Logo of Phnom Penh Post newspaper Phnom Penh Post - HGB Motors enters car assembly arena with $7M Poipet investment

HGB Motors enters car assembly arena with $7M Poipet investment

Content image - Phnom Penh Post
Workers of Japan's auto maker Fuji Heavy Industries assemble auto parts to the vehicle. HGB Motors Assembly Co Ltd is investing about $7 million in a car assembly plant in Poipet town, Banteay Meanchey province. AFP

HGB Motors enters car assembly arena with $7M Poipet investment

HGB Motors Assembly Co Ltd is investing about $7 million in a car assembly plant in Poipet town, Banteay Meanchey province.

The Council for the Development of Cambodia (CDC) on September 21 issued a final registration certificate for the facility, which is expected to create 165 jobs and is located in Poipet PP Special Economic Zone of the northwestern town on the Thai border.

While admittedly not aware of the specifics, Banteay Meanchey Provincial Administration director Chhoeun Krayong nonetheless said he welcomes the venture.

Cambodia Chamber of Commerce vice-president Lim Heng sees the project as a portent of heavy industry expansion in the Kingdom, noting that historically, most manufacturers have been considered light industry.

He explained that heavy industry revolves around larger products and characteristically involves stable and long-term investments, as opposed to light industry, where he implied that it is easier for investors to back out.

“In Cambodia we have the political stability and peace that inspires people to try their hand at investing in this type of industry,” he said.

He lauded the plant as a reflection that confidence in the Kingdom and the new investment law is motivating businesspeople to enter the Cambodian market.

“This project will also contribute to the growth of internal tax revenue, and hence more production, more investment, manufacturing enterprises, as well as more consumption of Cambodian raw materials, triggering an uptick in GDP [gross domestic product],” Heng said.

However, HGB Motors is not the first company to throw their hat into the post-civil war era automotive assembly ring.

RMA (Cambodia) Plc, which has a bond listed on the Cambodia Securities Exchange, announced that it was authorised by Ford Motor Co to build Ranger pickups and Everest SUVs, and is due to set up an assembly plant in Pursat province’s easternmost district of Krakor.

And a car assembly plant owned by Camko Motor Co Ltd opened in 2011 in the Koh Kong Special Economic Zone.

MOST VIEWED

  • Research key to Kanitha’s rep for expertise

    Sok Kanitha is used to weighing in on controversial issues using a confident approach that signals expertise and authority, and a recent video she made was no exception. Her “Episode 342: The History of NATO” video went live on January 16, 2023 and immediately shot to 30,000 likes and 3,500

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Knockout! Kun Khmer replaces ‘Muay’ for Phnom Penh Games

    Cambodia has decided to officially remove the word Muay from the programme of the 32nd Southeast Asian (SEA) Games 2023 in May. “Kun Khmer” will instead be used to represent the Southeast Asian sport of kickboxing, in accordance with the wishes of the Cambodian people. Vath

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • New int’l airport nearly half complete as travel industry returns to life

    Construction of a new airport that is slated to serve the capital has passed the 43 per cent completion mark, raising prospects for a proper recovery in the civil aviation and tourism sectors as international travellers return to the Kingdom in increasingly large numbers. The figure

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,