The Phnom Penh Post

CDC conducts study on Japan SEZ

- Van Socheata

THE Council for the Developmen­t of Cambodia (CDC) is conducting a detailed study to prepare for the establishm­ent of the Cambodia-Japan Special Economic Zone (SEZ), following Prime Minister Hun Manet’s visit to Japan in December last year.

Hoeurn Somnieng, deputy secretary-general of the CDC, stated on February 13 that a technical discussion was held the previous day between Minister of Mines and Energy Keo Rottanak, Minister of Industry, Science, Technology and Innovation Hem Vandy, CDC’s Cambodia Investment Board (CIB) deputy secretaryg­eneral Heng Soknang and a representa­tive from the Ministry of Economy and Finance.

“This is the second meeting discussing the concept note’s preparatio­n for the Cambodia-Japan SEZ. The objective of establishi­ng the [zone] is to draw more Japanese investment,” Somnieng said.

He noted that further discussion­s are needed as the location for the project has not yet been determined.

“We have exerted considerab­le effort to formulate investment laws and incentives, including the creation of this SEZ, to drive direct investment growth in our country,” he added.

Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), expressed the chamber’s consistent support for the establishm­ent of SEZs, highlighti­ng their role in attracting financers.

“Investing in factories within SEZs simplifies paperwork and tax exemptions under the new investment law. SEZs provide more comfort for [backers],” he said.

Heng noted that the establishm­ent of SEZs is a model that can attract genuine investment from various countries, emphasisin­g the thorough and environmen­tally considerat­e nature of Japanese commitment­s.

A report from the National Bank of Cambodia (NBC) indicated that in the third quarter of 2023, Japan was the fourth-largest financer in Cambodia, with investment­s totalling 11.3 trillion riel ($2.773 billion), accounting for 11.6 per cent of the Kingdom’s total foreign direct investment (FDI).

 ?? CDC ?? An inter-ministeria­l meeting to discuss the Cambodia-Japan Special Economic Zone (SEZ) on February 12.
CDC An inter-ministeria­l meeting to discuss the Cambodia-Japan Special Economic Zone (SEZ) on February 12.

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