Council for the Development of Cambodia

Transcription

1 Investment Environment and Opportunities in Cambodia Presented by Senator Chhit Kim Yeat Vice Chairman of Standing Committee of Foreign Affairs, International Cooperation, Media and Information

2 I. Investment Environment in Cambodia 2

3 1. Key Indicators GDP Growth ( ) 16% 14% 12% 10% 8% 6% 4% 2% 0% 14.5% 13.3% 10.8% 11.0% 10.0% 10.2% 9.3% 9.6% 8.7% 9.0% 8.1% 7.5% 7.1% 7.1% 7.3% 7.4% 6.7% 7.0% 7.0% 5.9% 5.0% 4.3% 3.8% 3.1% 2.6% 1.6% 0.1% e 2015p 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 ( ) USD e 15p Stable Exchange Rate (USD-Riel) e 2015p 3

4 2. -CDC OPEN DOOR POLICY ONE STOP SERVICE Aftercare Service Customer Approach Pro Business Government 4

5 5. Investment Incentives Corporate Tax: 20% Tax holidays: 6 years ~ 9 years Or Special Depreciation (Reinvestment of Earning) Full Import Duty Exemption 5

6 6. Investment Guarantee (1/2) Investment Law provides full 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 6

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

8 7. Committed Investments in Cambodia (by sector) Investments by sector ( ) Tourism 10% Agriculture 15% 3, ,000.0 Infastructure 41% Industries 34% 2,500.0 Investment Capital ( Oct) Total of USD billion Million USD 2, , , (~Oct) Agriculture , Industries 1, , , , Infastructure 2, , ,129.8 Tourism Total 5, , , , ,

9 7. Committed Investments in Cambodia (by country) Year (~Oct) Total $5.7 Billion $2.9 Billion $4.9 Billion $3.9 Billion $4.4 Billion Rank Country % Country % Country % Country % Country % 1 Cambodia Cambodia Cambodia Cambodia Cambodia China China China China China Vietnam Korea 9.89 Vietnam 6.10 Malaysia 2.18 U.K U.K 4.30 Japan 9.15 Thailand 4.37 Japan 1.72 Vietnam Malaysia 4.20 Malaysia 6.04 Korea 1.76 Korea 1.66 Malaysia Korea 2.91 Thailand 4.53 Japan 1.59 Vietnam 1.26 Singapore U.S.A 2.47 Vietnam 2.89 Malaysia 1.04 UK 1.13 Japan Japan 1.15 Singapore 2.59 Singapore 1.03 Singapore 0.89 Thailand Australia 0.43 U.K 0.51 UK 0.43 Thailand 0.88 Korea Singapore 0.28 U.S.A 0.42 France 0.27 Australia 0.51 Canada Others 0.48 Others 1.21 Others 0.94 Other 1.36 Other

10 II. Investment Opportunities in Cambodia 10

11 1. Agro-business 1) Production, Processing and Commercialization of: Rice, Corn, Cassava, Sugarcane, Rubber, Cashew nut, Pepper and others 2) Livestock Farming and Aquaculture Animal breeding Animal feed production Freshwater and marine aquaculture Processing and trading Type Cultivated Area (2013) Yield (2013) Cult. Area (2018) Yield (2018) Rubber 328,771 ha (P. estate17%, ECL 41%, smallholder 42%) (Mature: 78,493ha) 85,244 tons >420,000 ha 400,000 tons Paddy 3,052,420 ha 9,389,961 tons 3,34 million ha 10,85 million tons Cassava 377,239 ha 7,933,381 tons N/A N/A Corn 180,327 ha 848,450 tons N/A N/A 11

12 2. Tourism (1/4) World Heritage Monuments Angkor Wat Temple World Heritage Site Open Sky Policy to Siem Reap Natural beauty - Beach - Islands Ability to attract add-on trips Mekong Dolphins in Kartie Province Song Saa Private Island 12

13 2. Tourism (2/4) Million Number of Visitor Arrivals ( ) Vision 2020: Visitor arrival from YEAR Visitor Arrivals (million)

14 2. Tourism (3/4) Top ten markets arrivals in ,000, , , ,000 Number of Arrivals 600, , , , , ,000 - (100,000) Vietnam China (PRC) Lao PDR Korea (ROK) Thailand Japan U.S.A Malaysia France Australia , , , , , , , , , , , , , , , , , , , ,028 share (%) 20.1% 12.4% 10.2% 9.4% 6.2% 4.8% 4.2% 3.2% 3.1% 3.0% change (%) 6.1% 21.0% 11.0% -2.4% 26.3% 4.3% 3.5% 10.5% 7.3% 1.6% Source: Ministry of Tourism 14

15 3. Labor Intensive Industries, processing and manufacturing Competitive labor cost Tax incentives Market access ASEAN Economic Community

16 4. MFN/GSP Market Access Australia Austria Belarus Belgium Bulgaria Canada China Czech Republic Denmark Finland France Germany Hungary Ireland Italy N-Korea Luxemburg Japan Netherlands New Zealand Norway Poland Portugal ROK Russian Federation Slovakia Spain Sweden Switzerland UK USA EBA (everything but arms initiative for LDCs) and the ASEAN integration System Of Preferences (AISP) from the ASEAN 6 16

17 5. Cambodia Special Economic Zones 17

18 1. 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 = 4000 ± 5%) Competitive investment incentives Tax holiday: 0% up to 9 years Low corporate tax: 20% Full import duty exemption (production equipment, contraction material, production inputs, machineries) 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 2015: 128 USD) 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 Preferential trading status Cambodia obtains EBA from EU Regional Comprehensive Economic Partnership (RCEP): ASEAN + China, Japan, Korea, India, Australia & New Zealand Market access 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. MFN/GSP 32countries & EU (EBA) Market Access The world market (WTO) EU (EBA) 18

19 2. Strategic Location Myanmar Yangon 2h:00 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 19

20 Rice Farming & Swiftlet Farming Project In Cambodia

21 Rice Farming in Cambodia

22 Land Use For Rice Paddy Farming

23 Proposed Paddy Farming Location Kampung Thum

24 Proposed Rice Farming Project Area : Kampung Thum, Cambodia. Proposed land size: 1,000 hectare Land price per hectare (free hold) : US$5,700 Total land investment : USD$5,700,000

25 Projected Profit & Loss for Rice Farming TWO CROPS PER YEAR A- FARMING AND PRODUCTION RICE FARMING IN CAMBODIA as at 01/01/2015 PARAMETER TOTAL YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 Capital Outlay (USD) Annual Planting (effective hectares) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total planted and Matured Hectarage 1,000 1,000 1,000 1,000 1,000 1,000 USD/ha MAKING DAM TO KEEP WATER (US$/ha) , PLOUGHING (US$/Ha) , , , , , ,000 PLANTING (US$/ha) , , , , , ,000 SEEDLING (US$/Ha) , , , , , ,000 IRRIGATION (US$/ha) 60 60,000 60,000 60,000 60,000 60,000 60,000 Total capital expenditure (US$) 880, , , , , ,000 Operating Expenditure (US$) Harvesting & Collection (US$/ha) , , , , , ,000 General expenditures (US$/ha) ,000 70,000 70,000 70,000 70,000 70,000 Total Operating Expenditure (US$) 230, , , , , ,000 Total Expenditure (US$) 1,110, , , , , ,000 INCOME (US$) YIELD per hectare (minimum Mt/ha) 10 PADDY PRODUCTION OF 1000 HECTARE (Mt) 10,000 10,000 10,000 10,000 10,000 10,000 PRICE OF PADDY (US$/Mt) 180 TOTAL INCOME (US$) 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 YEARLY PROFIT (US$) 690,000 1,190,000 1,190,000 1,190,000 1,190,000 1,190,000

26 Proposed Swiftlet Farming Project to combine with Rice Farming To build one swiftlet house on 1 hectare of rice field land. Objective to increase source of income on land per hectare basis. Swiftlet farming produce valuable edible birdnest product. Each kilogram of unprocessed birdnest can be sold about USD550 or higher per kilo. The initial investment: One swiftlet house 8mx24mx4 storeys. Using special domestication technology to ensure safer and faster return on investment.

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29 Domestication Technique

30 Swiftlet House located at Paddy Rice Field

31 Swiftlet House

32 Edible Bird Nest (EBN)

33 Forecasted Profit & Loss for Swiftlet Farming Project summary Total land size (sqm) 11,000,000 Number of house(s) 1,000 Building footprint 8x 24 (sqm) 192 Floors 4 Building construction area (sqm) 192 Building build up area sqm 768 Sales Per Unit House US$ 350,000 VND USD Profit % Per Hse Sales Project Cambodia Phnom Penh Sales - 350,000, ,000 Project Cambodia Phnom Penh Cost - 154,707, ,708 Gross Profit - 195,292,304 56% 195,292 Each swiftlet houses can be divided into 35 interest share unit for period of 30 years. Each interest share unit can be sold at USD10,000 per ISU Gross Profit will be approximately USD$195 million

34 Swiftlet Farming Harvesting Projection Per Swiftlet House Per Year Harvest Per Month Harvest Per Year Price Per Kg Total Revenue End Year Bird Nest Harvesting Per House (KG) Per House (KG) Unprocessed US$ Per Building US$ 1 No Harvest , nd Year Farming , rd Year farming , th Year farming , th Year Farming , th Year Farming , th Year Farming , th Year Farming , th Year Farming , th Year farming ,000 2,737,179

35 Combine Revenue & Investment Cost A.Paddy Farming Agriculture land 1000 hectare : US$5,700,000 Paddy Plantation Avg. Cost Every year starting from Year 2 from USD$650,000. Paddy farming average profit starting from Year 2 will be USD$1,190,000 per year. B.Swiftlet Farming (Based on ISU USD350,000 per house) 1 swiftlet house profit per house is USD$195, swiftlet houses profit will be US$195 million

36 THE END THANK YOU

37 Thank You For more information, please contact Senator Chhit KimYeat Phones: (855) or (855)