Phnom Penh—On Wednesday morning, Prime Minister Hun Manet expressed his deep appreciation for the Economic and Financial Policy Committee, the Inter-Ministerial Working Group, and the four provincial administrations in the Northeast, as well as all relevant ministries and institutions. Their collaborative efforts have produced a comprehensive program document aimed at addressing the unique development needs of the Northeast region in alignment with the Royal Government's overarching policy direction.

Prime Minister Hun Manet emphasized that for governments in developing countries, expanding development so that all citizens can share in the benefits of peace and progress is both an essential obligation and a significant challenge. He acknowledged that developing countries often struggle with resource shortages, making simultaneous and equitable development difficult to achieve.

Highlighting the importance of considering regionalization when resources are limited, he assured that no region would be overlooked. Reflecting on the region's challenges, he recalled how, in 1999, former-Prime Minister Hun Sen initiated the Cambodia-Laos-Vietnam Triangle Development Cooperation Framework (CLV-DTA) to guide partnerships aimed at promoting regional development and connectivity. He noted that Cambodia, emerging from a period of conflict, was in urgent need of various forms of cooperation.

Stating that now is the time to develop the Northeast into an independent economic hub capable of effective connectivity with other regions, the Prime Minister identified three critical components for this vision: people, economic flow, and connectivity. He pointed out that while the aim is for people to reside in the Northeast, the lack of economic opportunities often drives them away, linked closely to the region’s challenges with connectivity.

Hun Manet discussed the importance of building physical infrastructure as an ongoing effort that relies on diverse resources, including the national budget, support from development partners, and contributions from the private sector. He argued that effective national defense extends beyond military presence to encompass the development of border areas through infrastructure projects, which can stimulate economic growth.

He outlined several key features of the special program for the Northeast:

1. Investment Incentives: Offering incentives that extend beyond the current investment law and encouraging businesses in the four provinces to voluntarily register for taxation in 2025, which would include exemptions from penalties and tax liabilities.

2. One-Stop Shop Mechanism: Establishing the Northeastern Investment Promotion Working Group (NEIPWG) to streamline project approvals, allowing investors to submit applications and related documents in one place.

3. Support for Local Investors: Lowering the minimum investment capital requirement from $100,000 to foster engagement from small and medium-sized enterprises (SMEs) and local entrepreneurs.

4. Financing Programs: Providing access to financing at reasonable interest rates through the Agricultural and Rural Development Bank and the Small and Medium Enterprise Bank of Cambodia, particularly aimed at supporting SMEs and tourism initiatives.

5. Human Resources Development: Implementing payroll tax incentives for low-wage workers in the Northeast to encourage local employment in various industries.

Hun Manet expressed his desire for this special program to create tangible economic activity in the Northeast, relying on collaboration between the state and private sectors. He encouraged the government to nurture and protect investments to cultivate a business-friendly environment, while advising against any actions that could hinder economic activities.

The Prime Minister urged his team to work collaboratively and efficiently, stressing the need to publicize the program extensively to attract participation from key stakeholders. He also highlighted the importance of ensuring investment security to foster a dependable business climate.

In conclusion, Prime Minister Hun Manet reaffirmed the Royal Government's commitment to safeguarding peace, stability, and territorial integrity while striving to ensure that the benefits of economic growth are distributed among all Cambodians. He called on all relevant ministries and institutions to proactively engage in implementing this special program, taking ownership and demonstrating a strong sense of responsibility.