Business and Investment Opportunities in Cambodia Bangkok, 28 May 2007 Presented by KONG VIBOL First Secretary of State of Ministry of Economy and Finance Vice Chairman of the Council for the Development of Cambodia
Open Economy: Committed to a Pro-business/Investor Model Cambodia is the most open economy of the least developed countries (LDCs). Liberal foreign investment regime – 100% foreign ownership investments are allowed in all sectors and activities except the ownership of land No foreign exchange controls on current account transactions The Index of Economic Freedom ranks Cambodia 102 nd among 170 countries in 2007. This is ahead of Indonesia (#110), Vietnam (#138) and Laos (#140) Factors considered in the Index include Cambodia’s – Low income and corporate tax burden – Investor friendly regulatory regimes – Flexible labor markets – Open international trade policy, reflected in accession to WTO membership in 2004
A. Recent Economic Developments Real growth remains robust Inflation has eased Banking system is expanding Positive external developments B. Outlook for 2006 -2007 Very good economic performance Growth is robust, inflation low Solid basis for the economy in 2007
Very good economic performance – Real growth around 10. 8% in 2006 – 9% growth projected for 2007 Real GDP Growth Rate
Very good economic performance – 2007– continued growth in garment exports, tourism, +ve agriculture – Some easing in construction growth Real GDP Growth Rate
Economic Performance Average growth for last 5 years is 9. 8% 1999 GDP per capita Source: SNEC & MEF 2000 2001 2002 2003 2004 2005 2006 282 288 307 325 342 386 454 513
Council for the Development of Cambodia Samdech Hun Sen Prime Minister of the RGC Chairman Trouble Shooting Committee H. E Mr. Keat Chhon, Senior Minister of Economy and Finance 1 st Vice Chairman H. E Mr. Cham Prasidh, H. E Mr. Kong Vibol, First Secretary of State Senior Minister, Minister of Commerce Ministry of Economy and Finance Vice Chairman H. E Mr. Sok Chenda Secretary General CSEZB H. E Sok Chenda Policy and planning Operation and management Project analysis and registration Administration Secretary General CIB H. E. Mr. Suon Sitthy Public relations and investment promotion Investment project evaluation and incentives Environmental impact assessment Inter-ministerial coordination Private investments strategies analysis Legal affairs and investment law Investment projects monitoring Administration Secretary General CRDB H. E. Mr. Chhieng Yanara Public relations and Aid coordination Documentation and information Management of bilateral aid Asia Management of bilateral aid EU& US Management of multilateral aid Management of aid from the UN NGO coordination and relations Project evaluation Administration
A One Stop Service Open Door Policy Information & Application Approval Customs Duty & Tax Exemption Visa & Work Permit Company Registration
Investment Approval Investment application 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 CDC issues a Final Registration Certificate to the Applicant 28 working days
Investments by Country 1994 – 2006 In Million USD Total USD 12, 168 million
SELECTED THAI COMPANIES No COMPANY’S NAME ACTIVITIES 1 CP. CAMBODIA COMPANY LIMITED FEED MILL, HATCHERY, BROILER FARM 2 CRYSTAL AGRO CO. , LTD PLANTATION OF CASSAVA CROP, TREES CROPS, SUGARCANE 3 REAL GREEN CO. , LTD PLANTATION OF SUGAR CANE 4 CPAC MONIER (CAMBODIA) CO. , LTD CONCRETE ROOF TILE PRODUCTION 5 (SIAM CEMENT) KAMPOT CEMENT CO. , LTD CEMENT FACTORY 6 KAMPOT POWER PLANT/ SIAM ELECTRICITY SUPPLY 7 THE IMPERIAL ANGKOR PALACE HOTEL CO. , LTD (LE MERIDIAN ANGKOR HOTEL) HOTEL OPERATION IN SIEM REAP 8 CAMBODIA DEVELOPMENT ENTERPRISE (CDE) CO. , LTD. HOTEL 5 STARS IN SIEM REAP 9 PHOKEETHRA RESORT & SPA (CAMBODIA) CO. , LTD HOTEL AND SPA GOLF COURSE 10 ANGKOR PISITH CO. , LTD INTERNATIONAL STANDARD HOSPITAL 250 BEDS 11 SAMART CO. , LTD CELLULAR MOBILE TELEPHONE NETWORK 12 CAMBODIA AIR TRAFFIC SERVICES LIMITED AIR TRAFFIC CONTROL SYSTEM
Encouraged Investment Activities Agriculture and agro-industry Transport and telecommunications infrastructures Energy and electricity sectors Labor-intensive industries and exportoriented processing and manufacturing; Tourism-related industries Human resource development Mining
Investment Incentives 20% Corporate Tax Trigger period +3 years+n (automatic) Repatriation of profit (withholding tax) Reinvestment of earning (special depreciation) Full Import Duty Exemption No Export Tax Licensing (Simple registration)
n in tax holiday formula Light Industry n K < 5 000 USD 0 5000 < K < 20 000 USD 1 year K > 20 000 USD 2 year Heavy Industry K < 5 000 USD 2 year K > 5 000 USD 3 year Tourism Projects K < 10 000 USD 0 year K > 10 000 USD 1 year Agriculture, Agro-Industry - Short cycle agriculture 1 year - Long cycle agriculture, agro-industry 2 year Infrastructure K < 10 000 USD 1 year 10 000 < K < 30 000 USD 2 year K > 30 000 USD 3 year BACK
Investment Protection The Investment Law and Sub-decree contains a number of important guarantees for the investors: Equal treatment of all investors No nationalization adversely affecting the property of investors No price controls on products or services No restriction on foreign equity participation No restriction on forex convertibility Remittance of foreign currencies abroad.
Private Sector Development Strategy Trade Facilitation (by 2005) : Single inspection, Single document Investment Climate: Amendment of LOI Automatic approval - One Stop Service Government-Private Sector Forum: Participatory approach
The Government pro-actively seeks to increase the participation and engage the private sector in the development of Cambodia. The Private Sector Forum (“PSF”) is one of the Cambodian Government’s initiatives in recognition of the importance of transparency A framework for ongoing, structured dialogue between business and the Government with the view to improve the business environment. A platform for businesses to offer expertise on a range of policy and regulatory reforms – Examples of the PSF’s success: high level consultations on investment and tax laws, the introduction of private sector monitors within the Ministry of Commerce, improved labor standards, and negotiations on cost reductions for major road concessions Core work is undertaken during the year by 8 sector specific public-private working groups, consisting of government and business counterparts and co-chaired by one minister and one business representative – The Minister of Economy & Finance is the coordinator of the Working Group process – The CDC serves as the PSF’s secretariat, while the IFC acts as its coordinating bureau The commitment of the Government to the PSF is underlined by the personal participation of the Prime Minister as the Chair in the bi-annual PSF The PSF has demonstrated its ability to serve as a catalyst for public-private dialogue
Diversification of the economy : Special Economic Zones Promote industries and services currently not available in Cambodia to diversify the growth base. The Government adopted a Sub-decree on the Establishment and Management of Special Economic Zone (SEZ) in Dec 2005. SEZ will include export processing zones and free trade zones The main rationale of establishing SEZs is to: – Provide investors with adequate infrastructure and supportive facilities – Effectively respond to the challenge of diversifying the Cambodian economy and to promote demand-driven development, such as export promotion – Enhance competitiveness of garment industry and other labor intensive activities – Promote agro-industry, food processing – Promote assembling industry; and – Promote electronic and electric appliances industries The following growth poles have been identified for industrial development: – Poipet and Koh Kong (at the Cambodian-Thai border) – Bavet and Phnom Den (at the Cambodian-Vietnamese border) – Phnom Penh; and – Sihanoukville Port has harbour facilities and “dry ports” which have been developed to enhance its competitive edge as an international commercial gateway
Map of SEZ Chhay SEZ Sap Koh Kong SEZ N. L. C SEZ Phnom Penh SEZ Stoung Haov SEZ Sihanoukv ille SEZ S. N. C SEZ Kampot SEZ Duong Chhiv SEZ Manhattan SEZ
Looking Forward to Welcome You in Cambodia, The Land of ANGKOR and OPPORTUNITIES! TO GO TO SEE TO HEAR TO ENJOY TO ASSESS TO DECIDE THANKS
Скачать презентацию Business and Investment Opportunities in Cambodia Bangkok 28
add3d4cc689a8db5f8a312e9a155009d.ppt