The entrance to the Royal Group Phnom Penh Special Economic Zone (RGPPSEZ). Post staff
Thanks to the resurgence of global economic growth, the value of exports from the more than 100 factories/enterprises in the Royal Group Phnom Penh Special Economic Zone (RGPPSEZ) was expected to reach nearly $1.9 billion in 2024, marking an increase of nearly 20% over the previous year.
A RGPPSEZ press release, published last weekend, claimed that operations zone have shown consistent positive growth since 2016. From 2016 to 2021, annual exports from factories/enterprises in RGPPSEZ increased from $316 million to $683 million. However, what was even more notable is that exports doubled within just two years, reaching $1.621 billion in 2023.
“In 2024, the zone achieved a record-high export value of $1.880 billion, marking a 16% increase from the previous year. We take immense pride in contributing approximately 7% to Cambodia’s total export value of $26.664 billion,” said the release.
According to RGPPSEZ, after 19 years of continuous development, the zone now hosts 113 companies from 15 countries worldwide. Major sectors include electronics, energy, vehicle assembly and automotive parts manufacturing. These companies have created job opportunities for 47,800 Cambodians and 700 foreign experts, significantly contributing to the country's economic growth.
RGPPSEZ also noted that several key sectors are experiencing ongoing recovery, and highlighted that the zone has welcomed five new companies, further strengthening the Kingdom’s supply chain.
“As the zone developer, these achievements inspire us to continue providing an exceptional special economic zone for both Cambodian and international investors. We remain committed to enhancing business opportunities, contributing to the nation’s economic progress and advancing Cambodia’s industrialisation,” added the release.
A report from the Ministry of Commerce said that by the end of 2024, the Kingdom had approved 49 investment projects in economic zones, with 26 special economic zones currently in operation.
Sam Soknoeun, chairman of SAM SN GROUP, who is exploring the possibility of creating a Cambodia-Japan Special Economic Zone, explained to The Post how special economic zones (SEZs) are playing a significant role in attracting and encouraging more foreign investors to invest in Cambodia.
In SEZs, infrastructure such as roads, energy, and one-stop service offices are provided to meet the needs of the owners of large factories and enterprises.
“All business activities within the special economic zones are made easier for investors, from importing raw materials for manufacturing to exporting products to international markets,” said Soknoeun.
On January 31, 2024, at the “Special Investment Promotion Program in Sihanoukville 2024”, Prime Minister Hun Manet explained that the government is considering creating special economic zones tailored for investors from specific countries, which will help Cambodia attract even more foreign direct investment.
“We are preparing to implement and develop new types of SEZs to complement the existing ones,” he said.
“The zones we are planning for the future will be flexible enough to accommodate any industry. We are currently formulating policies and preparing test zones to attract investments in green technology, green industries and the digital sector,” he added.
He clarified that Cambodia is also preparing special economic zones dedicated to investments from specific countries, according to specific requirements.
