Sihanoukville, a coastal city in southern Cambodia, once flourished as a resort town. It has faced constant fluctuations in political and economic situations. From being a bridge connecting conflicts during the Vietnam War in the past, to the golden age of being a major tourist destination, and becoming a center for foreign investment, especially from Chinese investors. Before facing an economic crisis due to the COVID-19 pandemic, turning the once-bustling city into a ghost town. Follow the story of the Pearl of the Gulf of Thailand through historical and economic perspectives and the fluctuations, with "Sihanoukville, the Pearl of the Gulf of Thailand, to a Deserted Ghost Town." Let's follow along. 1. The Fate of Sihanoukville, the Pearl of the Gulf of Thailand Rewinding to before 1955, the area that is now the city of Sihanoukville, located in the southwest of Cambodia, connecting to the Gulf of Thailand, was just a small town called Kampong Som, but it was an important port since ancient times. Then, from 1955 to 1960, with funding from France and the United States, this city was developed and rebuilt, including the construction of a deep-sea port and roads to connect with the capital, Phnom Penh. When the construction was completed in 1960, the city was renamed "Sihanoukville" in honor of King Norodom Sihanouk of Cambodia. From that point, Sihanoukville began to be known among tourists for the beauty of its beaches and clear blue sea. Various facilities were developed to accommodate the influx of tourists, with hotels and shops springing up like mushrooms. The city of Sihanoukville at that time looked beautiful and captivating, and no one knew that in the future, this city would face a period of turmoil from the dangers of war and would be no different from a ghost town as it is today. 2. From a Resort Town to a Bridge of War Sihanoukville in the late 1960s was not only bright with tourism, but also concealed a dark side connected to the brutal Vietnam War. This city was once a strategic point for transporting weapons and equipment to both the U.S. military and North Vietnam, the two conflicting powers that tried to use Cambodia as a transit point to win the battle in the distant battlefield. During the Vietnam War, the most shocking event occurred in Sihanoukville on May 13, 1975, when a U.S. cargo ship was seized by Khmer Rouge forces, or the Red Army, off the coast of Sihanoukville. Before the U.S. sent forces to engage in a battle to retake the ship on Kong Island, or the island located north of the city, the U.S. military faced fierce resistance and suffered heavy losses before the Khmer Rouge agreed to release the ship and its crew on May 15. Many consider this to be the last engagement of the U.S. in the Vietnam War before withdrawing troops from the Indochina region not long after. The story of Sihanoukville during the wartime is so different from the peaceful resort town of the past, like heaven and earth. 3. Moving Forward to the Prosperous Era After enduring the difficult times of war, Sihanoukville began its new role as a tourist city. Going back to the late 1990s, when the Cambodian government gradually reopened the country to the eyes of the world once again, Sihanoukville was one of the first destinations to be developed. Damaged roads were repaired to be usable again, and regular bus routes were established connecting Sihanoukville with the capital, Phnom Penh. With the beautiful charm of the sea and white sandy beaches, coupled with the convenience of travel, both Cambodian and foreign tourists increasingly traveled to experience the allure of Sihanoukville. Some came to relax amidst nature, while others came to dive and see the beauty under the sea. The image of tourists filled with happiness and laughter seemed to erase the gloomy image of this city in the past. 4. The Arrival of Investors from the Land of the Dragon As Sihanoukville became more well-known among tourists, it caught the eye of foreign investors, especially from China. In 2016, when the Chinese government announced the "One Belt, One Road" policy, or the Belt and Road Initiative, a major economic strategy to connect trade through a new Silk Road covering many countries, including Cambodia, Sihanoukville, as a coastal port city, was not missed and was included as one of the target cities. A massive flow of investment poured into Sihanoukville. Chinese investors came to develop various infrastructure and facilities, including deep-sea ports, roads, shopping centers, casinos, and even condominiums and housing estates to accommodate tourists and foreigners who wanted to reside there. The yuan from the Land of the Dragon transformed the face of Sihanoukville beyond recognition in the blink of an eye. Moreover, in 2019, the number of Chinese tourists visiting this city soared to over 2 million. Sihanoukville transformed into a bustling tourist destination for Chinese people. Skyscrapers, condos, and luxurious buildings sprang up like mushrooms to cater specifically to customers from the Land of the Dragon. It can be said that Sihanoukville had already become a "Chinese city outside China" at that time. 5. The City Where Time Stood Still The story of Sihanoukville seemed to be heading in a bright direction as Chinese investors relentlessly poured money to bring prosperity to the city. However, fate played a trick when the COVID-19 pandemic began in 2020, causing a widespread impact, including on the overall tourism industry. At the same time, China's economy began to slow down, leading to a crisis in the real estate sector. The investment money that once fueled the economy dried up, causing many projects to stall. Many Chinese investors chose to halt their investments and return to their country. Several projects under development in Sihanoukville had to be suspended due to lack of funding. The remains of unfinished buildings were abandoned, becoming a familiar sight within the city. Reports indicated that there were over a thousand unfinished buildings in Sihanoukville. In some cases, investors disappeared without a trace, leaving the burden to the landowners who had signed contracts with them. Such ghost town-like conditions occurred in every corner, as if time had suddenly stood still in this city. Without tourists from afar, Sihanoukville was no different from a ghost town. The streets that were once bustling with people became desolate. The beaches that were once adorned with colorful umbrellas and sunbeds were empty. 6. Efforts to Become the "New Shenzhen" The Cambodian government under Prime Minister Hun Sen recognized the importance of reviving the economy in Sihanoukville by pushing policies to encourage foreign investors to invest again. They poured over $1.1 billion, or over 40 billion baht, to complete the unfinished construction projects. Under the vision to develop this city into both an industrial and tourism hub of the country, the goal was set to turn Sihanoukville into the "New Shenzhen." One of the key strategies was to try to reduce logistics costs by developing transportation systems on land, water, and air, whether it be roads, railways, or ports, to be more efficient to facilitate the transport of goods. In addition, tax incentives were offered to investors, along with accelerating the development of skilled labor to support new industries. It is noteworthy that this development aimed to diversify and attract investment from other countries, such as Japan, South Korea, or even within ASEAN, to spread the risk and create economic stability, rather than relying too heavily on Chinese investment from a single country, as had happened in the past. However, making the city grow sustainably is not an easy task. The government needs to crack down on illegal businesses, such as online gambling, which was once rampant in Sihanoukville. Despite efforts to suppress it, it still exists. Making the city attractive to investors and tourists once again, amidst the uncertainty of the global economy, is a major challenge. But if successful, it could be an interesting model of economic development to watch.
