In a significant move towards boosting the local automotive industry, a new vehicle assembly factory has been launched in Cambodia through a collaboration between Japan’s Toyota Tsusho Corporation and the Cambodian conglomerate Kong Noun Group. Situated within the precincts of the Royal Group Phnom Penh Special Economic Zone, this venture aims to cater to the burgeoning market for new vehicles within the kingdom. The ceremony marking the opening of the facility was graced by the presence of Prime Minister Hun Manet.
This joint endeavor, christened Toyota Tsusho Manufacturing (Cambodia) Company Limited, has laid out an ambitious blueprint to achieve an annual production figure of 1,320 units by the year 2024. Initially, the plant will focus on assembling Hilux and Fortuner models, specifically tailored for the Cambodian automobile market. With an investment pouring in at an estimated $36.78 million over an expanse of nearly four hectares, the plant will be a workplace for 150 employees.
At the plant’s inauguration, Kashitani Ichiro, President and CEO of Toyota Tsusho Manufacturing (Cambodia), highlighted the milestone this venture represents for Toyota’s journey in Cambodia. “With the start of local production of the Toyota Hilux and Toyota Fortuner, we mark a new chapter in our journey in Cambodia,” Ichiro expressed.
Toyota’s foray into the Cambodian market initiated in 1993, over three decades of fostering a sustainable partnership with the Cambodian government, driving both expansion and substantial contributions towards the industrial domain of the nation.
Moreover, the venture not only seeks to further Toyota’s footprint in Cambodia but also aligns with broader objectives including supporting Cambodia’s endeavors towards achieving a carbon-neutral status and bolstering education in the region.
Prime Minister Hun Manet commended this venture as a pivotal juncture for Cambodia in assimilating automotive technology and fostering skill development among the youth. Envisioning Cambodia as a pivotal nexus for the manufacture of auto parts and electronic components destined for global markets, the Prime Minister accentuated the strategic significance of this step towards bolstering socio-economic progress across the nation.
“I extend my gratitude towards Toyota for their decision to embark on this investment journey in Cambodia,” stated the Prime Minister. Emphasizing the multifaceted benefits such as industrial diversification, modernization, and job creation, he recognized the assembly plant as an instrumental phase in the nation’s industrial revolution propelled by private sector initiatives.
Echoing the Prime Minister’s sentiments, Soeun Dara, Executive Director of the Cambodia Automotive Industry Federation, commended the government’s efforts in magnetizing Japanese automobile producers to Cambodia, thereby underscoring the latent potential of the local auto market.
The inauguration of Toyota’s factory is anticipated to serve as a magnet, attracting further investments and establishing Cambodia on the global map as a preferred destination for automobile manufacturing. Ueno Atsushi, the Japanese Ambassador to Cambodia, reflected on the transformative potential of the Toyota factory in advancing the manufacturing industry and attracting foreign investment. Meanwhile, Lim Heng, vice president of the Cambodia Chamber of Commerce, recognized this Japanese investment as a testament to Cambodia’s allure as an investment haven, poised for economic stability and growth.
This strategic collaboration between Japan’s Toyota Tsusho Corporation and the Kong Noun Group marks a significant stride towards rendering Cambodia a global hub for automotive parts and electronic components, reigning in a new era of industrial prowess and socio-economic development.
Source: Khmer Times
