Zhou Mi Zhao Shanshan
“My parents are both ordinary farmers,” revealed Makara, a Cambodian employee of Sihanoukville Special Economic Zone (SSEZ). “Before I started working in the zone, I helped my parents sell their products for a humble income. In recent years, I was able to buy a car and a plot of land on which to build a new house.” The changes in living standards Makara has experienced since childhood are breathtaking.
Having forged ahead for a decade, the SSEZ has become a “golden rice bowl” for local people. Most of the 21,000 employees in the zone have benefited from development as much as Makara.
‘Golden Rice Bowl
In April 2007, HOdo Group joined hands with other Chinese and Cambodian enterprises to build the SSEZ with a total planned area of 11.13 square kilometers. The purpose of the zone was to meet HOdos demand for factories in Cambodia. At the same time, the zone is evolving into a cluster investment and trade platform for Chinese and foreign enterprises investing and trading in Cambodia. The zone provides assistance in overcoming the difficulties arising from differences in language, culture, regulations and other matters.
State leaders of both China and Cambodia consider development of the zone tremendously important. In October 2016, before his state visit to Cambodia, Chinese President Xi Jinping published an open letter in a Cambodian newspaper declaring that “the booming Sihanoukville Special Economic Zone testifies to how fruitful China-Cambodia cooperation can be.” On January 9, 2018, before Chinese Premier Li Keqiangs visit to Cambodia, he also published an article in a Cambodian newspaper praising SSEZ as “a symbol of renewed China-Cambodia friendship that is delivering real benefits to the people.” Cambodian Prime Minister Hun Sen has made four official visits to the zone and referred it as “my son.”
The original plot of the zone was a barren strip without road, water or electricity. With a pioneering spirit, the Sihanoukville Special Economy Zone Company has toiled away on its development, transforming the empty lot into a world-class industrial park with high-end supporting facilities for production and living. Access to water, electricity, roads, communication and gas, as well as land leveling, has been achieved in the initial phase of the project covering 5 square kilometers. More than 170 factory buildings have been built so far in addition to major supportive facilities such as a comprehensive services center, staff apartment building, community health services center and a sewage treatment plant.
Meanwhile, the Sihanoukville Special Economy Zone Company has introduced a “one-stop” administrative services window that involves the Cambodian Development Council, customs, commodity inspection departments, the Ministry of Commerce, labor authorities, and the Preah Sihanouk local government. It has built a local personnel database to help resident enterprises recruit workers. It cooperated with the Wuxi Institute of Commerce to train Cambodian workers and set up the Jiangsu Belt and Road Legal Services Center to provide professional legal advisory services. So far, 125 enterprises from China, the United States and European countries have settled in the SSEZ and achieved win-win results. Since the park opened, the combined industrial output of its residents has contributed more than 50 percent of the economic growth of Preah Sihanouk.
Great changes have taken place in the local villages alongside development of the SSEZ. Yun Min, provincial governor of Preah Sihanouk, repeatedly praised the zone as the engine of economic development for his province and the “rice bowl” of the local people.
Teach a Man to Fish
In the early stages of the project, the zone was plagued by a shortage of qualified workers. The Sihanoukville Special Economy Zone Company organized young college graduates to teach local people the Chinese language at a local school in their spare time. To provide better training for the local students and villagers, the company launched a joint training program with the Wuxi Institute of Commerce in 2012. So far, 12 sessions have trained a total of 25,500 people.
Seng Sivly, now an interpreter with the Cambodian Clear Water Leather Supply Company, a resident of the zone, joined the training class without any prior knowledge of Chinese. Her parents are street vendors who hoped she wouldnt end up in the same profession. They firmly supported her learning Chinese. Seng has lived up to her parents expectations. With her language skills, she has joined the ranks of the “white collar” workers and earns enough to considerably raise the entire familys standard of living.
As the saying goes, “Give a man a fish, feed him for a day, teach a man to fish, feed him for a lifetime.” Over the last 10 years, the SSEZ has created more than 21,000 jobs for locals. It has attached great importance to language and skills training to help the people smoothly transition from farmers to industrial workers.
“With development of the zone, per capita GDP of Preah Sihanouk reached US$2,010 in 2017, the highest in all of Cambodia,” noted Chen Jiangang, president of Sihanoukville Special Economy Zone Company. “So far, we have created 21,000 jobs for local people. In Prey Nob District, 70 percent of families have someone working in the zone. The average annual income of families used to be equivalent of a cow. When they get hired in the zone, they can make the equivalent of a cow in a month.”
Just as Chen described, Phum Pou Theoang, a village adjacent to the zone has been a clear beneficiary. Ten years ago, most of the village was covered with trees. Villagers survived mainly by farming and hunting, earning scarcely any monetary income. In recent years, more and more villagers started working in the zone and have seen major improvements in their lives. The development of the zone has also attracted many from other villages. The population of the village has been growing. Some villagers work in factories in the zone while others run their own businesses in the village. The once barren land has become fertile. A cement road transecting the village has become a shopping street, which gets bustling with big crowds when factory workers get off their shift each day.
Platform & Bridge
While developing the zone, the Sihanoukville Special Economy Zone Company has established a win-win relationship with all involved parties, notably shareholders, employees, customers, suppliers, partners, government, environment and society (community). Development has brought tangible benefits to the local people.
The company has fulfilled its corporate social responsibility with active participation in social welfare activities. In 2008, the company donated US$254,000 to build a local school. It has made annual contributions to the Cambodian Red Cross to assist vulnerable groups in society. It has donated rice and drinking water to victims of natural disasters. On International Womens Day, it donates mosquito nets to local women. It has donated money and schoolbags to outstanding students. It also encourages staff to give one-to-one support and help poor students. Meanwhile, it has set up the Cambodia-China Friendship Volunteers Union to recruit more volunteers to help the weak and poor, which has been welcomed by the local people.
As an important cooperation project between China and Cambodia, the SSEZ has promoted economic and trade cooperation between the two sides as well as promoting friendly exchange between the two countries and their respective provinces and cities. In 2009, Wuxi and Sihanoukville became sister cities. In 2014, Jiangsu Province and Preah Sihanouk signed a memorandum of friendship and cooperation. The SSEZ serves as a platform for provinces and cities in both countries to strengthen cooperation in economics and trade, culture, education, health and infrastructure.
Since 2015, the Sihanoukville Special Economy Zone Company has provided support to four medical aid teams dispatched by the Jiangsu Provincial Government for pro bono medical work in Preah Sihanouk. More than 6,500 local patients have benefited from the assistance. In 2017, the company cooperated with the health authorities of Wuxi and Preah Sihanouk to build the SSEZ Community Health Service Center to provide more convenient quality medical services to employees and local residents alike.