A new special economic zone (SEZ) in Preah Sihanouk province – with total investment of approximately $500 million – is reportedly close to final approval.

The East Sihanouk Special Economic Zone will be developed by the East Group consortium.

East Group board chairman Ly Seng Kheang met with Sun Chanthol, first vice-president of the Council for the Development of Cambodia​(CDC) on March 4. The two sides discussed the proposal for the new SEZ.

Also in attendance was Nang Sothy, East Group’s technical advisor.

Sothy told The Post on March 5 that investment plans for the new SEZ are progressing smoothly and awaiting final approval from the Cambodian government. 

He explained that the consortium plans to invest about $500 million over 340 hectares in Prey Nob district’s Bet Trang and Ou Oknha Heng communes, in the provincial capital, Sihanoukville.

The plans include several distinct areas, including residential zones, retail areas and small, medium and large factories. The project will be developed in three phases, with phase one covering 90 hectares.

“We are waiting for government approval. Once we receive it, we will start implementation immediately. The company has already constructed a 20-metre wide road approximately 1.5 kilometres long to connect National Road No. 4 to the project site,” explained Sothy.

He noted how rapid changes in the global political and economic context, especially during the administration of US President Donald Trump, have caused significant global shifts.

He mentioned that trade disputes and the imposition of tariffs on imported goods from countries such as China, Canada and Mexico had prompted some investors to relocate their factories to developing countries like Cambodia, and believed that SEZs will play an important role in attracting companies to establish factories in Cambodia.

“Special Economic Zones not only contribute to attracting national and international investors to open factories/businesses in Cambodia and boost export potential, but also help meet domestic demand,” he added.

Sothy also stated that several companies, mostly from China, have already expressed interest in opening manufacturing facilities in the East Sihanouk Special Economic Zone.

Sam Soknoeun, chairman of SAM SN GROUP – which is studying the possibility of establishing a Cambodia-Japan Special Economic Zone –previously told The Post about the important role SEZs play in attracting investors.

He explained that as SEZs are equipped with supportive infrastructure such as roads, energy and office facilities (with a single entry/exit point), they are closely aligned with the needs of factory/business owners.

He added that all business activities in SEZs are designed to be investor-friendly, ranging from the importation of raw materials for production to the export of goods to international markets.

“Currently, I, along with foreign investment partners, am conducting a study on the creation of a special economic zone which will attract investors, especially Japanese companies, to open facilities which will manufacture export goods,” he said.

According to an annual 2024 report by the Ministry of Industry, Science, Technology and Innovation, by the end of last year, the Kingdom had opened four new special economic zones (SEZ), bringing the total to 30.

The SEZs are spread across 12 of the Kingdom’s capital and provinces, with 9 in Svay Rieng, 5 in Preah Sihanouk, 3 each in Banteay Meanchey, Koh Kong and Kandal, and one a piece in Pursat, Kratie, Kampot, Kampong Speu, Kampong Chhnang, Kampong Cham and Phnom Penh.

The number of zones has increased from 21 in 2020 to 23 in 2021, 25 in 2022 and 26 in 2023.

In January, the ISI GROUP consortium announced the official opening of the ISI Special Economic Zone, developed under a partnership with key investors.

The zone spans over 800 hectares and is located in the Cheung Ko commune of Preah Sihanouk’s Prey Nob District.

The first phase of the project covers more than 200 hectares.

Chea Vuthy, secretary-general of the CDC’s Cambodia Investment Board, addressed the inauguration ceremony. 

He explained that the development of SEZs has contributed to advancing Cambodia's economic progress.

This includes enhanced competitiveness, increased productivity and expanded export markets, through the transformation of Cambodian industry from labour-intensive sectors to those with technology, skill and high added value.

Vuthy added that in 2024, the CDC approved investment projects to establish 10 SEZs with a total investment capital of about $850 million, which could create 4,000 jobs.

The manufacturing industry remained the sector attracting the most investment, accounting for approximately 69 percent of total approved investment capital in 2024.