The Phnom Penh Post

CDC: Improve infrastruc­ture to draw investment to border

Moon: SK gov’t must set sights to ‘overtake’ Japan economy

- Hin Pisei Choi He-suk

THE Council for the Developmen­t of Cambodia (CDC) has urged relevant parties to increase ef forts to attract more foreign investors to border areas.

CDC secretar y-genera l Sok Chenda Sophea said to achieve t his, it is necessar y to develop infrastr ucture there such as specia l economic zones (SEZ), connect them to the power grid and identif y attractive industr y sectors.

Speaking at an inter-ministeria l/ institutio­na l meeting i n Banteay Meanchey province on Monday, he said: “Encouragin­g investment by easing trade and logistics at border areas is cr ucia l to attracting investors.

“I urge a ll sta keholders to step up t heir ef for ts to facilitate t he operation of current investment projects which are aimed at attracting more foreign investors to Cambodia’s border areas.”

Banteay Meanchey provincial governor Um Reatrey told The Post on Monday that due to its favourable geographic­al location near Thailand’s seaports, the province possesses a high potential for investment.

“Developing and increasing investment in border areas is crucia l to boosting economic grow th and helping to curb Cambodians working abroad,” he said.

Reatrey said prov incia l aut horities have made adequate preparatio­ns for investors – setting up tra ining facilities and short courses for workers and securit y guards, prov iding administra­tive convenienc­e for investors and preparing t he labour force.

Ly Kimhong, the brand manager at Poipet Oneang SEZ, which currently has four factories operating

with some 7,000 workers, welcomed more investment­s in border areas, saying it will help create jobs while facilitati­ng the transport of goods.

“Even as of t hese last t wo years, border areas here in Poipet town have developed ver y quick ly, they have to be made more attractive to investors,” Kimhong said.

He said the government opening more border checkpoint­s and improving infrastruc­ture would help to boost the economy in border areas.

Cambodia Freight For warders Associatio­n president Sin Chanthy said border developmen­t is part of the Cambodia Industria l Developmen­t Policy 2015-2025.

“It would be great if border areas were developed. More investment would improve t he logistics sector.

“I would a lso like to see goods transporte­d v ia rail from Thailand and to Sihanoukvi­lle’s internatio­na l seaport while avoiding t he use of lorries and helping to reduce road congestion,” he said. SOUTH KOREAN President Moon Jaein stressed the need to seek economic growth and improve inter-Korean relations in overcoming trade curbing measures imposed by Japan.

Speaking at a weekly meeting with senior aides, Moon said the government must look beyond responding to Japan’s measures to laying the foundation for “overtaking” Japan’s economy, and highlighte­d the importance of what he called a “peace economy”.

“Extraordin­ary determinat­ion and bigger perspectiv­e to overtake the Japanese economy is needed,” Moon said, urging his aides to show the government’s determinat­ion in policies and in drawing up next year’s budget.

“Japan cannot block our economy’s leap. In contrast, [the measures] will be a stimulus that strengthen­s our determinat­ion to become an economic powerhouse,” Moon said.

Listing industrial developmen­ts, such as the commercial­isation of fifthgener­ation (5G) technology, and policies such as the New Southern Policy and New North Policy that aim to diversify Korea’s export destinatio­ns, Moon said stepping up innovative growth and expanding the scope of the South Korean economy are “fundamenta­l solutions” to the current situation.

‘Catch up in one leap’

Moon’s comments echo views that Japan’s decision to remove South Korea from its list of trusted trade partners and to apply tighter controls on exports of key semiconduc­torrelated materials may have more fundamenta­l objectives.

According to a high-level government official, Tokyo may be aiming to create uncertaint­ies and instabilit­y within the Korean corporate community and the public, which would generate indirect costs to the country’s economy and add to economic difficulti­es.

At Monday’s meeting, Moon went on to highlight the importance of improving inter-Korean relations to achieve “peace economy” in “overtaking” Japan.

“If [a] peace economy is achieved through economic cooperatio­n between the South and the North, we can catch up with the Japanese economy’s advantages in one leap,” Moon said, adding that the size of the domestic market is one of the key advantages Japan has over South Korea.

Moon a lso took t he opportunit y to again criticise Japan, say ing t he Abe government is inciting internatio­nal criticism and damaging bilatera l relat ions.

“The Japanese government itself is creating the criticism that Japan is a country that does not remember the past. The internatio­nal community is raising criticism that Japan is damaging free trade order,” Moon said.

“Japan must realise that [it] cannot take a leading role in the world based only on economic power.”

 ?? POST PIX ?? Workers drive through the Poipet-Aranyaprat­het border crossing.
POST PIX Workers drive through the Poipet-Aranyaprat­het border crossing.
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