Investment Environment and Opportunity in Cambodia

Transcription

1 Investment Environment and Opportunity in Cambodia Presented by Sok Chenda Sophea Minister attached to the Prime Minister Secretary General Council for the Development of Cambodia 8 th March 2017 Tokyo, Japan

2 TABLE TABLE OF OF CONTENTS CONTENTS 1. Key Indicators 2. Investment Environment in Cambodia 2.1. Council for the Development of Cambodia 2.2. Investment Incentives and Guarantee 2.3. GMS Infrastructure Connectivity 3. Investments in Cambodia 4. Reasons to Invest in Cambodia 5. Cambodia Industrial Development Policy Special Economic Zones in Cambodia 6.1. SEZs in Svay Rieng (Bavet) 6.2. SEZs in Banteay Meanchey (Poi Pet) 7. Way Forward 8. The Pioneers 2

3 1. Key Indicators 3

4 1. Key Indicators GDP Growth ( ) 16% 14% 13.3% 12% 10% 8% 6% 10.0% 10.8% 10.2% 6.7% 5.9% 7.1% 7.3% 7.4% 7.1% 7.0% 7.0% 4% 2% 0% 0.1% e Agriculture Industry Service GDP Growth 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% Low & Manageable Inflation Lao PDR Land area : 181,035 sq.km GDP Per Capita ( ) Stable Exchange Rate (USD-Riel) 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 3.9% 2.9% 3.0% 3.1% 1.2% e e 4

5 2. Investment Environment in Cambodia

6 OPEN DOOR POLICY ONE STOP SERVICE 2.1. Council for the Development of Cambodia (CDC) Aftercare Service Customer Approach Liberal Investment Regime 6

7 2.2. Investment Incentives and Guarantee Investment Incentives Corporate Tax: 20% Tax holidays: 0% up to 9 years or Special Depreciation Full Import Duty Exemption Investment Guarantee No discrimination No nationalization No requirements of local equity participation No price controls on products or services No restriction on foreign exchanges No capital control 7

8 GMS GMS Infrastructure Connectivity Connectivity GMS Infrastructure Connectivity in Roads Telecommunications Power Transmission Line 8

9 3. Investments in Cambodia

10 3.1. Investments by Country Year Total $2.9 Billion $4.9 Billion $3.9 Billion $4.6 Billion $3.6 Billion Rank Country % Country % Country % Country % Country % 1 Cambodia Cambodia Cambodia Cambodia China China China China China Cambodia Korea 9.89 Vietnam 6.10 Malaysia 2.18 UK 3.0 Japan Japan 9.15 Thailand 4.37 Japan 1.72 Singapore 2.18 Thailand Malaysia 6.04 Korea 1.76 Korea 1.66 Vietnam 1.92 Korea Thailand 4.53 Japan 1.59 Vietnam 1.26 Malaysia 1.61 US Vietnam 2.89 Malaysia 1.04 UK 1.13 Japan 1.28 Singapore Singapore 2.59 Singapore 1.03 Singapore 0.89 Thailand 1.18 Vietnam U.K 0.51 UK 0.43 Thailand 0.88 Korea 0.21 UK U.S.A 0.42 France 0.27 Australia 0.51 Canada 0.19 Others Others 1.21 Others 0.94 Others 1.36 Others 0.52

11 Investments by Sector Tourism 15% Agriculture 1% Industries 4% Agriculture 13% Tourism 39% Infrastructure 80% Agriculture 10% Infrastructure 15% Industries 33% 2008 Tourism 43% Industries 18% 2016 Infrastructure 29%

12 3.3. Japanese QIPs in Cambodia Projects No. of QIP Capital (Million USD) No. of Workers Outside SEZs 26 1,043 13,749 Inside SEZs ,655 Phnom Penh ,272 Svay Rieng ,553 Banteay Meanchey ,284 Sihanoukville Koh Kong ,014 Total 104 1,427 36,404

13 4. Reasons to Invest in Cambodia Open economy Equal treatment of all investors No requirement of local equity participation No price controls on products or services No restriction on foreign currencies convertibility Sound macroeconomic environment 6 th fastest growing economy in the world during the last two decades (average growth rate: 7.7%) Low & manageable inflation rate (under 5%) Stable exchange rate (USD 1 = %) Competitive investment incentives Low corporate tax: 20% Tax holiday: 0% up to 9 years Full import duty exemption (production equipment and machineries, contraction material, production inputs) One stop service Information & Application Fast-Track Investment Approval Process: all documents will be processed within only 28 working days. Customs Duty & Tax Exemption Visa & Work Permit Competitive labor force Reasonable wage: (minimum wage in 2017: $153) Young and dynamic labor force (median age 24 years old) Strategic location Center of ASEAN: flight time average only 1:30 hour to other ASEAN countries Market access and Preferential trading status ASEAN Market (AEC): pop. 616 M, GDP $2.5 Tri. ASEAN + China, Japan, Korea, India, Australia & New Zealand (RCEP): pop. 3.3 B, GDP $17.1 Tri. EU (EBA) Market Access GSP: 32countries MFN: WTO members EU (EBA) 13

14 Strategic Location Myanmar Yangon 1h:30 on average Thailand Bangkok Hanoi Laos o Vientiane. Kunming CAMBODIA Phnom Penh Kuala Lumpur Vietnam Malaysia Singapore Southern China Manila The Philippines Brunei Begawan Jakarta Indonesia 14

15 Council for the Development of Cambodia 5. Cambodia Industrial Development Policy

16 5. Cambodia Industrial Development Policy VISION New growth strategy A transformation and modernization of Cambodia s industrial structure from a labor-intensive industry to a skill-based industry by 2025 BY Connecting to regional and global value chain Integrating into regional production networks and developing clusters Strengthening competitiveness and improving productivity of domestic industries Marching toward developing a modern technology and knowledge-based industry 4 KEY PRIORITIES TO BE ACHIEVED BY 2018 Improving electricity supply to key industrial areas/estates (price, stability, coverage): reduce the electricity tariff from 18.8 cents/kwh in 2014 to 12 cents/kwh Preparing a master plan for the development of multi-modal transport and logistic system focusing on connection of 3 keys industrial corridors (Phnom Penh- Sihanoukville, Phnom Penh- Bavet, and Phnom Penh- Poi Pet). Improving Industrial Relations and Building modern institutions for vocational and technical training / human resources development needed by industries. Developing and transforming Sihanoukville Province into a multi-purpose SEZ. 16

17 5. Cambodia Industrial Development Policy PRIORITY INDUSTRIAL SECTORS 1 New industries with the capability of breaking into new markets, with high value-added products, creative and highly competitive such as machinery assembly, mechanic/electronic/electric equipment assembly, means of transport assembly and natural resource processing 2 SMEs in all sectors especially those involved in drugs and medical equipment production, construction materials, packaging equipment for export, furniture manufacturing and industrial equipment, etc. 3 Agro-industrial production for export and domestic markets 4 Various types of supporting industries for the agriculture, tourism and textile sectors as well as for industries serving regional production chains with either global markets or global value chains 5 Industries serving regional production lines and those of future strategic importance such in ICT, energy, heavy industries, cultural/historical/traditional handicraft, and green technology. 17

18 ត បន ស ដ ឋក ច ចព ស ស កម ព ជ Poi Pet O'Neang SEZ Sanco Poi Pet SEZ (Toyota Tsusho s Techno Park) Poi Pet PPSEZ (work in progress) Neang Kok Koh Kong SEZ Phnom Penh SEZ Sihanoukville SEZ Sihanoukville Port SEZ Sihanoukville SEZ 1 H.K.T SEZ Kerry Worldbridge SEZ Kampot SEZ Manhattan Svay Rieng SEZ Tai Seng Bavet SEZ Dragon King Bavet SEZ Shandong Sunshell Svay Rieng SEZ Hi-Park SEZ 6. Special Economic Zones in Cambodia 18

19 Pop: 616,232 M: 49% F: 51% Adult: 56% (age 18-60) SCHOOL Student 262 Primary 71, Secondary 12, High 20,833 TVET: 1 Student: 479 University: 1 Student: 3,210 - Public Admin.: 760 Banking: Management: 597 Accounting: English: 217 Marketing: Computer Science: 176 Agriculture: 85 - Rural Development: 80 Math: 57 - Animal Science: 34 - Computer Services: 46 - Auto Mechanic: 5 - Auto Repair: 20 Electrical: IT: 65 English: 85 - Animal Science: 20 Others 6.1. Svay Rieng Special Economic Zones 1. Manhattan Svay Rieng SEZ 2. Tai Seng Bavet SEZ 3. Dragon King Bavet SEZ 4. Shandong Sunshell SEZ 5. Hi-Park SEZ Total Investment Projects: 70 Total Investment Capital: Approx. USD 317 Million Total employment: 42,000 Investment Activities: Electronic and Electrical 6% Packaging 5% Watch 5% Bicycle Assembly 9% Others 10% Furniture 23% Garment and Footwear 42% Taiwan Japan China Singapore Vietnam US Hong Kong Hungary 1.21% 0.61% 0.43% 0.09% 35.57% 26.55% 23.68% 11.86%

20 6.1. Svay Rieng Proximity with Vietnam s major city and seaports Bavet to Ho Chi Minh: 70 km Bavet to Cai Mep Port: 75 km Bavet to Cat Lai Port: 90 km Key Projects in development Completed Feasibility Study on Phnom Penh Bavet Expressway Drafting MOU on Promoting the Study and Construction of Phnom Penh-Bavet and Ho Chi Minh-Moc Bai Expressway Projects Completed Phnom Penh Bavet Electricity Transmission Line (02/02/2017) Building a 10MW Solar Power Plant in Bavet

21 Bavet Ho Chi Minh Cai Mep Port Cat Lai Port

22 Pop: 747,402 M: 49% F: 51% Young: 31% (age 15-35) SCHOOL Student 408 Primary 92, Secondary 12, High 21,414 University: 4 Student: 4,142 - Management: 762 IT: 45 - Banking: 661 English: Marketing: 185 Law: Accounting: 150 Others TVET: 1 Student: Computer Services: 35 - Water System Installation: 30 - Electrical: 89 IT: 5 - Civil Engineering: 4 Auto Repair:7 - Aircon. Repair: 16 Others 6.2. Banteay Meanchey Special Economic Zones 1. Sanco Poi Pet SEZ (Toyota Tsusho s Techo Park) 2. Poi Pet O Neang SEZ 3. Poi Pet PPSEZ (work in progress) Total Investment Projects: 14 Total Investment Capital: Approx. USD 76 Million Total employment: 2,408 Investment Activities: Garment 6% Jewelry Processing & Box 2% Auto Parts Assembly 30% Electronic Equipment 62% Steel 1% Japan Thailand 7.93% 92.07%

23 6.2. Banteay Meanchey Proximity with Thailand s major city and seaport Poi Pet to Bangkok: 260 km Poi Pet to Laem Chabang Port: 250 km Key Projects in development New border crossing at Stung Bot (Poi Pet)-Ban Nong Ian (Aranyaprathet) to be constructed through a signed Agreement between the Royal Government of Cambodia and the Government of the Kingdom of Thailand on the Construction of the new Border Crossing at Stung Bot-Ban Nong Ian. Increased quota of trucks and non-scheduled buses from 40 to 150 vehicles entering Cambodia and Thailand at the Aranyaprathet-Poi Pet International Point of Entry under the GMS-IICBTA. (The MOU will enter into force by the end of March 2017.) Widening National Road No. 5 to four lanes from the current two, projected to be completed by Renovating the Northern Railway Line (Phnom Penh Poi Pet) connecting with Thailand (Railway Bridge in Poipet 80% completed).

24 Bangkok Poi Pet Laem Chabang

25 7. Way Forward Legal instruments in process: Drafting new investment law (incentives for Pioneer, targeted SMEs, welfare benefit etc.) Drafting special economic zone law (streamlined administrative procedures) Formulating new supporting regulations Further negotiation on regional and bilateral investment agreement with international partners Public services: Enhanced One-Stop Services Improved aftercare services More country desks Proactive approach for targeted promotion: Targeted industries/investors (China+1, Thai+1, ) Establishing industrial zones in targeted provinces with expectation to develop industrial clusters and industrial parks for SMEs 25

26 . 8. The Pioneers 26

27 Thank you どうもありがとうございました SOK Chenda Sophea Minister attached to the Prime Minister/Secretary General Council for the Development of Cambodia 27