Cambodia Country OutlookAsia Pacific Business Outlook Conference 2015
U.S. Commercial Service, Thailand
Cambodia at a Glance
Location: Mainland Southeast Asia bordered with Thailand, Vietnam and Lao PDR
Land area: 181,035 sq. km. (69,900 sq. mi.); about the size of Missouri
Population: About 14.67 million
Religion: Buddhist
Language: Khmer
Climate: Tropical monsoon
Political Overview
Government type: Multiparty democracy under a constitutional monarchy
King: Preah Norodom Sihamoni as head of state
Prime Minister: Hun Sen
Main political parties: CPP (ruling party) and CNRP (opposition party)
National and sub-national election every 5 years
Next national election in 2018
Economic Overview
GDP per capita: $ 1,130 (2014 estimate)
Real GDP growth rate: Approx. 7% (2014 estimate)
Investment value in 2014: USD 408.75 million
42% are industry investment of which half are
garment factory
Dollarized economy
2014 average exchange rate: 4050 Riel/USD
Main drivers of exports are garment products and rice
33% of total exports, mainly garment, are to the U.S.
(2013 figure)
Agriculture 29.70%
Industry 25.31%
Services 39.21%
GDP by Sector
Best Prospect of Doing Business in Cambodia
Agribusiness and Food Processing
Education
Tourism Infrastructure and Resorts
Construction
Cambodian Market: Opportunities
Pro-business, pro-growth policy
Low labor & business costs
Abundant natural resources, including oil & gas
Liberal policy towards foreign worker inflow
Investors can set up 100% foreign-owned investment projects
Largely dollarized economy & absence of capital & exchange controls
Strategic location in an increasingly integrated and connected Greater
Mekong Sub-region and ASEAN
Cambodian Market: Challenges
Corruption
Inefficient government bureaucracy
Limited pool of skilled workforce
Inadequate transport & communications infrastructure
Undeveloped financial & banking system
Ineffective legal system
Lao PDR Country OutlookAsia Pacific Business Outlook Conference 2015
U.S. Commercial Service, Thailand
Lao PDR at a Glance
Location: Mainland Southeast Asia bordered with
Thailand, China, Burma, Vietnam and Cambodia
Land area: 236,800 sq. km.
Population: About 6.66 million
Main cities: Vientiane (capital), Savannakhet, and Luang
Prabang
Language: Lao and others
Climate: Tropical monsoon
Lao Political Overview
Government type: One-party rule by the Lao People’s Revolutionary
Party (LPRP)
Head of State: Lt. Gen. Choummali Saignason, the President
Head of government: Thongsing Thammavong, Prime Minister
National government: The LPRP dominates the government and the
bureaucracy
Next national election: April 2016
Legal system: Civil Law system similar in form to the French system
Lao Economic Overview
GDP per capita: $ 3,100 (2013 estimate)
Real GDP growth rate: Approx. 8.3% (2013)
Main Industry: mining (copper, tin, gold, gypsum),
timber, electric power, agricultural processing,
rubber, construction, garment, cement, and
tourism,
Labor force by occupation: agriculture 73.1%,
industry 6.1%
Agriculture26%
Industry34%
Services40%
GDP by Sector
U.S. and Lao Trade Relations
Import
Laos was the United States’ 151st largest source of goods import in 2013
U.S. goods imports from Laos totaled $ 31 million in 2013
Export
Laos was the United States 183rd largest export market in 2013
U.S goods exports to Laos in 2013 were $ 25 million
The top export categories were: Precious Stones (diamonds and platinum), Machinery, Vehicles, Other base metals, and Optic al Medical instrument
U.S. exports of agricultural products to Laos totaled $ 2 million in 2013
Lao Market- Opportunities & Challenges
Advantages:
Political stability
Low costs of land, labor & energy
Plentiful land & water resources
Abundant mineral resources
Challenges:
Small market, with low purchasing power
Undeveloped basic infrastructures & logistics, scarce skilled labor
Unstable currency, difficult for investment plan
Protective regulation, rather than investment promotion oriented
Thank You
U.S. Commercial Service Thailandwww.export.gov/thailand/www.export.gov/ASEAN
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American Chamber of Commerce in Cambodia
http://amchamcambodia.net/