Govt grants incentives to 42 projects worth $565M in S’ville
Govt grants incentives to 42 projects worth $565M in S’ville
The Royal Government of Cambodia (RGC) approved special incentives for 42 investment and business projects in Sihanoukville. With a sum budget of $565 million, these projects are expected to create nearly 7,500 jobs for residents.
A day after the Ministry of Economy and Finance (MEF) announced the extension of special incentives, Hean Sahib, Advisor to the Prime Minister, led the delegation to review investment applicants under the ‘Special Program to Promote Investment in Preah Sihanouk Province 2024’ framework in Phnom Penh on January 23.
Sabib, also Chairman of the Preah Sihanouk Province Investment Promotion Working Group (SHVIP), approved special incentives for 15 projects related to stalled buildings, 12 new projects, three expansion projects and 12 business operations with a total investment capital of $565 million.
The RGC has decided to extend the ‘Special Program to Promote Investment in Preah Sihanouk Province 2024’ until the end of 2025, preserving existing measures to support the province’s development and achieve the government’s objectives, he said.
“The 42 approved projects included the customs warehouses, resorts in Kong Rong Samloem Island, eco-agrotourism projects, industrial park projects, hotels and multi-functional buildings which are estimated to create about 7,350 jobs for citizens in this coastal province,” Sabib said.
Responding to Khmer Times query about the potential of the logistics sector in SHV, Chea Chandara, President of the Logistics and Supply Chain Business Association in Cambodia (LOSCBA), highlighted that the RGC has implemented several initiatives to address construction bottlenecks in this key coastal province.
“These efforts have produced tangible results, despite the challenges faced after the departure of Chinese investors, particularly in completing the construction of many large-scale buildings,” Chandara said.
Given the province’s location and its strong potential for export and import activities, Prime Minister Hun Manet recently directed the establishment of a logistics zone to strengthen its capabilities further, he added.
Chandara emphasised that Sihanoukville is home to the largest port in the country by cargo volume, handling significant shipments annually. With its focus on special economic and industrial zones, the province presents considerable potential for transportation and investment opportunities.
Mean Sovannarith, Co-Founder and CEO of DeGrand Realty Co Ltd, expressed optimism about the potential of Sihanoukville, stating that if the investment figures and implementation activities align with the set targets, along with participation from investors, he believed the province’s economy holds significant potential for the entire country, as envisioned by the government over five years ago.”
“These projects will not only generate economic benefits but also create jobs for locals and attract more tourists to the province. Currently, tourism bypasses the provincial capital and focuses on the surrounding islands, which has led to a decline in local business activity,” he explained.
He stressed the importance of these projects in creating job opportunities and fostering business activities in SHV and neighbouring provinces to benefit local citizens, thereby significantly increasing their income and reducing immigration.
Sovannarith also reflected on the impact of Chinese investors, highlighting how their presence dramatically transformed the province, only for them to depart from the coastal city in late 2019.
“The investments by the Chinese turned the province from a coastal tourist destination, popular among international visitors, into something resembling a business hub much like Shanghai city,” he told Khmer Times.
It may be informed that on January 22, MEF announced its decision to extend special incentives in Sihanoukville to boost business activities and accelerate development in this promising coastal province.
The incentives focus on reviving stalled building projects, attracting new investments, and expanding existing ones, with the SHVIP overseeing and implementing these measures as a “single point of entry” for investors, the MEF press release said.
