To further strengthen the domestic assembly industry powered by fuel and electricity and position Cambodia as a competitive player in the regional market, the Royal Government on Wednesday held a meeting to discuss a strategic plan to attract investment in the automotive sector.
Building on the success of promoting investment in Preah Sihanouk Province, Mr. Hean Sahib, Senior Advisor to the Prime Minister, led a working group to draft the “Strategy to Promote Investment in the Automotive Sector” at the Ministry of Economy and Finance.
Mr. Nut Unwanara, Deputy Secretary-General of the Cambodia Investment Committee of the Council for the Development of Cambodia, was also present at the meeting.
Mr. Hean Sahib, Chairman of the Preah Sihanouk Provincial Investment Promotion Working Group and Chairman of the Private Sector Development Working Group, said that the initiative is designed to support the national assembly industry for cars, motorcycles and tricycles, including fuel and electric vehicles.
The draft law aims to diversify the national economy through sustainable and inclusive development by supporting high-value-added assembly industries.
He added that the strategy is to strengthen export capacity, making Cambodia a regional and global competitor while boosting the production of both fuel-powered and electric vehicles.
According to a press release from the Ministry of Economy and Finance, participants discussed inputs gathered from the private sector and relevant ministries and institutions to prepare a draft strategic document for the medium and long-term plan.
Secretaries of State, Undersecretaries of State, Director-Generals, Deputy Director-Generals, and Deputy Secretaries-General representing the Ministry of Industry, Science, Technology and Innovation, Ministry of Public Works and Transport, Ministry of Labor and Vocational Training, General Department of Taxation, General Department of Skills Development Policy and Fund, and General Department of Customs and Excise also participated in the discussion.
It is also worth noting that the Royal Government approved 42 investment and business projects in January, worth $565 million.
Meanwhile, the Council for the Development of Cambodia approved 64 new investment projects and four expansion projects worth $748 million in January. All 68 projects are in the industrial sector, with China leading the list of investors, indicating strong confidence in Cambodia’s export potential.
Speaking to the Khmer Times, Yann Vaudin, founder of VOLTRA, said the government’s initiative is a major step towards making Cambodia a major player in the automotive industry.
If implemented effectively, the strategy could attract investors, lower vehicle prices through local assembly, and create jobs for Cambodians. But if investors come only to benefit from tax breaks and low labor costs while exporting all the vehicles abroad without contributing to the local market or making the vehicles affordable for Cambodians, then that is not in line with the strategy’s objectives.
“Developing a local assembly industry should help reduce the cost of domestic vehicles, which are still higher than those in neighboring countries,” he added.
To ensure success, he said, policies should prioritize domestic market growth, encourage private sector investment in charging stations, and promote infrastructure development through clear frameworks and public-private partnerships.
By addressing these issues, investors can remain internationally competitive, promote domestic electric vehicle adoption, and make Cambodia a sustainable regional automotive leader, he said.
