Greater China Ventures to Cambodia

Recently, our Founder and CEO, Ben Zhang, traveled to Cambodia to meet with potential suppliers. He made the trip with a long-time strategic client. Recent changes in US trade policy prompted his excursion. As of July 1st, 2016, all travel goods – such as luggage, handbags and wallets -- imported from Cambodia are duty free. The company is avidly pursuing this new avenue to potential savings. “Greater China is expanding to the Greater China area,” says Ben.

Cambodia has grown significantly as a product manufacturer. Chinese companies have started moving their production facilities there to take advantage of cheaper labor costs, as well as better access to America’s $10 billion travel-goods market. However, there is some downside to emerging countries that Greater China must manage. First, Cambodia lacks readiness of raw materials so often times these must be imported from China adding to a projects timeline. Second, there’s no product testing labs there yet; so products must be shipped to China for testing. Third, Cambodian port facilities are under-developed, antiquated and often slow; therefore, time-sensitive products are not good candidates for Cambodian factories.

Because of a longer timeline and ongoing consumer demand, certain program slated bag business will be our first category to be produced in the emerging nation. However, it surely won’t be the last. Ben’s trip there is part of Greater China’s ongoing efforts to partner with the highest quality manufacturers with most competitive rates and timely delivery. Additionally, team members continually travel to international conventions searching for qualified Cambodian partners as well as from other emerging nations.

Cambodia is one of several nations benefitting from a major expansion of US trade preferences. The US Generalized System of Preferences is 40-year-old program to spur economic growth in underdeveloped nations. To read the full announcement by the Office of US Trade Representative, [click here].

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