Your Venerable Monks,
Your Excellency Shin Hyun-Suk, Ambassador of Republic of Korea to Cambodia,
Your Excellencies, Ladies and Gentlemen,
My Dear Compatriots,
Today, it is my great pleasure to join you all in the inauguration of the “factory producing electrical wire and all kinds of electrical cables of KTC Cable Co., Ltd.”, under the form of direct investment from the Republic of Korea in the Kingdom of Cambodia.
On this auspicious occasion, I would like to make a note that since our diplomatic ties have been re-established in 1996, thepeople and the government of the Republic of Korea have continuously supported Cambodia in the forms of grants, soft loans and promoting Korean investors to invest in Cambodia that have contributed in the infrastructure development in many sectors in Cambodia such as Ta Mouk Water Reservoir, Krang Pon Ley Water Reservoir, the partial construction of National Road Number 3 from Trapeang Lapeou to the Kompot town, capacity development in the national IT system administration, the support to the Cambodia-Korea Multi-Technical Institute and health sector. Moreover, the Korean government also provides favorable environment in allowing Cambodian labor to work in Korea.
Indeed, we all remember the noble contribution from the Republic of Korea in the cause of rehabilitation and development of Cambodia. This support is critical for Cambodia to stand up again. The support during this time is invaluable and being utilized at it most. Obviously, the direct investment from the Republic of Korea invested through the establishment of “electrical wire and all kinds of electrical cable production factory of KTC Cable Co., Ltd.,” is another achievement, which reflects a strong relationship between the two nations, the Kingdom of Cambodia and the Republic of Korea.
Along with the foreign official aid, many Korean investors have continuously invested in almost all sectors such as garment sector, agriculture sector, agro-industry, tourism sector and construction. According to the report by the Center for the Development of Cambodia (CDC), the inflow of investment from the Republic of Korea to Cambodia between 1994 and 2005 is about $352 millions US dollars and we hope that the investment will continue to grow quickly in a few more years. Apparently, one company from the Republic of Korean has decided to invest 2,000 millions US dollars in constructing of a new city in Poung Peay lake region, and it is currently working together with Phnom Penh municipality and other authorities to come up with necessary plans in constructing this new city. Taking this opportunity, I would like to request to all relevant line ministries and agencies and authority at all levels to work closely together to expedite new city development plan to come to lives, in order for, Phnom Penh city to regain its status as “Pearl City in Asia.”
Clearly, the investment of KTC Cable Co., Ltd., at this time will contribute to the development of labor intensive industry, which has basic skill and exporting industry, and create plenty of job opportunities for the people. In addition, this new industry will enhance the economic growth in Cambodia through the promotion of export which is the key to promote economic growth, to enhance competitiveness, to improve the living standard and to reduce the poverty. Indeed, all of these factors will reflect the parallel of the government’s Rectangular Strategy and real socio-economic situation in Cambodia aiming at promoting economic growth and employment generation for the Cambodian people, enhancing social equity and justice as well as strengthening efficiency in the public sector through the implementation of intertwined and comprehensive reform programs.
Over the years, in order to facilitate the business and private investment activities, the improvement of the competitive capacity of the industry in Cambodia, especially to increase the private sector’s trust, the Royal Government continues to strengthen law framework, regulation and institutional capacity by focusing on a number of the following real measures:
1- Strengthening good governance in both public and private sectors.
2- Facilitating trade and improving investment climate.
3- Encouraging the human resource development to effectively answer to the demand of the market effectively.
At the same time, a number of real measures have been implemented such as (1)-organizing a federal office to reduce the application time to check good (2)- creating a joint monitoring office between the Customs and Excise Department and Camcontrol (3)- reducing the time of requesting the Certificate of Origin-CO, a document related to export and reducing time to check goods etc. Indeed, all of these measures with the introduction of single administrative document system and the implementation of risk management strategy for imports and exports will reduce the unnecessary procedures and documents as well as reducing unofficial expenses in the day-to-day work of the private sector.
Currently, in spite of the negative effects from some external factors such as high oil price, the bird flue epidemic and the unpredictable change of the climate, the outcome of the comprehensive implementation of reform programs and consistent political stability permit us to implement policy agendas aiming at improving economic growth and poverty reduction. With prudent macroeconomic management in the last 12 years, the Cambodian GDP average growth rate is about 7% per annum. Notably, the economic growth in 2005 is estimated to reach 9.7%. This continuously positive outcome has lessened approximately 1% per annum of the poverty rate for the last decade as what the government expected. The strong economic growth in 2005 is contributed from expected strong growth in agriculture, the continuous growth in garment sector, rapid growth in the construction sector and the increase in the number of tourists. Particularly, the total value of investment in Cambodia in 2005 is 1,048 millions US dollars comparing with only 216 millions US dollars in 2004. Therefore, we can see that in only one year the investment growth in Cambodia increased by almost 5 times.
At the same time, it should be noted that electrical wire and cables factory invested by KTC Cable Co., Ltd. at the moment is the first type of heavy industry ever established in the Kingdom of Cambodia after the war. Through this investment, the company plans to spend up to 25 Million US dollars and employs approximately 420 skilled labors during the first stage of the production and will increase up to 1,215 workers when the factory reaches its full production capacity. This industry will produce approximately 2000 different types of products to be sold in domestic markets and for exports to fully respond to the demand of domestic markets and to ensure competion with outside players that enable Cambodia to save foreign currencies though the reduction in the imports of electrical wire and cables.
Without any doubt, the investment of KTC Cable Co., Ltd. at the moment reveals that Cambodia is in the pattern of improved capability “from being a country that received only light industry type of investment to eventually become a country with the ability to receive heavy industry type of investment by using skilled labors“. During the first stage of the production,KTC Cable Co., Ltd. will hire both of Korean and Khmer skilled workers who have been trained at the Republic of Korea to work and further train those workers without any skill to smooth the operation of the factory.
Recently, the Royal Government recognized that Cambodia needs means and training infrastructure, especially, basic skilled labor training to respond to the increase in the demand for investment in specialized industry in Cambodia toward increasing investors’ confidence in the industry sector, which requires basic skill. The Royal Government in the third term of the Assembly has established the Ministry of Work and Vocational Training which is responsible for providing basic vocational training to serve the industry in Cambodia. I would like this ministry to closely cooperate with development partners as well as the private sector to have a proper foundation and to increase training capacity for Cambodian youths to have skills in order for them to be able to receive high salary and to help increase the investor confidence.
At the same time, it should be noticed that strengthening private sector and attracting investment, especially foreign investment, have been clearly stated in the Rectangular Strategy of the Royal Government, which regards the private sector as “the engine of economic growth“, and the Royal Government set the strategy to create better business environment for the private sector to make more investments. Achieving these objectives require the participation and cooperation from all relevant ministries/institutions, local authority at all levels, civil society as well as domestic and foreign private sectors and the citizens from all walks of life.
In this regard, the Royal Government has always encouraged investors in timely manner in order to make Cambodian industry competitive in the international market and to promote the relationship between small and medium enterprises with every industry to establish the industrial-handicrafts relationship in Cambodia which is able to respond to the domestic industrial supply policy by locally based industry and toward the reduction in imported goods from overseas that Cambodia can produce and to increase domestic production confidence.
Taking this opportunity, I would like to call for the ministries/institutions and authorities to reduce or completely eradicate the bureaucracy and to ease the procedural measures by all forms possible in order for KTC Cable Co., Ltd. as well as other investment companies to operate their business in Cambodia with success.
Moreover, I would like to express my appreciation and encouragement for leaders and government officials of all concerned ministries/institutions who have made tremendous efforts in making this investment plan possible and to operate smoothly with success.
I would also like to congratulate and encourage KTC Cable Co., Ltd. with Mr. Myumg IL Kim as the president, to try his best with the ability and technical capacity that he possesses in the production of all types of electric wire and cables with high quality which can compete in the market full of imported products and toward exporting abroad.
I have a very strong belief on the success of KTC Cable Co., Ltd. in Cambodia under the working efforts of all employees and workers in full-filling their duties to transform this company into a role model company in the development of heavy industrial sector in Cambodia and to attract other types of foreign investment into Cambodia, especially Korean investors.
Finally, I would like to whish Your Excellencies, Ladies and Gentlemen with the Five Gems of Buddhist Blessings. May I now announce the “opening of the all types of electric wire and cable production factory of KTC Cable Co., Ltd.” from now on.
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