Cambodia still open to Taiwan investors

Cambodia still open to Taiwan investors

PHNOM PENH (Reuter): Cambodian strongman Hun Sen told
investors from Taiwan on Saturday the closure of Taipei's
representative office in Phnom Penh did not signal an end to
investment by Taiwan companies.

He said Taiwan companies would face no obstacles to investing
in Cambodia despite Phnom Penh's strict one-China policy.

Taiwan is the largest foreign investor in the country.

Hun Sen said last Tuesday that Taiwan's representative office
in Cambodia was being closed due to its alleged involvement in
supporting forces loyal to First Prime Minister Prince Norodom
Ranariddh, whom Hun Sen, the second prime minister, ousted on
July 6.

"The closure of the Taipei liaison office in Phnom Penh does
not mean the closing of Taiwanese investment here. On the
contrary, we are opening up more freely (to investment)," he told
investors from China, Taiwan, Macau and Hong Kong.

Hun Sen made no mention of Cambodia's relations with the
Association of South East Asian Nations (ASEAN) or the confusion
surrounding his stand on the group playing a mediation role in
Cambodia's political troubles.

Hun Sen said in a statement on Friday that ASEAN had a role to
play in ensuring Cambodia's stability in terms of preventing
foreign interference in Cambodia's internal affairs.

"There are no obstacles to Taiwanese investors," Hun Sen said.
"Our one-China policy is not a problem for Taiwanese investment
and tourism."

He said if Taiwanese investors had any problems in Cambodia
they could report to the Chinese Embassy.

Taiwan has described Hun Sen's closure of its unofficial
office as unacceptable and "ridiculous" and said it hoped that
Cambodia would reverse the decision.

Officials in Taipei, which has denied any involvement in the
Cambodian conflict, have threatened drastic countermeasures,
including a boycott of Cambodian trade and tourism, if talks on
re-opening the office failed.

Communist China, which has regarded Nationalist-ruled Taiwan
as a renegade province since the end of the civil war in 1949,
hailed Cambodia's decision to shut Taiwan's office.

Hun Sen said Cambodia needed investment in several priority
areas including agro-industry.

"I believe southern China has possibilities for investment
there. We have land but we lack capital and technology," he said.

"China can plant rubber in Cambodia and export the raw
material to China," he said.

He also appealed for investment in transport and
infrastructure. He said Cambodia could offer contracts on build,
operate and transfer (BOT) terms for roads and airports.

He also suggested that investors might be interested in
upgrading a railway line between Phnom Penh and Cambodia's main
port of Sihanoukville.

Hun Sen said his government might amend laws to allow tax-free
import of construction materials by companies which suffered
damage or looting in the recent turmoil.

Taxes on the import and export of garments might also be
abolished and the land law might be changed to allow foreigners
to own property.