Sihanoukville
Sihanoukville exhibits capital boom-bust: population exploded 60,000 to 300,000 by 2019, then 1,000+ buildings abandoned after gambling ban—$6B revival underway.
Sihanoukville exhibits boom-bust dynamics driven by external capital—a fishing village of 60,000 that exploded to 300,000 residents by 2019 as Chinese investors transformed it into a half-finished gambling resort. About 90% of businesses became Chinese-owned, mostly casinos catering to mainland gamblers avoiding domestic prohibitions. The Belt and Road Initiative positioned Sihanoukville's deep-water port as a strategic node, with Washington viewing the Chinese-renovated Ream naval base (inaugurated 2023, hosting two warships since December) as potential leverage for South China Sea access.
The bust arrived equally dramatically. The 2019 online gambling ban cost an estimated $3.5-5 billion in annual revenue, and COVID-19 prompted Chinese developers to abandon projects. Over 1,000 buildings sat empty for two years. The illicit economy that remained generated scamming syndicates and human trafficking compounds described as modern slavery. From January to November 2024, the government approved 213 projects worth $6.026 billion intended to create 40,000 jobs and resolve stalled construction.
The government plans to classify the entire province as a special economic zone, with three-phase port development by 2029 enabling direct access for US and EU cargo ships. But Sihanoukville's trajectory illustrates dependency risk: Chinese investment comprises nearly 40% of Cambodia's total FDI. When external capital flows reverse, cities built on that capital face collapse. Sihanoukville oscillates between ghost town and construction site, its future determined by decisions made in Beijing rather than Phnom Penh.