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 A Semi-Monthly Briefing on China-Asean Economic Ties
                                                                         Business                                                                     Sept. 2011 No. 38
                                                                                                                                                    Table of Contents
                     On Investment Environment in Cambodia
                                                                                                                                         On Investment Environment in Cambodia
                         Speech by Her Excellency Khek Caimealy Sysoda, Ambassador of the Kingdom
                                                                                                                                         Cambodia eyes Chinese investment to boost economy
                           of Cambodia to the People’s Republic of China at the Cambodia Investment
                                                                                                                                         JOIN HANDS WITH ASEAN
                                                 Beijing, 16 September 2011
                                                                                                                                         Vietnam, Cambodia, Laos, Myanmar promote tourism cooperation
                                                                                                                                         Cambodia's largest port reports revenues up 17 pct in 8 months
      Your Excellency Xu Ningning,                                       have long enjoyed a close and trustful friendship and close
      Executive Secretary-General of the China-ASEAN Business            cooperation for many generations.                               CHINA-ASEAN ECONOMIC NEWS FLASH
      Council                                                                                                                            Chinese, Laotian presidents pledge to enhance political, economic ties
      Distinguished Guests,                                              Indeed, while holding talks, in December 2010, with the         China, Indonesia sigh multi-billion-dollar economic agreementsSino-
      Ladies and Gentlemen,                                              Cambodian delegation led by Samdech Akka Moha Sena Padei
                                                                                                                                         Malaysian economic ties strengthen
                                                                         Techo Hun Sen, Prime Minister of the Kingdom of Cambodia,
                                                                         His Excellency Premier Wen Jiabao emphasized that the           China will offer more support to outbound investment: minister
      May I, at the outset, extend a warm welcome and my personal        Kingdom of Cambodia and the People’s Republic of China
      appreciation to all the distinguished business Leasers and         have now enjoyed a comprehensive strategic partnership.         CONVENTION AND EXHIBITION
      representatives of enterprises, present here, for honouring our                                                                    China Fisheries & Seafood Expo
      invitation to attend this special conference, co-organized by      Currently, Cambodia has enjoyed peace, political and            Fenestration China
      the China-ASEAN Business Council ( CABC ) and the Royal            macro-economic stability and social progress which are the      China Plastics Expo
      Embassy of Cambodia.                                               prerequisites for national development and prosperity. Based
                                                                                                                                         China International Industry Fair (CIIF )2011
                                                                         on this solid foundation, Cambodia has actively endeavoured
      May I take this opportunity to extend, on behalf of the            to integrate itself into the region and the world, the ASEAN    Canton Textile Machinery
      Royal Government of Cambodia, my sincere gratitude to His          cooperation being of highest priority.
      Excellency Xu Ningning, Executive Secretary-General of                                                                             GLANCING AT CABC MEMBERS
      the China- ASEAN Business Council for co-organizing the            Cambodia’s accession into World Trade Organization in 2004      China Household Electrical Appliances Association
      Cambodia Investment Presentation in Beijing today, the very        was an important milestone for Cambodia and has provided the
      first conference on business and investment environment in         country with an important mechanism for trade and encouraging   CABC NEWS & EVENTS
      Cambodia to enable foreign investors, particularly, Chinese        trade focused investments. The legal and regulatory framework
                                                                                                                                         Walking into Cambodia and exploring new business opportunities
      investors to better understand the investment environment in the   has also improved in the past five years. Several laws
      Kingdom of Cambodia.                                               supporting Cambodia’s drive towards competitiveness have        Why Invest in Cambodia
                                                                         been passed. These include laws on investment, taxation,
      Since the establishment of the China-ASEAN Free Trade Area         patents, factory management and transportation.                 INTRODUCTION OF CABC
      on 1st January 2010, the trade volume between China and
      ASEAN has been increasing significantly.                           In order to improve the business and investment climate and
      The Kingdom of Cambodia and the People’s Republic of China         to comply with WTO regulations and its promises made upon

                                        China-ASEAN Business Council Chinese Secretariat
                         Tel: 86-10-64632564/64664339 Fax: 86-10-64655230 E-mail:
       Add: P.O.Box 28 Xiang He Yuan Post Office. Beijing, 100028,China Website:

China-ASEAN Business Council Chinese Secretariat                                                                                                                                                      Page 1

    the accession to WTO, the Royal Government of Cambodia               plan 2001-2005, the Cambodian government regards                 It is, therefore, of great importance for me to reiterate that
    has been putting emphasis on updating laws and regulations           foreign direct investment ( FDI ) as a major engine             Cambodia treats equally and provides the same rights to
    and the introduction of new laws and regulations in the fields       for economic development. From the viewpoint of the             both local and foreign investors except for land ownership.
    of business, trade and investment. In the last five years, such      legal framework in Cambodia, laws and regulations
    important laws and regulations were approved.                        governing FDI in Cambodia are basically designed to             However foreign investors can use land through long- term
                                                                         encourage and facilitate investments. Undoubtedly, the          leases of up to 99 years. We have opened our economy to
    As far as the principle of economic management is concerned,         Law on Investment stipulates that FDIs are treated in a         Foreign Direct Investments in all sectors including banking,
    the article 56 of the constitution of Cambodia declares that the     non-discriminatory manner except for land ownership             insurance, and telecommunications. I must stress that in
    Kingdom of Cambodia shall adopt a market economy system.             and allowed to invest freely in many areas. Under the           many countries in such sensitive sectors, foreign investors
    The constitution further says, in article 61, that the State shall   current Law on Investment, the investors who are given          are not allowed to control 100% shareholding without local
    promote economic development in all sectors and remote               Final Registration Certificates, will be entitled to various    participation. Moreover, we are actively expanding and
    areas, especially, in agriculture, handicrafts, and industry, with   incentives.                                                     deepening our financial sector by strengthening the banking
    attention to policies concerning water, electricity, roads, and                                                                      and insurance system and by establishing the Cambodia
    means of transport, modern technology and a system of credit.        Likewise, the Royal Government of Cambodia has been             Stock Exchange which operation is due in mid 2011.
                                                                         improving their investment facilitation services, for
    More importantly, article 10 of the new law on the amendment         example, the Government decided in December 2005 to             Alongside the improvements of physical infrastructure
    to the Law on investment also stipulates that the Royal              establish the Special Economic Zone Board ( The CSEZB           achieved in the past years, Cambodia has made, besides,
    Government of Cambodia shall not fix the price or fee of             ) under the Council for the Development of Cambodia             significant progress in strengthening its legal framework:
    products or services of an approved Qualified Investment             ( CDC ) to promote the special economic zone (SEZ )             although as mentioned earlier, ownership of land is still
    Project ( QIP ). Besides, article 9 of the Investment Law            scheme in Cambodia. Administered by the CSEZB, the              reserved to nationals. In this regard, I would like to inform
    stipulates that the Royal Government shall not undertake a           Special Economic Zone is to be established in authorized        you that on 5 April, 2010, the National Assembly passed
    nationalization policy, which shall adversely affect private         SEZs and provided one-stop service to zone investors            legislation allowing foreigners to own private units in co-
    properties of investors in the Kingdom of Cambodia. Thus,            from the registration of investment projects to routine         owned buildings. In combination with earlier legislation
    Cambodia facilitates economic and business activities in a           export-import approvals. The Royal Government has               organizing separate titles of ownership for condominium
    most open, reliable and secured basis.                               considered the development of Special Economic Zone             units, this is a significant development for the real estate
                                                                         (SEZ) as a priority in order to attract investment.             sector. The rights of private property investors, both
    Regarding the GSP, Investors may choose Cambodia since the                                                                           Cambodians and foreign nationals are now better protected
    country is one of the beneficiaries of the Generalized System        Your Excellency                                                 while reducing the risk for developers and for the final
    of Preferences ( GSP ) schemes operated by developed                 Distinguished Guest,                                            purchasers.
    countries. Under these schemes, import tariff on many                Ladies and Gentlemen
    products from the beneficiaries are exempted or reduced                                                                              Furthermore a number of legal and judicial reforms in
    if requirements such as rules of origin are fulfilled. Since         Since Cambodia is back on the path of strong and                the Government’s programs, such as the creation of the
    Cambodia is categorized as a least developed country ( LDC)          sustained economic growth, as witnessed by considerable         National Arbitration Centre, will address some of the
    it is entitled to additional preferences, under which more of        and encouraging achievements during the last few years,         existing gaps. Commercial arbitration will be implemented.
    its products are subject to duty-free or tariff reductions. For      I believe that this is the most opportune time for the          Currently private sector arbitrators are being trained
    example, Japan gives Cambodia tariff preferences on import           business community and all investors to assess Cambodia’s       by international experts. The Insolvency Law has been
    of 3, 600 articles plus an additional 1,200 articles including       potential and to seize investment opportunities.                promulgated, significantly improving the rights of creditors
    apparel and footwear.                                                                                                                and the transparency of enforcing debts. A new Law of
                                                                         I wish to bring to your attention that Cambodia has great       Commercial Contracts, which is being drafted, will also
    With regard to export privileges, Cambodia has been granted          potential in several important sectors such as agriculture,     improve the legal certainty relating to the most common
    Most Favoured Nation ( MFN ) status by the United States,            agro-industry, infrastructures, labour intensive industries,    contracts that are used in business.
    the European Community and other developed countries.                export oriented industries, the exploitation of natural
                                                                         resources such as oil and gas, mining as well as tourism.       The Royal Government of Cambodia will pursue its
    Concerning the policies towards the Foreign Direct Investment        These sectors have not been fully capitalized and still offer   efforts to streamline processes and formalities for private
    ( FDI ), in the second socio-economic development                    many investment opportunities.                                  investments; we will implement necessary measures to

China-ASEAN Business Council Chinese Secretariat                                                                                                                                                    Page 2

    reduce the cost of doing business in Cambodia, in particular by strengthening governance and
    lowering transportation and electricity costs. Concerning the latter, the Royal Government          Cambodia eyes Chinese investment to boost economy
    expects considerable improvement from 2011 on with the energy generated by our
    hydropower plants. Also as a first step towards simplification of administrative procedures is
                                                                                                        Relations between China and Cambodia have grown closer in recent years, with Beijing
    the establishment and operation of Special Economic Zones at the borders with Vietnam and
                                                                                                        investing billions of dollars in the southeast Asian nation to help boost its economy, an
    Thailand, in
                                                                                                        official said Friday.
    the vicinity of Phnom Penh and in Sihanoukville where is located our deep sea port. The One
    Stop Service at each of those SEZs has already reduced time and cost of transactions.
                                                                                                        China has become Cambodia's biggest source of foreign direct investment, said Mao Tianyu,
                                                                                                        division chief of the International Department of the Ministry of Commerce.
    Interestingly, a promising outlook for oil, gas and mineral resources has opened new
    economic opportunities and hope for Cambodia to become a new development zone in the
                                                                                                        Chinese companies invested 395 million U.S. dollars in non-financial sectors in Cambodia
    region, suggesting the possibility of high and sustainable economic growth in the medium to
                                                                                                        last year, an increase of 83 percent year-on-year. By the end of July 2011, China's outbound
    long-term, as well as economic diversification and faster poverty alleviation.
                                                                                                        direct investment in non-financial sectors in Cambodia amounted to 1.2 billion U.S. dollars,
                                                                                                        Mao said.
    Based on peace, political stability and development, the Royal Government has an ambitious
    vision to transform Cambodia into a fast-growing regional economy based on agro-business,
                                                                                                        Cambodia's economy has been growing rapidly but is still weak compared with other
    manufacturing and services, especially in the tourism sector.
                                                                                                        countries in the region.
    Cambodia is rich in natural resources and our human resource base has proven capability in
                                                                                                        Its gross domestic product (GDP) rose 5.9 percent year-on-year to reach 11.44 billion U.S.
    the garment sector. All of those developments are improving Cambodia’s attractiveness as a
                                                                                                        dollars in 2010, a growth rate slower than Thailand's 7.8-percent increase and also below the
    country to invest. Cambodia is now in a strong position to attract a more diversified industrial
                                                                                                        6.8-percent rise seen in Vietnam, said Xu Ningning, executive vice secretary-general of the
    base that should include agro-processing where there is a lot of potential. Cambodia
                                                                                                        China-ASEAN Business Council.
    welcomes investors and believes that with a strong investment climate, foreign investors will
    identify their own competitive advantages.
                                                                                                        Cambodia's per capita GDP stood at 792 U.S. dollars last year with an annual inflation rate of
                                                                                                        3.1 percent.
    The Royal Government of Cambodia aims at a diversified industrial base which will
    extend into the provinces and we will do our best to work with all investors to ensure that
                                                                                                        Most rural households in Cambodia depend on agriculture and related sub-sectors.
    their investments are implemented successfully. My key message today, therefore, is that
                                                                                                        Agriculture, apparel, real estate and tourism are the country's four pillar industries.
    Cambodia is open for business to all foreign investors.
                                                                                                        As a country endeavoring to integrate itself into the global economy, Cambodia has shown
    Some of you may wonder what Cambodia has to attract your investment. Normally, when
                                                                                                        great enthusiasm for foreign investment.
    you are going to do business and invest in a country, you need to explore at least three key
    factors. However, in Cambodia, we have at least four key factors that would encourage you
                                                                                                        The country approved 5.5 billion U.S. dollars in foreign investment during the first seven
    to invest in the country. First is political stability, second is macro-economic stability, third
                                                                                                        months of this year, up 301 percent from last year, Xu said.
    is sound and transparent legal framework, and fourth is access to key international markets
    through trade preferences in terms of GSP or MFN.
                                                                                                        Khek Caimealy Sysoda, Cambodia's ambassador to China, said she hopes to see more
                                                                                                        Chinese investment in her home country.
    In conclusion, I would like to emphasize that Cambodia is the country to invest since
    Cambodia has a lot of potential for investment. Therefore, I would like to invite all
                                                                                                        "Cambodia enjoys political and macro-economic stability as well as a transparent legal
    businessmen and foreign investors, in particular, Chinese enterprises, to visit Cambodia in
                                                                                                        framework. It has a lot of potential for investment," she said.
    order to carry out feasibility studies for your investment plans.
                                                                                                                                                                                  (Xinhua, Sept. 16 )
    Thank you for your kind attention.

China-ASEAN Business Council Chinese Secretariat                                                                                                                                                  Page 3
                                                                                                                                       Join Hands with ASEAN
             Vietnam, Cambodia, Laos, Myanmar                                                            Cambodia's largest port reports revenues
                promote tourism cooperation                                                                      up 17 pct in 8 months
    An international conference on tourism promotion themed "Four countries One Destination"
    was held in Vietnam's southern Ho Chi Minh City (HCMC) on Tuesday.                                   Cambodia's largest Sihanoukville Autonomous Port (SAP) on Thursday unveiled that
                                                                                                         it earned the total revenues of about 21 million U.S. dollars in the first eight months
    The forum was attended by four tourism ministers of Vietnam, Cambodia, Laos and Myanmar,             of this year, rising 17 percent from 18 million U.S. dollars at the same period in a year
    and more than 200 delegates from related ministries and organizations in the region.                 earlier.
    According to Vietnam News Agency, the event was held to lure more investment in tourist
    infrastructure and promote tourism for sustainable development for the benefit of both               The port's reports also showed that from January to August this year, the total cargo
    investors and peoples in the four countries.                                                         shipments through the port rose by 14 percent to 1.6 million tons, up from 1.4 million
                                                                                                         tons at the same period last year.
    Delegates shared with one another the updated information of their respective country's
    tourism policies to attract more investment and discussed measures to provide favorable              The port's chief Lou Kim Chhun attributed the increase in shipments and revenues to
    conditions for tourism investors and managers, all aimed at highlighting images of the four          more active economic activities.
    countries as attractive destinations to both tourists and investors.

    Over the recent years, the tourism sectors of Vietnam, Cambodia, Laos and Myanmar                    "As we all see the country's economy has recovered well, the exports of garments are
    have strongly developed, becoming an important spearhead to boost social and economic                on the rise, so is the exports of processed rice," he said Thursday, projecting that the
    development in each country. The average growth rate in these countries is always higher than        cargo shipments through the port could reach 2.5 million tons by the end of this year.
    the average one of the ASEAN bloc and the world as well. Despite the global economic crisis,
    the four countries welcomed about 10.9 million tourists in 2010, a year-on-year increase of 25       According to the statistics of the Ministry of Commerce, Cambodia had exported
    percent, said the report.                                                                            garments and textiles in equivalent to 2.34 billion U.S. dollars in the first eight months
    Potentials in tourism of the four countries were also shared among participants, who shared          of this year, 19 percent increase from 1.96 billion U.S. dollars at the same period last
    a common view that promoting tourism in their countries as one common destination with               year. However, the report showed that the country's exports of rice declined 10 percent
    attractive and diverse forms of sites and services would help in building a firm foundation for      to 105,400 tons from 117,180 tons.
    cooperation and development in the Mekong sub-region, and for cooperation and friendship
    among regional countries.                                                                            The port is the main economic path between Cambodia and the globe. Main products
                                                                                                         go through the port including agricultural products, garment products, petroleum, wood
    Addressing the conference, Vietnamese minister of culture, sports and tourism Hoang
                                                                                                         chips, coal, vehicles, machinery, construction materials and all types of consuming
    Tuan Anh said, the Vietnamese government always provides favorable conditions for, and
    encourages domestic and foreign travel businesses and investors to join hands together in            items.
    developing tourism.
                                                                                                         The SAP is one of the three state-owned enterprises that the government has ordered
    Vietnam welcomed more than five million foreign visitors in 2010, a year-on-year increase of         to prepare itself to list in the Cambodia Securities Exchange, which is slated to begin
    34.8 percent. The country sets targets to receive 10.3 million foreign visitors, plus 47.5 million   trading from the end of this year onwards.
    domestic tourists, by 2020, and 18 million foreign visitors and 71 million domestic tourists by
    2030, Anh said.
                                                                                                         The other two enterprises are Phnom Penh Water Supply Authority and Telecom
    More than 94.2 billion U.S. dollars will be invested to develop 39 national tourist areas, 30        Cambodia.
    national tourist sites and 10 tourist urban quarters in Vietnam, Anh reported.
                                                                                                                                                                               (Xinhua, Sept. 22 )
                                                                                (Xinhua, Sept. 13 )

China-ASEAN Business Council Chinese Secretariat                                                                                                                                               Page 4
                                                                                                                China-ASEAN Economic News Flash

           Chinese, Laotian presidents pledge to enhance                                                             China, Indonesia sigh multi-billion-dollar
                      political, economic ties                                                                                economic agreements
   President Hu Jintao and his Laotian counterpart         Hu pledged to strengthen cooperation with Laos in       China's northeast Jilin Province signed 9 economic agreements worth 9.5
   Choummaly Saygnasone held talks on Monday,              the areas of economics, trade, mining, agriculture,     billion U.S. dollars with Indonesia Monday in Jakarta, covering mining, drinks,
   agreeing to boost bilateral ties in light of the 50th   infrastructure, tourism and education and promote       husbandry and pharmaceutical sectors.
   anniversary of the establishment of China-Laos          exchanges between the legislative bodies, political
   relations.                                              organizations and social management networks of         Eight deals worth of 3.5 billion U.S. dollar were announced Monday evening at
                                                           both nations.                                           the China Jilin-Indonesia Economic and Trade Cooperation Conference. Earlier
   Hu, who is also general secretary of the Communist                                                              on the day, the Jilin Horoc Nonferrous Metal Group signed a deal to invest 6
   Party of China (CPC) Central Committee,                 Hu suggested that both sides should enhance             billion U.S. dollars in nickel smeltering in Southeast Sulawesi.
   congratulated Choummaly's re-election as president      cooperation in national defense and public security
   of Laos and secretary-general of the Laos People's      in order to safeguard peace and stability of both       The trade delegation, headed by Jilin Province's Communist Party chief Sun
                                                           countries.                                              Zhengcai, is here to tap into business opportunities between the old industrial
   Revolutionary Party Central Committee.
                                                                                                                   base of Northeast China and the largest economy in Southeast Asia.
   Hu hailed the current state of bilateral political      Hu said China supports Laos in hosting the ninth
                                                                                                                   Sun said both sides have much to gain from their complementary economies,
   relations, saying that both countries share similar     Asia-Europe Meeting next year and expressed             especially as the Chinese government is prioritizing the revitalization of the old
   social systems, political ideals and developmental      confidence in the country's national development.       industrial base of Northeast China and the regional cooperation in Northeast
   mindsets.                                                                                                       Asia is booming.
                                                           Referring to China as a "close and reliable friend"
   "It bears positive significance for the cause of        and "strategic partner," Choummaly spoke highly         Indonesia has maintained a high growth rate of 6.5 percent for the first six
   socialism and for peace and development in Asia         of the cooperative ties between the parties and         months of the year and is rich in mining, agricultural, fishing and forestry
   and the world for China and Laos to be good             governments of both countries, stating that             resources. On the other hand, China's Jilin sits at the center of Northeast Asia,
   neighbors, friends, comrades and partners," Hu said     comprehensive cooperation with China has fueled         having car manufacturing, oil and chemical processing, agriculture as its pillar
   at their meeting at the Great Hall of the People in     development in Laos.                                    industries.
   downtown Beijing.
                                                           Choummaly said both sides should maintain high-         Zhang Qiyue, Chinese ambassador to Indonesia, told the conference that China
   Hu said China will enhance strategic                    level visits, strengthen cooperation in national        has become a major trade partner for Indonesia, with trade volume likely
   communication, substantial cooperation, party-to-       defense and public security and expand cooperation      to exceed 50 billion U.S. dollars in 2011, adding that non-financial direct
   party exchanges and coordination on international       in the fields of economics, trade, culture, education   investment flows from China to Indonesia surpassed 1.05 billion U.S. dollars
   and regional issues with Laos.                          and tourism.                                            by the end of July.

   China appreciates the Laos government's adherence       Choummaly arrived in Beijing on Sunday for a            Indonesia is wooing investment from China. As Abdul Alek Soelystio, vice
   to the one-China policy and will firmly support         four-day official visit to China at the invitation of   chairman of the Indonesian Chinese Entrepreneur Association put it, the
   Laos as it advances on a road that fits its domestic    Hu.                                                     Indonesian government is sparing no effort to improve the legal system and
   situation, Hu said.                                                                                             infrastructure, and simplify investment procedures to create an investor-friendly
                                                                                          (Xinhua, Sept. 19 )      climate.

                                                                                                                                                                                 (Xinhua, Sept. 19 )

China-ASEAN Business Council Chinese Secretariat                                                                                                                                                 Page 5
                                                                                                                                                                        China-ASEAN Economic News Flash

              Sino-Malaysian economic ties strengthen                                                                    China will offer more support to outbound
  China has been Malaysia's largest trading partner for    manufacturing sector, Lee noted. Ninety-six projects                     investment: minister
  the last two years, with commercial ties buoyed by       valued at $1.2 billion have been approved in the sector
  the burgeoning Chinese economy and a deepening           since 2006, with the majority concentrated in basic        The Chinese government will provide strong policy support for outbound investment,
  bilateral relationship.                                  metal products.                                            Minister of Commerce Chen Deming said Thursday.

  Two-way trade reached a record $74.2 billion last year   Other sub-sectors attracting Chinese investment            China will explore some domestic qualified and active technological development
  following implementation of the China-ASEAN Free         include transport equipment, chemicals, fabricated         zones and give full play to their advantages in line with the development of China's
  Trade Agreement (FTA).                                   metal products and machinery.                              overseas trade and economic cooperation regions, Chen said at a forum held at the 15th
                                                                                                                      China International Fair for Investment and Trade (CIFIT) held in China' s southeastern
  Malaysia is China's eighth-largest trading partner.      China is offering its considerable infrastructure          coastal city of Xiamen.
                                                           development expertise in the construction of the
  While bilateral trade is robust, there remains room      second Penang Bridge, a joint project by China Harbor      The protection mechanism for investors ought to be perfected in order to promote
  to bolster Chinese investment in Malaysia. The           Engineering Co and Malaysia's UEM Construction.            overseas enterprises' capacity for risk prevention and to safeguard their legitimate rights
  Malaysian Industrial Development Authority (MIDA)                                                                   and interests, he said.
  headquartered in Kuala Lumpur plays a key role in        The bridge, Malaysia's largest civil project in the past
  courting that Chinese capital.                           20 years, will help transform Penang into a logistics      The guidance and services for private enterprises as well as small- and mid-sized
                                                           and transportation hub.                                    enterprises investment in foreign countries is also expected to be strengthened,
  MIDA acts as a bridge between China and Malaysia,                                                                   according to Chen.
  facilitating government-to-government exchanges and      Among the Chinese companies operating in Malaysia,
  visits to Malaysia by Chinese business delegations.      the most prominent are Lenovo, Huawei, the Industrial                                                                             (Xinhua, Sept. 8 )
                                                           & Commercial Bank of China and Bank of China.
  Within China, MIDA organizes investment seminars
  and activities matching Chinese businesses with their    Others include Sinochem International, a rubber            particular the feed-in renewable energy tariff that will be implemented on Dec 1.
  Malaysian counterparts. It has offices in Shanghai and   compound producer, Jigang Group Co, which makes
  Guangzhou.                                               iron and steel products, and ZTE Corp, known for           According to the tariff scheme, the Malaysian government will provide subsidies for
                                                           developing and manufacturing telecommunications            clean energy including solar photovoltaic power to encourage development of solar
  As a one-stop center for business advisory services,     equipment for mobile, data, optical and intelligence       farms or use of solar panels in buildings, said MIDA Shanghai director Lee.
  MIDA assists Chinese companies entering the              networks.
  Malaysian market obtain investment incentives,                                                                      Chinese companies with expertise in technology-intensive manufacturing will enjoy
  manufacturing licenses and other requisite approvals.    Several deals inked                                        favorable conditions to produce solar energy products for Malaysia's domestic use, he
  It also provides post-licensing assistance, helping                                                                 adds.
  Chinese manufacturers receive exemption from import      During Premier Wen Jiabao's two-day official visit
  duties on raw materials and machinery.                   to Malaysia in April, China and the Southeast Asian        Looking ahead, the Sino-Malaysian bilateral economic relationship is poised to deepen.
                                                           country inked several deals to further strengthen          Chinese investment in the Malaysian manufacturing sector alone grew from 162 million
  Chinese investment                                       economic ties, among them an agreement between             Malaysian ringgit ($54 million) in 2009 to 1 billion ringgit ($333 million) in the first six
                                                           ZTE and DiGi Telecommunications for the supply of          months of this year, according to MIDA.
  "China's outbound foreign direct investment has grown    network infrastructure.
  substantially in recent years," said Simon Lee Yew                                                                  MIDA also expects to see China further invest in Malaysia's rich natural resources.
  Weng, director of the MIDA Shanghai office.              Other deals included a contract between China              Other industries with potential to attract Chinese investment are electronics, bio-
                                                           Huadian Engineering Co and Malaysia's Janakuasa to         technology, pharmaceuticals and logistics.
  "Our role is to increase Chinese investors' awareness    build a coal-fired plant and a joint venture agreement
  of the rich business opportunities in Malaysia, and      between Aluminum Corp of China and Smelter Asia            "We see fruitful two-way economic ties continuing to develop on the back of close
  persuade them to make Malaysia one of their key          Sdn Bhd to construct a smelter in Malaysia.                social and cultural links, geographical proximity and trade liberalization in the region
  profit centers."                                                                                                    brought about by the China-ASEAN FTA," said Lee.
                                                           Malaysia's growing renewable energy sector also
  Chinese firms are most active in Malaysia's              presents opportunities for Chinese investors, in                                                                              (China Daily, Sept.16)
China-ASEAN Business Council Chinese Secretariat                                                                                                                                                            Page 6
                                                                                                                           Convention and Exhibition

      Note: CABC Chinese Secretariat would like to assist enterprises to participate in the following exhibitions. If you are interested, feel free to contact us.

      China Fisheries & Seafood Expo                                                Fenestration China                                     China Plastics Expo
     Venue: Qingdao International Convention & Exhibition Center            Venue: Beijing China International Exhibition Center       Venue: China Plastics International Exposition
     Country: Qingdao, China                                                Country: Beijing, China                                    Center
     Start Date: 01-NOV-11 End Date: 03-NOV-11                              Start Date: 02-NOV-11 End Date: 04-NOV-11                  Country: Yuyao, China
     Exhibitors: 747+ Visitors: 15,000+                                     Exhibitors: 400+ Visitors: 36000+                          Start Date: 06-NOV-11 End Date: 09-NOV-11
     Industry: Meat, Poultry & Seafood                                      Industry: Building Construction                            Exhibitors: 463+
                                                                            Coverage Area: 50000 Square Meter                          Industry: Plastic & Plastic Products
     China Fisheries & Seafood Expo is a highly successful,                 EVENT PROFILE                                              EVENT PROFILE
     established international exposition. Year after year, thousands       Fenestration China is the leading international trade      China Plastics Expo is an event that is dedicated
     of pre-qualified buyers and decision makers visit the show ready       fair in China and Asia for all sectors of the windows,     to the plastic industry as it is stated to be the
     to do business. No other show of its type in Asia comes close to       doors and curtain wall industry. Established in the year   biggest expo in the Chinese plastic industry. This
     matching the size or success of China Fisheries & Seafood Expo.        of 2003, Fenestration China has always been devoted        event will offer the showcase of raw materials,
                                                                            to creating an ideal showcasing platform where             machine tools and machineries related to the
     \VISITOR'S PROFILE                                                     Chinese and international professionals meet to initiate   plastic industry. It is in this event that enterprises
     Professionals related to Food Service, Restaurant, Catering Firm,      business and to build up and cultivate contacts.           related to this industry will meet each other and
     Retail, Supermarket & Hypermarket, Warehouse Club /Mass                                                                           develop their markets and share the resources of
                                                                            VISITOR'S PROFILE                                          each other.
     Marketer, Seafood Market, Distribution, Processor, Importer,
                                                                            Windows & Doors manufactures, Construction
     Exporter, Broker/Trader, Fishing Company, Aquaculture, Services,
                                                                            Companies, Architects, Real Estate Developers are the      China Plastics Expo is a great opportunity for the
     Research/Education, Government, Transportation Equipment,
                                                                            target visitors.                                           attendees to interact with experts in the field and
     Packaging Services are the target visitors.
                                                                                                                                       know about the latest advancements being made
                                                                            EXHIBITOR'S PROFILE                                        by this industry. This event will surely give a huge
     \EXHIBITOR'S PROFILE                                                   Profile for exhibit include standardized window and        boost to the plastic industry of China.
     Profile for exhibit include Fresh and preserved fish, Frozen           door: Aluminium, Steel, Wood, PVC, ordered window
     seafood, Dried seafood, Processed and canned seafood, Seafood          and door: Aluminium, Steel, Wood, PVC, Accessories         VISITOR'S PROFILE
     gourmet specialities, Fish - based sauces and mixes, Aquariums         and components for fenestration industry, Sealing          China Plastics Expo will be visited by senior
     for restaurants, Purification and storage systems for live shellfish   and silicone, Automatic closing equipment, Steel           decision makers, retailers and wholesalers, agents
     and fish, Seafood washing machines, Systems for fish refrigeration     profiles for fenestration industry, Aluminum profiles      and various other professionals related to the
     and freezing, Cold stores, Seafood packaging, Display counters         for fenestration industry, PVC profiles, Wood, Curtain     plastic industry.
     for restaurants and shopping centres, Thematic decorations for         wall and glazing products, External painting products
     seafood restaurants.                                                   and systems, Facade cleaning and maintenance

China-ASEAN Business Council Chinese Secretariat                                                                                                                                           Page 7
                                                                                                                  Convention and Exhibition

      China International Industry Fair (CIIF )2011                                                               Canton Textile Machinery
    Date: 1-5 November, 2011                                PREVIEW OF CIIF 2011
    Venue: Shanghai New International Expo Centre           8 Flagship shows held together annually which mark    Venue: China Import & Export Fair Pazhou Complex
    City/State: Shanghai                                    the development and trend of China's manufacturing    Country: Guangzhou, China
    Country: China                                          industry, totally 150,000 square meters at Shanghai   Start Date: 09-NOV-11 End Date: 11-NOV-11
                                                            New International Expo Centre.                        Exhibitors: 307+ Visitors: 16472+
    EVENT PROFILE                                           More than 1,800 Exhibitors, include more than 30%     Industry: Plant & Machinery
    China International Industry Fair (CIIF in brief)       International Companies participation.
    is jointly organized by China's Government, co-         116,768 Visitors and 102,998 professionals mainly     EVENT PROFILE
    organized by China Machinery Industry Federation        Decision-makers from 74 different countries and 31    Canton Textile Machinery is developing into the most influential
    and managed by Shanghai World Expo (Group)              provinces of China. (Data of 2010)                    and established as well as the largest professional international
    Co., Ltd. China International Industry Fair, started    New show – New Energy Auto Show start from            textile machinery exhibition in China. It will be functioning
    from 1999, after 12 years innovation and growth, it     scratch with 2 halls scale.                           as the key platform for the information exchange and business
    has become the most influential international brand     Beginning from 1999, Members of UFI approved          cooperation among China, Asia and the rest of the world .
    show in China’s manufacturing equipment industry.       events with 13 years as individual platforms enjoy
    This year, CIIF was also certified by UFI (Union        good reputation both at home and abroad.              VISITOR'S PROFILE
    of International Fairs) which accelerated its way                                                             Trade Visitors - importers & exporters from all sectors of the
    to serve as an important vehicles and cooperative       HIGHLIGHTS (2010)                                     textile machinery industry, including spinning, nonwovens,
    platform between China’s manufacturing industrial       Six Flagship shows held together annually which       weaving, knitting, dyeing and finishing, garment making,
    insiders and global magnates.                           mark the development and trend of China's             Embroidery Machine, Sewing Machine, Quilting & Weaving
                                                            manufacturing industry, totally 103,500 square        Equipment, Needle-detecting Equipment, Cleaning & Washing
    China International Industry Fair 2010 was              meters with 32.3% overseas participation in           Equipment, dyestuffs and chemicals & General Public are the
    successfully held from Nov 9th to Nov 13th,             Shanghai New International Expo Centre.               target visitors.
    2010 at Shanghai New International Expo Centre.         1,653 Exhibitors, include 566 International
    Themed as “Scientific Innovation and Equipment          Companies from 20 countries .with 14% increase        EXHIBITOR'S PROFILE
    Manufacturing Revitalization”, CIIF presented           compared with 2009.                                   Exhibitors include manufacturers from all sectors of the textile
    totally 103,500 square meters to accommodate            116,768 Visitors and 102,998 professionals mainly     machinery industry, including spinning, nonwovens, weaving,
    1,653 exhibitors from 20 countries and 3 regions,       Decision-makers from 74 different countries and 31    knitting, dyeing and finishing, garment making, dyestuffs
    accounted 32.3% of overseas participation. CIIF         provinces of China.                                   and chemicals, Pre-sewing, Shrinking & Cloth Spreading
    2010 drew 116,768 visitors from 72 countries            More than 60 Forums and Conference held               Equipment, Cloth Cutting Equipment, Sewing & Stitching,
    and region. Concurrently, totally 60 forums and         simultaneously.                                       Sewing Machine, Embroidery Equipment, Quilting & Weaving
    activities had been hold.This year, the 13th edition,   Starting from 1999, Members of UFI approved           Equipment, Needle-detecting Equipment, Steam Iron &
    CIIF 2011 will be held from Nov 1st to 5th at           events with 12 years as individual platforms enjoy    Finishing Equipment, Cleaning & Washing Equipment.
    Shanghai New International Expo Centre.                 good reputation both at home and abroad.

China-ASEAN Business Council Chinese Secretariat                                                                                                                                 Page 8
                                                                                                                                  Glancing at CABC Members
                                 China Household Electrical Appliances Association
       Community Property                                                                            (5) Help making a sound management system of industry self-regulation, regulate
                                                                                                     competition between member companies, coordination of Member relations and safeguarding
       China Household Electrical Appliances Association (CHEAA) was established in                  the market order of fair competition;
       December 1988. CHEAA is registered by the Chinese manufacturer of household                   (6) Promote the brand construction, promote the improvement of product quality, with the
       appliances industry, business, spare parts and raw materials, auxiliary enterprises,          government departments of the industry's product quality management;
       research institutions and other voluntary agencies. CHEAA is a self-composed,                 (7) Organize the exchange and promotion of new technologies, organizational identification
       non-profit social and economic organization, is a legal person in non-government              and promotion of new products, promote new technologies in the industry in the promotion
       organization. By the competent departments of the Association of State-owned Assets           and application, promote technological innovation and scientific management, improve
       Management Committee, China Light Industry Federation and the Ministry of Civil               technical level of industry and international competitiveness;
       Affairs community registration authority guidance and supervision and management.             (8) Organize and promote energy conservation and emission reduction industry, carry out
                                                                                                     green design, waste home appliances recycling and reuse of resources, and promote energy-
       CHEAA’s 0bjective                                                                             efficient home appliances has improved continuously;
                                                                                                     (9) To promote domestic and international trade activities undertaken to promote the
       Complying with the Chinese Constitution, laws and regulations, CHEAA’s main                   popularity of consumer knowledge, organizations domestic and international exhibitions,
       objective is to represent and defend the Chinese Industry interests, to defend legal rights   marketing activities, maintenance of enterprises in the trade activities of the legitimate rights
       of its members, and to promote a fair and orderly competitive market environment.             and interests involved in the coordination of international trade disputes;
       By this means, the association hopes to serve its members, the appliance industry and         (10) Organize the industry professionals, technical, vocational, management, policies and
       the government, and to contribute to the healthy and sustainable development of the           regulations, such as training, guidance, and help member companies improve their business
       industry.                                                                                     management;
                                                                                                     (11) Positive development with foreign associations, international organizations and
       Association Functions                                                                         cooperation, organizing the industry to participate in the international exchange activities;
                                                                                                     (12) Promote the industry, the founder of Association publications and industry websites;
       The association's functions includes safeguarding the rights, services, self-discipline,      (13) The development of public welfare, social responsibility;
       coordination and supervision, assists the government in the implementation of                 (14) Assumes the functions and work commissioned by the Government;
       industrial management. Specific functions are as follows:                                     (15) To carry out other activities beneficial to member companies and state laws and
                                                                                                     regulations allowed.
       (1) Participate in government economic policy, industrial policy research favorable to
       industry policy and legislative proposals; organizes in industry development, strategic
       planning and other major issues;
       (2) Reflect the industry to government departments, membership aspirations, safeguard
       the legitimate rights and interests of members;
       (3) To carry out the survey industry data collection, analysis, publishing industry
       information, to provide members, government and community with advisory services;
       (4) To organize and participate in the formulation, revision of national standards or
       industry technical standards, service standards and industry access standards, standard-
       setting association to carry out the work;

China-ASEAN Business Council Chinese Secretariat                                                                                                                                                    Page 9
  CABC News & Events

    Sept. 1st, 2011, the Vietnam National Day Reception          Sept. 1st, 2011, the Vietnam National Day Reception
    was held by the Vietnam Embassy to China in Beijing, in      was held by the Vietnam Embassy to China in Beijing, in
    commemoration of the 66th Anniversary of the Socialist       commemoration of the 66th Anniversary of the Socialist
    Republic of Vietnam. Mr Xu Ningning (L), was invited to      Republic of Vietnam. Mr Xu Ningning (R), was invited to
    attend the reception, with Nguyen Duy Phu, Commercial        attend the reception, talking with Laos ambassador to China
    Counsellor' of Vietnam Embassy to China.                     (L).

                                                                                                                                  2011 International Forum on Development of China
                                                                                                                                  Automotive Industry was held in Tianjin on Sept. 3,
                                                                                                                                  2011, jointly organized by China Automotive Technology
                                                                                                                                  and Research Center (CATARC), Chinese Society Of
                                                                                                                                  Agricultural Engineering (CSAE), China Association
                                                                                                                                  of Auto Manufacturers (CAAM), etc. Totally over 700
                                                                                                                                  representatives attended the forum. Mr. Xu Ningning was
                                                                                                                                  invited to deliver an address on the business opportunity on
                                                                                                                                  CAFTA and China automobile walking into ASEAN, and
                                                                                                                                  make relevant recommendations on automobile industry
                                                                                                                                  exploring the market in ASEAN.
   In the evening of Sept. 3, 2011, Su Jianmin, who is          Sept. 7th, 2011, Mr. Xu Ningning, SG of CABC Chinese
   Chairman of the Economic and Trade Promotion Council of      Secretariat (L) and Mr. Wang Zhonqi, Chairman of China
   Tianjin-ASEAN and Vice Chairman of Tianjin International     Chamber of Commerce for Import &Export of Light Industrial
   Chamber of Commerce as well as President of Tianjin          Products &Arts-Crafts (CCCLA) (R), signed a strategic
   Motian group Co. LTD (L), dined Mr. Xu Ningning (R),         cooperation framework agreement to jiontly promote the
   discussing the enterprises cooperation between Tianjin and   cooperation of Light Industry Products & Arts-Crafts Between
   ASEAN, accompanied by Li Wenyuan, Deputy Director            China and ASEAN and establish long and stable cooperation.
   General of Foreign Affairs Office of Coordination of the     Both parties actively carry out a series of cooperation through
   Tianjin People's Government and other people.                establishing strategic cooperation partnership.
China-ASEAN Business Council Chinese Secretariat                                                                                                                                                 Page 10
 CABC News & Events

   Sept. 10th, 2011, Malaysia-China Trade and Investment       At noon of Sept. 14th, 2011, Embassy of Malaysia held a reception
   Conference was held in Kuala Lumpur. Mr. Xu Ningning        in commemoration of the 54th Anniversary of Malaysian National
   was invited to deliver a speech on how China and ASEAN      Day. Mr. Xu Ningning was invited to attend the reception. During
   together explore the 1.9 billion market on the conference   the reception, Mr. Xu Ningning (L) talked with Mr. See Chee Kong,
   with over 1.000 participants.                               Economic Minister Counselor of Embassy of Malaysia (R) on the
                                                               economic and trade cooperation between China and Malaysia.            On the morning of Sept. 14th, 2011, the crew of the large-scale
                                                                                                                                     television series "20 Years of China-ASEAN" from Guangdong TV
                                                                                                                                     Station interviewed Mr. Xu Ningning in Beijing. Mr. Xu Ningning
                                                                                                                                     talked about the economic and trade cooperation of 20th anniversary
                                                                                                                                     of the establishment of dialogue relationship between China and

                                                                                                                                     2011 marks the 20th anniversary of the establishment of dialogue
                                                                                                                                     relationship between China and ASEAN, and is also "China-ASEAN
                                                                                                                                     Friendly Exchange Year". In order to help the Chinese people to
                                                                                                                                     deeply understand ASEAN, and promote friendly exchange and
                                                                                                                                     cooperation from both parties, the Ministry of Foreign Affairs of
                                                                                                                                     PRC, Guangdong Institute for Foreign Culture and Exchange,
                                                                                                                                     SMC, Foreign Affairs Office, Pecple's Government of Guangdong
                                                                                                                                     Province, and Guangdong TV Station plan the large-scale television
                                                                                                                                     series "20 Years of China-ASEAN" consisting of totally 12 sessions
                                                                                                                                     with 25 minutes per session. It is expected to be published during
   At noon of Sept. 14th, 2011, Embassy of Malaysia held a     In the evening of Sept. 14th, 2011, the Reception was held by the     the China-ASEAN Leaders Summit in November.
   reception in commemoration of the 54th Anniversary of       Indonesia Embassy to China in Beijing, in commemoration of the
   Malaysian National Day. Mr. Xu Ningning was invited         66th Anniversary of Indonesian National Day. Mr Xu Ningning
   to attend the reception. During the reception, Mr. Xu       was invited to attend the reception. During the Reception, Mr. Xu
   Ningning (L) talked with Mr. Chen Shian, Chairman of        Ningning (R) accepted the interview on the economic and trade
   China-Malaysia Chamber of Commerce (R), on Chinese          cooperation between China and Indonesia from a television reporter.
   and Malaysian enterprises' cooperation.

China-ASEAN Business Council Chinese Secretariat                                                                                                                                                  Page 11
  CABC News & Events

                                                                                         Sept.16,2011, Cambodia Investment Presentation Conference was held in Beijing, organizedby CABC Chinese
   In the evening of Sept. 14th, 2011, the Reception was held by the Indonesia Embassy   Secretariat and Royal Embassy of Cambodia. Mr. Xu Ningning (R3) presided the meeting. H.E. Mrs. Khek Caimealy
   to China in Beijing, in commemoration of the 66th Anniversary of Indonesia National   Sysoda, Ambassador of the Kingdom of Cambodia to the People's Republic of China (L3), Mr. Mao Tianyu, Division
   Day. During the Reception. Mr Xu Ningning (R) talked with Mr. Ma Jisheng, Deputy      Chief, International Department of Ministry of Commerce of China (L2), Mr. Liu Zengxue, Vice General Manager of
   Director of the Information Department of Ministry of Foreign Affairs (L).            China International Water & Electric Corp., and Ms Dai Yuee, General Manager of Sihanoukville Special Economic
                                                                                         Zone Co., Ltd (R2) attended the conference and delivered the speeches. Over 100 Attendees including responsible
                                                                                         persons of national business associations, relevant sectors of government, representatives of entrepreneurs, etc.

  Sept.16, 2011, Cambodia Investment Presentation Conference was held in Beijing,
  organizedby CABC Chinese Secretariat and Royal Embassy of Cambodia. After              Sept.16, 2011, Cambodia Investment Presentation Conference was held in Beijing, organizedby CABC Chinese
  the conference Mr. Xu Ningning (R) accepted the interview from the journalist of       Secretariat and Royal Embassy of Cambodia. After the conference Mr. Xu Ningning (R) accepted the interview from
  Communications Centre for Southeast Asia of China Radio International.                 the journalist of CCTV NEWS.

China-ASEAN Business Council Chinese Secretariat                                                                                                                                                   Page 12
  CABC News & Events
                        Walking into Cambodia and exploring new business opportunities
                        —Cambodia Investment Presentation Conference held in Beijing
   On 16th Sept, Cambodia Investment Presentation Conference             Mr. Xu Ningning said, due to the stable political situation, and     quantity which can meet the international standards and
   was held in Beijing, organized by CABC Chinese Secretariat and        favorable policy of investment and tax, the fever of investment      would export is limited (just only 45,000 tons in 2010).
   Royal Embassy of Cambodia. Xu Ningning, Executive Secretary           in Cambodia was growing. From January to July of 2011,               Most of rice are bought by merchants from Thailand and
   General of China-ASEAN Business Council (CABC) Chinese                Cambodian government has approved 75 investment projects             Vietnam, and processed as Thailand and Vietnam rice to
   Secretariat, advised that Chinese enterprises should actively seize   and $5.5 billion of investment amount, an increase of 301%           export. Investment of building grain depots and rice mill
   the opportunity of China-ASEAN Free Trade Area (CAFTA) to             year-on-year. There are 4 tourism projects with $2.44 billion        factories will be the best starting point in Cambodia. The
   walk into Cambodia for exploring new business opportunities.          of investment amount, 60 industry projects with $2.6 billion         cassava production of Cambodia in 2010 is 3.78 million
                                                                         of investment amount, and 11 projects of agriculture, rubber         tons, but the processing capabilities is not effective.
   When H.E. Mrs. Khek Caimealy Sysoda, ambassador of the                and telecommunication service, etc. of which the investment          Now, the plantation of natural rubber reached to 180,000
   Kingdom of Cambodia to the People's Republic of China,                amount is 460 million USD. From January to July, Cambodian           hectares, but harvested area is just 40,000 hectares.
   presented the investment projects in Cambodia, she said there         government has approved 1279 construction investment                 Cambodia government planned to extent the plantation
   existed large development space in the area of agriculture, agro-     projects and $750 million of investment amount, an increase          area to 250,000 hectares within 3 years. With the excellent
   industry, infrastructure construction, labour intensive industry,     of 84% year-on-year. The approved projects involved building         natural conditions of livestock production development
   export-oriented industries, petroleum and gas, minerals, tourism      rice mill factories, garment factories, tourist facilities, farms,   in Cambodia, the annual meat demanding of Cambodia
   resources, etc. These provide many investment opportunities           housing, etc.                                                        is about 250,000 tons, but the domestic production is still
   for Chinese enterprises. She pointed out that in the last five                                                                             unable to achieve full self-sufficiency. Aquatic product
   years, Cambodian government published laws & regulations on           Mr. Xu Ningning presented that Cambodia is abundant in               resources are bountiful in Cambodia and the total output
   investment and actively encouraged Chinese enterprises to invest      energy sources, most of which hasn't entered a substantive stage     of aquatic products is 550,000 tons. Thereinto, the output
   and develop in Cambodia.                                              of development. As estimated by the World Bank, the reserve          of freshwater fish is 405,000 tons, marine fish 85,000
                                                                         of offshore petroleum in Cambodia is about 2 billion barrels. At     tons, and breed aquatics 60,000 tons. At present, Phnom
   Division Chief of International Department of Ministry of             present, most Cambodian petroleum products depend on import,         Penh, Siem Reap, Sihanoukville, Krong, Koh Kong, and
   Commerce of China, Mr. Mao Tianyu, introduced that, in recent         which account for one fifth of total import volume. Petroleum,       the northeast area involving Rattanak Kiri, Mondul Kiri,
   years, under the framework of CAFTA, the economic and trade           gold, iron, alumina, and other mineral resources have proved         Stung Treng and other areas are attracting investment,
   cooperation between China and Cambodia has showed a good              to be reserved in Cambodia, but most of them hasn't entered a        constructing and developing tourism area as well as
   development momentum. In 2010, according to the import                substantive stage of development. There also exist ample water       tourism supporting facilities.
   growth rate of China to ten ASEAN member countries, Cambodia          power and tourism resource, however most of which are low in
   ranked first. In 2010, non-financial direct investment of Chinese     effective use, so the development space is huge.                     On the conference, Ms. Dai Yuee, General Manager of
   enterprises to Cambodia rose 83% to $395 million year-on-year.                                                                             Sihanoukville Special Economic Zone Co., Ltd, introduced
   By the end of 2010, the cumulative non-financial direct investment    Mr. Xu Ningning suggested that the key fields of investment          the advantage of Chinese enterprises entering into
   of Chinese enterprise to Cambodia was $1.028 billion and China        in Cambodia to consider are rice mill factories, plantation          Sihanoukville Special Economic Zone. Mr. Liu Zengxue,
   the country where Cambodia's largest foreign investment came.         of cassava and natural rubber, the development of livestock          Vice General Manager of China International Water &
   Mr. Xu Ningning said, on 14th Sep, 2011, the ADB report showed        production and aquaculture, the exploitation and smelting of         Electric Corp expressed the hope of actively walking
   that this year the Cambodian economy shall increase by 6.8%           mineral resources, tourism supporting facilities, etc.               into Cambodia. Over 100 people including responsible
   than previous forecast of 6.5%. In 2010, the Cambodian GDP                                                                                 persons of national business associations, relevant sectors
   was $11.44 billion, an increase of 5.9%. Thereinto, agriculture       Mr. Xu Ningning analysed further, in 2010, Cambodian                 of government, delegates of entrepreneurs, etc., total 100
   accounted for 33.5%, industry 21%, and service industry 38.3%.        government has issued the Policy for Promoting Rice                  people attended the conference.
   Cambodia’s GDP per head was $792 and inflation per year was           Production and Rice Exports, aiming to make Cambodia
   3.1%. The trade volume of Cambodia grew by 11% to $10.47              become the major rice export country in the international                                                    (CABC, Sept. 16)
   billion. Agriculture, garment industry, real estate and tourism are   market, and to export 1 million tons of rice by 2015. However,
   four economic mainstays in Cambodia.                                  due to insufficient storage and low processing capacity, the rice

China-ASEAN Business Council Chinese Secretariat                                                                                                                                                    Page 13
  CABC News & Events
      Why Invest in Cambodia
      Cambodia at a Glance                                                     Macroeconomic Stability

      Land area : 181,035                                               Growth averaged 10.6% the last five years and 9.3% the last decade; poverty fell from
      Population: 13.4 Million (2008)                                          50% in mid-1990s to 30% in 2007;
      Population growth rate : 1.54%                                           International reserves increased to $2 billion, compared to $1 billion two years ago; it took
      Stable political environment: elections every 5 years                    13 years to increase from $100 million to $1 billion;
      Stable macroeconomic environment                                         Strong public confidence with improved supervision of the banking sector after a decade
      GDP growth : 10.6% per annum last 5 years                                of institutional reforms, improved corporate governance and regulation.
      GDP per capita : $731 (2009)
      Exchange rate : US$ 1 = Riels 4,166 (December 2009)                      Pro-business Government
      Inflation rate : 6% per annum last 5 years
      Debt rating: B+                                                          Government and Private Sector Working Groups
                                                                               Government and Private Sector Forum
      10 Reasons to Invest in Cambodia                                         Private Sector is an Engine of Economic Growth
                                                                               Easy Access to Government Officials
      Political Stability
      Macroeconomic Stability                                                  Competitive Investment Incentives
      Pro-business Government
      Competitive Investment Incentives                                        Corporate Tax - 20%
      One-Stop Service Investment Promotion Agency                             Tax Holiday Up to 9 Years
      Access to World Market                                                   Special Depreciation
      Investment Protection                                                    Full Import and Export Duty Exemption
      Efficient Infrastructure and Strategic Location                          No Discrimination, No Nationalization
      Sound Financial Sector                                                   No Local Participation Requirement
      Abundant Resources, Labor, Land                                          No Price Control on any products or services
                                                                               No foreign exchange control
      Political Stability                                                      No restriction on capital repatriation: free repatriation of the profit & free remittance of
                                                                               royalty, interest, loan repayment, dividend, investment capital, etc.
      Free and Fair Elections Every 5 Years:                                   No trade restrictions
      Senate : 2006                                                            Long Term Land Lease
      Commune Council : 2007
      National Assembly : 2008                                                 One-Stop Service - CDC/CIB
      Provincial and District Council : 2009
      Coalition Government Controls more than 2/3 Majority                     Information and Application
      Decentralization and Deconcentration                                     Evaluation and Approval
      Prime Minister Hun Sen: Longest Serving Asian Prime Minister             Customs Duty and Tax Exemption
      Smooth Succession from H.M. King Norodom Sihanouk to H.M. King Norodom   Visa and Work Permit
      Sihamoni                                                                 Company Registration
                                                                               Investor After-Care

China-ASEAN Business Council Chinese Secretariat                                                                                                                      Page 14
   CABC News & Events
      Access to World Market                                                           Sound Financial Sector
      Access to The U.S. Market in 1996                                                27 Commercial Banks
      Access to The E.U. Market in 1996                                                6 Specialized Banks
      Member of Association of South-East Asian Nations (ASEAN) in 1999                20 Micro-Finance Institutions
      Member of the World Trade Organisation (WTO) in 2004                             60 Micro-Finance NGOs
      Member of Various Regional Trade Agreements                                      7 Insurance Companies
                                                                                       Capital Market Laws
                                                                                       Financial Leasing Law
      Efficient Infrastructure/Strategic Location                                      Low NPL Rate
                                                                                       Strong banking supervision-Prudent Reserve Requirement Level
      Completed ASEAN Highway Linking Thailand, Cambodia, Vietnam
      Completed ASEAN Highway Linking Cambodia, Lao PDR, China                         Abundant Resources, Labor, Land
      Finished/ Upgrading National Road Network
      Rehabilitating National Railways as Part of Singapore - Kunming Rail Link        Oil and Gas
      Upgraded Sihanoukville Port                                                      Minerals (bauxite, carbonate rocks, natural gas, gold, iron, manganese, petroleum,
      Upgraded Phnom Penh Port                                                         phosphate, rock, salt, silica…)
      Upgraded Phnom Penh, Siemreap, and Sihanoukville Airports                        Great Lake (Tonle Sap)
      Finished Installing Fiber Optic Cable across the Country                         Beaches (more than 400km)
      Building New Power Plants                                                        Monuments/ Heritage Sites
                                                                                       Abundant Land
      Hard Infrastructure                                                              Low Labor Cost - Dynamic Work Force
      Rehabilitation of road infrastructures:                                          Cambodia Investment Opportunities
      550 km during 1993-97;
      2,350 km during 1998-2003;;                                                      Agriculture and Agro – Industry
      600 km during 2004-2007.                                                         Transportation and Telecommunication Sector
      Telecommunications, especially mobile phones (9 mobile operators) and Internet   Energy Sector
      access increased by 50% a year;                                                  Labor Intensive Industries and Export Oriented Industries
      4.3 million mobile subscribers (penetration 29%);                                Tourism Sector
      40,000 fixed-line services;                                                      Human Resource Development
                                                                                       Processing industry
      Special Economic Zones                                                           Oil & Gas and Mining
      21 SEZs have been approved                                                                                               (Council for the Development of Cambodia)
      4 SEZs are in operation
      2 SEZs are being built
       One Special Administration serves as Single Window for Import/Export
      Good Infrastructure

China-ASEAN Business Council Chinese Secretariat                                                                                                                     Page 15
   Introduction of CABC
  China–ASEAN Business Council is             Establishment                                  Aim and Function                              parties and provide all necessary helps.
  one of the five main dialog cooperation                                                                                                  4. Strengthen the visit, personnel training
  mechanisms between China and ASEAN.         April, 1997, CCPIT and ACCI signed             CABC's objectives are:                        and other sorts of communication of
  Former Chinese Premier Zhu Rongji           the cooperation memorandum together            1. Promote the enterprises'dialogues and      enterpriser delegations in both sides.
  attended the council’s inaugural meeting    in Shanghai in order to prepare for the        cooperation between China and ASEAN.          5. Offer law service including
  in 2001. Since the council founded, it      establishment of CABC. November, 6, 2001,      2. Maintain the trade and investigation       intermediation and arbitration to make
  has been working on China-ASEAN             in the 5th China- ASEAN Leader Meeting,        relations between China and ASEAN.            the enterprises of the two parties can
  trade and economic cooperation which        China and ASEAN reached common ground          3. Promote the economic developments          solve the trade dissensions effectively in
  greatly promoted the establishment of       on setting up China-ASEAN Free Trade Area.     in ASEAN and China and the building of        friendly atmosphere.
  CAFTA and GMS Economic Cooperation          November, 8, the establishment ceremony        China-ASEAN Free Trade Area.
  Program.                                    and the 1st meeting of CABC were both held                                                   CABC fully plays the role of bridge
                                              in Jakarta, Indonesia. The then Premier of     In order to achieve the objectives above,     and link to hold meetings with ASEAN
  Plentiful Business Channels in ASEAN        China Zhu Rongji and the then President of     CABC has planed to take the following         Secretariat, related China govenment
                                              Indonesia Megawati attended the ceremony       actions:                                      departments and industry associations,
  CABC consists of China Council for the      and declared that CABC was officially          1. Offer the service of providing trade and   relevant provincial and municipal
  Promotion of International Trade (CCPIT),   established. December, 2003, the 2nd meeting   investigation information for its members.    goverments. Those meetings includs
  ASEAN Chamber of Commerce and               of CABC was held in Kunming, Yunnan            2. Hold regular business forums, exchange     C A B C M e e t i n g s , C A F TA F o r u m s ,
  Industry (ACCI), the national business      province. The then Premier of China Zhu sent   the experience on trade and investigation     Seminars on Pan-Bay Economic
  leaders, well-known enterprisers and        congratulatory letter specially. June, 2004,   and discuss how to eliminate the obstacles    Cooperation, East Asia Business Forum,
  experts of members of ASEAN.                the 3rd meeting was held in Yangon, the then   hindering further cooperation in both         China-ASEAN Economic and Trade
                                              Premier of Myanmar attended the opening        sides.                                        Relations Forum and China-ASEAN
  The coordinator of CABC in ASEAN is         ceremony and made a speech. October, 2005,     3. Promote the exhibition held in two         Business and Investment Summit etc.
  ACCI. ACCI consists of ten representative   the 4th meeting was held in Nanning, Guangxi
  business chambers in ASEAN. They are        province. China and ASEAN Industrial
  Brunei National Chamber of Commerce         and Commercial Circles signed Nanning
  and Industry, Cambodia Phnon Penh           Declaration of CABC. The 5th meeting is held
  Chamber of Commerce & Industry,             on November 7, 2008, in Bangkok, Thailand.                                                                November8,2001,the
                                                                                                                                                        establishment ceremony and
  Indonesia Chamber of Commerce and           As the aspect of promoting the economic                                                                   the 1st meeting of CABC were
  Industry, Laos National Chamber of          and trade cooperation, the 5th meeting is                                                                 both held in Jakarta, Indonesia.
  Commerce and Industry, The National         characterized as practicality pertinence and                                                              The then Premier of China Zhu
  Chamber of Commerce & Industry of           instruction.                                                                                              Rongji and the then President
                                                                                                                                                        of Indonesia Megawati attended
  Malaysia, Union of Myanmar Chamber of                                                                                                                 the ceremony and declared that
  Commerce and Industry, The Philippine       China’s president in CABC is Mr. Wan Jifei                                                                CABC was officially established.
  Chamber of Commerce and Industry,           who is also the president of CCPIT. The                                                                   The meeting ended successfully.
  Singapore Busi-ness Federation, The         executive general secretary of CABC Chinese
  Federation of Thai Industries and Vietnam   Secretariat is Mr. Xu Ningning, a famous
  Chamber of Commerce and Industry.           ASEAN business expert of China.

China-ASEAN Business Council Chinese Secretariat                                                                                                                                    Page 16

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