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Index Cards by Country CAMBODIA

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Index Cards by Country CAMBODIA Index cards by country CAMBODIA SPECIAL ECONOMIC ZONES Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Cambodia Year of promulgation of the irst text Oicial Terms for Free Zones of law concerning the Free Zones Special Economic Zones 2005 Possibility to be established as Exact number of Free Zones Free Points 14 No TABLE OF CONTENTS General information ........................................................................................................................................................................4 List of operating Free Zones .........................................................................................................................................................6 Contacts ............................................................................................................................................................................................ 13 Free Zones Web sites selection ................................................................................................................................................ 13 2 WFZO Index cards - Cambodia THAILAND LAOS Play Cu 07 Batdambang CAMBODIA 05 08 Phnom Penh 06 13 VIETNAM 12 01 04 Ho Chi Minh City 09 02 11 03 10 Long Xuyen My Tho FREE ZONES IN CAMBODIA 50 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones 01 - Dragon King Bavet SEZ 08 - Sanco Poi Pet SEZ 02 - H.K.T. SEZ Co Ltd. 09 - Sihanoukville SEZ 2 03 - Kampot SEZ Co Ltd. 10 - Sihanoukville SEZ 1 04 - Manhattan SEZ 11 - Sihanoukville Port SEZ 05 - Neang Kok Koh Kong SEZ 12 - Shandong Sunshell Svay Rieng SEZ 06 - Phnom Penh SEZ 13 - Suvannaphum SEZ 07 - Poi Pet O’ Neang SEZ (POSEZ) © Sébastien Piantoni - Conception: François Bost EA 2076 Habiter - University of Reims - 2017 Map Projection: WGS 1984 3 WFZO Index cards - Cambodia GENERAL INFORMATION Oicial deinition of Special Economic Zone: “Regarding the basic concept and conditions for the SEZ, the SEZ Sub-Decree deines as follows (Article 2 and 3.1.3): • SEZ refers to the special area for the development of the economic sectors which brings together all industrial and other related activities and may include General Industrial Zones and/or Export Processing Zones. Each Special Economic Zone shall have a Production Area which may have a Free Trade Area, Service Area, Residen- tial Area and Tourist Area. • It must have a land of more than 50 hectares with precise location and geographic boundaries. • It must have a surrounding fence (for Export Processing Zone, Free Trade Area and the premise of each inves- tor in each zone). • It must have management oice building and Zone Administration oices and all necessary infrastructures must be provided. • It must have water sewage network, waste water treatment network, location for storage and management of solid wastes, environment-protection measures and other related infrastructures as deemed necessary”. “The Special Economic Zone may be established by the State, private enterprise or joint venture between State and private enterprise”. (Article3.1.2, the SEZ Sub-Decree) Source: https://www.jica.go.jp/cambodia/english/oice/topics/pdf/09_chapter5.pdf Number of free 14 Special Economic Zones (SEZs) zones N. of act. comp. In 2016, in total the number of irms operating in the SEZ is 240. in Free Zones Main sectors of Textile industry; footwear, garments, home furnishings, light machinery, luggage and activity bags, light manufacturing, shoes, bicycles, food processing, car and motorcycle assembly, and electrical equipment industries, etc. Total job num- 68.000 in 2015 (95% of production workers employed in the SEZs are women). bers Distribution of China, South Korea, Vietnam, Malaysia and Taiwan, Japan, Australia, etc. investors Exports and No information sales Free zones “The SEZs are still relatively small. Total employment in all of Cambodia’s SEZs is currently contribution to around 68,000. the nat. eco. “The SEZs therefore represent just under 1% of total employment and 3.7% of total se- condary industry employment in Cambodia. By comparison, Cambodia’s garments sector, mostly outside the SEZS reportedly accounts for about 600,000 employees, about 38% of total secondary industry employment, or 10 times the size of all SEZs combined ». “Cambodia’s SEZs are almost entirely privately owned and managed. Outside the SEZs, Cambodia’s manufacturing sector is heavily dominated by garment irms. This is less true inside the SEZs, where the industrial base is more diversiied, including a higher propor- tion of irms producing electronics, electrical products, and household furnishings than are found outside the zones. Industrial diversiication was one of the government’s objec- tives in establishing SEZs and this objective has been met, to a degree”. https://www.adb.org/sites/default/iles/publication/175236/ewp-459.pdf 4 WFZO Index cards - Cambodia Corporate Tax Zone developers : and Incentives • The exemption period for the Tax on Proit shall be provided for a maximum period of 9 years, in compliance with article 14.1 of the Law on the Amendment to the Law on Investment. • The import of equipments and construction materials to be used for infrastructure construction in the zone shall be allowed and exempted of import duties and other taxes. • The Zone Developer shall receive custom duty exemption on the import of machine- ries, equipment for the construction of the road connecting the town to the zone, and other public services infrastructures for the public interests as well as for the interests of the zone. • The Zone Developer may request, under the form of a temporary admission (AT), the import of means of transport and machineries used for the construction of the in- frastructures in accordance with the laws and regulations in force. • The Zone Developer may obtain a land concession from the State for establishing the SEZ in areas along the border or isolated region in accordance with the Land Law, and may lease this land to the Zone Investors. http://www.cambodiainvestment.gov.kh/incentives.html Zone investors: • The same incentives on customs duty and tax as other QIP shall be entitled. • The Zone Investor entitled to the incentive on Value Added Tax (VAT) at the rate of 0% shall record the amount of tax exemption for its every import. The said record shall be disregarded if the Production Outputs are re-exported. In case the Production Outputs are imported into the domestic market, the Zone Investor shall refund the amount of Value Added Tax as recorded in comparison with the quantity of export http://www.cambodiainvestment.gov.kh/incentives.html Common: • Zone developers, investors or foreign employees have the right to transfer all the inco- me derived from the investment and salaries received in the zone to banks located in other countries after payment of tax. • The Zone Developer and the Zone Investor are entitled to obtain the investment gua- rantees as stated in Article 8, Article 9 and Article 10 of the Law on Investment in the Kingdom of Cambodia and other relevant regulations. • Non-discriminatory treatment as foreigners, non-nationalization and no-ixing price. http://www.cambodiainvestment.gov.kh/incentives.html https://www.jica.go.jp/cambodia/english/oice/topics/pdf/09_chapter5.pdf Free Zone law The examination of introducing the concept of economically promoted zone/area into Cambodia was originally started back in 1960’s, and the SEZ scheme has been inally for the irst time in December 2005. “Sub-Decree No.147 on the Organization and Functioning of the CDC” was issued on 29 December 2005 to restructure the organization of the CDC and a new wing of the CDC called the “Cambodian Special Economic Zone Board (CSEZB)” was established to manage the SEZ scheme. To govern the SEZ scheme, “Sub-Decree No. 148 on the Establishment and Management of the Special Economic Zone” (the SEZ Sub-Decree) was issued on 29 December 2005. In addition, the “Law on the Special Econo- mic Zones” has been drafted by the CDC in 2008 and is now under examination of the RGC. http://www.cambodiainvestment.gov.kh/legal-frame-for-the-special-economic-zone-sez-scheme.html Sub-Decree on the Establishment and Management of the Special Economic Zone, Royal Government, No. 148 Ankr.Bk, December 29, 2005. http://www.cambodiainvestment.gov.kh/sub-decree-148-ankr-bk-on-the-establishment-and-manage- ment-of-the-special-economic-zone-inal_060314.html https://www.jica.go.jp/cambodia/english/oice/topics/pdf/17_Appendix-5.pdf 5 WFZO Index cards - Cambodia LIST OF OPERATING FREE ZONES 1 - Dragon King Bavet SEZ Location Road N° 1, Ang Sela Village, Prey Angkunh Surface Area 106,5 ha. [email protected] Contacts Tel.: +855 17786 627 http://www.dragonkingsez.com/ Established in 2012 (Sub-Decree: N° 190, 25 October 2012) Operating zone. Number of Firms operating (2015): 4 Observations Total employment: 280. Dragon King Co., Ltd is a development company established in 1995 (Australian Cambo- dian JV equity group). 2 - H.K.T. SEZ Co Ltd. Location Prek Torl and Terk Tlar Commune, Prey Nub district, Sihanoukville Province Surface Area 345 ha. Prek Torl and Terk Tlar Commune, Prey Nub Contacts District, Sihanoukville Province Established in 2012. Observations Number of Firms operating (2015): 1 Total employment: - 3 - Kampot SEZ Co Ltd. Location Koh Toch commune, Kampot district, Kampot Province. Surface Area 145 ha. Contacts - Established in 2007. Number of Firms
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