Cambodia’s Preah Sihanouk province, which once developed rapidly amid a large influx of foreign capital, is now accelerating its economic transformation. Through special investment incentives, the Cambodian government hopes to attract more international capital into manufacturing, logistics, tourism and international trade, gradually reducing reliance on casinos and property investment.
Around 2016, substantial Chinese capital flowed into Preah Sihanouk, with investments in property, hotels, restaurants and casinos. According to a World Bank report, the number of local casinos exceeded 150 by 2019, while investment in manufacturing, logistics and tourism remained relatively limited.
After the Cambodian government banned online gambling in 2020, many investors in related businesses withdrew. Nearly 400 construction projects were forced to halt, dealing a blow to the local economy.
To change this situation, the Cambodian government introduced the “Special Program to Promote Investment in Preah Sihanouk Province”, offering tax, customs and administrative support to attract investors from countries and regions including Europe, Japan, South Korea and China.
Hean Sahib, an adviser to the Cambodian prime minister and a secretary of state at the Ministry of Economy and Finance, said the programme was not intended to revive casinos. Instead, it aims to convert unfinished buildings into hotels, restaurants and commercial facilities, while directing capital into industry, agriculture and international trade.
The government will also help investors handle tax matters, business registration and administrative procedures free of charge, while requiring projects to meet environmental standards, create jobs and promote skills transfer.
Analysts say that, beyond incentives, Sihanoukville must improve public security and combat online scams to restore international investor confidence. With its deepwater port, special economic zones and coastal tourism resources, Preah Sihanouk could gradually diversify its economy over the next five to ten years.
