The special economic zone (SEZ) in Koh Kong province. Heng Chivoan
The green special economic zone (SEZ) development project, with a capital investment ranging from $400-$800 million, is expected to be introduced in Koh Kong province in 2024.
The national and provincial authorities are currently identifying potential sites of 300ha or more for the venture, as reported by the Koh Kong provincial Department of Information.
Provincial governor Mithona Phouthong and representatives from the Ministry of Economy and Finance, the Council for the Development of Cambodia (CDC), the British embassy in Phnom Penh and other pertinent ministries and institutions met to discuss the plan on December 19 in the coastal province.
At the meeting, the CDC highlighted that the green SEZ project aims to establish a hub for producing eco-friendly exports for international markets.
The initiative is intended to enable the country to capitalise on new opportunities in the sustainable supply chain of the global market, attract significant foreign investment and aid in diversifying the national economy.
The project will focus on renewable energy, sustainable waste management and environmental considerations in crucial sectors like automotive, electronics and textiles.
The province was selected for the venture due to its availability of over 300ha of suitable vacant land for long-term development. Its strategic location, adjacent to the country’s border and the Gulf of Thailand, is seen as beneficial for leveraging trade in the region and creating an appealing environment for direct investment.
The CDC also made several requests to the provincial administration, including providing options for potential locations such as choosing a site with sufficient infrastructure and avoiding nature reserves.
The administration was urged to continue coordinating efforts to ensure the project’s success in both the province and the Kingdom at large.
Mom Malika, director of the provincial information department, said the province holds potential for investment in vital areas such as SEZs, ports, business hubs and tourist resorts.
Sam Soknoeun, CEO of Sam SN Realty Co Ltd, who plans to invest in the economic zone within the next two to three years, told The Post on December 21 that SEZs are increasingly vital in attracting both domestic and international investors.
He said this is due to the simplified procedures for export-import documentation and tax in SEZs.
He elaborated that the zones are not only advantageous for investors but also instrumental in generating employment and income for families and the nation.
He identified Koh Kong as a promising location for investment in SEZs, particularly for easy access to international markets.
“The development of SEZs is a potential strategy for boosting national economic growth. In fact, during the visit of Prime Minister Hun Manet to Japan a few days ago, he encouraged Japanese investors to open more SEZs or invest in existing ones,” he said.
He added that increased domestic investment would enhance in-country production capacity, thereby boosting exports and reducing imports.
Chea Vuthy, deputy secretary-general of the CDC, previously stated that since the government began drafting regulations and laws in 2005 and by the end of June 2023, the country has a total of 24 operational SEZs.
He highlighted that these zones have played an important role in diversifying the Cambodian economy, industries and sources of capital investment from various countries.
According to Vuthy, over 90 per cent of the investment in the garment, footwear and travel goods sectors in the country is located within these zones.
The CDC reported that by the end of the first half of 2023, the Kingdom’s functioning SEZs primarily focused on industries such as garment, footwear, travel products, auto parts, electronics, car tyres and auto and bicycle assembly. Among the zones, there are as many as 655 factories and companies registered, representing an investment of about $8.1 billion.
