Innovative i4.0 SME CLUSTERS“Bringing a new approach to Manufacturing & Entrepreneurship in Cambodia”

WBID i4.0 SME Clusters…Setting the stage for new opportunities in Investment, Manufacturing, SME development and Entrepreneurship in Cambodia.

German I4.0 Concept
Value Chains
Ecosystems
Co-opetition
Microservices
Automization
BEMS Microgrid

WBID I4.0 SME Clusters | We understand the challenges.. changing market demands are driving the need for new thinking and approaches to supply chains, manufacturing and logistics

 Cheap labor, task repetitive manufacturing and low-value outputs ..
…are no longer attractive attributes for FDI considering Cambodia.

 Consumers are driving markets and manufacturing ..

…towards more complex, higher quality products made available in shorter periods of time.

 FDI & Global Value Chains require seamless operations and partnerships ..
… which are inherently transparent and mutually profitable Industry 4.0 Technologies, the IoT and Digital Connectivity ..
… will make manufacturing activities and Global Value Chains borderless.

 Socially and environmentally sustainable practices ..

… are… are market drivers for having greater resource and production efficiency in manufacturing.

 Cambodia seeks to diversify its industrial base & utilize its SME capacity… RGC policy and initiatives are focused to create better linkages between FDI and SMEs.

 Cambodia’s young, growing population of Entrepreneurs & “Digital Natives”… can be harnessed & integrated into diversified manufacturing and drive economic growth.

 A complete, innovative approach to manufacturing and logistics is needed ..
… to create globally competitive value chains which can work collaboratively and efficiently

 Cambodia is ready to “leapfrog” from its current i2.0 mindset to a new i4.0 thinking… to ignite entrepreneurship, achieve sustainable growth and participate in Global Value Chains
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WBID I4.0 SME Clusters | A New Solution
SectorSpecificFacilities
SharedBusinessAmenities•

WBID i4.0 SME Clusters are not SEZs nor Industrial Parks…

•WBID i4.0 SME Clusters are manufacturing sites designed to provide sector specific Value Chains byproviding the Ecosystem needed to create the forwards & backwards linkages needed by FDI.

•Each WBID i4.0 Cluster integrates a sector-specific Ecosystem of on-site facilities, infrastructure,services, IoT platforms and new Government incentives for SMEs.

•This Ecosystem removes the barriers between suppliers, logistics manufacturers, RGC and services
providers to create co-opetitive, cost efficient value chains for the Investor.

On SiteLogistics
Services
DirectSupplierLinkages

Integral
I4.0

Platform

ActivelyManagedby WBID

ACT5 Ecosystem = Access Collaboration Technology•

The ACT5 Ecosystem is accessed and is linked to the entire Cluster value chain by using integrated i4.0
technologies to ensure efficient, transparent and borderless operations.

•With an Ecosystem, 4 additional operational models become possible for Entrepreneurs, Start-ups orestablished manufacturers.

•Activities in product development, product innovation or in the production of more complex outputs
with low investment are made possible and promoted.

•WBID i4.0 Clusters are a solution for the next generations of investment, manufacturing, productdevelopment and entrepreneurship with reduced initial costs and lower risks.
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WBID ACT 5 Ecosystem | Integrated technology..the WBID ACT 5 Ecosystem of facilities, services and platforms enables complete Value Chain linkages
Consumeror
Investor

On-SiteGov’t OWS
Services

WBID Global Portal(eCommerce)

WBID SME
Cluster
Platform“Big Data’ Materials QA/QC

Outputs Gateway
Platform
On SiteTesting / QA
Amenities

Block Chain & ERP
Platform

Raw
Materials
Suppliers

With integrated i4.0 platform
technologies; efficienttransactions, communications
and operations are achieved

Block Chain & ERP
Platform

SME VC
Production

VC I4.0 Production
Controls

Mgmt. & Skills Training
Platform

21C TechTraining
CenterTransport
Services

BEMS
Platform
SME
Cluster
Infra &Facilities

On SiteLogistics
CenterTransport & Inventory
Mgmt. Platforms

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WBID I4.0 SME Clusters | Ecosystem Facilities.. Cluster facilities are based on the Cluster’s purpose, outputs and Value Chain …

SME Services Center | Factories | Logistics Center | R&D / Prototype Center |Public Event Pavilions | Worker Canteen / Market | Pop-up Commercial Blocks |Vendor Kiosks | Accelerator Offices |Serviced Housing

WBID i4.0 SME Cluster | Infrastructure“…all infrastructure is designed to be environmentally friendly and affordable for the tenant…”More facilities than an SEZ or Industrial Park…..

On Site Infrastructure• Bldg. Energy Mgmt. System*• 3MW Grid Power• 1.5MW Solar Power*• 24/7 Backup Power• Direct LPG Gas Supply• Building Management System• Public Water Supply• RO Waste Water Treatment• Waste Collection &Transformation.
• 24/7 Security & CCTV
• Fire Fighting & Emergency Svcs.
• Free EV charging** Planned implementation

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WBID i4.0 SME Cluster – Cluster Facilities Planning“…Clusters are design modularly for flexibility nd ease of expansion…”

P2P3P
1AB2

MODEL FACTORY

SME FACTORY(P3AO

LOGISTICS CENTERP1P
3AO

AB1P
3R&D / ASSEMBLY
BLDG. (2F)P
1R&D / ASSEMBLY
BLDG. (2F)

LOGISTICS CENTER

AB2AO

AB2P2P
2LOGISTICS CENTERLOGISTICS CENTERLOGISTICS CENTERP
3OPEN
EVENT PAVILION
P
1

4. R&D / Prototyping Bldg.

SME FACTORY

P
1SME FACTORY

AO

R&D / ASSEMBLY
BLDG. (2F)

6. Central Utility Bldg.

AB2

AB1

SME FACTORY

AB1P3AB1

SME FACTORY

AB1A
OP
1P1P
1SME FACTORYUTILITY BLDGSME FACTORY

SME FACTORY

AB1AB1SMEFACTORY
FACTORY
SME(ATS)

AB2SME FACTORY
SME FACTORY)(ATS)

SME FACTORY

AB1SME FACTORY

SME FACTORYP
1AO

AB1AB1SME FACTORY

SME FACTORYP2AB1AB1AB1SME FACTORYP2AB1AB2P2P3AO

SME FACTORYP3P3P
3SME FACTORY

SME FACTORYP3P
3AB1P3
SME FACTORY(SAMAI DIST)P
2P
1P
15. Business Amenities

Technical Training Center

SME FACTORYOPENEVENT PAVILION(CANTEEN)

SME SVCS BLDG

SME SVCS BLDG

7. i4.0 Factory of the Future

LOGISTICS CENTER

AB1P2P1

2. Logistics Center
3. Factories

LOGISTICS CENTERP1R&D / ASSEMBLY

1. SME Services Bldg.

AB1P1LOGISTICS CENTER

SME FACTORYAOSME FACTORY

AB1P3P3AB2SME FACTORYP2AOSME FACTORY

8WBID i4.0 SME Cluster | SME Services Center….the heart of the SME Cluster is found in the SME One Stop Services Center…

SME & Startup Biz Services | RGC One Window Service Center| Training Center | Testing Laboratories
F&B Space | Commercial Space | Healthcare / Childcare | SME Business Amenity Space9WBID i4.0 SME Cluster | Factory facilities…All our facilities are designed to offer our Tenants with the maximum amount of flexibility…

MODULAR SME FACTORY “SET”

Factory Floor(566m2)

Office (4F)
(288m2)

Open Yard(162m2)
LoadingDock(81m2)
Note: factory expansion modules are in 647m2 incréments

Treated Water Supply (at 3bar) | Modular Factory Expansion | Energy Efficient Shell| 25kn/m2 Floor Loading |Wastewater Connection | 100KVA/3PH/150A power supply | Hybrid Solar & Grid Power
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WBID i4.0 SME Cluster | Logistics Center / Services“…logistics are a critical part of any manufacturing venture and success…”

On-siteCustoms
processing

On-SiteLogistics Center &Warehouse
IM/EX Processing
Materials Inventory
Management

Full Domestic &InternationalTransport
Services
On-siteVAS Services

Tenant Advantages-Reduced loss due to poor Transport
Environmentally controlled warehouse
SME T&L overhead staff is reduced
On-Site processing of documents
On-time delivery to production line
No SME investment required
SME QSIP Incentives access- *Cold Storage available if requested.
Domestic Transport | IM/EX Clearance Svcs. | Inventory Management Svc. | Cold Storage* | Packaging
VAS Services (pick & pack etc..)| Modern Fleet & Tracking | | Meeting & Conference Rooms
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WBID i4.0 SME Cluster | Amenities“…a range of supporting amenities has been planned into each Cluster’s ecosystem to reduce SME investments and operating costs…”

Technical Skills
Development andTraining Center (2022)
E-Learning Platform
Degree Certification
Career Planning
Recruitment Center
TVET Courses (tbc)

One Window
Service Center
Key Ministries
represented
On-line scheduling
On site Consultation
On site processing

On-Site SME
Services CenterBiz Services
Leased Offices
ConferenceCenterF&B

Tenant Advantages
Worker Canteen& Restaurant
Nutritious Menu
Planning
Meal subsidy
program (tbc)-No investment required
SME focus time on production & QA/QCSME Overhead staff is reduced
On-Site processing of documents
Travel time to/from CBD is not needed
Training – retention risk reduced
Better market = Higher margins
No SME investment required
SME Tax Incentives access* Worker Housing or Serviced Apartments
can be constructed at SME request
R&D & Prototyping Facilities | Training Center | Testing & Certification Labs | Packaging
Manufacture| Biz Function Spaces | Health/Childcare | Conference Center | Commercial & Retail Space | “Pop-up” Commercial Blocks
12WBID I4.0 SME Cluster | Location - Kandal Cluster..the first WBID i4.0 SME Cluster is ideally located for easy transport if imported materials and distribution of finished goods

Phnom Penh CBD
NR4(PPSEZ)

NR3

Ring Road 2
KWB Bonded
Warehouse &Free Trade Zone

New International Airport

Phnom Penh
Autonomous Port

Ring Road 3

WBID i4.0 SME Cluster Takhmau

WBID I4.0 SME Clusters | New FDI Opportunities“… in addition to building a factory..4 new manufacturing models become possible with a Cluster & Ecosystem*WBID SME Clusters are best suited for; JP SME expansion, JP– KH SME partnerships, JP Startups, R&D activities.
WBID has in place the partners to facilitate business and value chain establishment in Cambodia

Cluster creates its own value chain and produces for markets- Cambodia plans & develops its resources / sectors strategically•- Untapped agro resources are utilized- Enables development of SMEs and creation of Startups

Cluster is supplier to “just in time” manufacturer- TH + 1 type models are more valuable- Ecosystem enables the seamlessness needed- Enables current SME suppliers to grow and expand customer bases

Cluster is used localized Supply Chain.
- Manufacturing FDI focuses on final assembly- Enables local SME supply chains to develop

Cluster is used as R&D / Prototyping site for product acceleration•

Combinations of the above- FDI in new product development (agro) is enabled-Academia is engaged for sustainable economic development-Startups and Entrepreneurship is enabled

WBID I4.0 SME Clusters | Financial benefits

Investors at WBID Cluster will receive additional benefits and incentives from the Royal Government of Cambodia



QSIP VAT & Import duties Exemptions on construction materials and production equipment for SMEs in ClusterVAT Exemptions on Production materials will be confirmed by the Ministry individually. In general, manufacturing inpriority sectors will be favored.

Sub Decree 124.
- Exemption on prepayment of profit tax- 200% tax deduction on accounting books through Information system- 200% tax deduction on account and technical skills training for employees- 150% tax deduction on investment in new equipment or high-tech equipment which enhance productivity

Sub-Decree 50. Import duties exemption on production inputs in the following sectors- Producer or supplier of clean water- Export oriented enterprise & Supporting industry for export oriented enterprise- Domestic seller. *decision on eligibility subject to Customs audit.
- Enterprises in ITC related R&D- SMEs operating in SME Cluster Zones *decision on eligibility subject to Customs audit

Witholding Tax or VAT exemption on professional services purchased in Cambodia

Access to updated schedule for 9-yr Profit Tax holiday and extension of trigger period from 3 years to 5 years

Priority Access to SME Bank loans, Entrepreneurship fund and Skills development Funds



EIA exemption for SME. *SME must follow WBID Environmental Management Plan & Contract directions from
Ministry of Environment-WBID I4.0 SME Clusters | Priority Sectors…initial WBID Clusters and Value Chain formation is now focused on the following growth sectors nationwide.

Agroprocessing& Farming
4.0Agritech& Biotech
Acceleration

Black
Rice byproducts

Biopackaging

Smart &organic
Textiles /Garments
Healthcare 4.0

Organic
Nutraceuticals

Energy4.0 &Services
Waste
Transformation(plastics)

Aquatech&Fisheries

3DPrinting
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WBID I4.0 SME Cluster | Timeline“… the 1st Cluster in Kandal Province is planned with interest from Tenants in manufacturing, waste transformation, agri-tech & packaging..”

July - August
Incentives Approval & Sub Decree
September - OctoberContractor Selection

November 27
Groundbreaking

October 15
Handover priority facilities

February - OctoberConstruction Period

December 15
Tenant Start Production

November 15
Handover to tenants

November 3
Handover to WBID

November 30
Soft Opening

Phase 2 – Phase 3 (3-4 months each)

January 1
Grand Opening

Worldbridge Group | Commitment….The Worldbridge Group supports your commitment….

BEMS PV System

As a 100% Cambodian owned company, Worldbridge is a highly
respected and experienced developer, logistics provider and investor
in new ventures which reflect positively on Cambodia and support
economic growth.
The Worldbridge Group is poised to be an active partner with our SME
Cluster Investors & Tenants.

SME Development
Industrie 4.0

NEAK OKHNA SEAR RITHY-CHAIRMAN•Chairman18

For more information, please contact Charles Esterhoy atcharles.Esterhoy@wbid.com.kh
OrVisit our Website atwww.wbvid.com.kh

Developed by:Worldbridge Industrial Developments Co., Ltd. (WBID)

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