Seeing Cambodia as a Regional Hub
Sunday, 05 July 2015; News by Khmer Times/Igor Kossov
KT Photo: Nou Sotheavy
Already one of the Kingdom’s biggest names, the Worldbridge group of companies continues to diversify, with new ventures and acquisitions in logistics, e-commerce and call center support. Earlier this month it broke ground on its most recent venture, a special economic zone and bonded warehouse 17 kilometers south of Phnom Penh that it will develop in partnership with Hong Kong-listed Kerry Logistics.
Rami Sharaf, CEO of Worldbridge International (Cambodia) Ltd, is optimistic about Cambodia’s growth prospects and sees opportunities to leverage the country’s geographical position between Thailand, Vietnam and Laos. He spoke to Khmer Times about the drive for better logistics and Cambodia’s place in the regional manufacturing value chain.
KT: Worldbridge has beefed up its investments in logistics recently. Why is this a growth sector for you?
Sharaf: Cambodia is coming into the bigger picture of regional integration and we want to attract as much foreign direct investment as we can. No business can survive without a proper logistics system in place. Strategically, having our joint venture with Kerry Logisitics, which combines a listed company with a local company, [to create a special economic zone] is the right step.
KT: How does Worldbridge’s recent acquisition of a controlling stake in courier company Cambodia Express support your new e-commerce venture, MAIO Mall?
Sharaf: Growing our [logisitics services] goes hand in hand with our e-commerce business. We already deliver to many different places, even very rural areas.
E-commerce has been maturing in many of our sister Asean countries. It’s new in Cambodia, but with accessibility, pioneer entities in Cambodia can grow in synergy with other e-commerce ventures.
KT: What role do you anticipate your new SEZ will play in developing Cambodia’s manufacturing sector?
Sharaf: When looking at the SEZ, we look at what we can produce in Cambodia, not only for the domestic market, but also for Asean.
We can attract FDI to make, for example, products like refrigerators in our SEZ where the logistics warehouses and bonded warehouses are in place. The [central] location and geography of Cambodia plays a major role. Investors are coming to build these goods not just for the 15 million-strong domestic market, but also the 600 million-strong Asean market.
KT: Where do you see Cambodia in the regional production chain?
Sharaf: One of the fields we hope to attract is high-tech. If a Samsung Note 4 or the latest smartphone can be built fully in Vietnam, why not in Cambodia? This is the kind of ambition that we have – we want to upgrade into more sophisticated industries.
Another important field is automotive, which is limited in Cambodia. We can be the suppliers of certified components that support the strong automotive industry in Thailand. Flooding [in 2011] badly affected the automobile factories [in Thailand] and many of the component factories that were there.
One of our ideas is to [attract] some of these factories and [to diversify] into certain relevant industries. A good, inspiring example – two weeks back we visited the Tiffany’s jewelry factory in the SEZ in Phnom Penh. It’s amazing to see 1,000 young Cambodians dealing with such a sophisticated industry, doing it up to the standards of New York, Paris, London and Milan. A platform for the global market exists in Cambodia today.
We believe it can be done and all gaps can be bridged. We are firm believers that Cambodia is on the right track and its phenomenal growth year over year is a sustainable one.
KT: Do you see a critical mass of skilled labor here?
Sharaf: Vocational training is another venture that our group has in the pipeline. When the time comes, we will be sharing some more information. We know [the skills gap] is there and we want to play a role in bridging it. For us, it’s a strategic venture that we are exploring very seriously.
KT: Where will Cambodia be with regards to Asean integration?
Sharaf: Integration is a process that involves capacity building, regulation and registration. [The question is] how welcoming and attractive we are to FDI when we are in Asean.
We aren’t playing alone. There are other players, so we have to brand Cambodia as the right destination for whoever wants to penetrate this market of 600 million consumers. Without the sincere cooperation between a proactive private sector and a very cooperative public sector, this integration can’t happen.
KT: How cooperative is Cambodia’s public sector?
Sharaf: Certain ministries are showing reform. We have a new spirit, in terms of the ease of doing business. One example is the Ministry of Commerce launching a good number of reforms that aim for a better ease of doing business, better accessibility and less bureaucracy. All that surely reflects on attracting more FDI.
We saw in some latest resolutions how Cambodia took the leading role among neighboring countries in terms of setting up a business, going online, etc.
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Source:http://www.khmertimeskh.com/news/12902/seeing-cambodia-as-a-regional-hub/
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