Cambodia Security & Safety: What Investors Should Actually Expect

Virtue Medical Group, one of the world’s leading manufacturers of medical protective equipment, invested in Cambodia in 1998 to establish a production facility. This venture has enabled the distribution of ‘Made in Cambodia’ protective clothing to various parts of the world, garnering recognition from internationally renowned brands, including Fortune 500 companies.

At that time, Prime Minister Hun Sen’s hometown of Kampong Cham province had an abandoned factory that had been inactive for 20 years. Prior to this, several companies had visited the site but had all given up on the idea. Drawing upon his extensive experience in investing and establishing factories in the Philippines, President Yang Kecheng of Virtue Medical Group successfully restored and operationalized the factory within just six months. The inauguration ceremony for the commencement of production was personally presided over by Prime Minister Hun Sen.

In the early stages of the COVID-19 pandemic, there was a global shortage of medical supplies, prompting many countries to dispatch special flights to Cambodia to transport medical supplies manufactured in Cambodia back to their respective nations. These supplies became crucial tools in the fight against the virus.

On September 30th, Virtue Medical Group officially inaugurated its medical-grade glove factory in the Manhattan Economic Special Zone in Bavet City, Svay Rieng Province, Cambodia. The ribbon-cutting ceremony was presided over by General Hun Manet, the eldest son of Prime Minister Hun Sen and Chief of Staff of the Royal Cambodian Armed Forces.

“This is Cambodia’s first surgical-grade and medical-grade glove factory, with an initial investment of approximately 30 million US dollars, making it our largest investment in Cambodia to date,” stated Yang Kecheng. “Currently, two production lines are operational, with an annual capacity of 600 million gloves. This not only helps Cambodia achieve self-sufficiency but also enables exports worldwide, promoting the global market presence of high-quality ‘Made in Cambodia’ products.”

“This fully automated factory, which is also the first in Cambodia to employ chemical engineering technology, marks the grand opening and signifies a new stage of development for the Manhattan Economic Special Zone.”

Yang Kecheng, serving as the Chairman of the Manhattan Economic Special Zone, highlighted that the speed and efficiency demonstrated in the restoration of the factory in Kampong Cham province instilled immense confidence in Prime Minister Hun Sen. At that time, Prime Minister Hun Sen aimed to emulate China’s development of processing and export industries, striving to create an economic miracle. He conceptualized the idea of developing economic special zones in Cambodia and invited Yang Kecheng to invest in establishing Cambodia’s first economic special zone.

Over the past 18 years, we have grown from nothing to nearly 300 hectares, starting from 158 hectares. Currently, the Manhattan Economic Special Zone has become the largest economic special zone in Cambodia. It employs over 35,000 workers, accounting for 5% of the national workforce, and contributes over 6% to the country’s total export value annually.

Prime Minister Hun Sen meets with Yang Kecheng (right) in March 2020.

In response to Prime Minister Hun Sen’s concept of a ‘Green Economic Special Zone,’ Yang Kecheng and his team dedicated one year to contemplating and developing the vision of creating ‘Manhattan Economic Special Zone 2.0.’ This will be Cambodia’s first ‘Green Economic Special Zone’ and will encompass a logistics center and a Smart City. Furthermore, Yang Kecheng has decided to allocate land for the construction of affordable housing, enabling the hardworking workers within the special zone to have their own homes.

Yang Kecheng felt immensely proud and honored when Prime Minister Hun Sen and the future Prime Minister, General Hun Manet, visited the Manhattan Economic Special Zone and presided over the ribbon-cutting ceremonies.

“Our decision to launch Manhattan Economic Special Zone 2.0 showcases our unwavering confidence in Prime Minister Hun Sen’s leadership and the long-term political stability of Cambodia.”

Regarding the recent influx of negative news coverage about Cambodia in foreign media, Yang Kecheng believes that certain foreign media outlets have excessively sensationalized and targeted Cambodia, which is both unfair and misleading.

He emphasized that, in fact, Cambodia has already taken action to combat illegal activities such as online fraud and online gambling two to three years ago, dealing a significant blow to these activities.

“Due to these reports, I specifically invited a media outlet from Taiwan to conduct an interview with me, in order to showcase the positive aspects of Cambodia,” said Yang Kecheng. “Cambodia has many industries that are dedicated and working hard to create employment opportunities, generate foreign exchange, and enhance the strength of our own industries, enabling these industries to flourish and bear fruit worldwide.”

Yang Kecheng also specifically emphasized that General Hun Manet is concerned about the issue of negative reports undermining Cambodia’s international image.

He stated that General Hun Manet, using Bavet City where the Manhattan Economic Special Zone is located as an example, highlighted that although the area has multiple casinos, it is also home to several economic special zones, emphasizing that it is not solely a “gambling city” heavily reliant on the casino industry.

“General Hun Manet stated that after the establishment of the Manhattan Economic Special Zone, numerous economic special zones have been developed in the surrounding areas. Currently, there are hundreds of foreign investments and manufacturing facilities, creating tens of thousands of job opportunities. Many dedicated individuals are working diligently… (contrary to the inaccurate depiction in negative reports). Such negative portrayal is truly unfair to Cambodia.”

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