Business

Cambodia Woos Overseas Manufacturers With 15-Year Factory Leases

Factories in the Phnom Penh Special Economic Zone (PPSEZ) will be available for lease to overseas manufacturing companies for periods of up to 15 years. The Cambodian 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.