Cambodia’s plans to turn coastal areas into economic poles

The local news from Cambodia in December 2024 reports on a groundbreaking drive. The Public Board for Beach Front Administration and Improvement (NCCDC) is leading this initiative. This drive aims to foster Cambodia’s four seaside zones into flourishing economic zones. This was stated by a senior authority of the Service of Land, the executives, Metropolitan Preparation, and Construction. Cambodia’s plans to turn coastal areas into economic poles were highlighted in this initiative.

This aggressive undertaking plans to adjust feasible turn of events and prosperity of beachfront networks. It focuses on livelihoods, wellbeing, and joy, according to Pen Sophal, the service’s Secretary of State. He mentioned this at its yearly gathering to survey works in 2024 and set targets for 2025, on Tuesday. Cambodia’s plans to turn coastal areas into economic poles emphasize these aspects as key priorities.

Presently, different action plans are being carried out to change these beachfront regions into current public monetary posts. These include fostering reasonable vocations, enhancing health, and increasing joy. Moreover, they aim at converting them into top-notch travel industry objections, he said. Cambodia’s plans to turn coastal areas into economic poles are progressing with these initiatives.

“The improvement of the beachfront regions will contribute to changing Cambodia into an upper-middle-income country by 2030,” Sophal said. “It will also help transform it into a high-income country by 2050,” he added. Additionally, the Public Board of Trustees has advanced the administration and organization of significant Cambodian beachfront zones.

They have also focused on their improvement and advancement, he stated. He added that the panel also pre-arranged strategies. They formulated regulations and authoritative reports regarding the administration and advancement of Cambodia’s waterfront regions. These developments are aligned with Cambodia’s plans to turn coastal areas into economic poles.

Under the draft plan, NCCDC will foster a public ocean-side retreat, ‘Techo Santephap Kep Ocean side’. It will also develop the travel industry, and cycling ways will extend in the Cambodian beachfront areas. These areas include Kampot, Kep, Preah Sihanouk, and Koh Kong territories. Furthermore, NCCDC will lay out vacationer ports and framework improvement and advancement projects within the four territories.

A draft regulation has finished broad conferences and proceeded with surveys as per strategies, he said. Cambodia has four waterfront areas – Preah Sihanouk, Koh Kong, Kampot, and Kep.

Sihanoukville, a coastal province in southwestern Cambodia, has undergone a dramatic transformation over the past decade. It was once a quiet fishing hub and backpacker destination. Now, it is the epicenter of Cambodia’s most significant economic boom. This boom is driven largely by foreign direct investment (FDI).

This transformation is intrinsically linked to its status as the home of the Sihanoukville Special Economic Zone (SSEZ). The SSEZ is a flagship project of China’s Belt and Road Initiative (BRI). Investment flows are diversifying. However, the landscape is overwhelmingly dominated by one key player. This key player shapes the city’s economy, infrastructure, and very identity.

Which Countries and Nationalities Invest the Most?

The dominant source of investment in Sihanoukville, by an overwhelming margin, is the People’s Republic of China. Chinese investment is so pervasive that it defines the modern character of the city. However, other countries are also present, particularly within the SSEZ.

1. China: The Undisputed Leader

• Scale of Investment: Chinese investment accounts for a vast majority of all foreign capital in Sihanoukville. This has funded massive projects in:
  • Real Estate and Construction: There is a high-rise boom of casinos, hotels, condominiums, and commercial buildings. These primarily cater to Chinese businesses and tourists.
  • Gaming and Entertainment: Dozens of casinos were established to serve the Chinese market. However, a Cambodian government crackdown on online gambling in 2019 altered this dynamic.
  • The Sihanoukville Special Economic Zone (SSEZ): This is the cornerstone of Chinese investment. As Cambodia’s largest industrial zone, it hosts hundreds of factories. Most of these are Chinese-owned. They manufacture goods like textiles, luggage, tires, and electronics for export.
• Reasons for Dominance:
  • Belt and Road Initiative (BRI): The SSEZ is a highlighted “model” cooperation project within China’s global BRI strategy. This status ensures it receives massive financial backing. Additionally, it gets political support.
  • Strategic Location: Sihanoukville’s deep-sea port offers direct access to maritime trade routes. It provides Chinese manufacturers with a crucial alternative to avoid the Malacca Strait. This location also facilitates access to ASEAN markets.
  • Favorable Cambodian Policy: The Cambodian government offers strong incentives for foreign investors. These incentives include tax holidays and simplified regulations. They are particularly beneficial within Special Economic Zones.

2. Other Notable Investing Countries and Nationalities:
While China dominates, other nations hold a significant presence. Their presence is smaller but is almost exclusively within the industrial sector of the SSEZ.

• Other ASEAN Nations: Companies from Thailand, Vietnam, and Malaysia have invested in factories within the SSEZ. They leverage the same trade benefits. They also take advantage of low-cost labor.
• Japan: Japan is a notable investor and development partner for Cambodia as a whole. Its presence in Sihanoukville’s real estate boom is minimal. However, Japanese companies have invested in manufacturing facilities within the SSEZ. The Japanese government has provided development aid for infrastructure improvements to the Sihanoukville port.
• Europe and the United States: Investment from Western nations is relatively limited in Sihanoukville compared to Phnom Penh. It primarily targets a smaller number of niche manufacturing ventures. These include hospitality businesses catering to Western tourists. It focuses on service sectors rather than the large-scale real estate and industrial projects driving the growth.
• South Korea: Historically a major investor in Cambodia, South Korean investment in Sihanoukville is present but overshadowed by China. It is primarily seen in some construction projects, hospitality, and a number of factories within the SSEZ.

Summary

In summary, the investment landscape of Sihanoukville is a tale of two realities. China is the predominant force. Its capital is fueling the city’s rapid metamorphosis. This is achieved through massive real estate development, casino projects, and, most importantly, the colossal Sihanoukville Special Economic Zone. This has positioned Sihanoukville as a vital strategic node in China’s Belt and Road Initiative.

Other nationalities—including investors from ASEAN countries, Japan, and South Korea—participate actively. However, their scale of investment is dwarfed by that of China. They engage particularly within the industrial manufacturing sector of the SSEZ. Consequently, the face of investment in Sihanoukville is overwhelmingly Chinese. This makes it one of the most striking examples of China’s economic influence in Southeast Asia.