The Royal Government of Cambodia is taking proactive steps to address the issue of stalled investment projects in Sihanoukville, as per Letter No. 356 of the Council of Ministers dated March 29, 2023, from the Office of the Council of Ministers. Sihanoukville, the coastal city in Cambodia, has been a major investment hub in recent years, with various construction projects such as hotels, commercial buildings, hospitals, schools, restaurants, and casinos.
However, some of these projects have experienced delays, suspensions, or lack of investment and business activities since 2016. To tackle this issue, the Cambodian Government has introduced a series of measures to build investor confidence and market demand in the short, medium, and long term.
The government's approach to resolving the stalled investment projects in Sihanoukville involves several steps, including the identification of the stagnant investment projects. This will be followed by a thorough study and analysis of the status of each project. Consultation and information sharing will also be provided to the relevant stakeholders.
Additionally, the government plans to develop programs to promote and raise awareness about the importance of completing these investment projects. Furthermore, the feasibility of budget allocation and evaluation of the quality of construction will also be assessed as part of the resolution process.
To streamline the resolution efforts, the government has categorized the investment into four groups based on their nature and potential
| Group 1 | School projects, hospital projects, duty-free shopping projects, housing projects for retirees, affordable housing projects, and other projects with high economic potential as determined by the Royal Government. |
| Group 2 | Investment activities that fall under the Investment Law of the Kingdom of Cambodia, and other relevant laws and regulations. |
| Group 3 | Business activities such as guesthouses and non-suburban housing construction under the Investment Law of the Kingdom of Cambodia. |
| Group 4 | Fundraising activities of joint ventures and/or governance in compliance with the law and provisions in force. |
Each group of projects must comply with specific conditions to be eligible for the government's incentives for settlement:
For projects in Groups 1 and 2:
- the investment capital must have been built between 2016 and 2020 and not yet completed, with a minimum investment capital of 1 million US dollars.
- sufficient resources in terms of construction completion and implementation of the investment project.
- a master plan and investment plan must be demonstrated.
For projects in Group 3:
- the minimum investment must be $500,000, and sufficient resources for conducting business.
- a business plan must be presented.
For projects in Group 4:
- joint venture and/or governance fundraising activities must be properly registered according to the law and provisions in force.
This initiative to resolve stalled investment projects in Sihanoukville is aimed at promoting economic growth, creating employment opportunities, and attracting further investment in the region.
By addressing the issues faced by these projects and providing tax and customs incentives for their completion, the government aims to boost investor confidence and create a favorable investment climate in Sihanoukville.
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