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Page 1: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •
Page 2: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •
Page 3: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •
Page 4: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •
Page 5: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Seizing business opportunities in Cambodia:A fascinating country in the making

Overview of Cambodia Trade and Investment

presented byMr. CHHIENG Pich, Commercial CounsellorRoyal Embassy of Cambodia to Singapore

atThe Singapore Contractors Association Ltd (SCAL)

1 Bukit Merah Lane 2, Singapore 159760June 15, 2009

Page 6: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Brief CV of Mr. CHHIENG Pich

• 1992 :Bachelor degree in Financial Management• 1993 :Private secretary to the Vice Minister, MEF• 1994 :Private secretary to the Minister, MoC• 1997 :Deputy Director, FTD-MoC• 1999 :Commercial Counsellor, Royal Embassy of

Cambodia to the US, Washington DC• 2005 :Deputy Director, FTD-MoC• Jul 2008 :Commercial Counsellor, Royal Embassy

of Cambodia to Singapore

Page 7: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Country Profile

• Territory: 181,035 sq. km (approximately 284 times the size of Singapore).

• Location: in the Lower Mekong region, border with Thailand in the west, Vietnam in the east and Lao PDR in the north.

• Population: More than 14 million (compared to 4.84 million in Singapore as of June 2008).

• Population growth 2.2% (2007)• GDP per capita: US$818 in 2008.

Page 8: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Prospects for Sustainable Growth in Cambodia:

4 key-factors to induce Foreign Direct Investments (FDI)

• Political Stability• Macro-economic Stability• Sound, Transparent Legal Framework• Access to Key World Markets

through Trade Preferences in terms of MFN/GSP

Page 9: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

1st key-factor for investors

POLITICAL STABILITY

General Elections

- May 23-28, 1993

- July 26, 1998

- July 27, 2003

- July 27 2008

Page 10: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

The 4th term of the Royal Government of CambodiaSeptember 25, 2008 ~ September 2013

• A coalition Government between the Cambodian People’s Party (CPP) and the FUNCINPEC Party (FUN)

• Long-term alliance between these 2 parties to ensure better political stability in Cambodia

• CPP has won three consecutive elections since 1998

AllParties

123 90 2 2 3 26100.00% 73.17% 1.63% 1.63% 2.43% 21.14%

Seats allocation in the 4th Term of the National Assembly

Page 11: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

H.E. Samdech Akka MohaSena Padei Techo HUN SEN,

Prime Minister of the Kingdom of Cambodia, the

longest serving Prime Minister in Cambodia’s

history,now serving another 5-year

term (from September 2008 - till September 2013)

Page 12: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

2nd key-factor for investors

MACRO-ECONOMIC STABILITY

Page 13: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

GDP Growth (Annual Percent Change)

8.7 8.1

6.5

8.5

10.3

13.2

10.7 10.2

6

-0.5-2

0

2

4

6

8

10

12

14

2000 2001 2002 2003 2004 2005 2006 2007 2008 Pro2009

Source: IMF – April 2009

Page 14: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

GDP Growth (current price – in million USD)

3.6533.984 4.283 4.657

5.332

6.2867.264

8.69

11.18211.892

0

2

4

6

8

10

12

2000 2001 2002 2003 2004 2005 2006 2007 2008 Pro2009

Source: IMF – April 2009

Page 15: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

GDP per capita in Cambodia (US$)

288 309 326 349393

454512

648

818 853

0

100

200

300

400

500

600

700

800

900

2000 2001 2002 2003 2004 2005 2006 2007 2008 Pro2009

Source: IMF – April 2009

Page 16: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

GDP per capita in Singapore (US$)

23,01820,669 21,15122,651

26,32028,354

31,621

36,38338,972

37,169

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 Pro2009

Source: IMF – April 2009 Roughly 47 times, more than Cambodia

Page 17: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

CPI Inflation (end of period %)

Source: IMF – April 2009

-2

0

2

4

6

8

10

12

14

2000 2001 2002 2003 2004 2005 2006 2007 2008 Pro 2009

-0.8

0.6

3.7

0.4

5.66.6

2.8

10.7

13.4

3.5

Page 18: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Official Exchange Rate (Riels/US$)(average mid-point buying and selling rate)

27472570 2467

2640

2991

3774 37753910 3900 3935 3980 4031 4,116 4,046 4,000

4,136

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Jun-08

Source: MOP 2006-2010 CMDGs Progress Repor – ADB June 2008t

Page 19: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Cambodia’s Foreign Trade 1996 ~ 2008(million US$)

1,354 1,3231,922 2,160

2,785 2,999 3,1523,885 4,092

6,595

8,145

9,381

5,432

378

411 79

5

933 13

68

1496

1488 21

14

2,08

2 2,77

3 3,53

7

3,89

7

2,30

5

976

912

1127

1227

1417

1503

1664

1771 2,01

0

3,82

2 4,60

8 5,48

4

3,12

7

-7

-822

-1,5

87

343-598

-501

-332

-294

72

-1,0

59

-1,0

71

-176

-49

-4000

-2000

0

2000

4000

6000

8000

10000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Aug-08

TotalExportsImportsBalance

Source: MOP 2006-2010 CMDGs Progress Report - CED December 2007 / Camcontrol September 2008

Page 20: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Cambodia’s garment exports

-

500

1,000

1,500

2,000

2,500

3,000

3,500

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1Q 2009

26 80 223

355

650

964

1,156 1,343

1,609

1,982

2,190

2,652

2,856

3,155

601

106 28

7

512

729 82

8 959 1,

123 1,

272 1,

564

1,90

6

1,99

9

1,98

7

355

26 74

112

62 13

7 220 30

9

355 40

7

580

490 57

1 631 78

6

136

4 14 19 28 78

130 134 174 235 308

110

Total

US

EU

Others, + Canada

Source: MoC, as of June 11, 2009

Year on year:- Up 5.25%- to US down to -0.6%- to EU up 7.23%- 1Q 2009 down to -23.2%

million USD

Textiles, garments, & footwear

Note: GSP/MFN from US in 1996 and Everything , but arms initiative from EU in 1996

Page 21: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Bilateral Trade Singapore International Trade

2003 2004 2005 2006 2007 2008Total Trade 515,894 628,952 715,723 810,483 846,607 927,654

Imports 237,316 293,337 333,191 378,924 395,980 450,892

Exports 278,578 335,615 382,532 431,559 450,627 476,762

Bilateral Trade between Cambodia - Singapore

2003 2004 2005 2006 2007 2008Total Trade 665 671 672 908 788 898

Imports 130 82 167 178 128 164

Exports 536 589 505 730 660 733

Value in million Singapore dollars

Value in million Singapore dollarsSource: International Enterprise Singapore Board

Cambodia share in your total trade is 0.096% in 2008.

Page 22: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Top ten export to CambodiaNo HS Product 2007 2008

1 27101972 Other Diesel Fuel (Tne) 64,180 95,978

2 27101116 Other Motor Spirit Refined Unleaded (Tne) 51,285 68,349

3 27101971 High Speed Diesel Fuel (Gas Oil) (Tne) 83,290 52,491

4 98930010 Fuel Oil For Ships Loaded On Board For Own Consumption (Tne)

21,401 29,473

5 71081290 Unwrought Gold In Other Forms (Kgm) - 22,845

6 84735011 Parts Equally Suitable For Use With Machines Of Two Or More Of Heading 8471 Electrically Operated

20,292 17,161

7 84151000 Window Or Wall Air Conditioners Self-Contained Or Split System (Nmb)

12,596 13,197

8 84733090 Other Parts & Accessories For The Machines Of Heading 8471

1,246 11,959

9 22083010 Whiskies 46% Or Less Alc Vol (Ltr) 10,343 11,955

10 22030090 Other Beer Incl Ale (Ltr) 11,498 11,925

Source: IE Singapore – Value in S$ thousand

Page 23: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Top ten import from CambodiaNo HS Product 2007 2008

1 25059000 Other Natural Sands (Tne) 3,996 85,768

2 71081300 Semi Manufactured Gold In Other Forms (Kgm) 20,527 29,869

3 24022090 Other Cigarettes Containing Tobacco (Kgm) 37,505 6,152

4 61046900 Trousers Bib Brace Overalls Breeches & Shorts Knitted Crocheted Of Other Textiles For Women Or Girls (Ten)

143 5,807

5 61142000 Other Garments Knitted Or Crocheted Of Cotton (Ten) 1,864 4,465

6 61103000 Jerseys Pullovers Cardigans & The Like Knitted Or Crocheted Of Man Made Fibres (Ten)

4,327 2,663

7 61102000 Jerseys Pullovers Cardigans & The Like Knitted Crochetedof Cotton (Ten)

3,679 2,037

8 62171000 Other Clothing Accessories Woven 67 1,745

9 64039900 Other Footwear With Outer Soles Of Rubber Or Plastic & Uppers Of Leather (Tpr)

2,373 1,708

10 61124100 Swimwear Knitted Or Crocheted Of Synthetic Fibres For Women Or Girls (Ten)

266 1,291

Source: IE Singapore – Value in S$ thousand

Page 24: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

3rd key-factor for investors

SOUND, TRANSPARENT AND PREDICTABLE LEGAL FRAMEWORK

Page 25: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

A receptive Government

• Once every 6 months, the Prime Minister, H.E. Samdech HUN SEN, will meet with foreign and local investors in a Government-Private Sector Forum (GPSF), and will address issues of interest of the private sector.

• This mechanism has been institutionalized since Year 2000.

• In the interval of 2nd Government-PS fora, 8 Government-PS Working Groups are meeting on a monthly basis to tackle urgent issues. Only cross-cutting issues are submitted to the Forum chaired by the Prime Minister himself.

Page 26: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

The 8 Government-Private Sector Working Groups

1. WG on Agriculture and Agro-Industry2. WG on Tourism3. WG on Manufacturing and Distribution4. WG on Legislation, Taxation and Governance5. WG on Services, including Banking and Financial

Services6. WG on Energy, Infrastructure & Transport7. WG on Export Processing & Trade Facilitation8. WG on Industrial Relations

Page 27: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Investment Guarantees

• Investment law (no discrimination for all investors, no nationalization, no price fixing, 100% foreign own, land lease up to 99-year)

• Bilateral Investment Protection Agreement (1996)• Bound by WTO membership to implementing

international rules and practices in trade and investment sectors

• Multilateral Investment Guarantee Agency (MIGA)• International Convention on the Settlement of

Investment-related Dispute (ICSID)

Page 28: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

4TH key-factor for investors

ACCESS TO WORLD’S MAJOR MARKETS ON A DUTY-FREE AND

QUOTA-FREE BASIS

Page 29: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

JOININGWTO

JOININGASEAN

ACCESS TOTHE U.S.MARKET,MFN/GSP

ACCESS TO THEEU MARKET, Everything but armsinitiative

Cambodia has embraced the globalization process as part of its outward looking economic development strategy….

Page 30: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Huge Chinese Market

ASEAN-China Framework Agreement on Comprehensive Economic CooperationAgreement on trade in goods, already signed in Vientiane at the ASEAN-China Summit On December 1, 2004

Early Harvest for Cambodia418 Agricultural Products Quota-free & Duty-Free and many tariff lines related to

garment products from Jan 1, 2006

Page 31: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

General System of Preferences (GSP) from Japan (previously 226 items – since April 2007: 98% of TL Duty-free & Quota-free) and Republic of

Korea (78 items)

Page 32: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Cambodia’s implications in the ASEAN FTA

• 2010: tariffs between 0% - 5%

• 2015: tariffs 0%, with some sensitive items up to 2018

• 2018: all tariff lines at 0%

Page 33: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Council for the Development of Cambodia (CDC)

http://www.cambodiainvest.gov.kh

Investing in CAMBODIA

Page 34: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

FDI in Cambodia

Source: CDC September 12, 2008

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Aug-08

618 578 554 196 160 140 145 63

342

831

4,341

2,736

7,281

(in USD million)

Page 35: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

342.

1

201

141.

1830.

7

589.

2

241.

5

4,34

1.0

2,39

0.20

1,95

0.802,73

6

1,38

2.50

1,35

3.20

7,28

1

5,40

9.20

1,87

1.80

0

1000

2000

3000

4000

5000

6000

7000

8000

Total FDI Local Investment

2004200520062007YTD2008

Source: CDC September 12, 2008

In Million USD

Total investment in Cambodia(local and foreign direct investments)

2004-2008

$15,530.8m $9,972.1m $5,558.4m

Page 36: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Investment by Sector

364.513%

708.6026%

1,261.1047%

374.414%

IndustryAgricultureInfrastructureTourism

2007

Value in Million US$

Page 37: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Investment by Sector

117.12%

1,124.1015%

5,748.8079%

290.64%

IndustryAgricultureInfrastructureTourism

Jan-Sep 2008Value in Million US$

Page 38: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

FDIs in Cambodia in 2004 (by country)

141.13

107.96

32.24

11.377.33 6.88 5.05 3.9 3.16 2.16 1.96 1.91 0.71 0.52 0.29 0.01

15.57

0

20

40

60

80

100

120

140

160

Cam

bodi

a

Chi

naM

alay

sia

Sing

apor

eC

hine

se T

aipe

i

Fran

ce

RO

K

Thai

land

USA

Can

ada

Japa

n

Rus

sia

Uni

ted

Kin

gdom

Dom

inic

an R

ep.

Hon

g K

ong

SAR

Swed

enA

ustr

alia

Page 39: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

FDIs in Cambodia in 2005 (by Country)

280.96

241.58

68.1758.38 56.84 54.93

35.89

12.8 7.64 4.99 3.96 2 1.92 0.670

50

100

150

200

250

300

China

Cambo

dia

Chines

e Taip

eiROK

Thailan

d

Singapore

Malays

ia

United

Kingdo

mFran

ceUSA

Canad

a

Austra

lia

Indonesia

Argen

tina

Page 40: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Investments in Cambodia in 2006 (by country)

1,039.80

822.5

278

103.8 62.2 52.7 12.3 11 5.5 2.1 0.1

1,950.80

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

Cambo

diaROK

China

Russia

Thail

and

USA

Vietna

m

Singap

ore

Malays

ia UKJa

pan

Canad

a

Source: CDC January 16, 2007

In Million USD

Page 41: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Investments in Cambodia in 2007 (by country)

Source: CDC Feb 2008

461,

532,

670.

00

174,

040,

534.

00

152,

755,

504.

00

141,

526,

035.

00

131,

200,

000.

00

81,8

90,4

40.0

0

62,1

40,4

87.0

0

56,4

60,5

85.0

0

25,5

77,6

12.0

0

20,7

13,4

96.0

0

18,9

28,0

32

18,2

90,4

37

16,4

00,0

00

11,3

86,6

05

2,96

1,90

0

2,88

6,98

2

1,73

2,89

9

1,44

9,81

5

585,

403

1,32

6,14

8,86

5

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

Cambo

diaChin

a

Thaila

ndROK

Vietna

m

Saudi

Arabia

Japa

n

Kazak

hstan

Malays

ia

United

Kingdo

mNep

al

Kyrgyz

stan

Austra

lia

Norway

Singap

ore

Sweden

USAIsr

ael

Netherl

ands

Uzbek

istan

Page 42: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Investments in Cambodia in 2008 (by country)

Source: CDC September 12,2008

1,87

1,53

9,54

5

1,23

7,94

6,92

9

48,0

00,0

00

45,0

00,0

00

30,1

07,6

72

19,9

02,5

75

9,50

8,55

0

8,79

0,84

5

5,90

4,67

2

3,91

5,35

8

1,84

5,58

5

3,99

8,32

8,95

2

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

4,000,000,000

4,500,000,000

China

Cambo

diaKore

a

France

Thaila

nd

Singap

ore

Viet N

amRus

sia

Austra

lia

Malays

iaUSA

United

Kingdo

m

Page 43: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Incentives according to the Law on Investments (2003)

20% Corporate Income Tax Tax Holiday 3 years plus, (Depend on sectors & the amount of investments)

Reinvestment of profit (40% special depreciation)Reinvestment of earning (withholding tax)5-year loss carry forwardFull Import Duty ExemptionNo Export TaxLicensing (Simple registration)

Page 44: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Corporate income tax rates in selected

economies

Cambodia corporate tax is 20%. It’s quite a

competitive in the region.

Page 45: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

10 priorities set by the Royal Government of Cambodia for the 4th term of the Legislature (2008-2013)

1. Agriculture

2. Water & Irrigation System

3. Transport Infrastructure

4. Electricity

5. Human Resource

Development

6. Labor-Intensive & Export-

led Industries

7. Tourism

8. Exploitation of Oil, Natural

Gas and Other Minerals

9. Information and

Communications

Technology (ICT)

10. Trade

Page 46: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Agro-business

Basic agrarian economyNatural endowments:

Abundant landRich fishery resourcesTimber resources

Organic cropsValue-added emphasis/ Food processingNew product development

Page 47: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Infrastructure: A definite prospect

Priority for infrastructureInfrastructure rehabilitationMultilateral aid availabilityDecentralizationRegional opportunitiesASEAN & GMS integrationPrivate Participation in Infrastructure (PPI): BOT, BOO, etc…

Page 48: 1992 :Bachelor degree in Financial Management - Ministry of … - Report 14... · 2015-03-07 · Brief CV of Mr. CHHIENG Pich • 1992 :Bachelor degree in Financial Management •

Physical Infrastructures: Work in progress

Asian Highway A1: Build and Rehabilitate Bangkok – Phnom Penh –Vung Tao RoadRehabilitate RN7 from Southern Laos to Sihanoukville Deep SeaportUpgrade and Expand Sihanoukville Port

Upgrade and Expand Phnom Penh, Siem Reap and SihanoukvilleAirports

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Manufacturing & Export

Competitive labor cost

Tax incentives

• Market access

• Regional arrangement

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Tourism

Natural beauty

World Heritage Monuments

Open Sky Policy to Siem Reap

Ability to attract “add-on” trips

Novelty value

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Countries according MFN/GSPto Cambodia = 0% import duty or reduced import duty for

Cambodian exports

Australia Austria Belarus Belgium Bulgaria Canada China Czech

Republic Denmark Finland

Poland Portugal ROK Russian

Federation Slovakia Spain Sweden Switzerland UK USA

France Germany Hungary Ireland Italy Korea Luxemburg Japan Netherlands New Zealand Norway

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Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries

• Already signed:1. Malaysia2. Thailand3. USA (OPIC)4. China5. Switzerland6. Singapore (Nov 1996)7. ROK8. Indonesia9. Germany10. France

11. Philippines

12. OPEC

13. Croatia

14. Cuba

15. Vietnam

16. Netherlands

17. Pakistan

18. Austria

19. Australia

20. Japan

In the pipeline: Laos, Myanmar, Czech Republic, Ukraine, Egypt, Russia, PDR Korea, Libya, UK, Algeria…

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MORE REASONS TO INVEST

• Open economy, with most liberal investment law in the region

• Pro-business government• Low operation costs (low labor costs)• Labor-linkage to trade policy• Special Economic Zone (SEZ - 19)• Oil & gas exploration coming out soon• Annual donors countries meeting (1b)• Abundant natural resources• World class tourist site• Strategic location

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.

Phnom PenhThe Philippines

Singapore

Indonesia

MyanmarSouthern China

ManilaBangkok

Kunming

Yangon

Brunei

Jakarta

Begawan

Hanoi

Laoso Vientiane

Malaysia

Kuala Lumpur

ThailandVietnam

3hrs in average

Japan

CAMBODIA

Manufacture in Cambodia and you’ll have 565 million consumers in ASEAN, virtually at your doorstep…

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Special Economic ZonesThe 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

– Promote electronic and electric appliances industriesThe 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

– Sihanoukville

Sihanoukville Port has harbour facilities and “dry ports” which have been developed to enhance its competitive edge as an international commercial gateway

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Phnom Penh SEZ1. Company name Phnom Penh SEZ Co., Ltd.

2) Location Khan Dangkao, Phnom Penh and Ang Snuol District, KandalProvince

3) Land area 350 Ha.

4) Capital UD$68 Million

5) Zone Developer Ms. Lim Chhiv Ho

6) License from CDC No.268 dated 20 February 2006

7) Sub-Decree No. 33 dated 19 April 2006

8) Project Implementation Infrastructure Development: building fence, roads, the administrative building, entrance, electricity, water, and telecommunication system.

9) Zone Investor 1- Navy Water Production Co.,Ltd (Drinking Water)2- Bok Seng PPSEZ (Dry Port)3- Redian Industrial Co.,Ltd (Garment Factory)4- Sivil (CP) Construction Product Ltd. (Electric Pole)5- Tiger Wing Co.,Ltd (Shoe Manufacturing Factory) 6- Evergreen Industrial Co.,Ltd (Garment)7- Cambodian Success Industrial Co.,Ltd (Steel Factory)8- Yamaha Motor (Cambodia) Company Limited (Assembly)9- Agricom (Cambodia) Co.,Ltd (Sugar Packaging)

Source: CDC

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Manhattan SEZ1. Company name Manhattan International Co., Ltd.

2) Location Bavet Commune, Chantrea District, Svay Rieng Province

3) Land area 157 Ha.

4) Capital UD$15 Million

5) Zone Developer Mr. Clement Yang (Taiwan)

6) License from CDC No. 2942 dated 28 August 2005

7) Sub-Decree No.135 dated 29 November 2006

8) Project Implementation The company already built infrastructure, connecting power grid from Viet Nam and Fencing of the first phase of 70 Ha.

9) Zone Investor 1- Best Way Industry Co., Ltd. (Bicycle manufacturing )2- S.Y.G. Steel International Co., Ltd. (Bold-Nut)3- Kingmaker Footwear Co., Ltd4- Galaxy Textile Co., Ltd5- ARC Cambodia Corp. (Hi-tech equipment recycling)6- MSEZ Comfort Hospital Co., Ltd7- Pique Garment Co.,Ltd8- Forest Packaging Co.,Ltd (Package Manufacturing)9- Sheico (Cambodia) Co.,Ltd (Garment)

Source: CDC

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Tai Seng Bavet SEZ

1. Company name Tai Seng Bavet SEZ

2) Location Bavet District, Svay Rieng Province

3) Land area 99 Ha

4) Capital US$ 37 Million

5) Zone Developer Mr. Ly Hong Shin

6) License from CDC No.024 dated 04 January 2007

7) Sub-Decree No.29 dated 04 April 2007

8) Project Implementation Infrastructure Development: Fencing, landfill, connecting electricity into the zone.

9) Zone Investor 1- Atlantic Cycle Co., Ltd. (Bicycle manufacturing)2- La More (Cambodia) Ltd. (Footwear manufacturing)3- DK Inc. (Garment manufacturing)

Source: CDC

Source: CDC

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Current Licensed Special Economic Zones (SEZ)And other potential areas

O Neang Poipet SEZ

Neang Kok Koh Kong SEZ

Stoeng Hav SEZ

Kaam Samnor

Pailin

Kompong Cham

Kep

Eastern Seabordof Thailand

Ho Chi Minh-City

O’Yadao

Phnom Penh SEZSuoy Chheng Koh Kong SEZ

Duong Chhiv Phnom Den SEZ

Kirisakor Koh Kong SEZ

Oknha Mong SEZ

1st Sihanoukville SEZ2nd Sihanoukville SEZ

Sihanoukville Port SEZ

SNC Lavalin

Kampot SEZ

Manhattan Svay Reing SEZTay Seng Bavet SEZNLC SEZD&M Bavet SEZ

Goldfame pak Shun SEZ

Thary Kampong Cham SEZ

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Cambodia’s 2007 Top 10 Exporting Destinations

Ranking Partner Value (US$) Share (%)

1. U.S.A. 2,3632. Germany 2983. Canada 1884. U.K. 1875. Japan 1266. Spain 1157. Vietnam 938. Singapore 779. France 50

10. China 46

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Cambodia’s 2007 Top 10 Importing Sources

Ranking Partner Value (US$) Share (%)

1. Thailand 1,4912. China 9183. Hong Kong 6734. Singapore 4825. Vietnam 3356. South Korea 1817. U. S. A. 1538. Malaysia 1489. Japan 123

10. Indonesia 103

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Investing in Cambodia• Council for the Development of Cambodia

www.cambodiainvest.gov.kh

• Ministry of Commercewww.moc.gov.kh

• Just for your info, IE Singapore team, Regional Director (Vietnam and Cambodia) Ms. Chiong Woan Shin, is in P. Penh for a business study trip, I arranged meeting with some rice associations & a few other companies.

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