(Image Source: RLI)
Japan’s retail giant Aeon has plans to transform Cambodia into an international logistics hub to serve the growing trade market and cross-border e-commerce in Southeast Asia. The 30,000 square-meter logistics hub will be built in a special economic zone near the southern port of Sihanoukville. The centre will feature Cambodia’s first bonded warehouse, offering services ranging from import storage to customs clearance and customer support.
With the support of the Japanese government, Cambodia aims to develop part of its economic zone as a free-trade port. Given Cambodia’s involvement in the Regional Comprehensive Economic Partnership, this initiative has drawn considerable attention from companies around the world. With the warehouse’s capabilities, businesses can avoid paying high duties and store their goods for a certain period of time.
Aeon’s international logistics venture is part of a broader strategy to seek new profit sources and growth drivers. Apart from adding shopping centers in Southeast Asia, the group is also working on diversifying its offerings and accumulating more know-how to build a loyal customer base. The firm expects to generate steady returns, targeting an operating profit of over 100 billion yen by 2025, more than twice of what it earned in fiscal 2019.