investment environment and opportunities in cambodia cambodia, tokyo presentation 4 nov...
TRANSCRIPT
Investment Environment and
Opportunities in Cambodia
Chea Vuthy
Deputy Secretary General
Cambodian Investment Board/ Cambodian Special Economic Zone Board
Table Content
• Key Indicators
• Investment Environment
• Industrial Development Policy 2015-2025
• Reasons to invest in Cambodia
Key indicators
Low & Manageable Inflation
Population & Labor Force
• Population: 15 Million
• Literacy: 92.7% (15-24 years old)
• Young and dynamic labor force: Median age 24
years old
• Population growth rate : 1.54%
GDP Growth (2004-2017)
Stable Exchange Rate (USD-Riel)
GDP Per Capita (2004-2017)
Land area :
181,035 sq.km.
Lao PDR
10.0%
13.3%
10.8%10.2%
6.7%
0.1%
5.9%7.1% 7.3% 7.4% 7.1% 7.0% 7.0% 7.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017p
Agriculture Industry Service GDP Growth
2.9% 3.0%3.9%
1.2%
2.8%3.7%
0.0%1.0%2.0%3.0%4.0%5.0%
2012 2013 2014 2015 2016e 2017p
402 468 534 623 738 731 830 909 990 10361138121513001422
0
500
1000
1500
40344025
40394050 4050 4050
4000
4020
4040
4060
2012 2013 2014 2015 2016e 2017p
Investment Environment
TaxIncentives
InvestmentFacilitation
100% foreign ownership
Open Door Policy
Tax holiday (corporate income tax
exemption) for up to 9 years
or Special Depreciation up to 40%
in first year
20% of corporate income tax
Import duty exemptions for
machinery and equipment
One Stop Services
No nationalization
No local content requirements
No export requirements
Customer Approach (assist investors with various applications)
Easing & speeding procedures for all investors
No restriction on foreign exchange and No capital control
No price controls on products or
services
Aftercare Services
Investment Tracking SystemImport duty exemptions for
production inputs/ raw materials
Consider for automated systemConsider to introduce a SMART
Incentive Scheme
Investment Trends
12
,45
1
5,5
75
3,0
88
2,7
70
1,7
54
1,3
78
1,3
35
1,3
13
1,0
19
1,1
09
1,0
51
62
4
31
0
31
0
11
9
0
2000
4000
6000
8000
10000
12000
14000
Total QIP outside SEZ (1994-1st half 2016)
82
0
35
5
21
0
13
2
12
9
58
29
21
9 6 5 3 3
0100200300400500600700800900
Total QIP in SEZ (1994-1st half 2016)
Investment inflow from 2011 onward reached US$ 24.1 billion 7
94
.50
55
6.6
0
1,1
28
.80
26
4.7
0
48
2.6
0
49
.50
1,3
40
.80
1,4
89
.70
1,1
06
.70
2,8
35
.60
91
9.3
0
72
0.0
0
2,2
82
.30
22
7.8
0
2,6
20
.80
35
3.5
0
3,1
29
.80
35
1.0
0
84
5.6
69
1.5
10
6
47
9.6
11
.9
66
2
2011 2012 2013 2014 2015 1HA LF 2016
INVESTMENT TREND (2011 - 1ST HALF 2016)
Agriculture Industries Services Tourism
SEZs and Soft Infrastructure RequiresList of Operational SEZs
Most Japanese firms: Textile, Bicycle,
Electronics, Footwear, Household
No.
NameLand Size
(ha)
#Projects
Investment(US$) Worker
s
1.Manhattan Svay Rieng SEZ
157 32 405,915,252 26,507
2. Tai Seng Bavet SEZ 99 26 137,369,946 8,454
3. Shandong Sunshell SEZ 96 3 8,300,000 4,054
4. Dragon King Bavet SEZ 106.5 3 9,364,437 1333
5. Phnom Penh SEZ 350 85 549,027,491 18,383
6. Sihanoukville SEZ 1113 90 253,844,146 14,117
7. Sihanoukville Port SEZ 70 3 22,943,071 532
8. Sihanoukville 1st SEZ 178 2 738,400,000 310
9. H.K.T SEZ 345 11,911,210,000
10.
Neang Kok Koh Kong SEZ 335 5 59,917,153 7500
11.
Choak Kampong Soam SEZ
185
12.
Kampot SEZ 145 1
13.
Poi Pet O Neang SEZ 467 5 7,693,109 1220
14.
Sanco Poi Pet SEZ 66.5 5 22,347,782 989
Cambodia Industrial Development Policy (IDP) 2015-2025
Vision Priority Sectors
• A transformation and modernization of Cambodia’s
industrial structure from a labor-intensive industry to
a skill-based industry by 2025
• Linking with global value chain
• Integrating into regional production networks and
developing clusters
• Strengthening competitiveness and improv-ing
productivity of domestic industries
• Matching toward developing a modern technology
and knowledge-based industry
• Agro-industry/processing
• Tourism and related industries
• Manufacturing
• Automotive part industry
• Electrical and electronic industry
• Higher value added manufacturing
• SME linkage
Key Priorities to be achieved by 2018
• Improving electricity supply to key industrial areas/estates: reduce the electricity tariff from 18.8 cents/kwh
in 2014 to 12 cents/kwh
• Building multi-modal transport and logistic system to connect to 3 keys industrial corridors (Phnom Penh-
Sihanoukville, Phnom Penh- Bavet, and Phnom Penh- Poi Pet.
• Building modern institutions for vocational and technical training / human resources development needed by
industries.
• Develop and transform Sihanoukville Province into a multi-purpose Special Economic Zone.
IDP Guidance
New Law on Investment Law on Special Economic Zones
• Pioneer status
• SMEs : supporting activities
• Incentives for provision of:
o Accommodation
o Transportation
o Canteen
o Training
• Effective development, revocation if no
development
• Timely provision of basic infrastructures
• Streamlining administrative procedures :
o Customs extra territory status
o Construction permit
o Environment requirement (EIA)
o Factory licensing
o Worker health control
o Tax registration (ID)
o C.O. online
o Master list online
Review and amend the Law on Investment and Adopt Law on Special Economic Zones
IDP Orientation: Investment Opportunities
Automotive-part-industry
ManufacturingAgro-industries/Processing Tourism & related industry
Electrical & Electronic Higher value added manufacturing
Cooperation Cambodia-Japan
In accordance with article 23 of the Bilateral Investment Agreement between Cambodia and Japan signed in 2007, a Joint Committee has been established and met 14 times. Last meeting had been on 19th October 2016, Phnom Penh.
Issues have been addressed at these Joint Committee Meetings including:
• Industrial Relations,
• Trade Facilitation,
• Logistics: reducing cost of doing business and
• Cooperation projects, etc.…
Expectation toward Japanese FDI
• Help us to enhance economic corridor development and reduce the cost of doing business including transportation
• Reduce loss and damage of goods in transit
• Minimize the time spent in transit and increase reliability of logistics
• Develop value-adding activities to expand employment along and around economic corridors
• Attract increased foreign investment into value-added activities
Thank you!
H.E. Mr Chea Vuthy | T: (855-12-827-672) | E: [email protected]
More information | T: (855-23-981-154) |E: [email protected] |
| www.cambodiainvestment.gov.kh | https://www.facebook.com/cambodiainvestment.gov.kh/?fref=ts |