Frozen projects in S’ville lure new investors
Frozen projects in S’ville lure new investors
Eighteen private companies have already applied to invest in frozen construction projects in Sihanoukville province under the Royal Government of Cambodia’s recently-implemented ‘Special Investment Promotion Program in Sihanoukville 2024’, said Kouch Chamroeun, Governor of Sihanoukville Province.
Speaking in a meeting with a Chinese investment delegation from Guangzhou province led by Wang Fuzhou, Under-Secretary of Guangzhou Industrial Investment Holding Group Co., Ltd., Chamroeun said that the ‘Sub-Committee on Resolving Frozen Buildings in Sihanoukville’ has already attracted a series of new investment applications for the construction and management of Sihanoukville-based projects, marking a good start to the newly instated special investment program.
The governor explained to the visiting Chinese investors that in order to attract new investment to stalled projects in the province, the government has assured major financial and practical incentives to incoming developers and business people able to take over downtown buildings for business and investment purposes.
The ‘Special Investment Promotion Program in Sihanoukville 2024’ was officially inaugurated in January this year, with the purpose of assisting various types of incoming investments into the province.
The program covers not only investment projects or business activities linked to stalled construction projects set to commence in 2024 but also investment projects or business activities unrelated to frozen constructions but slated for an immediate start in 2024.
The incentives also extend to the expansion of existing investment projects or business activities, subject to specific criteria.
For investment projects related to stalled or incomplete buildings, the program introduced a comprehensive package of incentives, available immediately.
These incentives include income tax exemption and minimum tax relief for an additional three years post-purchase, 0 percent value added tax (VAT) exemption for the completion of construction and renovation of stalled buildings, a five-year withholding tax exemption on real estate leases, a waiver of property tax and administrative sanction exemptions, exemption from public service fees and fees related to land use permits for construction, streamlined procedures for permit applications related to construction work, concessions on inspection fees and certifications linked to construction and the encouragement of out-of-court dispute resolution mechanisms for investment-related disputes.
The program also ensures investment and business procedures for investors of stalled projects, encompassing all necessary license, certificate and permit applications. As part of the initiative, Sihanoukville real estate market assistance for new investors is also now available, including investor matching services and reference valuation prices for real estate in Sihanoukville.
To oversee the effective implementation of the initiative, a special working group was established under the Ministry of Economy and Finance (MEF) to serve as a one-stop shop for incoming investors seeking real estate investments, able to streamline the permit and license approval process for investment projects and business activities in Sihanoukville.
According to a study by the government completed in September 2023 in the lead-up to the creation of the special investment program, there were 965 construction projects in Sihanoukville province in total, including 1,069 buildings.
Of this total construction, the survey estimated a total investment capital of $4,056,152,112.
However, of these projects, 341 projects, or 364 buildings, were labelled as frozen constructions.
Over 29 projects, including 53 buildings, were deemed to be still under construction.
Over 161 projects, encompassing 177 buildings, were recorded as complete but not yet operational.
Of the total of 965 projects recorded, only 434 projects, including 475 buildings, were confirmed to be fully completed and in operation.
Chamroeun explained to the Chinese investment delegation last week that the future of the province remains bright despite a current bubble in the high-rise sector.
This is because the RGC has designated Sihanoukville as a multi-purpose model special economic zone and has developed a master plan for the development of land in Sihanoukville, the governor explained. The province also has unique geographical advantages, and is the country’s only deep-water international port, he noted.
In response, Wang said that investors coming from Guangzhou are also confident in the Province’s bright future, and are interested in investing in Sihanoukville in the near future under the new investment program.
