![Page 1: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/1.jpg)
A Snapshot of Cambodia’s Trade and Investment Climate
Presented by Mr. Chea Socheat
Department of Europe, Middle East, and AfricaCambodia Ministry of Commerce
Singapore, 09 October 2015
![Page 2: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/2.jpg)
Outline
• Key Indicators of Cambodia’s Economy• Our selling points• Cambodia Investment Promotion and
Protection Infrastructure• Trade Facilitation• Ways forward
![Page 3: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/3.jpg)
Key Indicators
Land area : 181,035 sq.km.
Population: 15.3 Million
Labor force (young) : 7,053,398 (Female: 3,608,345)
Population growth rate : 1.54%
GDP Growth (2014) : 7%
GDP per capita (2014) : $1090
Inflation (2014) : 3.9%
Exchange rate: USD 1= 4000 Riels
![Page 4: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/4.jpg)
Our Selling Points Small and open economy, no tariff and non tariff
barriers Robust growth and political stability Market access to countries in ASEAN, EU, US, and
world markets due to various schemes including preferential treatment
Access to natural resources to cater for investments Open to all sectors for FDIs Competitive Investment Incentives One Stop Service – Fast-Track Investment
Approval Process
![Page 5: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/5.jpg)
Our Selling Points Competitive labor cost Less stringent performance requirementFavorable labour and environmental protection laws and
regulations (foreign workers allowed) 100% foreign equity no limited license in banking sector and
telecommunication no requirement in technology transfer
![Page 6: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/6.jpg)
Cambodia Investment Promotion and Protection Infrastructure
• Amendment to the law of investment (1994) and revised version (2003)
• IDP (2015-2025)• Bilateral Investment Promotion and Protection Agreements• One stop service-CDC for investment projects• Special Economic Zones including Sihanouk Ville • Simplification of administrative procedures• Trouble Shooting Committee- Government Private Sector
Forum (GPSF)• Investment incentives and prohibited investment projects• Investment after care service• International marketing through oversea representatives
![Page 7: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/7.jpg)
Bilateral agreement on the promotion and protection of investments
1. Australia2. Austria3. China4. Croatia5. Cuba6. Czech 7. France 8. Germany9. Indonesia10. Japan11. Kuwait12. Lao PDR
13. Malaysia14. Netherlands15. N. Korea16. OPEC17. Pakistan18. Philippine19. ROK20. Singapore21. Switzerland22. Thailand23. USA (OPIC)24. Vietnam
![Page 8: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/8.jpg)
Investment Protection
No expropriationEqual treatment of all investorsNo requirement of local equity participationNo price controls on products or servicesNo restriction on forex convertibilityFree remittance of foreign currencies abroad
The Investment Law and Sub-decree contains a number of important guarantees for the investors:
![Page 9: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/9.jpg)
OPEN
DO
OR
POLIC
Y
ON
E STOP SERVIC
E
![Page 10: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/10.jpg)
Organizational Structure
![Page 11: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/11.jpg)
Information & ApplicationApprovalCustoms Duty & Tax
ExemptionVisa & Work PermitCompany Registration
A ONE STOP SERVICE
![Page 12: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/12.jpg)
Licensing Authorities
![Page 13: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/13.jpg)
Investment ApprovalInvestment application
CDC issues a Conditional Registration Certificate to the Applicant
Company Registration / Ministry of Commerce
Relevant licenses, as appropriate / Ministry of Mine and Energy
Review and approval of construction plan / local authorities-
Ministry of Land Management, Urban Planning and Construction.
Initial environmental impact assessment / Ministry of Environment
Tax Department Registration / Ministry of Economy and Finance
CDC issues a Final Registration Certificate to the Applicant
3 working days
28 working days
![Page 14: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/14.jpg)
One Stop ServiceSpecial Economic Zone Administration
Company registration and investment license
Export/import permit Work permit and Labor books (both workers
and expatriate) SEZA will provide on site immediate legal
and administrative assistance
![Page 15: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/15.jpg)
Cambodia’s Special Economic Zones
No Activities
Under Construction
Operational Kampot SEZSihanoukvillePort SEZ
Poipet O’Neang SEZ
Sihanoukville SEZ1
Sihanoukville SEZ2
Stung Hao SEZ
S.N.C SEZ
Kompong Som SEZ
Koh Kong SEZ
Souy Chheng SEZ
Oknha MongSEZ
Kiri Sakor Koh Kong SEZ
P (SEZ) I C
Thary Kompong Cham SEZ
GoldFame Pak Shun SEZ
Duong Chhiv SEZ
Phnom Penh SEZ
M D S Thmor DaSEZ
H K T SEZ
KandalSEZ
Dragon King SEZ
![Page 16: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/16.jpg)
Government-Private Sector Forum
![Page 17: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/17.jpg)
Government Private Sector Forum
![Page 18: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/18.jpg)
18
1. World Bank Investment Climate Assessment lists the G-PSF as one of the key factors for the economic success of Cambodia
2. Royal Government of Cambodia uses the G-PSF to propose measures to respond to the crisis – several consultations on-going
3. 2009 Memo from World Bank to RGC recommends using the G-PSF for identification and monitoring of reforms
4. G-PSF is an integral apparatus of the RGC for private sector consultation and engagement of development partners in technical assistance.
5. Review of 31 PPDs worldwide shows G-PSF as among highest performers.
G-PSF a highly successful reform platform
![Page 19: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/19.jpg)
Government-Private Sector Forum
![Page 20: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/20.jpg)
Investment Incentives 20% Corporate Tax
Tax holidays up to 9 years
No tax on export
Full Import Duty Exemption
Reinvestment of earning (special depreciation)
![Page 21: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/21.jpg)
Prohibited InvestmentsProhibited investment projects concern national security, social safety, and national economic necessity. Prohibited projects include:
- Production and processing of psychotropic substances or narcotic substances;
- Production of poisonous chemicals, agriculture pesticides and insecticides, and chemicals prohibited by international agreements and the WHO.
- Processing and production of electrical power from imported waste,
- Exploitation of forest prohibited by the Forestry Law, and- Any other investment activities prohibited by other laws
![Page 22: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/22.jpg)
Encouraged Investment Activities
Agriculture and agro-industryTransport and telecommunications Energy and electricityLabor-intensive industries, processing and
manufacturing;TourismHuman resource developmentOil & Gas, Mining
![Page 23: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/23.jpg)
Investment Opportunities
• Infrastructure: convention center, hotels, flyover, bridge
• Resorts• Logistics• Food processing• Power plant, energy sector• Electronic industry• Sewage plant/recycling plant
![Page 24: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/24.jpg)
Cambodia Ministry of Commerce
![Page 25: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/25.jpg)
Trade Facilitation• Reengineering • Single stop service for C/O application• Online business registration• Automation of Certificate of Origin registration• Self Certification• Online payment through banks• Digital signature and E-stamp• Hotline for trade support services
![Page 26: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/26.jpg)
Ways Forward
• Trade repository with full features• National single window• Branding• Upgrade SMEs• Enhance skilled workforce pool and
productivity• Strengthen the law enforcement on IPR
![Page 27: A snapshot of cambodia trade and investment climate final by chea socheat](https://reader034.vdocuments.mx/reader034/viewer/2022051504/58f13fb81a28abbf138b45c3/html5/thumbnails/27.jpg)
THANK YOU