Honda Motor Co. Ltd., the Japanese automobile giant, has recently confirmed the company’s intentions to expand manufacturing investments in the Kingdom in upcoming periods, following 25 years of successful operations in the country thus far via its local subsidiary N.C.X. Co., Ltd.
The decision was conveyed during a meeting between the company’s high-level representatives led by Minoru Kato, Executive Director and Vice President of Honda Motor Co. Ltd. and Prime Minister Hun Manet at the Peace Palace in Phnom Penh, on September 20.
Kato noted that the ongoing support and facilitation granted by the Royal Government of Cambodia (RGC) has significantly contributed to the automotive company’s success over the last quarter of a decade.
In particular, he commended the national prioritization of industrial development through the introduction of the ‘Cambodian Industrial Development Policy 2015-2025’, which has offered a legal framework for the firm’s success; as well as the RGC’s continued support for local vocational training programs, which effectively aided the ongoing development of a competent local workforce for the firm’s operations.
Kato said that the company was wholly committed to aligning with RGC’s development strategies and policies moving forward, and will continue its broad collaborations with relevant ministries and institutions to further support economic development policies.
He also told Mr Hun Manet of Honda’s plans to further expand its investments and business operations in Cambodia in the coming periods.
In reply, the premier congratulated Kato on the company’s progress and success thus far, both in Cambodia and globally. He applauded the company’s commitment to Cambodia over the last 25 years through their ongoing investments, which he said have represented a significant contributor to the Kingdom’s socio-economic development.
Mr Hun Manet said that the company’s operations in the Kingdom have created thousands of jobs for Cambodian workers, and the firm’s ongoing commitment to vocational training initiatives has effectively enhanced the local economy’s skills base.
The Prime Minister also confirmed the RGC’s current prioritization of the ‘Automotive and Electronics Sectors Development Roadmap’ and the nation’s increasingly favorable policies and incentives for assembly plants investments.
As well as reiterating the RGC’s intentions to continue its support for Honda’s operations in the country, Mr Hun Manet encouraged the company’s exploration of opportunities to increase its local component production.
As highlighted during an official visit to the Honda Motorcycle Factory in Phnom Penh in June by Hem Vanndy, Minister of Industry, Science, Technology and Innovation (MISTI), the facilities capacity allows for the manufacture of around 1,500 Honda Dream motorcycles per eight-hour shift.
Currently, most components for the highly-popular Honda Dreams are produced in Cambodia with some locally produced parts also being exported to neighboring countries.
There remains, however, the potential production of some of the over 500 components for Honda motorbikes, given the firm’s plans for new investments.
N.C.X. Co., Ltd. is the exclusive manufacturer and distributor of Honda motorcycles in Cambodia.
The firm first established itself in the market in 1992, importing fully-built Honda motorcycles into the Kingdom.
Following swift growth in domestic demand and supportive business conditions, the firm established its first production line in Phnom Penh in 1999.
The small-scale production facility marked the beginning of the firm’s shift from importing to assembling motorcycles in the country.
As of 2024, the company not only assembles motorcycles in the Kingdom but has also begun producing key motorcycle components.
To date, Honda has produced over 4.3 million motorbikes in Cambodia, and has an extensive network of 168 dealers nationwide.
The company has also created close to 2,000 jobs nationwide.
(Source: khmertimeskh)