INVESTMENT ENVIRONMENT AND OPPORTUNITIES IN CAMBODIA

Transcription

1 1 INVESTMENT ENVIRONMENT AND OPPORTUNITIES IN CAMBODIA Presented by Sok Chenda Sophea Minister attached to the Prime Minister Secretary General Council for the Development of Cambodia

2 TABLE OF CONTENTS 2 TABLE OF CONTENTS 1. Key Indicators 2. Investment Environment in Cambodia 2.1. Council for the Development of Cambodia 2.2. Investment Incentives and Guarantee 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 Province (Bavet) 6.2. SEZs in Banteay Meanchey Province (Poi Pet) 6.3. SEZs in Sihanouk Province 7. Pioneers

3 3 1. KEY INDICATORS

4 4 14% 12% 10% 8% 6% 4% 2% 0% 1. Key Indicators 7.0% 7.1% 7.3% 7.4% 5.9% 7.1% 7.0% 6.9% 0.1% e Agriculture Industry Service GDP Growth Population & Labor Force GDP Per Capita ( ) Population: 15.4 Million (2015) Literacy: 92.7% (15-24 years old) Young and dynamic labor force: Median age 24 years old Population growth rate : 1.54% Land area : 181,035 sq.km % 4.0% 3.0% 2.0% 1.0% 0.0% Low & Manageable Inflation 3.90% 3.80% 3.00% 3.00% 1.20% e Stable Exchange Rate (USD-Riel) e

5 5 2. INVESTMENT ENVIRONMENT IN CAMBODIA

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

7 2.2. Investment Incentives and Guarantee 7 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

8 8 Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries (28) Czech Netherland Germany Belarus Russia DPRK United States 1. Australia 2. Austria 3. Bangladesh 4. Belarus 5. China 6. Croatia 7. Cuba 8. Czech 1. DPRK 9. France 10. Germany 11. Hungary 12. Japan Cuba France 13. Kuwait 14. Lao PDR 15. Malaysia 16. Netherlands 17. OPEC 18. Pakistan Austria Switzerland Hungary 19. Philippine 20. ROK 21. Russia 22. Singapore 23. Switzerland Croatia OPEC Kuwait Thailand Pakistan China Malaysia Lao PDR Singapore 24. Thailand 25. USA (OPIC) 26. Vietnam 27. Belarus 28. United Arab Emirates Vietnam Philippines ROK Japan

9 9 3. INVESTMENTS IN CAMBODIA CAMBODIA THE NEW ECONOMIC FRONTIER

10 Investments by Country (in Billion USD) Year Total $4.9 Billion $3.9 Billion $4.6 Billion $3.6 Billion $6.3 Billion Rank Country % Country % Country % Country % Country % 1 Cambodia Cambodia Cambodia China Cambodia China China China Cambodia China Vietnam 6.10 Malaysia 2.18 U.K 3.00 Japan Vietnam Thailand 4.37 Japan 1.72 Singapore 2.18 Thailand 4.61 Malaysia Korea 1.76 Korea 1.66 Vietnam 1.92 Korea 4.59 Singapore Japan 1.59 Vietnam 1.26 Malaysia 1.61 US 3.38 Korea Malaysia 1.04 UK 1.13 Japan 1.28 Singapore 3.38 Japan Singapore 1.03 Singapore 0.89 Thailand 1.18 Vietnam 2.45 UK UK 0.43 Thailand 0.88 Korea 0.21 UK 0.60 Thailand France 0.27 Australia 0.51 Canada 0.19 India 0.55 British Virgin Islands 11 Others 0.94 Others 1.36 Others 0.52 Others 0.53 Others

11 3.2. Investments by Sector

12 4. REASONS TO INVEST IN CAMBODIA 12 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 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 One-stop service 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 = %) Information & Application Fast-Track Investment Approval Process: all documents will be processed within only 28 working days. Customs Duty & Tax Exemption Visa & Work Permit

13 4. REASONS TO INVEST IN CAMBODIA 13 Young and Dynamic Population Female 2023 Female Male 6% 1% 4% Male 6% 1% 4% 9% Competitive labor force Reasonable wage: (minimum wage in 2018: $170) 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

14 14 Market access and Preferential trading status ASEAN Market (AEC): pop. 643 M, GDP $2.5 Tri. ASEAN + China, Japan, Korea, India, Australia & New Zealand (RCEP): pop. 3.3 B, GDP $17.1 Tri. Market Access: US, EU, Japan etc. GSP: 32 countries MFN: WTO members

15 STRATEGIC LOCATION 15 And Beyond Vietnam 1h:30 flight on average

16 GMS Infrastructure Connectivity 16 GMS Infrastructure Connectivity in Roads Telecommunications Power Transmission Line

17 17 + Cambodia is a member of ASEAN Economic Community and Regional Comprehensive Economic Partnership (RCEP)

18 18 5. CAMBODIA INDUSTRIAL DEVELOPMENT POLICY

19 19

20 20 VISION New growth strategy A transformation and modernization of Cambodia s industrial structure from a laborintensive 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 knowledgebased 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, andphnom Penh- Poi Pet). Improving Industrial Relations and Building modern institutions for vocational and technical training / human resources development needed by industries. Developing andtransforming Sihanoukville Province into a multi-purpose SEZ.

21 21 PRIORITY INDUSTRIAL SECTORS New industries with the capability of breaking into new markets, with high valueadded products, creative and highly competitive such as machinery assembly, mechanic/electronic/electric equipment assembly, means of transport assembly and natural resource processing 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. Agro-industrial production for export and domestic markets 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 Industries serving regional production lines and those of future strategic importance such in ICT, energy, heavy industries, cultural/historical/traditional handicraft, and green technology.

22 22 6. SPECIAL ECONOMIC ZONES IN CAMBODIA

23 23 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

24 Pop: 616,232 Adult: 56% (age 18-60) 6.1. SVAY RIENG 24 SCHOOL Student 262 Primary 71, Secondary 12, High 20,833 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 TVET: 1 Student: Computer Services: 46 - Auto Mechanic: 5 - Auto Repair: 20 Electrical: IT: 65 English: 85 - Animal Science: 20 Others 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% 11.86% 35.57% 26.55% 23.68%

25 KM 3h:20min drive 90 KM 2h:40min drive BAVET Cai Mep Port

26 6.1. SVAY RIENG 26 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

27 27 Pop: 747,402 M: 49% F: 51% Young: 31% (age 15-35) SCHOOL Student 408 Primary 92, Secondary 12, High 21, 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) 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 Total Investment Projects: 14 Total Investment Capital: Approx. USD 76 Million Total employment: 2,408 Investment Activities: Garment 6% Jewelry Processin g & Box 2% Auto Parts Assembly 30% Steel 1% Electronic Equipment 62% Japan Thailand 7.93 % %

28 KM 4h:40min drive BANTEAY MEANCHEY Laem Chabang Port 388 KM 7h:40min drive

29 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. 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.

30 30 Transforming Sihanouk Province into Multi-Purposed Special Economic Zone Phnom Penh to Sihanouk Province: 230 km Cambodia s industrial heartland and gateway to the world Cambodia s deep sea port Multi-modal transportation: Road, rail, port, airport Multi-Purposed Special Economic Zone, following Special Administrative Region (IDP ) 6.3. SIHANOUK PROVINCE Special Economic Zones 1. Sihanoukville SEZ 2. Sihanoukville Port SEZ 3. Sihanoukville SEZ 1 4. H.K.T SEZ Total Investment Projects: 97 Total Investment Capital: Approx. USD 1.3 Billion Total employment: 18,623 Investment Activities (in progress):

31 KM 4h:00min drive SIHANOUK PROVINCE Sihanoukville Port

32 SIHANOUK PROVINCE Key projects in development National Road 4 upgrading and widening ( ) Phnom Penh-Sihanouk Expressway Development Project ( ) Sihanoukville Port Capacity Enhancement Project, Vessel Trafficking Management Information System, Sihanoukville Port Service Improvement Project ( ) Southern line/sihanoukville Port Access Railway Improvement Project ( )

33 33 7. The Pioneers

34 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