The Overseas Cambodia Investment Corp (OCIC) Chairman, Neak Oknha Pung Kheav, has confirmed his own company is building a 500-hectare industrial park in Kampong Speu province which will also be an SEZ (Special Economic Zone).
The Khmer Times reports that once the development has been completed, they will try and attract investors from China. The industrial park is currently being fitted with a drainage system, water, electricity and other facilities being installed.
“We are developing the industrial park in Kampong Speu along the National Road 51. We are now seeking to collaborate with one big Chinese firm, specialising in construction machinery, to set up a factory in the zone. We are in the process of negotiating with them,” said Neak Oknha Pung Kheav.
In the report, he says that around $20 million will be spent on the land and $10 million for other facilities. It was confirmed that “four to five companies have signed a deal” but they have only purchased land, and not built factories.
It is hoped additional interest will be generated from garment factories in Veng Sreng Street in Phnom Penh.
SEZs in Cambodia
SEZs in Cambodia attract foreign investors from China, Japan, Korea, Malaysia, the United Kingdom and the US. There are conflicting reports on the number of SEZ in Cambodia by 2020.
The KT says out of the 36 approved SEZs, 17 have commenced operations in the Kingdom of Cambodia. But other reports suggest there are more than 50 SEZs in Cambodia. These employ a combined 130,000 people and have over 450 factories operating in them.
Chrek Soknim, president of Cambodian Valuers and Estate Agents Association (CVEA) told the Khmer Times “We will see the Special Economic Zone of the National Road 51 and national road 44 in the Kampong Speu bloc. I think those areas will become commercial because more and more factories are setting up along the National Road 51and national road 44.”
Some of the key attractions of the SEZ in Kampong Speu are the ring road on National Road 51 which allows for easy transportation. Many Special Economic Zones also have built-in customs stations, meaning checks and duties can be handled before the goods arrive at ports of export.
Cambodian exports amounted to $14.53 billion and imports $22.19 billion in 2019. Exports worth $2.7 billion went through the Cambodian SEZs in 2019, up 27% from 2018, the Ministry of Economy and Finance data shows.