Warehouses and factories play a crucial role in supporting businesses engaged in manufacturing, storage, and distribution activities. Typically, these facilities are strategically located on the outskirts of major cities, ensuring easy access to transportation networks and key logistics centres, and Cambodia is no exception.
Furthermore, Cambodia's Special Economic Zones (SEZs) offer attractive opportunities for businesses looking to establish warehouses and factories, providing a range of benefits and incentives to enhance their operations further.
In this guide, realestate.com.kh will offer insights into the locations of warehousing, factories, and special economic zones, along with information on lease terms, ownership, prices, and other valuable details for readers interested in these aspects of Cambodia's business landscape.
Warehouses and Factories
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Warehouses and factories in Cambodia offer numerous advantages, making them attractive options for businesses. These facilities are often situated just outside major cities like Phnom Penh, resulting in cost-effectiveness due to lower land prices and access to workers.
Their proximity to transportation routes and logistics centres ensures efficient supply chain management, leading to reduced transportation costs and delays.
Locations for Warehousing in Phnom Penh
- Sen Sok District, located in the northern region of Phnom Penh
- Por Sen Chey District, situated southeast of Phnom Penh
- Dangkor District, located to the west of Phnom Penh
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Special Economic Zones (SEZs)
Credit: Sihanoukville SEZ / Khmer Times
Special Economic Zones (SEZs) in Cambodia, exemplified by Sihanoukville SEZ and Phnom Penh SEZ, are key drivers of the country's economic growth. SEZs offer numerous advantages, including tax incentives, streamlined customs procedures, and access to existing infrastructure networks. Moreover, these strategic zones are typically equipped with well-developed infrastructure and utilities, attracting both local and foreign businesses.
SEZs are designed to attract foreign investments and industrial ventures, providing a favourable environment for those interested in setting up warehouses and factories in Cambodia. Multinational companies such as Coca-Cola, Nike, Adidas, Yazaki, and Yeos have established themselves in different SEZs across the kingdom.
Most Popular Special Economic Zones
Credit: Phnom Penh SEZ / Khmer Times
- Phnom Penh SEZ, located in the capital city, provides businesses with convenient access to the city's infrastructure and logistics networks.
- Sihanoukville SEZ, situated near the deep-sea port of Sihanoukville, is the preferred choice for businesses engaged in international trade and logistics.
- Poipet SEZ, located at the border with Thailand, offers businesses a gateway to cross-border trade and access to Thailand's markets.
- Bavet SEZ, situated at the border with Vietnam, provides businesses with proximity to Vietnam's markets.
Lease Terms, Ownership, Price, and Deposit
When it comes to leasing warehouses and factories in Cambodia, businesses have flexible options to suit their operational needs. Lease terms typically range from 5 to 10 years, accommodating long-term industrial activities, although shorter agreements can be arranged to meet specific requirements.
Ownership of landed properties such as land and warehouses in Cambodia is open to Cambodian nationals and naturalized Cambodians. For foreigners, ownership can be secured through alternative mechanisms such as nominee arrangements, land-holding companies, and the trust law.
Prices, whether for renting or purchasing these industrial facilities, can vary widely, influenced by location, size, and available amenities. Rental rates usually range between $2 to $5 per square meter per month, while purchase prices can exhibit significant variability. Regarding deposit, both warehouses and factories commonly require equivalent to 2-3 months' rent, which is open to negotiation, and advance rent payments may also be requested to facilitate smooth leasing processes.
In Summary:
- Warehouses and factories in Cambodia are vital for manufacturing, storage, and distribution activities. They are strategically located near major cities for easy access to transportation networks.
- Special Economic Zones (SEZs) like Sihanoukville SEZ and Phnom Penh SEZ offer well-developed infrastructure, tax incentives, and streamlined customs procedures, making them attractive for businesses.
- Lease terms for warehouses and factories generally range from 5 to 10 years, with flexible options available.
- Ownership is open to Cambodian nationals and naturalized Cambodians, while foreigners can secure ownership through alternative mechanisms such as trust, nominee, and land-holding company
- Rental rates typically vary from $2 to $5 per square meter per month, while purchase prices exhibit significant variability.
- Security deposits, equivalent to 2-3 months' rent, are common, with negotiable terms and possible advance rent payments.
- SEZs are designed to attract foreign investments and industrial businesses, fostering a conducive environment for those looking to establish warehouses and factories in Cambodia.
- Prominent SEZs include Phnom Penh SEZ, Sihanoukville SEZ, Poipet SEZ, and Bavet SEZ, each offering unique advantages for businesses.
If you're seeking warehouses, factories, or any other real estate in Cambodia, visit our website and social media channels for options. For personalised assistance, contact our customer service team. Realestate.com.kh helps you navigate Cambodia's real estate market.
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