Economy & Preah Sihanouk: 27 projects worth $306 million benefit from special incentives

27 new projects representing $306 million in investment were recently approved for incentives under the “Special Investment Promotion Programme for Sihanoukville Province” launched by Prime Minister Hun Manet in January this year.

The decision to grant these incentives was made by the Investment Promotion Working Group for Sihanoukville, headed by Hean Sahib, Secretary of State of the Ministry of Economy and Finance, at the 9th review meeting held at the ministry last week, the ministry's statement said. The special investment promotion programme was launched by the Prime Minister mainly to solve the problem of unfinished and abandoned buildings in the coastal city since 2019.

Since its creation, the task force has actively implemented measures to attract investment to the province. Its efforts include the creation of development zones, the drafting of a sub-decree for the granting of residence visas for long-term investment and the promotion of special industrial and economic zones.

New projects include an aluminium refinery, a steel factory, an animal feed factory, a furniture factory, multi-purpose buildings, housing, electric vehicle charging stations, hotels and restaurants.

This brings the number of projects eligible for special incentives under the programme to 110. Hean Sahib mentioned that in addition to reviewing projects eligible for incentives, the task force was also implementing measures to improve the investment climate in the province, including a safe city campaign, the organisation of investment facilitation forums, the preparation of new types of special economic zones and support for NGOs.

Incentives under the programme include exemption from income tax and minimum tax for three years, exemption from value-added tax until completion and improvement of buildings, exemption from property tax for five years, exemption from property tax and exemption from various penalties and administrative measures.

The government identified 362 blocked buildings in Sihanoukville in January 2024. Since 2016, investment in the province has increased rapidly, in particular with the growth of a large number of hotels, casinos, restaurants, shops and other businesses, mainly thanks to Chinese investment.

However, from 2019 onwards, the socio-economic situation linked to the cessation of casino activities, and the crisis linked to the Covid-19 pandemic have led to a halt in the construction of many buildings.