Special economic zones (SEZs), billed as a one-stop shop for potential investors, have had a slow start in the Kingdom – only 13 out of 30 registered zones are operational – with many failing to get off the ground given the difficulty in providing the requisite infrastructure and facilities investors expect.

However, despite the limited number of SEZs in play, exports from these zones are expected to reach $1.2 billion by the end of the year, with Commerce Ministry records released this month showing that $964 million worth of shipments were achieved as of November.

This would represent a 45 per cent increase over the $672 million exported last year, with ministry officials banking on the opening and expansion of new SEZs this year to lift exports to the $1.2 billion mark.

Sam Serei Rath, undersecretary of state at the Commerce Ministry, said he was optimistic about reaching the expected export target, adding that the significant increase could be attributed to investors’ better understanding of Cambodia’s incentive and investment policies.

According to Rath, there are a number of factors that are causing a boost in exports, including factories moving towards value-added products, improving skill levels, and a number of big brands entering these zones.

“Some factories are starting to produce high-skill products,” he said. “When the factory owners train their workers for years, they become skillful and [owners] can update their products.”

The Cambodian government is in the process of tweaking its investment law, to compete with Thailand, Vietnam and Myanmar, as well as drafting an SEZ law, both of which were expected this year but have been delayed.

“Another thing is that foreign investors are getting a better understanding of the incentives we provide, and amendments to the investment laws will see more favourable conditions [for investors], ” Rath said.

Cited From : The Phonm Penh Post