Massive Industrial Expansion Set for Kampong Speu as Chinese Firm Proposes New Special Economic Zone

• 12 January 2026
• Local News
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Strategic development project spanning over four hundred hectares aims to bolster Cambodia’s manufacturing capacity and create thousands of local employment opportunities

The industrial landscape of Kampong Speu province is poised for a significant transformation following a formal proposal by a Chinese firm to establish a sprawling special economic zone. On January 6, 2026, the Council for the Development of Cambodia held a high level meeting to deliberate on the application submitted by Cambodia Shanghai Special Economic Zone Co., Ltd.. This ambitious project is slated for development in the Phnom Sruoch district, covering a vast area of approximately 455 hectares.

His Excellency Chea Vuthy, Secretary General of the Cambodian Investment Board, emphasized that the proposal aligns with the government’s broader strategy to decentralize industrial growth and attract high value investments to various provinces. The establishment of this new zone is expected to serve as a catalyst for economic activity in the region, providing the necessary infrastructure for diverse manufacturing sectors to flourish. By concentrating resources and logistics within a specialized area, the project aims to enhance efficiency for international businesses looking to tap into Cambodia’s competitive labor market and favorable trade agreements.

This latest development follows a record breaking year for the Kingdom’s investment climate. Recent data from the Council for the Development of Cambodia indicates that in 2025 alone, the nation approved 630 new investment projects with a combined value of roughly 10 billion dollars. These ventures are projected to generate approximately 438,000 jobs, underscoring the vital role of industrial zones in driving national employment and poverty reduction. The proposed 455 hectare zone in Kampong Speu is viewed as a continuation of this momentum, offering a strategic location that bridges the capital and the coastal deep water ports.

As the review process continues, provincial authorities have expressed optimism regarding the socio economic benefits the zone will bring to local communities. Beyond direct job creation, the project is expected to stimulate the growth of supporting businesses, from logistics and construction to hospitality and services. The integration of advanced Chinese investment into Kampong Speu’s industrial fabric marks another step forward in Cambodia’s journey toward becoming a regional manufacturing hub, ensuring sustainable development and long term economic resilience for the province and the nation at large.

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