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Sihanoukville Special Economy Zone: A Model of Pragmatic China-Cambodia Cooperation (Co-building the "Belt and Road" · On the Scene)
Published in: 2023-09-03
Aerial view of Sihanoukville Special Economy Zone. The
overall planned area of the Sihanoukville Special Economy Zone is 11.13
square kilometres, with 6 square kilometres already developed.
The General Tire Factory is the largest investment project
in the Sihanoukville Special Economy Zone. The image shows a quality inspector at work in one of the
workshops of the General Tire Factory.
The above images are all taken by Anu from the Asia-Pacific
Center Branch.
Before 7 a.m., the city of Sihanoukville in Preah Sihanouk
Province, Cambodia, was covered in a light rain. The city center was still
sparsely populated, but outside the gate of the Sihanoukville Special Economy
Zone, there was already
a bustling scene of vehicles. During the early morning rush hour, motorcycles
and cars were constantly streaming towards the Sihanoukville Special Economy
Zone, forming a dynamic
scene with various raincoats.
The Sihanoukville Special Economy Zone is one of the first
overseas economic and trade cooperation zones approved by China and is a
national-level economic cooperation zone between the governments of China and
Cambodia. In the ten years since the proposal of the "Belt and Road"
initiative, the Sihanoukville Special Economy Zone has developed rapidly.
Currently, 175 enterprises have settled in, providing nearly 30,000 job
positions. The thriving Sihanoukville Special Economy Zone serves as a model
for pragmatic cooperation between China and Cambodia, reflecting the vitality
of the "Belt and Road" initiative.
"After the proposal of the 'Belt and Road'
initiative, the development of the Sihanoukville Special Economy Zone has
accelerated."
The Sihanoukville Special Economy Zone boasts wide
and tidy roads, with factories, office buildings, and staff dormitories neatly
arranged. Supporting facilities such as the neighbourhood center, one-stop
service center, legal service center, and health service center are all readily
available. It's hard to imagine that before the groundbreaking ceremony in
February 2008, this place was once barren. The first factory building was
completed in October 2008.
"After the proposal of the 'Belt and Road' initiative,
the development of the Sihanoukville Special Economy Zone has accelerated. The
number of enterprises that have settled here has more than doubled since
2013," said Chen Jian, Chairman of the Sihanoukville Special Economy Zone
Company. "Previously, the Sihanoukville Special Economy Zone was
mainly focused on light industry with low power consumption. Now, with the
increase of heavy industry enterprises, we have specially built our own thermal
power plant to ensure power supply."
Adjacent to the Sihanoukville Special Economy Zone thermal
power plant is the modern production workshop of General Tire Technology
(Cambodia) Co., Ltd. The workshop is filled with the roar of vulcanizing
machines and moulding machines. Workers place raw materials into the moulding
machine, and in less than 40 seconds, a 20-inch tire is moulded.
General Tire entered the Sihanoukville Special Economy Zone
in 2022 with a planned total land area of nearly 180,000 square meters. Tao
Guozhong, the general manager of the company, said that after the factory is
completed and put into operation, it can produce 5 million semi-steel tires and
900,000 all-steel tires annually, creating an estimated 1,600 jobs locally. Yim
Somsen, former Minister of Labor and Vocational Training of Cambodia, stated
that after the General Tire project is put into operation, it will drive the development
of local rubber planting, promote the formation of industrial clusters, and
further boost local employment and economic development.
The Sihanoukville Special Economy Zone is located
near the Gulf of Thailand, with Cambodia's largest deep-water seaport. Jafu
High (Cambodia) Co., Ltd., a U.S. company that mainly produces holiday
decorations and gifts, entered the
Sihanoukville Special Economy Zone in 2013. Ramal, the CEO of the
company, told reporters that the Sihanoukville Special Economy Zone, close to
the port, has very convenient logistics and constantly improving facilities,
providing a favourable environment for the company's development. Thanks to the
platform advantages of the Sihanoukville Special Economy Zone, the company's
production has grown at an annual rate of 10%.
In 2022, the total import and export volume of Sihanoukville
Special Economy Zone enterprises reached $2.493 billion, accounting for
about 4.8% of Cambodia's total trade volume. The contribution rate of
Sihanoukville Special Economy Zone to the economy of Sihanoukville
province exceeds 50%. "The development of Sihanoukville province cannot be
separated from the Sihanoukville Special Economy Zone," said Guo Zongren,
the governor of Sihanoukville province. The thriving Sihanoukville Special
Economy Zone has become the pillar of the local economy.
In a building near the Sihanoukville Special Economy Zone
Comprehensive Service Center, the exhibition of the achievements of the
Sihanoukville Special Economy Zone on the tenth anniversary of the
proposal of the 'Belt and Road' initiative is open to the public. Using a
combination of pictures, videos, and physical exhibits, the exhibition
comprehensively presents the fruitful results achieved by the Sihanoukville
Special Economy Zone with the joint support of leaders from China and
Cambodia at all levels of government. In May of this year, then-Cambodian Prime
Minister Hun Sen, attending the opening ceremony of the exhibition, stated,
"The development achievements of the Sihanoukville Special Economy Zone
are an important part of the cooperative results of the 'Belt and Road'
initiative between Cambodia and China."
“The
model that combines talent support with the development of special economic
zones is worth studying.”
In a corner
of the Sihanoukville Special Economy Zone (Sihanouk SEZ), the Sihanoukville
Port Institute of Commerce and Technology is situated. This institute was
jointly applied for by Wuxi Business Vocational and Technical College and
Sihanouk SEZ Company, and it started admitting students in November 2019.
Anna, a
second-year student from a rural area in Koh Kong Province, Cambodia, chose to
pursue further studies at the Sihanoukville Port Institute of Commerce and
Technology after graduating from high school. While majoring in Business
Management, she also took courses in Chinese, English, and computer science.
Due to her rapid improvement in Chinese proficiency, she has already found a
job as a Chinese translator in Sihanouk SEZ, earning a monthly salary of over $600.
"School
tuition is completely waived, providing excellent learning and job
opportunities for students like me from impoverished backgrounds," says
Anna. "I hope to find a better job after graduation through hard work,
helping improve my family's living conditions."
"Our
students, after mastering certain levels of Chinese language and technical
skills, can earn a monthly salary of nearly $400. After graduation, their
monthly salaries can reach $600 to $800," says Li Chuanbin, the Executive
Principal of the Sihanoukville Port Institute of Commerce and Technology.
"The development of Sihanouk SEZ requires high-quality talents, and many
of our graduates have become the backbone of enterprise management."
Sihanouk
SEZ Company also collaborates with Wuxi Business Vocational and Technical
College to jointly support the education of Cambodian students. Sunshine, a
native of Sihanoukville Province, returned to Cambodia to work on the Golden
Port Highway project after studying at Wuxi Business Vocational and Technical
College. Currently, he manages two service areas. "In the past, we didn't
even have a motorcycle at home, and I had to travel half an hour to get to
school. Now, with a higher salary, I bought a car," says Sunshine, who is
optimistic about the future. "In another year or two, I'll be able to
build a new house!"
The
Sihanoukville Sino-Cambodian Friendship Polytechnic Institute, also located in
Sihanouk SEZ, was built with the assistance of the Chinese government. The
curriculum focuses on skills training, offering various majors such as
accounting and finance, information technology, and electrical engineering,
with 1,125 current students. Lao Heng, the Director of the Technical Training
Office at the institute, mentioned that the decision to establish the school in
Sihanouk SEZ was primarily to provide talent for local businesses. The school
provides short-term or long-term training based on the demands of the
enterprises. "Currently, 80% to 90% of students work in special zone
enterprises. Some students choose to come to the institute for education in
order to work in Sihanouk SEZ," adds Lao Heng.
Cambodian
Minister of State Bos Povsophea mentioned that among many industrial zones in
Cambodia, only Sihanouk SEZ has a training center. "The model that combines
talent support with the development of special economic zones is worth
learning."
"Now,
the village is becoming more vibrant, and everyone's income is
increasing."
"Preah
Sihanouk Province, Mondul Ran commune, Botum village, adjacent to the Sihanoukville
Special Economic Zone. As soon as you enter the village, the reporter sees
Nia's small shop, spacious storefront, neatly arranged with drinks, snacks,
seasonings, and more on the shelves. Nia's hometown is in Kampong Cham
Province, and she and her husband have been in Sihanoukville Province for more
than 10 years. 'Before, everything was lacking here, especially water and
electricity,' she said. 'After the construction of the Sihanoukville Special
Economic Zone, everyone's living conditions have improved.'
When Nia
first came to Botum Village, she worked in a shoe and hat factory, and her
husband sold coffee. With the development of the Sihanoukville Special Economic
Zone, the population in the surrounding areas has increased, and the couple has
seen more business opportunities. Nia's store has gradually expanded, and her
husband has also started construction contracting work in the Sihanoukville
Special Economic Zone. 'Now, the village is becoming more vibrant, and
everyone's income is increasing,' Nia said.
Walking
along the flat cement road, newly built buildings can be seen everywhere. Pang
Shaliang, over 70 years old, is sitting in the yard chatting with neighbors.
Behind him, a two-story building is particularly eye-catching. Pang Shaliang told
the reporter that this building was completed in 2022, with more than 10 rooms
on each floor. Because he saw the advantages of Botum Village near the
Sihanoukville Special Economic Zone, he specifically built this building to
rent to Sihanoukville Special Economy Zone workers, and
the vacant land in the yard was rented to transport drivers for parking.
According
to Mijan, the head of Mondul Ran commune, the population of the commune has
increased significantly in recent years, with more than 2,000 households and a
population of more than 7,000. 'The Sihanoukville Special Economy Zone has
attracted a large number of migrant workers. Many of the small shops, clothing
stores, pharmacies, and rental houses in the village were built in recent
years,' he sighed. 'Who would have thought that more than ten years ago, Botum
Village was still full of thatched huts, and few outsiders came in.'
Local
villagers used to rely on farming and fishing for a living. Now, more and more
villagers work in the Sihanoukville Special Economy Zone and have stable
incomes. Pei Jin is responsible for power maintenance in a company in the
Sihanoukville Special Economic Zone. In seven years, he has grown from an
ordinary employee to a mature technician. Now, he has changed his motorcycle to
a small car, and a new house has been built at home. He said, 'Before, the
roads in the village were very narrow and dirt roads. Now, everyone's life is
getting better, and everything is different.'
'Seventy
percent of families in Preah Sihanouk Province have members working in the
Sihanoukville Special Economic Zone,' Mijan said. Driven by the Sihanoukville
Special Economic Zone, Mondul Ran commune has changed from a poor commune to
the most affluent town in Preah Sihanouk Province, with almost every household
having two or three motorcycles.
The
construction of the Sihanoukville Special Economy Zone is deeply integrated
into the economic and social development of Sihanoukville Province and even
Cambodia, becoming a vivid practice of the joint construction of the 'Belt and
Road' by China and Cambodia. Chen Jianguang said that in the future, the
Sihanoukville Special Economy Zone will continue to promote high-quality
development and make greater contributions to building a community of shared
destiny between China and Cambodia.
(Source:
People's Daily)"