INVESTMENT OPPORTUNITIES in Cambodia
presented by
Sok Chenda Sophea Minister attached to the Prime Minister Secretary General Council for the Development of Cambodia KeyKey IndicatorsIndicators
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 (2010) : 5.9% GDP per capita in 2010 : $830 Inflation (2010) : 4% Exchange rate: USD 1= 4062 Riels JPY 1= 49.67 Riels EconomicEconomic PerformancePerformance
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
Source: SNEC & MEF
Council for the Development of Cambodia (CDC)
Samdech Akka Moha Sena Padei Techo HUN SEN Prime Minister of the Kingdom of Cambodia Chairman
H.E. Mr. Keat Chhon, Deputy Prime Minister Minister of Economy and Finance 1st Vice Chairman
Trouble H.E. Mr. Cham Prasidh, Shooting Senior Minister, Minister of Commerce 2nd Vice Chairman Committee H.E. Mr. Sun Chanthol H.E. Mr. Kong Vibol Senior Minister in charge of Special Missions Secretary of State of Economy & Finance Permanent Vice Chairman H.E. Mr. Sok Chenda Sophea Vice Chairman Minister attached to the Prime Minister Secretary General
H.E. Mr. Sok Chenda Sophea H.E. Mr. Chhieng Yanara H.E. Mr. Suon Sitthy Minister attached to the Prime Minister Secretary General CRDB Secretary General CIB Secretary General CSEZB
H.E. Mr. Chea Vuthy H.E. Mr. Leap Vanden H.E. Mr. Rith Vuthy H.E. Mr. Duy Thouv H.E. Mr. An Sophanara Deputy Secretary General CSEZB Deputy Secretary General CRDB Deputy Secretary General CRDB Deputy Secretary General CIB Deputy Secretary General CIB
SEZ ODA GMS National Secretariat FDI InformationInformation && ApplicationApplication ApprovalApproval CustomsCustoms DutyDuty && TaxTax ExemptionExemption VisaVisa && WorkWork PermitPermit CompanyCompany RegistrationRegistration
A ONE STOP SERVICE LicensingLicensing AuthoritiesAuthorities
CouncilCouncil ofof MinistersMinisters :: CDCCDC butbut needsneeds approvalapproval fromfrom CoMCoM forfor projectproject withwith investmentinvestment capitalcapital exceedingexceeding $$ 5050 million,million, BOT,BOT, BOOT,BOOT, BOOBOO oror BLT,BLT, longlong--termterm strategy,strategy, sensitivesensitive projects:projects: negativenegative impactimpact onon thethe environmentenvironment andand naturalnatural resourceresource exploitationexploitation
CDCCDC :: lessless thanthan $$ 5050 millionmillion
ProvincialProvincial AuthoritiesAuthorities :: lessless thanthan $$ 22 millionmillion InvestmentInvestment ApprovalApproval
Investment application
CDC issues a Conditional Registration Certificate to the Applicant 3 working days
Company Registration / Ministry of Commerce
Relevant licenses, as appropriate / Ministry of Industry and Energy
Review and approval of construction plan / local authorities- 28 working Ministry of Land Management, Urban Planning and Construction. days
Initial environmental impact assessment / Ministry of Environment
Tax Department Registration / Ministry of Economy and Finance
CDC issues a Final Registration Certificate to the Applicant InvestmentInvestment IncentivesIncentives
20%20% CorporateCorporate TaxTax
TaxTax holidays:holidays: TriggerTrigger periodperiod +3years+n;+3years+n; 6y6y FullFull ImportImport DutyDuty ExemptionExemption RepatriationRepatriation ofof profprofitit (withholding(withholding tax)tax) ReinvestmentReinvestment ofof earningearning (special(special depreciation)depreciation) InvestmentInvestment ProtectionProtection TheThe InvestmentInvestment LawLaw andand SubSub--decreedecree containscontains aa numbernumber ofof importantimportant guaranteesguarantees forfor thethe investorsinvestors: EqualEqual TreatmentTreatment ofof AllAll InvestorsInvestors NoNo RequirementRequirement ofof LocalLocal EquityEquity ParticipationParticipation NoNo PricePrice ControlsControls onon ProductsProducts oror ServicesServices NoNo RestrictionRestriction onon ForexForex ConvertibilityConvertibility FreeFree RemittanceRemittance ofof ForeForeignign CurrenciesCurrencies AbroadAbroad Bilateral Agreement on the Promotion and Protection of Investments between the Kingdom of Cambodia and Other Countries 1. Australia 13. Malaysia 2. Austria 14. Netherlands 3. China 15. N. Korea 4. Croatia 16. OPEC 5. Cuba 17. Pakistan 6. Czech 18. Philippines 7. France 19. ROK 8. Germany 20. Singapore 9. Indonesia 21. Switzerland 10. Japan 22. Thailand 11. Kuwait 23. USA (OPIC) 12. Lao PDR 24. Vietnam EncouragedEncouraged InvestmentInvestment ActivitiesActivities AgricultureAgriculture andand agroagro--industryindustry TransportTransport andand telecommunicationstelecommunications EnergyEnergy andand electricityelectricity LaborLabor--intensiveintensive industries,industries, processingprocessing andand manufacturing;manufacturing; TourismTourism HumanHuman resourceresource developmentdevelopment OilOil && Gas,Gas, MiningMining ApprovedApproved InvestmentsInvestments byby CountryCountry (1994(1994-- 2010)2010) US$ Million ApprovedApproved InvestmentsInvestments byby SectorSector 19941994 –– 20102010 Infrastructure: A definite prospect PriorityPriority forfor infrastructureinfrastructure InfrastructureInfrastructure rehabilitationrehabilitation MultilateralMultilateral aidaid availabilityavailability DecentralizationDecentralization RegionalRegional opportunitiesopportunities ASEANASEAN && GMSGMS integrationintegration PrivatePrivate ParticipationParticipation inin InfrastructureInfrastructure (PPI):(PPI): BOT,BOT, BOO,BOO, etcetc… AgroAgro--businessbusiness BasicBasic agrarianagrarian economyeconomy NaturalNatural endowments:endowments: Abundant land Rich fishery resources OrganicOrganic cropscrops ValueValue--addedadded emphasis/emphasis/ FoodFood processingprocessing NewNew productproduct developmentdevelopment TourismTourism World Heritage Monuments Open Sky Policy to Siem Reap Natural beauty - Beach - Islands Ability to attract “add-on” trips Novelty value 150 km Tourism Center Poipet Eco-Tourism 314km Gulf of Thailand 230 km Sihanoukville Bokor (hill resort) Beach & Island Resorts VisitorsVisitors toto CambodiaCambodia Thousand (000) Visitor arrival from 2006 - 2010 YEAR 2006 2007 2008 2009 2010 Visitor Arrivals 1,770,041 2,015,128 2,125,465 2,161,577 2,508,289 JapaneseJapanese arrivalsarrivals Number of Year Total Visitors Share (%) Rank Japanese Visitors 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 TopTop tenten MarketsMarkets Vietnam France Korea UK China Thailand Japan Australia USA Taiwan InvestmentInvestment OpportunitiesOpportunities Phnom Penh o International Convention Center o High-end hotel (Four Seasons, Hyatt, etc…) at the moment there are only Intercontinental Hotel and Raffles with approximately 500 rooms. Siemreap o International Convention Center o 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 activities o Golf course (there are three existing golf courses) Sihanoukville o High-end hotel (Four Seasons, Hyatt, etc…) o Golf Course ManufacturingManufacturing && ExportExport CompetitiveCompetitive laborlabor costcost TaxTax incentivesincentives MarketMarket accessaccess RegionalRegional arrangementarrangement Cambodia’s Special Economic Zones Poipet O’Neang SEZ Thary Kompong Cham Koh Kong SEZ Phnom Penh SEZ SEZ Souy Chheng SEZ Oknha Mong P (SEZ) I C SEZ Kiri Sakor Koh Kong SEZ GoldFame Pak Sihanoukville SEZ1 Shun SEZ No Activities Sihanoukville SEZ2 Stung Hao SEZ Under Construction S.N.C SEZ Sihanoukville Port Kampot SEZ Duong Chhiv SEZ Operational Kompong Som SEZ SEZ OneOne StopStop ServiceService SpecialSpecial EconomicEconomic ZoneZone AdministrationAdministration CompanyCompany registrationregistration andand investmentinvestment licenselicense Export/importExport/import permitpermit WorkWork permitpermit andand LaborLabor booksbooks (both(both workersworkers andand expatriate)expatriate) SEZASEZA willwill provideprovide onon ssiteite immediateimmediate legallegal andand administrativeadministrative assistanceassistance Cambodia has embraced the globalization process as part of its outward looking economic development strategy…. ACCESS TO THE EUROPEAN ACCESS TO MARKET THE U.S. MARKET JOINING ASEAN JOINING WTO ReasonsReasons toto investinvest inin CambodiaCambodia OpenOpen economyeconomy SoundSound MacroeconomicMacroeconomic EnvironmentEnvironment CompetitiveCompetitive InvestmentInvestment IncentivesIncentives OneOne StopStop ServiceService –– FastFast--TrackTrack InvestmentInvestment ApprovalApproval ProcessProcess (28(28 days)days) LowLow LaborLabor CostCost StrategicStrategic LocationLocation PreferentialPreferential TradingTrading StatusStatus AccessAccess toto ASEANASEAN andand WorldWorld MarketsMarkets Kunming Southern China Myanmar Hanoi Laos Yangon Vientiane Vietnam Thailand Manila Bangkok . CAMBODIA The Philippines Phnom Penh 1h:30 in average Brunei Kuala Lumpur Begawan Malaysia Singapore Jakarta Indonesia InvestInvestInvestInvestInvestInvestInvest in inininin inin CambodiaCambodiaCambodiaCambodia CambodiaCambodiaCambodia andand andand youyou youyou andandand have 14 million consumers youyouyouhavehavehave havehavehave325325 14 millionmillionmillion 590590590 consumersconsumers consumers millionmillionmillion consumersconsumersconsumersvirtuallyvirtually atat youryour atatat doorstepdoorstep youryouryour doorstepdoorstepdoorstep ThankThank youyou CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC www.cambodiainvestment.gov.kh CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC CDC