001-h.e. suon sitthy- council for development of cambodia

8/6/2019 001-H.E. Suon Sitthy- Council for Development of Cambodia

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Wh invest

Presented by: SUON SITTHY

Secretary General

Cambodian Investment Board

in Cambodia?


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Cambodia

Land area : 181,035 sq.km.

Population: 13.4 Million (2008)

Population growth rate : 1.54%

Stable political environment: elections every 5 years

Why Do Business in Cambodia? Cambodian Investment Board 2

GDP growth : 10.3% per annum last 5 years

GDP per capita : $739

Exchange rate : US$ 1 = Riels 4,136 Inflation rate : 5% per annum last 5 years

Why invest in Cambodia? Cambodian Investment Board 2


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10 Reasons to Invest in Cambodia

1. Political Stability

2. Macroeconomic Stability

3. Pro-business Government4. Competitive Investment Incentives

5. One-Sto Service Investment Promotion A enc


6. Access to World Market

7. Investment Protection

8. Efficient Infrastructure and Strategic Location9. Sound Financial Sector

10. Abundant Resources, Labor, Land



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Political Stability

Free and Fair Elections Every 5 Years: Senate : 2006

Commune Council : 2007

National Assembly : 2008

Provincial and District Council : 2009


Majority

Decentralization and Deconcentration Policy under

National Level



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Macroeconomic Stability

GDP Growth (%)

9.2%

12.6%

10.3%

13.3%

10.8%10.2%

10%

12%

14%


4.1%

6.5%

5.3%5.7%

5.0%

.

5.5%

6.2%

.

6.7%

2.1%

0%

2%

4%

6%

8%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2 009E

Why invest in Cambodia? Cambodian Investment Board 5Source: MEF


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468

534

623

739

500

600

700

800

GDP Per Capita (US$)


228247

297 295281

253

282 290312

331356

402

0

100

200

300

400

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



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2,7472 640

2,991

3,774 3,775 3,910 3,900 3,935

3,980 4,0314,116 4,046 4,000

4,136

3,000

3,500

4,000

4,500

Stable Exchange Rate (US$/Riel)


,2,467

0

500

1,000

1,500

2,000

2,500

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



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41.0%

25%

30%

35%

40%

45%

Low Inflation (end of period)


17.9%

3.5%

7.1% 8.1%

14.7%

4.0%

-0.8% -0.9%

3.7%

0.5%

5.6%6.7%

2.8%

10.8%

7.5%

4.5%

-5%

0%

5%

10%

15%

20%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009



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1,616

2,044

2,000

2,500

Foreign Reserves (US$ Million)


234 262390 422

484548

663737

809915

1,097

0

500

1,000

,

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



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Pro-business Government

Government and Private Sector Forum (twice a year)

Government and Private Sector Working Groups

(monthly) Private Sector is an Engine of Economic Growth

Rectangular strategy highlights the importance of


pr va e sec or as eng ne or grow 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)



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Corporate Tax - 20%

Tax Holiday Up to 9 Years

Special Depreciation Full Import and Export Duty Exemption

No Discrimination

Competitive Investment Incentives


o at ona zat on 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 RenewableWhy invest in Cambodia? Cambodian Investment Board 11


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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



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Access to World Market

Access to The U.S. Market in 1996

Access to The E.U. Market in 1996

Member of Association of South-East Asian Nations


Member of the World Trade Organisation (WTO) in

2004

Member of Various Regional Trade Agreements



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MFN/GSP Market Access

Australia

Austria

Belarus Belgium

Bulgaria

Poland

Portugal

ROK Russian

Federation

Slovakia

France

Germany

Hungary

Ireland

Italy

Korea


China

CzechRepublic

Denmark Finland

Spain Sweden

Switzerland

UK USA

Luxemburg Japan

Netherlands

New Zealand

Norway

.and the ASEAN Integration Systemof Preferences (AISP) from the ASEAN 6

MFN: Most Favored Nation

GSP: Generalized System

of PreferencesWhy invest in Cambodia? Cambodian Investment Board 14


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Investment Protection Agreements

Australia

China P.R

Croatia Cuba

Czech

In Process :

Algeria

Bulgaria Egypt

Lybya

Lao PDR

Malaysia

Netherlands OPEC

OPIC

Pakistan


Republic

DPR of Korea

Germany

France

Indonesia

Japan

Kuwait

yanmar

Qatar

Russia

Ukraine

UK

USA

Hungary

Malta

Philippines ROK

Singapore

Switzerland

Thailand

Vietnam



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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 PlantsWhy invest in Cambodia? Cambodian Investment Board 16


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Efficient Infrastructure/Strategic Location

.

Phnom Penh The Philippines

MyanmarSouthern China

ManilaBangkok

Kunming

YangonHanoi

Laoso Vientiane

CAMBODIA

Thailand

Vietnam

Why Do Business in Cambodia? Cambodian Investment Board 17Old Jetty17

Singapore

Indonesia

Brunei

Jakarta

Begawan

Malaysia

Kuala Lumpur

17

Strategic location

in South-East Asia


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Access to Border Crossings

SamraonSamraonSamraonSamraon

gggg

TbaengTbaengTbaengTbaeng

MeanMeanMeanMean cheycheycheychey

SieSieSieSiemmmmReaReaReaRea

StuengStuengStuengStuengTraengTraengTraengTraeng

BanBanBanBanLungLungLungLung

BattambanBattambanBattambanBattamban

SeriSeriSeriSeriSaophoaSaophoaSaophoaSaophoannnn

To Thailand

NR-48, NR-57, NR-

62,

NR-64, NR-68

6

8

67 62*

5

7

7

8

5

7

Why Do Business in Cambodia? Cambodian Investment Board 18Why invest in Cambodia? Cambodian Investment Board 18

1 Digit Road1 Digit Road1 Digit Road1 Digit Road

2 Digit Road2 Digit Road2 Digit Road2 Digit Road

Access to BorderingAccess to BorderingAccess to BorderingAccess to BorderingCountriesCountriesCountriesCountries

KohKohKohKohKongKongKongKong

SihanoukvilleSihanoukvilleSihanoukvilleSihanoukvilleKapKapKapKap

KampotKampotKampotKampot

SvaySvaySvaySvay

RienRienRienRien

gggg

PreyPreyPreyPreyVengVengVengVeng

KamponKamponKamponKampon

gggg SpeuSpeuSpeuSpeu

KamponKamponKamponKampongggg

ChhnangChhnangChhnangChhnang

KamponKamponKamponKampongggg ChamChamChamCham

KrachehKrachehKrachehKracheh SaenSaenSaenSaenMonouromMonouromMonouromMonourom

KampongKampongKampongKampongThomThomThomThomPursatPursatPursatPursat

PailiPailiPailiPailinnnn

To Viet Nam

NR-21,NR-33,NR-72,

NR-74,NR-78

4

8

3

3

74

2

1

7

2

TaTaTaTaKhmaKhmaKhmaKhma

uuuuTakeTakeTakeTake

oooo

PPPPPPPP

4

1

2*: New Route No.


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Why Do Business in Cambodia? Cambodian Investment Board 19Old Jetty19


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48 Km Missing Link

105km Serei Saophoan-SiemReap

Propose new link

239km Siem Reap-SKun

Propose new link

48Km Sisophon-Poipet

273km Snoul-Strung Treng toLaos Border. Propose new link

Cambodian Railway MapCambodian Railway MapCambodian Railway MapCambodian Railway Map

264km Phnom Penh-SihanoukVille

255km Bat Doeng-Loch Nich

(Vietnam Border). Proposenew link

338Km Phnom Penh-Sisophon

20


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21 SEZs have been approved

4 SEZs are in operation

2 SEZs are bein built

Special Economic Zones


One Special Administration serves as Single

Window for Import/Export Procedures

Good Infrastructure



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Cambodias Special Economic Zones


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.

Phnom PenhThe Philippines

MyanmarSouthern China

ManilaBangkok

Kunming

Yangon

Hanoi

Laoso Vientiane

CAMBODIA

Thailand

Vietnam

1h:30 on average

23

Singapore

Indonesia

Brunei

Jakarta

Begawan

Malaysia

Kuala Lumpur

Invest in Cambodiaand you have 14million customers

Invest in Cambodiaand you have 553million customersat your doorstep 23


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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



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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)

25

Beaches (more than 400km) Monuments/ Heritage Sites

Abundant Land

Low Labor Cost - Dynamic Work Force



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Investment Trends

(1994-1st Half 2009)

10,891

6,000

8,000

10,000

12,000

US$ Million

506

2,243

763 744853

448 218 205 238 251 229

1,050

4,415

2,673

1,223

0

2,000

4,000

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

1stHalfof20

09

26Why invest in Cambodia? Cambodian Investment Board 26

A d I B C


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Approved Investment By Countryand by Sector (1994-1st Half 2009)

6,414

4,000

5,000

6,000

7,000

Tourism

48%

US$ Million Shares by Sector


278643

1,302

2,199

1,272

2,856

420748

148

0

1,000

2,000

3,000

C

h

ina

H

ong

K

ong

Taiw

an

E

U

M

alaysia

U

S

A

K

orea

S

ingapo

re

Thailand

Japan

Service23%

Agriculture

6%

Industry

23%



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Cambodia Investment Opportunities

Agriculture and Agro Industry

Transportation and Telecommunication Sector

Energy Sector

Labor Intensive Industries and Export Oriented


Tourism Sector

Human Resource Development

Processing industry Oil & Gas and Mining



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Contacts

Council for the Development of Cambodia

www.cambodiainvest.gov.kh


[email protected]


001-h.e. suon sitthy- council for development of cambodia

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