South Korean agency pushes investment in auto-parts, tech

South Korean agency pushes investment in auto-parts, tech
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Commerce minister Pann Sorasak poses for a group photograph with Yu Jeoung-yeol, president of the Korea Trade and Investment Promotion Agency (KOTRA) right after their meeting in the South Korean funds Seoul on January 27. Commerce Ministry

YU Jeoung-yeol, president of the Korea Trade Investment decision Advertising Agency (KOTRA), stated he is encouraging more traders to do business in Cambodia, especially in the subject of car spare-components.

At a recent assembly in Seoul with a Cambodian delegation led by Minister of Commerce Pan Sorasak, Yu expressed his business perception that the Cambodia-Korea Absolutely free Trade Agreement (CKFTA) will enhance trade among the two international locations.

“Currently, additional than 200 South Korean providers spend in Cambodia, and we are performing to draw in a lot more, specially in car or motor vehicle parts as perfectly as timber solutions,” Yu claimed.

Sok Chenda Sophea, secretary-common of the Council for the Enhancement of Cambodia (CDC) who accompanied the minister, praised South Korean investors and strongly inspired them to contemplate investing in Cambodia as portion of the regional source chain.

“Korean investment decision in Cambodia in the earlier has not only brought considerably-essential cash and fashionable know-how, but also a potent spirit to prevail over hurdles,” he explained.

He added that the Kingdom has a favorable setting that makes it easy for Koreans to spend in the place. There are lots of possible positive aspects to these types of a offer, primarily the ailments of the CKFTA – which arrived into outcome on December 1 very last 12 months – and expenditure incentives below the framework of new investment legal guidelines, which were being launched in October, 2021.

Tan Monivann, vice-president of the Cambodia Chamber of Commerce, claimed South Korea is a major country in the fields of automotive and digital technologies, particularly vehicles, smartphones and other electronic items.

He included that the contact for expense arrives at a time when the federal government is making ready a roadmap for the growth of the automotive and electronics sectors, which is predicted to raise its potential exponentially in the coming many years.

“South Korea is a robust country in the subject of automobiles and electronics, as evidenced by the range of their cars and smartphones that we have imported. Until eventually not too long ago, South Korea was likely the most sophisticated country when it arrived to this technological know-how. Though China has caught up to them and possibly stepped a small in advance, South Korea stays sturdy in these areas,” he ongoing.

The govt accepted the formal roadmap for the advancement of the automotive and electronics sector in Cambodia on December 9 previous yr. As a result of this framework, it hopes to raise the export quantity in the automotive sector to about $500 million by 2027 and produce 10,000 new careers in the field.

Japan is at present the key resource of investment in the automotive sector in Cambodia, with seven vehicle assembly companies functioning in the region. The principal export marketplaces for their solutions are Thailand and Japan.

Cambodia will concentration on growing present opportunities to increase the production of labour-intense automotive components for export. These contain, among other people, electrical wiring looms, seats and straightforward electric and electronic sections for motorcycle assembly.