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| Ground-breaking ceremony |
The firm has been importing transformers from Vietnam, but the US$2.5 million plant in the Phnom Penh Special Economic Zone will be able to produce transformers, which alter voltage for electricity transmission.
“This will be the first plant to manufacture transformers in Cambodia, and comes in response to the increasing demand and development of the Kingdom’s electricity sector,” he said.
“It will significantly contribute towards electricity used to serve the country’s production line and enhance the economy and standard of living in Cambodia.”
Nguyen Van Hong said that completion of the first phase would take four months, and THIBIDI would employ about 100 local labourers on the project.
One of the main incentives for THIBIDI to begin manufacturing operations in the Kingdom had been the success of the company’s products throughout Cambodia in previous years, board director Nguyen Hoa Cuong said.
“It is our first overseas branch, but the capital investment is not huge, so it is important that we continue to expand the branch in line with potential demand.”
The company is eyeing further expansion in Cambodia.
Construction of the plant reflected the surge in Vietnamese investment over recent years, due to the Kingdom’s favourable investment climate, Vu Thinh Cuong, commercial councillor of the Vietnam Trade Office in Cambodia, said.
“It is crucial to enforce and enlarge investment in the Cambodian market, while there is such an opportunity for Vietnamese businesses.”
Total direct investment from Vietnam given the green light by the Cambodian government increase 87 per cent to $156 million in the first six months of 2011, compared with $83 million worth of approvals granted during the same period of last year, according to previous statistics from the Cambodian Council for Development.
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