This document provides a summary of Cambodia's trade and investment climate presented by Mr. Chea Socheat from Cambodia's Ministry of Commerce. It outlines key economic indicators of Cambodia's growing economy including a 7% GDP growth rate. It highlights Cambodia's selling points for investment such as no import tariffs, access to ASEAN and other markets, and competitive labor costs. It describes Cambodia's investment promotion infrastructure including investment laws, economic zones, and a one stop service center. It also discusses trade facilitation initiatives and opportunities for investment in sectors such as infrastructure, tourism, and manufacturing.

1. A Snapshot of Cambodia’s Trade and
Investment Climate
Presented by Mr.
Chea Socheat
Department of Europe, Middle East, and Africa
Cambodia Ministry of Commerce
cheasocheat@gmail.com
Singapore, 09 October 2015

2. Outline
• Key Indicators of Cambodia’s Economy
• Our selling points
• Cambodia Investment Promotion and
Protection Infrastructure
• Trade Facilitation
• Ways forward

3. Key Indicators
 Land area : 181,035 sq.km.
 Population: 15.3 Million
 Labor force (young) : 7,053,398
(Female: 3,608,345)
 Population growth rate : 1.54%
 GDP Growth (2014) : 7%
 GDP per capita (2014) : $1090
 Inflation (2014) : 3.9%
 Exchange rate: USD 1= 4000 Riels

4. Our Selling Points
 Small and open economy, no tariff and non tariff
barriers
 Robust growth and political stability
 Market access to countries in ASEAN, EU, US, and
world markets due to various schemes including
preferential treatment
 Access to natural resources to cater for investments
 Open to all sectors for FDIs
 Competitive Investment Incentives
 One Stop Service – Fast-Track Investment
Approval Process

5. Our Selling Points
 Competitive labor cost
 Less stringent performance requirement
Favorable labour and environmental protection laws and
regulations (foreign workers allowed)
 100% foreign equity
 no limited license in banking sector and
telecommunication
 no requirement in technology transfer

6. Cambodia Investment Promotion and
Protection Infrastructure
• Amendment to the law of investment (1994) and revised
version (2003)
• IDP (2015-2025)
• Bilateral Investment Promotion and Protection Agreements
• One stop service-CDC for investment projects
• Special Economic Zones including Sihanouk Ville
• Simplification of administrative procedures
• Trouble Shooting Committee- Government Private Sector
Forum (GPSF)
• Investment incentives and prohibited investment projects
• Investment after care service
• International marketing through oversea representatives

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

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

9. OPENDOORPOLICY
ONESTOPSERVICE

10. Organizational Structure

11. Information & Application
Approval
Customs Duty & Tax
Exemption
Visa & Work Permit
Company Registration
A ONE STOP SERVICE

12. Licensing Authorities

13. Investment Approval
Investment application
CDC issues a Conditional Registration Certificate to the Applicant
 Company Registration / Ministry of Commerce
 Relevant licenses, as appropriate / Ministry of Mine 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
CDC issues a Final Registration Certificate to the Applicant
3 working
days
28 working
days

14. 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

15. Cambodia’s Special Economic Zones
No Activities
Under Construction
OperationalKampot SEZSihanoukville
Port SEZ
Poipet O’Neang SEZ
Sihanoukville SEZ1
Sihanoukville SEZ2
Stung Hao SEZ
S.N.C SEZ
Kompong Som SEZ
Koh Kong SEZ
Souy Chheng SEZ
Oknha Mong
SEZ
Kiri Sakor Koh Kong
SEZ
P (SEZ) I C
Thary Kompong Cham
SEZ
GoldFame Pak
Shun SEZ
Duong Chhiv SEZ
Phnom Penh
SEZ
M D S Thmor Da
SEZ
H K T
SEZ
Kandal
SEZ
Dragon King SEZ

16. Government-Private Sector Forum

17. Government Private Sector Forum

18. 1. World Bank Investment Climate Assessment lists the G-PSF as one of the
key factors for the economic success of Cambodia
2. Royal Government of Cambodia uses the G-PSF to propose measures to
respond to the crisis – several consultations on-going
3. 2009 Memo from World Bank to RGC recommends using the G-PSF for
identification and monitoring of reforms
4. G-PSF is an integral apparatus of the RGC for private sector consultation
and engagement of development partners in technical assistance.
5. Review of 31 PPDs worldwide shows G-PSF as among highest performers.
G-PSF a highly successful reform platform

19. Government-Private Sector Forum

20. Investment Incentives
 20% Corporate Tax
 Tax holidays up to 9 years
 No tax on export
 Full Import Duty Exemption
 Reinvestment of earning (special depreciation)

21. Prohibited Investments
Prohibited investment projects concern national security,
social safety, and national economic necessity.
Prohibited projects include:
- Production and processing of psychotropic substances or
narcotic substances;
- Production of poisonous chemicals, agriculture
pesticides and insecticides, and chemicals prohibited by
international agreements and the WHO.
- Processing and production of electrical power from
imported waste,
- Exploitation of forest prohibited by the Forestry Law, and
- Any other investment activities prohibited by other laws

22. Encouraged Investment Activities
Agriculture and agro-industry
Transport and telecommunications
Energy and electricity
Labor-intensive industries, processing and
manufacturing;
Tourism
Human resource development
Oil & Gas, Mining

23. Investment Opportunities
• Infrastructure: convention center, hotels,
flyover, bridge
• Resorts
• Logistics
• Food processing
• Power plant, energy sector
• Electronic industry
• Sewage plant/recycling plant

24. Cambodia Ministry of Commerce

25. Trade Facilitation
• Reengineering
• Single stop service for C/O application
• Online business registration
• Automation of Certificate of Origin registration
• Self Certification
• Online payment through banks
• Digital signature and E-stamp
• Hotline for trade support services

26. Ways Forward
• Trade repository with full features
• National single window
• Branding
• Upgrade SMEs
• Enhance skilled workforce pool and
productivity
• Strengthen the law enforcement on IPR

27. THANK YOU