Phnom Penh Special Economic Zone 2026
Phnom Penh SEZ is Cambodia's largest and most established Special Economic Zone, hosting 100+ companies from 16 countries with 25,000+ workers. Located on National Road 4 with direct access to Sihanoukville port, it offers pre-built factory shells, one-stop government services, and comprehensive tax incentives.
Zone Overview
| Location | 18 km south of Phnom Penh, National Road 4 (to Sihanoukville port) |
| Total Area | 357 hectares |
| Operational Since | 2006 — Cambodia's first and largest SEZ |
| Developer/Operator | Phnom Penh SEZ Plc (listed on Cambodia Securities Exchange) |
| Current Tenants | 100+ companies from 16 countries |
| Workers Employed | 25,000+ direct employees |
| Key Industries | Garments, auto parts, electronics assembly, food processing, packaging |
| Distance to Port | 230 km to Sihanoukville Port (4-hour drive via NR4) |
Key Tenants
| Company | Sector | Employees | Notes |
|---|---|---|---|
| Minebea (Japan) | Precision motors, electronics | 8,000+ | One of largest foreign manufacturers in Cambodia. Major employer. |
| Sumitomo Wiring Systems (Japan) | Automotive wiring harnesses | 3,000+ | Supplies Toyota, Honda. Part of diversification from Thailand. |
| Yamaha Motor Parts (Japan) | Motorcycle components | 1,500+ | Assembly and component manufacturing for ASEAN market. |
| Pactics (Netherlands) | Microfiber products, luxury packaging | 1,000+ | Produces for Swarovski, Ray-Ban. High-value manufacturing. |
| Multiple Garment Factories | Apparel, footwear | 5,000+ | Major brands sourcing from PPSEZ factories. EU EBA preference access. |
Costs & Lease Rates
| Item | Rate | Notes |
|---|---|---|
| Factory Shell Lease (pre-built) | $3.50–5.50/sqm/month | Ready-to-occupy factory shells from 500–5,000 sqm. Utilities connected. Fastest path to production. |
| Developed Land Lease (build-to-suit) | $45–65/sqm/year | Serviced plots for custom factory construction. Long-term leases (50+ years). Infrastructure to plot boundary. |
| Office Space (in-zone) | $8–12/sqm/month | Furnished and unfurnished office units within the zone. Admin building and standalone offices available. |
| Electricity | $0.11–0.16/kWh | Dedicated power supply from EdC. Lower than Phnom Penh commercial rates. Backup generators available. |
| Water Supply | $0.55–0.75/m3 | Treated water supply. Industrial wastewater treatment facility on-site. |
| Waste Management | Included in service charge | Solid waste collection and disposal. Hazardous waste handling available for additional fee. |
| SEZ Management Fee | $0.30–0.50/sqm/month | Covers common area maintenance, security, landscaping, road maintenance. |
Incentives
Application Process
Frequently Asked Questions
How long does it take to start operations in Phnom Penh SEZ?
If leasing a pre-built factory shell, it is possible to commence operations within 3–6 months from initial application. The timeline includes: company registration (2–4 weeks if new), SEZ tenant application (2–4 weeks), CDC/QIP application (can run in parallel, 3–6 months for full approval but interim status may suffice), lease signing and fit-out (1–3 months for a shell, 3–6 months for land + construction). The zone's one-stop-shop significantly accelerates government registrations that would take much longer outside the zone.
What are the advantages over setting up outside an SEZ?
Key advantages: (1) One-stop-shop government services — all permits, licenses, and registrations processed on-site rather than visiting 5–8 different ministries, (2) Streamlined customs — dedicated facility, faster clearance, bonded warehouse, (3) Import duty and VAT exemption on production inputs — automatic for zone tenants, (4) Ready infrastructure — power, water, roads, drainage, wastewater treatment all provided, (5) Lower electricity rates than off-zone commercial rates, (6) Security — 24/7 zone security, CCTV, controlled access, (7) Community of established manufacturers — networking, shared logistics, supply chain synergies.
Can I sell products to the Cambodian domestic market from the SEZ?
Yes, but with conditions. SEZ tenants can sell to the domestic market, but goods leaving the zone for domestic consumption are subject to import duties and VAT as if they were imported from abroad. This is because the SEZ operates as a customs-bonded area. Most tenants are export-oriented (which maximizes the duty-free benefits), but many sell a portion domestically. The customs procedures for domestic sales are handled through the zone's customs office. Some tenants maintain separate inventory for export and domestic lines.
What support services are available within the zone?
Phnom Penh SEZ provides comprehensive support services: (1) One-stop-shop government services (customs, tax, labor, commerce, CDC), (2) Banking facilities (ATMs, business banking), (3) Cafeteria and food court serving 25,000+ workers daily, (4) Medical clinic for worker health services, (5) Shuttle bus services for workers from Phnom Penh, (6) Training center for skills development, (7) Wastewater treatment plant, (8) Fire station, (9) Logistics companies operating within the zone for shipping and freight forwarding, (10) Accommodation for workers in nearby purpose-built dormitories.
Is Phnom Penh SEZ publicly listed?
Yes. Phnom Penh SEZ Plc is listed on the Cambodia Securities Exchange (CSX) under the ticker PPSP. It was one of the first companies to list on the CSX when the exchange launched in 2012. This provides transparency in financial reporting and corporate governance. As a publicly listed zone operator, PPSEZ publishes annual reports, quarterly financial statements, and occupancy data. This transparency is unusual among SEZ operators in the region and provides additional confidence for prospective tenants.
Apply for Phnom Penh SEZ
Our partners facilitate SEZ tenant applications, CDC/QIP registration, and factory setup within the zone. Share your manufacturing plans for a complete setup roadmap.
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Legal Disclaimer: SEZ terms, lease rates, and incentives are subject to change. This guide is for informational purposes only. Contact PPSEZ directly for current availability and consult a licensed Cambodian lawyer before signing agreements.
Our legal content is developed in partnership with licensed Cambodian attorneys and business consultants who specialise in foreign investment, immigration, and property law.
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