Excellencies Distinguished guests Ladies and Gentlemen

It is a great honor and pleasure for me to be here with you, attending the ceremony to a ward the ISO 9002 Certificate to TELA PETROLEUM GROUP INVESTMENT. First of all, I would like to take this opportunity to express my great appreciation to TELA PETROLEUM GROUP INVESTMENT for their dedication to the Cambodia’s development through the construction and operation of an international standard lubricating oil factory. Tela becomes the first local company to be recognized by the International Standard Organization (ISO) in terms of quality, technical specification and labor norm. This is the testimony to the fact that the company management has paid attention to their clients. It is also a response to the government’s economic policy platform and our reform programs, geared towardand encouraging promoting investors’ efforts to improve productivity, production quality and service delivery inside of the country.

During the past five year, attention was given by the Royal Government of Cambodia (RGC) to rehabilitate infrastructure and basic services, including the telephone network,electrical power, road-related services, water supply, sewerage and postal services. In the years to come, our actions will be focused on how to improve further these services in order to lower the cost of doing businesses in Cambodia. To this end, the priority is given by the RGC to increase public investment, through the mobilization of foreign assistance and domestic savings. Attention is accorded at the same time to private investment, especially “Build-Operate-Transfer (BOT)” project, and investment in physical and social infrastructure as well as other facilitating utilities, such as electricity, water supply and telecommunications. Our ultimate objectives are to put in place an efficient and viable infrastructure network that expand and integrate the domestic markets, links our domestic markets and provide physical access to the region and the outside world in order to facilitate, promote and expand economic activities and investment in all sectors. In this regard, the construction of an international standard Lubricating Oil factory by Tela makes a great contribution to the development of physical infrastructure in Cambodia and constitutes an effective and timely response to help address the infrastructure constraints facing our country in the new millennium.

As you are aware, petroleum is a strategic product, which underpins economic activities of the nation. Locally produced lubricating oil by a factory equipped with modern machinery and equipment will increase value added and reduce costs, slashing domestic prices on lubricating oil. It will boost competitiveness in the domestic market and get the support from consumers, thus having a positive impact which constitutes an important input into production and services, especially for the transportation sector. Moreover, the transfer of hi-tech for the production of lubricating oil and other kinds of petroleum products is a good preparation for Cambodia to export processed goods in the future, in particular when Cambodia will be able to supply raw materials for this kind of production. Therefore, Tela should make further efforts to expand the use of modern technology in the production process.

Indeed, the transfer of technology should be part and parcel of any investment project. By transfer of technology, I mean the transfer of product, production process, machinery, materials and techniques related to production and management. This transfer of technology should include hardware technology--machine and complete plants and so fort--and software technology--training, management, marketing techniques and labor-management relations. I am glad to know that Tela has signed an agreement on the transfer of technology from companies based in Singapore to conduct experimentation and operations with our Cambodian engineers.

More importantly this factory has created employment for Cambodian engineers, who were sent by the former State of Cambodia (SOC) government to get an overseas training in the former Soviet Union and Germany. At the same time, Tela has sent its staff for training in Singapore in response to the developments and requirements of the market at present and in the future. Harmonization of industrial relations is an important factor contributing to rapid industrial growth. Besides improving productivity at the firm level, a cooperative labor-management relationship is essential for the survival and growth of an industrial enterprise. To this end, good labor management is critical to ensuring productivity growth, which is a critical element of maintaining a company’s competitiveness in the market.

I encourage and fully support TELA PETROLEUM GROUP INVESTMENT in improving product quality until it has obtained an international recognition. The awarding of the ISO 9002 certificate is not only an honor for the company, but it is also a pride for Cambodia as a nation. I would therefore like to appeal to other investment companies to follow Tela’s example by substantially improving productivity and the quality of their products and services. The RGC is prepared to provide all kinds of support for these efforts, especially by ensuring for all investors a favorable environment and incentives to investment.

Excellencies, Ladies and Gentlemen

I would like to sincerely thank you for your attention. I wish all the success for the efforts made by TELA PETROLUEM GROUP INVESTMENT to operate the lubricating oil factory.

In conclusion, I would like to extend to Your Excellencies, Ladies, Gentlemen and all compatriots the five blessings of Buddha, as well as prosperous development and happiness.

Thank you.

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