Cambodia has strategic location and is nestled between two of the world’s fastest-growing and large economies (China and India). Besides that, by being a part of China's Belt and Road initiative, Cambodia will become a major part of the Southeast Asia network, which would further facilitate its growth and provide ample opportunities for business. With the past few years of steady Gross Domestic Product’s growth of around 7 percent, Cambodia is on a steady path of economic improvement. The growth rate is the highest among ASEAN nations.
Cambodia has very open investment laws and offers a range of incentives to investors such as no visa restriction, no currency differentiation and tax exemption. The youthful population with an average age of 27 years old also plays a key role in economic development. Cambodia has the highest labor force rate in Southeast Asia with a relatively low labor cost and zero unemployment rates. This attracts a lot of foreign investors especially from mainland China, Hong Kong and Singapore to expand their businesses in Cambodia.
US dollars are commonly used in Cambodia on all the major day-to-day transactions such as business dealings, invest-ments and even when selling or buying properties in Cambodia. Cambodia is the third-largest country in the world and the only country in Southeast Asia to use US dollars, which account for more than 80 percent of the country’s currency. There is also no foreign exchange control, so capital is free to enter and exist at any time. There are no restrictions on the amount of investments and foreign citizens are allowed to exit at any point of time and sell them to anyone.
Sihanoukville was built around its port and is named after Cambodia's former monarch King Norodom Sihanouk.
90 percent of Cambodia's imports and exports transported by sea go through the Sihanoukville port. Because of the importance of exports to Cambodia's economy, Sihanoukville and its port are earmarked for further significant development by the local government and through international monetary support.
One major government objective is to make Sihanoukville a premier tourist destination as well as an International Offshore Financial Centre. Foreign and local investors are invited to participate in a range of joint businesses and financial ventures.
Commerce and investment have brought industrial parks, factories, commercial housing, hotels, and restaurants. The seaside tourist city is gradually changing into the engine of Cambodia's economy. Over the past five years the majority of people have begun referring to Sihanoukville as a next Shenzhen. The port city has abundant resources for tourism. It began attracting international tourists and was listed as one of the most beautiful beaches in the world.
With good harbors and foreign investment, Sihanoukville shares many similarities with modern and prosperous city of Shenzhen in South China's Guangdong Province. Sihanoukville hosts a number of new commercial and residential buildings. It's very hard to find vacant land in Sihanoukville.
Just like Shenzhen, Sihanoukville has developed from a quiet seaport town to a bustling city as more businesses have come with the development of companies and real estate. This trend is accompanied by the rise of the city's service industry with hotels and restaurants.
In the suburbs of Sihanoukville, especially near the port, there are several industrial parks. Prime Minister of Cambodia Hun Sen announced in November 2019 that four more Special Economic Zones will be built in Sihanoukville, bringing the total to nine. The Special Economic Zones have introduced nearly 200 enterprises from China, Southeast Asia, Europe, the US and other countries.
