PM OKs Economic Zones in Phnom Penh, Takeo

Prime Minister Hun Sen on Wed­nesday approved two new special economic zones to be develop­ed by private companies in Phnom Penh and Takeo province, officials said.

The Doung Chhiv Development Com­pany will initially spend $28 million on a zone in Takeo’s Kiri Vong dis­trict, while the Attwood im­port-export company will spend $60 million on a zone in Phnom Penh, government spokesman Khieu Kan­ha­rith said.

He said the zones would be operational by the end of the year. The plans were approved at a meeting of the Council of Ministers’ economic committee.

Special economic zones offer government services on site and raw materials can be imported into the zones tax-free.

“All paperwork would be ap­prov­ed there, they don’t need to come to the relevant ministries,” Khieu Kan­harith said. “Some taxes are exempt in the zone, but labor standards are the same.”

He said that Hun Sen praised the two Cambodian firms for investing in­side the country rather than sending profits abroad.

Suon Sitthy, deputy secretary-gen­eral of the Council for the De­vel­op­ment of Cambodia, said the Phnom Penh zone will be 353 hec­tares while the Takeo zone will comprise 57 hectares.

“At the meeting, the two SEZs were approved in principle,” he said, adding that official sub-decrees re­main to be signed.

Doung Chhiv, president of the Chi­nese Association in Cambodia and director general of the Doung Chhiv company, declined to comment on his new zone Wednesday.

Doung Tech, deputy director of the Doung Chhiv subsidiary named the Cooperation for the Develop­ment of Phnom Denn, said $70 million will be spent over seven years at the Takeo zone. He said two other unnamed companies own a 30-percent stake in the development.

 

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