Phnom Penh (FN), Jan. 31 – Cambodian Minister of Economy and Finance Aun Pornmoniroth stated that 362 buildings are unfinished in Sihanoukville, requiring additional investment of USD 1,161 million to complete construction.
His statement was made on Wednesday (Jan. 31) at the launching of "Special Program to Promote Investment in Sihanoukville 2024” in Sihanoukville province, presided over by Cambodian Prime Minister Hun Manet.
"Since 2016, investment in Sihanoukville has grown rapidly, especially with the rapid growth of a large number of hotels, restaurants, shops, and other facilities. However, from 2019 onwards, changes in the socio-economic situation combined with the spread of COVID19 and other global crisis have caused many buildings to be suspended or their construction stopped. Currently, 362 buildings are unfinished, which require an additional investment of about USD 1,161 million to complete the construction, while 176 buildings have been built but not yet put into operation," Minister Aun Pornmoniroth underlined.
On the occasion, the minister added that in order to restore and promote economic growth in Sihanoukville, the Royal Government has introduced a series of support measures, including the construction of the Phnom Penh-Sihanoukville Expressway and the development of roads and key infrastructure throughout the province. In particular, a package of measures to resolve stagnant investment projects was introduced in March 2023, which includes general measures and incentives to be implemented until 2026.
Recently, at the 19th Government-Private Sector Forum on 13 November 2023, Samdech Thipadei also underlined the importance of Sihanoukville and introduced measures to support tourism in the province. He also instructed the relevant ministries, institutions, and provincial administrations to pay more attention to strengthening efforts to maintain security and order in the province.
To address the issue of stagnant investment projects in Sihanoukville, Samdech Thipadei Hun Manet announced the provision of "special benefits" that the Royal Government has decided to implement within the framework of "special programs" for stagnant investment projects to receive the benefits as follows:
- Exemption of income tax, prepayment of income tax and minimum tax for an additional 3 years for Qualified Investment Projects (QIP) and tax-registered small and medium enterprises;
- Exemption of Value Added Tax at the rate of zero percent for self-assessed enterprises that supply local goods or services to stagnant projects or business activities in Preah Sihanouk Province to finish the construction and renovate the unfinished buildings;
- Exemption of withholding tax on rental property for 5 years;
- Waiving for payment of public service fees and excessive fees of the land use index for applying for a construction permit, construction site opening permit, closing construction letter, or certificate of occupancy;
- Facilitate the procedures and formalities for applying for a permit from the competent authority related to construction work, including reducing the time for applying for a construction permit or certificate of occupancy;
- Facilitate the grant of exemption of the inspection and certification fees of architectural plans, construction machinery layout and fees for construction quality and safety inspection and certification in collaboration with ministries, institutions, private sector, landowners and construction owners;
- Prepare principles and facilitate the establishment of a real estate auction sale market and provide services for matching investors, including setting out the reference price for real estate in Preah Sihanouk province;
- Promote the use of Out-of-Court dispute resolution mechanisms in accordance with legal provisions for investment-related disputes.
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