INVESTMENT OPPORTUNITIESin Cambodia

presented by

Sok Chenda SopheaMinister attached to the Prime Minister

Secretary General Council for the Development of Cambodia

Key IndicatorsKey Indicators

Land area : 181,035 Land area : 181,035 sq.kmsq.km..

Population: 14.1 Million Population: 14.1 Million

Labor force (young) : 7,053,398 Labor force (young) : 7,053,398 (Female: 3,608,345)(Female: 3,608,345)

Population growth rate : 1.54%Population growth rate : 1.54%

GDP (2010) : 5.9%GDP (2010) : 5.9%

GDP per capita in 2010 : $830GDP per capita in 2010 : $830

Inflation (2010) : 4%Inflation (2010) : 4%

Exchange rate: USD 1= Exchange rate: USD 1= 4062 Riels4062 Riels

JPY 1= 49.67 RielsJPY 1= 49.67 Riels

Economic PerformanceEconomic Performance

Source: SNEC & MEF

Average growth for last 5 years is 10.3%Average growth for last 5 years is 10.3%

20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009 20102010

GDP per capita GDP per capita 331331 356356 402402 468468 534534 623623 738738 731731 830830

H.E. Mr. Chhieng YanaraSecretary General CRDB

H.E. Mr. Keat Chhon, Deputy Prime MinisterMinister of Economy and Finance

1st Vice Chairman

H.E. Mr. Suon SitthySecretary General CIB

Trouble Shooting

Committee

Samdech Akka Moha Sena Padei Techo HUN SENPrime Minister of the Kingdom of Cambodia

Chairman

Council for the Development of Cambodia (CDC)

H.E. Mr. Chea VuthyDeputy Secretary General CSEZB

H.E. Mr. Kong VibolSecretary of State of Economy & Finance

Vice Chairman

H.E. Mr. Sok Chenda SopheaMinister attached to the Prime Minister

Secretary General CSEZB

H.E. Mr. Duy ThouvDeputy Secretary General CIB

H.E. Mr. Leap VandenDeputy Secretary General CRDB

H.E. Mr. Sok Chenda SopheaMinister attached to the Prime Minister

Secretary General

H.E. Mr. Cham Prasidh, Senior Minister, Minister of Commerce

2nd Vice Chairman H.E. Mr. Sun Chanthol

Senior Minister in charge of Special Missions Permanent Vice Chairman

H.E. Mr. Rith VuthyDeputy Secretary General CRDB

H.E. Mr. An SophanaraDeputy Secretary General CIB

SEZ ODA FDIGMS National Secretariat

Information & ApplicationInformation & ApplicationApprovalApprovalCustoms Duty & Tax ExemptionCustoms Duty & Tax ExemptionVisa & Work PermitVisa & Work PermitCompany RegistrationCompany Registration

A ONE STOP SERVICE

Licensing AuthoritiesLicensing Authorities

Council of Ministers : CDC but needs approval from Council of Ministers : CDC but needs approval from CoMCoM for project with investment capital exceeding $ 50 for project with investment capital exceeding $ 50 million, BOT, BOOT, BOO or BLT, longmillion, BOT, BOOT, BOO or BLT, long--term strategy, term strategy, sensitive projects: negative impact on the environment sensitive projects: negative impact on the environment and natural resource exploitationand natural resource exploitation

CDC : less than $ 50 millionCDC : less than $ 50 million

Provincial Authorities : less than $ 2 millionProvincial Authorities : less than $ 2 million

Investment ApprovalInvestment 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

Investment IncentivesInvestment Incentives

20% Corporate Tax 20% Corporate Tax

Tax holidays: Trigger period +3years+n; 6y <TH<9y Tax holidays: Trigger period +3years+n; 6y <TH<9y

Full Import Duty ExemptionFull Import Duty Exemption

Repatriation of profit (withholding tax)Repatriation of profit (withholding tax)

Reinvestment of earning (special depreciation)Reinvestment of earning (special depreciation)

Investment ProtectionInvestment Protection

Equal Treatment of All InvestorsEqual Treatment of All InvestorsNo Requirement of Local Equity ParticipationNo Requirement of Local Equity ParticipationNo Price Controls on Products or ServicesNo Price Controls on Products or ServicesNo Restriction on No Restriction on ForexForex ConvertibilityConvertibilityFree Remittance of Foreign Currencies AbroadFree Remittance of Foreign Currencies Abroad

The Investment Law and SubThe Investment Law and Sub--decree contains a number of decree contains a number of important guarantees for the investorsimportant guarantees for the investors:

Bilateral Agreement on the Promotion and Protection of InvestmenBilateral Agreement on the Promotion and Protection of Investments ts between the Kingdom of Cambodia and Other Countriesbetween the Kingdom of Cambodia and Other Countries

1.1. AustraliaAustralia2.2. AustriaAustria3.3. ChinaChina4.4. CroatiaCroatia5.5. CubaCuba6.6. Czech Czech 7.7. France France 8.8. GermanyGermany9.9. IndonesiaIndonesia10.10. JapanJapan11.11. KuwaitKuwait12.12. Lao PDRLao PDR

13. MalaysiaMalaysia14.14. NetherlandsNetherlands15.15. N. KoreaN. Korea16.16. OPECOPEC17.17. PakistanPakistan18.18. PhilippinesPhilippines19.19. ROKROK20.20. SingaporeSingapore21.21. SwitzerlandSwitzerland22.22. ThailandThailand23.23. USA (OPIC)USA (OPIC)24.24. VietnamVietnam

Encouraged Investment ActivitiesEncouraged Investment Activities

Agriculture and agroAgriculture and agro--industryindustryTransport and telecommunications Transport and telecommunications Energy and electricityEnergy and electricityLaborLabor--intensive industries, intensive industries, processing and processing and manufacturing;manufacturing;TourismTourismHuman resource developmentHuman resource developmentOil & Gas, MiningOil & Gas, Mining

Approved Investments by CountryApproved Investments by Country(1994(1994-- 2010)2010)

US$ Million

Approved Investments by SectorApproved Investments by Sector1994 1994 –– 20102010

Infrastructure: A definite prospect

Priority for infrastructurePriority for infrastructureInfrastructure rehabilitationInfrastructure rehabilitationMultilateral aid availabilityMultilateral aid availabilityDecentralizationDecentralizationRegional opportunitiesRegional opportunitiesASEAN & GMS integrationASEAN & GMS integrationPrivate Participation in Private Participation in Infrastructure (PPI): BOT, BOO, Infrastructure (PPI): BOT, BOO, etcetc……

AgroAgro--businessbusiness

Basic agrarian economyBasic agrarian economyNatural endowments:Natural endowments:

Abundant landAbundant landRich fishery resources Rich fishery resources

Organic cropsOrganic cropsValueValue--added emphasis/ added emphasis/ Food processingFood processingNew product developmentNew product development

TourismTourism

World Heritage MonumentsWorld Heritage Monuments

Open Sky Policy to Open Sky Policy to SiemSiem ReapReap

Natural beauty Natural beauty -- Beach Beach -- IslandsIslands

Ability to attract Ability to attract ““addadd--onon”” tripstrips

Novelty valueNovelty value

Eco-Tourism

Tourism CenterPoipet

Sihanoukville

Gulf of Thailand

314km

230 km

150 km

Beach & Island Resorts

Bokor (hill resort)

Visitors to CambodiaVisitors to Cambodia

Thousand (000)Thousand (000)

Visitor arrival from 2006 Visitor arrival from 2006 -- 20102010

YEARYEAR 20062006 20072007 20082008 20092009 20102010

Visitor ArrivalsVisitor Arrivals 1,770,0411,770,041 2,015,1282,015,128 2,125,4652,125,465 2,161,5772,161,577 2,508,2892,508,289

Japanese arrivalsJapanese arrivals

Year Number of Japanese Visitors Total Visitors Share (%) Rank

2006 158,353 1,770,041 9.31 2nd

2007 161,973 2,015,128 8.04 2nd

2008 163,806 2,125,465 7.71 3rd

2009 146,286 2,161,577 6.77 4th

2010 151,795 2,508,289 6.05 4th

Top ten MarketsTop ten Markets

Vietnam Vietnam

KoreaKorea

ChinaChina

JapanJapan

USAUSA

FranceFrance

UKUK

ThailandThailand

AustraliaAustralia

TaiwanTaiwan

Investment OpportunitiesInvestment Opportunities

Phnom Penh Phnom Penh oo International Convention CenterInternational Convention Centeroo HighHigh--end hotel (Four Seasons, Hyatt, etcend hotel (Four Seasons, Hyatt, etc……) at the moment there are only ) at the moment there are only

Intercontinental Hotel and Raffles with approximately 500 rooms.Intercontinental Hotel and Raffles with approximately 500 rooms.SiemreapSiemreap

oo International Convention CenterInternational Convention Centeroo HighHigh--end hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etcend hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etc……) at the moment ) at the moment

there are only Raffles, Le there are only Raffles, Le MeridienMeridien, , SofitelSofitel, , AmanAman resorts and Orient Express, with resorts and Orient Express, with approximately 700 rooms. approximately 700 rooms.

oo Amusement park / recreational activitiesAmusement park / recreational activitiesoo Golf course (there are three existing golf courses)Golf course (there are three existing golf courses)

SihanoukvilleSihanoukvilleoo HighHigh--end hotel (Four Seasons, Hyatt, etcend hotel (Four Seasons, Hyatt, etc……))oo Golf CourseGolf Course

Manufacturing & ExportManufacturing & Export

Competitive labor costCompetitive labor costTax incentivesTax incentives

Market accessMarket accessRegional arrangementRegional arrangement

Cambodia’s Special Economic Zones

No Activities

Under Construction

Operational Kampot SEZSihanoukville 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 MongSEZ

Kiri Sakor Koh Kong SEZ

P (SEZ) I C

Thary Kompong Cham SEZ

GoldFame Pak Shun SEZ

Duong Chhiv SEZ

Phnom Penh SEZ

One Stop ServiceOne Stop ServiceSpecial Economic Zone AdministrationSpecial Economic Zone Administration

Company registration and investment license Company registration and investment license Export/import permit Export/import permit Work permit and Labor books (both workers and Work permit and Labor books (both workers and expatriate)expatriate)SEZA will provide on site immediate legal and SEZA will provide on site immediate legal and administrative assistance administrative assistance

JOININGJOININGWTOWTO

JOININGJOININGASEANASEAN

ACCESS TOACCESS TOTHE U.S.THE U.S.MARKETMARKET

ACCESS TO THEACCESS TO THEEUROPEANEUROPEANMARKETMARKET

Cambodia has embraced the globalization process as part of its Cambodia has embraced the globalization process as part of its outward looking economic development strategyoutward looking economic development strategy……..

Reasons to invest in CambodiaReasons to invest in Cambodia

Open economyOpen economySound Macroeconomic EnvironmentSound Macroeconomic EnvironmentCompetitive Investment IncentivesCompetitive Investment IncentivesOne Stop Service One Stop Service –– FastFast--Track Investment Approval Track Investment Approval Process (28 days)Process (28 days)Low Labor CostLow Labor CostStrategic LocationStrategic LocationPreferential Trading StatusPreferential Trading StatusAccess to ASEAN and World MarketsAccess to ASEAN and World Markets

.

Phnom PenhThe Philippines

Singapore

Indonesia

MyanmarSouthern China

ManilaBangkok

Kunming

Yangon

Brunei

Jakarta

Begawan

Hanoi

LaosVientiane

Malaysia

Kuala Lumpur

ThailandVietnam

1h:30 in averageCAMBODIA

Invest in Cambodia and you

have 14 million consumers

Invest in Cambodia and you Invest in Cambodia and you

have 14 million consumershave 14 million consumers

Invest in Cambodia and you

have 325 million consumers

virtually at your doorstep

Invest in Cambodia and you Invest in Cambodia and you

have have 325 million325 million consumers consumers

virtually at your doorstepvirtually at your doorstep

Invest in Cambodia and you have 590 million

consumers at your doorstep

Invest in Cambodia and Invest in Cambodia and you have you have 590 million590 million

consumers at your consumers at your doorstepdoorstep

Thank you Thank you

www.cambodiainvestment.gov.kh

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