Investment Presentation

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Investment Presentation Investment Environment and Opportunities in Cambodia presented by SUON SOPHAL Deputy Director Department of Public Relations and Investment Promotion 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 (2011) : 7.1% GDP per capita in 2011 : $909 Inflation (2011) : 5.5% Exchange rate: USD 1= 4075 Riels Economic Performance 14% Average growth for last 5 years is 10.3% 25.00% 12% 20.00% 10% 15.00% 8% 10.00% 6% z 5.00% 4% 0.00% 2% 0% -5.00% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP 9.20% 6.50% 5.30% 5.70% 5.00% 12.60% 9.20% 7.70% 6.20% 8.60% 10.0% 13.3% 10.8% 10.2% 6.70% 0.10% 5.90% 7.10% Infla on 17.90% 3.50% 10% 9.20% 13.30% 4.00% -0.80% 0.20% 3.30% 1.20% 3.90% 5.80% 4.70% 5.9% 19.70% -0.60% 4.00% 5.50% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP per capita 331 356 402 468 534 623 738 731 830 909 Source: SNEC & MEF ONE STOP SERVICE OPEN DOOR POLICY 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. Sok Chenda Sophea 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. An Sophanara Deputy Secretary General CSEZB Deputy Secretary General CRDB Deputy Secretary General CRDB H.E. Mr. Chea Vuthy H.E. Mr. Heng Soknang Deputy Secretary General CIB SEZ ODA GMS National Secretariat FDI Information & Application Approval Customs Duty & Tax Exemption Visa & Work Permit Company 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 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 Qualified Investment Project Approval Investor In Special Economic Zone Outside Special Economic Zone Application for QIP Application for QIP No Application for QIP Cambodia Special Economic Zone Board Cambodia Investment Board Ministry of Commerce (CSEZB) (CIB) •Under US$2 million ; •Over US$50 million ,Natural Resources ; •to Sub-Committee on Investment •to Council of Minister via CDC •of the Provinces-municipalities Conditional Registration Certificate Conditional Registration Certificate (3 working days) (3 working days) SEZ One Stop Service Office Final Registration Certificate Company Registration (28 working days) Construction of Factory Start Production Investment Incentives 20% Corporate Tax Tax holidays: Trigger period +3years+n; 6y <TH<9y Full Import Duty Exemption Repatriation of profit (withholding tax) Reinvestment of earning (special depreciation) Investment Protection The Investment Law and Sub-decree contains a number of important guarantees for the investors: Equal treatment of all investors No requirement of local equity participation No price controls on products or services No restriction on forex convertibility Free remittance of foreign currencies abroad Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries 1. Australia 13. Malaysia 2. Austria 14. Netherlands 3. China 15. N. Korea 4. Croatia 16. OPEC 5. Cuba 17. Pakistan 6. Czech 18. Philippine 7. France 19. ROK 8. Germany 20. Singapore 9. Indonesia 21. Switzerland 10. Japan (14 June 2007) 22. Thailand 11. Kuwait 23. USA (OPIC) 12. Lao PDR 24. Vietnam Investment Opportunity Agriculture and Agro – Industry Transportation and Telecommunication Sector Energy Sector Labor Intensive Industries and Export Oriented Industries Processing Industry Tourism Sector Human Resource Development Oil & Gas, Mining US$ Million US$ Approved Investments by Country/Region Investments Approved (1994 8,849 9,000 - 8,000 2011) 7,000 6,000 5,000 4,040 3,641 4,000 2,614 3,000 2,000 1,282 839 1,200 641 649 746 1,000 154 0 a g n a a e n d A U i m r n n a e n a s S i E a r o o a p y w h l n o p U i i t a K a l a C a K a J e i T a g g h V n n T i M o S H Approved Investments by Sector 1994 – 2011 Korean FDI in Agriculture Service Cambodia 7% 19% -160 projects -4,118 Million $ Industry Tourism 24% 50% Infrastructure: A definite prospect Priority for infrastructure Infrastructure rehabilitation and Logistic development Multilateral aid availability Decentralization Regional opportunities ASEAN & GMS integration Private Participation in Infrastructure (PPI): BOT, BOO, etc… Agro-business Basic agrarian economy Natural endowments: Rich fishery resources Good weather Organic crops Value-added emphasis Food processing New product development Tourism 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 Visitors to Cambodia Thousand (000) Vision 2020: Visitor arrival from 2010 – 2020 YEAR 2010 2011 2015 2020 Visitor Arrivals 2,508,289 2,882,000 3,700,000 6,000,000 Top ten markets arrival from January-May 2012 Vietnam U.S.A Korea Japan China France Lao PDR U.K Thailand Russia Investment Opportunities Phnom Penh o International Convention Center o 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 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 Manufacturing & Export Competitive labor cost Tax incentives Market access Regional arrangement MFN/GSP Market Access Poland Australia France Portugal Austria Germany ROK Belarus Hungary Russian Federation Ireland Belgium Slovakia Italy Spain Bulgaria N-Korea Sweden Canada Luxemburg Switzerland China UK Japan Czech Republic USA Netherlands EBA (everything but Denmark New Zealand arms initiative for LDCs) Finland Norway … and the ASEAN integration System Of Preferences (AISP) from the ASEAN 6 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 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 Percentage of Population by age group Census 2008 The elderly population 4.30% Children (0-14) 33.70% Economically productive age group (15-64) 62% Source: NIS 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 Reasons to invest in Cambodia Open economy Sound Macroeconomic Environment Competitive Investment Incentives One Stop Service – Fast-Track Investment Approval Process (28 days) Low Labor Cost Strategic Location Preferential Trading Status Access to ASEAN and World Markets Kunming Southern China Myanmar Hanoi Laos Yangon o Vientiane Vietnam Thailand Manila Bangkok . CAMBODIA The Philippines Phnom Penh 1h:30 in average Brunei Kuala Lumpur Begawan Malaysia Singapore Jakarta Indonesia InvestInvestInvest inin in CambodiaCambodia Cambodia and and you you and youhavehave have325 14 millionmillion 600 consumers consumers million consumersvirtually at your at doorstep your doorstep Thank you Tel : (855) 23 981 154 For more information please visit: Fax : (855) 23 428 426 Email : [email protected] www.cambodiainvestment.gov.kh .
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