A Chinese defense company, in partnership with Cambodia’s military, has begun construction on a major industrial park near Phnom Penh, further expanding China’s presence in the kingdom’s defense sector.
Cambodian Defense Minister and Deputy Prime Minister Tea Seiha presided over the groundbreaking ceremony for the C-01 Industrial Park on Monday in Kandal province, marking a significant step in bilateral military cooperation.
The 132-hectare project is a collaboration between Cambodia’s General Department of Materials and Technology and Chinese firm Sageras Defense (Cambodia) Co. Ltd. While the total investment value remains undisclosed, the industrial park is expected to house a large dry port, industrial zones, commercial buildings, water treatment and storage facilities, worker accommodations, and green spaces.
Strategic Significance and Defense Links
A Cambodian source familiar with the investment revealed that approximately 65 hectares of the industrial park will be allocated for the dry port, heavy and light industrial areas, and commercial developments. However, the intended use of the remaining land remains unclear.
A dry port functions as an inland logistics hub with connectivity to major seaports through road, rail, or inland waterways, enhancing trade and military logistics capabilities. The C-01 project is located near the Phnom Penh Special Economic Zone, a Cambodian-Japanese joint venture, but its focus will be on strengthening Cambodia’s defense infrastructure and operational capacity.
The Cambodian defense ministry has emphasized that the project will play a key role in modernizing Cambodia’s defense sector. Developers are currently working on infrastructure development while seeking operational licenses for the dry port.
This project underscores China’s deepening military and economic engagement with Cambodia, reflecting broader regional geopolitical shifts.
