INVESTMENT IN CAMBODIA

Arranged by Mrs. Tui Pakarat-Rutten President of TBCC

H/P: +66 81 839 2452 /+855 16 912 832 E-mail: manager@intra-mekong.com

Cambodia

Bangladesh

Thailand Vietnam

Laos Myanmar

China

India

Malaysia

Indonesia

Singapore

Brunei

Sri Lanka

Philippines

Japan (JTEPA)

Afghanistan

Pakistan

Korea

ACMECS

GMS

IMT-GT/JDS

BIMSTEC

Regional Cooperation: GMS ACMECS BIMSTEC IMT-GT/JDS

Yangon

Lao PDR

Chna Kunming

Danang

Gulf of Thailand

Andaman Sea

Vietbam

Myanmr

Bangkok

Chiang Rai

Trat – Koh Kong Ho Chi Minh

Cambodia

Haiphong

India

Malaysia

Source: Dr. Jula Sukmanup

3

Thailand

Land area: 513 thou sq km

Population: 65.3 M

GDP per capita: US$2,727

Cambodia

Land area: 181 thou sq km

Population: 13.8 M

GDP per capita: US$393

Myanmar

Land area: 677 thou sq km

Population: 54.8 M

GDP per capita: US$255

People’s Republic of China

Land area: 633 thou sq km

Population: 93.8 M

GDP per capita: US$1,032

(figures for Yunnan and

Guangxi only)

Viet Nam

Land area: 332 thou sq km

Population: 83.1 M

GDP per capita: US$622

Lao PDR

Land area: 237 thou sq km

Population: 5.6 M

GDP per capita: US$491

The GMS in 2005

Land area: 2.6 M sq km

Population: 316 M

GDP per capita: US$1,102

The Greater Mekong Sub Region (GMS)

CAMBODIA PROFILE Land area : 181,035 sq.km.

Population: 14.720 Million

Labor force (young) : 7,053,398 (Female: 3,608,345)

Population growth rate : 1.54%

GDP (2011) : 6%

GDP per capita in 2011 : $812

Inflation (2011) : 5.5%

Exchange rate: USD 1= 4053 Riels

Economic Performance

Source: SNEC & MEF

Average growth for last 5 years is 10.3%

2002 2003 2004 2005 2006 2007 2008 2009 2010

GDP per capita 331 356 402 468 534 623 738 731 830

Cambodia Population Pyramid for 2010 Predicted age and sex distribution for the year 2010

Population Year 2008 2009 2010e 2011e

Population 13,957 14,206 14,454 14,702

Unit : million

(%) 2010 2011e

GDP Growth 6.5% 7.2%

Inflation 3.6% 8.3%

Minimum wage in Cambodia

$45.62 – $50.69 / month

Source : Cambodia Outlook 2010

Cambodia: Inbound Tourism 2009 by Months

Reasons to invest in Cambodia Close to Thailand similar language and culture Open economy Competitive Investment Incentives One Stop Service – Fast-Track Investment Approval Process (28 days) Low Labor Cost Strategic Location Preferential Trading Status: MSN & GSP ( Most Favors Nation Treatment MSN; Generalized System Preferences) Access to ASEAN and World Markets

1. Hat Lek, Thailand/Koh Kong, Cambodia:(Cham Yeam Checkpoint) (Most direct access to Sihanoukville)

2. Chong Jom, Thailand/O'Smach, Oddar Meanchey, Cambodia 3. Chong Sa Ngam, Thailand/Anlong Veng, Oddar Meanchey 4. Ban Pakard, Chantaburi, Thailand/Phsar Prom Pailin, Cambodia (Prom

Checkpoint) 5. Ban Laem, Chantaburi, Thailand/Daung Lem, Battambang, Cambodia

(Daung Checkpoint)

Rail Link in South East Asia

Southern Line Phnom Penh-Sihanoukville Port

264km

Southern Line Phnom Penh-Sihanoukville

Port 264km

AH Routes in Thailand

• AH1: Aranyaprathet-Hin Kong-Bang pa –in (-Bangkok)-Mae Sot: 701 Km

• AH2: Sa Dao-Hat Yai-Bangkok-Chiang Rai- Tachilek: 1,913 Km

• AH3: Chiang Kong -Chaing Rai: 117 Km

• AH12:Nong Lhai-Udon Thani-Nakhon Ratchasima-Hin Kong: 511 Km

• AH13: Nakhon Sawan-Phitsanulok-Huai Kon : 557 Km

• AH15: Nakho Phanom-Udon Thani : 243 Km

• AH16: Tak- Khon Kaen-Mukhdahan: 689 Km

• AH18: Hat Yai-Sungai Kolok: 268 Km

• AH19: Bangkok-Laem Chabang-Kabin Buri – Nakhon Ratchasima: 458 Km

• AH112: Klong Loy-Bang Saphan: 29 Km

• AH121: Mukdaharn-Yasothon-Buriram – Sakaeo: 421 Km

• AH123: BongTi-Kanchanaburi-Nakhon Pathom-Bangkok-Chonburi-Laem Chabang-Maptaput-Rayong-Trat-Hat Lek: 574 Km

• Total: 6,693 km

Source : DTN Thailand

Investment Incentives 20% Corporate Tax

Tax holidays: Trigger period +3years+n; 6y <TH<9y

Full Import Duty Exemption

Repatriation of profit (withholding tax)

Reinvestment of earning (special depreciation)

Investment Protection

The Investment Law and Sub-decree contains a number of important guarantees for the investors:

Equal treatment of all investors No requirement of local equity participation No price controls on products or services No restriction on forex convertibility Free remittance of foreign currencies abroad

Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other

countries

1. Australia 2. Austria 3. China 4. Croatia 5. Cuba 6. Czech 7. France 8. Germany 9. Indonesia 10. Japan 11. Kuwait 12. Lao PDR

13. Malaysia 14. Netherlands 15. N. Korea 16. OPEC 17. Pakistan 18. Philippine 19. ROK 20. Singapore 21. Switzerland 22. Thailand 23. USA (OPIC) 24. Vietnam

Encouraged Investment Activities

Agriculture and agro-industry Transport and telecommunications Energy and electricity Labor-intensive industries, processing and manufacturing; Tourism Human resource development Oil & Gas, Mining

Approved Investments by Country/Region (1994- Nov 2011)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000 C

hina

Hon

g K

ong

Taiw

an EU

Mal

aysi

a

USA

Kor

ea

Sing

apor

e

Thai

land

Japa

n

Vie

tnam

8,849

346823

3,625

2,609

1,282

4,016

636 746251 812

Approved Investments by Sector 1994 – Nov 2011

Invest in Cambodia and you have 590 million consumers at your doorstep

What should we aware of investing in

Cambodia?

1. How to choose the partner ? 2. Law and Regulation 3. Information 4. Implementation of ASEAN FTA 5. Exchange Rate and Inflation 6. Government Services Tariff

Useful link

http://www.investincambodia.com http:// www.ccb.com.kh http:// www.tbcccambodia.org http://www.asean.org http://www.affalog.net http://www.adb.org/GMS/Cross-Border/about.asp http://www.adb.org/GMS/Economic-Corridors http://www.eastasiawatch.in.th http://upload.wikimedia.org/wikipedia/commons/2/21/Asian_Highways.png http://www.unescap.org/ttdw/FFmeeting/FFForum_2010/7.pdf http://info.worldbank.org/etools/tradesurvey/mode1b.asp#moreinfo http://www.nesdb.go.th

THANK YOU SO MUCH

FOR YOUR ATTENTION

Arranged by Mrs. Tui Pakarat-Rutten The President of TBCC H/P: +66 81 839 2452

E-mail: manager@intra-mekong.com