SVAY RIENG: Established in 2005, the Manhattan Special Economic Zone (MSEZ) near Cambodia’s Bavet City spans 400 hectares and provides employment to more than 36,000 people. Meant to attract investors looking to enter the Cambodian market, it is the largest SEZ in the country and focuses on sustainable development, mutual benefit and co-prosperity for Cambodia and its partners.
EAC News had the opportunity to speak with MSEZ Director Clement Yang to find out what the last 18 years of the project have brought to the region, and how he is working to improve conditions for both workers and investors.
He spoke about the project’s growth from a rural landscape in 2004, to an export powerhouse. “At that time, it was empty land, so we started with only 100 workers. So the first five years we had only three factories. After eight years, we had maybe 15. [After that], we had a complete industrial park. We hired 36,000 people and we became the biggest export area, representing total 6% of Cambodia’s exports,” he said. Since then, there have been nine SEZ’s established in the surrounding the area, that employ about 80,000 people.
He spoke about the benefits and immense success of investing in Cambodia. “It’s like a virgin land for industry, so we chose Cambodia and luckily it has been successful.” In addition to development potential, he remarked on the benefits of Cambodia’s duty-free exports. “Cambodia actually has all kinds of other benefits, not only can everything but weapons be duty-free, but also [trade with] other ASEAN countries can be duty-free, so there is a low impact.”
He went on to compare Cambodia’s export market to that of China or Vietnam, which he says are costly and overcrowded, with Vietnamese land prices skyrocketing over 300% in recent years. “Cambodia still maintains a good competitive land price,” he said, “Also Cambodian people are more obedient and work hard.” He stressed that with good training, the Cambodian workforce can be even more efficient than that of China or Vietnam.
Prime Minister Hun Sen has echoed the need for more IT and skilled labor training in recent months, hoping to create opportunities for young Cambodians entering the work force. With an eye on the future, Clement Yang says that IT training, along with a focus on green energy will make Cambodia a formidable competitor in the international market.
An intelligent businessman, Mr. Yang has plans for affordable and attractive housing for MSEZ employees. He recalled his time as a young worker, moving to the city without any decent housing options. He notes that the affordable housing project will not only increase his employees’ quality of life, but will also benefit the MSEZ as a whole, by encouraging employees to stay, develop their skills and work for the long-term, reducing the cost of employee turnover and providing the company with loyal, skilled employees.
