24 more Sihanoukville projects get special incentives
24 more Sihanoukville projects get special incentives
With 24 more projects getting the approval for incentives under the ‘Special Investment Promotion Programme for Preah Sihanouk Province’ initiated by Prime Minister Hun Manet in January this year, the total number of projects under the scheme rose to 85.
The decision on the new projects worth $129 million was taken by the Investment Promotion Working Group for Preah Sihanouk at a review meeting at the Office of the Ministry of Economy and Finance on July 31.
The meeting was led by Hean Sahib, Secretary of State of the Ministry of Economy and Finance and Chairman of the Investment Promotion Working Group for Preah Sihanouk, under the guidance of Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, said an official statement.
The Special Investment Promotion Programme was initiated mainly to solve the issue of unfinished and abandoned constructions in the coastal city since 2019.
The newly approved projects for incentives include buildings under construction, new constructions to be launched in 2024, expansion plans and existing projects.
Under the framework of this special programme, from February to June 2024 the Investment Promotion Working Group decided to provide incentives to 61 projects with a total investment of approximately $3.7 billion US dollars.
This number has now increased to 85 projects. According to the statement, to ensure smooth implementation of the programme and to address other challenges, the team monitored the implementation of the incentives, provided support to the investors and reported the progress of the initiative at the meeting regularly.
The special incentives programme covers four types of projects, such as those involving stranded building constructions, non-stranded buildings that can be operational in 2024, expansion projects and also other existing projects.
Hean Sahib, the leader of the working team, highly appreciated the support, especially the commitment and willingness of the team and the ministries involved in contributing to the smooth implementation of special programmes.
The move to solve the crisis created by the unfinished buildings, left mostly by Chinese investors, gathered momentum last year following criticism that they were an eyesore in the coastal city known for its tourism potential.
Since its inception, the Investment Promotion Working Group has been actively implementing measures to attract investment to the province. Its efforts include the creation of designated development zones, the drafting of a sub-decree for granting residence visas for long-term investments and the promotion of existing industrial and special economic zones.
Incentives under the programme include exemption from income tax and minimum tax for an additional three years, exemption from value-added tax till the completion and improvement of stalled building constructions, five-year withholding tax exemption on real estate lease, exemption of property tax and the exemption of various administrative sanctions.
The government had identified 362 stalled building constructions in Sihanoukville as of January 2024. It may be noted that since 2016, investment in Sihanoukville has grown rapidly, especially with the growth of a large number of hotels, restaurants, shops, and other facilities, mostly due to Chinese investments.
However, in the period from 2019 onwards, changes in the socio-economic situation combined with the spread of Covid-19 and other global challenges have caused the construction of many buildings to be suspended or stopped.
