Japanese automaker Toyota is gearing up to complete its nearly $40 million state-of-the-art vehicle assembly plant in the Royal Group Phnom Penh Special Economic Zone by July and the production may also start soon, according to available information.
With the construction of the plant to be completed in July, this would further boost Cambodia’s growing appeal as an investment destination, said the website construction-property.com.
During a gathering with workers in the Royal Group Phnom Penh Special Economic Zone on May 26, Prime Minister Hun Sen highlighted the attractiveness of Royal Group SEZ to bring in investments, especially foreign direct investment (FDI). Several foreign companies have already invested in the zone.
According to the website, the Prime Minister said that the plant will commence production in July.
It was on September 8, 2022, that the Council for the Development of Cambodia (CDC) granted approval for the Toyota vehicle assembly plant project having an estimated investment of $36.7 million. It is also significant that the plant is being completed in under a year and it is expected to generate nearly 150 direct jobs.
According to a statement by Toyota Tsusho Corporation in November last year, it established the vehicle assembly company Toyota Tsusho Manufacturing (Cambodia) Co., Ltd., (TTMC) in Cambodia with an investment of $36.8 million.
The plant, it said, would locally assemble Toyota Hilux pickup truck and Toyota Fortuner SUV. The project was an initiative based on the ‘MoU on Cooperation for the Development of the Automobile Industry,’ signed between the Government of Cambodia and Toyota Tsusho as part of the ASEAN-related Summit held from November 8 to 13, 2022 in Phnom Penh.
The MoU was signed by Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance of the Kingdom of Cambodia, and Toshimitsu Imai, Vice President of Toyota Tsusho.
Meanwhile, a Ministry of Industry, Science and Innovation count showed that there are 10 vehicle assembly units in Cambodia as of last year with a total investment of over $78 million.
While four are located in a special economic zone in Banteay Meanchey province, two are in Phnom Penh, two in Svay Rieng province and a factory each in Koh Kong and a Preah Sihanouk province.
Three factories are Japanese carmakers while the other two are from Thailand, three from China, one from South Korea and one from a local company.
According to a report by the ministry, some 644 jobs were created for local people by these automakers.
The launch of the Toyota assembly plant, meanwhile, will usher in a new era of technological advancement and employment opportunities, cementing Cambodia’s position as a dynamic hub for automotive manufacturing.
Over the years, several international vehicle manufacturers have evinced interest in setting up production units in Cambodia, considering its strategic location in Southeast Asia and also because of its favourable investment climate.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.