Govt approves incentives worth $7.8 billion for 392 projects in Preah Sihanouk

Govt approves incentives worth $7.8 billion for 392 projects in Preah Sihanouk

The objective is to facilitate smooth investment flows, stimulate cash circulation in the economy, increase income, and create employment opportunities for local communities.

In a span of 21 months—from January 2024 to September 2025—the Preah Sihanouk Province Investment Promotion Working Group has decided in principle to grant incentives to 392 investment projects with a combined estimated capital of $7.8 billion, according to a statement obtained by Khmer Times on Sunday. The total projects are expected to generate 50,670 jobs.

Hean Sahib, Senior Advisor to the Prime Minister and Chairman of the Preah Sihanouk Province Investment Promotion Working Group, last week presided over a working group meeting at the Ministry of Economy and Finance. The session focused on reviewing proposals for incentives, concessions, procedural streamlining, and dispute resolution for investment and business projects in Preah Sihanouk province.

The meeting was attended by Secretaries of State, Undersecretaries of State, Director Generals, Deputy Directors-General, representatives of ministries and institutions, the Preah Sihanouk Provincial Administration, and various experts.

Sahib informed the meeting that, as in previous sessions, the working group would review and decide in principle to grant special incentives to qualifying projects. Once the principles are approved, the working group, along with ministries and relevant institutions, will coordinate to resolve issues, address requests, and streamline procedures to ensure that practical incentives are delivered swiftly.

These incentives include tax breaks, customs exemptions, and the expedited granting of licences, permits, and certificates, such as company registrations and factory opening announcements. The objective is to facilitate smooth investment flows, stimulate cash circulation in the economy, increase income, and create employment opportunities for local communities.

Sahib stressed three key tasks for the working group: first, to issue incentive principles; second, to translate these principles into practical incentives; and third, to promote the maximum use of local labour and raw materials. This, he said, will help transfer knowledge and skills to the local workforce and boost Cambodia’s capacity for domestic production in both quality and quantity.

The working group has also collected data on labour demands, identifying 645 positions in Preah Sihanouk in coordination with the Ministry of Labour and Vocational Training. Additionally, the provincial administration has helped secure jobs for 539 migrant workers returning from Thailand.

As a result of the September 30 meeting, the working group decided in principle to provide incentives, concessions, and procedural simplifications to 17 projects with a total estimated investment of $280 million and the potential to create approximately 2,195 jobs.

These include 10 projects related to stalled buildings, five new projects, and two existing projects. Among them are a mixed-use business centre, an aluminium processing plant, a pet supplies factory, a multifunctional building, and a hotel.

From 2024 to September 2025, the working group has approved incentives for 392 projects: 186 involving stalled building projects, 166 new investment projects, 25 expansion projects, and 15 existing investments.

In addition to approving these principles, the working group has actively facilitated practical benefits, including enterprise registration, exemptions from stamp duty, real estate tax, income tax, and zero-rated value-added tax. Investors have also been granted permission to import construction materials with state-paid taxes and receive exemptions from public service fees for obtaining licences and registering qualified investment projects.

The Preah Sihanouk Provincial Investment Promotion Working Group has called on investors and business operators to accelerate their applications to benefit from these “special incentives” covering tax breaks, administrative facilitation, and streamlined investment procedures.

Speaking to Khmer Times, Lor Vichet, Vice President of the Cambodia Chinese Commerce Association (CCCA), commended the Royal Government’s sustained commitment to driving investment into Preah Sihanouk, highlighting its role as a cornerstone in Cambodia’s long-term economic strategy. He noted that the province has rapidly emerged as one of the country’s most dynamic growth centres.

Vichet emphasised Preah Sihanouk’s strategic location as a major attraction for investors.

“With a deep-water port at its disposal, the province can efficiently handle both imports and exports. This maritime gateway enhances transport connectivity and provides direct access to global markets, positioning Preah Sihanouk as a highly competitive destination for international business,” he explained.

He further pointed out that investors are supported by a well-developed infrastructure. Reliable road networks, stable electricity supply, and sufficient water resources have created a strong base for industrial expansion. Combined with a readily available skilled workforce, these factors have allowed the province to meet the demands of manufacturing and logistics enterprises.

“This aligns perfectly with the government’s vision to transform Preah Sihanouk into a modern industrial and commercial hub,” Vichet said. “The province’s trajectory is one of sustainable development, driven by new job opportunities and a steadily improving investment environment.”

Looking ahead, projections indicate that Preah Sihanouk’s GDP per capita could surpass $13,000 over the next 15 years, as rapid economic growth cements its position as a key industrial and logistics centre within ASEAN.

This positive outlook was echoed at the recent investment summit Preah Sihanouk province: Cambodia’s Rising Star, where the Provincial Investment Promotion Working Group underlined strong investor confidence and robust momentum for future growth.

The Royal Government is also pressing ahead with a comprehensive master plan to transform Preah Sihanouk province into a model multi-purpose special economic zone, reinforcing its position as a key driver of national development.

Mang Sineth, Governor of Preah Sihanouk province, stated recently that the plan is designed to complement the special investment promotion programme while ensuring sustainable and balanced development at both the provincial and national levels.

The master plan outlines four core development zones: an integrated urban area, a luxury residential area, a high-end tourism zone, a trade centre, and an international financial hub. In parallel, an industrial and logistics zone is planned to serve as a major industrial park, special economic zone, and international gateway, supported by a national logistics centre with links to ASEAN and global markets.

With strategic advantages in land, water and air transport, Preah Sihanouk has become a vital logistics hub. In 2023, the province recorded a total product value of approximately $1.617 billion, with a per capita GDP of $4,602 and an economic growth rate of 6 percent. The master plan aims to accelerate this momentum and attract more high-value investments.

khmertimeskh