MEF reviews Preah Sihanouk industrial hub plans

MEF reviews Preah Sihanouk industrial hub plans

The planned cluster will provide an organised space for local factories, helping small businesses connect more effectively with larger industrial supply chains.

The Ministry of Economy and Finance (MEF) has reviewed an investment proposal to establish an SME cluster and factory zone in Preah Sihanouk province. The project is expected to drive local economic growth and unlock fresh business opportunities, provided that critical land-related issues are successfully resolved first.

The proposal was discussed at a meeting led by Adviser to the Prime Minister and Chairman of the Investment Promotion Working Group Hean Sahib in Preah Sihanouk Province, at the ministry headquarters on Tuesday.

The planned SME cluster will cover key locations across Preah Sihanouk province, including Kampong Som City, Prey Nob, and Stueng Hav. The region serves as a vital economic centre heavily focused on logistics, tourism, and industrial development.

The meeting brought together representatives from the Ministry of Land Management, Urban Planning and Construction, the Ministry of Agriculture, Forestry and Fisheries, the Preah Sihanouk Provincial Administration and relevant technical officials.

Discussions focused primarily on land-related matters and the actual status of land occupation and use at the locations proposed for the investment project.

Participants provided technical input on the relevant legal framework, procedures for land management and the complexities surrounding existing land occupation in the proposed project areas.

The information is expected to support a comprehensive assessment of the investment proposal before the government considers requests from the company for facilitation measures and special investment incentives.

The review highlights the importance of resolving land-related matters through proper legal and administrative procedures before an investment project of this scale can move forward.

According to the meeting, the investment project has the potential to contribute to economic growth at the local level in Preah Sihanouk province. An SME cluster could provide a more organised environment for businesses and factories while supporting linkages between smaller enterprises and larger industrial activities.

SMEs play an important role in Cambodia’s economy by supporting employment, entrepreneurship and local business activity. The development of a dedicated cluster could potentially provide businesses with greater opportunities to operate within an organised investment environment and participate in wider supply chains.

Preah Sihanouk has also been developing its role as a major economic and investment centre, supported by its port, industrial activities and strategic location along Cambodia’s coast. As a result, investment projects that can strengthen industrial and business activities in the province could contribute to broader efforts to diversify and expand the local economy.

However, the government has stressed that the potential economic benefits of the proposed project must be considered alongside legal requirements, particularly regarding land management and ownership.

Following the discussions, Sahib expressed strong appreciation for the investment project and its potential contribution to promoting economic growth in Preah Sihanouk.

Due to outstanding land occupation issues tied to the company’s proposals, the meeting tasked the working group’s secretariat with maintaining close cooperation with line ministries, institutional partners, and provincial authorities.

Moving forward, the secretariat will conduct further studies and coordinate efforts to resolve all outstanding issues under applicable legal frameworks.

The government will consider granting investment incentives and project facilitation only after all land and legal matters have been fully clarified and addressed.

This approach highlights the government’s commitment to welcoming investment while upholding Cambodia’s legal and regulatory frameworks. For investors, clearing land issues early on guarantees operational certainty, while for authorities, a meticulous assessment ensures transparent and orderly development.

Consequently, the proposed SME cluster remains under evaluation. Once all outstanding issues are resolved, the project will be considered for potential investment facilitation and incentives.

The project supports Cambodia’s strategy to drive local economic growth, boost private-sector activity, and create fresh opportunities for SMEs. By introducing these new industrial developments, Preah Sihanouk will further reinforce its position as a critical hub for national investment.

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