Special Economic Zones in Cambodia

An Investor’s Map to Cambodia’s Special Economic Zones

Cambodia’s Special Economic Zones (SEZs) offer a range of incentives and benefits to foreign investors operating within them, including:

Tax breaks

• A 0% corporate income tax rate is applied for the first eight years of operation, followed by a 5% tax rate for the next five years.
• A 10-year exemption from import duties on equipment and materials imported for use in the SEZs.
• Value-added tax (VAT) exemption on the import of raw materials, machinery and other inputs used to produce goods for export for businesses operating within SEZs.

Customs duty exemptions

SEZs in Cambodia provide customs duty exemptions on imported goods, thus allowing foreign investors to import materials and equipment without paying import duties.

Simplified customs procedures

SEZ investors enjoy simplified customs procedures, which help to reduce the time and cost of importing and exporting goods.

Access to a skilled workforce

Cambodia boasts a young and growing workforce that is relatively low cost, making it an attractive SEZ destination for labour-intensive investors.

Labour regulations

SEZs in Cambodia have more relaxed labour regulations compared with the rest of the country, which provides foreign investors with more flexibility in employing workers.

Infrastructure

Cambodia’s SEZs have well-developed infrastructure, including well-maintained roads, ports and airports, making it easy for businesses to import and export goods and to travel around the country.

Access to markets

Cambodia has a number of free trade agreements with other countries, providing SEZ businesses with access to a large export market.

Government support

The Cambodian Government provides strong support for SEZs, offering financial assistance, land and other resources. 

There are companies from 14 countries currently operating in the Phnom Penh SEZ, including Australia, China, Japan, Malaysia, Singapore, Thailand and the USA.

★ Special Economic Zone in Cambodia (2006-2023)

Four new SEZs are under development as of June 2023

1. Kampong Cham SEZ – Expected to attract investment in the garment, food processing and agricultural sectors.
2. Pochentong SEZ – Expected to attract investment in the logistics, manufacturing and tourism sectors.
3. Sihanoukville Multi-Purpose SEZ – Expected to attract investment in the tourism, manufacturing and logistics sectors.
4. Bavet SEZ 2 – Expected to attract investment in the manufacturing, logistics and agricultural sectors.

These new SEZs are part of the Cambodian Government’s efforts to encourage foreign investment and promote economic growth.

More than 450 companies operate in the kingdom’s 54 SEZs, generating more than 100,000 jobs.