INVESTMENT ENVIRONMENT AND OPPORTUNITY IN CAMBODIA · 2015-2025. kh DIA 19. kh DIA 20 New growth...
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www.cambodiainvestment.gov.kh COUNCIL FOR THE DEVELOPMENT OF CAMBODIA 1 Presented by Sok Chenda Sophea Minister attached to the Prime Minister Secretary General Council for the Development of Cambodia INVESTMENT ENVIRONMENT AND OPPORTUNITIES IN CAMBODIA
Transcript of INVESTMENT ENVIRONMENT AND OPPORTUNITY IN CAMBODIA · 2015-2025. kh DIA 19. kh DIA 20 New growth...
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Presented by
Sok Chenda SopheaMinister attached to the Prime Minister
Secretary GeneralCouncil for the Development of Cambodia
INVESTMENT ENVIRONMENT AND OPPORTUNITIES IN CAMBODIA
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1. Key Indicators
2. Investment Environment in Cambodia
2.1. Council for the Development of Cambodia
2.2. Investment Incentives and Guarantee
3. Investments in Cambodia
4. Reasons to Invest in Cambodia
5. Cambodia Industrial Development Policy 2015-2025
6. Special Economic Zones in Cambodia6.1. SEZs in Svay Rieng Province (Bavet)
6.2. SEZs in Banteay Meanchey Province (Poi Pet)
6.3. SEZs in Sihanouk Province
7. Pioneers
TABLE OF CONTENTS
TABLE OF CONTENTS
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1. KEY INDICATORS
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Land area :
181,035 sq.km.
0.1%
5.9%7.1% 7.3% 7.4% 7.1% 7.0%
7.0%
6.9%
0%
2%
4%
6%
8%
10%
12%
14%
2009 2010 2011 2012 2013 2014 2015 2016 2017e
Agriculture Industry Service GDP Growth
1. Key Indicators
Population & Labor Force
Population: 15.4 Million (2015) Literacy: 92.7% (15-24 years old) Young and dynamic labor force:
Median age 24 years old Population growth rate : 1.54%
468 534623
738 731830 909 990 1036
1138 12151302
1435
0
500
1000
1500
2000
GDP Per Capita (2005-2017)
Low & Manageable Inflation
3.00%
3.90%
1.20%
3.00%
3.80%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
2013 2014 2015 2016 2017e
Stable Exchange Rate (USD-Riel)
4025
4039
40624056
4037
4000
4020
4040
4060
4080
2013 2014 2015 2016 2017e
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2. INVESTMENT ENVIRONMENT IN CAMBODIA
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OPEN
DOO
R PO
LICY
ONE
STOP
SER
VICE
Aftercare Service
Liberal Investment RegimeCustomer Approach
2.1. Council for the Development of Cambodia (CDC)
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Investment Guarantee
No discrimination
No nationalization
No requirements of local
equity participation
No price controls on
products or services
No restriction on foreign
exchanges
No capital control
2.2. Investment Incentives and Guarantee
Investment Incentives
Corporate Tax: 20%
Tax holidays: 0% up to 9 years, or Special Depreciation
Full Import Duty Exemption
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Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries (28)
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United States
Cuba
France
Austria
Switzerland
Netherland
Germany
Czech
Belarus
Croatia
Kuwait
OPEC
China
Pakistan
Lao PDR
Vietnam
Philippines
Singapore
Malaysia
Thailand
Japan
ROK
DPRK
Russia
Hungary1. Australia
2. Austria
3. Bangladesh
4. Belarus
5. China
6. Croatia
7. Cuba
8. Czech
1. DPRK
9. France
10. Germany
11. Hungary
12. Japan
13. Kuwait
14. Lao PDR
15. Malaysia
16. Netherlands
17. OPEC
18. Pakistan
19. Philippine
20. ROK
21. Russia
22. Singapore
23. Switzerland
24. Thailand
25. USA (OPIC)
26. Vietnam
27. Belarus
28. United Arab Emirates
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9 3. INVESTMENTS IN CAMBODIACAMBODIA
THE NEW ECONOMIC FRONTIER
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10 Year 2013 2014 2015 2016 2017
Total $4.9 Billion $3.9 Billion $4.6 Billion $3.6 Billion $6.3 Billion
Rank Country % Country % Country % Country % Country %
1 Cambodia 66.80 Cambodia 64.00 Cambodia 69.28 China 29.92 Cambodia 50.68
2 China 15.68 China 24.44 China 18.62 Cambodia 27.55 China 25.97
3 Vietnam 6.10 Malaysia 2.18 U.K 3.00 Japan 22.78 Vietnam 9.20
4 Thailand 4.37 Japan 1.72 Singapore 2.18 Thailand 4.61 Malaysia 4.37
5 Korea 1.76 Korea 1.66 Vietnam 1.92 Korea 4.59 Singapore 4.12
6 Japan 1.59 Vietnam 1.26 Malaysia 1.61 US 3.38 Korea 3.20
7 Malaysia 1.04 UK 1.13 Japan 1.28 Singapore 3.38 Japan 1.00
8 Singapore 1.03 Singapore 0.89 Thailand 1.18 Vietnam 2.45 UK 0.88
9 UK 0.43 Thailand 0.88 Korea 0.21 UK 0.60 Thailand 0.25
10France 0.27 Australia 0.51 Canada 0.19 India 0.55
British Virgin
Islands0.12
11 Others 0.94 Others 1.36 Others 0.52 Others 0.53 Others 0.21
3.1. Investments by Country(in Billion USD)
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2012
2012-2017
2017
3.2. Investments by Sector
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12Open economy
Equal treatment of all investors No requirement of local equity
participation No price controls on products
or services No restriction on foreign
currencies convertibility
Sound macroeconomic environment
6th fastest growing economy in the world during the last two decades (average growth rate: 7.7%)
Low & manageable inflation rate (under 5%)
Stable exchange rate (USD 1 = 4000 5%)
Competitive investment incentives
Low corporate tax: 20% Tax holiday: 0% up to 9 years Full import duty exemption
(production equipment and machineries, contraction material, production inputs)
One-stop service
Information & Application Fast-Track Investment Approval
Process: all documents will be processed within only 28 working days.
Customs Duty & Tax Exemption Visa & Work Permit
4. REASONS TO INVEST IN CAMBODIA
ONE-STOP
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4. REASONS TO INVEST IN CAMBODIA
Strategic location
Center of ASEAN: flight time average only 1:30 hour to other ASEAN countries
Competitive labor force
Reasonable wage: (minimum
wage in 2018: $170)
Young and dynamic labor force
(median age 24 years old)
6% 1% 4% 9%
0-4
10-14
20-24
30-34
40-44
50-54
60-64
70-74
80+
2023
Female Male
6% 1% 4%
0-4
10-14
20-24
30-34
40-44
50-54
60-64
70-74
80+
2013
Female Male
Young and Dynamic Population
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Market access and
Preferential trading status
ASEAN Market (AEC): pop. 643 M, GDP $2.5 Tri.
ASEAN + China, Japan, Korea, India, Australia & New Zealand (RCEP):
pop. 3.3 B, GDP $17.1 Tri.
Market Access: US, EU, Japan etc.
GSP: 32 countries
MFN: WTO members
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Vietnam
15
1h:30 flight on average
STRATEGIC LOCATION
And Beyond
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• Roads
• Telecommunications• Power Transmission Line
GMS Infrastructure Connectivity in
2015-2020
GMS Infrastructure Connectivity
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+
Cambodia is a member of ASEAN Economic Community and Regional Comprehensive Economic Partnership (RCEP)
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5. CAMBODIA INDUSTRIAL DEVELOPMENT POLICY 2015-2025
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New growth strategy
A transformation and
modernization of Cambodia’s
industrial structure from a labor-
intensive industry to a skill-based
industry by 2025
Improving electricity supply to key industrial areas/estates (price, stability,coverage): reduce the electricity tariff from 18.8 cents/kwh in 2014 to 12cents/kwh
Preparing a master plan for the development of multi-modal transport andlogistic system focusing on connection of 3 keys industrial corridors (PhnomPenh- Sihanoukville, Phnom Penh- Bavet, and Phnom Penh- Poi Pet).
Improving Industrial Relations and Building modern institutions for vocationaland technical training / human resources development needed by industries.
Developing and transforming Sihanoukville Province into a multi-purpose SEZ.
Connecting to regional and globalvalue chain
Integrating into regional productionnetworks and developing clusters
Strengthening competitiveness andimproving productivity of domesticindustries
Marching toward developing a modern technology and knowledge-based industry
VISION
4 KEY PRIORITIES TO BE ACHIEVED BY 2018
BY
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PRIORITY INDUSTRIAL SECTORSNew industries with the capability of breaking into new markets, with high value-
added products, creative and highly competitive such as machinery assembly, mechanic/electronic/electric equipment assembly, means of transport assembly and
natural resource processing
SMEs in all sectors especially those involved in drugs and medical equipment production, construction materials, packaging equipment for export, furniture
manufacturing and industrial equipment, etc.
Agro-industrial production for export and domestic markets
Various types of supporting industries for the agriculture, tourism and textile sectors as well as for industries serving regional production chains with either
global markets or global value chains
Industries serving regional production lines and those of future strategic importance such in ICT, energy, heavy industries, cultural/historical/traditional
handicraft, and green technology.
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6. SPECIAL ECONOMIC ZONES IN CAMBODIA
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23 •Poi Pet O'Neang SEZ
•Sanco Poi Pet SEZ• (Toyota Tsusho’s Techno Park)•Poi Pet PPSEZ (work in progress)
•Sihanoukville SEZ
•Sihanoukville Port SEZ•Sihanoukville SEZ 1
•H.K.T SEZ
•Neang Kok Koh Kong SEZ
•Phnom Penh SEZ
•Manhattan Svay Rieng SEZ•Tai Seng Bavet SEZ•Dragon King Bavet SEZ
•Shandong Sunshell SvayRieng SEZ•Hi-Park SEZ•Kampot
SEZ
•Kerry WorldbridgeSEZ
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Pop: 616,232Adult: 56% (age 18-60)
SCHOOL Student
262 Primary 71,823
55 Secondary 12,513
19 High 20,833
6.1. SVAY RIENGSpecial Economic Zones1. Manhattan Svay Rieng SEZ2. Tai Seng Bavet SEZ3. Dragon King Bavet SEZ4. Shandong Sunshell SEZ5. Hi-Park SEZ
Total Investment Projects: 70Total Investment Capital: Approx. USD 317 Million Total employment: 42,000
Investment Activities:
University: 1
Student: 3,210
- Computer Services: 46
- Auto Mechanic: 5
- Auto Repair: 20 Electrical: 166
- IT: 65 English: 85
- Animal Science: 20 Others…
- Public Admin. 760 Banking: 733
- Management: 597 Accounting: 532
- English: 217 Marketing: 108
- Computer Science:176 Agriculture: 85
- Rural Development:80 Math: 57
- Animal Science: 34
TVET: 1 Student: 479
Garment and
Footwear42%
Furniture 23%
Bicycle Assembly
9%
Watch5%
Packaging5%
Electronic and
Electrical6%
Others10%
0.09%
0.43%
0.61%
1.21%
11.86%
23.68%
26.55%
35.57%
Hungary
Hong Kong
US
Vietnam
Singapore
China
Japan
Taiwan
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Cai Mep Port
166 KM3h:20min drive
90 KM2h:40min drive
BAVET
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6.1. SVAY RIENG
Proximity with Vietnam’s major city and seaports
Bavet to Ho Chi Minh: 70 km
Bavet to Cai Mep Port: 75 km
Bavet to Cat Lai Port: 90 km
Key projects in development
Completed Feasibility Study on Phnom Penh – Bavet Expressway
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Pop: 747,402
M: 49% F: 51%Young: 31% (age 15-35)
SCHOOL Student
408 Primary 92,718
54 Secondary 12,364
26 High 21,414
6.2. BANTEAY MEANCHEY
Special Economic Zones1. Sanco Poi Pet SEZ
(Toyota Tsusho’s Techo Park)2. Poi Pet O’Neang SEZ3. Poi Pet PPSEZ (work in progress)
Total Investment Projects: 14Total Investment Capital: Approx. USD 76 Million Total employment: 2,408
Investment Activities:
University: 4
Student: 4,142
- Computer Services: 35
- Water System
Installation: 30
- Electrical: 89 IT: 5
- Civil Engineering: 4 Auto Repair: 7
- Aircon. Repair: 16 Others…
- Management: 762 IT: 45
- Banking: 661 English: 235
- Marketing: 185 Law: 273
- Accounting: 150 Others…
TVET: 1 Student: 266
Auto Parts
Assembly30%
Steel1%
Electronic Equipment
62%Jewelry Processin
g & Box2%
Garment6%
7.93%
92.07%
Thailand
Japan
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Laem Chabang Port
295 KM4h:40min drive
388 KM7h:40min drive
BANTEAY MEANCHEY
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6.2. BANTEAY MEANCHEY Proximity with Thailand’s major city and seaport
Poi Pet to Bangkok: 260 km Poi Pet to Laem Chabang Port: 250 km
Key projects in development New border crossing at Stung Bot (Poi Pet)-Ban Nong Ian
(Aranyaprathet) to be constructed through a signed Agreement between the Royal Government of Cambodia and the Government of the Kingdom of Thailand on the Construction of the new Border Crossing at Stung Bot-Ban Nong Ian.
Increased quota of trucks and non-scheduled buses from 40 to 150 vehicles entering Cambodia and Thailand at the Aranyaprathet-Poi Pet International Point of Entry under the GMS-IICBTA.
Widening National Road No. 5 to four lanes from the current two, projected to be completed by 2021.
Renovating the Northern Railway Line (Phnom Penh – Poi Pet) connecting with Thailand.
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6.3. SIHANOUK PROVINCE
Special Economic Zones1. Sihanoukville SEZ2. Sihanoukville Port SEZ3. Sihanoukville SEZ 14. H.K.T SEZ
Total Investment Projects: 97Total Investment Capital: Approx. USD 1.3 Billion Total employment: 18,623
Transforming Sihanouk Province into Multi-Purposed
Special Economic Zone
Investment Activities (in progress):
Phnom Penh to Sihanouk Province: 230 km
Cambodia’s industrial heartland and gateway to the world
Cambodia’s deep sea port
Multi-modal transportation: Road, rail, port, airport
Multi-Purposed Special Economic Zone, following Special Administrative Region (IDP 2015-2025)
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Sihanoukville Port
230 KM4h:00min drive
SIHANOUK PROVINCE
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6.3. SIHANOUK PROVINCE
Key projects in development
National Road 4 upgrading and widening (2018-2022) Phnom Penh-Sihanouk Expressway Development Project
(2018-2022) Sihanoukville Port Capacity Enhancement Project, Vessel
Trafficking Management Information System, Sihanoukville Port Service Improvement Project (2018-2019)
Southern line/Sihanoukville Port Access Railway Improvement Project (2020-2022)
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337. The Pioneers
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THANK YOU
SOK Chenda SopheaMinister attached to the Prime Minister/Secretary GeneralCouncil for the Development of Cambodia Email: [email protected]
どうもありがとうございました
