Cambodia may need another two decades to become car manufacturing country, possibly from 2040 or 2045.
This was confirmed by Mr. Soeun Dara, Executive Director of the Automotive Industry Federation of Cambodia. He said that it was in line with the government’s vision of making Cambodia a high-income country by 2050.
According to Mr. Soeun Dara, the momentum of new car use in Cambodia has completely changed, with used cars covering about 90 percent of the market and new models only 10 percent. But by 2023, the new car usage will increase to 45 percent, while used cars maintain a market share of 55 percent.
Although Cambodia does not have a local car factory, but many car companies are currently assembling cars in Cambodia. They are Ford in Pursat province, Kia Cambodia in Poipet of Banteay Meanchey province, ISUZU Cambodia in Kampong Speu province, and recently GTV. In mid-2024, Toyota will operate its company on the outskirts of Phnom Penh. Mr. Soeun Dara pointed out that these achievements are due to the fact that Cambodia has just approved a new attractive investment law in September 2021 and a roadmap for the development of the automotive and electronics sector by the end of 2022. After these two policies were adopted, Cambodia received a series of investments from foreign companies in the automotive sector. Oknha Khun Chantha, CEO of GTV Motor, said that the production or assembly of cars in the country helps the national economy.
GTV Motor launched a car assembled in Cambodia on February 3 and 4 for people to test the quality. The company claims that it is capable of making more than 30,000 units a year to meet domestic demand. Mr. Heng Sok Kong, spokesman for the Ministry of Industry, Science, Technology and Innovation, said at the launch and test drive of GTV that, in recent years the Cambodian automotive and electronics sector has developed significantly. Cambodia exported more than $ 200 million in auto parts and more than US$ 900 million in electronics by 2023.
According to the Roadmap for the Development of the Automotive and Electronics Sector in Cambodia, 20 initiatives have been identified, of which four priority initiatives are urgent and are being implemented. They include the establishment of an Advisory Council for the Vehicles and electronics development sector, locating special economic zones for vehicles and electronics, collaborating with the private sector to increase the skills of workers and improving logistics procedures.
By Faninn!
Comments