1. Investment Environment and Opportunities in Cambodia
presented by
Mrs. Bun Chamnan
Commercial Attache
To the Royal Embassy of Cambodia,
Based in Nanning, Guangxi, China

2. Key Indicators Land area : 181,035 sq.km. Population: 14.1 Million
Labor force (young) : 7,053,398 (Female: 3,608,345)
Population growth rate : 1.54%
GDP Growth (2012) : 7.3%
GDP per capita in 2012 : $990
Inflation (2011) : 5.5%
Exchange rate: USD 1= 4075 Riels 2

3. COUNCIL FOR THE DEVELOPMENT OF CAMBODIA
OPEN DOOR POLICY
ONE STOP SERVICE
Customer Servicing
Business Friendly

4. Information & Application
Approval
Customs Duty & Tax Exemption
Visa & Work Permit
Company Registration
A ONE STOP SERVICE

5. Investment Approval Investment application 3 working days
CDC issues a Conditional Registration Certificate to the Applicant
3 working days
Company Registration / Ministry of Commerce
Relevant licenses, as appropriate / Ministry of Industry 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
28 working days
CDC issues a Final Registration Certificate to the Applicant

6. Investment Protection
The Investment Law and Sub-decree contain a number of important guarantees for the investors:
Equal treatment of all investors
No requirement of local equity participation
No price controls on products or services
No restriction on forex convertibility
Free remittance of foreign currencies abroad

7. Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries
Australia
Austria
China
Croatia
Cuba
Czech
France
Germany
Indonesia
Japan (14 June 2007)
Kuwait
Lao PDR
Malaysia
Netherlands
N. Korea
OPEC
Pakistan
Philippine
ROK
Singapore
Switzerland
Thailand
USA (OPIC)
Vietnam

8. Approved Investments by Country (1994- July 2012)

9. Approved Investments by Sector 1994 – July 2012

10. Cambodia-China Economic Relation
Cambodia receives Import duty exemption on 418 tariff lines from China
Trade
2011
($US.Billion)
2012
Import from China
1.31
2.7
Export to China
0.18
0.21
Total
1.49
2.91

11. Cambodia-China Economic Relation
Investment
2009
($US.Million)
2010
2011
Chinese FDI inflow
930
694
1,192
Investment Activities
-Garment and Textile
-Hydro power
-Rice-processing facilities
-Agro-Industry
-Mining and Energy

12. Encouraged Investment Activities
Agriculture and agro-industry
Transport and telecommunications
Energy and electricity
Labor-intensive industries, processing and manufacturing;
Tourism
Human resource development
Oil & Gas, Mining

13. Why invest in Cambodia Open economy Sound Macroeconomic Environment
Competitive Investment Incentives
One Stop Service – Fast-Track Investment Approval Process (28 days)
Low Labor Cost
Strategic Location
Preferential Trading Status
Access to ASEAN and World Markets

14. • Macro-economic Stability
Prospects for Sustainable Growth in Cambodia: 4 key-factors to induce Foreign Direct Investments (FDI)
• Political Stability
• Macro-economic Stability
• Sound, Transparent and Predictable Legal Framework
• Access to Key World Markets through Trade Preferences in terms of MFN/GSP

15. • Kingdom of Cambodia (1953-1970)
POLITICAL STABILITY
Cambodia’s contemporary history at a glance: 6 successive political regimes since 1953 Independence from the French Protectorate
• Kingdom of Cambodia ( )
• Khmer Republic ( )
• Democratic Kampuchea ( )
• People’s Republic of Kampuchea ( )
• State of Cambodia ( )
• Cambodia ( ) [under UNTAC]
• Kingdom of Cambodia (1993-today)

16. MACRO-ECONOMIC STABILITY
Surplus for export 4,748,648 Tons of Paddy or 3,039,135 tons of rice

17. Economic Performance Average growth for last 5 years is 10.3% 2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
GDP per capita
331
356
402
468
534
623
738
731
830
909
990
Source: SNEC & MEF

18. A SOUND, TRANSPARENT AND PREDICTABLE LEGAL FRAMEWORK
A receptive Government • Once every 6 months, the Prime Minister, H.E. Samdech HUN SEN, will meet with foreign and local investors in a Government-Private Sector Forum, and will address issues of interest of the private sector. • This mechanism has been institutionalized since Year • In the interval of 2 Government-PS fora, 8 Government- PS Working Groups are meeting on a monthly basis to tackle urgent issues. Only cross-cutting issues are submitted to the Forum chaired by the Prime Minister himself.

19. ACCESS TO WORLD’S MAJOR MARKETS ON A DUTY-FREE AND QUOTA-FREE BASIS
DDA Commitments towards the LDCs
Several developed and transition economies — including some of the major markets for least-developed countries’ exports — granted duty-free and quota-free market access for all or almost all exports from least-developed countries. They include Canada, the EU, New Zealand, Norway and Switzerland. Among the major developing countries, Singapore and Hong Kong, China already offer duty-free and quota-free access on virtually all products, including products from least-developed countries. • Some other developing countries such as Mauritius, Egypt, and the Republic of Korea, have also given least- developed countries preferential duty-free access to their markets, albeit for more limited ranges of products.

20. Countries according MFN/GSP to Cambodia = 0% import duty or reduced import duty for Cambodian exports
 Australia  Austria  Belarus  Belgium  Brazil  Bulgaria  Canada  China  Czech Republic  Denmark  Finland  Norway  Poland  Portugal  ROK  Russian Federation  Slovakia  Spain  Sweden  Switzerland  UK  USA  France  Germany  Hungary

21. Countries according MFN/GSP to Cambodia = 0% import duty or reduced import duty for Cambodian exports
 India  Ireland  Italy  Japan  Korea  Luxemburg  Japan  Netherlands  New Zealand

22. Tourism World Heritage Monuments Open Sky Policy to Siem Reap
Natural beauty - Beach - Islands
Ability to attract “add-on” trips
Novelty value
Ability to attracts “add-on” trips
With massive tourist arrivals from key regional centers, it would be easy to have side trips to Siem Reap, Phnom Penh, and Sihanoukville areas, without having to bring tourists all the way from countries of origin.
Novelty value
In the early years, Cambodia can still benefit from novelty quality, as few people have visited in the past.

23. Tourism Center Poipet Eco-Tourism Sihanoukville Bokor (hill resort)
150 km
Poipet
Eco-Tourism
314km
Gulf of Thailand
230 km
Sihanoukville
Bokor (hill resort)
Beach & Island Resorts

24. Visitors to Cambodia Thousand (000)
Vision 2020: Visitor arrival from 2010 – 2020
YEAR
2010
2011
2015
2020
Visitor Arrivals
2,508,289
2,882,000
3,700,000
6,000,000

25. Top ten markets arrival January-July 2012
Vietnam
Korea
China
Lao PDR
Thailand
U.S.A
Japan
France
U.K
Russia
Chinese Tourist Arrivals
2010
2011
2012 (Jan-May)
Number of Chinese tourists
177,636
247,197
131,969

26. July 19, 2013 marked the 55th anniversary of the establishment of diplomatic relations between Cambodia and China.

27. So maybe, your next trip should be to Cambodia, in Phnom Penh or Siemreap, somewhere near this 7th Wonder of the Ancient World Angkor Wat (Siemreap, Cambodia)

28.
CDC
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