Cambodia Investment Review
Sihanoukville, Cambodia’s coastal jewel, is set for a major transformation as the government rolls out an extensive investment incentive program aimed at revitalizing the city’s infrastructure, real estate, tourism, and trade sectors. The initiative, announced by Prime Minister Hun Manet and detailed further by Deputy Prime Minister Dr. Aun Porn Moniroth, Minister of Economy and Finance, promises to inject a new lease of life into the city’s economy.
During the “Special Program to Promote Investment in Sihanoukville 2024” launch ceremony, Prime Minister Hun Manet unveiled a comprehensive package of measures designed to encourage investment and facilitate the completion of stagnant projects. These measures target a wide array of sectors and offer significant incentives to both existing and prospective investors.
Royal Government has introduced a series of support measures
Dr. Aun Porn Moniroth provided a stark overview of the challenges facing Sihanoukville, noting the presence of 362 unfinished buildings requiring an estimated $1.161 billion to complete. “Since 2016, investment in Sihanoukville has grown rapidly, especially with the rapid growth of a large number of hotels, restaurants, shops, and other facilities,” Dr. Moniroth remarked. However, he also acknowledged the impact of recent socio-economic changes and global challenges, which have led to the suspension or halting of numerous construction projects.
In response to these challenges, the Royal Government has introduced a series of support measures, including the construction of the Phnom Penh-Sihanoukville Expressway and the development of key infrastructure throughout the province. A targeted package of initiatives, introduced in March 2023, aims to address stagnant investment projects with a comprehensive set of general measures and incentives to be implemented until 2026.
The investment incentive program has received widespread acclaim from key figures in the real estate industry. Lawerence Lennon, Country Director of CBRE, lauded the initiative, stating, “We see this action as a positive step to revitalizing the built environment of Cambodia’s largest coastal city and look forward to the coming updates around Sihanoukville’s updated master plan. The city is certainly a diamond in the rough, with huge potential for being a future hub of tourism, gaming, and manufacturing activity. We will watch closely and continue to support wherever possible.”
Realestate.com.kh records a 300% increase in leads off their platform
Tom O’Sullivan, CEO of Realestate.com.kh, who also recently opened a Sihanoukville branch, expressed his enthusiasm for the initiative, emphasizing its potential to attract investors and its significance for the coastal region’s development. “I’m delighted to see this initiative; I know it’s been in the pipeline for a while and it’s great to have the policy finalized so the industry can present it to investors. There was never any doubt on how important the coastal region is for Cambodia, both in terms of tourism and trade. This is the latest of many positives for the region since COVID,” said O’Sullivan.
O’Sullivan also highlighted the positive trends observed in the local real estate market, noting a 300% increase in leads off their platform since opening an office in Sihanoukville 12 months ago. He pointed out the high occupancy rates in completed apartment buildings and the anticipated demand for apartments and offices as more buildings are completed. The Sihanoukville Special Economic Zone’s high occupancy rates and the expected influx of international companies further underscore the increasing demand for residential real estate in the area.
The collective optimism and support from industry leaders, coupled with the government’s proactive measures, paint a promising picture for Sihanoukville’s future. As the city gears up for a period of significant growth and development, the combined efforts of government policies and industry investment are poised to unlock its full potential, establishing Sihanoukville as a vibrant economic hub in the region.
