Special Economic Zones (SEZs) have become a pivotal factor in Cambodia’s economic development, offering unique opportunities for both domestic and international investors. These zones have proven to be highly effective in attracting companies to establish factories and enterprises, contributing significantly to the country’s industrial growth. As of early 2025, the Royal Group Phnom Penh Special Economic Zone (RGPPSEZ) and Royal Group Kandal Special Economic Zone (RGKSEZ) have shown remarkable export performance, with figures surpassing $430 million in the first quarter alone. This marks an almost 10% increase compared to the same period in 2024.
Strong Export Growth from SEZs
In the first quarter of 2025, the combined exports from RGPPSEZ and RGKSEZ reached a total of $431 million. This represents an 8.6% growth over the $397 million reported in Q1 of 2024. This substantial increase underscores the growing importance of SEZs in Cambodia’s economy, positioning them as key drivers of export activity and manufacturing.
These zones are home to a wide range of industries, from automotive and electronics to garments, food and beverages, and household goods. In total, the two SEZs host 117 companies from 14 different countries, highlighting the international appeal of Cambodia’s SEZs.
Job Creation and Economic Impact
As of April 2025, the two SEZs employed 50,746 workers, with the majority (48,730) working in RGPPSEZ and the remaining 2,016 in RGKSEZ. The continued expansion of these zones has been a key contributor to job creation in Cambodia, providing employment for a growing number of Cambodians while also attracting foreign professionals. Currently, 802 foreign professionals from countries such as China, Japan, Vietnam, Thailand, and Malaysia contribute their expertise to the development of the SEZs.
Uematsu Hiroshi, CEO of PPSP, emphasized that the SEZs play an essential role in transforming Cambodia’s industrial sector. He noted that the development of these zones is not only an important engine for job creation but also a significant factor in the broader economic development of Cambodia.
Why Investors are Drawn to Cambodia’s SEZs
Cambodia’s SEZs offer a range of attractive benefits that make them appealing to investors. Strategically located near population centres with easy access to major ports, these zones provide investors with robust transportation logistics. Simplified export-import documentation processes, as well as access to a variety of investment incentives, further enhance their appeal.
Sam Soknoeun, Chairman of SAM SN Group, pointed out that these factors have driven the rise in investment and exports from Cambodia’s SEZs. The efficient management systems within these zones ensure that investors can operate with greater ease, creating a supportive environment for business growth.
The Expanding Network of SEZs in Cambodia
Cambodia has seen a steady increase in the number of operational SEZs over the past few years. By the end of 2024, Cambodia had 30 operational SEZs, up from 26 in 2023. These SEZs are spread across 12 provinces and cities, including Svay Rieng, Preah Sihanouk, Banteay Meanchey, and Kandal. The continuous growth of SEZs indicates Cambodia’s growing attractiveness as a destination for both local and international investment.
Conclusion: A Bright Future for SEZs in Cambodia
As Cambodia continues to develop its infrastructure and expand its SEZ network, the future looks bright for foreign investment in the country. The SEZs have proven to be vital in creating jobs, driving exports, and transforming Cambodia into an increasingly attractive destination for manufacturing and industrial investment. The government’s ongoing efforts to improve the ease of doing business and provide investment incentives are expected to further strengthen Cambodia’s position as a regional hub for business and trade.
With continued growth and expansion, Cambodia’s SEZs are well-positioned to remain at the forefront of the nation’s economic development, offering vast potential for both domestic and international businesses.
