Cambodia’s Industrial & Logistics Sector to Shift Toward Specialisation & Greener Production

• 24 January 2022
• Local News
• 1950 Views

The industrial and logistic sector is expected to grow significantly in 2022 thanks to competitive operating costs and extensive and continuous government infrastructure development projects nationwide despite the pandemic, according to CBRE yearly report issued recently.

The report added given the high growth potential, the sector will shift toward specialisation. Industries including agroindustry/processing, organic products, cold storage and automobile assembly are expected to grow.

The production line is also expected to go greener as more and more buyers are demanding the adoption of Environmental, Social, and Governance (ESG) in the manufacturing sector.

As of 2021, Cambodia is home to 39 special economic zone projects (SEZ) covering over 13,000 hectares of land nationwide with a total investment of US$2.7 billion.

Sihanoukville province registered more than US$700 million in SEZ investment, followed by Svay Rieng province with more than US$400 million, while Koh Kong and Kampong Chhnang provinces have more than US$300 million and almost US$300, respectively.

Land lease rates in SEZ were recorded at US$63.3 per sqm on average, and ready-built factory monthly rental rates cost US$3 per sqm, according to the report.

• Analysis