Gov’t Unveils Special Program to Revitalise Stalled Real Estate Projects in Sihanoukville

• 2 February 2024
• Local News
• 1857 Views

In a bid to invigorate economic growth and industrial development, the Cambodian government, led by Prime Minister Samdech Hun Manet, officially inaugurated an ambitious special program to promote investment in Sihanoukville on 31 January 2024. The initiative introduces a comprehensive set of measures designed to facilitate and incentivize three distinct categories of investment in the province.

Tailored to address the unique challenges and requirements of Sihanoukville, the program aligns with the broader strategies and policies of the government, particularly the execution of a master plan to transform Sihanoukville into a versatile special economic zone. This strategic move comes as part of ongoing efforts to bolster investment, spur industrial development, and catalyze economic expansion in the province. The special program for 2024 focuses on promoting three types of investment and business activities in Sihanoukville:

1. Investment projects or business activities linked to stalled construction projects set to commence in 2024.
2. Investment projects or business activities unrelated to frozen constructions but slated for an immediate start in 2024.
3. Expansion of existing investment projects or business activities, subject to specific criteria to be unveiled in 2024.

For investment projects related to stagnant buildings, the program introduces a comprehensive package of measures, including:

1. Income tax exemption and minimum tax relief for an additional three years.
2. 0% VAT exemption for the completion of construction and renovation of stalled buildings.
3. Five-year withholding tax exemption on real estate leases.
4. Waiver of property tax and administrative sanction exemptions.
5. Exemption from public service fees and fees related to land use permits for construction.
6. Streamlined procedures for permit applications related to construction work.
7. Concessions on inspection fees and certifications linked to construction.
8. Simplified investment and business procedures, encompassing license, certificate, and permit applications.
9. Policies and facilitation for the development of the Lai Long real estate market, along with investor matching services and reference prices for real estate in Sihanoukville.
10. Encouragement of out-of-court dispute resolution mechanisms for investment-related disputes.

To oversee the effective implementation of this strategic initiative, “Special Program to Promote Investment in Sihanoukville 2024”, a special working group has been established, chaired by HE Dr Hean Sahip, Secretary of State of the Ministry of Economy and Finance, comprising 29 vice-chairpersons and members. This group will serve as a one-stop shop, streamlining the permit and license approval process for investment projects and business activities in Sihanoukville.

• Laws and Regulation