INVESTMENT OPPORTUNITIES in Cambodia

1. INVESTMENT OPPORTUNITIES in Cambodia presented by CHEA VUTHY Deputy Secretary General of the Cambodian Investment Board the Council for the Development of Cambodia

2. Key Indicators • Land area : 181,035 sq.km. • Population: 14.1 Million • Labor force (young) : 7,053,398 (Female: 3,608,345) • Population growth rate : 1.54% • GDP (2011) : 6.5 % • GDP per capita in 2011 : $909 • Inflation (2011) : 5.5% • Exchange rate: USD 1= 4,000 Riels

3. Robust economic growth • High economic growth during the decade before the onset of the global financial crisis.

4. COUNCIL FOR THE DEVELOPMENT OF CAMBODIA OPEN DOOR POLICY ONE STOP SERVICE Business Friendly Customer Servicing ONE STOP SERVICE

5. Council for the Development of Cambodia (CDC) Samdech Akka Moha Sena Padei Techo HUN SEN Prime Minister of the Kingdom of Cambodia Chairman H.E. Mr. Keat Chhon, Deputy Prime Minister Minister of Economy and Finance 1st Vice Chairman Trouble Shooting Committee H.E. Mr. Cham Prasidh, Senior Minister, Minister of Commerce 2nd Vice Chairman H.E. Mr. Sun Chanthol Senior Minister in charge of Special Missions Permanent Vice Chairman H.E. Mr. Kong Vibol Secretary of State of Economy & Finance Vice Chairman H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General CSEZB H.E. Mr. Chhieng Yanara Secretary General CRDB H.E. Mr. Sok Chenda Sophea Secretary General CIB H.E. Ms. Heng Sokun Deputy Secretary General CRDB H.E. Mr. Rith Vuthy Deputy Secretary General CRDB H.E. Mr. Chea Vuthy Deputy Secretary General CSEZB H.E. Mr. CheaVuthy H.E. Mr. An Sophanara H.E. Mr. HengSoknang Deputy Secretary General CIB SEZ GMS National Secretariat ODA FDI

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

7. Licensing Authorities • Council of Ministers : CDC but needs approval from CoM for project with investment capital exceeding $ 50 million, BOT, BOOT, BOO or BLT, long-term strategy, sensitive projects: negative impact on the environment and natural resource exploitation • CDC : less than $ 50 million • Provincial Authorities : less than $ 2 million

8. 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

9. Investment Incentives • 20% Corporate Tax • Tax holidays: Trigger period +3years+n; 6y <TH<9y • Full Import Duty Exemption • Repatriation of profit (withholding tax) • Reinvestment of earning (special depreciation)

10. Investment Protection The Investment Law and Sub-decree contains a number of important guarantees for the investors: • 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

11. Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries • Malaysia • Netherlands • N. Korea • OPEC • Pakistan • Philippine • ROK • Singapore • Switzerland • Thailand • USA (OPIC) • Vietnam • Australia • Austria • China • Croatia • Cuba • Czech • France • Germany • Indonesia • Japan • Kuwait • Lao PDR

12. 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

13. Approved Investments by Country/Region (1994- 2011) US$ Million

14. Approved Investments by Sector1994 – 2011

15. Infrastructure: A definite prospect • Priority for infrastructure • Infrastructure rehabilitation • Multilateral aid availability • Decentralization • Regional opportunities • ASEAN & GMS integration • Private Participation in Infrastructure (PPI): BOT, BOO, etc…

16. Agro-business • Basic agrarian economy • Natural endowments: • Abundant land • Rich fishery resources • Organic crops • Value-added emphasis/ • Food processing • New product development

17. Tourism • World Heritage Monuments • Open Sky Policy to Siem Reap • Natural beauty - Beach - Islands • Ability to attract “add-on” trips • Novelty value

18. Tourism Center 150 km Poipet Eco-Tourism 314km Gulf of Thailand 230 km Sihanoukville Bokor (hill resort) Beach & Island Resorts

19. Visitors to Cambodia Thousand (000) Visitor arrival from 2010 - 2020

20. Top ten Markets • Vietnam • Korea • China • Japan • USA • France • UK • Thailand • Australia • Taiwan

21. Investment Opportunities • Phnom Penh • International Convention Center • High-end hotel (Four Seasons, Hyatt, etc…) at the moment there are only Intercontinental Hotel and Raffles with approximately 500 rooms. • Siemreap • International Convention Center • High-end hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etc…) at the moment there are only Raffles, Le Meridien, Sofitel, Aman resorts and Orient Express, with approximately 700 rooms. • Amusement park / recreational activities • Golf course (there are three existing golf courses) • Sihanoukville • High-end hotel (Four Seasons, Hyatt, etc…) • Golf Course

22. Manufacturing & Export • Competitive labor cost • Tax incentives • Market access • Regional arrangement

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

24. Cambodia’s Special Economic Zones PoipetO’Neang SEZ TharyKompong Cham SEZ Phnom Penh SEZ Koh Kong SEZ SouyChheng SEZ OknhaMong SEZ P (SEZ) I C KiriSakorKoh Kong SEZ GoldFame Pak Shun SEZ Sihanoukville SEZ1 No Activities Sihanoukville SEZ2 Under Construction Stung Hao SEZ S.N.CSEZ Operational Sihanoukville Port SEZ Kampot SEZ Duong Chhiv SEZ KompongSomSEZ

25. 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

26. Cambodia has embraced the globalization process as part of its outward looking economic development strategy…. ACCESS TO THE EUROPEAN MARKET ACCESS TO THE U.S. MARKET 1996 1996 JOINING ASEAN 2004 1999 JOINING WTO

27. Reasons to invest in Cambodia • Open economy • Sound Macroeconomic Environment • Competitive Investment Incentives • One Stop Service – Fast-Track Investment Approval Process (28 days) • Low Labor Cost • Strategic Location • Preferential Trading Status • Access to ASEAN and World Markets

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

29. Invest in Cambodia and you have 325 million consumers virtually at your doorstep • Invest in Cambodia and you have 14 million consumers Invest in Cambodia and you have 590 million consumers at your doorstep

30. Thank you

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