WELCOME
TO
BUSINESS MISSION IN CAMBODIA
02 SEPTEMBER 2010
PHNOM PENH
CDC
Presented by: SUON SITTHY
Secretary General
Cambodian Investment Board
Why invest
in Cambodia?
Why Do Business in Cambodia? Cambodian Investment Board 3
Cambodia
Land area : 181,035 .
Population: Million (2008)
Population growth rate : %
Stable political environment: elections every 5 years
Stable macroeconomic environment
GDP growth : % per annum last 5 years
GDP per capita : $739
Exchange rate : US$ 1 = Riels 4,250
Inflation rate : 5% per annum last 5 years
Why invest in Cambodia? Cambodian Investment Board 3
Why Do Business in Cambodia? Cambodian Investment Board 4
10 Reasons to Invest in Cambodia
1. Political Stability
2. Macroeconomic Stability
3. Pro-business Government
4. Competitive Investment Incentives
5. One-Stop Service Investment Promotion Agency
6. Access to World Market
7. Investment Protection
8. Efficient Infrastructure and Strategic Location
9. Sound Financial Sector
10. Abundant Resources, Labor, Land
Why invest in Cambodia? Cambodian Investment Board 4
Why Do Business in Cambodia? Cambodian Investment Board 5
Political Stability
Free and Fair Elections Every 5 Years:
Senate : 2006
Commune Council : 2007
National Assembly : 2008
Provincial and District Council : 2009
Coalition Government Controls more than 2/3
Majority
Decentralization and Deconcentration Policy under
National Level
Why invest in Cambodia? Cambodian Investment Board 5
Why Do Business in Cambodia? Cambodian Investment Board 6
Macroeconomic Stability
GDP Growth (%)
Why invest in Cambodia? Cambodian Investment Board 6Source: MEF
Why Do Business in Cambodia? Cambodian Investment Board 7
Macroeconomic Stability
GDP Per Capita (US$)
Why invest in Cambodia? Cambodian Investment Board 7Source: MEF
Why Do Business in Cambodia? Cambodian Investment Board 8
Macroeconomic Stability
Stable Exchange Rate (US$/Riel)
Why invest in Cambodia? Cambodian Investment Board 8Source: MEF
Why Do Business in Cambodia? Cambodian Investment Board 9
Macroeconomic Stability
Low Inflation (end of period)
Why invest in Cambodia? Cambodian Investment Board 9Source: MEF
Why Do Business in Cambodia? Cambodian Investment Board 10
Macroeconomic Stability
Foreign Reserves (US$ Million)
Why invest in Cambodia? Cambodian Investment Board 10Source: MEF and MOP
Why Do Business in Cambodia? Cambodian Investment Board 11
Pro-business Government
Government and Private Sector Forum (twice a year)
Government and Private Sector Working Groups
(monthly)
Rectangular strategy highlights the importance of
private sector as engine for growth
Easy Access to Government Officials
Prompt response to all inquiries (if deemed appropriate)
Ranked ahead of China, India, Vietnam and Indonesia
for Economic Freedom (Heritage Foundation, index of
economic freedom, 2008)
Sovereign Rating is “B+” by Standard & Poor’s
Why invest in Cambodia? Cambodian Investment Board 11
Why Do Business in Cambodia? Cambodian Investment Board 12
Corporate Tax - 20%
Tax Holiday Up to 9 Years
Special Depreciation
Full Import and Export Duty Exemption
No Discrimination
No Nationalization
No Local Participation Requirement
No Price Control on any products or services
No foreign exchange control or restriction on convertibility
No restriction on capital repatriation
No quantitative trade restrictions
Long Term Lease on Land use and Subject to be Renewable
Competitive Investment Incentives
Why invest in Cambodia? Cambodian Investment Board 12
Why Do Business in Cambodia? Cambodian Investment Board 13
One-Stop Service - CDC/CIB
Information and Application
Evaluation and Approval
Customs Duty and Tax Exemption
Visa and Work Permit
Company Registration
Investor After-Care
Why invest in Cambodia? Cambodian Investment Board 13
Why Do Business in Cambodia? Cambodian Investment Board 14
Access to World Market
Access to The . Market in 1996
Access to The . Market in 1996
Member of Association of South-East Asian Nations
(ASEAN) in 1999
Member of the World Trade Organisation (WTO) in
2004
Member of Various Regional Trade Agreements
Why invest in Cambodia? Cambodian Investment Board 14
Why Do Business in Cambodia? Cambodian Investment Board 15
MFN/GSP Market Access
Australia
Austria
Belarus
Belgium
Bulgaria
Canada
China
Czech
Republic
Denmark
Finland
Poland
Portugal
ROK
Russian
Federation
Slovakia
Spain
Sweden
Switzerland
UK
USA
France
Germany
Hungary
Ireland
Italy
Korea
Luxemburg
Japan
Netherlands
New Zealand
Norway
….and the ASEAN Integration System
of Preferences (AISP) from the ASEAN 6
MFN: Most Favored Nation
GSP: Generalized System
of Preferences
Why invest in Cambodia? Cambodian Investment Board 15
Why Do Business in Cambodia? Cambodian Investment Board 16
Investment Protection Agreements
Australia
China
Croatia
Cuba
Czech
Republic
DPR of Korea
Germany
France
Indonesia
Japan
Kuwait
In Process :
Algeria
Bulgaria
Egypt
Lybya
Myanmar
Qatar
Russia
Ukraine
UK
USA
Hungary
Malta
Lao PDR
Malaysia
Netherlands
OPEC
OPIC
Pakistan
Philippines
ROK
Singapore
Switzerland
Thailand
Vietnam
Why invest in Cambodia? Cambodian Investment Board 16
Why Do Business in Cambodia? Cambodian Investment Board 17
Efficient Infrastructure/Strategic Location
Completed ASEAN Highway Linking Thailand, Cambodia,
Vietnam
Completed ASEAN Highway Linking Cambodia, Lao PDR,
China
Finished/ Upgrading National Road Network
Rehabilitating National Railways as Part of Singapore -
Kunming Rail Link
Upgraded Sihanoukville Port
Upgraded Phnom Penh Port
Upgraded Phnom Penh, Siemreap, and Sihanoukville Airports
Finished Installing Fiber Optic Cable across the Country
Building New Power Plants
Why invest in Cambodia? Cambodian Investment Board 17
Why Do Business in Cambodia? Cambodian Investment Board 18
Efficient Infrastructure/Strategic Location
Old Jetty 18
.
Phnom Penh The Philippines
Singapore
Indonesia
Myanmar
Southern China
Manila
Bangkok
Kunming
Yangon
Brunei
Jakarta
Begawan
HanoiLaos
o Vientiane
CAMBODIA
Malaysia
Kuala Lumpur
Thailand
Vietnam
18
Strategic location
in South-East Asia
Why Do Business in Cambodia? Cambodian Investment Board 19Why invest in Cambodia? Cambodian Investment Board 19
Access to Border Crossings
1 Digit Road
2 Digit Road
Access to Bordering
Countries
Samrao
ng Tbaeng Mean chey
Sie
m
Rea
p
Koh
Kong
Sihanoukvill
e Ka
p
Kampot
Sva
y
Rien
g
Prey
Veng
Kampon
g Speu
Kampon
g
Chhnan
g
Kampon
g Cham
Krache
h
Saen
Monouro
m
Stueng
Traeng
Ban
Lung
Kampon
g Thom
Pursat
Paili
n
Battamba
ng
Seri
Saophoa
n
To Viet Nam
NR-21,NR-33,NR-72,
NR-74,NR-78
To Thailand
NR-48, NR-57, NR-
62,
NR-64, NR-68
6
8
67 62*
5
7
4
8
7
8
3
3
7
4
2
1
7
2
Ta
Khma
uTake
o
PP
4
5
7
1
2
*: New Route No.
Why Do Business in Cambodia? Cambodian Investment Board 20Old Jetty 20
48 Km Missing Link
264km Phnom Penh-Sihanouk
Ville
105km Serei Saophoan-Siem
Reap
Propose new link
239km Siem Reap-
SKun
Propose new link
255km Bat Doeng-Loch Nich
(Vietnam Border). Propose
new link
338Km Phnom Penh-
Sisophon
48Km Sisophon-Poipet
273km Snoul-Strung Treng to
Laos Border. Propose new link
Cambodian Railway Map
21
Why Do Business in Cambodia? Cambodian Investment Board 22
21 SEZs have been approved
4 SEZs are in operation
2 SEZs are being built
One Special Administration serves as Single
Window for Import/Export Procedures
Good Infrastructure
Special Economic Zones
Why invest in Cambodia? Cambodian Investment Board 22
Cambodia’s Special Economic Zones
24
.
Phnom Penh
The Philippines
Singapore
Indonesia
Myanmar
Southern China
Manila
Bangkok
Kunming
Yangon
Brunei
Jakarta
Begawan
Hanoi
Laos
o Vientiane
CAMBODIA
Malaysia
Kuala Lumpur
Thailand
Vietnam
1h:30 on average
Invest in Cambodia
and you have 14
million customers
Invest in Cambodia
and you have 553
million customers
at your doorstep 24
Why Do Business in Cambodia? Cambodian Investment Board 25
Sound Financial Sector
24 Commercial Banks
6 Specialized Banks
18 Micro-Finance Institutions
60 Micro-Finance NGOs
3 Insurance Companies
Capital Market Laws
Financial Leasing Law
Why invest in Cambodia? Cambodian Investment Board 25
26
Abundant Resources, Labor, Land
Oil and Gas
Minerals (bauxite, carbonate rocks, natural gas, gold, iron,
manganese, petroleum, phosphate rock, salt, silica, zircon...)
Great Lake (Tonle Sap)
Beaches (more than 400km)
Monuments/ Heritage Sites
Abundant Land
Low Labor Cost - Dynamic Work Force
Why invest in Cambodia? Cambodian Investment Board 26
Investment Trends
(1994-July 2010)US$ Million
27
Why invest in Cambodia? Cambodian Investment Board 27
Why Do Business in Cambodia? Cambodian Investment Board 28
Approved Investment By Country
and by Sector (1994-July 2010)
US$ Million Shares by Sector
Why invest in Cambodia? Cambodian Investment Board 28
Why Do Business in Cambodia? Cambodian Investment Board 29
Singapore Investment (1994-July 2010)
Why invest in Cambodia? Cambodian Investment Board 29
No. Name of Company Capital
1 Capital Island (Cambodia) Ltd. 1,607,800
2 HLH Agriculture (Cambodia) Ltd 54,191,870
3 Ngo Chew Hong Edible Oil (Cambodia) 2,458,800
4 Dragon River Resources (Cambodia) Ltd 3,196,000
5 E S Garment Co Ltd 2,196,230
6 Koh Russey Resorts Ltd 48,000,000
7 I Apparel Ltd 2,534,602
8 JSM Holdings (Cambodia) Co, ltd 91,156,393
9 Singapore Cartons (Cambodia) Ltd 2,039,630
10 Unigreen Resources Co., Ltd 27,889,800
109 projects, investment project: 618 Million USD
Why Do Business in Cambodia? Cambodian Investment Board 30
Cambodia Investment Opportunities
Agriculture and Agro – Industry
Transportation and Telecommunication Sector
Energy Sector
Labor Intensive Industries and Export Oriented
Industries
Tourism Sector
Human Resource Development
Processing industry
Oil & Gas and Mining
Why invest in Cambodia? Cambodian Investment Board 30
Why Do Business in Cambodia? Cambodian Investment Board 31
Contacts
Why invest in Cambodia? Cambodian Investment Board 31
