Project Development & Facilitation Framework: Opportunities in Trade & Investment for India in CLMV Countries Project Development & Facilitation Framework: Opportunities in Trade & Investment for India in CLMV Countries Project Development and Facilitation Framework: Opportunities in Trade and Investment for India in CLMV Countries April 2015 Page | 1 Project Development & Facilitation Framework: Opportunities in Trade & Investment for India in CLMV Countries TABLE OF CONTENTS BACKGROUND ......................................................................................................................................... 6 EXECUTIVE SUMMARY ............................................................................................................................ 7 A. CLMV: CAMBODIA, LAOS, MYANMAR, VIETNAM ..................................................................... 22 1. An Overview .............................................................................................................................. 22 2. Inherent Strengths of CLMV ...................................................................................................... 23 3. Getting Regionally Integrated ................................................................................................... 24 4. SMEs in CLMV ............................................................................................................................ 25 B. CAMBODIA ................................................................................................................................. 26 1. COUNTRY ANALYSIS ................................................................................................................... 26 1.1. Geography ................................................................................................................................. 26 1.2. Political ...................................................................................................................................... 26 1.3. Macroeconomic Analysis ........................................................................................................... 26 2. TRADE & INVESTMENT .............................................................................................................. 28 2.1. Cambodia’s Merchandise Trade ................................................................................................ 28 2.2. Trade with India ......................................................................................................................... 29 2.3. Foreign Investments .................................................................................................................. 30 2.4. Select Investment Clauses ......................................................................................................... 31 2.5. Special Incentivised Zones ......................................................................................................... 33 2.6. Factors favoring India’s Trade & Investments in Cambodia ...................................................... 35 3. INVESTMENT OPPORTUNITIES .................................................................................................. 36 3.1. Primary Sector ........................................................................................................................... 36 3.2. Secondary Sector ....................................................................................................................... 37 3.3. Tertiary Sector ........................................................................................................................... 39 4. INFRASTRUCTURE OPPORTUNITIES ........................................................................................... 41 4.1. Construction .............................................................................................................................. 41 4.2. Power ……………………………………………………………………………………………………………………………………41 4.3. Railway....................................................................................................................................... 42 4.4. Water ……………………………………………………………………………………………………………………………………42 Page | 2 Project Development & Facilitation Framework: Opportunities in Trade & Investment for India in CLMV Countries 5. ECONOMIC CORRIDORS ............................................................................................................ 42 6. INVESTMENT POLICY ................................................................................................................. 45 6.1. Framework for Investments ...................................................................................................... 45 6.2. Approval Process ....................................................................................................................... 45 6.3. Policies Favourable for Investment ........................................................................................... 45 6.4. Foreign Investment Policy ......................................................................................................... 45 C. LAO PDR ..................................................................................................................................... 46 1. COUNTRY ANALYSIS ................................................................................................................... 46 1.1. Geography ................................................................................................................................. 46 1.2. Political ...................................................................................................................................... 46 1.3. Macroeconomic-analysis ........................................................................................................... 46 2. TRADE & INVESTMENTS ............................................................................................................ 48 2.1. Lao PDR’s Merchandise Trade ................................................................................................... 48 2.2. Trade with India ......................................................................................................................... 49 2.3. Foreign Investments .................................................................................................................. 49 2.4. Select Investment Clauses in Laos PDR ..................................................................................... 51 2.5. Investment Zones ...................................................................................................................... 54 2.6. Factors Favouring India’s Trade & Investment in Lao PDR ........................................................ 55 3. INVESTMENT OPPORTUNITIES .................................................................................................. 56 3.1. Primary Sector ........................................................................................................................... 56 3.2. Secondary Sector ....................................................................................................................... 56 3.3. Tertiary Sector ........................................................................................................................... 57 3.4. Opportunities in Hydro Power .................................................................................................. 57 4. INFRASTRUCTURE OPPORTUNITIES ........................................................................................... 58 4.1 Mining ……………………………………………………………………………………………………………………………………58 4.1. Power Generation ..................................................................................................................... 58 4.2. Power Transmission .................................................................................................................. 58 4.3. Education ................................................................................................................................... 59 4.4. Healthcare ................................................................................................................................. 59 4.4. Tourism ...................................................................................................................................... 59 5 ECONOMIC CORRIDORS ............................................................................................................ 60 D. MYANMAR ................................................................................................................................. 63 1. COUNTRY ANALYSIS ................................................................................................................... 63 1.1. Geography ................................................................................................................................. 63 1.2. Political ...................................................................................................................................... 63 Page | 3 Project Development & Facilitation Framework: Opportunities in Trade & Investment for India in CLMV Countries 1.3. Macroeconomic Analysis ........................................................................................................... 63 2. TRADE & INVESTMENT .............................................................................................................