A statement released by the CDC (Council for the Development of Cambodia) said that an assembly plant worth $36.7 million in Phenom Penh would be built by the name of Toyota Tsusho Manufacturing (Cambodia) Co Ltd. The registration of the investment project has been approved by CSEZB (Cambodian Special Economic Zone Board).
The statement also said that Toyota would hire 150 workers to run its new assembly plant listed in the public listing of Royal Group PPSEZ (Phnom Penh Special Economic Zone) that sits beside National Road 4, about 4 kilometers from Phnom Penh International Airport. The paperwork and other handicrafts for the registration of the manufacturing plant will be done in approximately three days, the minimum being a week for approval by the CDC.
After it is done with the procedure, the approval application is passed down to the digital system, which then delivers it to the ministry of the automobile sector. Not only is this Japanese automaker assembly plant the only one being established in the Kingdom of Cambodia, but the plants of other leading brands, such as the Ford automakers, are also being established.
The country is taking great measures to develop its automobile sector so that no further import changes would be spent. Other than that, the money will be used to invest in more projects that can help upgrade the automotive sector.
However, before any automaker sets foot in any country to invest in their businesses, they always take some definitive measures to ensure that investment in the state would not turn out to be a big loss because sometimes these losses lead to less manufacturing due to lack of funds, sometimes even bankruptcy.
Furthermore, the company is also looking at the economic and political condition of the country to avoid any conflicts that might come in the way of its business. And lastly, they also review the policies and rules of the government to ensure that their terms and conditions match up with the criteria so that they can have a long-term relationship with the state.
For a company to start a business in a foreign country, they need to manage its domestic business well and the foreign one to make sure that both of them remain successful. The Toyota start-up business in Cambodia will greatly increase the reputation of the currently developing country; naturally, many other foreign investors will also like to do business here.
The more plants get manufactured, the more job opportunities become available to the locals. The prices of the vehicles then naturally lower due to the non-tax payment. The spare parts of Toyota cars will then be available at affordable rates and won't be imported. It has been said that the establishment of the Toyota assembly plant will provide over 950 jobs to civilians. In addition to that, the plant will be able to manufacture about a thousand vehicles each year.