The Cambodian government is working towards creating a special economic zone (SEZ) in Preah Sihanouk province (Sihanoukville) after a designation was signed earlier this year. The development will play a pivotal role in the recovery of Cambodia’s economy since the Covid-19 pandemic.
A sub-decree was signed by Prime Minister Hun Sen in June 2021 that will make Preah Sihanouk province a multi-purpose SEZ. An SEZ is an area within a country where business and trade laws are different from the rest, with the aim to increase trade balance, increase employment, investment, and effective administration.
The SEZ will be modelled on Shenzhen in China which once started in a similar way from a small fishing hamlet to a manufacturing powerhouse and high-tech innovator, with the economic planners involved hoping to turn Sihanoukville from a small coastal city to a manufacturing and shipping stronghold. In October the Cambodia’s Ministry of Economy and Finance (MEF) partnered with the Urban Planning and Design Institute of Shenzhen as consultants to lead the development and create a masterplan.
James Hodge Managing Director of CBRE told Khmer Times yesterday “Despite its troubles, Preah Sihanouk has all the elements needed to formulate a successful coastal development zone that contributes significantly to sustainable economic growth for Cambodia.
‘Improving infrastructure, especially the new road systems, the expressway, the continued expansion of the port and growing capacity for air transport mean that the province will soon be undisputedly the most connected and accessible province in Cambodia. What’s more, its natural resources including its beaches, islands, and forests act as an excellent backdrop for the creation of a high-quality environment.”
Hodge added that these attributes indicate that the province is well-positioned as a hub for tourism and manufacturing, which will likely form the two key pillars of a broader and more diverse economy for the province.
The multi-purpose SEZ designation provides the framework for the authorities to martial the resources available to them and to create a compelling and competitive offering that will attract investment and business into the province.
“The fact that the multi-purpose SEZ model can be flexible and create appealing offerings for a range of business sectors, from manufacturing and logistics to services and hospitality, means that if correctly stewarded, an eco-system of mutually supportive economic growth drivers could be formed, delivering circular benefits for the province and the country.”
“Through the creation of a regionally competitive business eco-system, Preah Sihanouk has the potential to become a true engine of Cambodia’s growth and to truly create a diverse economy that delivers for a wider range of people and for the long-term benefit of the country.”
“There remains a long way to go, but we can see that similar schemes have worked well in other regional contexts, and there is a good deal of optimism that this can be a game-changer for Preah Sihanouk province,” Hodge said.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
