Investment Outlook in Cambodia

TU-ASEAN International Conference 2015August 7, 2015Auditorium, C asean, CyberWorld Tower, Bangkok, Thailand

Neak Samsen, Head of Economic Research, Nuppun Institute for Economic Research, Cambodia

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1. Investment Trends and Prospects in Cambodia

2. Opportunities and Challenges

3. Regulatory Reforms

Content

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Cambodia has become a choice of investment destinations

Source: Cambodian Investment Board

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2010• China

• Malaysia

• Vietnam

• Taiwan

2011• Vietna

m

• Hong Kong

• Malaysia

• South Korea

2012• South

Korea

• China

• Japan

• Thailand

2013• China

• Vietnam

• Hong Kong

• UK

2014• China

• Hong Kong

• UK

• South Korea

Most of top investors are from Asia

Source: Cambodian Investment Board

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Investment are mostly on garment and footwear (by number of project approval)

Garment Agro-industryFootwear

2010 Garme

ntAgro-industryFootwear

2011 Garme

nt

FootwearAgro-industry

2012 Garme

nt

FootwearAgro-industry

2013 Garme

nt

Hotel

Agro-industry

2014

Source: Cambodian Investment Board

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Because

o Rising labor cost in China

o Investors are looking for place to diversify their bases

o Cambodia locates in a very dynamic region

Prospects as an investment destination

look good

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Cambodia in 20302015

15 Millions2030

20 Millions

Source: World Bank’s Input Notes to Cambodia Vision 2030

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Cambodia in 2030

Source: World Bank’s Input Notes to Cambodia Vision 2030

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o High electricity and transport costso Informal payments and burdensome

regulationso Skilled labor

o Vietnam-EU Bilateral Trade Agreemento Industrial zones at borders by Thai

Governmento The rise of Myanmaro Emerging risks of geopolitics

But, key challenges need to be addressed

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o Industrial Development Policy 2015-2025

o Cambodian Investment Law is being revised

o Cambodian Investment Board is the leading and coordinating agency

Recent measures by Cambodian government

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o Lower electricity price by 5% (from $0.172/kWh to $0.164/kWh)

o Transportation and logistics master plan: Aranyaprathet/Poipet-Phnom Penh-Sihanouk Ville-Bavet/Vietnam

o Skilled labor that meets market needs

o Sihanouk Ville as multi-purpose economic zone

Immediate measures by 2018

Poipet

Bavet

Sihanouk Ville

Aranyaprathet

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So, these bring opportunities for investors

Thank you for your attention !