Cambodia is looking to attract more Chinese investors to its Preah Sihanouk Province for high-quality development, as it transforms the coastal region into a multipurpose special economic zone by 2038.
“We want to attract investors from China and other (countries) 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.
The government aims to turn Preah Sihanouk — home to Cambodia’s only deep-water port — into a real economic port that will fuel growth in neighboring provinces, Phan, also vice-chairman of the Preah Sihanouk Province Investment Promotion Working Group, told China Daily.
The working group launched a two-city road show on Wednesday and Friday in Xiamen, Fujian province, and the Hong Kong Special Administrative Region, respectively, to highlight Preah Sihanouk’s strategic advantages, robust infrastructure and supportive government initiatives.
Under a development master plan, Preah Sihanouk will become an international gateway by developing its capital Sihanoukville into a major global trade and logistics center, and establishing itself as an international multimodal 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.
Phan said this was the first time Cambodia had organized an overseas investment promotion campaign for a province and expressed satisfaction with the results, citing strong participation from investors.
“We have introduced a special investment program to attract investors to go there (Preah Sihanouk),” Phan said, adding the incentives surpass those outlined in Cambodia’s investment law.
For example, investors in the garment industry, apart from a three-year profit tax exemption, can enjoy another three years of exemption if investments are made in Preah Sihanouk by the end of next year, he said.
Chea Kok Hong, secretariat director of the master plan, said there are 11 special economic zones in the province, and the new master plan will turn the whole province into an SEZ, with different zones tailored for different industries.
Aiding relocation
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 increasing the port’s capacity and improving the airport and rail networks, are also in the pipeline, Chea said, noting the Phnom Penh-Sihanoukville Expressway, funded by Chinese investment, has significantly improved transport and trade in Cambodia.
With China being Cambodia’s largest source of foreign direct investment, Nut Unvoanra, deputy secretary-general of the Cambodian Investment Board, said this strong relationship fosters confidence in bilateral trade and investment.
“I believe that Cambodia is a good destination to attract Chinese investment,” Nut said, 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, creating about 30,000 jobs for local people, Phan said. “This is a good example for Cambodia.”
