INVESTMENT ENVIRONMENT AND OPPORTUNITIES
IN CAMBODIA
presented by SUON SOPHAL Deputy Director of Public Relations and Investment Promotion Cambodian Investment Board/Council for the Development of Cambodia
Key Indicators
Land area : 181,035 sq.km. Population: 14.1 Million Labor force (young) : 7,053,398
(Female: 3,608,345) Population growth rate : 1.54% GDP Growth (2012e) : 7% GDP per capita (2012e) : $990 Inflation (2012) : 3% Exchange rate: USD 1= 3990 Riels
Economic Performance
Source: SNEC & MEF
Average growth for last 5 years is 10.3%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
GDP per capita 356 402 468 534 623 738 731 830 909 990
OPEN
DO
OR
POLIC
Y
ON
E STOP SERVIC
E
H.E. Mr. Chhieng YanaraMinister attached to the Prime Minister
Secretary General CRDB
H.E. Mr. Keat Chhon, Deputy Prime MinisterMinister of Economy and Finance
1st Vice Chairman
H.E. Mr. Sok Chenda SopheaMinister attached to the Prime Minister
Secretary 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 Vibol Vice Chairman
H.E. Mr. Sok Chenda SopheaMinister attached to the Prime Minister
Secretary General CSEZB
LCT. Heng SokunDeputy 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. Chea VuthyH.E. Mr. An SophanaraH.E. Mr. Heng Soknang
Deputy Secretary General CIB
SEZ ODA FDIGMS National Secretariat
Information & ApplicationApprovalCustoms Duty & Tax ExemptionVisa & Work PermitCompany Registration
A ONE STOP SERVICE
Licensing Authorities
Council of Ministers : CDC but needs approval from CoM for project with investment capital exceeding $ 50 million, BOT, BOOT, BOO or BLT, long-term strategy, sensitive projects: negative impact on the environment and natural resource exploitation
CDC : less than $ 50 million
Provincial Authorities : less than $ 2 million
Investment 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 Incentives
20% Corporate Tax
Tax holidays: Trigger period +3years+n; 6y <TH<9y
Full Import Duty Exemption
Reinvestment of earning (special depreciation)
Investment Protection
Equal treatment of all investorsNo requirement of local equity participationNo price controls on products or servicesNo restriction on forex convertibilityFree remittance of foreign currencies abroad
The Investment Law and Sub-decree contains a number of important guarantees for the investors:
Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries
1. Australia2. Austria3. China4. Croatia5. Cuba6. Czech 7. France 8. Germany9. Indonesia10. Japan11. Kuwait12. Lao PDR
13. Malaysia14. Netherlands15. N. Korea16. OPEC17. Pakistan18. Philippine19. ROK20. Singapore21. Switzerland22. Thailand23. USA (OPIC)24. Vietnam
Encouraged Investment Activities
Agriculture and agro-industryTransport and telecommunications Energy and electricityLabor-intensive industries, processing and
manufacturing;TourismHuman resource developmentOil & Gas, Mining
Approved Investments by Country/Region (Outside SEZ 1994- 2012)
US$ Million
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000 C
hina
Hon
g Ko
ng
Tai
wan
EU
Mal
aysi
a
USA
Kore
a
Sing
apor
e
Thai
land
Japa
n
Vie
tnam
16,270
758 936
3,6852,614
1,289
4,327
731 867 366 1,282
Approved Investments by Sector1994 – 2012
Sector Projects AmountAgriculture 1 2,338,172Industry 39 196,488,601Service 1 21,151,408Total 41 219,978,181
Q1 2013
1994-2012
Investments in Cambodia 2008-Q1 2013No.
2008 2009 2010 2011 2012 Q1 2013$11,420,127183 $6,309,435,594 $3,029,497,634 $7,984,908,645 $2,965,537,652 219,978,181
Country % Country % Country % Country % Country % Country %
1 China 39.45 Cambodia 60.81 Korea 35.10 U.K 30.93 Cambodia 42.08 China 30.65
2 Cambodia 36.73 China 14.93 China 28.73 Cambodia 29.76 China 20.69 UK 14.1
3 Korea 10.89 Vietnam 5.58 Cambodia 14.91 China 22.05 Korea 9.89 Cambodia 13.3
4 USA 5.59 Singapore 4.81 Malaysia 8.53 Vietnam 8.65 Japan 9.15 Korea 12.63
5 Israel 2.63 Russia 3.84 Vietnam 5.23 Malaysia 3.03 Malaysia 6.04 Japan 9.24
6 Russia 0.92 Thailand 3.53 Portugal 1.66 Korea 2.10 Thailand 4.53 Hong Kong 7.30
7 U.K 0.59 Korea 2.89 Australia 1.65 U.S.A 1.78 Vietnam 2.89 Taiwan 6.22
8 Austria 0.54 India 1.90 Singapore 1.02 Japan 0.83 Singapore 2.59 U.S.A 1.76
9 Vietnam 0.51 Malaysia 1.19 Denmark 0.97 Australia 0.31 U.K 0.51 Israel 1.50
10 France 0.50 Japan 0.20 Japan 0.86 Singapore 0.20 U.S.A 0.42 France 1.23
Infrastructure: A definite prospect
Priority for infrastructure Infrastructure rehabilitationMultilateral aid availabilityDecentralizationRegional opportunitiesASEAN & GMS integrationPrivate Participation in
Infrastructure (PPI): BOT, BOO, etc…
Agro-business
Basic agrarian economyNatural endowments:
Rich fishery resources Good weather
Organic cropsValue-added emphasisFood processingNew product development
Tourism
World Heritage Monuments
Open Sky Policy to Siem Reap
Natural beauty - Beach - Islands
Ability to attract “add-on” trips
Novelty value
Eco-Tourism
Tourism CenterPoipet
Sihanoukville
Gulf of Thailand
314km
230 km
150 km
Beach & Island Resorts
Bokor (hill resort)
Visitors to Cambodia
Thousand (000)
Vision 2020: Visitor arrival from 2010 – 2020
YEAR 2010 2012 2015 2020Visitor Arrivals 2,508,289 3,201,981 3,700,000 6,000,000
Top ten markets in 2012
Vietnam
Korea
China
Lao PDR
Thailand
Japan
U.S.A
France
Australia
Malaysia
Investment Opportunities
Phnom Penh o International Convention Centero High-end hotel (Four Seasons, Hyatt, etc…) at the moment there are only
Intercontinental Hotel, Sofitel and Raffles with approximately 500 rooms. Siemreap
o International Convention Centero High-end hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etc…) at the moment
there are only Raffles, Le Meridien, Sofitel, Aman resorts and Orient Express, with approximately 700 rooms.
o Amusement park / recreational activitieso Golf course (there are three existing golf courses)
Sihanoukvilleo High-end hotel (Four Seasons, Hyatt, etc…)o Golf Course
Manufacturing & Export
Competitive labor costTax incentives
Market accessRegional arrangement
MFN/GSP Market Access Australia Austria Belarus Belgium Bulgaria Canada China Czech Republic Denmark Finland
Poland Portugal ROK Russian
Federation Slovakia Spain Sweden Switzerland UK USA EBA (everything
but arms initiative for LDCs)
France Germany Hungary Ireland Italy N-Korea Luxemburg Japan Netherlands New Zealand Norway
… and the ASEAN integration SystemOf Preferences (AISP) from the ASEAN 6
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 Mong SEZ
Kiri Sakor Koh Kong SEZ
P (SEZ) I C
Thary Kompong Cham SEZ
GoldFame Pak Shun SEZ
Duong Chhiv SEZ
Phnom Penh SEZ
M D S Thmor Da SEZ
H K T SEZ
Kandal SEZ
Dragon King SEZ
One Stop Service Special Economic Zone Administration
Company registration and investment license Export/import permit Work permit and Labor books (both workers and
expatriate) SEZA will provide on site immediate legal and
administrative assistance
JOININGWTO
JOININGASEAN
ACCESS TOTHE U.S.MARKET
ACCESS TO THEEUROPEANMARKET
Cambodia has embraced the globalization process as part of its outward looking economic development strategy….
Reasons to invest in Cambodia
Open economySound Macroeconomic EnvironmentCompetitive Investment IncentivesOne Stop Service – Fast-Track Investment Approval
Process (28 days)Low Labor CostStrategic LocationPreferential Trading StatusAccess to ASEAN and World Markets
.
Phnom PenhThe Philippines
Singapore
Indonesia
MyanmarSouthern China
ManilaBangkok
Kunming
Yangon
Brunei
Jakarta
Begawan
Hanoi
Laoso Vientiane
CAMBODIA
Malaysia
Kuala Lumpur
ThailandVietnam
1h:30 in average
Invest in Cambodia and you have 14 million
consumers
Invest in Cambodia and you have 325 million consumers virtually at your doorstep
Invest in Cambodia and you have 600 million
consumers at your doorstep
Thank you very much
More information, please contact: [email protected] or visit: www.cambodiainvestment .gov.kh