Special Economic Zone (SEZ) project has been implemented in Cambodia since 1995. As the first qualified investment SEZ project in Cambodia, the project of Phnom Penh Special Economic Zone (PPSEZ) was introduced at the 4th CECAR and the Phase I was completed in the middle of 2008. This leading project induced advanced key industries from foreign abroad to the least developed country of Cambodia with direct economic impact on new job creation and indirect technical transfer. Cambodia Society of Civil Engineers nominated this project as outstanding pioneering project which could be a development model for remaining least developed countries in Asia. The project contributes to bottoming up and spreading through Asian nations economy, as well.

First, this reserach reviews advantages in the Phnom Pehn Special Economic Zone and suggests suitable directions for upcoming 20 SEZ projects in Cambodia. Modern regional development planning CGE (computable general equilibrium) model is used for investigating indirect impacts which might vary due to the combination of several policies associated with tax benefit, type of new industry, location, and logistic network. A new type of agro-processing special economic zone liked by multi-transportation mode was found to provoke a new industrial revolution in Cambodia.

Next, the analysis applied to Cambodia is extended to some other developing countries in order to suggest a suitable development strategy with the application of SEZ projects. Harmonizing and building innovative communities in Asian nations is recommended.