Skip to main content

Cambodia needs Toyota or vice versa?

If the plan to build a Toyota factory in Cambodia succeeds, it will be a new step in the country's development. Both sides, Cambodia and Toyota, will benefit of course. The question is who will gain more? And how can Cambodia maximize its benefits from this investment?

Toyota is looking for new markets after its sales decreased this year. Cambodia's rapid economic growth for the last few years and its low cost of labour are two attractions for the company. Those factors should make Cambodia a good market for Toyota.

Some rich Cambodians are waiting for the chance to buy the latest Toyota cars to drive in the streets without paying import tax. But poor, rural Cambodians will not see any benefit from the new auto factory. They might have hoped that the factory will provide jobs to their children but their children's farming skills will be of no use to Toyota.

Cambodia, of course, will receive foreign capital from a Toyota factory. The country will also have the opportunity to create employment for her people. It would be very significant if Cambodia is able to provide skilled labour to staff the company's factory, and the country will benefit more if she supplies at least some of the materials.

This comment is also published in the Phnom Penh Post.
Labels:

Comments

McKilis--Lee Mèn said…
This is a cracking job of analysis mate. Good stuff!

I wish to buy a new Toyota Corolla 2010...hahahah if that means no import tax!

Cheers
28 October 2008 at 10:55
Bunly Meas said…
Yes, a new car for a new couple!
28 October 2008 at 11:55
Post a Comment

Popular posts from this blog

Too much empathy for others could lead to despair. Compassion is the answer!

Some workplaces closed their doors and staff lost their income. Since Covid-19 pandemic started, I have travelled to many places in the countries. I have talked to some people about their livelihoods. Although Cambodia has not experienced community transmission of the disease, it is obvious to witness economical impacts on people’s lives. Their income is decreased or taken away when their businesses go slower, and their workplaces are closed. This means less money for rent, food and medical care. Each family member in particular children needs to limit their basic needs. They could be in such a situation for longer!  Those were the words I heard during my conversations with them. Thinking about their wellbeings afterwards makes me overwhelmed. I kept worrying about from one thing to another, especially about affected children and elders, which made me sad and exhausted. My sadness and exhaustion, according to neuroscientists and psychologists, could be an “empathy fatigue”. It is m...
Post a Comment
Read more

New development from Cambodia

Politics: Cambodian Prime Minister said his new ministers will be more focused on their ministerial work by dropping their parliarmentary positions, reported the Phonom Penh Post on Friday. Ther are around 40 Cambodian People's Party officials, who are holding dual postions both at the government and parliarmentay, are being considered to resign, added the paper.
3 comments
Read more

Will Cambodia catch the cold?

When the US sneezes, the whole world catches the cold. It is of course true because the US is the most powerful country in both politic and economy. The current financial crisis is a clear example. The US banking system and corporations are facing unstable situations; public spending is down. Economic transactions between the US and the world are less. As the result, the world export to the US decreases. The main focus here is whether Cambodia is among the cold catchers. It is hard to deny that Cambodia is still healthy while others have already been affected. Some predictions, including the IMF and World Bank, say the country's garment sector, which depends heavily on the US market, will affect by the US consumer saving. But this is somehow not really true. Americans at this financial crisis period try to cut their spending on luxurious commodities. The General Motor example of being bankruptcy is a sign that cars are not American choices anymore. Cambodian garment, on the other h...
Post a Comment
Read more