Cambodia & Economy : Preah Sihanouk's investment incentive program attracts $154 million in new projects

Cambodia's ambitious plan to transform Preah Sihanouk province into a regional investment hub continues to gain momentum, with the government approving a further 10 projects worth $154 million under its “Special Investment Promotion Program”.

Sihanoukville. Photo CG

The latest approvals bring the total number of projects benefiting from the program to 297, with a combined capital commitment of over $7 billion since the program began in 2024.

The green light for the new projects was given at the 16th meeting of the program's working group, held on May 29 at the Ministry of Economy and Finance in Phnom Penh. The session, chaired by the Ministry's Secretary of State, Hean Sahib, underlined the government's determination to foster a more attractive business environment in the context of growing global trade challenges.

Navigating headwinds

Addressing the meeting, Hean Sahib acknowledged the headwinds facing Cambodia's export-oriented economy, including the intensification of global trade barriers and the need to protect domestic industries. These factors, he noted, have complicated the landscape for exports and industrial development.

“Despite these difficulties, the Royal Government remains committed to improving the investment climate in Preah Sihanouk,” said Mr. Hean. “Our strategy is twofold: to retain existing investors and attract new ones, while solving problems through the one-stop-shop system.”

Mr. Hean added that the current international environment was prompting Cambodia to accelerate the diversification of its economy and redouble its efforts to attract foreign investment. The government's approach includes a series of incentives, privileges and simplified procedures for approved projects, which will remain in place until at least the end of 2025.

A diversified project portfolio

Of the ten newly approved projects, four involve the resumption of previously interrupted construction, while four others are entirely new projects. The remaining two projects include an extension to an existing operation and another that is already underway. The projects cover a wide range of sectors, from factories and commercial buildings to educational establishments, floating ports, hotels and residential complexes.

Collectively, the latest batch of investments is expected to generate around 1,200 new jobs, contributing to the province's economic recovery.

Sihanoukville. Photo CG

Since the launch of the incentive program last year, the task force has approved 297 projects with an estimated total capital value of $7.029 billion. These projects are expected to create around 53,000 jobs, underlining the importance of the program for local employment and economic growth.

Recovery and optimism in Sihanoukville

Im Senghour, branch manager of Century 21 Zillion Holding in Sihanoukville, told the Phnom Penh Post that the province's economy was showing clear signs of recovery from the severe recession caused by the Covid-19 pandemic in 2020. He credited the government's targeted policies with reviving the construction, real estate, tourism and overall economic sectors.

“The special investment promotion program in Preah Sihanouk province is making steady progress,” said Senghour. “Although the impact is not yet very strong, as everything depends on the global economic situation, we are seeing previously stalled activities come back to life.”

Future prospects

The task force plans to inspect a further 30 projects in June, while continuing to encourage businessmen and investors to apply for the program's special benefits. These include tax incentives, administrative support and more flexible procedures.

As Preah Sihanouk positions itself as a magnet for investment, government officials and business leaders hope that the province will continue its upward trajectory and that the policy will translate into tangible progress for Cambodia's coastal economy.