| |
Keynote Address at the Inauguration of the “Sugarcane Factory”
Koh
Kong, January 25, 2010
Your Venerable Monks,
Excellencies, ladies and gentlemen distinguished national and international
guests,
Dear the compatriots,
It is my great
pleasure to be here to inaugurate the sugarcane factory which is a joint
investment of Koh Kong Industry Co., Ltd. and Koh Kong
Plantation Co., Ltd. This factory, which is located in Chi Kor Leu Commune, Sre Ambil District of Koh Kong Province, in addition to its dynamic
contribution to development effort and improved living standard, will transform
this area into a production base for domestic supply and export markets and
subsequently a developed border zone. In this sense, we are proud of this
achievement since it will be a source of new opportunities of socio-economic
development including productivity improvement, job creation, and local
development.
I highly welcome
the investment of both companies while Cambodia is in great demand of
contribution from the private sector, as I have often said “private sector is
the engine of growth”. I would also like to encourage the implementation of
this investment project, both in-farm and off-farm work, so that the business
will succeed. The successful operation of this factory will send a signal of
favorable and predictable investment environment to international investors. I
highly appreciate all companies investing and operating in Cambodia amid the
global financial and economic crisis. Along with this, I would like to take this
opportunity to reiterate the Royal Government’s firm stance on welcoming ad
encouraging investment in Cambodia. We will strive to strengthen and expand
economic cooperation and broaden industry and trade development through the
elimination of trade barriers. This task will allow us to raise the capacity and
quality of domestic production, and improve Cambodia’s competitiveness in the
regional and global markets. Along with this, I would also like to extend my
appreciation to related ministries/institutions, local authorities, government
officials, armed forces and all the compatriots for their concerted effort to
solve smoothly any issue arising from the construction of this factory and
create a favorable environment to attract new investment projects.
Prices of
agricultural products will increase both for today and tomorrow since the demand
for human consumption is gradually increasing and rising oil price makes the use
of some agricultural products relatively more attractive for energy production.
This represents a new opportunity for a country with vast agricultural
potentials like Cambodia but a threat to those without this advantage,
especially poor countries. Considering this perspective, Cambodia prioritizes
human consumption demand while energy production demand is also taken into
account, like what we are doing in this area.
Agriculture
represents a big chunk of growth but we fail to maximize gain from this sector
due to underutilization of arable land, limited diversification and lack of
production means and technologies. In fact, if we look at the sugar cane
plantation, Cambodian farmers have practiced the mixed sugar plantation of about
13,297 hectars by receiving the yield of about 385,588 tons in 2008. But, this
crop has not been processed into substantial and industrialized products yet. It
is just to serve the daily need of the people’s living. Cambodia has, so far,
had small enterprises for palm sugar production in order to meet the small
demand of the people in their daily living. Through this, Cambodia does not have
sufficient sugar to meet the need of the people nation-wide and Cambodia is
necessarily importing the white sugar and many thousand tones of sweet products,
in particular, from Thailand and Vietnam. According to the report in 1990,
Cambodia needed the sugar of 43,000 tons, equal to 5 kg for each individual per
year among the 8,6 million people and in the year 2000 Cambodia needed the sugar
of 80,300 tons, equal to 7,3 kg for each individual per year among the 11
million people. Recently, based on the statistic in the year 2007, Cambodia
imported the sugar and other sweet products from 18 countries in total of 30,340
tons. Based on this data it is shown that Cambodia needs to be almost totally
dependent on the import of sugar and other sweet products from foreign countries
while Cambodia has enough natural resources to produce those products.
Realizing that
Cambodia has strong potential in growing sugar cane to be processed as white
sugar, together with the strong commitment of Cambodia toward the development of
private sector through promoting this kind of investment, 8 companies proposed
the investment on planting sugar cane and building sugar factories. The Royal
Government of Cambodia has warmly welcome this initiative by allowing those
companies to receive, in principles, the investment on growing sugar cane and
building sugar factories under the scheme of economic land concession, in which
there are 2 companies located in Koh Kong province and 3 companies located in
Utdor Meanhey province, 1 company located in Kratie province and 2 companies
located in Kampong Speu province with the total economic land concession of
66,000 hectars. At the same time, the Sugar Industry Company Limited is to invest on the economic land concession of 9, 700 hectars in Sre Ambel
district of Koh Kong province, and according to the report by December 2009, the
Company has claimed the land for about 5, 288 hectars, which is above the plan
of 2, 488 hectars, and with the plantation of 2, 910 hectars, equal to 103 % of
the implementation plan. As for the Koh Kong Plantation Company Limited,
it has to invest on the economic land concession of 9, 400 hectars in Botum
Sakor district of Koh Kong province, and according to the report by December
2009, the Company has claimed the land for about 4, 621 hectars, which is above
the plan of 1, 506 hectars, and with the plantation of 4, 421 hectars, equal to
140% of the implementation plan. At the same time, both companies have
cooperated to build the sugar factory on the land of 60 hectars in this area
with the ability to absorb the fresh sugar of about 6, 000 tons per day and
ability to produce 600 tons of sugar per day. However, the company can only
produce the fresh sugar to support the factory of only 2, 000 tons per day due
to the shortage of labor forces. In fact, during the growing and harvesting
season, starting from January to April 2010, both companies need 5, 000 to 6,
000 contracted workers for daily operation, in which the companies have only 4,
000 workers. Each worker will receive about 10,000 Riel to 20,000 Riel per day.
Also, these companies do need employees, skilled workers and contracted workers
of 350 people to work in the factories and their salary will range from USD 80
to 120 USD. This statistic shows that the companies will contribute to solving
employment opportunities and income generation for the people, which is
responding to the objective of poverty reduction through expanding additional
jobs. When our people have enough income for their living we can reduce the
migration of the people from this area to the cities or other urban areas.
Along with the
white sugar factory, which is to be inaugurated now, we will also receive a
number of sugar factories in Utdor Meanchey province, which is planned to be
completed by 2011, with the ability to absorb the fresh sugar cane of about 7,
000 tones to 11, 000 tons per day, and ability to produce sugar from 700 tons to
1,100 tons per day. The sugar factories in Katie province, which will be
completed in 2013, can absorb the fresh sugar cane of 5, 000 tons per day and is
able to produce 500 tons per day. Therefore, based on the above projects,
Cambodia can produce 7, 2000 tons of sugar in 2010 and could be increased to
156, 000 tones to 204, 000 tons in 2011, and in the year 2013 we will be able to
produce white sugar from 216, 000 tones to 264, 000 tones. The quantity of these
products can make Cambodia able to fully supply the local demand and is also
able to export more.
In this regard,
the establishment of this sugar factory will make the farmers, who plant sugar
cane, have new markets; and this factory will respond to the local sugar demand
by substituting the import. This clearly shows the attention made by the Royal
Government by not just only setting out the national development strategy and
fully promoting the local resource potential to receive economic efficiency, but
also expanding and strengthening the Cambodian competitive productivity and
capacity in the context of globalization to ensure sustainable economic growth.
In fact, this
factory would be the largest sugar factory in Cambodia for meeting domestic
demand and exports, which will increase the domestic production of import
substitution goods and increase market competitiveness.
Beside those
direct benefits as mentioned above, this sugar factory will create abundant
opportunities for the entire socio-economy in Cambodia. Our people could
directly earn their income from this factory through wholesaling or retailing
sugar at provinces, cities, urban and rural areas, providing transportation
services, repairing and maintenance services, establishing handicraft or other
supporting industries, encouraging farmers to plant sugarcane to supply to this
factory. The other significant benefit that Cambodia gains from this factory
which is a long-term development strategy include knowledge, skills and
technology transfer to the country for the development of the agro- industry and
those industries that support agriculture sector. Evidently, in its Capacity
Building Program, this factory has sent 52 of its staffs to attend technical
training overseas. This program will increase the flow of knowledge and skills
to Cambodian people, which is the strong foundation for industrial development
in Cambodia.
The inauguration
of such large scale factory is another proof among other achievements that the
Royal Government of Cambodia has achieved during the Fourth Legislature of the
National Assembly. It reflects the righteousness and successes of the government
in implementing the Rectangular Strategy-Phase II as adopted in
this mandate.
I also would
like to take this opportunity to advice relevant Ministries, local authorities,
the company and people living in this area to continue to pay high attention
with great accountability, contribute to the project development and progress,
and ensure the sustainable operation of this factory as follow:
1st : Relevant Ministries, institutions, especially the
Ministry of Labor and Vocational Training must cooperate, coordinate and
disseminate information to all people about the labor needs of the company to
reduce the unemployment of people.
2nd: Relevant Ministries and competence authorities, especially the Ministry of
Industry, Mines and Energy must strongly cooperate with the company by having a
clear monitoring program and consistently control the program to ensure that the
production and outputs are in compliance with the industrial standard.
At the same
time, the Ministry of Environment must take a lead in controlling the industrial
waste and cooperate with the company in implementing the principle of Clean
Technology to reduce waste and other negative impacts to the environment and
people, as well as creating a good environment to build trust from new
investors.
3rd: All levels of local authority must cooperate with the company to ensure good
security, and order in the area.
4th: The company must try its utmost to ensure that its products complies with the
technical standard, strengthening and upgrading capacity to promote the image of
Cambodian products and resolve all challenges relating to the market
competition. Moreover, the company must respect the Labor law, Environmental Law
and other existing regulations. The company must adhere to the principle of
environmental and social responsibility by cooperating with the Ministry of
Industry, Mines and Energy and the Ministry of Environment in enforcing the Law
on Factory and Handicraft Management, Environment Protection Law, for the
welfare, safety, and try to avoid any negative impacts on social environment,
that may cause from the operations of this sugar factory. Additionally, the
company must continue to expand its production as agreed in the contract, by
ensuring reasonable competitive market price for agro-products, providing sugar
cane seeds, tools, planting techniques, soil laboratory to improve soil quality
for local farmers and other areas that have potential for sugar cane plantation,
which the company can rely upon for supplying for this factory.
At the same
time, the company must help develop this area and take care of the welfare of
its employees and their families, by building houses, health centers, Buddhist
Temples, schools, water ponds, wells and other infrastructures as the foundation
for facilitating the working and living condition of its employees and their
families to raise their living standard and to develop this area.
5th: Other enterprises, handicrafts, industries and all people must show stronger
support for local products to motivate entrepreneurs and producers to produce
more products for the socio-economy of Cambodia. When we do that, we will have a
mechanism of mutual support, create the equilibrium of demand and supply,
promote national competitiveness of Cambodia which is the key factor for
accelerating economic growth and national development.
6th: People living in this area and other nearby areas, must stop hunting wildlife
and encroaching forest. You should turn to sugarcane plantation, find job in
this sugar farm factory to raise your living standard, to avoid danger jobs,
preserve the forest and wildlife to attract more tourists to visit this area.
In this spirit,
I firmly hope that all relevant ministries, local authorities, company and all
people will continue to carry out their duties with high accountability.
Last but not
least, I wish the company success and fast progress in its production,
distribution, and sales with strong support from customers nationally and
internationally.
Finally, with
the inauguration of this “Sugarcane Factory” in Koh Kong province, May I
wish Your Venerable Monks, Excellencies, Ladies and Gentlemen, Distinguished
National and International Guests, Compatriots the Four Gems of Buddhist
Blessings.
EndItem.
|
|