Logo of Phnom Penh Post newspaper Phnom Penh Post - $13.M e-bike plant planned for SEZ in Svay Rieng

$13.M e-bike plant planned for SEZ in Svay Rieng

Content image - Phnom Penh Post
A proposal for a $13.9 million electric bicycle assembly plant in Svay Rieng province was approved on Wednesday. PIXABAY

$13.M e-bike plant planned for SEZ in Svay Rieng

Leisger (Cambodia) Co Ltd plans to build a plant to manufacture electric bicycles, batteries and other components, in a special economic zone (SEZ) of the southeastern province of Svay Rieng.

The Council for the Development of Cambodia (CDC) on June 23 said it had approved a final registration certificate for Leisger Cambodia’s $13.9 million venture in “Sin Bavet Special Economic Zone”, and is expected to create 251 jobs.

Provincial deputy governor Ros Pharith said he welcomes all investment projects in the province, which he pointed out boasts notable trade potential as it borders Vietnam.

“We have not received this information yet, but we believe this investment will create more jobs for the people,” he said, ascribing this “achievement” as an “effort of the senior government leadership to attract foreign investors to Cambodia”.

“We will facilitate the provision of public services to them to serve the factory project,” Pharith said.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, previously noted that free trade agreements (FTA) with China and South Korea, as well as the Regional Comprehensive Economic Partnership (RCEP) agreement, will contribute to reeling in investment to the Kingdom.

“We will have more inflows of investors into Cambodia in the future,” he said.

The Kingdom exported $527.8 million worth of bicycles and spare parts last year, up by 27.78 per cent from 2019’s $412.49 million, and imported $8.38 million from Japan, China, Taiwan, Vietnam, the US and Thailand, down by 19.33 per cent year-on-year, according to Ministry of Commerce data.

While no figures were available for the number of bicycles exported in 2020, online trade publication Bike Europe reported that the Kingdom shipped out more than 1.42 million bicycles in 2017, up by nine per cent from 1.26 million in the previous year.

According to Bike Europe, Cambodia has become the leading supplier of bicycles to the EU since 2017, overtaking Taiwan, which held the position for more than two decades.

Ministry spokesman Seang Thay told The Post last month that the US, UK, Europe and Canada topped the list of buyers of Cambodian-assembled bicycles, followed by Japan, China, South Korea and ASEAN countries.

“There were three main factors driving Cambodia’s exports to continue growing earlier this year. First, Cambodian Minister of Commerce [Pan Sorasak] called on buyers to continue ordering goods from Cambodia.

“Second, we’ve developed buyer confidence. And third, Cambodia is one of the largest exporters of bicycles, with a wide market,” he said.

According to Thay, Cambodia has six bicycle factories – all based in Svay Rieng’s SEZs.

In 2019, the CDC approved $9.40 billion worth of investment projects, of which mainland Chinese investors accounted for $2.75 billion. Hong Kong ranked second at $912.55 million, while Japan took third with $298.84 million.

As of June 14, 6,164 businesses with over $2.6 billion in capital have been registered with the government’s online Business Registration Platform in just one year since its launch on June 15, 2020, according to the Ministry of Economy and Finance.

MOST VIEWED

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • PM urges end to ‘baseless’ international Ream base accusations

    Prime Minister Hun Sen urges an end to “baseless” foreign accusations surrounding the development of the Kingdom’s Ream Naval Base, as the US has consistently suggested that the base is being expanded to accommodate a Chinese military presence. Hun Sen renewed his calls while

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.