Poipet is a town to the far northwest of Phnom Penh.

It is one of the entrances to Cambodia from Thailand by overland route.Formerly, the area known as Aranyaprathet on the Thai side was famous and Poipet was known as the “landmine town” and the “repatriated refugee resettlement place”. A wave of innovative development has now arrived to Poipet.

When we heard that there are gallant Japanese “company warriors” there – NyoNyum reporters headed northwest straightaway.

Over 800 km – Road Trip Around Route 5 and 6

There are two routes from Phnom Penh to Poipet.Route 5 through [the Southern Economic Corridor] Kampong Chhnang, Pursat, Battambang and Banteay Meanchey. Route 6 which goes through Kampong Thom, Siem Reap and Banteay Meanchey. There’s some places scattered along these routes that are related to Japan.

What’s the Southern Economic Corridor?

The southern economic corridor connects Ho Chi Minh City in Vietnam to Cambodia, Thailand, and Myanmar, playing an impor tant role in the development of the whole region. By improving infrastructure such as roads, and ensuring smooth customs clearance, the area along the southern economic corridor is enhancing connectivity and developing international supply chains. For Cambodia, the Southern Economic Corridor is essential for attracting factories that manufacture parts needed by Japanese companies’ automotive and electronics factories in Bangkok and Ho Chi Minh. Also for Japanese companies, Cambodia and Myanmar are the next areas for investment after Thailand and Vietnam. The Japanese government has also supported improvements, such as Tsubasa Bridge over the Mekong River on Route 1, and is currently providing ODA loans for improvement of Route 5. From this year, to improve logistics overall, technical cooperation is also being implemented.

Catching up with Japanese “Company Warriors

Introducing “Techno Park”:

Thailand Plus One with the Convenience of Close Vicinity

This new style of industrial area, Techno Park Poi Pet, was established by Toyota Tsusho Corp in Sept. 2016.

We talked to the company’s president, Mr. Takayuki Tatsuya and vice president, Mr. Taro Tanzaki, about their challenges and future hopes for the site.

Since beginning in 1998 in Bangalore, India, Techno Park Poipet is the 6th location in the 4th country. Techno Park uses a business model for Japanese small to medium enterprises (SME) to expand overseas – contributing to “local production for local consumption”, with the background of cost savings and more demands to employ locals, and with the outlook for economic development in emerging nations. “Overseas expansion” may sound grand, but for some SMEs with little experience there are many challenges (feasibility studies, negotiation with government departments). The business aims to meet these needs. The initial investment burden is lightened by support such as administration and company establishment – and services like rental factories mean support throughout the total process. In this way Techno Park Poipet is already reducing SMEs burdens when expanding into Thailand. Because of the sudden increase in the minimum wage and rights of workers in Thailand, many companies are utilizing Thai Plus One, and setting up

facilities in surrounding nations. And so, Cambodia with its low wages and abundance of workers is attracting attention. From the latter half of the 90s, Phnom Penh has been the hub of labor-intensive industries. However, given the work contributes to production in Thailand, a closer locale is preferable. The park was created just 2~4 hours from major industrial parks in Thailand, and only 20 minutes from the border inside the Sanco Special Economic Zone. According to company president, Mr. Tatsuta, since Sept. last year 5 Japanese and Thai companies have started operations – with production levels at all but 100%. The biggest draw card for this site is the recruitment and contract staff options, and customs clearing services. Companies can also make use of Toyota’s HR development tools and logistics services. Moving forward, production contract and development services will be offered.

The whole of Techno Park approx. 7 km from the border,and Thai number trucks arriving on site. (Photo: Toyota Tsusho Corporation)

Seeing Projects Through Together

Mr. Tanzaki, currently stationed in Poipet, moved to the Japanese embassy in Cambodia in 1997, as a member of a diplomatic mission. After 2 years he returned to university. He then studied international

development and agricultural economics at graduate school in the United States and the United Kingdom. He was employed in the private sector, and gained a qualification in the SME consultant fi eld. He used this qualifi cation to gain a position with JICA Cambodia. In 2013 his role was to promote Japanese enterprises with CDC. That was a period of many Japanese companies expanding overseas. The area was established

from scratch in diffi cult economic conditions and with troubles such as availability of utilities. As a participant in creating the zone, he decided he wanted to join Toyota Tsusho. “Techno Park uses a new business model, integrating services, logistics and in the future manufacturing. Therefore, in many ways we are not stereotypical of QIPs… Investment approval negotiations to create Techno Park were made with local authorities and CDC. It’s was hard, but fulfilling work. Our mission is to serve our manufacturing tenants from many angles, and to assist with problem solving.” Mr. Tanzaki’s boss, Mr. Tatsuta, is a veteran of the Techno Park business. He has accumulated experience in India – the birthplace of Techno Park – has launched a number of sites, and has managed multiple areas. He’s energetically applying these skills to his work in Cambodia. “Our concept is to devote ourselves to helping Japanese manufacturers by lowering the barriers to expanding overseas as much as possible, whilst providing an ideal environment for manufacturing…

We create win-win relationships through facilitating local procurement for companies expanding overseas. With globalization pushing local procurement, we support the companies that are spreading, throughout the world, Japan’s high quality manufacturing capabilities, and supporting their growth. ” The experienced Mr. Tatsuta and the agile Mr.Tanzaki. Whilst they co-operate to lead staff and work with stakeholders, they work hard towards the next stage.

Nurturing Talent in a Border Town – Japanese Companies’ Roles

Techno Park is expected to not just provide economic stimulus to Poipet and Cambodia. Fostering talent in the border town – training has already begun.

● The Trainees

During our visit to Techno Park, we went to the cafeteria. We met five men who were recruited a week earlier. They were contract workers from the neighboring provinces of Pursat, Battambang and Banteay Meanchey. They also have experience working in Thailand. They had relatives already working here, or were recommended by friends. One told us: “I have worked as a day laborer in Thailand and domestically, but I am happy to get a job where I earn a salary.” Some plan to work for 4 or 5 years and then start a business locally. During induction, they were taught basics like etiquette, punctuality, teamwork and greetings. “We also learned these at school, but didn’t consciously observe them at our previous workplaces. I realize the importance of these basics and will put them to use.”Training sessions are being held for recruitment.

● Induction Training Staff

We talked to Mr. TES Sao, who has worked in HR for 4 years – and has learned from the Special Economic Zone in the Philippines. On a daily basis he makes efforts to improve the content of the lectures, so that concepts such as safety and sanitation, environment, risk, and communication can be utilized practically by the students. “I have educated more than 10,000 people in 4 years; I like my role – I want to continue to pass on my knowledge to many people.” He has a good reputation for his kind follow-up after employment commences. He would like to continue his work and be a “teacher” to many Cambodian workers.

Induction Trainer, Mr. TES Sao

Expectations of the Cambodian Govt. – Interview with the Minister

H.E. SOK Chenda Sophea Minister attached to the Prime Minister, CDC Secretary General

Minister attached to the Prime Minister, H.E. SOK Chenda Sophea, the Secretar y General of the CDC showed his understanding on the challenges of the Techno Park business and indicated his support for implementation. He talked about his expectations and enthusiasm for the project. “When formulating the policy for industrial development, We wanted to attract high, value-added industries, not just sewing. The

government welcomed companies from all over the world, and is delighted to have Japanese fi rms join our special economic zone. Poipet is a suitable location for attracting Japanese companies under the Thai Plus-One scheme. Thanks to Techno Park, I want to spread Poipet’s name throughout Japan’s business community. Meanwhile, as an administrative office, we need to encourage local administrations to understand and undertake procedures smoothly. In addition, we need to educate locals – tell them that there is work in their hometown, and they need not travel to Thailand… We, at CDC, would like to do our utmost to previde a good investment elimate so these people can live and work with their families in their hometown.”