Investment in Cambodia: LIM Visal

Download as pdf or txt
Download as pdf or txt
You are on page 1of 18

Investment in Cambodia

By

LIM Visal
Deputy Director of Public Relations and Promotion of Private Investment
Cambodian Investment Board
Council for the Development of Cambodia

August 16th, 2017


Bangkok, Thailand
TABLE
TABLEOF
OFCONTENTS
CONTENTS

1. Key Economic Indicators

2. Investment Environment in Cambodia

3. Past Investments in Cambodia

4. Reasons to Invest in Cambodia

2
1. Key Economic Indicators

3
1. Key Economic Indicators
GDP Growth (2004-2016)
16%
13.3%
14%
12% 10.8%
10.0% 10.2%
10%
7.1% 7.3% 7.4%
8% 6.7% 7.1% 7.0% 7.0%
5.9%
6%
4%
2% 0.1%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e

Agriculture Industry Service GDP Growth

Population & Labor Force GDP Per Capita (2004-2016)


1138 1215 1300
Population: 15 Million 1500
830 909 990 1036
1000 623 738 731
Literacy: 92.7% (15-24 years old) Lao PDR
402 468 534
500
Young and dynamic labor force: 0
Median age 24 years old Land area :
 Population growth rate : 1.54%
181,035 sq.km.
Low & Manageable Inflation Stable Exchange Rate (USD-Riel)
5.0% 4080
3.9% 4062
4.0% 3.0% 3.1% 4060 4050
2.9%
3.0% 4034 4039
4040 4025
2.0% 1.2%
1.0% 4020
0.0% 4000 4
2012 2013 2014 2015 2016e 2012 2013 2014 2015 2016e
2. Investment Environment in Cambodia
2.1. Council for the Development of Cambodia (CDC)

OPEN DOOR POLICY

ONE STOP SERVICE


Aftercare Service
Customer Approach
Liberal Investment Regime 6
2.2. Investment Incentives and Guarantee

Investment Incentives Investment Guarantee


 Corporate Tax: 20% No discrimination
 Tax holidays: 0% up to 9 No nationalization
years  No requirements of local equity
participation
or
 No price controls on products or
 Special Depreciation
services
 Full Import Duty  No restriction on foreign
Exemption exchanges
No capital control

7
តំបន់Special
2.3. Cambodia’s សេដ្ឋកិច្Economic
ច ពិសេេសៅកម្ព ុជា
Zones

•Poi Pet O'Neang SEZ


•Sanco Poi Pet SEZ

Neang Kok Koh


Kong SEZ

Phnom Penh
SEZ

Kerry Worldbridge SEZ


•Manhattan Svay Rieng SEZ
•Tai Seng Bavet SEZ
•Dragon King Bavet SEZ
•Sihanoukville SEZ •Shandong Sunshell Svay Rieng SEZ
•Sihanoukville Port SEZ •Hi-Park SEZ
•Sihanoukville SEZ 1
•H.K.T SEZ
8
Kampot SEZ
2.4. Qualified Investment Projects (QIP)

Annex 1 of Sub-decree 111 (aka. Negative List):


• Section 1: Investment Activities Prohibited by Laws:
• Section 2: Investment Activities Not Eligible for Incentives:
01. All kinds of commercial activities, wholesales, retails …..;
14. Production of garments, textiles, footwear, hats, with investment capital
less than USD 500,000;
21. Production of electrical and electronic appliances and office materials with
investment capital less than USD 300,000;
40. Agricultural Production:
40.1 Paddy < 1,000 ha
40.2 Cash Crops <500 ha
40.3 Vegetable <5 ha
• Section 3: Investment Activities Eligible for Customs Duties
Exemption but not Profit Tax Exemption:
9
2.5. Flow Chart of Investment Application

Investment Application

Conditional Registration Certificate (3 working days)


or Letter of Refusal
One-Stop Meeting (Skip this step for garments & footwear)
Final Registration Certificate
+ relevant permits /registrations
(ex. Certificates of Incorporation, Tax Registration ….)

10
2.6. Checklist of Investment Application

1. Application Form

2. Company Statute

3. Feasibility Study

4. If shareholder is juridical person:

• Power of Attorney

• Statute of Parent Companies

5. Copy of Passport or ID Card

6. Letter of Indemnification (foreign shareholders)

7. Photo of Shareholders

8. Documents showing location and right to use (title, rental contract …)

9. Certificate of Deposit of 25% of registered capital from commercial banks


11
2.7. Time and Fee of Application

Prakas 992 dated 28/12/2012 by MEF and CDC:


Service Fee Time
Item
(Riel) (working day)

New Investment Project 15,000,000 28

Site Inspection of New Project


• < 100 km 6,000,000
• 101 – 200 km 8,000,000
• > 200 km 10,000,000

Duty Free Exemption Permit 4,000,000 15

………..

12
3. Past Investments in Cambodia
3.1. Investments by Country
Year 2012 2013 2014 2015 2016

Total $2.9 Billion $4.9 Billion $3.9 Billion $4.6 Billion $3.6 Billion
Rank Country % Country % Country % Country % Country %

1 Cambodia 42.08 Cambodia 66.80 Cambodia 64.00 Cambodia 69.28 China 29,92

2 China 20.69 China 15.68 China 24.44 China 18.62 Cambodia 27,55

3 Korea 9.89 Vietnam 6.10 Malaysia 2.18 UK 3.0 Japan 22,78

4 Japan 9.15 Thailand 4.37 Japan 1.72 Singapore 2.18 Thailand 4,61

5 Malaysia 6.04 Korea 1.76 Korea 1.66 Vietnam 1.92 Korea 4,59

6 Thailand 4.53 Japan 1.59 Vietnam 1.26 Malaysia 1.61 US 3,38

7 Vietnam 2.89 Malaysia 1.04 UK 1.13 Japan 1.28 Singapore 3,38

8 Singapore 2.59 Singapore 1.03 Singapore 0.89 Thailand 1.18 Vietnam 2,45

9 U.K 0.51 UK 0.43 Thailand 0.88 Korea 0.21 UK 0,60

10 U.S.A 0.42 France 0.27 Australia 0.51 Canada 0.19 Others 1,09

11 Others 1.21 Others 0.94 Others 1.36 Others 0.52


3.2. Investments by Sector
Agriculture
1%
Tourism Industries Agriculture
15% 4% 13%

Tourism
39%

Industries
33%
Infrastructure
80% Agriculture Infrastruc-
10% ture
15%

Industries
2008
Tourism
43%
18% 2016

Infrastructure
29%

1994-2016
4. Reasons to Invest in Cambodia

Open economy Competitive labor force


 Equal treatment of all investors  Reasonable wage: (minimum wage in 2017: $153)
 No requirement of local equity participation  Young and dynamic labor force (median age 24
 No price controls on products or services
 No restriction on foreign currencies convertibility years old)
Sound macroeconomic environment Strategic location
 6th fastest growing economy in the world during  Center of ASEAN and Mekong sub-region
the last two decades (average growth rate: 7.7%)
 Low & manageable inflation rate (under 5%)
 Stable exchange rate (USD 1 = 4000  5%) Market access and Preferential trading status
 ASEAN Market (AEC)
Competitive investment incentives  ASEAN + China, Japan, Korea, India, Australia &
 Low corporate tax: 20%
 Tax holiday: 0% up to 9 years New Zealand (RCEP)
 Full import duty exemption (production equipment  EU (EBA)
and machineries, contraction material, production  GSP: 32countries
inputs)  MFN: WTO members
One stop service
 Information & Application
 Fast-Track Investment Approval Process: all EU
documents will be processed within only 28 (EBA)
working days.
 Customs Duty & Tax Exemption
 Visa & Work Permit 16
Strategic Location

Kunming Southern China


Myanmar
Hanoi

Yangon
Laos
o Vientiane
Vietnam
Thailand
Manila
Bangkok
.
CAMBODIA The Philippines
Phnom Penh

Brunei
Kuala Lumpur Begawan

Malaysia
Singapore
Jakarta

Indonesia

17
Thank you

ขอบคุณครับ

For more information: lvisal@yahoo.com

18

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy