PPSEZ exports to US, EU and ASEAN up substantially in 2020
|Date | 20-01-2021 - 05:25 PM||Article Type | Stock Markets||Region | World|
Exports from the Phnom Penh Special Economic Zone (PPSEZ) made under the ASEAN-EU FTA (free trade agreement) and the United States’ GSP/MFN (Generalised System of Preferences/Most-Favoured Nation) scheme were valued at around $507 million in 2020.
This marked an increase of 76 percent over 2019 results, according to a report from the Ministry of Commerce’s General Directorate of Trade Support Services.
These exports were primarily in garments, textiles, shoes and travel goods with the primary destinations being the US, United Kingdom, EU, China, South Korea and Japan.
Data showed that garment exports from the zone totalled $20.34 million, travel goods amounted to $4.637 million and shoes accounted for $826,504. Other product categories accounted for the remaining $481.68 million.
Undersecretary of State and spokesperson at the Ministry of Commerce (MOC) Penn Sovicheat said the growth reflects more companies having registered for exports. He added this growth is not limited to garment companies and a diversification in markets beyond the EU is also indicated.
He cited Minebea, which produces motor and assembly products in the PPSEZ and Denso, which exports automotive assembly parts, as examples.
“No companies in the Phnom Penh SEZ suspended or stopped their exports during the COVID-19 pandemic… and the products exported from the zone included small motors, assembly parts, automotive assembly parts and solar panels” he added.
Hiroshi Uematsu, chief executive officer of the PPSEZ, added that the total value of all exports from the zone for 2020 was $611 million. He also said that because Cambodia has been able to contain COVID-19 better than other countries, some companies have decided to increase production in Cambodia.
Another reason for the growth in 2020 exports is that the zone has been accommodating a variety of industries, providing a diversity of products including gaming device parts, do-it-yourself products, automobile parts, all of which have had increases in demand because of “stay home” and “social distancing” policies abroad.
“This year will depend on how well COVID-19 is contained. We have to assume that it will be hard to get new investors, but we have been lucky that some of our tenants’ factories are planning for expansion. We will fully support their plans,” Uematsu said.
He added: “At the same time, we will keep increasing recurring income from utility, security, construction, accounting services and other sources.