With this, the number of projects eligible under the special investment promotion programme soared to 110
Another 27 projects worth $306 million in investments received approval for incentives recently under the ‘Special Investment Promotion Programme for Preah Sihanouk Province’ initiated by Prime Minister Hun Manet in January this year.
The decision to provide the incentives was taken by the Investment Promotion Working Group for Preah Sihanouk led by Hean Sahib, Secretary of State of the Ministry of Economy and Finance at its 9th review meeting held at the ministry last week, said a statement.
The projects include an aluminium refinery, steel handicraft, steel tube factory, animal feed, furniture factory, multifunctional buildings, housing development, electric vehicle (EV) charging stations, hotels, and restaurants.
With this, the number of projects eligible for special incentives under the programme rose to 110. Hean Sahib stated that apart from the review of projects for incentives, the Working Group is also implementing measures to boost the investment climate in the province including a Safe City Campaign, organization of investment attraction forums, preparation of advanced model special economic zones and support to non-profit organizations.
This also includes the development of an agricultural-industrial park and the preparation of areas for development in the province.
Hean Sahib also appreciated the participation, support, and commitment of the Working Group and the ministries involved in improving the tourism environment in Preah Sihanouk Province and helping implement the incentives immediately and effectively with transparency.
Meanwhile, the Working Group also encouraged residents and investors to apply for special incentives on investments in Sihanouk province.
The Special Investment Promotion Programme was initiated by the Prime Minister mainly to solve the issue of unfinished and abandoned constructions in the coastal city since 2019.
The programme covers four types of projects: stranded building constructions, non-stranded buildings that can be operational in 2024, expansion projects, and other existing projects.
The move to solve the crisis created by the unfinished buildings, left mostly by Chinese investors, gathered momentum last year following criticism that they were an eyesore in the coastal city known for its tourism potential.
Since its inception, the Investment Promotion Working Group has been actively implementing measures to attract investment to the province. Its efforts include the creation of designated development zones, the drafting of a sub-decree for granting residence visas for long-term investments and the promotion of existing industrial and special economic zones.
Incentives under the programme include exemption from income tax and minimum tax for an additional three years, exemption from value-added tax till the completion and improvement of stalled building constructions, five-year withholding tax exemption on real estate lease, exemption of property tax and the exemption of various administrative sanctions.
The government had identified 362 stalled building constructions in Sihanoukville as of January 2024. It may be noted that since 2016, investment in Sihanoukville has grown rapidly, especially with the growth of a large number of hotels, restaurants, shops, and other facilities, mostly due to Chinese investments.
However, in the period from 2019 onwards, changes in the socio-economic situation combined with the spread of Covid-19 and other global challenges have caused the construction of many buildings to be suspended or stopped.
