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ROADMAPS DRAWN UP FOR AUTO, ELECTRONICS SECTORS
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The government has drafted official roadmaps for the development of the automotive and electronics sectors in Cambodia, to create more than 22,000 new jobs and raise exports past USD 2 billion over the next five years.
The draft roadmaps purpose is to accelerate the sectors investment towards reskilling and upskilling of workers, develop electricity and logistics infrastructure, improve cost-competitiveness in manufacturing, build a more effective customs and trade facilitation regime to ratchet up international trade, among other things.
The instruments are the result of joint efforts by the Council for the Development of Cambodia (CDC) and seven ministries, initiated in February 2021, according to CDC statement.
Development of the instruments was led by CDC, with support from the UK government’s Accelerated Covid-19 Economic Support (ACES) programme and in partnership with Boston Consulting Group (BCG).
The ministries involved in finance, land management, industry, commerce, labour, energy, and public works.
CDC secretary-general Sok Chenda Sophea said the drafting of the document “represents a commitment” by the government to ensure the effectiveness and comprehensiveness of the contained strategies, directions and mechanisms by drawing investment into the automotive and electronics sectors and increase the cost-competitiveness of their operations.
CDC chief emphasized that the cooperation with private sector is essential to the development of these sectors, from the development of joint strategies, to the introduction and implementation of action plans, with an aim of gathering additional input.
British ambassador underscored the huge potential opportunities of the Kingdom in automotive and electronics sectors.
It also highlighted the significant contributions that London has made to Phnom Penh’s management of the Covid-19 outbreak, including the provision of vaccines.
Cambodia Chamber of Commerce (CCC) vice-president Lim Heng described the draft roadmaps as “important blueprints” for underpinning economic growth for the Kingdom in the context of the digital industry.
The document, along with the new Law on Investment, will provide a more comprehensive set of incentives that encourages private enterprises to scale up output of raw materials – especially those used in the automotive sector – support the production of goods with higher value added, and trim associated costs.
“The government is encouraging the use of environmentally friendly vehicles, such as electric ones, and this roadmap will provide the wherewithal for connectivity to local and global value chains, and enable Cambodia to shift to higher value chain positions,” Heng said.
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