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INVESTMENT IN CAMBODIA Arranged by Mrs. Tui Pakarat-Rutten Managing Director of Intra Group of Company and the President of TBCC H/P: +66 81 839 2452 E-mail: [email protected]

INVESTMENT IN CAMBODIA - TAIA · 2014-03-05 · INVESTMENT IN CAMBODIA ... BIMSTEC Regional Cooperation: ACMECS GMS BIMSTEC IMT-GT/JDS Yangon ... Slide 1 Author: Khun_Tui

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INVESTMENT IN CAMBODIA

Arranged by Mrs. Tui Pakarat-RuttenManaging Director of Intra Group of Company and the

President of TBCCH/P: +66 81 839 2452

E-mail: [email protected]

การพัฒนาโครงข่ายเชื่อมโยงในภูมิภาคความร่วมมือในภูมิภาค

ภายใตค้วามตกลงระหว่างประเทศ

Cambodia

Bangladesh

ThailandVietnam

LaosMyanmar

China

India

Malaysia

Indonesia

SingaporeBrunei

Sri Lanka

Philippines

Japan(JTEPA)

Afghanistan

Pakistan

Korea

ACMECS

GMS

IMT-GT/JDS

BIMSTEC

Regional Cooperation:GMSACMECS

BIMSTEC IMT-GT/JDS

Yangon

Lao PDR

China Kunming

Danang

Gulf of

Thailand

Andaman

Sea

Vietbam

Myanmar

Bangkok

เชียงราย

มุกดาหาร-สุวรรณเขตแม่สอด-เมียววดี

ตราด– เกาะกง Ho Chi Minh

Cambodia

Haiphong

India

Malaysia

Source: ดร.จุฬา สุขมานพ

3

Thailand

Land area: 513 thou sq km

Population: 65.3 M

GDP per capita: US$2,727

Cambodia

Land area: 181 thou sq km

Population: 13.8 M

GDP per capita: US$393

Myanmar

Land area: 677 thou sq km

Population: 54.8 M

GDP per capita: US$255

People’s Republic of China

Land area: 633 thou sq km

Population: 93.8 M

GDP per capita: US$1,032

(figures for Yunnan and

Guangxi only)

Viet Nam

Land area: 332 thou sq km

Population: 83.1 M

GDP per capita: US$622

Lao PDR

Land area: 237 thou sq km

Population: 5.6 M

GDP per capita: US$491The GMS in 2005

Land area: 2.6 M sq km

Population: 316 M

GDP per capita: US$1,102

The Greater Mekong Sub Region (GMS)

JOINING

WTO

JOINING

ASEAN

ACCESS TO

THE U.S.

MARKET

ACCESS TO THE

EUROPEAN

MARKET

Cambodia has embraced the globalization process as part of its

outward looking economic development strategy….

CAMBODIA PROFILE

Land area : 181,035 sq.km.

Population: 14.720 Million

Labor force (young) :

7,053,398 (Female:

3,608,345)

Population growth rate :

1.54%

GDP (2011) : 6%

GDP per capita in 2011 :

$812

Inflation (2011) : 5.5%

Exchange rate: USD 1=

4053 Riels

Economic Performance

Source: SNEC & MEF

Average growth for last 5 years is 10.3%

2002 2003 2004 2005 2006 2007 2008 2009 2010

GDP per capita 331 356 402 468 534 623 738 731 830

Cambodia Population Pyramid for 2010Predicted age and sex distribution for the year 2010

PopulationYear 2008 2009 2010e 2011e

Population 13,957 14,206 14,454 14,702

Unit : million

(%) 2010 2011e

GDP Growth 6.5% 7.2%

Inflation 3.6% 8.3%

Minimum wage in Cambodia

$45.62 – $50.69 / month

Source : Cambodia Outlook 2010

Cambodia: Inbound Tourism 2009 by Months

Reasons to invest in CambodiaClose to Thailand similar language and cultureOpen economyCompetitive Investment IncentivesOne Stop Service – Fast-Track Investment Approval Process (28 days)Low Labor CostStrategic LocationPreferential Trading Status: MSN & GSP ( Most Favors Nation Treatment MSN; Generalized System Preferences) Access to ASEAN and World Markets

1. Hat Lek, Thailand/Koh Kong, Cambodia:(Cham Yeam Checkpoint) (Most direct access to Sihanoukville)

2. Chong Jom, Thailand/O'Smach, Oddar Meanchey, Cambodia3. Chong Sa Ngam, Thailand/Anlong Veng, Oddar Meanchey4. Ban Pakard, Chantaburi, Thailand/Phsar Prom Pailin, Cambodia (Prom

Checkpoint)5. Ban Laem, Chantaburi, Thailand/Daung Lem, Battambang, Cambodia

(Daung Checkpoint)

Rail Link in South East Asia

Southern Line

Phnom Penh-Sihanoukville Port

264km

Southern Line

Phnom Penh-Sihanoukville

Port

264km

AH Routes in Thailand

• AH1: Aranyaprathet-Hin Kong-Bang pa –in (-Bangkok)-Mae Sot: 701 Km

• AH2: Sa Dao-Hat Yai-Bangkok-Chiang Rai-Tachilek: 1,913 Km

• AH3: Chiang Kong -Chaing Rai: 117 Km

• AH12:Nong Lhai-Udon Thani-NakhonRatchasima-Hin Kong: 511 Km

• AH13: Nakhon Sawan-Phitsanulok-Huai Kon: 557 Km

• AH15: Nakho Phanom-Udon Thani : 243 Km

• AH16: Tak- Khon Kaen-Mukhdahan: 689 Km

• AH18: Hat Yai-Sungai Kolok: 268 Km

• AH19: Bangkok-Laem Chabang-Kabin Buri –Nakhon Ratchasima: 458 Km

• AH112: Klong Loy-Bang Saphan: 29 Km

• AH121: Mukdaharn-Yasothon-Buriram –Sakaeo: 421 Km

• AH123: BongTi-Kanchanaburi-NakhonPathom-Bangkok-Chonburi-LaemChabang-Maptaput-Rayong-Trat-HatLek: 574 Km

• Total: 6,693 km

Source : DTN Thailand

Investment Incentives

20% Corporate Tax

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

Full Import Duty Exemption

Repatriation of profit (withholding tax)

Reinvestment of earning (special depreciation)

Information & Application

Approval

Customs Duty & Tax

Exemption

Visa & Work Permit

Company Registration

A ONE STOP SERVICE

Licensing Authorities

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

CDC : less than $ 50 million

Provincial Authorities : less than $ 2 million

Investment 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 Protection

The Investment Law and Sub-decree contains a number of

important guarantees for the investors:

Equal treatment of all investors

No requirement of local equity participation

No price controls on products or services

No restriction on forex convertibility

Free remittance of foreign currencies abroad

Bilateral agreement on the promotion and protection of

investments between the Kingdom of Cambodia and other

countries

1. Australia2. Austria3. China4. Croatia5. Cuba6. Czech 7. France 8. Germany9. Indonesia10. Japan11. Kuwait12. Lao PDR

13. Malaysia

14. Netherlands

15. N. Korea

16. OPEC

17. Pakistan

18. Philippine

19. ROK

20. Singapore

21. Switzerland

22. Thailand

23. USA (OPIC)

24. Vietnam

Encouraged Investment Activities

Agriculture and agro-industry

Transport and telecommunications

Energy and electricity

Labor-intensive industries,

processing and manufacturing;

Tourism

Human resource development

Oil & Gas, Mining

Approved Investments by Country/Region(1994- Nov 2011)

Approved Investments by Sector

1994 – Nov 2011

.

Phnom PenhThe Philippines

Singapore

Indonesia

MyanmarSouthern China

ManilaBangkok

Kunming

Yangon

Brunei

Jakarta

Begawan

Hanoi

Laoso Vientiane

CAMBODIA

Malaysia

Kuala Lumpur

Thailand

Vietnam

1h:30 in average

Invest in Cambodia

and you have 600

million consumers

at your doorstep

What should we aware of investing in Cambodia?

1. How to choose the partner

2. Law and Regulation

3. Information

4. Implementation of ASEAN FTA

5. Exchange Rate and Inflation

6. Government Services Tariff

Useful link

http://www.investincambodia.comhttp:// www.ccb.com.khhttp:// www.tbcccambodia.orghttp://www.asean.orghttp://www.affalog.nethttp://www.adb.org/GMS/Cross-Border/about.asphttp://www.adb.org/GMS/Economic-Corridorshttp://www.eastasiawatch.in.thhttp://upload.wikimedia.org/wikipedia/commons/2/21/Asian_Highways.pnghttp://www.unescap.org/ttdw/FFmeeting/FFForum_2010/7.pdfhttp://info.worldbank.org/etools/tradesurvey/mode1b.asp#moreinfohttp://www.nesdb.go.th

THANK YOUSO MUCH

FOR YOUR ATTENTION

Arranged by Mrs. Tui Pakarat-RuttenManaging Director of Intra Group of Company and

The President of TBCCH/P: +66 81 839 2452

E-mail: [email protected]