Special Economic Zone
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Data Collection Survey on the Trunk Road Network Planning for Strengthening of Connectivity through the Southern Economic Corridor 2.6 Industrial Development Condition and Perspectives 2.6.1 Industrial Development in Cambodia (1) Special Economic Zone (SEZ) in Cambodia The development of Special Economic Zone (SEZ) in Cambodia encourages private sector investment and ensures the provision of world class infrastructure and services. The Council for the Development of Cambodia (CDC) has approved 22 SEZs across the country with total investment capital in excess of USD740 million. Table 2.6-1 and Figure 2.6-1 show list and location of SEZ in Cambodia, respectively. Among these SEZs, 10 of them are operational and others are at various stages of development. Characteristics of major SEZs are described in Table 2.6-2. The SEZs are designed to ease challenges to setting up business with government officials stationed on site to provide administration services, such as clearances and permits. The main law covering the definition, procedures and administration for SEZs in Cambodia is the 2005 Sub-decree on the Establishment and Management of the Special Economic Zone. The stated aim of this sub-decree is “to establish and manage the Special Economic Zones and improve the investment climate conducive to the enhancement of productivity, competitiveness, national economic growth, export promotion, employment generation in order to reduce poverty.” Under this law, SEZs are defined as: “the special area for the development of the economic sectors which brings together all industrial and other related activities and may include General Industrial Zones and/or Export Processing Zones. Each Special Economic Zone shall have a Production Area which may have a Free Trade Area, Service Area, Residential Area and Tourist Area.” Under the sub-decree, an SEZ must meet a number of basic requirements: It must cover an area of more than 50 hectares, with precise location and geographic boundaries; It must have a surrounding fence; It must have management office buildings, zone administration offices, road networks, clean water, electricity, telecommunications networks, fire protection and security system; It must have a water sewage network, waste water treatment system, location for storage and management of solid wastes, environmental protection measures and other related infrastructures as deemed necessary; and It must comply with technical requirements, regulations and basic rules on construction, environment and other obligations defined in instructions issued by relevant ministries pursuant to the existing laws, national and international standards. According to the Cambodian Government’s SEZ website, businesses within SEZs “benefit from a number of fiscal incentives, including income tax, customs, and VAT benefits.” Cambodian SEZs are designed to offer a ‘One-Stop Service’ for imports and exports, and have specially trained government officials stationed on-site to provide administrative services. Applications to establish businesses within SEZs are dealt with on-site, as is company registration and investment licenses, work permits and labour books for workers. Investment approvals, customs inspections and import-export procedures are also conducted on site. Other benefits listed on the SEZ website include tax holidays up to 9 years, 0% VAT, full import duty exemption for raw materials, machinery, and equipment, no export tax, permanent visas for families of investors and free repatriation of profits. Final Report 2-85 Final Report Final Table 2.6-1 List of SEZ in Cambodia SQ Name of SEZ Location Land Area Major Companies Note 1 Neang Kok Koh Neang Kok Village, Pakkhlong Commune, Mundul 335.43 Ha ・Vehicle Assembly of Hyundai cars and Spare part ・3companies located ・ 2-86 Kong SEZ Seyma District, Koh Kong Province Capital: USD 69 million 2 Suoy Chheng SEZ Neang Kok Village, Pakkhlong Commune, Mundul 100 Ha No operation No construction Seyma District, Koh Kong Province 3 S.N.C SEZ Sangkat Bet Trang, Khan Prey Nob, Sihanoukville 150 Ha No operation No construction 4 Stung Hav SEZ Sangkat O Tres, Stung Hav District, Sihanoukville 192 Ha No operation No construction 5 N.L.C SEZ Phum Prey Phdao abd Phum Thlok, Khum Chrok Mtes, 105 Ha No operation No construction Srok Svay Teab, Svay Rieng Province 6 Manhattan SEZ Bavet Commune, Chantrea District, Svay Rieng 157 ・Bicycle Manufacturing ・23 companies located Province ・Bolt-Nut Manufacturing ・Capital: USD 183 million Corrido Economic Southern the through Connectivity of Sstrengthening for ・Footwear Manufacturing ・Garment Manufacturing ・Hi-tech equipment recycling ・Hospital ・Neoprene wetsuits Manufacturing Network Planning] Road on theTrunk Survey Collection Data ・Packing Bag Factory ・Packing Bag Manufacturing ・Manufacturing packing products for export 7 Poi Pet O’Neang Poipet Commune and Nimit Commune, O’Chhrov 467 Ha ・Jewerly Packing Manufacturing ・1 company located SEZ District, Banteay Meanchey Province ・Capital: USD 0.8 million 8 Doung Chhiv Kiri Vong District, Takeo Province 79 Ha No operation No construction Phnom Den SEZ 9 Phnom Penh SEZ Khan Dangkao, Phnom Penh and Ag Snuol District, 350 ・Pure Drinking Water Factory ・55 companies located Kandal Province ・Dry Port ・Capital USD 267 million ・Textile and Printing Factory ・Electric Pole Factory ・Shoe Manufacturing ・Garment) ・Motor Assembly, Accessories and Spare Parts) ・Steel Processing Factory: Material for Construction ・Sugar Packing ・Plastic Box Manufacturing ・Processing Cartons and Papers Production ・Power Plant ・Plastic Factory ・Manufacturing Seasoning and Processing Food r Final Report Final SQ Name of SEZ Location Land Area Major Companies Note 10 Kampot SEZ Koh Touch Commune, Kampot District, Kampot 145 Ha ・No operation Under construction Province 11 Sihanoukvill SEZ 1 Stung Hav District, Sihanoukville City 178 Ha ・Coal fired power plant ・1 company located 2-87 ・Capital: USD 195 million 12 Tai Seng Bavet Bavet District, Svay Rieng Province 99 Ha ・Bicycle Manufacturing ・20 companies located SEZ ・Footwear Manufacturing ・Capital: USD 75.million ・Garment Manufacturing 13 Oknha Mong SEZ Sre Ambel District, Koh Kong Province 100 Ha No operation No construction 14 Goldfame Pak Shun Sa Ang District, Kandal Province 80 Ha ・Carton, Printing Plastic Label and Knitting Factory ・3 companies located SEZ ・Capital USD27 million 15 Thary Kampong Da Commune, Memot District, Kampong Cham 142.14 Ha ・Vegetable Processing Factory ・1 company located Cham SEZ Province ・Capital: USD 26 million Corrido Economic Southern the through Connectivity of Sstrengthening for 16 Sihanoukville SEZ Pou Thoung Village, Betrang Commune and Smach 1688Ha ・Garment Manufacturing Factory ・27 companies located 2 deang Vilage, Ream Commune, Prey Nop District, ・Motor Bicycle Assembly) ・Capital: USD 70 million Sihanoukville ・Plastic Production 17 D&M Bavel SEZ Bavet Commune, Chantrea District, Svay Rieng 117.95 Ha No operation No construction Province Network Planning] Road on theTrunk Survey Collection Data 18 Sihanoukville Port Tomnop Rolok Area, Sangkat Lek1 and Lek3, Khan 67.5 Ha ・Carbon Box Manufacturing ・1company SEZ Meattapheap, Sihanoukville ・Capital:USD21 million 19 Kirisakor Koh Khum Prek Kasach, Srok Kirisakor, Koh Kong 1750 Ha No operation No construction Kong SEZ 20 Kampong Saom Village 4, Sangkat Ortres, Khan Stung Hav, 255 Ha No operation No construction SEZ Sihanoukville City 21 Pacific SEZ Salatean and Preytob Village, Chhrok Mates 107.55 Ha No operation No construction Commune, Svay teap District, Svay Rieng Province 22 Phnom Penh Port New Phnom Penh Port, Kandal Distrct 300 Ha No operation Under planning SEZ Source: JICA survey team, based on CDC data r Final Report Poipet O'Neang SEZ f or S strengthening of strengthening for strengthening of Connectivity through the Southern Economic Corridor Economic Southern through the of Connectivity for strengthening strengthening of Connectivity through the Southern Economic Corridor Economic Southern through the of Connectivity strengthening Data Collection on Survey Data Collection 55 2- 155 53B Data Collection Survey on The Trunk Road Network Planning Network Netwo Road Trunk on The Survey Collection Data 88 55 Connectivity through the Southern Economic Corridor Economic Southern through the Connectivity 53A Thary Kampong Cham SEZ Neak Ko k Koh Kon g SEZ 8 8 Pacific SEZ Souy Chheng SEZ N.L.C. SEZ Oknha Mong SEZ t Tai Seng SEZ Planning Network Road Trunk he Kirisakor Koh Kong SEZ Manhattan SEZ Stung Hav SEZ D&M SEZ Sihanoukville SEZ 1 Phnom Penh Port SEZ Kampong Saom SEZ Goldfame Pak Shun SEZ S.N.C. SEZ Phnom Penh SEZ Sihanoukville SEZ 2 Sihanoukville Port SEZ Kampot SEZ Doung Chhiv Phnum Den SEZ Source: JICA survey team rk Planning Figure 2.6-1 Location Map of SEZ ] ] Data Collection Survey on the Trunk Road Network Planning for Strengthening of Connectivity through the Southern Economic Corridor Table 2.6-2 Characteristics of Major SEZs Name of SEZ Phnom Penh SEZ Manhattan SEZ Tai Seng Bavet SEZ Dragon King SEZ Phnom Penh SEZ Co., Ltd: Manhattan International Co., Ltd: Ms. Lim Chiho (Cambodia-Chinese) Tai Seng Enterprise Group, Tai Seng Developer Universal Joint International Group (Taiwan): Dragon King SEZ Co., Ltd. 78% Bavet SEZ Co., Ltd M ajority shareholder Zephyr Co., Ltd 22% Date of October 2006 November 2006 2006 October 2012 establishment It is located 154km from Phnom Penh It is located 154km from Phnom Penh City It is located 148km from Phnom Penh 18km from the center of Phnom Penh City through national