Council for the Development of Cambodia (CDC)
http://www.cambodiainvest.gov.kh
Investing in CAMBODIA
CDC Chairman
Secretary General
CIBSecretary General
H.E. Mr. SUON SITTHY
CRDBSecretary GeneralH.E. Mr. CHHIENG YANARA
• Investment Law/FDI• Investment Promotion• Licensing• Project Evaluation• Country Analysis and Strategy
• Aid Coordination• Multilateral Coordination• Bilateral Coordination• Public Investments• NGO Relation
2 Vice-Chairmen
1st Vice-ChairmanH.E. Mr. Keat Chhon, Senior Minister, Minister of Economy and Finance
H.E. Mr. CHAM PRASIDHSenior Minister & Minister of Commerce
H.E. Mr. KONG VIBOL1st Secretary of StateMinistry of Economy and Finance
H.E. Mr. SOK CHENDA
H.E. Samdech HUN SENPrime Minister
Flow chart of investment applicationsCDC Chairman
CDC Single-Stop-Servicechaired by H.E. Cham Prasidh
CIB Secretary General
H.E. Cham PrasidhCDC Vice-Chairman
CIB Departments
Routine investment applicationsfor garment factories, footwear
and their supporting industries, and hotels
Non-routine complexinvestmentapplications
< 7 Days < 25 days
Newly created 3rd arm of the CDC (December 2005):
The SEZ CommitteeCDC Chairman
CRDB CIB C-SEZ
C-SEZ One-Stop-Service Meetingpresided by
Prime Minister & CDC ChairmanH.E. Samdech Hun Sen
CRDB SG
Public Investments Private Investments outside SEZ Private Investments inside SEZ
CIB SG C-SEZ SG
SSS
Note: SEZ=Special Economic Zone
The Cambodian Investment Board (C I B)A One Stop Service
• Information & Application• Analysis & Evaluation• Approval• Customs Duty & Tax Exemption• Visa & Work Permit• Company Registration
Incentives according to the Law on Investments (2003)
20% Corporate Income Tax Trigger period +3 years + n (automatic)
Reinvestment of profit (special depreciation)Reinvestment of earning (withholding tax)5-year loss carry forwardFull Import Duty ExemptionNo Export TaxLicensing (Simple registration)
FDIs in Cambodia in 2004 (by country)
141.13
107.96
32.24
15.5711.37
7.33 6.88 5.05 3.9 3.16 2.16 1.96 1.91 0.71 0.52 0.29 0.010
20
40
60
80
100
120
140
160
Cam
bodi
a
Chi
naM
alay
sia
Sing
apor
eCh
ines
e Ta
ipei
Fran
ce
RO
K
Thai
land
USA
Cana
da
Japa
n
Rus
sia
Uni
ted
Kin
gdom
Dom
inic
an R
ep.
Hon
g K
ong
SAR
Swed
enA
ustr
alia
FDIs in Cambodia in 2005 (by Country)
280.96
241.58
68.1758.38 56.84 54.93
35.89
12.8 7.64 4.99 3.96 2 1.92 0.670
50
100
150
200
250
300
China
Cambo
diaChin
ese T
aipei
ROKThail
and
Singapore
Malays
iaUnit
ed K
ingdom
France
USACan
ada
Austra
liaIndone
siaArg
entin
a
1,961
4,341
831342
63145140160196554578
618
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Jan-Oct
2007
Total FDI
FDI in Cambodia(in USD million)
Source: CDC November 2007
In the center of In the center of gravity of gravity of
the most dynamic the most dynamic region in the region in the
worldworld
ChinaChina
Manufacture in Cambodia and
you’ll have 310 million consumers
in the Greater Mekong Sub-region
(GMS), virtually at your
doorstep…
Manufacture in Cambodia and Manufacture in Cambodia and
youyou’’ll have ll have 310310 millionmillion consumersconsumers
in the in the Greater Mekong SubGreater Mekong Sub--regionregion
(GMS), virtually at your (GMS), virtually at your
doorstepdoorstep……
North-South Economic Corridor
East-West Economic Corridor
Southern Economic Corridor
GMS GMS Flagship Flagship ProjectsProjects
.
Phnom PenhThe Philippines
Singapore
Indonesia
MyanmarSouthern China
ManilaBangkok
Kunming
Yangon
Brunei
Jakarta
Begawan
Hanoi
Laoso Vientiane
Malaysia
Kuala Lumpur
ThailandVietnam
3hrs in average
Japan
CAMBODIA
Manufacture in Manufacture in Cambodia and youCambodia and you’’ll ll have have 560 560 million million consumers in consumers in ASEAN, virtually at ASEAN, virtually at your doorstepyour doorstep……
.
.
.
.
.
MORE REASONS TO INVEST
Open economy
Business friendly government
Sound macroeconomic environment
Foreigner friendly population
Reasonable cost (young
and energetic work force)
Favorable investment incentives and tax regime Strategic locationAbundant natural resourcesWorld class tourist site
Market access
Regional arrangements
Agro-business
Basic agrarian economyNatural endowments:
Abundant landRich fishery resourcesTimber resources
Organic cropsOrganic cropsValueValue--added emphasis/ added emphasis/ Food processingFood processingNew product developmentNew product development
Infrastructure: A definite prospect
Priority for infrastructureInfrastructure rehabilitationMultilateral aid availabilityDecentralizationRegional opportunitiesASEAN & GMS integrationPrivate Participation in Infrastructure (PPI): BOT, BOO, etc…
Physical Infrastructures: Work in progress
Asian Highway A1: Build and Rehabilitate Bangkok – Phnom Penh –Vung Tao Road
Rehabilitate RN7 from Southern Laos to Sihanoukville Deep Seaport
Upgrade and Expand Sihanoukville Port
Upgrade and Expand Phnom Penh, Siem Reap and Sihanoukville Airports
Tourism
Natural beauty
World Heritage Monuments
Open Sky Policy to Siem Reap
Ability to attract “add-on” trips
Novelty value
Diversification of the economy
Promote industries and services currently not available in Cambodia to diversify the growth base
The Government adopted a Sub-decree on the Establishment and Management of Special Economic Zone (SEZ) in Dec 2005
SEZ will include export processing zones and free trade zones
Special Economic ZonesThe main rationale of establishing SEZs is to:– Provide investors with adequate infrastructure and supportive facilities– Effectively respond to the challenge of diversifying the Cambodian
economy and to promote demand-driven development, such as export promotion
– Enhance competitiveness of garment industry and other labor intensive activities
– Promote agro-industry, food processing– Promote assembling industry– Promote electronic and electric appliances industries
The following growth poles have been identified for industrial development:– Poipet and Koh Kong (at the Cambodian-Thai border)– Bavet and Phnom Den (at the Cambodian-Vietnamese border)– Phnom Penh– Sihanoukville
Sihanoukville Port has harbour facilities and “dry ports” which have been developed to enhance its competitive edge as an international commercial gateway
Current Licensed Special Economic Zones (SEZ)Current Licensed Special Economic Zones (SEZ)And other potential areasAnd other potential areas
O Neang Poipet SEZ
Pailin
Kompong Cham
Kep
Ho Chi Minh-City
O’Yadao
Phnom Penh SEZSuoy Chheng Koh Kong SEZ
Sihanoukville SEZS.N.C. SEZ
Kampot SEZ
N.L.C. SEZ
Eastern Seabordof Thailand
Neang Kok Koh Kong SEZ
Duong Chhiv Phnom Den SEZ
Manhattan Svay Rieng SEZ
Kaam Samnor
Stoeng Hav SEZ
Phnom Penh Special Economic Zone (PPSEZ)
• PPSEZ is the Industrial and Residential Estate owned by Attwood Investment Group (Cambodia) joint venture with ZEPHYR Co., Ltd (Japan) with a 50-50 share
• The investment project has been approved by the first meeting of Cambodia Board of SEZ on 15 February 2006 which was presided over by Samdech Prime Minister Hun Sen
Private Sector Development Steering Committee (PSD-SC)
Private Sector Development Steering Committee
(PSD-SC)Chairman:
Sr. Minister KEAT ChhonVice Chairman:
Sr. Minister CHAM Prasidh
Sub-Steering CommitteeOn Investment Climate
And Private ParticipationIn Infrastructure
(PPI-SSC)Chairman:
Sr. Minister KEAT Chhon
Sub-Steering CommitteeOn Trade Development &Trade-related Investments
(TD&TRI-SSC)Chairman:
Sr. Minister CHAM Prasidh
Sub-Steering CommitteeOn Small and Medium
Enterprises(SME-SCC)Chairman:
Minister SUY Sem
Publicadministration
reform
Fighting Corruption
Legal and judicial reform
Armed forces reform and
demobilization
Peace, political stability and social
order
Integration of
Cambodia into the
region and the world
Partnershipin
development
Favorable macroeconomic and financial environment
Improving productivity and diversifying
agricultural sector
Land reform and mines clearance
Fisheries reform Forestry reform
Further construction of transport infrastructure
Management of water resources and
irrigation
Development ofenergy and power
grids
Development of Information and Communication
Technology
Strengthening private sector and attracting
investments
Creating jobs and ensuring improved
work conditions
Promoting SMEs Ensuring social safety nets
Enhancing quality of education
Improving health services
Fostering gender equity Implementing Population Policy
Good Governance• The core of the Rectangular Strategy of the third
term of the Royal government of Cambodia is good governance, focused at four reform areas:
• (1) anti-corruption, • (2) legal and judicial reform, • (3) public administration reform including
decentralization and deconcentration, and• (4) reform of the armed forces, especially
demobilization.
Zone Developer(Private Company)
- Administration- Finance- Operation - Promotion- >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>- >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Special Economic Zones Administration
(One-Stop Service)
- Representative of the CambodianSpecial Economic Zone Board
Chairman-Representative of the Custom
and Excise Department Member- Representative of CAMCONTROL Member- Representative of the Ministry of
Commerce Member- Representative of the Ministry of Labor and Vocational Training Member
Samdech Hun SenPrime Minister
Chairman of CDC
Cambodian Special Economic Zones Board
“CSEZ B”
Policy and Planning
Department
Operation and Management Department
Project Analysis and Registration
Department
Administration Department
Trouble Shooting Committee
-Chairmen of the CDC Chairman-Minister of the Council of Ministers Member -Minister of Economy and Finance Member -Minister of Commerce Member -Minister of Land Management, Urbanism and Construction
Member -Minister of Environment Member -Minister of Industry, Mines and Energy Member -Minister of Public Works and
Transportation Member -Minister of Labor and Vocational
Training Member -Secretary General of the CDC Member -Secretary General of the CSEZB Secretary
Secretary General
Deputy Secretary General
Structure at CDC and at each SEZ
Angkor Wat (Siemreap, Cambodia)
Be in Cambodia: the right place, the right time, for the right investment.