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The Better Cambodia > Blog > News > Final Phases of Preah Sihanouk SEZ Development Plan Nears Completion
News

Final Phases of Preah Sihanouk SEZ Development Plan Nears Completion

Surya Narayan
Last updated: January 30, 2024 1:25 am
Surya Narayan
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The coastal province of Preah Sihanouk is on the brink of a significant transformation as its development plan to become a multi-purpose Special Economic Zone (SEZ) is nearing completion, according to Deputy Governor Long Dimanche. This strategic plan is anticipated to be presented to the Cambodian government for approval and implementation by the second quarter of this year.

As a cornerstone of Cambodia’s Industrial Development Policy for 2015-2025, the master plan is designed to serve as a dynamic blueprint for the province’s future growth. It aims to position Preah Sihanouk not only as a pivotal economic hub within Cambodia but also as a significant player in the broader regional economy.

The ambition behind the SEZ is to model Preah Sihanouk after Shenzhen, China’s remarkably successful SEZ. This model transformed Shenzhen from a modest fishing village into a global manufacturing and high-tech innovation center. The goal for Sihanoukville is to mirror this success and become a vibrant economic zone that leverages smart technology and serves as a critical node in regional and international production networks.

Dimanche shared on social media that after more than two years of diligent planning, analysis, and preparation, the proposal for the SEZ is in its final stages and set for government review in the upcoming months. The plan is supported by the expertise of the Urban Planning and Design Institute of Shenzhen (UPDIS) in China.

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With the SEZ’s realization, Sihanoukville’s population is projected to more than triple, increasing from 300,000 to one million residents. This growth is expected to bolster the city’s status as a leading economic and industrial hub in Southeast Asia, contributing significantly to Cambodia’s post-pandemic economic revival.

The province has already seen substantial infrastructure improvements, including the completion of 34 new roads and expansions to its port and airport facilities. These developments are part of a broader effort to enhance the region’s logistics and transportation capabilities.

Additionally, the local administration is addressing the challenge of numerous unfinished constructions in Sihanoukville, primarily abandoned by Chinese investors after the 2020 online gambling ban and the onset of COVID-19. An action plan is in place to resolve these issues, focusing on legal resolutions and incentivizing completion through government-offered tax benefits.

Parallel to the SEZ development, the expansion of the Sihanoukville Autonomous Port (PAS) is underway, funded by a substantial loan from the Japan International Cooperation Agency (JICA). This project, initially slated for completion in 2026, has been expedited to finish by 2025, following directives from Prime Minister Hun Manet to transform the port into a significant regional shipping hub. This comprehensive approach to developing Preah Sihanouk promises to significantly impact Cambodia’s economic landscape and regional connectivity.

Source: Khmer Times

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BySurya Narayan
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Founder at The Better Cambodia | Communication Advisor to the Minister attached to the Prime Minister of Cambodia | Marketing Director at True North Lean
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