- 2024-12-27
Sihanoukville is committed to serving as a key engine of Cambodia's economic growth
The Government of Cambodia is making every effort to transform Preah Sihanouk Province into a dynamic investment and development hub to serve as a key engine of Cambodia's economic growth through significant advances in infrastructure, technology and sustainable development.
The Khmer Times reported that on December 17 in Sihanoukville province "Sihanoukville: At the "Preah Sihanouk Province Cambodia's Rising Star" Investment Summit, Dr. HEAN, Advisor to the Prime Minister of Cambodia, Secretary of State, Ministry of Economy and Finance, and Chairman of the Sihanouk Province Investment Promotion Task Force Sahib highlighted the province's strategic role within the ASEAN framework.
Sihanoukville's vision is to build a sustainable, green ASEAN metropolis in Cambodia, committed to cultural diversity and technological innovation. Projections indicate that by 2038, Sihanoukville will be home to nearly 1 million residents, or 5% of Cambodia's total population. By then, the province is expected to attract 5.4 million tourists annually and its GDP will account for 10 percent of the national economy. Under current plans, Sihanoukville will become a high-income region 12 years ahead of the rest of the country. According to the "Pentagon Strategy" being implemented by the new Cambodian government, the country is committed to achieving the goal of becoming a high middle-income country by 2030 and a high income country by 2050.
Hansahi said the Royal Government of Cambodia is doing its best to turn Sihanoukville province into a vibrant investment hub, driven by strategic investments in infrastructure, trade, tourism and industrialization.
The Cambodia-China Times also reported on December 19 that Jiang Guofeng, deputy director of the General Bureau of Financial Policy of the Cambodian Ministry of Finance and Economy, said at the summit that the master plan for the multifunctional special economic zone in Sihanoukville Province will be officially announced soon, and different industrial regions will be divided in the region, including logistics, industry, commerce, tourism and finance. Jiang Guofeng said the government is planning Sihanoukville's future development policy by referring to the development experience of several international cities, such as Shenzhen and Shanghai in China, as well as Singapore. He also said that the implementation of the master plan will increase the efficiency of infrastructure investments and policies in order to build the region into a regional and international industrial and commercial hub.
In November 2023, Cambodian Prime Minister Hun Manay publicly said that Westport will become a key town that drives the national economy to take off, and will become a financial center and a regional logistics hub in Southeast Asia.
Guided by the Sihanoukville Special Investment Promotion Plan 2024 initiative promulgated by Prime Minister Hun Manay in January 2024, the Investment Summit held on December 17 reflects the government's commitment to accelerate regional development, attract investment and position Sihanoukville as a major economic engine for Cambodia and the wider ASEAN region.
Hansahi said the summit hosted on December 17, which included high-level government officials, business leaders and international stakeholders from China, South Korea, the United States and the European Union (EU), highlighted the province's growing role within the ASEAN framework and its commitment to becoming a major economic engine.
"We are eager to share the unique advantages of investing in Sihanoukville, from our strategic location to our rich cultural heritage, and we invite you to participate in discussions to find innovative solutions to challenges and opportunities," he said.
In the first 11 months of 2024, Sihanoukville has made outstanding achievements, exceeding initial targets in the areas of investment incentives, procedural simplification and dispute settlement. A total of 213 projects were approved in Sihanoukville province, 213 percent higher than the initial target of 100 projects. The projects have a total investment capital of $6.03 billion, exceeding the target of $1 billion, and are expected to create 39,578 jobs, well above the estimated 5,000 jobs.
Of the projects approved,103 initiatives (48 per cent) focused on "unfinished construction ", attracting a total investment of $2.51 billion and creating an estimated 4,558 jobs.
At the same time,86 projects (40 percent) not related to "unfinished construction" invested $2.7 billion and are expected to create about 30,231 jobs.
In addition,17 expansion projects (8%) attracted $768 million in investment and created an estimated 4,748 jobs. Another seven ongoing investment and commercial projects are worth $30 million.
The approved projects span several key sectors, including real estate, tourism and industry. A total of 86 (40%) real estate projects comprised of mixed-use buildings and residential developments with an investment capital of $215 million. Tourism was followed by 60 projects (28%) with an investment of $218 million. The industry sector contributed 35 projects (16 per cent) totalling US $1.99 billion, while the remaining 32 projects involved other sectors and attracted US $237 million in investment. As of October 2024, these initiatives have made significant progress. Of the 165 projects that received special awards, 28 (23%) completed construction, maintenance or improvement work. Another 69 projects (42%) are under construction and 58 projects (35%) have yet to start.
Sihanoukville Province is becoming a prominent metropolis in ASEAN, re-establishing itself as a green, sustainable city model, cultural hub with diverse communities and pilot smart city.
On December 3, 2024, under the leadership of Cambodia's Deputy Prime Minister and Minister of Economy and Finance Amphon Monira and Hansahi, the Sihanoukville Working Group held its 12th meeting to review and adopt the "Special Programme for Promoting Investment in Sihanoukville".
The meeting approved special incentives for 48 projects, including 16 unfinished buildings, 28 new initiatives and four expansion projects, with a total investment of $487 million.
Notable projects include a special economic zone in the Polonap region, an aluminum production plant, a manufacturing facility for home appliances for export to Europe and the Americas, and other priority initiatives.
According to the plan, the Cambodian government will promote the transformation of Sihanoukville province in two phases, the first phase (2025-2028) is to integrate the province into the regional trading system, expand port functions, develop tourism, improve old urban areas, develop new areas, and attract high value-added investment; The second phase (2029-2038) is to consolidate Sihanoukville's position as Cambodia's national gateway and regional hub, with a focus on finance, trade, industry, transport and technology to become a multi-functional, green and smart city, creating high-paying jobs and driving urban prosperity.