Cambodia’s energy costs deter investors

Cambodia’s infrastructure is deterring highly anticipated investment into the production of raw materials to support its rapidly growing garment sector, experts say. While garment exports rose 10.2 per cent to $5.48 billion last year, the increase of raw materials imported to support this growth increased about 20 per cent from $2.6 billion in 2011 to $3.1 billion in 2012, according to figures from the Ministry of Commerce. … Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia, said electricity costs are the simple answer to a lack of raw material production and that this is not a new phenomenon with investors anxiously waiting for power costs come down to an accessible level. … Andrew Hong, permanent secretary-general of the Association of Southeast Asian Nations (ASEAN) Federation of Textile Industries said: “Strategically of course there would be a big market for raw material consumption in Cambodia, however in order to produce a raw material like yarn or fabric, the infrastructure may not be there.” …

http://www.phnompenhpost.com/2013020761221/Business/cambodia-s-energy-costs-deter-investors.html