January 13, 2012

Hyundai to boost auto production

[PHNOM PENH POST]

HYUNDAI Motor Company will increase production  at its assembly plant in Koh Kong province by more than 160 per cent during the next two years, Lim Visal, director of Hyundai’s Cambodian assembler, Camko Motor Company, says. 

The increase had followed Hyundai’s anticipation of Cambodia’s and ASEAN’s rising demand for cars in the near future, Lim Visal said. 

“The Cambodian market will see a quantum leap in the next four to five years once we reach a [gross domestic product] per capita of US$2,000, and car loans become more affordable,” he said in an email yesterday.

Hyundai’s Koh Kong factory began  assembling cars in January last year. It produced 300 vehicles in 2011 and aims to nearly triple its annual production to 800 cars in 2013.

Although the Kingdom has long produced its own motorcycles, domestic car assembly and production is relatively young.  Lim Visal is optimistic, however, that the economy will continue to support a higher level of manufacturing.

“Development is about moving from low-value-added to high-value-added industries. Comparative advantage is dynamic, not static,” he said. As production costs rose in countries such as China, Thailand and Vietnam, more companies would relocate to Cambodia, he added.

Chanchal Singh, facility manager of Auto Sales Cambodia, said auto corporations were attracted to invest in assembly plants in Cambodia for the apparent tax benefits.

The public would also welcome the job opportunities presented by what were often large-scale investments, Singh said.

Several car manufacturers had expressed investment interest in Cambodian assembly plants but government red tape had stymied some of their plans, he said.

“Stringent government regulations have made it difficult for certain companies and have hindered the process,” Singh said, although he declined to name the companies that had shown interest in the market.

Conditions in Koh Kong’s Special Economic Zone – where the Hyundai plant is located – could be more attractive, he said.

Lim Visal said:  “The government has been welcoming [companies] with open arms by encouraging [Special Economic Zone] development.”

Logistics costs to and from Koh Kong were considerably lower than other areas of the country due to its proximity to Thailand, Jo Young-dae, director of operations at Camko Motor Company, said in November.

The cost of importing parts via Thailand was nearly half that of shipping through the Sihanoukville Port, he told the Post.

Auto sales were up last year in Cambodia.

Year-end reports revealed that many dealerships in Cambodia, including RMA Co, a local importer of Ford and Chevrolet motor vehicles, had surpassed their 2011 sales targets.

7 comments:

  1. Hi there, I found your web site by means of Google

    while looking for a comparable matter, your web site got here up, it appears

    great. I have bookmarked it in my google bookmarks.


    my blog post ... alicante hotels near beach
    Review my weblog 2012 calendar october with holidays

    ReplyDelete
  2. Hi, i think that i saw you visited my website so i came to “return the
    favor”.I'm trying to find things to enhance my site!I suppose its ok to use some

    of your ideas!!
    Feel free to visit my web-site http://www.thespainforum.com/f286

    ReplyDelete
  3. Magnificent goods from you, man. I have understand your stuff previous to and

    you're just extremely fantastic. I actually like what

    you've acquired here, really like what you're saying and the way in which you

    say it. You make it enjoyable and you still care for to keep it smart. I

    can not wait to read much more from you. This is actually a wonderful site.

    my blog post http://nude.xitti.com/link/1336
    My web-site : warts on inner thigh

    ReplyDelete
  4. Great paintings! This is the type of info that
    are supposed to be shared around the web. Shame on Google for now not positioning
    this publish higher! Come on

    over and seek advice from my web site . Thank you

    =)
    Review my web-site : armsoc.org

    ReplyDelete
  5. Admiring the persistence you put into your

    blog and detailed information you provide. It's nice to come

    across a blog every once in a while that isn't the same unwanted rehashed material.
    Fantastic read! I've bookmarked your site and I'm including your

    RSS feeds to my Google account.
    Stop by my web blog ; ubuntu-indonesia.com

    ReplyDelete
  6. Hey very nice blog!! Man .. Beautiful .. Amazing
    .. I will bookmark your

    site and take the feeds also…I'm happy to find numerous useful

    info here in the post, we need develop more techniques in this regard, thanks for

    sharing. . . . . .
    Here is my webpage - marenvargas.blogspot.co.uk

    ReplyDelete
  7. Hello There. I found your blog using msn. This is a really well written article.

    I’ll

    make sure to bookmark it and return to read more of your useful information.
    Thanks for the

    post. I’ll definitely comeback.
    Feel free to visit my website :: awsnow.org

    ReplyDelete