Top Business Developments In Cambodia’s Sihanoukville Province 2024-25
During the first 11 months of 2024, Sihanoukville saw 213 investment projects move forward, including new infrastructure developments and a new Maldives-like private island resort set to open in Q1 of 2025. Global hotel brand, Novotel, also opened a branch in the coastal city in 2024, while the Cambodian government further reiterated its goal to transform Sihanoukville into a southwest metropolis.
Sihanoukville Special Investment Promotion Program Saw 213 Investment Projects Approved
The Cambodian government’s Investment Promotion Working Group in Preah Sihanouk province approved and facilitated 213 projects in Sihanoukville from January to November 2024, with a total investment capital of USD 6.026 billion. These projects are projected to create close to 40,000 jobs.
These investment project approvals follow the launch of the 'Special Investment Promotion Program in Sihanouk Province 2024' to resolve the issue of stalled constructions and unfinished buildings in the province, as well as to attract more investors and boost the economy in early 2024.
According to a report from the working group on the first 11 months of 2024, among the approved projects, 103 are related to unfinished buildings (valued at USD 2.51 billion, expected to create 4,558 jobs), while 86 are unrelated to stalled building projects (valued at USD 2.69 billion, expected to create 30,231 jobs).
Additionally, 17 are classified as expansion projects (valued at USD 768 million, expected to create 4,748 jobs), and 7 are existing investment/business projects (valued at USD 30 million, expected to create 41 jobs).
By sector, the 213 approved investment projects are categorised as follows:
- Real Estate: 86 projects valued at USD 2.15 billion, including multi-purpose buildings and residential development projects.
- Tourism: 60 projects worth USD 2.18 billion.
- Industrial: 35 projects valued at USD 1.19 billion.
- Other Sectors: 32 projects valued at USD 227 million.
The Governor of Sihanouk Province, Mang Sinet, has stated that 40 of the 101 stalled building projects are currently back to a stage of active construction, while seven have now been completed.
Other construction development work highlighted by the Cambodian government’s working group included new resorts, general education schools in both Sihanoukville city and Koh Rong, and new concrete roads connecting residential buildings.
Furthermore, the government helped facilitate seven out-of-court resolutions related to unfinished building projects in 2024, and also saw through the approval of various industrial projects, including for new solar panel factories, aluminum frame factories, agro-industrial parks, and special economic zones.
Novotel Opens Branch In Sihanoukville
Novotel Hotels, Suites & Resorts, a renowned hospitality brand from leading hotel operator Accor, launched the 215-key Novotel Sihanoukville Holiday Resort in February 2024, situated on Independence Beach.
This opening marked the first Novotel property in Cambodia, ahead of the debut of Novotel Phnom Penh BKK 1 in June 2024.
Cambodia’s Newest Private Island Resort Opens In Q1 2025 – JATI Koh Russey
In December 2024, HMD Asia announced the opening of its newest private island resort on Koh Russey – a Maldives-style private island experience with a uniquely Cambodian vibe. The resort is set to open in March 2025.
HMD Asia manages numerous properties in Southeast Asia, including the Shinta Mani Hotels in Cambodia, TRIBE Hotel in Phnom Penh, Park Hyatt Siem Reap, La Residence D’Angkor in Siem Reap, La Residence Phou Vao in Luang Prabang (Laos), and several destination restaurants in Phnom Penh and Siem Reap.
Other existing private island developments in Cambodia include Song Saa Island, Koh Russey resort by Alila Hotels & Resorts, and Six Senses Krabey Island.
Royal Group’s Ongoing Private Island Development In Sihanoukville
In 2008, Cambodian conglomerate, Royal Group, sought USD 2 billion in foreign investment to develop Koh Rong, a 78-square-kilometre island off the country’s south coast, following approval from the government. The company currently holds one-fifth, or 20 per cent, of the island’s land.
First reported by Bloomberg in 2008, Royal Group, in a joint venture with the Hong Kong-based Millennium Group, planned to build casinos, resorts, golf courses, and an airport on Koh Rong, the largest and least developed of the 22 islands that lie offshore from Sihanoukville. (However, the latest updates on the cooperation between the two companies have not been announced.)
Royal Group brought in new investment and infrastructure developments to the newly named “Koh Rong City,” a designation granted by government sub-decree in February 2019, which removed Koh Rong and Koh Rong Samloem from Sihanoukville’s administration.
In a joint investment with Asian Trails, Royal Group allocated USD 40 million to develop The Royal Sands Koh Rong, a high-end five-star hotel resort on the west side of the island, completed in 2018. A year later, in partnership with the Chinese company Royal Galaxy Group, they initiated another USD 285 million investment project.
In 2020, Royal Group contracted with Sinohydro Corporation Limited for a USD 35 million deal to build a 70 km road on Koh Rong Island. By early 2023, Neak Oknha Kith Meng, CEO of Royal Group, announced that 50 km of the project had been completed.
In early 2023, the construction of Koh Rong International Eco-Tourism Airport was announced, with an estimated cost of USD 300 million. The new airport is classified as 4C Level and is expected to accommodate up to 138,000 passengers annually. It is reported to be built by Lan Cang Jiang Engineering Co., Ltd., with five years to complete.
Sihanoukville’s Transformation Into A Global Trade & Logistics Centre
Inspired by China’s Shenzhen, which transformed from a sleepy fishing village to a global metropolis, Cambodia aims to develop Sihanoukville into an international gateway by establishing it as a major global trade and logistics centre, and an international multimodal transport hub and financial center.
Dubbed the ‘Rising Star of the Southwest,’ the province is set to become a national development pole with global tourism destinations, with a long-term vision to develop Sihanoukville into a pilot smart city in Southeast Asia.
One of the main development projects in Sihanoukville is the USD 16 billion real estate development by Canopy Sands’ ‘Bay of Light’ project, a 934-hectare beachfront initiative that includes financial services, tourism, education, entertainment & lifestyle, health & wellness, as well as arts & culture.
In 2021, the Cambodian Ministry of Economy and Finance entered into a contract with the Urban Planning and Design Institute of Shenzhen to lead Sihanoukville province’s transformation into a multi-purpose special economic zone. The institute was contracted to design a master plan for the city modeled after Shenzhen that aligned with the Cambodian context.
Speaking at the ASEAN-Cambodia Business Summit 2024, H.E. Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for Development of Cambodia (CDC), stated that after the three phases of Sihanoukville Port development are completed by 2029, large cargo ships from the United States and the European Union will be able to dock directly in Cambodia without transit elsewhere.
He added that the government plans to classify the entirety of Sihanoukville province as a special economic zone, along with other coastal provinces such as Kep, Kampot, and Koh Kong.
In November 2024, the Preah Sihanouk Province Investment Promotion Working Group organised an overseas investment promotion roadshow in China’s Fujian Province and the Hong Kong Special Administrative Region, to highlight the coastal city’s strategic advantages, robust infrastructure, and supportive government initiatives, which include allocating more funds for infrastructure, subsidising labour training, and providing one-stop services to assist companies in relocating to Preah Sihanouk.
Read More On Cambodia’s Investment Opportunities:
- Cambodia Business Climate 2024 And Future Of US-Cambodia Investment In Light Of Trump’s Presidency – Invest Cambodia 2025.
- Cambodia’s Investment Landscape Explored At ‘Invest Cambodia 2025: The Asian Tiger Of The 21st Century’.
- Cambodia’s Growing Trust Market – Interview With Hans Chen, CEO Of Stronghold Trustee.