by Beyond Realty 
In a groundbreaking move that promises to reshape the economic landscape of Cambodia’s coastal province, Prime Minister Samdech Hun Manet unveiled an ambitious initiative on January 31, 2024, to boost investment in Sihanoukville. This comprehensive program is part of a broader strategy to transform Sihanoukville into a dynamic special economic zone, catalyzing industrial growth, economic expansion, and the revitalization of tourism and real estate sectors.
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Infrastructure Developments Pave the Way
The completion of the express highway linking Phnom Penh to Sihanoukville in 2023 has been a pivotal development for the region. This state-of-the-art highway has dramatically reduced travel time between the capital and the coastal province, positioning Sihanoukville as a prime destination for both local and international tourists. The increased accessibility has breathed new life into Sihanoukville’s tourism industry, encouraging more frequent visits and longer stays.
Adding to this, AirAsia’s new domestic flights connecting Phnom Penh and Siem Reap with Sihanoukville have further boosted tourist numbers and facilitated business travel. This improved air connectivity enhances the province’s appeal as an investment hub, crucial for the success of the government’s investment promotion program.
The Special Program for Investment Promotion: A Closer Look
The “Special Program to Promote Investment in Sihanoukville 2024” is designed to tackle specific challenges and unlock the province’s full potential. It targets three main areas of investment and business activities:
Revival of Stalled Construction Projects
The program offers an array of incentives to revive stalled construction projects, including income tax exemptions, minimum tax relief for an additional three years, a 0% VAT exemption for construction and renovation, a five-year withholding tax exemption on real estate leases, and waivers on property taxes and administrative sanctions. These measures aim to rejuvenate Sihanoukville’s landscape, transforming unfinished buildings into vibrant commercial and residential spaces.
Immediate Start of New Projects
For new investment projects unrelated to frozen constructions, the program provides streamlined procedures and incentives to kickstart activities in 2024. These measures are expected to attract fresh capital and innovative ventures, fostering a new wave of economic activity and job creation in the province.
Expansion of Existing Investments
Existing projects looking to expand will benefit from specific criteria and support measures to be revealed in 2024. This initiative ensures that current investors are encouraged to grow their operations, contributing to sustained economic development in the region.
To facilitate these initiatives, a special working group chaired by HE Dr. Hean Sahip, Secretary of State of the Ministry of Economy and Finance, has been established. This group will serve as a one-stop shop for streamlining permit and license approval processes, minimizing bureaucratic hurdles for investors.
Transforming Sihanoukville’s Tourism and Real Estate Landscape
The strategic focus on reviving stalled construction projects is set to profoundly impact Sihanoukville’s real estate market. There is an increasing demand from foreigner real estate investors. Refer to our guide on how to own land legally as a foreigner in Cambodia. Completing these projects will enhance the province’s skyline and increase the availability of high-quality commercial and residential spaces. This transformation is expected to attract both domestic and international investors, driving up property values and stimulating further development.
The new express highway and enhanced air connectivity have already delivered a surge in tourists from Phnom Penh and other parts of Cambodia. Sihanoukville’s beaches, casinos, and vibrant nightlife are attracting more visitors than ever before, providing a significant boost to local businesses such as hotels, restaurants, tour operators, and retail outlets.
Koh Rong, Sihanoukville’s idyllic island neighbor, is also benefiting from these developments. The island’s pristine beaches and crystal-clear waters have always been a draw, but improved transportation links have made it more accessible to a wider audience. The increase in tourists has spurred investment in Koh Rong’s hospitality sector, with new resorts and leisure facilities emerging to cater to growing demand.
A Promising Future
The Cambodian government’s proactive measures to promote investment in Sihanoukville are set to transform the province into a thriving economic and tourist hub. The strategic initiatives to revive stalled projects, encourage new investments, and expand existing businesses are expected to create a ripple effect, stimulating economic growth and enhancing the quality of life for local residents.
As the express highway and new flight routes continue to draw more visitors, Sihanoukville and Koh Rong are poised for a new era of prosperity. With a revitalized real estate market, burgeoning tourism industry, and robust government support, Sihanoukville is set to become a cornerstone of Cambodia’s economic future, offering unparalleled opportunities for investors and tourists alike.
