TAITRA to establish trade office in Cambodia

With the forthcoming establishment of a Taiwan trade office in Phnom Penh, Taiwan businesspeople in Cambodia are set to receive more ASEAN market information. (Courtesy of Taiwan Commercial Association in Cambodia)

 Date：07/16/2014

Taiwan External Trade Development Council (TAITRA) will open a trade office in mid-August in Phnom Penh, the eighth such office in the 10 Association of Southeast Asian Nations member states.
“Establishment of relations with ASEAN members helps boost Taiwan’s chances of joining the Regional Comprehensive Economic Partnership,” said TAITRA Chairman Wang Chih-kang, who is due to attend the trade center’s opening ceremony.
ASEAN is Taiwan’s second biggest export destination, and Cambodia is playing an increasingly important role within the bloc. According to the International Monetary Fund’s forecast, Cambodia’s economy is expected to grow at an average 7.3 percent between 2013 and 2017.
Phnom Penh is making a concerted effort to encourage investment, offering tax breaks to foreign businesses setting up in the country and zero tariffs on goods imported for processing into exports.
Developed countries such as EU member states and the U.S. are giving some Cambodian exports most-favored nation treatment, making it a popular destination for foreign companies to establish overseas production bases.
Total trade between Taiwan and Cambodia also grew rapidly, with Taiwan’s exports to the nation increasing from US$324 million in 2009 to US$667 million in 2013.
Taiwan is Cambodia’s seventh biggest foreign investor, with approximately 200 Taiwan firms involved in 298 investment cases totaling US$935 million from 1994 to 2012, according to the Council for the Development of Cambodia.
Taiwan first applied to establish a trade office in Phnom Penh in 2009, and opened an office in fellow-ASEAN member Myanmar at the end of last year.
“Taiwan firms have contributed a lot to Vietnam’s economy in recent years, and this has caused Cambodia and Myanmar to change their attitude toward Taiwan,” Wang said.
According to Wang, interest from local firms in Cambodia has been growing, especially since the anti-Chinese riots in Vietnam in May. “Cambodia has a weak economic base and an incomplete production chain. Taiwan businesses can help with setting up facilities and producing intermediate goods in such fields as food, textiles and lumber processing.”
Taiwan is also currently engaged in talks to open a trade office in ASEAN member Laos. (SDH)