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    Why Do Textile Enterprises See Kampuchea Special Economic Zone?

    2015/3/22 21:17:00 21

    Textile EnterprisesKampucheaSpecial Economic Zones

    As a pioneer in "one belt and one road", Zhou Haijiang, President of the red bean group, who is involved in the development of the West Hong Kong Special Administrative Region, said: "at present, there are more than 10 thousand employees in Kampuchea, and the average monthly wage income is about $1 million 800 thousand, which has led to the consumer market in Kampuchea.

    At the same time, the development of the West Hong Kong Special Administrative Region has accelerated the process of industrialization in Kampuchea, and promoted the economic and technological cooperation between Cambodian and Chinese enterprises. "

    Because

    West Port Special Administrative Region

    The location is superior and the pportation is convenient. As of now, 81 enterprises from China, Japan, France and the United States have invested and settled. 58 of them have been put into operation and the number of employees has reached 12 thousand. The goal of 2015 is to break through 100 enterprises. In the next 3 years, we hope to break through 300 and solve the employment problem of 80 thousand ~10 million people.

    The garment industry is the largest export industry in Kampuchea. The industry employs about 600 thousand workers, exports account for 80% of the total exports of the country, and contributes more than 15% to Kampuchea's GDP.

    The head of the West Hong Kong Special Administrative Region said that the SAR will also gradually introduce more fabric processing and manufacturing enterprises to form a more complete textile industry chain and provide more services for enterprise production.

    For the red beans, many years of participation in the development of the harvest, enterprises make full use of the advantages of the platform to create a low-cost production chain.

    Zhou Haijiang said: "this is mainly due to the large number of enterprises entering the western port special administrative region.

    Favourable conditions

    For example, imported equipment, building materials, spare parts and raw materials used for production for investment and construction are all exempt from import duties. According to the product category, the enterprises entering the region can enjoy the tax exemption period of 6~9 profit and profit tax; the export of products is exempt from export tax; the production industry that serves the export market, the raw materials are exempt from value-added tax; the industry that serves the domestic market, the value-added tax rate of raw materials is 10% and so on. "100%

    As the economic and trade cooperation zone on the important node of "one belt and one road", the demonstration and model significance of the West Hong Kong Special Administrative Region is very important.

    Today, the West Port region is committed to building a model of international economic and trade cooperation, setting up an investment and trade platform for the global manufacturing enterprises to "invest in ASEAN and radiate the world".

    Zhou Haijiang said: "the future West Hong Kong Special Economic Zone should not only attract more Chinese dominant enterprises, but also introduce more global manufacturing enterprises, and hope to develop into a new local economic center in Kampuchea at an early date".

    In the interview, many enterprises said that they saw the great achievements of leading enterprises' "going out", and the better investment policies of Southeast Asian countries. They also sprouted the idea of "going out", but there was no train of thought in how to take this threshold.

    Kampuchea Mingyuan Home Textiles Co., Ltd. is one of the enterprises in Xigang Special Administrative Region. Chen Yizhong, chairman of the company, admitted that going out is not easy. There are still many unforeseen "hidden reefs", such as social unrest factors and the risk of investment operation. There is no guarantee for good platform advantages.

      

    Cambodia

    The head of the West Hong Kong Special Administrative Region (HKSAR) is deeply convinced that enterprises should go out and prepare for risks.

    For example, the impact of local government elections on social stability, the continuity risks of local laws and regulations, the strike and procession of workers, the risk of workers' salary exceeding expectations, the risks in understanding and executing financial and tax systems under different national systems, the high risk of operating costs and logistics costs caused by incomplete industrial chain, and the low efficiency of labor force, the lack of skilled personnel, and the training of staff management, which are quite different from language, culture and customs, all of which may become important factors restricting the development of enterprises overseas.

    Ming Yuan home textile company from the start of trial production, including the preparatory work to the first container product export, before and after the use of more than 4 months, this is extraordinarily efficient, regardless of product quality and delivery speed has been praised by customers.

    Chen Yizhong said that this is closely related to the sound facilities and service functions of the West Hong Kong Special Administrative Region, which virtually helps companies avoid many risks.

    Today, the company's annual export sales exceed US $80 million, and its products are mainly sold to European and American markets.

    Sun Shuang, general manager of China security consulting, said: "labor intensive industries' going out" requires two factors: threshold and opportunity.

    In recent years, Vietnam, Kampuchea, Indonesia, Sri Lanka and other countries have become the focus of the market for enterprises.

    For textile enterprises, the choice of investment or construction in Southeast Asia, labor cost and tax are all important items for enterprises to investigate.

    While enterprises are exploring while exploring, it is more important to integrate effective global resources. Therefore, the platform for enterprises to choose overseas investment is very important, which can be said to be the first step of success. "


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