Phnom Penh (FN), Oct. 10 – Prince Real Estate Group (PRE) has taken a significant step to attract international investors to Cambodia through a strategic partnership with Nong Chuang Gang (NCG), a commodity distribution company based in China's Shandong Province. This collaboration will establish a multi-industry distribution center aimed at enhancing cross-border trade and solidifying Cambodia's position as a key investment destination in Southeast Asia.
The Memorandum of Understanding (MOU) signing ceremony, held at Prince Holding Group's headquarters in Phnom Penh, marks a milestone in strengthening economic ties between Cambodia and international markets. This partnership aims to create a gateway for Chinese and other international enterprises to enter the Cambodian market, boost economic development, and drive innovation in the real estate sector.
The project will involve the repositioning of Prince International Plaza into a 300,000-square-meter, multi-functional complex, integrating:
- An auxiliary and intermediary materials distribution center focusing on the garment, construction, and other industries
- A centralised procurement and sales hub
- Logistics warehousing
- A cross-border e-commerce operations center.
Phase one of the project, spanning over 30,000 square meters in Phnom Penh, will include 20,000 square meters of retail space, cargo warehouses, and office facilities to support cross-border e-commerce activities.
Edward Lee, Chief Executive Officer of Prince Real Estate Group, stated, "We are excited to collaborate on this transformative project that will serve as a catalyst for economic growth and innovation in Cambodia. The partnership with NCG aligns with our mission to attract international investors, reduce operational costs for businesses, and set new benchmarks for real estate development beyond traditional projects."
As a key partner in this initiative, NCG will lead efforts in investment promotion, cross-border e-commerce operations, and international import-export business management.
"We believe this partnership will unlock new opportunities for enterprises looking to enter the Cambodian market," said Yanling Mei, Group CEO of Nong Chuang Gang. "By establishing a comprehensive distribution and logistics hub, we can leverage the strengths of both PRE and NCG to provide competitive pricing for goods and efficient logistics solutions. Ultimately, this initiative will benefit not only Cambodia but the broader Southeast Asian market."
This collaboration aims to drive a shift in Cambodia's real estate sector by introducing multi-functional development models that cater to both commercial and logistical needs. The project is expected to reduce material and logistics costs while stimulating the growth of ancillary industries, paving the way for more efficient and sustainable business practices.
Future plans for this partnership includes expansion from Phnom Penh to Sihanoukville, to further establish itself as an additional multi-industry distribution center in the coastal province.
Both parties are committed to ensuring that the project adheres to local regulations and contributes positively to Cambodia's socio-economic development, benefiting all stakeholders in the country.
For the first eight months of 2024, Cambodia's international trade experienced significant growth, underpinned by a 24.5 per cent increase in trade with China. This growth was driven by agreements such as the Regional Comprehensive Economic Partnership (RCEP) and various free trade agreements, which have facilitated increased trade flows between Cambodia and its global partners.
=FRESH NEWS
