom Penh River Port
Located along highway No. 4 connecting to Sihanoukville, Cambodia's main sea port
Phnom Penh Special Economic Zone
Phnom Penh Special Economic Zone
Comprehensive and high-standard infrastructure: Independent power plant for emergency supply
Independent water supply system(Capacity - 14900 CBM per day)
Waste water treatment facility(Capacity - 4500 CBM per day)
Dry port facility - import / export transactions for zone investors(Bok Seng PPSEZ Dry Port Co., Ltd.)
Phnom Penh Special Economic Zone
"On-site, one-stop" services in partnership with relevant government authorities:
Council for the Development of Cambodia (CDC)
Cambodia Import Export Inspection & Fraud Repression Department (CAM-CONTROL)
The Custom and Excise Department
The Ministry of Commerce
The Ministry of Labor and Vocational Training
Phnom Penh Special Economic Zone
Other on-site services provided by Phnom Penh SEZ:
Investment Application (incl. QIP)
Import / Export permits
Custom Clearance procedures
Issuance of Certificate of Origin
Work Permits / Labor Support
Assist in reconciling labor dispute
99
Board of
Directors
Investor
Relations Dept.
Chief Financial
Officer
Chief Executive
Officer
Lok Chumteav Oknha Lim Chhiv HoNon-executive Chairman
Mr. Fong Nee WeiChief Financial Officer
Mr. Hiroshi UematsuChief Executive Officer
Phnom Penh Special Economic Zone
Management
Structure
Phnom Penh Special Economic Zone
PPSEZ Customers Manufacturer
Phnom Penh Special Economic Zone
PPSEZ Customers Non-manufacturer
14Nations in
Management Team
99Staffs in
Management Team
80%Proportion of
Female Workers
17,000Total Workers
Per Day
55%Of Investors are Japanese
82Tenants of
Phnom Penh SEZ
Phnom Penh Special Economic Zone
PPSEZ statistics
Phnom Penh Special Economic Zone
Tax Incentives for Qualified Investment Project (QIP)
Import duty exemption on construction materials and production equipment
Import duty exemption on production materials for export industry
Export duty exemption
Profit Tax Exemption for up to 9 years
Other benefits
Equal market access for foreign investors
50 years lease of land available to foreign investors (renewable and transferable)
Unrestricted currency exchange and fund transfer
Labor management support
Cooperation in recruitment of workers and factory staffs
Assist in reconciling labor dispute, organize events in order to manage and attract labor effectively
Build canteen and dormitories to recruit workers more easily
Maintain close relationship with local authorities to establish employment promotion network, support labor and vocational training
Phnom Penh Special Economic Zone
Phnom Penh Special Economic Zone
PPSEZ is planned and operated by Japanese management team. More than 50% of the leaseholders in the zone are Japanese companies.
Numerous world-renowned corporations such as Coca Cola, Ajinomoto, Sumitomo, Toyota, Denso, Minebea, etc., are settled in PPSEZ.
PPSEZ is strongly supported by Cambodia government, Phnom Penh SEZ Administration Office (One Stop Service Center) has started operation since September 2008.
Several forms of tax preferences and generous investment incentives are provided in PPSEZ, while currency exchange and fund transfer are unrestricted.
PPSEZ is one of the only five companies listed on Phnom Penh Stock Exchange.
Phnom Penh Special Economic Zone
Reduce Logistic Cost and Improve Convenience
Logistics costs remain high compared with those in neighboring countries, especially the customs clearance.
Reduce Electricity Cost
The price of industrial electricity still have competition gap with those in neighboring countries. The average electricity price in PPSEZ is 0.1868USD/KWh, while in Vietnam is 0.08USD/KWh, and 0.08USD/KWh in Myanmar.
Promote Labor Education
Labor productivity should obtain further balanced with wage increased rate. In 2017, Cambodia’s basic wage achieves 153USD/month, demand for skilled labor will only increase and it’s necessary to improve the education sector to satisfy this demand
Phnom Penh Special Economic Zone
Assumed the zone which 82 companies are settled in had been nearly completed its development before visiting, it’s quite a surprise that numerous companies are still in the early stages of their operations while touring around the zone.
Despite the infrastructures such as power plant, water purification plant, sewage treatment plant, and dry port are finished, lots of plant areas are covered with grassland.
It’s expected to create large potential that investment expanded by tenants to seek higher projected sales and operating profits in the foreseeable future.
POI PET PPSEZ
A new Special Economic Zone (SEZ) has also been introduced by Ms. Zhao, Senior Manager of PPSEZ management team while visiting.
Approximately 6 km east of the Poipet city center, Poipet PP SEZ is strategically located near the Cambodia-Thai Border.
As a new hotspot in inter-ASEAN business flows, major infrastructure in POI PET PPSEZ is expected to be completed in 2017.
With the potential of the “Thailand-Plus-One” strategy, Poipet PP SEZ is going to be an important knot along the Hoh Chi Minh - Phnom Penh - Siem Reap - Bangkok route.
Poi Pet PP Special Economic Zone
Poi Pet PP Special Economic Zone
Phnom Penh Special Economic Zone
Summary above, Phnom Penh Special Economic Zone (PPSEZ) has turned itself into a developing focus of Indochina based on its strategic location and developer’s discretion.
Along with the price of electricity and logistics costs getting steady, PPSEZ would further have great potential to become an economic center of ASEAN due to its well-organized management and fully-equipped facilities.
It’s believed that after Cambodian General Election in 2018, PPSEZ is bound to get more competitive and great promotion by connecting several SEZ of neighboring countries in series.
Date: Jul. 13, 2017
TAIWAN EDUCATION/EMPLOYMENT PROGRAM(CTEP) to
PHNOM PENH SPECIAL ECONOMIC ZONE(PPSEZ)