German car manufacturer Volkswagen launched its biggest showroom in Cambodia on Monday, having entered a partnership with local conglomerate HGB Group.
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Herfried Hasenoehrl, CEO of HGB, said the German car maker’s presence in Cambodia is a strong indication of the kingdom’s growing capacity to attract global industry leaders.
“Cambodia is becoming a key player in the Asian market. Its strong economic growth and infrastructure development in the last decade have compelled us to enter the market.
“We do believe that growth and development will continue,” Mr Hasenoehrl said, adding that the new showroom in Phnom Penh is one of the largest of its kind in Asia.
Jan Redecke, digital communications manager for Volkswgen Singapore, said Volkswagen and HGB started negotiations 12 months ago, eventually culminating in the opening of the new exhibition room.
“It was a very close and positive cooperation from the beginning. Besides opening a showroom, we managed to include aftersales services and accessories into the deal; that’s a great success.
“This is an important step for us in improving our presence and brand image in Southeast Asia,” Mr Redecke said, adding that currently his company is investing more than 40 million euros ($46.9 million) in a new warehouse in Malaysia that will keep the new showroom in Phnom Penh fully stocked.
Industry and Handicrafts Minister Cham Prasidh said Cambodia continues to attract an increasing number of foreign investors bringing the latest products and technologies into the kingdom.
“There is great potential in this country. Now, our middle class is expanding and they are demanding more and more international brands.”