31 Aug 2016
Cambodia: Phnom Penh SEZ Looks to Woo Overseas Manufacturers with 15-Year Factory Leases
Factories in the Phnom Penh Special Economic Zone (PPSEZ) will be available for lease by overseas manufacturing companies for periods of up to 15 years. The government has pledged to invest US$3 million in the construction of such units, with 10 factories expected to be completed over the next three to five years.
The move forms part of a bid to diversify the PPSEZ’s revenue streams following a recent decline in the level of land sales. With land leases typically running over a 50-year period, the shorter-term factory rentals are expected to appeal more to overseas businesses looking for low start-up costs and a high degree of flexibility.