Thai company SVI inaugurates its first factory in Phnom Penh Special Economic Zone
Phnom Penh, 3rd March 2017 – The electronics manufacturer celebrates the inauguration of its first factory in Cambodia’s leading industrial estate. Construction work is to be completed by the end of the year.
The event was presided over by Mr. Pongsak Lothongkam, CEO of SVI Cambodia. Guests from the private banking sector, employees from SVI and key partners, including Phnom Penh SEZ top management, attended the event.
“SVI (AEC) is a subsidiary of SVI Public Company, listed in Thailand. Its business is called EMS, Electronics Manufacturing Service, with a global footprint in Thailand, Austria, Hungary and Slovakia. Our Cambodian operations, SVI (AEC) is the next footprint.” said Mr. Pongsak Lothongkam.
SVI AEC (ASEAN Economic Community) is to construct a brand new electronics component plant in the industrial park to produce digital security cameras designed for exporting to Europe. The company signed a 50-year lease in the special economic zone in July 2015 and aims to complete its first factory by the end of this year. Once finalized, the factory will first employ a workforce of 300.
“SVI will bring European high technology to invest in Phnom Penh Special Economic Zone, with a 57,000 Square meters facility. SVI will construct the first phase this year, with 15,000 Square meters. We plan to hire 5000-6000 employees for this facility.” said Lothongkam.
The new factory brings SVI’s investment in Phnom Penh SEZ to 3M$ today. The company is planning to expand is activities by launching an electronic products assembly, cable assembly and mechanical fabrication.
“We understand that SVI chose Cambodia because of its GSP (Generalized System of Preferences) merit and young labor forces. SVI plant in Bangkok already employs 750 Cambodian operators and they are performing quite well. SVI operation in Cambodia will become a good model to show that Cambodians are capable to produce high-tech electronics components.” says Hiroshi Uematsu, CEO of Phnom Penh SEZ.
Following Minebea’s third factory inauguration a few months ago, the industrial estate is confident that Thai investments in the zone as well as in its new subsidiary SEZ in Poipet have a real potential to spur growth in the near future: “We are targeting more Thai investors in accordance with their economic model of expansion in the region; increased trade flow between our two countries will attract more direct investment from Thailand. In addition, our upcoming Poipet PP SEZ is a great strategic location for Export-based Thai companies to relocate their production houses. Especially with its proximity to the Laem Chabang deep-sea port,” said Uematsu.
This latest signing highlights once more the attractiveness of the industrial estate to international investors, and its ability to bring a wide range of new industry sectors to the country. Phnom Penh SEZ contributes greatly to the diversification of the Cambodian economy. “Such industries have their own context and technical knowledge requirements. This will lead to a more diverse skill-set of our workforce and it is clearly fundamental to economic diversification,” said Uematsu.