Over the past several years, Cambodia has established procedures and granted permission for a number of Special Economic Zones to operate in the Kingdom. The idea is to offer a “one-stop-shop” for setting up a business, particularly manufacturing factories. Infrastructure, labor, and government administration are all grouped in a single place, making it easier to get up and running. Of the 21 approved, 8 are up and running – mostly along the border with Thailand and Vietnam.
An article in today’s Post on the subject caught my attention, particularly the following quote from Hidetoshi Nishimura, executive director of the Economic Research Institute for ASEAN and East Asia:
“The important thing [for Cambodia] is to get foreign money to foster its domestic industry. SEZ development in Cambodia is a potential way to produce exports for China,”
SEZs were pioneered by China in the early 1980s, and proved an enormously successful experiment in capitalism that lead to the economic giant we see today. It’s interesting to see that China is now exporting the SEZ model to its neighbors, so they can export goods back to China.
For more on Cambodian Special Economic Zones and other investment incentives, see our publication here.