Cambodia SEZ Role In Exports And Investment 2025
The Council for the Development of Cambodia (CDC) approved 10 new Special Economic Zone (SEZ) investment projects in 2024, with total capital amounting to USD 850 million and expected to employ about 4,000 workers.
According to a 2024 Eurocham Cambodia study, SEZs support the country in diversifying its industrial base, moving away from the textile and garment sector. Within the Royal Group Phnom Penh SEZ, the most invested industries are in electrical and electronics for exports.
In Cambodia, there are three types of SEZs: Export Processing Zones (EPZs), Special Economic Zones (SEZs), and industrial parks.
The 10 new SEZs will add to the existing 59 registered SEZs, of which only 29 are actively operating. The country’s main SEZs are based in four major cities; Phnom Penh, Bavet, Sihanoukville, and Poipet.
SEZs Drive Cambodian Exports
According to the Ministry of Commerce (MOC), from January to November 2024, Cambodia’s 16 SEZs contributed approximately USD 5.43 billion to the country’s exports, while the total exports for the year amounted to USD 26 billion. These 16 SEZs encompass a total of 431 factories and enterprises, employing a total of 183,703 workers.
The two main SEZs in Cambodia by export value during this period are Sihanoukville SEZ (SSEZ) and Royal Group Phnom Penh SEZ (RGPPSEZ). According to the Ministry, in the 11 months of 2024, both zones respectively contributed USD 1.49 billion and USD 1.08 billion in exports.
Cambodia’s Special Economic Zones Overview
The Cambodian law on SEZs was approved in 2005. Cambodia’s SEZs provide businesses within each zone with numerous financial incentives, including income tax, customs, and VAT benefits, as well as one-stop service treatment for imports and exports.
Additionally, specially trained government officials are stationed on-site to provide administrative services. In 2020, the SEZs employed at least 161,000 workers from 570 investment projects inside the zones.
The majority of investors into SEZs are from Cambodia, Japan, China, Thailand, and Taiwan. The most common economic activity is light manufacturing, which involves labour-intensive operations in automotive and machinery, electronics, and various other activities, the government’s report said.
In 2024, the Council for the Development of Cambodia (CDC) approved 414 investment projects with a total investment capital of USD 6.9 billion, with 150 projects located inside the Special Economic Zones and 264 projects outside.
Noticeably, over the years, most of the tire manufacturing plants in Cambodia are located inside SEZs, such as Sailun (in Qi Lu Jian Pu Jay SEZ), Wanli Tire Co (SIN Bavet SEZ), The Newbustar (UBE Kratie SEZ), General Tyre Technology (Sihanoukville SEZ), and SVI Cambodia (in RGPPSEZ).
International brands like Coca Cola, Minebea, Denso, Toyota, amongst others are Aldo located in the Cambodian SEZs, including the recently opened Swedish glove manufacturing company ‘Hestra’ in Royal Group Phnom Penh SEZ.
Cambodia’s SEZ Outlook for 2025
New and Upcoming Special Economic Zones
The largest upcoming SEZ in the Kingdom is ISI SEZ which is managed by Golden Port SEZ Development, part of the local conglomerate ISI Group. It is located along the Phnom Penh-Sihanoukville Expressway, and in the first phase of the plan, will be developed over approximately 206 hectares of land, with a total fixed-asset investment of over USD 50 million.
The CBRE Cambodia 2025 study listed other new and upcoming SEZs in Cambodia, which include:
- Grand Bokor SEZ (140+ hectares) in Preah Sihanouk
- Pursat SEZ (140+ hectares) in Pursat
- Kampong Speu SEZ (390+ hectares) in Kampong Speu
- Srae Ambel SEZ (180+ hectares) in Koh Kong
- Koh Kong Zhejiang SEZ (1000+ hectares) in Koh Kong
- KLP.T SEZ (90+ hectares) in Kampong Chhnang
- Royal Group Kandal SEZ (110+ hectares) in Kandal
- Fengfu Svay Rieng SEZ (100+ hectares) in Svay Rieng
Existing Cambodian SEZs
In terms of tenants, Sihanoukville SEZ is currently the largest SEZ in Cambodia and primarily targets Chinese investors. It covers 11.13 square kilometers and houses 175 tenants, employing about 30,000 people, according to 2023 local reports.
Next is the Royal Group Phnom Penh SEZ, which spans 357 hectares and hosts 100 international companies from 14 different nations, but predominantly Japanese investors. The zone employs over 41,550 people as of May 2023.
Another main SEZ includes the Cambodian Zhejiang Guoji SEZ (Preah Sihanouk) which is currently at full capacity. In 2024, they received government approval to develop another SEZ in Koh Kong province, named ‘Koh Kong Zhejiang SEZ.’
Svay Rieng province is home to several Special Economic Zones such as; Tai Seng Bavet, Manhattan SEZ, and Qi Lu Jian Pu Jay SEZ. These SEZs act as a cluster for bicycle production, making Cambodia among the top five largest bicycle exporters in the world over recent years.
Other notable SEZs include the Sihanoukville Port SEZ, and Royal Group Poipet PP SEZ in northwestern Cambodia, bordering Thailand.