INVESTMENT OPPORTUNITIESin Cambodia
presented by
Sok Chenda SopheaMinister attached to the Prime Minister
Secretary General Council for the Development of Cambodia
Key IndicatorsKey Indicators
Land area : 181,035 Land area : 181,035 sq.kmsq.km..
Population: 14.1 Million Population: 14.1 Million
Labor force (young) : 7,053,398 Labor force (young) : 7,053,398 (Female: 3,608,345)(Female: 3,608,345)
Population growth rate : 1.54%Population growth rate : 1.54%
GDP (2010) : 5.9%GDP (2010) : 5.9%
GDP per capita in 2010 : $830GDP per capita in 2010 : $830
Inflation (2010) : 4%Inflation (2010) : 4%
Exchange rate: USD 1= Exchange rate: USD 1= 4062 Riels4062 Riels
JPY 1= 49.67 RielsJPY 1= 49.67 Riels
Economic PerformanceEconomic Performance
Source: SNEC & MEF
Average growth for last 5 years is 10.3%Average growth for last 5 years is 10.3%
20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010
GDP per capita GDP per capita 331331 356356 402402 468468 534534 623623 738738 731731 830830
H.E. Mr. Chhieng YanaraSecretary General CRDB
H.E. Mr. Keat Chhon, Deputy Prime MinisterMinister of Economy and Finance
1st Vice Chairman
H.E. Mr. Suon SitthySecretary General CIB
Trouble Shooting
Committee
Samdech Akka Moha Sena Padei Techo HUN SENPrime Minister of the Kingdom of Cambodia
Chairman
Council for the Development of Cambodia (CDC)
H.E. Mr. Chea VuthyDeputy Secretary General CSEZB
H.E. Mr. Kong VibolSecretary of State of Economy & Finance
Vice Chairman
H.E. Mr. Sok Chenda SopheaMinister attached to the Prime Minister
Secretary General CSEZB
H.E. Mr. Duy ThouvDeputy Secretary General CIB
H.E. Mr. Leap VandenDeputy Secretary General CRDB
H.E. Mr. Sok Chenda SopheaMinister attached to the Prime Minister
Secretary General
H.E. Mr. Cham Prasidh, Senior Minister, Minister of Commerce
2nd Vice Chairman H.E. Mr. Sun Chanthol
Senior Minister in charge of Special Missions Permanent Vice Chairman
H.E. Mr. Rith VuthyDeputy Secretary General CRDB
H.E. Mr. An SophanaraDeputy Secretary General CIB
SEZ ODA FDIGMS National Secretariat
Information & ApplicationInformation & ApplicationApprovalApprovalCustoms Duty & Tax ExemptionCustoms Duty & Tax ExemptionVisa & Work PermitVisa & Work PermitCompany RegistrationCompany Registration
A ONE STOP SERVICE
Licensing AuthoritiesLicensing Authorities
Council of Ministers : CDC but needs approval from Council of Ministers : CDC but needs approval from CoMCoM for project with investment capital exceeding $ 50 for project with investment capital exceeding $ 50 million, BOT, BOOT, BOO or BLT, longmillion, BOT, BOOT, BOO or BLT, long--term strategy, term strategy, sensitive projects: negative impact on the environment sensitive projects: negative impact on the environment and natural resource exploitationand natural resource exploitation
CDC : less than $ 50 millionCDC : less than $ 50 million
Provincial Authorities : less than $ 2 millionProvincial Authorities : less than $ 2 million
Investment ApprovalInvestment Approval
Investment application
CDC issues a Conditional Registration Certificate to the Applicant
Company Registration / Ministry of Commerce
Relevant licenses, as appropriate / Ministry of Industry and Energy
Review and approval of construction plan / local authorities-
Ministry of Land Management, Urban Planning and Construction.
Initial environmental impact assessment / Ministry of Environment
Tax Department Registration / Ministry of Economy and Finance
CDC issues a Final Registration Certificate to the Applicant
3 working days
28 working days
Investment IncentivesInvestment Incentives
20% Corporate Tax 20% Corporate Tax
Tax holidays: Trigger period +3years+n; 6y <TH<9y Tax holidays: Trigger period +3years+n; 6y <TH<9y
Full Import Duty ExemptionFull Import Duty Exemption
Repatriation of profit (withholding tax)Repatriation of profit (withholding tax)
Reinvestment of earning (special depreciation)Reinvestment of earning (special depreciation)
Investment ProtectionInvestment Protection
Equal Treatment of All InvestorsEqual Treatment of All InvestorsNo Requirement of Local Equity ParticipationNo Requirement of Local Equity ParticipationNo Price Controls on Products or ServicesNo Price Controls on Products or ServicesNo Restriction on No Restriction on ForexForex ConvertibilityConvertibilityFree Remittance of Foreign Currencies AbroadFree Remittance of Foreign Currencies Abroad
The Investment Law and SubThe Investment Law and Sub--decree contains a number of decree contains a number of important guarantees for the investorsimportant guarantees for the investors:
Bilateral Agreement on the Promotion and Protection of InvestmenBilateral Agreement on the Promotion and Protection of Investments ts between the Kingdom of Cambodia and Other Countriesbetween the Kingdom of Cambodia and Other Countries
1.1. AustraliaAustralia2.2. AustriaAustria3.3. ChinaChina4.4. CroatiaCroatia5.5. CubaCuba6.6. Czech Czech 7.7. France France 8.8. GermanyGermany9.9. IndonesiaIndonesia10.10. JapanJapan11.11. KuwaitKuwait12.12. Lao PDRLao PDR
13. MalaysiaMalaysia14.14. NetherlandsNetherlands15.15. N. KoreaN. Korea16.16. OPECOPEC17.17. PakistanPakistan18.18. PhilippinesPhilippines19.19. ROKROK20.20. SingaporeSingapore21.21. SwitzerlandSwitzerland22.22. ThailandThailand23.23. USA (OPIC)USA (OPIC)24.24. VietnamVietnam
Encouraged Investment ActivitiesEncouraged Investment Activities
Agriculture and agroAgriculture and agro--industryindustryTransport and telecommunications Transport and telecommunications Energy and electricityEnergy and electricityLaborLabor--intensive industries, intensive industries, processing and processing and manufacturing;manufacturing;TourismTourismHuman resource developmentHuman resource developmentOil & Gas, MiningOil & Gas, Mining
Approved Investments by CountryApproved Investments by Country(1994(1994-- 2010)2010)
US$ Million
Approved Investments by SectorApproved Investments by Sector1994 1994 –– 20102010
Infrastructure: A definite prospect
Priority for infrastructurePriority for infrastructureInfrastructure rehabilitationInfrastructure rehabilitationMultilateral aid availabilityMultilateral aid availabilityDecentralizationDecentralizationRegional opportunitiesRegional opportunitiesASEAN & GMS integrationASEAN & GMS integrationPrivate Participation in Private Participation in Infrastructure (PPI): BOT, BOO, Infrastructure (PPI): BOT, BOO, etcetc……
AgroAgro--businessbusiness
Basic agrarian economyBasic agrarian economyNatural endowments:Natural endowments:
Abundant landAbundant landRich fishery resources Rich fishery resources
Organic cropsOrganic cropsValueValue--added emphasis/ added emphasis/ Food processingFood processingNew product developmentNew product development
TourismTourism
World Heritage MonumentsWorld Heritage Monuments
Open Sky Policy to Open Sky Policy to SiemSiem ReapReap
Natural beauty Natural beauty -- Beach Beach -- IslandsIslands
Ability to attract Ability to attract ““addadd--onon”” tripstrips
Novelty valueNovelty value
Eco-Tourism
Tourism CenterPoipet
Sihanoukville
Gulf of Thailand
314km
230 km
150 km
Beach & Island Resorts
Bokor (hill resort)
Visitors to CambodiaVisitors to Cambodia
Thousand (000)Thousand (000)
Visitor arrival from 2006 Visitor arrival from 2006 -- 20102010
YEARYEAR 20062006 20072007 20082008 20092009 20102010
Visitor ArrivalsVisitor Arrivals 1,770,0411,770,041 2,015,1282,015,128 2,125,4652,125,465 2,161,5772,161,577 2,508,2892,508,289
Japanese arrivalsJapanese arrivals
Year Number of Japanese Visitors Total Visitors Share (%) Rank
2006 158,353 1,770,041 9.31 2nd
2007 161,973 2,015,128 8.04 2nd
2008 163,806 2,125,465 7.71 3rd
2009 146,286 2,161,577 6.77 4th
2010 151,795 2,508,289 6.05 4th
Top ten MarketsTop ten Markets
Vietnam Vietnam
KoreaKorea
ChinaChina
JapanJapan
USAUSA
FranceFrance
UKUK
ThailandThailand
AustraliaAustralia
TaiwanTaiwan
Investment OpportunitiesInvestment Opportunities
Phnom Penh Phnom Penh oo International Convention CenterInternational Convention Centeroo HighHigh--end hotel (Four Seasons, Hyatt, etcend hotel (Four Seasons, Hyatt, etc……) at the moment there are only ) at the moment there are only
Intercontinental Hotel and Raffles with approximately 500 rooms.Intercontinental Hotel and Raffles with approximately 500 rooms.SiemreapSiemreap
oo International Convention CenterInternational Convention Centeroo HighHigh--end hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etcend hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etc……) at the moment ) at the moment
there are only Raffles, Le there are only Raffles, Le MeridienMeridien, , SofitelSofitel, , AmanAman resorts and Orient Express, with resorts and Orient Express, with approximately 700 rooms. approximately 700 rooms.
oo Amusement park / recreational activitiesAmusement park / recreational activitiesoo Golf course (there are three existing golf courses)Golf course (there are three existing golf courses)
SihanoukvilleSihanoukvilleoo HighHigh--end hotel (Four Seasons, Hyatt, etcend hotel (Four Seasons, Hyatt, etc……))oo Golf CourseGolf Course
Manufacturing & ExportManufacturing & Export
Competitive labor costCompetitive labor costTax incentivesTax incentives
Market accessMarket accessRegional arrangementRegional arrangement
Cambodia’s Special Economic Zones
No Activities
Under Construction
Operational Kampot SEZSihanoukville Port SEZ
Poipet O’Neang SEZ
Sihanoukville SEZ1
Sihanoukville SEZ2
Stung Hao SEZ
S.N.C SEZ
Kompong Som SEZ
Koh Kong SEZ
Souy Chheng SEZ
Oknha MongSEZ
Kiri Sakor Koh Kong SEZ
P (SEZ) I C
Thary Kompong Cham SEZ
GoldFame Pak Shun SEZ
Duong Chhiv SEZ
Phnom Penh SEZ
One Stop ServiceOne Stop ServiceSpecial Economic Zone AdministrationSpecial Economic Zone Administration
Company registration and investment license Company registration and investment license Export/import permit Export/import permit Work permit and Labor books (both workers and Work permit and Labor books (both workers and expatriate)expatriate)SEZA will provide on site immediate legal and SEZA will provide on site immediate legal and administrative assistance administrative assistance
JOININGJOININGWTOWTO
JOININGJOININGASEANASEAN
ACCESS TOACCESS TOTHE U.S.THE U.S.MARKETMARKET
ACCESS TO THEACCESS TO THEEUROPEANEUROPEANMARKETMARKET
Cambodia has embraced the globalization process as part of its Cambodia has embraced the globalization process as part of its outward looking economic development strategyoutward looking economic development strategy……..
Reasons to invest in CambodiaReasons to invest in Cambodia
Open economyOpen economySound Macroeconomic EnvironmentSound Macroeconomic EnvironmentCompetitive Investment IncentivesCompetitive Investment IncentivesOne Stop Service One Stop Service –– FastFast--Track Investment Approval Track Investment Approval Process (28 days)Process (28 days)Low Labor CostLow Labor CostStrategic LocationStrategic LocationPreferential Trading StatusPreferential Trading StatusAccess to ASEAN and World MarketsAccess to ASEAN and World Markets
.
Phnom PenhThe Philippines
Singapore
Indonesia
MyanmarSouthern China
ManilaBangkok
Kunming
Yangon
Brunei
Jakarta
Begawan
Hanoi
LaosVientiane
Malaysia
Kuala Lumpur
ThailandVietnam
1h:30 in averageCAMBODIA
Invest in Cambodia and you
have 14 million consumers
Invest in Cambodia and you Invest in Cambodia and you
have 14 million consumershave 14 million consumers
Invest in Cambodia and you
have 325 million consumers
virtually at your doorstep
Invest in Cambodia and you Invest in Cambodia and you
have have 325 million325 million consumers consumers
virtually at your doorstepvirtually at your doorstep
Invest in Cambodia and you have 590 million
consumers at your doorstep
Invest in Cambodia and Invest in Cambodia and you have you have 590 million590 million
consumers at your consumers at your doorstepdoorstep
Thank you Thank you
www.cambodiainvestment.gov.kh
CDC CDC CDC CDC CDC
CDC
CDC
CDC
CDC
CDC
CDC
CDC
CDC
CDCCDCCDCCDC
CDC
CDC
CDC
CDC
CDC
CDC
CDC
CDC
CDC
CDC