A high-end fashion and accessory manufacturer’s delegation has chosen Cambodia as the location of their investment.
After meeting Sok Chenda Sophea, Minister Delegate to the Prime Minister and Secretary General of the Council for Development of Cambodia (CDC), yesterday, they came to this conclusion. The delegation had in-depth conversations about the procedures to follow in order to apply for the different licenses and permissions and enquired about the ‘Qualified Investment Project (QIP)’ requirements in great detail.
The decision of this company is based on the long history of culture and civilization in Cambodia, which is a crucial factor in the company’s decision to synchronize its line of products that are intended for manufacture in Cambodia.
According to reports, the corporation began researching Cambodia’s investment opportunities at the beginning of 2019 and plans to start investing there by 2024.
Even while the US and Europe continue to rule the luxury sector, new markets are emerging. In 2022, a whopping 95% of premium companies experienced growth. In 2022, the luxury market expanded by nearly 21%.
Luxury products are essentially impervious to price structure and inflation, according to reports by “Money Week.” Given their large profit margins and the fact that their wealthy clients already anticipate price increases, Consequently, you may anticipate the same high return while investing and reselling the product.
The purchase of expensive goods has additional advantages. Luxury goods can provide more than just a fleeting delight, from boosting your self-confidence to elevating your social position. Luxury brands are self-evident. They can make excellent investments in addition to being timeless classics.
According to the report, international collaboration among investment agencies could benefit in peer learning and make it easier for investment authorities from various nations to form collaborations.
In order to do this, the report noted that several initiatives have been initiated with the goal of strengthening cooperation for investment facilitation and development amongst AMS as well as between AMS and their RCEP partners.
As an example of a collaboration effort between an ASEAN nation and an RCEP partner, it highlighted the Cambodia-Japan Cooperation Center (CJCC).
The Japan International Cooperation Agency helped and collaborated in the establishment of the CJCC in 2004. (JICA). The CJCC offers a wide range of programs, including a “Accelerator Program” that aims to build “investment-ready entrepreneurs” through fostering commercial collaboration and fundraising opportunities with Japanese and Cambodian companies. The CJCC also provides Cambodian nationals with management-related courses and business Japanese language education.
Similar to this, other instances of collaboration between ASEAN and RCEP partners include the ASEAN-Republic of Korea Plan of Action (2021–2025), which is unique for its focused attention on particular investor types and investments, most notably those in green technology, it added.
Although the potential contribution of foreign direct investment (FDI) to the advancement of sustainable development is widely acknowledged, the report found that these instruments have significant gaps in their consideration of the connections between investment facilitation and sustainable development.
In order to encourage and facilitate sustainable FDI, the research also suggested that international organizations have a role in helping AMS and their RCEP partners navigate legislative and regulatory action. It was stated that a “Action Plan” or “Action Menu” might be created that offers direction through a step-by-step process with tangible tools, policies, and procedures that all integrate concerns about sustainable development and therefore encourage sustainable FDI.
