Demand for new vehicles in Cambodia is growing along with the economy and the middle class.
PHNOM PENH, Cambodia, June 22, 2022 /PRNewswire/ -- The Kingdom of Cambodia's first Ford assembly plant was inaugurated on June 16 in Pursat province, as more Cambodians seek new Ford models in a growing economy.
The new plant represents a capital investment of $21 million.
In the first 5 months of May 2022, the Ministry of Public Works and Transport registered 4,800 Ford cars and trucks, a 33 percent increase over the same period in 2021, when Cambodia registered 3,600 Ford vehicles. All had been imported.
Ngorn Saing, CEO of RMA (Cambodia) Plc, an authorized Ford automobile distributor in Cambodia, noted at the inaugural event that the plant, in Pursat's easternmost Krakor district, would create more than 500 jobs and assemble about 9,000 vehicles each year.
The company is also working with the Polytechnic Institute of Pursat Province (PIPP) to train staff and improve the technical skills needed for jobs at the plant.
Speaking at the inauguration, Royal Cambodian Armed Forces (RCAF) Deputy Commander and Royal Cambodian Army (RCA) Commander Lieutenant General Hun Manet said the improvement in living standards in Cambodia and the country's current state of development make the Kingdom a promising place for foreign investment.
"The establishment of a Ford assembly plant in Pursat, Cambodia, now is a source of pride for locals as well as people across the country, as well as a welcome to the presence of heavy and modern industry," he said.
"This factory is a model of a successful opportunity that will serve as a pioneer and encourage further large-scale investment, especially in the automotive sector in the future."
Used cars currently account for 83 percent of the Cambodian market for passenger cars, with revenue at US $242 million in 2022, according to the General Department of Land Transport (GDLT). However, the demand for new cars is growing at a rate of 17 percent annually, parallel with the growing Cambodia economy. Cambodians are attracted to the latest technology, safety systems, quality guarantees and after-sale service that come with new cars.
Ford's new assembly plant is the latest in a wave of new factories in the country, including nine new automobile manufacturing plants in 2021.
According to the Cambodia Automotive Industry Federation (CAIF), the Kingdom's vehicle market is growing at an estimated 35 percent in 2022.
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SOURCE The Government of the Kingdom of Cambodia