MANY overseas investors in Cambodia, shaken by the power struggle there, are pulling out or freezing projects, but Hong Kong companies are staying put and even going on with plans to expand. Some Singaporean and Australian companies have evacuated staff, but Hong Kong investors, most of whom are in Cambodia's fastest growing industry - garments - believe the allure of the country is too big to pass up. A spokesman for Tack Fat Garment Factory, which was plagued by violent strikes by workers seeking higher wages in Cambodia early this year, said: 'Of course we are worried, but we are lucky, because we are far from the airport where the fighting is, and we have kept production going as normal. 'We think things are all right now, and we are staying on. 'After all, labour costs are low and Cambodia's does not have export quotas.' Apart from having cheap labour and land costs, the country was awarded most favoured nation status by the US last September - a plus over its more developed neighbour, Vietnam, and an incentive for garment manufacturers overseas who have reached their export quotas to the US in other Southeast Asian countries. Kitty Tam, manager of the Southeast Asian desk at the Trade Development Council, which sent a trade delegation to Cambodia last year, said: 'We have had relentless inquiries about Cambodia from [Hong Kong] garment companies. 'We have not been able to get in touch with people there, but most people already there seem to be taking a wait-and-see attitude.' Some are going further. Tack Fat's spokesman said that, despite the fighting, the garment company was considering plans to expand one of its two factories in Cambodia. It is not only in the garment industry that Hong Kong investors have made their mark. The Sun Wah Group, a consortium with more than 100 subsidiaries in Hong Kong, owns a seafood processing plant in the southern port city of Sihanoukville and is building a US$50 million 10-hectare light industrial park just outside the capital, Phnom Penh. The project includes air cargo terminals, facilities for domestic container cargo, and food processing plants. It is one of the largest single investments in Cambodia since that country passed a liberal foreign investment law in 1994. The group is confident about Cambodia's future. 'We are businessmen. We don't care about political matters', S.L. Choi, senior manager at Sun Wah Cambodia, said. 'Our investments, like those of other foreign investors, have been guaranteed by both prime ministers, and we believe those guarantees will be kept.' Mr Choi said Sun Wah's operations had been continuing as normal, and the industrial park would be completed as planned by the end of the year, despite its proximity to the airport. 'Cambodia's government has given us attractive terms. We even have plans to expand,' he said. Hong Kong is Cambodia's 11th largest investor, with investments of US$12.6 million by the end of January, 1996, according to the Trade Development Council. Its investments may pale beside those of Malaysia, Singapore or Taiwan, but companies like Sun Wah have been making the SAR an increasingly important source of capital for Cambodia. Hong Kong is also one of Cambodia's main trading partners, thanks to the garment industry, whose exports account for almost 30 per cent of Cambodia's total exports. The latest figures date back to 1995, and are probably much lower than present levels, analysts said. In 1995, Hong Kong exported US$38.8 million worth of mainly fabrics and textile machinery for the garment industry, up 21 per cent on 1994. Not all Hong Kong companies have emerged unscathed from Cambodia's recent strife. Dragonair has suspended its twice-weekly flights to Phnom Penh after the civil war closed the airport in Cambodia's capital. A Dragonair spokesman said it would resume its services only 'when the airport is fully opened to commercial fare, and when the airline considers it safe for passengers'. Emperor Group, which opened the Emperor International Bank in 1994, has closed its branch 'under the advice of the National Bank of Cambodia'. Meanwhile, the Trade Development Council is putting plans for a second trade mission to Cambodia on hold.