SEZs development to help realise Cambodia’s vision for Industry 4.0

• 16 November 2019
• Local News
• 2358 Views

By Leakhena Khat

With developments in technology and the rise of global market competition, Cambodia must develop its industrial sector for higher economic growth and to get itself ready to implement the vision of Industry 4.0. To realise this vision, the Cambodian government via the Council for the Development of Cambodia (CDC) is currently focusing on the development of special economic zones (SEZs) as part of the strategy to boost the industrial sector.

Via the Industry Development Policy (2015-2025), the Cambodian government hopes to increase the GDP share of the industrial sector to 30% by 2025 with the manufacturing sector growing from 15.5% in 2013 to 20% by the same year. This indicates the need to improve and diversify the industrial sector in order for Cambodia to move to the next level of economic development.

Speaking at the recent media briefing on investment opportunities in Cambodia, H.E Chea Vuthy, deputy secretary-general of the Council for the Development of Cambodia (CDC) said that the government is focusing on diversifying the industrial sector in order to compete in the international market and to not rely mainly on the garment and footwear garment sector which currently attracts around 700 companies.

According to H.E Chea Vuthy, since the introduction of industrial policy, Cambodia has attracted new industries like electrical equipment, automotive, and decorative most of which are located in the SEZs.

Although it is hard to define the stage of the industrial revolution that Cambodia is currently at, one can say that the country would be in between Industrial Revolution 2.0 and 3.0 based on a definition by Henry Ford (1913) which referred to the Industrial Revolution 2.0 as a stage when the industry shifted toward electricity and automotive production while the Industrial Revolution 3.0 would be a time when the country can produce personal computers and other technological products.

Mr Suon Vichea, an economics professor at Pannasastra University of Cambodia (PUC) and a senior official at the Ministry of Commerce (MOC), said that the industrial sector is important for Cambodia to achieve its economic goal.

“The government also plans to adopt the digital economy, especially the Industry 4.0 and to achieve this, the government needs to be prepared from now,” he said.

According to Mr Suon Vichea, the wait might be between 10 to 15 years as the government will need to develop human resources, increase capacity in ICT and telecommunications, and improve other infrastructures.

With around 44 SEZs nationwide, according to H.E Chea Vuthy, the country has attracted around 440 factories to locate themselves in the SEZs, but more investments are needed.

In line with the economic growth and the changes in the industrial sector, real estate experts have also called for more investment that will support the industry.

Oknha Sear Rithy, chairman of WorldBridge Group told attendees at a real estate expo in early October that property developers should focus on industrial projects in particular warehousing and factories.

To achieve such economic development, Cambodia will need effort from the public sector and continuous investment from the private sector to generate employment, increase value added to the economy, and increase incomes for the Cambodian people.

• Urbanization and Architect