1. INVESTMENT ENVIRONMENT AND OPPORTUNITIES IN CAMBODIA presented by SUON SOPHAL Deputy Director of Public Relations and Investment Promotion Cambodian Investment Board/Council for the Development of Cambodia

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 (2012e) : 7%  GDP per capita (2012e) : $990  Inflation (2012) : 3%  Exchange rate: USD 1= 3990 Riels

3. Economic Performance Source: SNEC & MEF Average growth for last 5 years is 10.3% 2003200420052006200720082009201020112012e GDP per capita 356402468534623738731830909990

4. OPEN DOOR POLICY ONE STOP SERVICE

5. H.E. Mr. Chhieng Yanara Minister attached to the Prime Minister Secretary General CRDB H.E. Mr. Keat Chhon, Deputy Prime Minister Minister of Economy and Finance 1 st Vice Chairman H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General CIB Trouble Shooting Committee Samdech Akka Moha Sena Padei Techo HUN SEN Prime Minister of the Kingdom of Cambodia Chairman Council for the Development of Cambodia (CDC) H.E. Mr. Chea Vuthy Deputy Secretary General CSEZB H.E. Mr. Kong Vibol V ice Chairman H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General CSEZB LCT. Heng Sokun Deputy Secretary General CRDB H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General H.E. Mr. Cham Prasidh, Senior Minister, Minister of Commerce 2 nd Vice Chairman H.E. Mr. Sun Chanthol Senior Minister in charge of Special Missions Permanent Vice Chairman H.E. Mr. Rith Vuthy Deputy Secretary General CRDB H.E. Mr. Chea Vuthy H.E. Mr. An Sophanara H.E. Mr. Heng Soknang Deputy Secretary General CIB SEZ ODA FDI GMS National Secretariat

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

7. Licensing Authorities  Council of Ministers : CDC but needs approval from CoM for project with investment capital exceeding $ 50 million, BOT, BOOT, BOO or BLT, long-term strategy, sensitive projects: negative impact on the environment and natural resource exploitation  CDC : less than $ 50 million  Provincial Authorities : less than $ 2 million

8. Investment Approval Investment application CDC issues a Conditional Registration Certificate to the Applicant  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 CDC issues a Final Registration Certificate to the Applicant 3 working days 28 working days

9. Investment Incentives  20% Corporate Tax  Tax holidays: Trigger period +3years+n; 6y <TH<9y  Full Import Duty Exemption  Reinvestment of earning (special depreciation)

10. Investment Protection  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 The Investment Law and Sub-decree contains a number of important guarantees for the investors The Investment Law and Sub-decree contains a number of important guarantees for the investors:

11. Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries 1.Australia 2.Austria 3.China 4.Croatia 5.Cuba 6.Czech 7.France 8.Germany 9.Indonesia 10.Japan 11.Kuwait 12.Lao PDR Malaysia 13. Malaysia 14. Netherlands 15. N. Korea 16. OPEC 17. Pakistan 18. Philippine 19. ROK 20. Singapore 21. Switzerland 22. Thailand 23. USA (OPIC) 24. Vietnam

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. Approved Investments by Country/Region (Outside SEZ 1994- 2012) US$ Million

14. Approved Investments by Sector 1994 – 2012 SectorProjectsAmount Agriculture12,338,172 Industry39196,488,601 Service121,151,408 Total41219,978,181 Q1 2013 1994-2012

15. Investments in Cambodia 2008-Q1 2013 No. 20082009201020112012Q1 2013 $11,420,127183$6,309,435,594$3,029,497,634$7,984,908,645$2,965,537,652219,978,181 Country% % % % % % 1China39.45Cambodia60.81Korea35.10U.K30.93Cambodia42.08 China30.65 2Cambodia36.73China14.93China28.73Cambodia29.76China20.69 UK14.1 3Korea10.89Vietnam5.58Cambodia14.91China22.05Korea9.89 Cambodia13.3 4USA5.59Singapore4.81Malaysia8.53Vietnam8.65Japan9.15 Korea12.63 5Israel2.63Russia3.84Vietnam5.23Malaysia3.03Malaysia6.04 Japan9.24 6Russia0.92Thailand3.53Portugal1.66Korea2.10Thailand4.53 Hong Kong7.30 7U.K0.59Korea2.89Australia1.65U.S.A1.78Vietnam2.89 Taiwan6.22 8Austria0.54India1.90Singapore1.02Japan0.83Singapore2.59 U.S.A1.76 9Vietnam0.51Malaysia1.19Denmark0.97Australia0.31U.K0.51 Israel1.50 10France0.50Japan0.20Japan0.86Singapore0.20U.S.A0.42 France1.23

16. Infrastructure: A definite prospect  Priority for infrastructure  Infrastructure rehabilitation  Multilateral aid availability  Decentralization  Regional opportunities  ASEAN & GMS integration  Private Participation in Infrastructure (PPI): BOT, BOO, etc …

17. Agro-business  Basic agrarian economy  Natural endowments:  Rich fishery resources  Good weather  Organic crops  Value-added emphasis  Food processing  New product development

18. Tourism  World Heritage Monuments  Open Sky Policy to Siem Reap  Natural beauty - Beach - Islands  Ability to attract “add-on” trips  Novelty value

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

20. Visitors to Cambodia Thousand (000) Vision 2020: Visitor arrival from 2010 – 2020 YEAR2010201220152020 Visitor Arrivals 2,508,2893,201,9813,700,0006,000,000

21. Top ten markets in 2012  Vietnam  Korea  China  Lao PDR  Thailand   Japan  U.S.A  France  Australia  Malaysia

22. Investment Opportunities  Phnom Penh o International Convention Center o High-end hotel (Four Seasons, Hyatt, etc…) at the moment there are only Intercontinental Hotel, Sofitel and Raffles with approximately 500 rooms.  Siemreap o International Convention Center o High-end hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etc…) at the moment there are only Raffles, Le Meridien, Sofitel, Aman resorts and Orient Express, with approximately 700 rooms. o Amusement park / recreational activities o Golf course (there are three existing golf courses)  Sihanoukville o High-end hotel (Four Seasons, Hyatt, etc…) o Golf Course

23. Manufacturing & Export  Competitive labor cost  Tax incentives  Market access  Regional arrangement

24. MFN/GSP Market Access  Australia  Austria  Belarus  Belgium  Bulgaria  Canada  China  Czech Republic  Denmark  Finland  Poland  Portugal   ROK  Russian Federation  Slovakia  Spain  Sweden  Switzerland  UK  USA  EBA (everything but arms initiative for LDCs)  France  Germany  Hungary  Ireland  Italy  N-Korea  Luxemburg  Japan  Netherlands  New Zealand  Norway … and the ASEAN integration System Of Preferences (AISP) from the ASEAN 6

25. Cambodia’s Special Economic Zones No Activities Under Construction Operational Kampot SEZ Sihanoukville Port 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 Mong SEZ 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 Da SEZ H K T SEZ Kandal SEZ Dragon King SEZ

26. One Stop Service Special 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

27. JOININGWTO JOININGASEAN ACCESS TO THE U.S. MARKET ACCESS TO THE EUROPEANMARKET Cambodia has embraced the globalization process as part of its outward looking economic development strategy ….

28. Reasons to 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

29. . Phnom Penh The Philippines Singapore Indonesia Myanmar Southern China Manila Bangkok Kunming Yangon Brunei Jakarta Begawan Hanoi Laos o Vientiane CAMBODIA Malaysia Kuala Lumpur Thailand Vietnam 1h:30 in average

30. Invest in Cambodia and you have 14 million consumers Invest in Cambodia and you have 14 million consumers Invest in Cambodia and you have 325 million consumers virtually at your doorstep Invest in Cambodia and you have 325 million consumers virtually at your doorstep Invest in Cambodia and you have 600 million consumers at your doorstep

31. Thank you very much More information, please contact: cdc.cib@online.com.kh or visit: www.cambodiainvestment.gov.kh