PHNOM PENH: Pursat has become an unexpected investment hotspot. Pursat province, once considered an unlikely candidate for large-scale investment, is rapidly transforming into a key economic hub for Cambodia.
The province has recently attracted significant attention from both domestic and international investors. On July 8th, 2024, a high-level government delegation inspected a proposed 140-hectare special economic zone in Krakor district. This development follows the groundbreaking of Ford’s first assembly plant in the province on June 16th,2022.
The Ford plant, a $21 million investment, is expected to create over 500 jobs and produce approximately 9,000 vehicles annually. This project, combined with the planned special economic zone and another upcoming factory by Minebea Electronics, has raised eyebrows about the province’s sudden appeal.
To understand the factors driving this rapid growth, Minister of Mines and Energy Keo Rattanak explained, Pursat’s appeal lies in a combination of strategic planning, government support, and a conducive business environment.
Minister added that, while not bordering the sea or neighboring countries, its proximity to key transportation routes and infrastructure projects makes it an attractive hub for logistics and manufacturing. Additionally, the government’s focus on developing special economic zones, such as the Ford plant, has further enhanced Pursat’s investment potential.
Minister Rattanak emphasizes the importance of collaboration between government, businesses, and the local community. By fostering a supportive ecosystem, Pursat has been able to attract major investments like the Ford assembly plant and the upcoming Minebea Electronics factory in September this year. These projects not only generate employment opportunities but also contribute to the province’s overall economic development.
The minister also highlights the role of government incentives in attracting investors. Cambodia’s competitive tax regime, coupled with streamlined investment procedures, has created a favorable business climate. Pursat, in particular, has benefited from targeted incentives designed to stimulate economic activity in the region.
These developments in Pursat are part of a broader trend of rapid economic growth in Cambodia. The country recorded a staggering $3.25 billion in fixed-asset investment during the first half of 2024, a 195% increase compared to the same period in 2023. In July alone, the government approved 44 new investment projects worth $396 million, with the potential to create 25,000 jobs.
As Cambodia continues to position itself as an attractive investment destination, the transformation of Pursat into a thriving industrial center highlights the government’s strategy of developing the entire country, rather than solely relying on traditional economic hubs.