Even if garment factories are wholly Chinese-owned and utilise supplies created in China, they will gain from relaxed tax regimes and quotas when exporting to Europe and the United States, provided items are assembled in Cambodia. Nevertheless, in August 2020, the EU partially withdrew Cambodia’s EBA privileges as a result of human legal rights considerations. This withdrawal impacts twenty% of exports to your EU, primarily clothes—and that is A serious target for firms working throughout the SSEZ.
Cambodia started to combine SEZs into its very long-term advancement method way back to 1998. This was expanded in subsequent Rectangular Approach paperwork, the five-year designs that set out The federal government development agenda. SEZs have regularly been given large-level assist as Section of a drive to catch the attention of international investment decision, boost efficiency, produce work, and bolster the export-oriented economic system.
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