The publicly-listed RMA Automotive, an authorised automobile distributor in Cambodia, inaugurated its subsidiary firm Ford Automotive Assembly Plant on Thursday in Pursat province. The plant will assemble over 1000 units in the first year of operation.
The $21-million plant is located in Kroko Special Economic Zone in Sna Ansa in Krokor district.
Lieutenant General Hun Manet, High Representative of Prime Minister Hun Sen, attended the inauguration.
Speaking at the event, Ngon Saing, chief executive officer of RMA (Cambodia) Plc, said that the company plans to assemble over 1,000 units in the first year of operation, and increase to 4,500 units during full operation.
The plant will assemble two models of Ford pickup – XLT and Wildtrack and the SUV – Ford Everest for the domestic market.
The price of the vehicles will be lower compared to the imported vehicles, Saing said.
“It may be more expensive than the imported [vehicles] because we spend more in investment, more in labor costs and transportation, but due to government incentives, the product will be cheaper than imported cars,” Saing said.
Gen Manet attributed investments in the plant to the firm confidence of investors in the country’s peace, stability, and economic potential, particularly incentives offered by the government.
“The operation of the automotive assembly plant reflects the stability, resilience and economic potential of Cambodia, especially in the context of the Covid-19 pandemic, which has affected the socio-economic situation at the global, regional and national levels,” he said.
“The achievements happening now are another proud achievement of an international company that entered the Cambodian market in 1992, expanding its business into many sectors and providing thousands of jobs to locals,” Gen Manet said.
Ford has many options in Southeast Asia… in Thailand, Vietnam, and in other countries, but the decision to invest in Cambodia is because Cambodia is not only a distribution market but also the investment destination for producing products for domestic supply… which is an important point,” he said.
“The fact that a giant company has decided to invest in this country is not a coincidence, it is a clear study of the politics, security and social stability and investment opportunities of the government of that country,” he pointed out.
Currently, there are 10 assembly factories that produce and supply vehicles to the domestic market and for export, according to data from the Ministry of Industry, Science, Technology and Innovation.
The total investment of the registered vehicle assembly plants amounted to $78.4 million.
The locally assembled vehicles are for the domestic markets and some will be for exports, the ministry stated.
Another automotive assembly plant under the ISUZU brand was announced recently in Kampong Speu province.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
