China-Cambodia Business and Investment Seminar

Transcription

1 China-Cambodia Business and Investment Seminar Private Investment in Cambodia Presented by : Chea Vuthy Deputy Secretary General; Cambodian Special Economic Zone Board Council for the Development of Cambodia

2 Kingdom of Cambodia It is bordered to the North by Thailand and Laos, to the East by Vietnam and the Gulf of Thailand.

3 Cambodia Land Area : 181,035 km 2 Population: 14 Million Stable Political Environment - Election Every 5 Years Stable Macroeconomic Environment GDP Growth : 10.3% Per Annum Last 5 Years GDP Per Capita : $716 Exchange Rate : US$ 1 = Riels 4, 700 Inflation Rate : 5% Per Annum last 5 Years 3

4 Private Investment Policy Investment Facilitation : Automatic approval - One Stop Service Investment Incentive Investment protection Investment Liberalization

5 ONE STOP SERVICE OPEN DOOR POLICY

6 A ONE STOP SERVICE Information & Application Approval Customs Duty & Tax Exemption Visa & Work Permit Company Registration TOWARD EFFICIENCY IN CUSTOMER SERVICING

7 Investment Approval Investment application CDC issues a Conditional Registration Certificate to the Applicant 3 working days Company Registration / Ministry of Commerce Relevant licenses, as appropriate / Ministry of Industry and Energy Review and approval of construction plan / local authorities- Ministry of Land Management, Urban Planning and Construction. Initial environmental impact assessment / Ministry of Environment Tax Department Registration / Ministry of Economy and Finance 28 working days CDC issues a Final Registration Certificate to the Applicant

8 Investment Incentive 20% Corporate income Tax Tax holiday between 6 to 9 years No restriction on Repatriate of Profit Reinvestment of earning (Special depreciation) Full import duty Exemption No Export Tax.

9 Investment Protection The Investment Law and Sub-decree contains a number of important guarantees for the investors: Equal treatment of all investors No nationalization adversely affecting the property of investors No price controls on products or services No requirement of local equity participation No restriction on foreign exchange convertibility Free remittance of foreign currencies abroad.

10 Bilateral agreement on the promotion and protection of investments ts between the Kingdom of Cambodia and other countries 1. Malaysia 2. Thailand 3. USA (OPIC) 4. China 5. Switzerland 6. Singapore 7. ROK 8. Indonesia 9. Germany 10. Japan 11. France 12. Philippine 13. OPEC 14. Croatia 15. Cuba 16. Vietnam 17. Netherlands 18. Pakistan 19. Australia 20. N. Korea 21. Kuwait 22. Lao PDR

11 Investment Liberalization Cambodia is open equally to all investors, local and international. We welcome investments in all sectors, including banking, insurance, transportations and telecommunications. Foreign investors can own 100 percent of their business in Cambodia, in most countries 100 percent foreign ownership is not allowed.

12 Encouraged Investment Activities Agriculture and agro-industry Transport and telecommunications infrastructures Energy and electricity sectors Labor-intensive industries and export-oriented processing and manufacturing; Tourism-related industries Human resource development Mining

13 Development of Special Economic Zone (SEZ) in Cambodia Council for the Development of Cambodia (CDC) Cambodian Special Economic Zone Board (CSEZB)

14 Samdech Hun Sen Prime Minister Chairman of CDC Structure at CDC and at each SEZ Trouble Shooting Committee Cambodian Special Economic Zones Board CSEZB Secretary General Deputy Secretary General Policy and Planning Department Operation and Management Department Project Analysis and Registration Department -Chairmen of the CDC Chairman - Minister of Interior Member -Minister of the Council of Ministers Member -Minister of Economy and Finance Member -Minister of Commerce Member -Minister of Land Management, Urbanism and Construction Member -Minister of Environment Member -Minister of Industry, Mines and Energy Member -Minister of Public Works and Transportation Member -Minister of Labor and Vocational Training Member -Secretary General of the CDC Member -Secretary General of the CSEZB Secretary Zone Developer (Private Company) - Administration - Finance - Operation - Promotion - >>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>> >>> - >>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>> >>> Special Economic Zones Administration (One-Stop Service) - Representative of the Cambodian Special Economic Zone Board Chairman - Representative of the Municipal/ Provincial Authorities Member -Representative of the Custom and Excise Department Member -Representative of CAMCONTROL Member - Representative of the Ministry of Commerce Member - Representative of the Ministry of Labor and Vocational Training Member Administration Department

15 SEZ Locations

16 One Stop Service Special Economic Zone Administration Company registration and investment license Export/import permit Work permit and Labor books (both workers and expatriate) SEZA will provide on site immediate legal and administrative assistance

17 Infrastructure/Utilities in SEZ Internal roads in connection to public roads Dry port/bonded warehouse Telecommunications Electricity Industrial water supply Waste water treatment plant Dormitory and canteen

18 Investment Incentives in SEZ up to 9 years tax holiday No Value-Added Tax (for export activities) Full Import Duty Exemption: raw materials, machinery, equipment No Export Tax employment of foreign expatriate authorized up to 10% of all employees, staff and workers permanent visa for families and investors Long term lease up to 99 year Free repatriation of profit

19 Reasons to invest in Cambodia Excellent diplomatic relationship between Cambodia and PRC Political Stability Open Economy Sound Macroeconomic Environment Competitive Investment Incentives One Stop Service Fast-Track Investment Approval Process (28 days) Low Labor Cost Asian Culture Preferential Trading Status, access to ASEAN and World Markets (EU/EBA, ACFTA) Strategic Location

20 Cambodia has embraced the globalization process as part of its outward looking economic development strategy. ACCESS TO THE U.S. MARKET ACCESS TO THE EUROPEAN MARKET JOINING ASEAN JOINING WTO

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

22 Investment Trend ( (6)) 12,000 10,000 8,000 6,000 4,000 2, (6) In Million USD

23 Approved Investments by Country and Sectors Total USD 25,751 million 7,000 6,000 6,132 In Million USD 5,000 Tourism 49% 4,000 3,000 2,199 2,749 2,000 1, ,060 1, Service 23% Agriculture 5% Industry 23% C h in a H o n g K o n g T a iw a n E U M a la y s ia U S A K o re a S in g a p o re T h a ila n d J a p a n

24 Chinese Investment Trend ( ) 4,500 4,000 In Million USD 3,500 3,000 2,500 2,000 1,500 1, (6)

25 Chinese Investment Trend ( ) Number of projects

26 Council for the Development of Cambodia (CDC) Cambodian Special Economic Zone Board (CSEZB) Website: Tel: (855) Fax: (855)