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Kandal Province Investment Information Municipality and Province Kandal Province Investment Information Kandal Province Kandal Road Network 43 Municipality and Province Kandal Province Investment Information I. Introduction to the Province Kandal province completely surrounds the national capital, Phnom Penh, with a total area of 3,211.76 km 2. The province has a large potential as a central base for business and trade in Cambodia based on its geographic advantages and well developed transportation infrastructure. All 12 National Roads connecting to Phnom Penh also pass through the Province. National Road No.1 runs from Phnom Penh to Ho Chi Minh City, and National Road No.4 runs to Sihanoukville, the only deep seaport in Cambodia. Four large rivers (the upper Mekong, lower Mekong, Tonle Sap and Tonle Basac run through the Province. The total population in this province is roughly 1,155,030, of which 372,731 are women, with most of the provincial population being employed in garment and footwear factories, handicrafts, and community and other enterprise sectors. Much of the population also commutes to work in the capital Phnom Penh on a daily basis. Recently people from neighboring provinces have also come to work in the factories located within the province. Two Special Economic Zones currently exist within the province (the Phnom Penh SEZ and the Goldframe Pak Shun SEZ), encouraging further investment in various manufacturing sectors in the province. Kandal province is also expected to play a role leading economic activity within Cambodia. II. Overview of the Province Provincial Capital Ta Khmao Total area of the Province 3,211.76 km 2 Landscape Typical plain wet area Total Population 1,155,030 persons Population Density 360 persons/km 2 Population age over 18years 720,884 persons (Men: 348,153, Women: 372,731) Temperature 29 o C - 32 o C (Average: 30 o C) Rainfall 1,238.9 mm/year Administrative Boundary Number of districts: 11 Number of communes: 127 Number of villages: 912 Adults with literacy (15-45years) 724,091 persons (Men: 318,401, Women: 406,690) Provincial Border East: Prey Veng Province West: Kampong Speu and Takeo Provinces North: Kampong Cham and Kampong Chhnang Provinces South: Takeo Province and Vietnam Number of Establishments Number by size 1-10 (persons) 39,667 11-50(persons) 571 51-100 (persons) 72 101 or more 49 Total 40,359 III. Infrastructure Electricity Total Supply Amount 1,108.66 MWH (EDC: 98.01MWH, IPP: 1,010.65MHW) Electricity supply for Kandal Province is covered by EDC Phnom Penh. Water Supply amount Supply capacity: 2,641,392m 3/year Major water supply plant 31 plants (21 are in operation, 9 are under construction) Transportation Vehicles (car, bus, truck and motorcycle) and vessels Road 1 digit national roads Total: 146.57 km (7 NRs of 1 digit) 2 digit national roads Total: 209.36 km (11 NRs of 2 digit) Provincial (3digit) roads Total: 374.22 km (28 provincial roads) Rural roads: 1012 roads Total: 2,200 km (1,012 rural roads) Total length 2,930.15 km Rail road Phnom Penh – Battambang: 18km, Phnom Penh-Kampot:24km, Total length: 42km Airport None Port Dry Port None Sea Port None River Port One River Port in Kien Svay District International Ka-om Samnor, located in Lek Deok District (Border with Vietnam) Check Points Chrey Thom Khnar Taing You, located in Koh Thom District (Border with Vietnam). 44 Municipality and Province Kandal Province Investment Information IV. Investment 1) Special features or strong points for the Province in terms of investment Z Geographic Location: Completely surrounds the national capital, Phnom Penh. Z Fertile Land: Rich and accessible water resources (rivers, lakes, creeks, and reservoirs). Z Transportation: Accessible by both inland and water transportation. Z International border checkpoint and bilateral border checkpoints with neighboring Vietnam. 2) Investment opportunities or potential sector Z Agriculture: Agro-industries such as rice, corn, bean, sugar, mango and vegetables. Z Industry: 76 factories (mainly garment and footwear sectors), including SEZs. Z Tourism: 6 attractive tourism sites. 3) Approved QIP by Provinces-Municipalities Investment Sub-committees (PMIS) Investment Name Share Location Date of Approval Capital (USD) Diamond Sun Co.,Ltd Cambodia Decho, Chek island 561,540 19/07/2005 Tian Yee Industrial Development Co., Ltd China Kandalstrung 1,127,090 24/02/2006 Cambodia: 51% Asia Motors Co., Ltd Ansnoul District 1,253,150 17/12/2007 Japan:49% Green Tech Eco Pak China Ansnoul District 1,624,115 18/11/2009 4) SEZ in the Province Goldfame Pak Shun SEZ Location Sa Ang District, Kandal Province Land area 80 ha Project status Infrastructure Development (fencing) Facilities None Zone developer Goldfame Pak Shun SEZ Co., Ltd Kandal SEZ Location Ksach Kandal district, Kandal Province Land area 105 ha Project Status Infrastructure Development Facilities None Zone developer Kandal S.E.Z Co., Ltd V. Industry 1) Current Major Industries Factories and Business Enterprise: Total of 73 (garment and footwear, and animal hide products). Small and Medium Enterprises: 1,761. 2) Priority Industries to be Promoted While the current major industries are garment and footwear industries, the provincial government is planning to promote food processing industries such as canned fruits, fresh fruit juice, rice milling and drying, and packaging as the next priority industries. 3) Reasons or Measures for Promotion of the Priority Industries Z The advantageous location connecting to both domestic and international markets as well as an abundance of agricultural products for investors in food processing industries. Z Food safety standard based on GMP (Good Manufacturing Practices) and GHP (Good Hygiene Practices) for the province will be strengthened through the promotion of food processing industries. Z Promotion of rice-milling plants to increase rice exports in line with the government’s 1 million ton rice export promotion policy. 4) Economic Land Concessions related to Agro industry in the Province: None 45 Municipality and Province Kandal Province Investment Information VI. Natural Resources 1) Agriculture Z Agricultural land and cultivated area: Total & by crop Name of Crop Cultivated area (ha) Yield (ton/ha) Total Production (ton) Rice (Dry + Wet) 106,375 3.801 382,411 Subsidiary and Industry crop 430,28 3.994 171,880 Fruit and permanent crop 5,879 N/A N/A Total 155,282 N/A N/A Z Irrigation area Natural water reservoirs N/A Irrigation Line: 199 Total length: 670.25 km Sub-irrigation line: 85 Total length: 402.67 km Z Rubber None Z Provincial specialized fruit and product Mango 2) Forestry: None 3) Main minerals production and mining area Name of Mineral& Number of mining Production Amount Mining Area Zinc N/A Baseth Mountain Monlipden N.A Baseth Mountain 4) Fishery Z Major Fishery Product Type of Fish Production Amount Fresh water fish 79,473.69 tons Z Aquaculture Productions Type of Product Production Amount Fish 6,024 tons Crocodile breeding 3,697 crocs 5) Tourism Z Historical/cultural area Name Appeal points Phnom Preah Reach Troap A mountain topped with the spires of stupas rearing up from the plains. The stupas on the main hill house the remains of past monarchs. A new large stupa at the end of the mountain ridge was completed in 2002 and built to hold relics of the Buddha. This mountain was also at one time an ancient capital. Kean Svay Krau Pagoda Many kinds of vegetable and fruit are sold here. The site is popular with tourists from Phnom Penh who come to see the floating houses and restaurants, where they can enjoy delicious foods such as grilled chicken and fish, as well as jackfruit, mango and coconut. Phnom Prasith This mountain has beautiful scenery, abundant fresh air and is rich in culture and history. It also has a large 27m statue of reclining Buddha reaching nirvana. Z New found area which potential for tourist Name Appeal points Toul Reachea Pagoda This pagoda is located in Po Ban Commune, Koh Thom District. The monastery became a tourist attraction due to its attractively artistic building. Additionally, as people believe in the goodness and effectiveness of this monastery, the monastery attracts many local visitors who go there, especially during major public holidays and on Buddhist holidays, to pray for happiness and other desires. Vihear Sour Pagoda The pagoda is located in Ksach Kandal District. Many special events are celebrated at this pagoda annually such water buffalo and horse races, and traditional Khmer boxing as part of the ceremony for the Pchum Ben festival. 46 Municipality and Province Kandal Province Investment Information VII. Cost of Doing Business 1) Real Estate Z Land Category Sub-Category Price (USD /m 2) Industrial Land First industrial land 100-150 Second industrial land 50-100 Third industrial land 20-50 Commercial Land First commercial land 80-100 Second commercial land 50-80 Third commercial land 5-50 Residential Land First residential land 80-100 Second residential land 50-80 Third residential land 5-80 Z Building Category Sub-Category Price (USD /m 2) Office Rent Primary Area (City centre) 10-15/month Secondary Area 5-10/month Factory rent (Ready-built) Prime area 3-5/month Other area 1-3/month Factory purchasing Prime area 80-100 Other area 5-50 Warehouse cost 4-6 2) Manpower Cost Category USD/Day Riel/Day Skilled worker 4.46 17,840 Unskilled worker 2.53 10,120 Technician 6.57 26,280 Engineer 15.73 62,920 Middle management 5 20,000 3) Utility Cost Category Sub-Category Price Electricity EDC: Local residence 720-820 Riel/Kwh (Wholesale: 630 Riel/kwh) EDC: Customer paid by government budget 820 Riel/Kwh EDC: 820 Riel/Kwh - Embassy, Foreign residence - Commercial and industrial sectors IPP: Local residence 2,900 – 3,500 Riel/Kwh IPP: Customer paid by government budget N/A IPP: Embassy, Foreign residence N/A - Commercial and industrial sectors Water cost 1,800-2,700Riel/m 3 Gas tariff For domestic use USD20.5/15 kg For industrial use N/A Fuel cost Premium petrol 5,500 Riel/L Regular petrol 5,000 Riel/L Diesel 4,500 Riel/L 47 Municipality and Province Kandal Province Investment Information VIII.
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