Special Economic Zones (SEZs) have emerged as a cornerstone of Cambodia’s economic strategy, significantly contributing to export growth and foreign direct investment (FDI) inflows. Over the past three years, these strategically designated zones have accounted for nearly one-fourth of Cambodia’s total export value, underscoring their growing importance in the Kingdom’s development agenda.
SEZs Fuel Export Growth and Industrial Diversification
Cambodia currently has 30 operational SEZs spread across 12 provinces and the capital city. These include 9 in Svay Rieng, 5 in Preah Sihanouk, and multiple zones in Banteay Meanchey, Koh Kong, and Kandal. This is a notable rise from 21 zones in 2020 to 30 in 2024, reflecting the country’s steady expansion of industrial capacity and investment-ready infrastructure.
Speaking at a workshop on “Promoting Green Investments in Special Economic Zones in Cambodia” on July 19, Sar Sinera, Deputy Secretary-General of the Cambodian Investment Board (CIB) under the Council for the Development of Cambodia (CDC), highlighted the evolving role of SEZs. The event introduced the Eco-Industrial Park (EIP) framework and discussed policy initiatives aimed at fostering environmentally responsible industrial development.
Sinera emphasized that SEZs are not only driving Cambodia’s export performance but are also key to attracting FDI, promoting industrial growth, and integrating Cambodia more deeply into global value chains. He noted that the Kingdom’s progressive investment laws, supported by specific sub-decrees, offer attractive incentives for both traditional and green investments.
Promoting Green Investment and Eco-Industrial Zones
The Cambodian government is actively promoting green investments in SEZs by encouraging technologies and industries that support environmental sustainability. These include renewable energy, climate-resilient technologies, environmental conservation efforts, and circular economy practices.
Sinera expressed confidence in the country’s ability to attract investment across various sectors, particularly in environmentally friendly industries. He called for continued collaboration among stakeholders to realize the full potential of SEZs as engines of sustainable economic growth.
“Cambodia’s SEZs play a vital role in economic development by attracting foreign direct investment, promoting industrial growth and economic diversification, generating employment and integrating Cambodia into global value chains,” Sinera stated.
Infrastructure and One-Stop Services Attract Investors
The appeal of SEZs lies in their comprehensive infrastructure and investor-friendly services. Sam Soknoeun, Chairman of SAM SN Group, reiterated that SEZs offer convenient and streamlined business operations. This includes well-developed roads, reliable electricity, and one-stop service centers that simplify administrative processes for both domestic and international investors.
“SEZs are designed to support business efficiency, from importing raw materials for manufacturing to exporting finished goods to international markets,” Soknoeun explained.
While textile and garment products remain the dominant exports from these zones, Cambodia is now positioning itself to attract more diversified industries. There is growing interest from manufacturers of electronic components, machinery, and advanced technology, indicating a gradual shift towards higher-value industrial production.
SEZ Expansion Reflects Investor Confidence
The steady rise in the number of operational SEZs—from 21 in 2020 to 30 by the end of 2024—demonstrates investor confidence in Cambodia’s economic environment. The expansion of SEZs has been accompanied by government efforts to improve regulatory frameworks, streamline investment procedures, and align industrial development with sustainability goals.
The presence of SEZs in both coastal and inland provinces allows for balanced regional development and better access to key logistics corridors. Provinces such as Preah Sihanouk benefit from proximity to deep-sea ports, while zones in Banteay Meanchey and Svay Rieng leverage their proximity to Thailand and Vietnam, respectively.
A Platform for Cambodia’s Green Industrial Future
Cambodia’s vision for its SEZs extends beyond economic growth. The push for eco-industrial development is a forward-looking move aimed at ensuring long-term sustainability, competitiveness, and environmental responsibility. By adopting the Eco-Industrial Park model, Cambodia aligns itself with global best practices in sustainable industrialization.
The government’s commitment to enabling green investments is evident in the legal and regulatory ecosystem it continues to build. Policies supporting environmental protection, climate resilience, and green energy are already in place, and further institutional support is expected to attract investors with a focus on sustainability.
Conclusion
Special Economic Zones in Cambodia are rapidly evolving into dynamic hubs for export-oriented and green industrial growth. With strong legal incentives, modern infrastructure, and a growing commitment to sustainability, these zones are helping the Kingdom chart a new course toward economic diversification and environmental stewardship.
As Cambodia deepens its integration into regional and global value chains, SEZs will remain critical to maintaining the momentum of inclusive and sustainable development. With the right investments and continued public-private collaboration, these zones can serve as a model for how emerging economies can grow greener, smarter, and more resilient.
