Beijing Enterprises Group Company Limited will construct an area of 30 square kilometers on a site around 50 km north of Phnom Penh to become Cambodia's largest special economic zone.

The two governments signed an agreement on the project during the Belt and Road Forum for International Cooperation in Beijing in May.

The first phase of the project involves 14 sq., km, and will start before the end of this year.

The zone is expected to become the highest-level new industrial city in the region, and a home for Chinese enterprises and investment.

The Cambodian government gives preferential policies on land and taxation, and the new city will also pay attention to developing logistics, service industries, tourism, etc.

Cambodia's economy has been increasing about 7 percent annually for seven consecutive years, and the country enjoys preferential policies of many major economies. The young population, which takes a comparatively higher share of its economy, provides sufficient labor resource.

Beijing Enterprises Group is confident with the future of the special economic zone.