Leading Taiwan-based curtain manufacturer and seller Nien Made Enterprise Co Ltd has revealed plans to expand in Cambodia to avoid the fallout from the Sino-US trade war, the Taipei Times reported on Saturday.
A Nien Made Enterprise public relations officer told the Times that the firm will expand its production line in Southeast Asia and will shift orders for finished products from China to Cambodia to avoid the risk of US tariffs.
“The US-China trade dispute has forced us to expand production in Southeast Asia,” he told the Times, adding that Cambodia will offset a labour shortage in China.
Currently, about one-third of the company’s ready-made products, such as blinds, are made in China, but it plans to gradually shift the bulk of its operations to Cambodia over the next few years.
Garment Manufacturers Association in Cambodia (GMAC) deputy secretary-general Kaing Monika welcomed the company’s plans. He said the Kingdom needs sustainable private sector development to achieve its economic goals by 2030 and 2050.
“It is good news for Cambodia that there is an increase in investment in the industry and a presence of new products and new investors that can contribute to better economic growth in Cambodia,” he said.
However, he said Cambodia needed to strive even more in a fast-changing, competitive global environment.
“We still have opportunities to improve in terms of business costs, such as the cost in doing business, transportation costs, documents and higher minimum wages,” he said.
Nien Made Enterprise currently operates a window blinds factory in Cambodia.
Taiwan-based Eclat Textile Co, a sportswear supplier to Nike Inc and Lululemon Athletica Inc, is also slated to invest in more facilities in Southeast Asian countries – including Cambodia – as it plans to “move beyond Vietnam” amid heightened risks of US tariffs.
In the first half of this year, the Council for the Development of Cambodia approved 153 investment projects worth around $5.2 billion, an increase of 48 from the same period last year.
According to GMAC, 34 new factories opened in the first half of this year, of which 32 produce travel goods and two footwear.