Gov’t Unveils Non-Tax Incentives to Revitalise 364 Stagnant Buildings in Sihanoukville

• 23 November 2023
• Local News
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In response to the challenge posed by nearly 400 incomplete buildings in Sihanoukville, hindering the city’s progress, the Cambodian government has introduced groundbreaking initiatives aimed at revitalising these stagnant projects.

Out of a total of 965 construction projects in Sihanoukville, equivalent to 1,069 buildings with a substantial investment capital of US$4,056,152,112, the urgency for intervention is apparent. Governor Chamroeun’s strategic evaluation discerns the status of these projects—29 under construction, 161 completed but not operational, 341 suspended, 364 completed, and 434 completed and operational. This information was updated by Governor Kouch Chamroeun during a recent dissemination workshop on “Measures to Resolve Stagnant Investment Projects in Preah Sihanouk Province” on 31 October 2023.

As a proactive approach to systematically tackle this issue, the government is evaluating each case, offering targeted support, and ensuring a comprehensive solution. Deputy Governor Long Dimanche provided insights during a visit with the AmCham Cambodia Business Delegation to the Sihanoukville Special Economic Zone on 17 November 2023. He explained, “The package of incentives for unfinished buildings, introduced in March, includes both tax and non-tax benefits. Tax incentives span exemptions from registration tax for real estate ownership transfer between 2023 and 2025, withholding tax exemptions for property rental for three to five years, income tax exemptions for nine years, and minimum tax exemptions for nine years. Non-tax issues, such as lacking permits, significant structural problems, and market demand challenges, are also addressed.”

“The aim of these incentive measures is to attract new investments, avoiding demolitions or abandonments of these unfinished projects,” added the deputy governor.

Deputy Governor Dimanche outlined the steps taken, revealing that approximately 400 unfinished buildings have been identified as potential investment targets, each accompanied by a host of incentives to encourage completion.

“This visionary approach seeks to leverage Sihanoukville’s youthful workforce, modern infrastructure, and strategic location, positioning it as a pivotal gateway to Cambodia and a significant industrial and logistics centre within ASEAN,” added the deputy governor.

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