Two factories are scheduled to commence production within the ISI Special Economic Zone (ISI SEZ) in the middle of the second quarter of 2026, while several other companies are currently studying the feasibility of establishing factories or enterprises there.
The ISI SEZ is located in Prey Nob district, Preah Sihanouk province, along the Phnom Penh–Sihanoukville (PP–SHV) expressway, and covers a total area of 800 hectares. The zone officially broke ground on January 10, 2025.
The project, whose master plan was designed by local experts in collaboration with a specialised design institute from Australia, will be developed in three phases. Phase 1, covering approximately 300 hectares, will be designated for factories and enterprises. Phases 2 and 3 will include a one-stop service office building, employee dormitories, commercial buildings and vocational training centres, among other facilities.
Clean water treatment systems, wastewater treatment facilities, power substations and other infrastructure have also been planned and installed within the ISI SEZ.
Kheng Chansophal, sales and marketing director of ISI SEZ, told journalists at the ISI SEZ site on December 13 that over the past year, teams of experts and workers have been working intensively on land clearing, landfilling, and the construction of various infrastructure components within ISI SEZ project.
At present, two factories are under construction. They are scheduled to begin operations around May 2026. In addition to these two factories, many foreign investors — particularly Chinese investors — are currently assessing the feasibility of setting up factories, according to Chansophal.
He explained that SEZs play a crucial role in promoting national economic growth by attracting both domestic and international investors. As the number of manufacturing and processing factories increases, Cambodia’s export potential will grow accordingly.
“The ISI Special Economic Zone will become an important contributor to promoting Cambodia’s economic growth by attracting investors to make direct investments, creating jobs for the people and generating tax revenue for the government to use for national development,” he said.
According to Chansophal, the two factories currently under construction include a car tyre manufacturer and air systems to support the automotive industry, both owned by Chinese investors.
“The strategic location of ISI SEZ ensures excellent connectivity for export-oriented factories and enterprises, as it is situated close to the Sihanoukville Autonomous Port. The ISI SEZ will become an important gateway to markets in Southeast Asia and around the world,” he said.
Deputy Prime Minister Sun Chanthol, first vice-chairman of the Council for the Development of Cambodia (CDC), has previously stated that special economic zones not only contribute to attracting domestic and international investors and enhancing export capacity, but also meet domestic demand.
According to the CDC, special economic zones are strategically located areas with strong potential and ready-built supporting infrastructure that facilitate all investment activities. In general, SEZs are situated in the most suitable locations to help investors’ businesses grow and succeed.
The 2024 performance report of the Ministry of Industry, Science, Technology and Innovation said that as of the end of 2024, Cambodia had a total of 30 special economic zones with factories in operation. This represented an increase of four zones, or 15.38 percent, compared to 2023.
