Cambodia Unveils New Draft Law on Special Economic Zones to Boost Diversification and Industrial Connectivity

• 24 May 2023
• Local News
• 1235 Views

In an exciting development, the Council for the Development of Cambodia (CDC) has recently completed the drafting of a comprehensive law on special economic zones (SEZs), poised to be launched in the near future.

This momentous step towards economic diversification and enhanced industrial connectivity was announced by HE Chea Vuthy, Deputy Secretary-General of the CDC’s Cambodian Investment Committee, during the “Cambodia-China Business Leaders Summit” on 19th May.

Investments in SEZs have begun to encompass a broad spectrum of industries, including electronics, components, vehicle assembly, solar power, and bicycles. This strategic move marks a significant departure from Cambodia’s historical reliance solely on the footwear and clothing sectors. By expanding into these new domains, Cambodia aims to fortify its economy and ensure greater resilience in the face of global challenges.

The forthcoming draft law on SEZs is expected to accelerate the diversification of Cambodia’s economy while promoting seamless connectivity and the establishment of robust industrial clusters.

It comes at a time when investment projects, particularly those located within special economic zones, are diversifying across a multitude of sectors, such as electronics, automotive components, tire production, furniture manufacturing, solar technology, Christmas decorations, and various other export-oriented products.

HE Chea Vuthy highlights that “the significance of these evolving sectors, stressing their pivotal role in bolstering Cambodia’s economic sustainability and resilience, effectively reducing the nation’s dependence on the garment, footwear, and travel goods sectors.”

Special economic zones have proven to be instrumental in attracting investments outside the traditional realms of garments and footwear. By providing essential infrastructure, streamlined operations, and comprehensive support services within the zones, such as worker-centric management and safety measures, SEZs serve as an efficient mechanism to facilitate investment in diverse industries.

• Laws and Regulation
• Economy and Finance