Business insiders are optimistic that Cambodia will see increased revenue from export goods produced in factories/enterprises within the kingdom’s Special Economic Zones (SEZs) in 2025. - PPP
PHNOM PENH: Business insiders are optimistic that Cambodia will see increased revenue from export goods produced in factories/enterprises within the kingdom’s Special Economic Zones (SEZs) in 2025.
In the first 11 months of 2024, total exports from the 16 SEZs reached over US$5.4 billion.
According to a report from the Ministry of Commerce, as of the end of 2024, 49 SEZ projects were approved by the Cambodia Development Council (CDC), with 26 currently in operation.
The report added that in the first 11 months of the year, exports from the 16 SEZs (which include a total of 431 factories/enterprises) amounted to approximately $5.43 billion. They employed a total of 183,703 workers.
According to the ministry, the SEZ with the highest export value is the Sihanoukville Special Economic Zone (SSEZ) with $1.49 billion, followed by the Royal Group Phnom Penh SEZ with $1.08 billion.
Other prominent SEZs include the Qi Lu Jian Pu Jay SEZ, Manhattan SEZ and the Cambodian Zhejiang Guoji SEZ.
Sam Soknoeun, chairman of SAM SN GROUP, who is studying the feasibility of creating a Cambodia-Japan SEZ, stated on Jan 3 that SEZs play a crucial role in attracting and encouraging foreign investors to increase investments in Cambodia.
SEZs are equipped with infrastructure such as roads, energy and office facilities (with a single entry-exit point), making it easier and more convenient for factory/enterprise owners to operate.
He added that all business activities in the SEZs are streamlined for investors, from requesting imports of raw materials for production/processing to exporting to international markets.
“Currently, I, along with foreign investment partners, am studying the establishment of SEZs to boost investment potential in Cambodia and attract both national and international investors, especially from Japan, to open factories/enterprises in Cambodia for exporting more goods to international markets,” he explained.
Regarding the types of goods produced/processed in the SEZs for export, Soknoeun noted that most are industrial products, but in the future, he expects to see some diversification, as the kingdom is currently attracting major companies in electronics, machinery and advanced technology manufacturing.
According to Soknoeun, future SEZ projects in Cambodia are likely to emerge in areas near the Funan Techo Canal, which will be strategically located for shipping goods to international markets and is close to the borders of neighbouring countries.
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 foreign direct investment.
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 Cambodian government is encouraging local investors to consider creating more SEZs in the country, focusing on specific industries,” he added.
According to Vichet, the Cambodian government aims to create SEZs for specific countries, such as Japan, South Korea and India, as well as for other markets such as the UK.
On Jan 31, 2024, during the “Special Programme to Promote Investment in Preah Sihanouk Province 2024” event, Prime Minister Hun Manet announced that Cambodia is considering the creation of SEZs dedicated to investors from specific countries. This approach would help attract more foreign investment to Cambodia.
“We are preparing to implement and develop new types of SEZs to complement the existing ones. These future SEZs will be adaptable to various industries. We are working on policies and developing pilot projects for SEZs to attract investments in green technologies, green industries and the digital sector,” he said.
He confirmed that Cambodia is SEZs for investments from specific countries, which would be more focused on their particular interests. - The Phnom Penh/ANN
