Cambodia promotes SEZ masterplan for province with roadshow in Xiamen and Hong Kong

Cambodia hopes to attract more Chinese investors to Preah Sihanouk province, for high-quality development, as it develops the whole of the coastal province into a multi-purpose special economic zone (MPSEZ) by 2038.

“We want to attract investors from China and other (countries) to go to Preah Sihanouk … and make the province like Shenzhen that can drive industrialization and innovation,” said Phan Phalla, secretary of state at Cambodia’s Ministry of Economy and Finance, referring to the special economic zone in South China’s Guangdong province.

Noting the province is home to the only deep-water port in Cambodia, Phan, also vice-chairman of the Preah Sihanouk Province Investment Promotion Working Group, told China Daily the government aims to turn it into a real economic port for the whole country and drive the growth of neighboring provinces.

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The working group was established as an inter-ministerial mechanism responsible for leading, coordinating and implementing a special program to promote investment in Preah Sihanouk province, including measures to resolve unfinished investment projects.

On Oct 30 and Nov 1, the group launched a two-city roadshow in China’s Xiamen in Fujian province and the Hong Kong Special Administrative Region, showcasing Preah Sihanouk’s strategic advantages, robust infrastructure and supportive government initiatives.

Under the plan, Preah Sihanouk will become an international gateway by developing Sihanoukville into a major international trade and logistics center, and establishing itself as an international multi-modal transport hub and financial center.

The province will also become a national development pole with global tourism destinations, with a long-term vision to develop Sihanoukville into a pilot smart city in Southeast Asia.

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Noting this was the first time Cambodia had organized an overseas investment promotional campaign for a province, Phan said he is satisfied with the result as there were a good number of investors joining the roadshow.

“We have introduced a special investment program to attract investors to go there (Preah Sihanouk),” said Phan, adding it is even beyond what Cambodia has offered in its investment law. For example, investors in the garment industry, apart from a three-year profit tax exemption in Cambodia, can enjoy another three years of exemption if they make the investment in Preah Sihanouk by the end of 2025, he said.

Chea Kok Hong, secretariat director of the MPSEZ for Preah Sihanouk Province Masterplan, said there are 11 SEZs in the province and the new masterplan will make the whole province into an SEZ, with different zones being planned for different industries.

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The government will also allocate more investment in infrastructure, subsidize labor training, and provide one-stop services to help companies relocate to Preah Sihanouk.

Other infrastructure upgrades, such as to increase the port’s capacity and improve the airport and rail networks, are also in the pipeline, said Chea, noting the Phnom Penh-Sihanoukville Expressway, funded by Chinese investment, has significantly improved transport and trade in Cambodia.

As China is currently Cambodia’s biggest source of foreign direct investment, Nut Unvoanra, deputy secretary-general of the Cambodian Investment Board, said their relationship also makes people confident in bilateral exchanges, especially in terms of trade and investment.

“I believe that Cambodia is a good destination to attract Chinese investment,” said Nut, noting the Sihanoukville Special Economic Zone, a flagship project under the Belt and Road Initiative, has become a model for industrial zone development.

The 11-square-kilometer economic zone now accommodates about 190 companies from different countries and regions, and has created about 30,000 jobs for the local people, said Phan from the Cambodian Ministry of Economy and Finance.

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“This is a good example for Cambodia,” said Phan.

As China and the Association of Southeast Asian Nations have reached a substantial conclusion for the Version 3.0 China-ASEAN Free Trade Area, Phan said the new upgrade, which will include green economy and better trade facilitation, will provide more opportunities for Preah Sihanouk.

Phan said he hopes more companies in high value-added industries can invest in Preah Sihanouk to support its high-quality, sustainable development.

Contact the writer at kelly@chinadailyapac.com