INVESTMENT OPPORTUNITIES in Cambodia - JICA
INVESTMENT OPPORTUNITIES in Cambodia - JICA
INVESTMENT OPPORTUNITIES in Cambodia - JICA
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<strong>INVESTMENT</strong> <strong>OPPORTUNITIES</strong><br />
<strong>in</strong> <strong>Cambodia</strong><br />
presented by<br />
Sok Chenda Sophea<br />
M<strong>in</strong>ister attached to the Prime M<strong>in</strong>ister<br />
Secretary General<br />
Council for the Development of <strong>Cambodia</strong>
Key Indicators<br />
Land area : 181,035 sq.km.<br />
<br />
Population: 14.1 Million<br />
Labor force (young) : 7,053,398<br />
(Female: 3,608,345)<br />
Population growth rate : 1.54%<br />
GDP (2010) : 5.9%<br />
GDP per capita <strong>in</strong> 2010 : $830<br />
Inflation (2010) : 4%<br />
Exchange rate: USD 1= 4062 Riels<br />
JPY 1= 49.67 Riels
Economic Performance<br />
Average growth for last 5 years is 10.3%<br />
Source: SNEC & MEF<br />
2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
GDP per capita 331 356 402 468 534 623 738 731 830
Council for the Development of <strong>Cambodia</strong> (CDC)<br />
Samdech Akka Moha Sena Padei Techo HUN SEN<br />
Prime M<strong>in</strong>ister of the K<strong>in</strong>gdom of <strong>Cambodia</strong><br />
Chairman<br />
H.E. Mr. Keat Chhon, Deputy Prime M<strong>in</strong>ister<br />
M<strong>in</strong>ister of Economy and F<strong>in</strong>ance<br />
1 st Vice Chairman<br />
Trouble<br />
Shoot<strong>in</strong>g<br />
Committee<br />
H.E. Mr. Sun Chanthol<br />
Senior M<strong>in</strong>ister <strong>in</strong> charge of Special Missions<br />
Permanent Vice Chairman<br />
H.E. Mr. Cham Prasidh,<br />
Senior M<strong>in</strong>ister, M<strong>in</strong>ister of Commerce<br />
2 nd Vice Chairman<br />
H.E. Mr. Sok Chenda Sophea<br />
M<strong>in</strong>ister attached to the Prime M<strong>in</strong>ister<br />
Secretary General<br />
H.E. Mr. Kong Vibol<br />
Secretary of State of Economy & F<strong>in</strong>ance<br />
Vice Chairman<br />
H.E. Mr. Sok Chenda Sophea<br />
M<strong>in</strong>ister attached to the Prime M<strong>in</strong>ister<br />
Secretary General CSEZB<br />
H.E. Mr. Chhieng Yanara<br />
Secretary General CRDB<br />
H.E. Mr. Suon Sitthy<br />
Secretary General CIB<br />
H.E. Mr. Chea Vuthy<br />
Deputy Secretary General CSEZB<br />
H.E. Mr. Leap Vanden<br />
Deputy Secretary General CRDB<br />
H.E. Mr. Rith Vuthy<br />
Deputy Secretary General CRDB<br />
H.E. Mr. Duy Thouv H.E. Mr. An Sophanara<br />
Deputy Secretary General CIB Deputy Secretary General CIB<br />
SEZ ODA GMS National Secretariat FDI
Information & Application<br />
Approval<br />
Customs Duty & Tax Exemption<br />
Visa & Work Permit<br />
Company Registration<br />
A ONE STOP SERVICE
Licens<strong>in</strong>g Authorities<br />
Council of M<strong>in</strong>isters : CDC but needs approval from<br />
CoM for project with <strong>in</strong>vestment capital exceed<strong>in</strong>g $ 50<br />
million, BOT, BOOT, BOO or BLT, long-term strategy,<br />
sensitive projects: negative impact on the environment<br />
and natural resource exploitation<br />
CDC : less than $ 50 million<br />
Prov<strong>in</strong>cial Authorities : less than $ 2 million
Investment Approval<br />
Investment application<br />
CDC issues a Conditional Registration Certificate to the Applicant<br />
3 work<strong>in</strong>g days<br />
<br />
<br />
<br />
<br />
<br />
<br />
Company Registration / M<strong>in</strong>istry of Commerce<br />
Relevant licenses, as appropriate / M<strong>in</strong>istry of Industry and Energy<br />
Review and approval of construction plan / local authorities-<br />
M<strong>in</strong>istry of Land Management, Urban Plann<strong>in</strong>g and Construction.<br />
Initial environmental impact assessment / M<strong>in</strong>istry of Environment<br />
Tax Department Registration / M<strong>in</strong>istry of Economy and F<strong>in</strong>ance<br />
28 work<strong>in</strong>g<br />
days<br />
CDC issues a F<strong>in</strong>al Registration Certificate to the Applicant
Investment Incentives<br />
20% Corporate Tax<br />
Tax holidays: Trigger period +3years+n; 6y
Investment Protection<br />
The Investment Law and Sub-decree conta<strong>in</strong>s a number of<br />
important guarantees for the <strong>in</strong>vestors:<br />
Equal Treatment of All Investors<br />
No Requirement of Local Equity Participation<br />
No Price Controls on Products or Services<br />
No Restriction on Forex Convertibility<br />
Free Remittance of Foreign Currencies Abroad
Bilateral Agreement on the Promotion and Protection of Investments<br />
ts<br />
between the K<strong>in</strong>gdom of <strong>Cambodia</strong> and Other Countries<br />
1. Australia<br />
2. Austria<br />
3. Ch<strong>in</strong>a<br />
4. Croatia<br />
5. Cuba<br />
6. Czech<br />
7. France<br />
8. Germany<br />
9. Indonesia<br />
10. Japan<br />
11. Kuwait<br />
12. Lao PDR<br />
13. Malaysia<br />
14. Netherlands<br />
15. N. Korea<br />
16. OPEC<br />
17. Pakistan<br />
18. Philipp<strong>in</strong>es<br />
19. ROK<br />
20. S<strong>in</strong>gapore<br />
21. Switzerland<br />
22. Thailand<br />
23. USA (OPIC)<br />
24. Vietnam
Encouraged Investment Activities<br />
Agriculture and agro-<strong>in</strong>dustry<br />
Transport and telecommunications<br />
Energy and electricity<br />
Labor-<strong>in</strong>tensive <strong>in</strong>dustries, process<strong>in</strong>g and<br />
manufactur<strong>in</strong>g;<br />
Tourism<br />
Human resource development<br />
Oil & Gas, M<strong>in</strong><strong>in</strong>g
US$ Million<br />
Approved Investments by Country<br />
(1994- 2010)
Approved Investments by Sector<br />
1994 – 2010
Infrastructure: A def<strong>in</strong>ite prospect<br />
Priority for <strong>in</strong>frastructure<br />
Infrastructure rehabilitation<br />
Multilateral aid availability<br />
Decentralization<br />
Regional opportunities<br />
ASEAN & GMS <strong>in</strong>tegration<br />
Private Participation <strong>in</strong><br />
Infrastructure (PPI): BOT, BOO,<br />
etc…
Agro-bus<strong>in</strong>ess<br />
Basic agrarian economy<br />
Natural endowments:<br />
<br />
<br />
Abundant land<br />
Rich fishery resources<br />
Organic crops<br />
Value-added added emphasis/<br />
Food process<strong>in</strong>g<br />
New product development
Tourism<br />
World Heritage Monuments<br />
Open Sky Policy to Siem Reap<br />
Natural beauty - Beach - Islands<br />
Ability to attract “add-on” trips<br />
Novelty value
Poipet<br />
150 km<br />
Tourism Center<br />
Eco-Tourism<br />
314km<br />
Gulf of Thailand<br />
230 km<br />
Sihanoukville<br />
Bokor (hill resort)<br />
Beach & Island Resorts
Visitors to <strong>Cambodia</strong><br />
Thousand (000)<br />
Visitor arrival from 2006 - 2010<br />
YEAR 2006 2007 2008 2009 2010<br />
Visitor Arrivals 1,770,041 2,015,128 2,125,465 2,161,577 2,508,289
Japanese arrivals<br />
Year<br />
Number of<br />
Japanese Visitors<br />
Total Visitors Share (%) Rank<br />
2006 158,353 1,770,041 9.31 2 nd<br />
2007 161,973 2,015,128 8.04 2 nd<br />
2008 163,806 2,125,465 7.71 3 rd<br />
2009 146,286 2,161,577 6.77 4 th<br />
2010 151,795 2,508,289 6.05 4 th
Top ten Markets<br />
Vietnam<br />
Korea<br />
Ch<strong>in</strong>a<br />
Japan<br />
USA<br />
France<br />
UK<br />
Thailand<br />
Australia<br />
Taiwan
Investment Opportunities<br />
<br />
<br />
<br />
Phnom Penh<br />
o International Convention Center<br />
o High-end hotel (Four Seasons, Hyatt, etc…) ) at the moment there are only<br />
Intercont<strong>in</strong>ental Hotel and Raffles with approximately 500 rooms.<br />
Siemreap<br />
o International Convention Center<br />
o High-end hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etc…) ) at the moment<br />
there are only Raffles, Le Meridien, Sofitel, Aman resorts and Orient Express, with<br />
approximately 700 rooms.<br />
o Amusement park / recreational activities<br />
o Golf course (there are three exist<strong>in</strong>g golf courses)<br />
Sihanoukville<br />
o High-end hotel (Four Seasons, Hyatt, etc…)<br />
o Golf Course
Manufactur<strong>in</strong>g & Export<br />
Competitive labor cost<br />
Tax Tax <strong>in</strong>centives<br />
Market Market access<br />
Regional Regional arrangement
<strong>Cambodia</strong>’s Special Economic Zones<br />
Poipet O’Neang SEZ<br />
Koh Kong SEZ<br />
Souy Chheng SEZ<br />
Phnom Penh<br />
SEZ<br />
Thary Kompong Cham<br />
SEZ<br />
Oknha Mong<br />
SEZ<br />
P (SEZ) I C<br />
Kiri Sakor Koh Kong<br />
SEZ<br />
Sihanoukville SEZ1<br />
Sihanoukville SEZ2<br />
Stung Hao SEZ<br />
GoldFame Pak<br />
Shun SEZ<br />
No Activities<br />
Under Construction<br />
S.N.C SEZ<br />
Kompong Som SEZ<br />
Sihanoukville Port<br />
SEZ<br />
Kampot SEZ<br />
Duong Chhiv SEZ<br />
Operational
One Stop Service<br />
Special Economic Zone Adm<strong>in</strong>istration<br />
Company registration and <strong>in</strong>vestment license<br />
Export/import permit<br />
Work permit and Labor books (both workers and<br />
expatriate)<br />
SEZA will provide on site immediate legal and<br />
adm<strong>in</strong>istrative assistance
<strong>Cambodia</strong> has embraced the globalization process as part of its<br />
outward look<strong>in</strong>g economic development strategy….<br />
ACCESS TO<br />
THE U.S.<br />
MARKET<br />
ACCESS TO THE<br />
EUROPEAN<br />
MARKET<br />
JOINING<br />
ASEAN<br />
JOINING<br />
WTO
Reasons to <strong>in</strong>vest <strong>in</strong> <strong>Cambodia</strong><br />
Open economy<br />
Sound Macroeconomic Environment<br />
Competitive Investment Incentives<br />
One Stop Service – Fast-Track Investment Approval<br />
Process (28 days)<br />
Low Labor Cost<br />
Strategic Location<br />
Preferential Trad<strong>in</strong>g Status<br />
Access to ASEAN and World Markets
Myanmar<br />
Hanoi<br />
Kunm<strong>in</strong>g<br />
Southern Ch<strong>in</strong>a<br />
Yangon<br />
Laos<br />
Vientiane<br />
Thailand<br />
Bangkok<br />
Vietnam<br />
Manila<br />
1h:30 <strong>in</strong> average<br />
.<br />
CAMBODIA<br />
Phnom Penh<br />
The Philipp<strong>in</strong>es<br />
Brunei<br />
Kuala Lumpur<br />
Begawan<br />
Malaysia<br />
Jakarta<br />
S<strong>in</strong>gapore<br />
Indonesia
Invest <strong>in</strong> <strong>Cambodia</strong> and<br />
Invest <strong>in</strong> <strong>Cambodia</strong> and you<br />
Invest <strong>in</strong> <strong>Cambodia</strong> and and you<br />
you<br />
you have have 14 million 590 consumers<br />
million<br />
have 325 million consumers<br />
consumers at virtually at your your doorstep<br />
doorstep
Thank you
CDC CDC CDC CDC CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
www.cambodia<strong>in</strong>vestment.gov.kh<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC<br />
CDC
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