9/8/2014

INVESTING IN
CAMBODIA

CHANTHOL SUN
Senior Minister, Minister of Commerce
Vice Chairman
Council for the Development of Cambodia
1

STRATEGIC LOCATION
IN SOUTH-EAST ASIA
2

9/8/2014

CAMBODIA AT A GLANCE
LAND AREA
POPULATION

181,035

14.7
million

square kilometer

(at 2013)

POPULATION
GROWTH
RATE

1.46
%

at
2013

Stable macroeconomic environment

GDP growth : average 8% per annum

the last 10 years (20042013 periods)

GDP per capita

Exchange rate

$1,043

US$ 1 = Riel 4,080

Inflation rate

4.6%

(end of period rate of 2013)

B2 DEBT
RATING
3

REASONS TO INVEST IN CAMBODIA

Macroeconomic Stability

Pro-business Government

Competitive Investment Incentives

One-Stop Service Investment Promotion Agency

Preferential Access to Regional & World Markets

Investment Protection

Efficient Infrastructure and Strategic Location

Sound Financial Sector

Abundant Resources, Labor, Land

9/8/2014

MACROECONOMIC STABILITY

GDP growth averaged 8% per annum the last 10 years

Stable exchange rate

Low inflation

Debt to GDP ratio 32.8% (at the end of 2013)

Low budget deficit

International reserves increased to US$ 3.6 billion (2013)

compared to US$ 3.0 billion two years ago

It took 12 yyears to increase international reserves from US$ 100

million to US$ 1 billion (19942006) but it just took 2 years to
increase from US$ 2 billion to US$ 3 billion (20062008)

GDP
GDP Growth (%)
14.0%

13.3%

12.0%

10.8%

10.3%

10.2%

10.0%

8.8%

8.5%

8.1%
8.0%

6.7%

6.6%

7.1%

7.3%

7.4%

2011

2012

2013

6.0%

6.0%

4.0%

2.0%

0.1%
0.0%
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Growthhasbeenslowingbecauseofimpactsfromglobalfinancialcrisis,withgrowthin2009at0.1%

9/8/2014

GDP
GDP Per Capita (US$)
1,200
1,043
971

1,000

909
830

800

739

731

623

600

534
468

400
400
290

312

331

356
356

402

200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
7

CURRENCY
Stable Exchange Rate (US$/Riel)
4,200
4,150

4,136

4,143

4 116
4,116
4,100

4,100

4,087
4,075

4,080

4,046

4,050

4,031
4,002

4,000

4,000

3,980

3,950

3,935
3,910

3,900

3,900

3,850
3,800
3,750
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013 Sep-14

9/8/2014

INFLATION
Low Inflation
16%

14%

14.0%
12.5%

12%

10%

8.4%

8%

6%

5.3%

5.3%

4.6%

4.9%

4.2%

4%

3.1%

2.5%

2%

1.4%
0.7%

0.0%

0%
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

FOREIGN RESERVES
Foreign Reserves (US$ Billion)
4

3.5

2.5

1.5

0.5

0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

International reserves increased to US$ 3.6 billion by end of 2013

10

9/8/2014

TRADE VOLUME (US$ MILLION)

20,000

15,893

15,000
13,412
11,478

10,000

8,984
8,272

7,777
6,853
4,764

4,778

4,421
3,190
2,818

2,484
2,280

3,727
3,126

3,356

6,909

6,602

6,531

6,008

5,000

7,925

3,740
2,791

4,876

5,487

3,494

2005

2006

(204)

2007

2008

(601)

(372)

2009

2010

(949)

(1,065)

2011

2012

(1,726)

TotalTrade

Export

Import

2013

(1,284)
(2,438)

(2,075)

TradeBalance

(5,000)

11

BUDGET
Low Budget Deficit (% of GDP)
9.0%

8.4%

8.0%

7.5%

7.5%

7 2%
7.2%

7.0%
6.3%

6.2%

2012

2013/Pr

6.0%

6.0%

5.4%

5.0%
3.8%

4.0%

3.3%
2.7%

3.0%

2.8%

2.8%

2007

2008

2.0%
1.0%
0.0%
2001

2002

2003

2004

2005

2006

2009

2010

2011

12

9/8/2014

REMARKABLE ACHIEVEMENTS

Cambodia was among the top ten highest growing economies from 1998-2007, along with China

13

PRO-BUSINESS GOVERNMENT

GovernmentandPrivateSectorWorkingGroups
GovernmentandPrivateSectorForum
Privatesectorisanengineofeconomicgrowth
Easyaccesstorelevantgovernmentofficials

14

9/8/2014

GOVERNMENT PRIVATE SECTOR FORUM

World Bank Group: Support of structured public - private dialogue

for private and financial sector development, 4/2009
15

COMPETITIVE INVESTMENT INCENTIVES

Corporate tax - 20%

Tax holiday up to 9 Years

Full import and export duty exemption

No discrimination, no nationalization

No local participation requirement

No price control on any products or services

No foreign exchange control

No restriction on capital repatriation: free repatriation of profits & free

remittance
itt
off royalty,
lt interest,
i t
t loan
l
repayment,
t dividend,
di id d investment
i
t
t
capital, etc.

No trade restrictions

Long-term land lease

16

9/8/2014

ONE-STOP SERVICE CDC/CIB

Information and application

Evaluation and approval
Customs duty and tax exemption
Visa and work permit
Company registration
Investor after-care

17

ACCESS TO WORLD MARKETS

Access to the U.S. market - 1996

Access to the E.U. market - 1996
Member of the Association of South-East Asian Nations (ASEAN) - 1999
Member of the World Customs Organization (WCO) - 2001
Member of the World Trade Organization (WTO) - 2004
Member of various regional trade agreements

18

9/8/2014

MFN/GSP MARKET ACCESS

o

Australia

France

Poland

Austria

Germany

Portugal

Belarus

Hungary

ROK

Belgium

Ireland
Italy

Bulgaria

Canada

Korea

Slovakia

Luxemburg

Spain

Japan

Sweden

Netherlands

Switzerland

New Zealand

UK

Norway
o

USA

o
o
o
o

China
Czech Republic
Denmark
Finland

Russian
Federation

MFN: Most Favored Nation GSP: Generalized System of Preferences

19

INVESTMENT PROTECTION AGREEMENTS

In process :
Algeria

Australia

Lao PDR

China P.R

Malaysia

Bulgaria

Croatia

Netherlands

Egypt

Cuba

OPEC

Lybya

Czech Republic

OPIC

Myanmar

Pakistan

Qatar

Philippines

Russia

ROK
o

Ukraine

Singapore
o

UK

Switzerland
o

Thailand

USA

Vietnam

Hungary

Malta

o
o
o
o
o
o

DPR of Korea
Germany
France
Indonesia
Japan
Kuwait

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9/8/2014

INFRASTRUCTURE & LOCATION

Completed ASEAN highway linking Thailand, Cambodia, Vietnam

Completed ASEAN highway linking Cambodia, Lao PDR, China

Finished upgrading national road network

Rehabilitating National Railways as part of Singapore Kunming rail link

Upgraded Sihanoukville Port (new general cargo terminal)

Upgraded Phnom Penh Port / new container port

Upgraded Phnom Penh, Siem Reap, and Sihanoukville Airports

Finalized installing fiber optic cable across the country

Construction of new power plants

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ACCESS TO BORDER CROSSINGS

To Thailand

NR-48

NR-57

NR-62

NR-64

NR-68

To Vietnam

NR-2

NR-33

NR-72

NR-74

NR-78
* New Route No

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9/8/2014

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CAMBODIAN RAILWAY MAP

48Km Sisophon-Poipet

105km Serei Saophoan-Siem Reap

Propose new link
273km Snoul-Strung Treng to
Laos Border.
Propose new link
239km Siem Reap-Skun
Propose new link

338Km Phnom Penh-Sisophon

264km Phnom Penh-Sihanouk Ville

255km Bat Doeng-Loch Nich

(Vietnam Border).
Propose new link

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9/8/2014

SPECIAL ECONOMIC ZONES

33 SEZs have been approved

11 SEZs are in operation

22 SEZs are being built

Single Window for Import/Export Procedures

Good Infrastructure

[ Photos: Phnom Penh Special Economic Zone ]

25

Cambodias Special Economic Zones

26

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9/8/2014

Invest in Cambodia
and you have

14.7 million
customers
Invest in Cambodia
and you have

600 million
customers at
your doorstep

27

SOUND FINANCIAL SECTOR

35 commercial banks (by the end of 2013)

a) 10 Foreign Branch Banks
b) 11 Locally Incorporated
c)

14 Subsidiary Banks

9 specialized banks (including the Rural Development Bank)

38 licensed-micro-finance institutions
(7 deposit-taking micro finance institutions)

31 registered-micro finance operators

6 Non-life insurance companies

2 life insurance companies

1 re-insurance company

Capital market laws

Financial leasing law

Low NPL rate: 2.7% (2013)

Strong banking supervision - prudent reserve requirement level

28

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9/8/2014

BANK DEPOSITS (US$ MILLION)

8,000

7,560

7,000

6,736

6,000
5,193

5,000
4,313

4,000
3,320

3,000
2,328

2,521

2,000
2 000
1,316

1,000
339

413

2000

2001

539

608

2002

2003

797

909

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

29

CREDIT TO PRIVATE SECTOR (US$ MILLION)

8,000
7,352

7,000
5,846

6,000

5,000
4,326

4,000
3,241

3,000
2,388

2,000

2,511

1 595
1,595
893

1,000
228

238

269

336

451

2000

2001

2002

2003

2004

582

2005

2006

2007

2008

2009

2010

2011

2012

2013

Non-performing loans declined significiantly to 2.7% in 2013 from 9.6% in 2006

30

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9/8/2014

STOCK EXCHANGE IN CAMBODIA

Officially launched on July 11, 2011

First trading on April 18, 2012
Joint venture between Cambodian and Korean exchanges
7 Underwriters registered
2 Dealers
4 Brokers
2 Investment advisories

31

ABUNDANT RESOURCES, LABOR, LAND

Oil and gas

Minerals (bauxite, carbonate rocks, natural gas, gold, iron,

manganese,
g
, petroleum,
p
,p
phosphate,
p
, rock,, salt,, silica))

Great lake (Tonle Sap)

Beaches (more than 400km)

Monuments / Heritage Sites

Abundant land

Low labor cost & dynamic,

y
, young
y
g work force

32

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9/8/2014

POPULATION

33

INVESTMENT TRENDS
US$ Millions
12,000
10,888

10,000

8,000
7,012
5,859

6,000

4,483

4,440

4,000
2,690

2,656

2,277

2,000
1,052
218

205

238

251

229

2000

2001

2002

2003

2004

829

2005

2006

2007

2008

2009

2010

2011

2012

2013

Jun14

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9/8/2014

APPROVED INVESTMENT BY COUNTRY

1994 June 2014

US$ Million
12,000
10,000

9,869

8,000
6,000

4,454

4,000

3,725
2,643
1,526

2,000

1,309

1,038

908

924

820

395

35

APPROVED INVESTMENT BY SECTOR

1994 June 2014
Approved Investment by Sector
Agriculture
10%

Tourism
43%

Industries
30%

Service
17%

36

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9/8/2014

INVESTMENT OPPORTUNITIES

Agriculture and agroindustry

Labor intensive industries

Processing industry

Tourism sector

Transportation and logistic

ICT

Energy

Oil gas and mining

Oil,

Human resource development & education

37

REASONS TO INVEST IN CAMBODIA

Macroeconomic stability

Pro-business government

Competitive investment incentives

One-stop service investment promotion agency

Preferential access to regional & world markets

Investment protection

Efficient infrastructure and strategic location

Sound financial sector

Abundant resources, labor, land

38

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9/8/2014

COUNCIL FOR
THE DEVELOPMENT OF CAMBODIA
www.cambodiainvestment.gov.kh

H.E Keat Chhon

sambathken@yahoo.com

H.E Chanthol Sun

chantholsun@yahoo.com

H.E Sok Chenda

sokchenda@online.com.kh

H.E Chea Vuthy

cheavuthy@online.com.kh

H.E Heng Soknang

hsoknang@yahoo.com

Cambodian Investment Board: cdc.cib@online.com.kh

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