Kampuchea Reduces Operational Risks To Achieve Normal Operation Of Enterprises

stay Spin clothing In the case of "going out", it is a common train of thought to reduce costs and directly use local labor resources. And the goal of "sea going" to build an economic park is somewhat unattainable, because it puts forward higher requirements for infrastructure construction capability and anti risk quality of investment enterprises.

In 2007, 4 Jiangsu enterprises, such as the red bean group, responded positively to the trend of economic globalization and responded positively to the "going global" development strategy. A joint Kampuchea enterprise jointly built the special economic zone of the Sihanouk harbor in the suburbs of Kampuchea, Sihanouk. As one of the first 6 overseas economic and trade cooperation zones confirmed by the Ministry of Commerce and the Ministry of finance, the West Port Region strives to build a cluster investment and trade development platform for Chinese enterprises. Although the construction of the economic zone is somewhat unacceptable to the general enterprises, in the process, how to establish friendly relations with the local society, reduce operational risks and realize the normal operation of the enterprises, is still worth drawing lessons from the textile and garment enterprises.

Adaptation and risk reduction

The 11.13 square kilometer West port area is the largest special economic zone approved by the Kampuchea government. It is located in the town of Sihanouk in Kampuchea. It is only 12 km away from the only deepwater port in Kampuchea, the port of Hong Kong. It is only 4 km away from the West port airport. It is also close to the 4 national highway, Phnom Penh, through the first capital. Although the advantageous geographical location provides convenient logistics conditions for the West Port Region, at the beginning of the park planning, the difficulty of infrastructure construction, the significant difference between local policies and laws and domestic differences are difficult problems that investors have to face.

Dai Yuee, general manager of the Sihanouk port Special Economic Zone Limited, is responsible for the implementation of the project: "in the country, the construction of industrial parks is a government act. After the government has allocated the land to the enterprises, it will help enterprises do well in the access, electricity, water, communications and sewage (five links) and peace" (Yi Ping). But in Kampuchea, infrastructure needs investors to operate. Moreover, since the private ownership of land is implemented in Kampuchea, we need to find out the local strength and prestige agents and negotiate with the landowners one after another to get the ownership of the land.

The project of the West port area was originally a barren land, with thorns and thorns, with a height drop of up to 70 meters. The calculation of the land area is very difficult. After completing the land purchase, Dai Yuee led a crowd of "pioneers" to measure the land step by step, and got the accurate area and geological condition before opening the later stage planning work. Dai Yuee now recalls that this is a long and necessary process. Because early stage infrastructure must be understood and grasped by investors. Only in this way can we lay the foundation for the normal operation of the park and reduce risks.

Because of the backwardness of Kampuchea's domestic infrastructure, the West Hong Kong Special Administrative Region has huge projects. Therefore, the West Port region has established the development idea of partial startup, development and implementation in a step by step way. At present, the "3 links and one leveling" has been completed in the area of the square area of the total area of the park, and there are 29 buildings built, and a comprehensive Service Center building with various service functions including office, residence, catering and cultural entertainment has been built. It has become one of the most perfect industrial parks in Kampuchea's local production and living environment.

Strengthen communication and resolve estrangement

In the process of "going out" of textile and garment enterprises, the most important thing is to integrate into local culture. Self - reliance and "hard work" often appear to be inadequate in the later stage of development, and the enterprises who actively integrate into the local society and build trust with them will have a lot to do in recruiting labor force and guarding against risks.

According to Dai Yuee, the people around the West Hong Kong Special Economic Zone are very honest. There is no concept of factories and industrial parks in their minds. Therefore, it is not clear what benefits the construction of the economic zone will bring. In order to dispel the doubts of the local people, in 2008, the West Hong Kong Special Administrative Region jointly organized the commencement ceremony of the park with the local government. At the ceremony, the local government introduced employment opportunities in the park and the benefits it could bring to the local economic development. The park representatives also donated $254 thousand to the local school to build schools. "We investors need to see the real benefits of the locals, so that they can fully trust you. Some local young people want to take Chinese lessons, but they can't afford the tuition fees. We provide free training, arrange our employees' obligations to teach them Chinese, 1 hours a night. These young people who learn Chinese can earn more than $20 a month, compared with other employees, when they work in factories, and their basic monthly salary is only 50 dollars at that time. "~30

Apart from the above measures, the West Hong Kong Special Administrative Region supports the development of the Kampuchea Red Cross and has contributed 135 thousand dollars to the Kampuchea Red Cross for four consecutive years. In addition, it actively builds roads for neighboring villages, helps local temples to transform and fill up land, and has established friendly relations with local communities and people. In terms of staff management, it is not necessary to buckle the wages of workers and ensure that there are 26 days' holidays a year. These measures ensure the stable operation of production in the park. The active implementation of social responsibility and integration into local culture are indispensable factors for the sustainable development of the West Hong Kong Special Administrative Region.

After obtaining the trust of the local people, establishing a good relationship with the local government and management departments is the top priority in preventing risks. "Before the completion of the west wall, there were several incidents of theft. At first, we did not know how to avoid similar incidents. But after communicating with the local police station and establishing a good relationship, we knew who was stealing. Since then, the police have helped us to do a good job of guarding against theft. Dai Yuee said.

Close look at cost remote market

At present, the number of Contracted Enterprises in the West Hong Kong Special Administrative Region has reached 34, of which half are textile and garment enterprises. For industries that focus on production cost factors, reducing production expenditures is the driving force for enterprises to "go out" and is also an important basis for considering investment targets.

According to Dai Yuee, the price of water in the West Hong Kong Special Administrative Region is almost the same as that in China, with an average of 0.5 US dollars per cubic meter, and the electricity tariff is 0.31 US dollars per kilowatt hour. "In July this year, Kampuchea built the first thermal power plant, which is very close to our park and can further protect our electricity supply. Not long ago, we also communicated with Kampuchea's power sector. They said they would gradually lower their electricity charges, and they would be reduced to 0.2 US dollars per kilowatt hour during the year. There will be room for reduction next year. "

In terms of labor cost, according to the labor law of the Kampuchea, workers have to work 6 days a week, 8 hours a day and 2 hours overtime. Dai Yuee told reporters after calculation, compared with the domestic, enterprises in each employee's annual salary expenditure can save at least 25 thousand ~3 million. In addition, the textile and garment enterprises stationed in the West Hong Kong Special Economic Zone can enjoy a maximum profit tax exemption period of 6 years. At the same time, they can also enjoy the tax exemption for import of building materials and production equipment, and foreign exchange is not controlled.

If 6 years ago, the construction of the West Hong Kong Special Administrative Region was to respond to the government's call and break through the bottleneck of domestic production resources, the role of the park's platform will now be reflected in a broader market space. "Initially choosing to establish an economic Park in Kampuchea, on the one hand is based on the stability of Sino Cambodian relations, and the political situation in Kampuchea is also relatively stable. On the other hand, Kampuchea can enjoy preferential trade preferences granted by developed countries such as Europe and the United States and additional tariff reduction and exemption. And now it seems that investment in Kampuchea can also be radiated to neighboring ASEAN countries. Under the background of the establishment of China ASEAN Free Trade Area, the market can radiate 1 billion 900 million people. Especially since the beginning of this year, China has expanded the categories of duty-free products imported from Kampuchea, which reflect the market superiority created by Kampuchea for investors. Dai Yuee said.