The Royal Government of Cambodia has approved special incentives for 42 investment and business projects in Preah Sihanouk province. With a total budget of $565 million, these projects are expected to create nearly 7,500 jobs for citizens.
A day after the Ministry of Economy and Finance announced the extension of the special incentives, Mr. Hean Sahib, Advisor to the Prime Minister, led a delegation to review investment applicants under the ‘Special Program to Promote Investment in Preah Sihanouk Province 2024’ in Phnom Penh on January 23.
Mr. Sahib, who is also the Chairman of the Preah Sihanouk Province Investment Promotion Working Group (SHVIP), approved special incentives for 15 projects related to stalled buildings, 12 new projects, 3 expansion projects, and 12 business operations with a total investment capital of $565 million.
He said the Royal Government has decided to extend the “Special Program to Promote Investment in Preah Sihanouk Province 2024” until the end of 2025, maintaining existing measures to support the development of the province and achieve the government’s goals.
“The 42 approved projects include a customs warehouse, a resort on Koh Rong Sanloem, an eco-tourism project, an industrial park, a hotel and a multi-purpose building, which are estimated to create about 7,350 jobs for residents in the coastal province,” said Sahib.
Responding to a question from The Khmer Times about the potential of the logistics sector in Preah Sihanouk province, Mr. Chea Chandara, president of the Logistics and Supply Chain Business Association of Cambodia (LOSCBA), highlighted that the Royal Government of Cambodia has implemented several initiatives to address construction bottlenecks in the important coastal province.
“These efforts have yielded tangible results, despite challenges following the departure of Chinese investors, especially in completing the construction of many large buildings,” said Mr. Chea Chandara.
He added that given the province’s location and strong potential for export and import activities, Prime Minister Hun Sen recently led the establishment of a logistics zone to further strengthen its capacity.
Mr. Chandara emphasized that Preah Sihanouk Province is the largest port in the country by cargo volume, handling major ship movements annually. With its focus on its special economic zones and industries, the province shows significant potential for transportation and investment opportunities.
Mr. Mean Sovannarith, Co-Founder and CEO of DeGrand Realty Co., Ltd., expressed optimism about the potential of Preah Sihanouk Province, stating that if the investment figures and implementation activities meet the set targets, along with the participation of investors, he believes that the province’s economy will have the potential to significantly increase for the country as a whole, as expected by the government five years ago.
“These projects will not only generate economic benefits, but also create jobs for local citizens and attract more tourists to the province. He explained that currently, tourism bypasses the provincial capital and focuses on the surrounding islands, which has led to a decline in local business activities.”
He emphasized the importance of these projects in creating job opportunities and boosting business activities in Preah Sihanouk Province and neighboring provinces to benefit local people, which can significantly increase income and reduce migration.
Mr. Sovannarith also reflected on the impact of Chinese investors, highlighting how their presence had dramatically transformed the province before they left the coastal city in late 2019.
“Chinese investment has transformed the province from a coastal tourist destination and popular with international visitors to something akin to a commercial hub like Shanghai,” he told the Khmer Times.
On January 22, the Ministry of Economy and Finance announced its decision to extend special incentives in Preah Sihanouk province to boost business activity and accelerate development in the potential coastal province.
The incentives focus on reviving stalled construction projects, attracting new investment and expanding existing projects, with the Preah Sihanouk provincial investment promotion team overseeing and implementing these measures as a “one-stop shop” for investors, the Ministry of Economy and Finance said in a statement.
