Enterprises That Have Lost Their Competitive Edge In China Have Rediscovered Profits In Kampuchea.

Pioneers in Kampuchea

Under the background of economic pformation, many Chinese enterprises have entered Kampuchea.

The Sihanouk port special economic zone, which was built by the group, enjoys the dividends of policy and population on the one hand, and also suffers harsh conditions and shortage of talents on the one hand.

At 9 a.m. on June 7th, the earth's surface temperature had exceeded 35 degrees Celsius. The guests in formal dress were sitting in the chair of the square.

On the rostrum, the Prime Minister of Kampuchea, Hong Sen, is loud and clear, telling the special features of this park at his feet, his origin with this park, and his expectations for the future.

This is the Sihanouk harbor Special Economic Zone in Kampuchea.

This Southeast Asian country has set up a special economic zone in accordance with the road that China has gone through before, in order to realize the pformation of agricultural economy to industrial economy.

8 years ago, the red bean group of China Jiangsu enterprise took root in this area, and produced a park from the grass and shrub. It became the real "big business" of Sihanouk port, and it also brought business opportunities to one of the poorest countries in the world.

Of course, this is not an easy job.

Sometimes it's hard to find skilled workers in the park.

Women workers often began to step on the mud before they cleaned them.

Foot pedal.

As a pioneer in Kampuchea, the red bean group and its Chinese enterprises are witnessing the great economic pformation of a country.

8 years of pioneering Kampuchea

Three sides are surrounded by low hills, facing the United States to build a four highway, in the middle is an open 12 square kilometers of land is the Sihanouk port special economic zone (SSEZ).

The HKSAR operates in the form of a company. Its full name is Sihanouk port Special Economic Zone Limited (hereinafter referred to as the "West Port special zone"). It is led by the red bean group and is jointly operated with Kampuchea international investment and Development Co., Ltd., and the former is in a controlling position.

In 2007, the red bean group began to inspect Sihanouk port and set up a joint venture company, and began to negotiate land acquisition in 2008.

Dai Yuee, general manager of the West Hong Kong Special Administrative Region, told the first Financial Daily reporter that at present, the West Hong Kong Special Administrative Region has complete property rights to the land at its feet.

The government of Kampuchea has also given the right to the West Hong Kong Special Administrative Region (HKSAR). After completing the construction of the public office area of the water and electricity, the latter began to throw Hydrangea to Chinese enterprises and attract them to land in the special zone.

June 2016 coincided with the arrival of 100th enterprises, and the Western HKSAR invited Hong Sen to attend the celebration.

According to the management staff of the West Port Region, the SAR is more special than other parts of Kampuchea in terms of its import and export tariff relief, and it concentrates on the "one-stop" service required by the enterprises for import and export business, providing investment applications, registration, customs declaration, commodity inspection and issuance of certificate of origin for the enterprises in the region.

However, in the early stage of land purchase and actual construction in the park, the local government adopted the policy of stocking: neither intervention nor restriction.

"When we first came here, there was no water, no electricity and no road. Almost one hundred percent of them were covered with weeds and shrubs without economic value, and the terrain was down to 70 meters."

Dai Yuee recalled the 8 years ago when he set foot on the local scene.

At that time, in order to explore the land, someone needed to wave a chopper to cut the Bush to pass.

The land is owned by local farmers. The company talks with farmers about the land purchase agreement. "The land is pieced together by more than 100 land property rights certificates."

Even today, the 11.13 square kilometres of land are not fully available for use by enterprises. Among them, more than 100 enterprises have been stationed on 5 square kilometers of land with "five links and one level".

Labor is easy to buy, but skilled workers are hard to find.

Among the more than 100 enterprises in the park, there are 87 Chinese enterprises, mainly light industry.

Enterprises that have lost their competitive edge in China have rediscovered profits in Kampuchea.

A single wage can save a lot of money for labor-intensive enterprises.

In the period when the West Hong Kong Special Administrative Region has just been built, that is, 8 years ago, the local workers' wages were only 8 yuan per day, and the monthly salary was around 240 yuan.

Even though wages of workers in Kampuchea have risen year after year, they are still lower than those in China.

According to Fan Yun, general manager of xindaxun Textile Co., Ltd., which is located in the West Hong Kong Special Administrative Region, the first financial daily correspondent, the local workers' wages plus the corresponding benefits, all the packaging expenses are about $200 a month.

According to the recent RMB to us dollar exchange rate, the monthly salary of ordinary textile workers in Kampuchea is around 1300 yuan.

Kampuchea's per capita income is even lower.

According to world bank data, Kampuchea's per capita income in 2014 was 1084 US dollars, with a monthly average of US $90.

Although labor costs are low, the problem for Chinese companies is that workers in Kampuchea are not as industrialized as Chinese workers.

On the 10 day of each month, the West Hong Kong Special Administrative Region regularly recruits staff, most of whom are farmers around.

A business manager in the park said Kampuchea workers worked very slowly, and the efficiency of the two Kampuchea workers was only the same as that of a domestic worker in China.

This may be related to the local climate. Kampuchea's annual temperature is above 30 degrees Celsius. It is difficult for people to withstand the high temperature under this temperature for a long time.

On the other hand, the local workers are directly pformed from the farmers. Washing the soil on their feet and stepping on the sewing machine pedal is a test for the local people.

They have been able to cope with the primary light industry with ease, and can do nothing if they involve a little complicated work.

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30 years ago in China

Hong Sen had deep roots in the West Hong Kong Special Administrative Region. In 2008, Hong Sen also attended the foundation laying ceremony of the West Hong Kong Special Administrative Region as prime minister.

In recent years, Kampuchea is pushing forward the construction of the special economic zone. Up to now, 11 special zones have actually operated.

The exemption of import and export tax is the "standard" of the special economic zone, which has attracted the shift of China's low-end manufacturing industry.

In China 30 years ago, the textile industry was the focus of the industry, and now it belongs to the "sunset industry".

Entrepreneurs are like carnivorous animals on the grasslands, looking for suitable hunting grounds with seasonal migration.

When xindaxun textile entered Kampuchea, it bought a piece of land for 50 years from West Port and established its own factory.

The choice of Chinese enterprises in Kampuchea and West Hong Kong Special Administrative Region is more important than preferential policies for Kampuchea.

Due to being listed as a poor country, the developed countries and regions such as the European Union, Japan and the United States have given Kampuchea a lot of tax preferences, which has added weight to the attraction of the special economic zone.

For example, the tax rate of hydraulic forklift products from domestic exports to the EU is as high as 78%, but the export from Kampuchea can be exempt from import duties.

The manufacturer of the hydraulic forklift truck in the West Hong Kong Special Zone is to follow the Chinese hydraulic forklift truck manufacturer from Thailand to Kampuchea.

The red bean international garment under the red bean group is also one of the earliest enterprises to enter the western port special zone. At present, the factory has two pairs of trousers and two Western-style clothes, and there are four production lines. It is expected that the monthly production will reach 40 thousand and 30 thousand respectively.

China's management capability and local workers are combined: 20 Chinese managers and 620 local employees.

In fact, the HKSAR benefits from the superposition effect of the policies of China and Kampuchea.

Kampuchea is like China 30 years ago, a country from an agricultural economy to an industrial economy, its vigorous labor force is slowly adapting to the labor from farmland to industrial assembly line.

The government of Kampuchea is also like China 30 years ago, hoping that foreign investors will bring capital and management capability, and pplant and pplant industries.

China is vigorously implementing the strategy of "one belt and one road", and Kampuchea is on the top of the node.

At the same time, the domestic side is conducive to the elimination of excess capacity of the supply side reform, which means that a large number of Chinese enterprises are expected to achieve the pfer to foreign countries.

After the celebration of June 7th, the sea breeze blew dark clouds, and a heavy rain came with the wind.

Next to the coast, the West Port region is a place of excitement.

The Chinese who have come all the way from reform and opening up must be no stranger to this.