A shipping container is loaded onto a truck at the Sihanoukville Autonomour Port (PAS), the largest port in Cambodia. Post staff
Political stability and strong economic growth have been attributed to Cambodia’s strong economic growth, with ten new Special Economic Zones (SEZs) established in 2024, with a total registered capital of approximately $850 million. Last year, the total export value of the Kingdom’s SEZs exceeded $5 billion.
Chea Vuthy, secretary-general of the Cambodia Investment Board (CIB) of the Council for the Development of Cambodia (CDC), addressed the inauguration of the ISI Special Economic Zone project in Preah Sihanouk province earlier this month.
He noted that that the government’s policies for developing SEZs have made a major contribution to the Kingdom’s rapid economic advancement. 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 remains the sector attracting the most investment, accounting for approximately 69 percent of total approved investment capital in 2024.
“The flow of investment into Cambodia will continue to rise based on the trend of major companies shifting their production bases to the ASEAN region, combined with the government’s ongoing policies to enhance Cambodia’s investment environment, including the development of physical infrastructure to reduce both costs and time for transport,” he said.
The ISI Special Economic Zone is located on 206 hectares of land in, Preah Sihanouk province’s Prey Nob district, and received investment capital of over $50 million.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, told The Post that despite the global economic recovery not being as robust as before the Covid-19 crisis, Cambodia has still managed to attract continuous investment.
He believed the Kingdom’s attractiveness lies in its political stability, strong economic growth, investment-friendly laws, strategic geographic location, abundant labour force and excellent infrastructure.
“In addition, Cambodian products benefit from preferential import duties in major countries such as the US, the EU, China, South Korea and Japan. Furthermore, the trade agreements which have been signed with key partners, such as China, South Korea and the RCEP, are contributing to attracting more investors,” he said.
“Investment from both domestic and foreign investors will continue to increase as the global economic and political situation improves. Foreign direct investment (FDI) is crucial for strengthening the economy because, in addition to creating jobs, it also boosts the ability to increase exports of Cambodian products to international markets,” he continued.
Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), reiterated that SEZs are hubs for factories/enterprises that produce goods for export. He believed that if the Kingdom can establish more SEZs, it will bring significant benefits to the national economy by attracting more FDI.
He also noted that investors looking to open factories in SEZs would benefit from various incentives, such as sufficient transportation infrastructure, energy resources, water/environmental management systems and streamlined import-export procedures.
“To promote national economic growth and increase exports to international markets, the government is encouraging local investors to consider creating more SEZs in the country, with a focus on specific industries,” he added.
