Cambodia's Special Economic Zones: A Guide for Foreign Business
As Cambodia positions itself as a competitive investment hub in Southeast Asia, Special Economic Zones (SEZs) are playing a central role. Designed to attract foreign businesses with tax incentives, streamlined customs, and ready-made infrastructure, SEZs are ideal for companies in manufacturing, logistics, energy, and export-oriented industries. In this 2025 guide, we break down how SEZs work, what incentives are offered, and how your business can benefit.
🏗️ What Are Special Economic Zones (SEZs)?
A Special Economic Zone is a designated area where business regulations are more investor-friendly than the rest of the country. These zones are established to attract FDI, create jobs, and boost exports.
As of 2025, Cambodia has over 22 approved SEZs, with active zones located in:
Phnom Penh
Sihanoukville
Bavet (Svay Rieng)
Poipet (Banteay Meanchey)
Kampot
Koh Kong
🎯 Key Benefits of SEZs for Foreign Investors
| Benefit | Description |
|---|---|
| Tax Incentives | Up to 9 years of tax holiday (QIP status), no VAT on imports/exports |
| Customs Clearance | On-site customs procedures reduce delays |
| Ready Infrastructure | Plots with electricity, roads, water, and fiber optic internet |
| One-Stop Service | Registration, permits, and labor approvals all handled in-zone |
| Import/Export Freedom | Exemption from import duties on raw materials and export taxes |
📍 Top Performing SEZs in 2025
1. Phnom Penh SEZ
Closest to capital city, ideal for light manufacturing, logistics, and assembly.
2. Sihanoukville SEZ (SSEZ)
Largest and most developed zone. Strong Chinese investment, port access, ideal for exports.
3. Manhattan SEZ – Bavet
Strategic access to Vietnam. Textiles, electronics, packaging are dominant sectors.
4. Poipet O’Neang SEZ
Thailand border trade zone. Automotive and food processing businesses thrive here.
🗺️ Many zones offer industrial plots for rent or sale with long-term leases available (up to 50 years).
💼 Who Should Invest in SEZs?
SEZs are best suited for:
Manufacturing & assembly plants
Agro-processing factories
Garment, textile, and footwear industries
Export-oriented clean energy projects
Warehousing and logistics companies
Electronics and packaging companies
🧾 Requirements to Register a Business in an SEZ
To set up in a Cambodian SEZ, you typically need:
A registered company (or apply jointly through the SEZ one-stop shop)
Articles of incorporation and business plan
Site lease or development agreement with SEZ developer
Environmental impact assessment (for certain industries)
Tax registration (handled via the SEZ)
QIP status application (if eligible for tax holidays)
🔗 Related: How to Start a Foreign-Owned Business in Cambodia
🏦 SEZ vs. Outside SEZ – What's the Difference?
| Feature | Inside SEZ | Outside SEZ |
|---|---|---|
| Tax Holidays | ✅ Up to 9 years | ❌ Limited |
| On-site Customs | ✅ Yes | ❌ No |
| Infrastructure | ✅ Pre-built | ❌ Must develop |
| Licensing | ✅ Streamlined | ❌ Multiple agencies |
| Export/Import Perks | ✅ Duty-free | ❌ Standard fees |
🔍 Common Challenges to Watch
SEZ plot pricing can vary widely—negotiate before signing
Not all zones are fully developed—visit the site before committing
Labor permits, while easier, still require compliance audits
Some SEZs cater more to Chinese or Thai investors—do your homework
📚 Explore Related Business Guides
📧 Need Help Setting Up in an SEZ?
We help foreign companies negotiate SEZ land deals, register QIPs, and handle compliance with the Council for the Development of Cambodia (CDC).
📧 Email: info@vichetruon.com
🌐 Visit: www.vichetruon.com/contact
