Cambodia is gaining traction with top Hong Kong business executives scheduled to join the city leader’s trip to the country as they look forward to more “aggressive” preferential policies from the country’s new Western-educated leader.
The financial hub’s business sector said on Monday it hoped a fresh direction under new Prime Minister Hun Manet would make the country a viable alternative manufacturing base to neighbouring Vietnam.
Lo Kam-wing, the president of the Chinese Manufacturers’ Association of Hong Kong and a delegation member, said he was keen to find out more about Cambodia and Laos as Vietnam has been a favourite destination for manufacturers that have moved production from mainland China.
He highlighted the “China Plus One” strategy, adopted by manufacturers to spread investment away from the country to boost supply chain resilience and minimise risks linked to the US-China trade war.
“Many of our buyers are now asking us to adopt the China Plus One strategy or else they would not place new orders,” Lo said.
“Our current approach is to keep core technologies as well as the research and developments on the mainland, while moving the production to these places [in Southeast Asia].”
Lo added Hong Kong manufacturers were interested in the more than 50 industry-specific economic zones set up in Cambodia, where labour costs are only about two-thirds of that in Vietnam.
Chief Executive John Lee Ka-chiu will lead a delegation of industry leaders to explore business opportunities in Cambodia, Laos and Vietnam next week.
Phnom Penh, the Cambodian capital, is among four cities on the six-day itinerary.
“Cambodia has great potential because its political situation has been very stable in recent years, the use of US dollars is common there, and it offers the most abundant preferential policies among these three countries,” Lo said.
Source: SCMP
