Why Preah Sihanouk is the Key Engine for Cambodia’s Economic Growth?
Preah Sihanouk province, often referred to as the “Rising Star of the Southwest,” is emerging as a key driver of Cambodia’s economic growth. The Royal Government of Cambodia is actively transforming this coastal province into a vibrant hub for investment, development, and innovation. With its strategic location, advanced infrastructure, and growing industrialization, Preah Sihanouk is poised to become a leading economic engine within Cambodia and the broader ASEAN region. Let’s explore the reasons why this province holds the key to Cambodia’s economic future.
1. Strategic Location and Infrastructure Development
Preah Sihanouk’s geographical advantage plays a pivotal role in its transformation. Situated along Cambodia’s southwestern coast, the province is connected to Phnom Penh via the modern Phnom Penh-Sihanoukville Expressway – a 187-km high-speed route that reduces travel time between the two cities to just two hours.
The province is also home to the Sihanoukville Autonomous Port, Cambodia’s only deep-water port, which serves as a crucial gateway for international trade. This port is a cornerstone for maritime trade and logistics, providing opportunities for businesses to import and export goods efficiently.
Adding to its strategic importance is the Sihanoukville Special Economic Zone (SSEZ), a flagship project under China’s Belt and Road Initiative (BRI). The SSEZ hosts over 170 enterprises from various countries, contributing significantly to Cambodia’s industrial growth and creating thousands of jobs.
2. A Beacon for Foreign Investment
Preah Sihanouk has become a magnet for foreign investors, thanks to the government’s efforts to attract high-value investments. The recent Special Program to Promote Investment in Preah Sihanouk Province 2024, spearheaded by Prime Minister Hun Manet, has set ambitious targets to accelerate the province’s development.
During the recent investment summit titled “Preah Sihanouk Province: Cambodia’s Rising Star,” Hean Sahib, Secretary of State at the Ministry of Economy and Finance, highlighted the province’s remarkable achievements. Over $6.03 billion in investment capital was approved, far surpassing the initial target of $1 billion. This massive influx of investment has led to the approval of 213 projects, creating nearly 40,000 jobs in diverse sectors, including real estate, tourism, and industrial development.
This impressive growth reflects the province’s evolving role as an attractive destination for both local and international investors from countries such as China, South Korea, the United States, and the European Union.
3. Robust Industrialization and Job Creation
Preah Sihanouk’s industrial sector is a major contributor to Cambodia’s economic growth. With projects spanning manufacturing, logistics, and technology, the province is becoming a hub for industrial activity. Key highlights include:
- Real Estate Development: 86 projects (40% of total) have been approved, with investments totaling $215 million.
- Tourism Sector: 60 tourism-focused projects worth $218 million aim to boost the province’s hospitality and travel infrastructure.
- Industrial Sector: 35 projects, representing $1.19 billion, have established manufacturing and production facilities, further driving industrialization.
These initiatives are not only creating jobs but also promoting sustainable economic growth. For instance, aluminum production plants and facilities for manufacturing household appliances for export to Europe and the Americas demonstrate the province’s potential to become a global manufacturing hub.
4. Tourism: A Pillar of Economic Development
Preah Sihanouk’s pristine coastline, beautiful beaches, and vibrant cultural scene make it a key destination for tourism. The province attracts both domestic and international travelers, with projections indicating it will welcome 5.4 million tourists annually by 2038. This influx of visitors is expected to significantly boost the local economy and create thousands of jobs in hospitality, entertainment, and related industries.
The government’s investment in modern infrastructure, including upgraded airports, luxury hotels, and eco-friendly resorts, is setting the stage for sustainable tourism development.
5. Vision for a Smart, Sustainable Future
One of the most exciting aspects of Preah Sihanouk’s transformation is its commitment to becoming a model green, sustainable city. Under current development plans, the province is rebranding itself as a smart city with modern infrastructure, renewable energy initiatives, and technological innovations.
Projections suggest that by 2038, Preah Sihanouk will become a high-income region 12 years ahead of the rest of Cambodia. The province’s gross domestic product (GDP) is expected to contribute 10% of Cambodia’s national economy.
This vision is supported by projects like the Smart City initiative, which focuses on environmental sustainability, cultural preservation, and technological innovation to improve residents’ quality of life and attract global investors.
6. ASEAN Integration and Regional Connectivity
Preah Sihanouk’s strategic role within the ASEAN framework further enhances its economic potential. As a key player in regional trade and investment, the province facilitates seamless connectivity between Cambodia and its ASEAN neighbors.
High-level international summits, such as the recent Preah Sihanouk Investment Summit, showcase the province’s commitment to fostering collaboration and partnerships. Government officials and business leaders from China, South Korea, the US, and Europe actively engage in discussions to unlock the province’s economic opportunities.
7. Government Commitment and Policy Support
The Royal Government’s unwavering commitment to transforming Preah Sihanouk into an economic powerhouse is evident through its proactive policies and initiatives. Programs like the Special Investment Incentives and Procedural Simplification have created a favorable business climate for investors.
Key achievements over the past 11 months include:
- 213% increase in approved projects, exceeding the target by 113 projects.
- Creation of nearly 40,000 jobs, surpassing initial projections of 5,000 jobs.
- Development of multi-purpose buildings, tourism projects, and industrial zones that support economic diversification.
8. A Diverse, Growing Population
Preah Sihanouk’s growing population and cultural diversity further contribute to its economic transformation. By 2038, the province is projected to house nearly 1 million residents, accounting for 5% of Cambodia’s total population. This demographic growth supports increased consumer demand, business expansion, and workforce availability, making the province an ideal location for investment.
Preah Sihanouk’s Bright Future
Preah Sihanouk province is undeniably the key engine for Cambodia’s economic growth. Its strategic location, advanced infrastructure, robust industrialization, and booming tourism sector are driving its transformation into a dynamic economic hub. With the government’s strong commitment to sustainable development and investment promotion, Preah Sihanouk is well on its way to becoming a high-income, smart ASEAN metropolis.
The impressive achievements, such as attracting $6 billion in investments and creating 40,000 jobs, demonstrate the province’s economic potential. As Preah Sihanouk continues to evolve, it will play a central role in shaping Cambodia’s future economic success and regional prominence.
What do you think about Preah Sihanouk’s transformation into Cambodia’s economic powerhouse? Share your thoughts and let us know how this development can benefit Cambodia’s economy and its people!
