Preah Sihanouk key engine for Cambodia’s economic growth
Preah Sihanouk key engine for Cambodia’s economic growth
Efforts to transform Preah Sihanouk into a dynamic centre for investment, driven by strategic investments in infrastructure, trade, tourism, and industrialization are underway, said Hean Sahib, Advisor to the Prime Minister and Secretary of State at the Ministry of Economy and Finance, yesterday.
Speaking at the investment summit titled ‘Preah Sihanouk Province Cambodia’s Rising Star’, in Sihanoukville, Sahib underlined the province’s strategic role within the ASEAN framework. He said the Royal Government is doing its best to transform Preah Sihanouk into a dynamic centre for investment and development through significant advancements in infrastructure, technology, and sustainable practices.
As Chairman of the Preah Sihanouk Province Investment Promotion Working Group, Sahib underscored the summit’s objective of fostering collaboration and partnerships. He noted that the event serves as a platform to encourage meaningful dialogue between stakeholders and promote opportunities for investment in the province.
Guided by Prime Minister Hun Manet’s initiative the ‘Special Program to Promote Investment in Preah Sihanouk Province 2024’, the summit reflected the government’s commitment to accelerating regional development, attracting investment, and positioning Preah Sihanouk province as a key economic engine for Cambodia and the broader ASEAN region.
The summit, attended by high-level government officials, business leaders, and international stakeholders from China, South Korea, the US, and the European Union (EU), highlighted the province’s growing role within the ASEAN framework and its commitment to becoming a leading economic engine.
“We are eager to share the unique advantages of investing in Preah Sihanouk, from our strategic location to our rich cultural heritage, and we invite you to engage in discussions that can lead to innovative solutions for both challenges and opportunities,” Sahib said.
Meanwhile, the working group behind the event reported impressive achievements, with $6.03 billion in investment capital far surpassing the original $1 billion target.
The impressive investment figures are a testament to Preah Sihanouk’s evolving role as an attractive destination for both local and international investors. With ongoing efforts to enhance infrastructure, promote sustainable practices, and attract high-value investments, the province is poised for long-term economic growth and development.
The working group has reported outstanding achievements over the past 11 months, surpassing their initial targets for investment incentives, procedural simplification, and dispute resolution.
A total of 213 projects were approved, exceeding the initial goal of 100 projects by 213 percent. These projects represent a combined investment capital of $6.03 billion, surpassing the $1 billion target, and are expected to generate 39,578 jobs – well above the projected 5,000 jobs.
Among the approved projects, 103 initiatives (48 percent) focused on “unfinished buildings,” attracting a total investment of $2.51 billion and creating an estimated 4,558 jobs.
Meanwhile, 86 projects (40 percent) unrelated to “unfinished buildings” accounted for $2.7 billion in investment, creating approximately 30,231 jobs.
Additionally, 17 expansion projects (8 percent) drew $768 million in investment and are estimated to generate 4,748 jobs. A further seven ongoing investment and business projects worth $30 million are expected to create 41 jobs.
The approved projects span several key sectors, including real estate, tourism, and industry. Real estate, comprising multi-purpose buildings and residential developments, accounted for 86 projects (40 percent), with an investment capital of $215 million. Tourism followed with 60 projects (28 percent), representing $218 million in investment.
The industrial sector contributed 35 projects (16 percent), amounting to $1.19 billion, while the remaining 32 projects covered other sectors, attracting $237 million in investment.
As of October 2024, significant progress has been made across these initiatives. Out of 165 projects receiving special incentives, 28 projects (23 percent) have completed construction, repairs, or improvements.
A further 69 projects (42 percent) are currently under construction, while 58 projects (35 percent) are yet to begin work.
Preah Sihanouk province is on track to become a prominent ASEAN metropolis, rebranding itself as a model green, sustainable city, a cultural hub with diverse communities, and a pilot smart city.
Projections suggest that by 2038, the province will house nearly 1 million residents, making up 5 percent of Cambodia’s total population.
The province is expected to attract 5.4 million tourists annually, and its gross domestic product will contribute 10 percent to the national economy. Under current planning, Preah Sihanouk Province is poised to become a high-income region 12 years ahead of the rest of the country.
On December 3, 2024, the working group in Preah Sihanouk province, under the leadership of Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance (MEF) and Sahib, convened the 12th meeting to review investment and business projects seeking incentives, concessions, and procedural simplifications through the ‘Special Program to Promote Investment in Preah Sihanouk Province 2024.’
The meeting approved special incentives for 48 projects, including 16 involving unfinished buildings, 28 new initiatives, and 4 expansion projects, with a total investment of $487 million.
Notable projects include a special economic zone in Prey Nop district, an aluminum production plant, a facility for manufacturing household appliances for export to Europe and the Americas, a business community in Ream City, and other priority initiatives.
The province’s vision is to establish itself as a sustainable, green ASEAN metropolis, with a commitment to cultural diversity and technological innovation.
Preah Sihanouk Provincial Governor Mang Sineth said that the summit provided an essential platform for open dialogue and knowledge exchange, showcasing the province’s unique advantages and investment opportunities.
“Together, we can explore pathways to tackle emerging challenges and seize new opportunities that arise in our interconnected world,” he said, urging participants to actively engage, network, and share their experiences, underscoring the value of their contributions in shaping the province’s economic future.
