Investment Presentation

Document Sample
Investment Presentation Powered By Docstoc
					Network for East Asia Think-Tank (NEAT) Working Group
     Meeting on Trade and Investment Facilitation
              25 June 2010, Beijing, PR. China

     East Asian Trade and Investment
     Facilitation in World Economic
     Recovery: Opportunities

             Cambodia’s Perspective:
             Opportunity & Facilitation
    Key Indicators
   Land area : 181,035 sq.km.
   Population: 13.4 Million (2008)
   Labor force (young) : 7,053,398 (53%)
    (Female: 3,608,345)
   GDP growth : 10.3% per annum (last 5
    years)
   GDP per capita : $739
   Inflation rate : 5% per annum (last 5 years)
   Exchange rate: USD 1 = 4,168 Riels
   Export 2009 = USD 2,669,833,496.39
   As of 2009, there are 21,280 companies
    registered at MOC of which 2,045 newly
    registered in 2009.
Open Door Policy for Investment
 Liberal foreign investment regime
    100% foreign equity ownership investments are allowed except
     the ownership of land
    Free remittance of foreign currencies abroad.
    No price controls on products or services
    Equal treatment of all investors
    No nationalization adversely affecting the property of investors
    No foreign exchange controls on current account transactions
 Clear Legal Framework for Investment
 Sovereign Rating = B+ by Standard & Poor’s
Private Sector Development Strategy
   Investment Climate: Amendment of Law on
    Investment (2003) and its subdecree 111
    ANKr.BK (27 September 2005)
     Automatic approval - One Stop Service

   Trade Facilitation :
     Single administrative document,
     Single Window, Risk Management (Sihanouvillle Port)
     Trade Sectoral Wide Approach (Trade SWAp)

   Government-Private Sector Forum:
     Participatory approach
Enhancing the role of private sector
   Monitored by private sector in public service
   Ensure the fair competition, transparency,
    accountability, consistency and fruitful
    partnership between private and public sector
   Join consultation for setting up policy to develop
    private sector
   Commit to the Private Sector Development
    Agenda
 Pro-business Government
 The government has committed to a Pro-
  business/Investor Model
 Government-Private Sector Forum (GPSF)
   • 8 Working Groups chaired by
     Government and Private Sector’s
     representative and meeting regularly to
     address the issues relating to doing
     business and investment in Cambodia
     (monthly)
   • GPSF conducted in every six months,
     presided over by Prime Minister
 Rectangular Strategy stress the importance
  of private sector as engine of growth
 Easy access to Government Officials
 Prompt response to all inquiries
     A ONE STOP SERVICE

            Information & Application

            Approval

            Customs Duty & Tax Exemption

            Visa & Work Permit

            Company Registration



TOWARD EFFICIENCY IN CUSTOMER SERVICING
              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-
                                                                       28 working
Ministry of Land Management, Urban Planning and Construction.
                                                                          days
Initial environmental impact assessment / Ministry of Environment
Tax Department Registration / Ministry of Economy and Finance




    CDC issues a Final Registration Certificate to the Applicant
Qualified Investment Project Approval
                                                       Investor

 In Special Economic Zone                                         Outside Special Economic Zone

        Application for QIP                                Application for QIP                No Application for QIP

Cambodia Special Economic Zone Board                    Cambodia Investment Board
              (CSEZB)
                                                                                              Ministry of Commerce
                                                                  (CIB)

                                                                         •Under US$2 million ;

                                 Over US$50 million ,Natural Resources ; •to Sub-Committee on Investment
                                 •

                               •to Council of Minister via CDC           •of the Provinces-municipalities

  Conditional Registration Certificate                Conditional Registration Certificate
           (3 working days)                                     (3 working days)


    SEZ One Stop Service Office

                        Final Registration Certificate
                                                                                                Company Registration
                              (28 working days)

                                                 Construction of Factory


                                                     Start Production
Competitive Investment Incentives
 Corporate tax - 20%

 Tax holidays: up to 9 years

 Full Import Duty Exemption

 Repatriation of profit (withholding tax)

 Reinvestment of earning (special depreciation)
    Import Procedures
                               Importer or broker submits import documents



    Registration of Inward manifest, Customs               Checking of Customs declaration and supporting
     declaration, and supporting documents                                  documents


Senior officer decides whether physical inspection              Calculation and Payment of duties and taxes
                 is required or not


                                       Yes                                                  No


                  Detailed examination is done in presence of
                              importer or broker


   Discrepancy is found                              No discrepancy is found


      Goods are detained for investigation                                  Goods are released
                      Exporter submits declaration and other documents
                                         documents



    Registration of Customs declaration               Checking of Customs declaration and
                                                            supporting documents



                                                      Senior officer decides whether physical

Export Procedures                                          inspection is required or not




                                 Yes                                                   No



             Detailed examination is done in presence of
                         exporter or agent


                                                                             Export tax calculation
   Discrepancy is found             No discrepancy is found                      and payment



    Goods are detained for investigation                                       Release for exports
      Investment Protection Agreements
          Australia              Lao PDR
          China P.R              Malaysia            In Process :
                                   Netherlands          Algeria
          Croatia             

          Cuba                   OPEC                   Bulgaria
          CzechRepublic          OPIC                   Egypt
          DPR of Korea           Pakistan               Libya
                                  Philippines             Myanmar
          Germany                                     
                                  Republic of Korea       Qatar
          France                                      
                                  Singapore
          Indonesia                                      Russia
                                  Switzerland
           Japan (June 2007)                              Ukraine
                                 Thailand
           Kuwait                                         UK
                                 Vietnam
ASEAN Comprehensive Investment Agreement                  USA
ASEAN-Australia-New Zealand Investment Chapter            Hungary
ASEAN-China Investment Agreement
                                                          Malta
ASEAN-Korea Investment Agreement
ASEAN-India & ASEAN-Japan Investment Agreement (in process)
 Cambodia’s Integration into World Market
  Milestone toward globalization: Cambodia has embraced the
  globalization process as part of its outward looking economic
  development strategy….

                                                      ACCESS TO THE
ACCESS TO THE U.S MARKET
                                                      EUROPEAN MARKET




              Membership of GMS, MIGA, ICSID, WIPO,
              WCO and other international organizations



 JOINING WTO                                         JOINING ASEAN
    Most Favored Nation/Generalized
    System of Preferences: Market Access
   Australia           Germany                      Portugal
   Austria             Hungary                      ROK
   Belarus             Ireland                      Russian
   Belgium             Italy                         Federation
   Bulgaria            Korea                        Slovakia
   Canada              Luxemburg                    Spain
   China               Japan                        Sweden
   Czech Republic      Netherlands                  Switzerland
    Denmark             New Zealand

                                                      UK
   Finland             Norway
                                                      USA
   France              Poland

….and the ASEAN Integration System of Preferences (AISP) from the ASEAN 6
Investment Opportunity
 Agriculture and Agro – Industry
 Transportation and Telecommunication Sector
 Energy Sector
 Labor Intensive Industries and Export
  Oriented Industries
 Processing Industry
 Tourism Sector
 Human Resource Development
 Oil & Gas, Mining
Priority in Agriculture Development
 Create Agriculture Support and Development Fund of US$18
  million; RDB (Rural Development Bank)
 Zero tariff on importing agriculture materials such as seeds,
  fertilizers, pesticide and agricultural equipments etc.; and
 Planned further incentives for investment in processing facilities,
  rice milling for exports and investment in irrigation;
 Streamlined procedures to promote rice exports;
 Promoting farmer organization by setting up cooperatives;
 Seeds, fertilizers, agricultural extension, marketing
 Royal Decree NS/RK/0609/009 dated 20June 2009
  decided as follows; QIPs in Agriculture and Agro-Industry
  Sector shall receive the incentives of Priority period of tax
  holiday for 3 (three) years, which means Max.9years.
                                                                 17
Abundant Resources
 Land
 Great Lake (Tonle Sap)
 Beaches (more than 400km)
 Monuments/ Heritage Sites
 Oil and Gas
 Minerals (bauxite, gold, iron, manganese, phosphate
   rock, silica, zircon...)
 Low Labor Cost - Dynamic Work Force
    Infrastructure
   Law on Concession was promulgated on October 19, 2007 with
    the purpose to promote and facilitate the implementation of
    privately financed projects in Cambodia.
   Telecommunications, especially mobile phones (9 mobile
    operators) and Internet access increased by 50% a year;
     4.3 million mobile subscribers (penetration 29%);
     40,000 fixed-line services;

   Rehabilitation of road infrastructures:
     550 km during 1993-97;
     2,350 km during 1998-2003;
     600 km during 2004-2007.
Financial Sector Development
 The Financial Sector Development Strategy 2006-2015 was
    developed in March 2007 to define the Government’s long-term
    strategy for financial sector development in the country.
   27 Commercial Banks
   6 Specialized Banks
   20 Micro-Finance Institutions
   60 Micro-Finance NGOs
   7 Insurance Companies
   Capital Market Laws
   Financial Leasing Law
   Low NPL Rate
Investment Trends (1994-2004)
                                                                        US$ Million

2,500          2,243

2,000


1,500


1,000                                853
                       763    744
        506                                 448
 500                                                             238      251    229
                                                   218    205

   0
        1994




                              1997




                                                   2000




                                                                 2002

                                                                          2003
               1995

                       1996




                                     1998

                                            1999




                                                          2001




                                                                                 2004
Investment Trends (2005-2009)
                                            US$ Million

                                   10,891
12,000

10,000

 8,000                                       5,859
                   4,415
 6,000
                           2,673
 4,000
          1,050
 2,000

    0




                                   2008




                                             2009
         2005




                  2006




                           2007
   Investment Trends by Country and Sector
                 (1994-2009)
US$ Million
                               Shares by Sector
Legal Framework for Trade
   Law on Negotiable Instruments and Payment
    Transactions (2005)
   Law on the Adoption and Implementation of
    United Nations Convention on the
    Recognition and Enforcement of Foreign
    Arbitral Awards (2001)
   Law on the Management of Quality and
    Safety of Products and Services (2000)
   Law on the Amendments of the Law on the
    Commercial Regulations and Commercial
    Register (1999)
Legal Framework for Trade
   Law on Foreign Exchange (1997)
   Law on the Chamber of Commerce (1995)
   Law Bearing on the Commercial Regulations
    and Commercial Register (1995)
   Law in progress:
  Law on Establishing Commercial Court
  Law on Anti-dumping, Countervailing Duty and
   Safeguard
  Regulations on Sanitary and Phyto-sanitary
   Measures (SPS)
  Law on Business Association, Cooperatives
  Law on Competition (Final Draft)
Recently Enacted or Introduced Laws and Regulations Relevant to Investment and Business (2006 – 2009)

Area                    Names of Laws and Regulations                                                                      Enactment Date
Basic                   •   The Civil Code                                                                                 •   December 2007
                        •   Law on Criminal Procedure                                                                      •   August 2007
                                                                                                                           •   December 2007
                        •   Law on Education
Business/Trade          •   Sub-Decree #124 (RGC) on Organization and Functioning of of Commercial Arbitration             •   August 2009
                        •   Law on Tourism                                                                                 •   June 2009
                        •   Notice #0569 (MOC) on Change of Certificate regarding Enrollment in the Commercial             •   February 2009
                            Register of New Form and filling in an Annual Declaration of Commercial Companies              •   December 2007
                        •   Law on Insolvency                                                                              •   June 2007
                        •   Law on Standards                                                                               •   June 2007
                        •   Law on Secured Transactions                                                                    •   September 2008
                        •   Prakas #734 (MEF) on Special Customs Procedures for Implementing in Special Economic Zones     •   February 2008
                        •   Prakas #116 on Customs Bonded Warehouse                                                        •   July 2007
                        •   Law on Customs
Agriculture             •   Law on the Adjustment to the Law on Financial Management for the Year 2009                     •   June 2009
                        •   Sub-Decree # 131 (RGC) on the Specification of Forest Products and Sub-products permitted to   •   November 2006
                            be exported and imported
Transportation          •   Sub-Decree #106 (RGC) on Establishment of the National Airline Company                         •   July 2009
                        •   Sub-Decree #124 (RGC) on Granting Concession of Cambodian Royal Railway                        •   September 2007
                        •   Law on Civil Aviation of the                                                                   •   January 2008
Land and Infrastructure •   Sub-Decree No 126 (RGC) on Management and Use of Co-owned Buildings                      •         August 2009
                        •   Law on Concession                                                                        •         October 2007
                        •   Sub-Decree #114 (RGC) on the Mortgage and Transfer of the Rights over a Long -Term Lease •         August 2007
                            or an Economic Land Concession                                                           •         June 2007
                        •   Law on Water Resource Management
Finance                 •   Law on Financial Lease                                                                         •   June 2009
                        •   Law on the Issuance and Trading of Non-government Securities                                   •   October 2007
                        •   Law on Combating Money Laundering and Terrorist Financing                                      •   June 2007
                        •   Law on State Securities/Bonds                                                                  •   January 2007
Labor                   •   Law on Amendment to Articles 139 and 144 of the Labor Law                                      •   July 2007
                        •   Sub-Decree # 16 (RGC ) on Creation of National Social Security Fund                            •   March 2007
                             Thanks
               Mr. Suon Sophal
                 Deputy Director
   Public Relations and Investment Promotion
          Mobile: +855 90 691 168
          Fax:      +855 23 427 597
     Email: sophalsuon@hotmail.com
          cdc.cib@online.com.kh
www.cambodiainvestment.gov.kh

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:1/9/2012
language:English
pages:27