Cambodia Country Outlook Asia Pacific Business Outlook Conference U.S. Commercial Service, Thailand
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1 Cambodia Country Outlook Asia Pacific Business Outlook Conference 2015 U.S. Commercial Service, Thailand
2 Cambodia at a Glance Location: Mainland Southeast Asia bordered with Thailand, Vietnam and Lao PDR Land area: 181,035 sq. km. (69,900 sq. mi.); about the size of Missouri Population: About million Religion: Buddhist Language: Khmer Climate: Tropical monsoon
3 Political Overview Government type: Multiparty democracy under a constitutional monarchy King: Preah Norodom Sihamoni as head of state Prime Minister: Hun Sen Main political parties: CPP (ruling party) and CNRP (opposition party) National and sub-national election every 5 years Next national election in 2018
4 Economic Overview GDP per capita: $ 1,130 (2014 estimate) Real GDP growth rate: Approx. 7% (2014 estimate) Investment value in 2014: USD million 42% are industry investment of which half are garment factory Dollarized economy 2014 average exchange rate: 4050 Riel/USD Services 39.21% GDP by Sector Agriculture 29.70% Industry 25.31% Main drivers of exports are garment products and rice 33% of total exports, mainly garment, are to the U.S. (2013 figure)
5 Best Prospect of Doing Business in Cambodia Agribusiness and Food Processing Education Tourism Infrastructure and Resorts Construction
6 Cambodian Market: Opportunities Pro-business, pro-growth policy Low labor & business costs Abundant natural resources, including oil & gas Liberal policy towards foreign worker inflow Investors can set up 100% foreign-owned investment projects Largely dollarized economy & absence of capital & exchange controls Strategic location in an increasingly integrated and connected Greater Mekong Sub-region and ASEAN
7 Cambodian Market: Challenges Corruption Inefficient government bureaucracy Limited pool of skilled workforce Inadequate transport & communications infrastructure Undeveloped financial & banking system Ineffective legal system
8 Lao PDR Country Outlook Asia Pacific Business Outlook Conference 2015 U.S. Commercial Service, Thailand
9 Lao PDR at a Glance Location: Mainland Southeast Asia bordered with Thailand, China, Burma, Vietnam and Cambodia Land area: 236,800 sq. km. Population: About 6.66 million Main cities: Vientiane (capital), Savannakhet, and Luang Prabang Language: Lao and others Climate: Tropical monsoon
10 Lao Political Overview Government type: One-party rule by the Lao People s Revolutionary Party (LPRP) Head of State: Lt. Gen. Choummali Saignason, the President Head of government: Thongsing Thammavong, Prime Minister National government: The LPRP dominates the government and the bureaucracy Next national election: April 2016 Legal system: Civil Law system similar in form to the French system
11 Lao Economic Overview GDP per capita: $ 3,100 (2013 estimate) Real GDP growth rate: Approx. 8.3% (2013) Main Industry: mining (copper, tin, gold, gypsum), timber, electric power, agricultural processing, GDP by Sector rubber, construction, garment, cement, and tourism, Labor force by occupation: agriculture 73.1%, industry 6.1% Services 40% Agriculture 26% Industry 34%
12 U.S. and Lao Trade Relations Import Laos was the United States 151st largest source of goods import in 2013 U.S. goods imports from Laos totaled $ 31 million in 2013 Export Laos was the United States 183rd largest export market in 2013 U.S goods exports to Laos in 2013 were $ 25 million The top export categories were: Precious Stones (diamonds and platinum), Machinery, Vehicles, Other base metals, and Optic al Medical instrument U.S. exports of agricultural products to Laos totaled $ 2 million in 2013
13 Lao Market - Opportunities & Challenges Advantages: Political stability Low costs of land, labor & energy Plentiful land & water resources Abundant mineral resources Challenges: Small market, with low purchasing power Undeveloped basic infrastructures & logistics, scarce skilled labor Unstable currency, difficult for investment plan Protective regulation, rather than investment promotion oriented
14 Thank You U.S. Commercial Service Thailand Follow us on: American Chamber of Commerce in Lao PDR American Chamber of Commerce in Cambodia
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