In a bid to attract investment to Cambodia’s bicycle manufacturing industry, Minister of Commerce Pan Sorasak will soon lead a business delegation to Indonesia.
In a recent Facebook post, the minister said that the government aims to increase the number of factories in Cambodia producing bicycle components to reduce imports, adding that the country is wide open to investments in this area.
“I will soon lead a delegation to Indonesia to attract investors interested in building factories to produce bicycle parts in Cambodia,” Mr Sorasak said.
“This will generate new jobs, increase the value of the domestic manufacturing industry as well as help strengthen our productivity and competitiveness,” the minister said.
Last year, Cambodia exported 1.52 million bicycles to the European Union, worth a combined $331 million, according to a World Bank report released in May. In 2017, the Kingdom became the largest bicycle supplier to the EU, overtaking Taiwan.
Bicycles need to be made from at least 40 percent locally produced components to qualify for duty-free status in the EU, said Seang Thay, spokesman at the Ministry of Commerce.
He said that Cambodian currently manufactures some of the components used in bicycles but that it also imports them from Vietnam and Thailand, among other countries.
According to Mr Thay, most bicycle manufacturers are located in the Tai Seng Bavet Special Economic Zone.