Regardless if garment factories are wholly Chinese-owned and utilise resources made in China, they are able to reap the benefits of peaceful tax regimes and quotas when exporting to Europe and America, presented items are assembled in Cambodia. However, in August 2020, the EU partly withdrew Cambodia’s EBA privileges as a result of human legal rights worries. This withdrawal impacts 20% of exports to your EU, primarily garments—which is A serious target for firms functioning in the SSEZ. 

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This was signed by significant US and EU makes such as H&M, Nike, Adidas, Gap, Puma and Specialised. Some of these organizations resource in the SSEZ, and following the zone’s plant is operational and it moves to a hundred% coal electrical power, they can probably cease sourcing from factories there, Placing in danger a huge selection of Positions.

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The second phase will look for to benefit from the neighborhood port, focussing about the introduction of machinery, tools, creating components, along with other industries. By March 2020, 174 factories had been set up within the zone, reportedly utilizing thirty,000 men and women and producing the SSEZ Cambodia’s greatest export base. The overwhelming majority of zone tenants are Chinese firms. In 2019, the SSEZ started building a focused one hundred MW coal energy plant to be able to deliver trusted Strength supply. This was financed by using a financial loan from ICBC Phnom Penh.