SIHANOUKVILLE PORT SEZ

1

October 2009

2

SINGAPORE

MYANMA

CHINA

VIETNAM

LAOS

THAILAND

CAMBODIA

MALAYSIA

INDONESIA

South China Sea

Gulf of

ThailandAndaman

Sea

Bangkok

MYANMA Location of

Sihanoukville Port SEZ

NH no.4 PNH-SHV 230 km

Why Sihanoukville Port SEZ?

1. The most strategic and potential location for Cambodian Industrial Base, along the Cambodia Growth Corridor, adjoining the Sihanoukville Port which is the only deep sea port in Cambodia.

2. With special support from the central Government.3. With “one-stop-service” for simple and quick administrative

procedures.4. Attractive preferential treatment regarding taxes and business

rights.5. Reliable, transparent and predictable SEZ operation and

management by the State Company.6. Availability of young workforce with competitive wages, who

are eager to be skilled up.

3

Developer and Executing Agency

SIHANOUKVILLE AUTONOMOUS PORT (PAS) The operating institution of the Sihanoukville Autonomous Port

and also the management body of the Sihanoukville Port SEZ. Total investment for Sihanoukville Port SEZ Project :

approximately JPY 3,600million funded by JICA.

COUNCIL FOR THE DEVELOPMENT OF CAMBODIA (CDC) Acting as the RGC’ s focal point for FDI promotion, ODA

coordination functions and administration of SEZ schemes.

4

Investment incentives for QIP in SEZ in Cambodia

Exemption from duties and taxes Profit tax (trigger period + 3 years + priority period ) Import duty (production equipment, construction materials,

production inputs) Export tax VAT (10%) for construction materials, production machines

equipment, production inputs. Simplified Customs Control

Simplified customs control and thorough application of risk management system.

5

Investment Guarantees

• No discriminatory treatment for a foreign investor except the land ownership

• No nationalization policy to adversely affect private properties of investors

• No price or fee fixation by Government for the products or services of a QIP

• Permission for the remittance of profits and repatriation of invested capital

(Article 8-11 of the Law on the Amendment to the Law on Investment)

6

7Sihanoukville Port SEZ

Outline of Sihanoukville Port SEZ Land Use Composition

A Factory area 49.5 ha

B Commercial and multipurpose area 3.5ha

C Intermodal Logistic Park 2.4ha

D Green area 5.2ha E SEZ Administration, Maintenance

Office and Parking 0.9ha

F Utilities (Power, Water, Wastewater, etc.) & Roads

8.5ha

Total 70.0ha

8

Outline of Sihanoukville Port SEZ Infrastructure

A Water supply system

2,000 m3/daySource: GroundwaterProcess: Disinfection

B Power supply system

Power source: 22 kV from EDC distribution line

C Telecom & IT system

Provided by CAMINTEL

D Wastewater disposal system

2000 m3/day

E Solid waste disposal system

Serviced by reliable outside contractor

F Roads Axle load 15 tonDesign speed 35 km/h

9

Commercial & Common Service Facility Area

Production Area

The Port

FUNCTIONAL STRUCTURE OF SIHANOUKVILLE PORT SEZ

10

Factories area 49.5ha SEZ Administration 0.9 haGreen area 5.2 haUtilities and Roads 8.5 ha

Boundary of Different Customs Territory66.5 ha

Boundary of Port SEZ70.0 haIntermodal Logistics and

Park 2.4 ha

Commercial and Multi-purpose area 3.5 ha

LogisticArea

MAIN GATE

CONNECTION GATE

Po

rt C

on

tain

er Y

ard

POTENTIAL INVESTORS

INVESTOR SELECTION CRITERIA• Non-traditional• Frequent container movement• Value-added product• Environmental friendly

11

PREFERENTIAL INDUSTRIESAssembling (motor bike, bicycle, electric, vehicle, etc.) / Manufacturing (Metal processing, Rubber processing, Plastic processing, Food processing, etc.,) / Jewelries / High-end international brand goods / International logistics.

11

SIHANOUKVILLE PORT SEZ ADMINNISTRATION

12

Chairman & CEO

SEZ Board (Advisory Board)

i. Planning dept.ii. Handling dept.iii. Harbor Master dept.iv. Technical dept.v. Financial deptvi. Marketing dept.vii. Warehouse dept.viii.Machinery dept.ix. Billing dept.x. Personnel dept.

Deputy DG - Port

• Administration & Accounting office

• Marketing & Planning office• Logistic service office• Operation & Labor vocational

training office

Executive Director – SEZ dept

PORT DIV.SEZ DIV. (newly setup)

TIME TABLE

Descriptions Target date

Issuance of Sub-Decree for Establishing Sihanoukville Port SEZ

02 Sept.2009

Construction Work 30 Sept. 2009 - Oct. 2011

Commencement of sale Jan. 2010

13

14

Contact details:Sihanoukville Port AuthoritySEZ DepartmentAddress: Terak Vithei Samdech Akka Moha Sena Padei Techo HUN SEN Sangkat No 3, Sihanoukville city, Preah Sihanouk Province, Kingdom of Cambodia.Tel: (855) 34 933 416 / 34 933 511 Fax: (855) 34 933 693 / 34 933 739Email: market@pas.gov.khWebsite: www.pas.gov.kh