This initiative was disclosed by Zhao Jianjun, Mayor of Wuxi, Jiangsu Province, during a meeting with Chea Vuthy, Secretary-General of the Council for the Development of Cambodia (CDC) on May 23.(B2B Cambodia, Phnom Penh Post)
The proposed SEZs aim to diversify Cambodia's industrial base beyond traditional sectors like garments and textiles. One zone will target advanced manufacturing and technology sectors, while the other will focus on agro-industrial processing. This move aligns with Cambodia's broader strategy to attract foreign direct investment (FDI) and modernize its economy.(B2B Cambodia, homeinvestcambodia.com)
The Sihanoukville Special Economic Zone (SSEZ), a joint venture between Chinese enterprises led by Wuxi's HOdo Group and Cambodian partners, serves as a model for this collaboration. The SSEZ has attracted over 200 international companies and significantly contributed to Cambodia's export growth .(en.wuxi.gov.cn, Cambodia Investment Review)
In the first two months of 2025, nearly 80% of Cambodia's total investment capital originated from China, underscoring Beijing's deepening economic footprint in the country . The Cambodian government has been actively promoting SEZs to attract such investments, offering incentives like tax breaks and streamlined administrative procedures .(China Global South, homeinvestcambodia.com)
Additionally, infrastructure developments are underway to support these economic initiatives. Direct flights have been established between Wuxi and Preah Sihanouk Province, and plans are in place to enhance maritime cargo links between Jiangsu and the Sihanoukville Autonomous Port. These improvements aim to facilitate trade and investment flows between the two regions.(China Daily)
While these developments present significant economic opportunities, they also raise concerns about Cambodia's increasing dependence on Chinese investment and potential environmental impacts. Projects like the Chinese-funded Funan Techo canal have sparked debates over ecological sustainability and geopolitical implications, particularly concerning relations with neighboring Vietnam .(thetimes.co.uk)
In summary, the planned establishment of two new SEZs by Chinese investors reflects a deepening economic partnership between Cambodia and China, aiming to diversify Cambodia's industrial landscape and enhance its economic growth. However, it also necessitates careful consideration of the associated environmental and geopolitical challenges.(Phnom Penh Post)
