Chinese construction depot opens in Kandal

A Chinese-owned depot for furniture and construction materials officially open yesterday in Kandal province, 20 kilometres from downtown Phnom Penh.
The depot is a venture of Chengdu Bayi Furniture Group, a furniture manufacturer headquartered in Sichuan, in Western China.
Chengdu Bayi Sino-Cambodia Trade Mall, located along National Road 4, sits on a plot of 54 hectares, which also includes a logistics centre, market, entertainment centre, as well as apartment buildings and villas. 70 companies are now leasing property in the lot, most of them Chinese, according to a company representative.
The depot will focus on wholesale, said He Dai Qiang, executive vice president of Chengdu Bayi Furniture Group, during the launch yesterday.
“We will make the depot the biggest market for furniture, steel and construction materials in Cambodia in the next two to three years,” Mr Qiang said.
“Cambodia is a great place to invest now. It has peace, great economic growth and political stability, as well as a cordial relations with the Chinese government. That is why we decided to invest here,” he added.
Mr Qiang, however, failed to disclose the amount invested in the project.
Zhang Ying, deputy director of the Business Hall in Sichuan province, said trade between Cambodia and Sichuan was worth $110 million last year. She pointed out that the main products sent to Cambodia from the western Chinese province are electronics, spare parts, sound systems, raw material for the textile industry and steel.
In December, nine companies from Sichuan registered their businesses in the Kingdom, investing a total of $205 million in Cambodia’s construction, agriculture, tourism and service sectors, Ms Ying added.
“As of May, there were 13 projects from Sichuan province registered with the Council for the Development of Cambodia, worth a combined $17 million,” she said.
According to Ms Ying, trade between the Chinese province and Cambodia will be boosted by China’s Belt and Road Initiative, a massive project to build infrastructure across Eurasia and form a channel for trade and investment with China at its centre.
“We will continue to encourage enterprises from Sichuan to invest in the country and partner up Cambodian companies,” Ms Ying said.
Cambodian Commerce Minister Pan Sorasak said Chengdu Bayi will create jobs, increase local incomes, boost the tourism sector and expand bilateral trade with China.
He said the new depot will stock local products, which will help increase sales for small Cambodian manufacturers. “Chengdu Bayi Furniture Group has agreed to allocate 200 square metres inside the mall for products made in Cambodia,” Mr Sorasak said.
“This is a good opportunity for Cambodian manufacturers to display their products and seek partnerships with Chinese companies,” he added.
According to data from the Ministry of Commerce, trade between Cambodia and China in 2017 equalled $5.8 billion, with Cambodian exports to China worth $1 billion. Bilateral trade is projected to reach $6 billion by 2020, according to the ministry.

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