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Cambodia as a facinating Country for investment is a title of the slide presentation which was analyzed the business environment of the Country for the local and foreing investors. The analysis forcused on recent economic development, investment climates, area of investment, special economic zone/special production zone (SEZ/SPZ) of Cambodia and the Cambodia-Japan relationship which is one of the main track to improve and accelerate the structural adjustment for the investment as well the economic development of the Country.
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CAMBODIA: CAMBODIA: A FASCINATING COUNTRY A FASCINATING COUNTRY
FOR INVESTMENTSFOR INVESTMENTS
PREPARED BY PREPARED BY CHAN BONNIVOITCHAN BONNIVOIT
ADVISOR FOR H.E. LU LAYSRENG, DEPUTY ADVISOR FOR H.E. LU LAYSRENG, DEPUTY PREMIER MINISTERPREMIER MINISTER
Phnom Penh, 30 Dec 2007Phnom Penh, 30 Dec 2007
22
OBJECTIVES OF THE OBJECTIVES OF THE PRESENTATIONPRESENTATION
A.A. IntroductionIntroductionB.B. Recent economic developmentRecent economic developmentC.C. Investment climatesInvestment climatesD.D. Area of investmentArea of investmentE.E. Special economic zone/Special production Special economic zone/Special production
zone (SEZ/SPZ)zone (SEZ/SPZ)F.F. CambodiaCambodia--Japan relationshipJapan relationshipG.G. ConclusionConclusion
33
A. IntroductionA. IntroductionAfter the 1993 national election, held under the auspices of theAfter the 1993 national election, held under the auspices of the United Nation, United Nation, Cambodian Government makes a sustained effort to create a marketCambodian Government makes a sustained effort to create a market--friendly friendly environment.environment.
Cambodia passed a revised law on taxation which reaffirm its opeCambodia passed a revised law on taxation which reaffirm its openness to foreign direct nness to foreign direct investment.investment.
There is no question that Cambodia remains a fiscally attractiveThere is no question that Cambodia remains a fiscally attractive location, with a location, with a corporate tax rate of 20% for most activities.corporate tax rate of 20% for most activities.
CDC has been steadily improving its facilitation services for inCDC has been steadily improving its facilitation services for investors.vestors.
Investors have an effective voice in policyInvestors have an effective voice in policy--making through the Governmentmaking through the Government--Private Private Sector Forum and the International Business Club (IBC).Sector Forum and the International Business Club (IBC).
Cambodia is large market, low wages, a liberal economy and one oCambodia is large market, low wages, a liberal economy and one of the world great f the world great assets for tourism.assets for tourism.
The large market is the function of location, not the domestic mThe large market is the function of location, not the domestic market of Cambodia, but arket of Cambodia, but the market of South East Asian Nations (ASEAN) and the establishthe market of South East Asian Nations (ASEAN) and the establishing of the free trade ing of the free trade area with China. area with China.
44
B. Recent Economic DevelopmentB. Recent Economic Development
1. GDP growth rate and inflation rate (%)1. GDP growth rate and inflation rate (%)
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2000 2001 2002 2003 2004 2005 2006
GDPInflation
55
B. Recent Economic Development B. Recent Economic Development ((concon´́tt))
2. Cambodian real GDP growth by sectors (%)2. Cambodian real GDP growth by sectors (%)
-5%
0%
5%
10%
15%
20%
2002 2003 2004 2005 2006
AgricultureIndustryServicesTotal GDP
66
B. Recent Economic Development B. Recent Economic Development ((concon´́tt))
2. Cambodian real GDP growth by key sub2. Cambodian real GDP growth by key sub--sectors (%)sectors (%)
-20%
-10%
0%
10%
20%
30%
40%
50%
2002 2003 2004 2005 2006
PaddyGarmentTourismNon-Agriculture
77
B. Recent Economic Development B. Recent Economic Development ((concon´́tt))
3. Official exchange rate (Riel/US$)3. Official exchange rate (Riel/US$)
3910
3900 39
35
3980
4031 40
70 4110
3750
3800
3850
3900
3950
4000
4050
4100
4150
2000 2001 2002 2003 2004 2005 2006
Exchange Rate
88
B. Recent Economic Development B. Recent Economic Development ((concon´́tt))
4. Financing 4. Financing CambodiaCambodia´́ss budget (Billions of Riel)budget (Billions of Riel)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2002 2003 2004 2005 2006 2007p
Total Domestic Revenue
Total Expenditure
Total Deficit
Foreign Financing
Domestic Financing
Net Foreign Reserve atNational Bank
99
B. Recent Economic Development B. Recent Economic Development ((concon´́tt))
6. 6. CambodiaCambodia´́ss balance of payments (Million US$)balance of payments (Million US$)
-1200-1000-800-600-400-200
0200400600
2002 2003 2004 2005 2006
Trade Balance
Balance ofServicesBalance of Income
Current Transfers
Current Accounts
Capital & FinancialAccountsChange in ForeignReserves
1010
C. Investment ClimateC. Investment Climate
1. Political stability
The long-term political alliance between the CPP and FUNCIPEC represents the anchor of the peace for Cambodia. Our experience shows that peace can be achieved through perseverance, compromise, accommodation and mutual understanding.
The election of His Majesty Preah Bat Preah BoromneathNorodom Sihamoni as the new King of Cambodia was another landmark in the Cambodian history for ensuring long-term stability for the Nation.
This allows the government to pursue bold reforms to liberalize and facilitate trade and investment, strengthen free-market institutions and train human resources, open up the society and democratize our institutions.
1111
C. Investment Climate (C. Investment Climate (concon´́tt))
2. The rectangular strategy of RGC2. The rectangular strategy of RGC
1212
C. Investment Climate (C. Investment Climate (concon´́tt))2. The rectangular strategy of RGC (2. The rectangular strategy of RGC (concon´́tt))
The core of the rectangular strategy is good The core of the rectangular strategy is good governance focused at four reform areas:governance focused at four reform areas:
AntiAnti--Corruption,Corruption,Legal and judicial reform,Legal and judicial reform,Public administration reform, including decentralization and Public administration reform, including decentralization and dede--concentration, andconcentration, andReform of the armed forces, especially demobilizationReform of the armed forces, especially demobilization
Partnership in Development, including strengthening Partnership in Development, including strengthening private sector and attracting foreign investor, is also private sector and attracting foreign investor, is also the critical part of the rectangular strategy of the Royal the critical part of the rectangular strategy of the Royal Government of Cambodia.Government of Cambodia.
1313
C. Investment Climate (C. Investment Climate (concon´́tt))
3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Investment approval:
Samdech Akkar Mahar Senapadei Dekchor Hun Sen, Premier Minister of RGCChairman
H.E. Mr. Kiet Chhon, Senior Minister, Minister of Economic and Finance
1st Vice Chairman
H.E. Dr. Cham Prasidh, Senior Minister, Minister of Commerce
Vice Chairman
H.E. Mr. Sok ChendaSecretary General
H.E. Mr. Kong Vibol, First Secretary of State, Ministry of Economic and Finance
Vice Chairman
Secretary General CSEZBH.E. Mr. Sok Chenda
Secretary General CIBH.E. Mr. Suon Sitthy
Secretary General CRDBH.E. Mr. Chhieng Yanara
Trouble Shooting
Committee
1414
C. Investment Climate (C. Investment Climate (concon´́tt))
3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Flowchart of investment applications:
Samdech Akkar Mahar Senapadei Dekchor Hun Sen, Premier Minister of RGCChairman
H.E. Dr. Cham Prasidh, CDC Vice Chairman
CIBSecretary General
CDC Single-Stop-Service chaired by H.E. Dr. Cham Prasidh,
CIB Department
Routine investment applications for garment factories, footwear and their
supporting industries, and hotels
Non-Routine complex investment applications
> 7 days > 25 days
1515
C. Investment Climate (C. Investment Climate (concon´́tt))
3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Newly create 3rd arm of the CDC: The SEZ Committee
Samdech Akkar Mahar Senapadei Dekchor Hun Sen, Premier Minister of RGCChairman
CRDB
CRDB SG
CIB
Public Investment
Private Investments Outside SEZ
CIB SG
C-SEZ
C-SEZ SG
Private Investments Inside SEZ
C-SEZ One Stop Service Meeting presided by Premier Minister of RGC and CDC Chairman Samdech Akkar Mahar Senapadei Dekchor Hun Sen
SSS
1616
C. Investment Climate (C. Investment Climate (concon´́tt))
3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒The Cambodian Investment Board (CIB): A One Stop Service
Information & ApplicationAnalysis & EvaluationApprovalCustoms Duty & Tax ExemptionVisa & Work PermitCompany Registration
1717
C. Investment Climate (C. Investment Climate (concon´́tt))3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Licensing Authorities:
Council of Ministers : CDC but needs approval from COM for project with investment capital exceeding $ 50 million, BOT, BOOT, BOO or BLT, long long-term strategy, sensitive projects: negative term strategy, sensitive projects: negative impact on the environment and natural resource impact on the environment and natural resource exploitation
CDC : less than $ 50 million
Provincial Authorities : less than $ 2 million
Management Board of Special Economic Zones: project within the zones
1818
C. Investment Climate (C. Investment Climate (concon´́tt))
3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Investment approval:
Investment Application
CDC issues a conditional Registration Certificate to the Applicant
Company Registration/Ministry of Commerce
Relevant licenses as appropriate/Ministry of Industry and Energy
Review and approval of construction plan/local authorities
Ministry of Land Management, Urban Planning and construction
Initial environmental impact assessment/Ministry of Environment
Tax Department Registration/Ministry of Economic and Finance
CDC issues a Final Registration Certificate to the Applicant
3 Working
Days
28 Working
Days
1919
C. Investment Climate (C. Investment Climate (concon´́tt))3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Incentives comparison
1994
9% corporate income taxTax holidays up to 8 Years (according to matrix)Reinvestment of profit(Tax free)Reinvestment of earning(Tax free)Full import duty exemptionNo export taxLicensing (evaluation and approval)
2003
20% corporate income tax Trigger period +3years+n(automatic) Reinvestment of profit(special depreciation)Reinvestment of earning(withholding tax)Full import duty exemptionNo export taxLicensing (simple)
2020
C. Investment Climate (C. Investment Climate (concon´́tt))
3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Investment protection: The investment law and sub-decree
contains a number of important guarantees for the investors:
Equal treatment of all investorsNo nationalization adversely affecting the property of investorsNo price controls on products or servicesNo restriction on foreign equity participationNo restriction on foreign convertibilityRemittance of foreign currencies abroad.
2121
C. Investment Climate (C. Investment Climate (concon´́tt))3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Increasing the participation of firms in the formal economy
by reducing the regulatory burden on firms including:Government-Private Sector Forum: Meeting in every 6 months.Lowering the cost of commercial registration: We have therefore lowered this cost by US$400.Eliminating unnecessary and multiple licenses: We have abolished the Economic Police permit. We have eliminated the Export License and the need to issue Certificates of Origin (CO)before the shipment is cleared.Lowering the minimum capital requirement for registration: We have therefore lowered from $5,000 to lower than $1,000 dollars.Reforming the inspection regime: The Ministry of Industry, Mines and Energy’s role in inspections of individual consignments has been confined to a “post-shipment inspection” with less encumbrances to the exporters.
2222
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access4. Location and Market Access
2323
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ Location:Location:
2424
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ Location:Location: The large market of Cambodia is the function of location, The large market of Cambodia is the function of location,
not the domestic market of Cambodianot the domestic market of Cambodia
2525
C. Investment Climate (C. Investment Climate (concon´́tt))4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒
ASEAN Membership: Tariff reduction scheduleASEAN Membership: Tariff reduction schedule
Remark: IL: Inclusion List, TEL: Temporary Exclusion List, SL: SRemark: IL: Inclusion List, TEL: Temporary Exclusion List, SL: Sensitive Listensitive List
CountryCountry Industrial and AgroIndustrial and Agro-- Industrial ProductsIndustrial Products
Agricultural ProductsAgricultural Products
ILIL TELTEL ILIL TELTEL SLSL
ASEANASEAN--66 19931993--20032003 19961996--20032003 19961996--20032003 19971997--20032003 20012001--20102010
VietnamVietnam 19961996--20062006 19991999--20062006 19991999--20062006 20002000--20062006 20042004--20132013
Laos & Laos & MyanmarMyanmar
19981998--20082008 20012001--20082008 20012001--20082008 20022002--20082008 20082008--20152015
CambodiaCambodia 20002000--20102010 20032003--20102010 20032003--20102010 20042004--20102010 20082008--20172017
2626
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒
ASEAN Membership: AISP for CLMVASEAN Membership: AISP for CLMV
Abbreviation of CLMV : Cambodia, Laos, Myanmar and VietnamAbbreviation of CLMV : Cambodia, Laos, Myanmar and Vietnam
2727
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ ASEAN membership: ASEAN + arrangements:ASEAN membership: ASEAN + arrangements:
-- ASEAN + 3 (Japan, China and South Korea): Economic ASEAN + 3 (Japan, China and South Korea): Economic Cooperation and Establishing East Asia FTA in the FutureCooperation and Establishing East Asia FTA in the Future
-- ASEANASEAN--CHINA: Special Preferential Tariff Treatment with new CHINA: Special Preferential Tariff Treatment with new Member of ASEAN and Free Trade Area in 2015Member of ASEAN and Free Trade Area in 2015
-- ASEAN + Japan: Comprehensive Economic CooperationASEAN + Japan: Comprehensive Economic Cooperation-- ASEAN + Korea: ASEANASEAN + Korea: ASEAN--Korea FTA : in process Korea FTA : in process -- ASEAN + India: Economic Cooperation and Comprehensive ASEAN + India: Economic Cooperation and Comprehensive
Economic CooperationEconomic Cooperation-- ASEAN + ECR: Closer Economic PartnershipASEAN + ECR: Closer Economic Partnership
2828
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ WTO membership: Doha Development Round (DDR)WTO membership: Doha Development Round (DDR)
-- Developed Countries provide duty free & quota free Developed Countries provide duty free & quota free (DFQF) for 97% for all products from (DFQF) for 97% for all products from LDCsLDCs..
-- Developing Countries is in the position to provide DFQF Developing Countries is in the position to provide DFQF for for LDCsLDCs..
-- Elimination of all kinds of export subsidies by 2013 (HK Elimination of all kinds of export subsidies by 2013 (HK mandate).mandate).
-- Cambodia is not required to make the tariff reduction.Cambodia is not required to make the tariff reduction.-- Cambodia is not required to make a new services Cambodia is not required to make a new services
sectorsector´́ss commitments.commitments.
2929
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ WTO membership: Cambodian tariffs scheduleWTO membership: Cambodian tariffs schedule
3030
C. Investment Climate (C. Investment Climate (concon´́tt))4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ WTO membership: Cambodian service commitmentsWTO membership: Cambodian service commitments
Undertaken market access and national treatment commitments in aUndertaken market access and national treatment commitments in at t least one subleast one sub--sector under each of 11 different services.sector under each of 11 different services.
Allowing foreign firm to operate in the areas of legal services Allowing foreign firm to operate in the areas of legal services (with (with some exceptions), accounting, auditing, bookkeeping, banking, some exceptions), accounting, auditing, bookkeeping, banking, management consulting, telecommunication and transport, but somemanagement consulting, telecommunication and transport, but someconditions were attached to market access in areas of financial conditions were attached to market access in areas of financial services and telecommunication services.services and telecommunication services.
Allowing foreign firms to provide higher education and adult eduAllowing foreign firms to provide higher education and adult education cation services.services.
Reserving part of a market for Cambodian small and medium sized Reserving part of a market for Cambodian small and medium sized enterprise in areas such as banking, tourism and courier serviceenterprise in areas such as banking, tourism and courier services.s.
3131
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ Great Mekong subGreat Mekong sub--regionregion
3232
C. Investment Climate (C. Investment Climate (concon´́tt))
4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ Great Mekong subGreat Mekong sub--regionregion
3333
C. Investment Climate (C. Investment Climate (concon´́tt))4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒ Countries according MFN/GSP to Cambodia = 0% import duty
or reduced import duty for Cambodian exports
AustraliaAustriaBelarusBelgiumBulgariaCanadaChinaCzech RepublicDenmarkFinlandFrance
GermanyHungaryIrelandItalyKoreaLuxemburgJapanNetherlandsNew ZealandNorwayPoland
PortugalROKRussian FederationSlovakiaSpainSwedenSwitzerlandUKUSAASEAN-6
3434
C. Investment Climate (C. Investment Climate (concon´́tt))4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒
Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other Countries.
– Already signed:
1. Malaysia2. Thailand3. USA (OPIC)4. China5. Switzerland6. Singapore7. ROK
– In the pipeline: Laos, Myanmar, Czech Republic, Ukraine, Egypt, Russia, PDR Korea, Libya, UK, Algeria and Japan.
8. France9. Philippines10. OPEC11. Croatia12. Cuba13. Vietnam14. Netherlands
15. Pakistan16. Austria17. Australia18. Indonesia19. Germany
3535
C. Investment Climate (C. Investment Climate (concon´́tt))
5. Cost and labor5. Cost and labor⇒⇒ Tax incentives (see in chapter of legal andTax incentives (see in chapter of legal and
institutional framework) institutional framework) ⇒⇒ Reasonable labor cost (see table below)Reasonable labor cost (see table below)⇒⇒ Young and energetic work forceYoung and energetic work force⇒⇒ Trainable and motivateTrainable and motivate--able laborable labor⇒⇒ Foreign friendly laborForeign friendly labor⇒⇒ Patient and brave laborPatient and brave labor
3636
C. Investment Climate (C. Investment Climate (concon´́tt))
5. Cost and labor (5. Cost and labor (concon´́tt))⇒⇒
Average monthly salaries for different professional levels:Average monthly salaries for different professional levels:
PositionPosition Salary in US$ (2004)Salary in US$ (2004)Manager, senior levelManager, senior levelManager, middle levelManager, middle levelManager, entry levelManager, entry levelAccountantAccountantSecretarySecretaryOffice ClerkOffice ClerkMessengerMessengerDriverDriverJanitorJanitorLaborerLaborer
1,0001,000--1,5001,500500500--1,0001,000250250--400400250250--400400120120--150150100100--120120100100--120120100100--1201204040--80804040--8080
3737
D. Area of InvestmentD. Area of Investment61
8
578
554
196
160
140
145
63
342
831
3037
0
500
1000
1500
2000
2500
3000
3500
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Total FDI
1. Investment in Cambodia1. Investment in Cambodia⇒FDI in Cambodia (in USD Million)
3838
D. Area of Investment (D. Area of Investment (concon´́tt))
2,059
1,956
1,359
559
357
331
267
20
0
500
1,000
1,500
2,000
2,500
China
Malays
ia
Korea USA EU
Thaila
ndSinga
pore
Japan
1. Investment in Cambodia (1. Investment in Cambodia (concon´́tt))⇒ Investments by Countries 1994-1st Half 2006 (Million US$)
3939
D. Area of Investment (D. Area of Investment (concon´́tt))
1.1. Investment in Cambodia (Investment in Cambodia (concon´́tt))⇒ Investments by Sectors 1994-1st Half 2006 (%)
Agriculture, 7%Tourism, 23%
Service, 34% Industry, 36%
4040
D. Area of Investment (D. Area of Investment (concon´́tt))
2. Encouraged investment activities2. Encouraged investment activitiesAgriculture and agro-industry Transport and telecommunications infrastructures Energy and electricity sectorsLabor-intensive industries and export- oriented processing and manufacturing; Tourism-related industries Human resource development
4141
D. Area of Investment (D. Area of Investment (concon´́tt))
2. Encouraged investment activities (2. Encouraged investment activities (concon´́tt))⇒ Agriculture and agro-industry
Key agrarian economy Natural endowments Organic cropsValue-added emphasis/Food processingNew products/technologydevelopment
4242
D. Area of Investment (D. Area of Investment (concon´́tt))
2. Encouraged investment activities (2. Encouraged investment activities (concon´́tt))⇒Transport and telecommunications infrastructures:
a definitely prospectPriority for infrastructure Infrastructure rehabilitation Multilateral aid availability Decentralization Regional and sub-regional Opportunities/integrations Private Participation in Infrastructure (PPI): BOT, BOO, etc.
4343
D. Area of Investment (D. Area of Investment (concon´́tt))
2. Encouraged investment activities (2. Encouraged investment activities (concon´́tt))⇒
Transport and telecommunications infrastructures: a definitely prospect for investors.
4444
D. Area of Investment (D. Area of Investment (concon´́tt))
2. Encouraged investment activities (2. Encouraged investment activities (concon´́tt))⇒Tourism
World heritage monuments Open sky policy to Siem Reap Ability to attract “add-on” tripsNatural beauty Novelty value
4545
D. Area of Investment (D. Area of Investment (concon´́tt))
2. Encouraged investment activities (2. Encouraged investment activities (concon´́tt))⇒Manufacturing and export
Competitive labor costPatient and brave labor Tax incentivesMarket accessRegional arrangementFavorable location
4646
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone Production Zone
The main rationale of establishing SEZs is to: – Provide investors with adequate infrastructure and supportive facilities– Effectively respond to the challenge of diversifying the Cambodian
economy and to promote demand-driven development, such as export promotion
– Enhance competitiveness of garment industry and other labor intensive activities
– Promote agro-industry, food processing– Promote assembling industry– Promote electronic and electric appliances industries
The following growth poles have been identified for industrial development: – Poipet and and Koh Kong (at the Cambodian-Thai border) – Bavet and Phnom Den (at the Cambodian-Vietnamese border)– Phnom Penh– Sihanouk Ville
Sihanouk Ville port has harbor facilities and “dry ports” which have been developed to enhance its competitive edge as an international commercial gateway.
4747
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt) )
4848
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt))
4949
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt) )
5050
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt) )
5151
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt) )
5252
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt))
5353
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt) )
5454
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt))
⇒ Phnom Penh Special Economic Zone(PPSEZ):
PPSEZ is the industrial and residential estate owned by Attwood Investment Group (Cambodia) joint venture with ZEPHYR Co., Ltd (Japan) with a 50-50 share.
The investment project has been approved by the first meeting of Cambodia Board of SEZ on 15 February 2006 which was presided by SamdechAkkar Mahar Senapadei Dekchor Prime Minister Hun Sen.
5555
E. Special Economic Zone/Special E. Special Economic Zone/Special Production Zone (Production Zone (concon´́tt))
5656
F. CambodiaF. Cambodia--Japan RelationshipJapan RelationshipRelationship between Japan and Cambodia
started when Morimoto Ukondayu Kazufusavisited Angkor Wat in the early 17th century.
After few year from the end of the world war, Japan and Cambodia tied the treaty of friendship and cooperation in 1953 (The Legation of Japan was established in 1954).
After that, different agreements were concluded between the two countries for structure of a true relationship at the governmental level.
5757
F. CambodiaF. Cambodia--Japan Relationship Japan Relationship ((concon´́tt))
⇒ Japan is the largest Donor Country forCambodia:
Japan is the top Donor Country to Cambodia, accounting for 25 percent of all assistance to Cambodia.
Grants: 115.5 billion yen (Total of 1992-2006)
Technical Cooperation: 43.3 billion yen (Total of 1992-2006)
Yen Loan: 16.0 billion yen (Total of 1992-2006)
5858
F. CambodiaF. Cambodia--Japan Relationship Japan Relationship ((concon´́tt))
⇒Cambodia-Japan Joint Efforts for Investment Promotion in Cambodia:
1. Bilateral Investment Treaty (BIT): Legal framework for liberalization, promotion and protection of investment
Ensure fair and equal competitive environment for investorsEnhance predictability and transparency of the basic rules and regulationsEnsure legal stabilityProtect investments Protect
2. Public-Private Dialogue Mechanism:Improve the investment environmentEnsure strict implementation of the BIT, the investment related laws and administrations proceduresSolve problems faced by investors
5959
F. CambodiaF. Cambodia--Japan Relationship Japan Relationship ((concon´́tt))
⇒Some milestones:ASEAN-Japan Comprehensive Economic
Partnership– Commencing negotiation in April 2005
Initiative of the Prime Minister JunichiroKOIZUMI
– Official Development Assistance to CLMV Countries amounting to US$1.5 billion for 3 years
6060
F. CambodiaF. Cambodia--Japan Relationship Japan Relationship ((concon´́tt))
⇒ Comprehensive Economic Partnership (CEP)ASEAN-JAPAN: Objectives
Strengthen economic integration between ASEAN and Japan through the creation of a CEP;
Enhance the competitiveness of ASEAN and Japan in the world market through strengthened partnership and linkages;
Progressively liberalize and facilitate trade in goods and services as well as create a transparent and liberal investment regime;
Explore new areas and develop appropriate measures for future co-operation and economic integration; and
Facilitate the more effective economic integration of the newer ASEAN Member States and bridge the development gap among the ASEAN Member States.
6161
F. CambodiaF. Cambodia--Japan Relationship Japan Relationship ((concon´́tt))
⇒ASEAN-Japan Commemorative SummitThe ASEAN-Japan Commemorative Summit was held in Tokyo on 11-12 December 2003, where the leaders of ASEAN and Japan signed the Tokyo Declaration for a Dynamic and Enduring ASEAN-Japan Partnership in the New Millennium and adopted the ASEAN-Japan Plan of Action.
The Tokyo Declaration intended– to enhance the political and security partnership;– to confirm the visions and principles including respect for
the rule of law, protection of fundamental human rights, democratic environment, respect for Asian traditions and values, and
– to cooperate for the creation of an East Asia community
6262
F. CambodiaF. Cambodia--Japan Relationship Japan Relationship ((concon´́tt))
⇒ Japan's commitment to the Doha Development Agenda (DDH):
Hong Kong WTO Declaration (December 2005)
PM Junichiro Koizumi's statement on Japan's initiative for LDCs
– >97% of tariff lines for duty-free and quota- free for imports from LDCs (starting sometimes in April 2007)
6363
G. ConclusionG. Conclusion⇒ Cambodia is a Country which has the substantial potentials for the investments:
Political stabilityOpen economySound macroeconomic environmentBusiness friendly governmentFavorable investment incentives and tax regimeStrategic locationLarge market access into the region and the worldRegional arrangementsWith reasonable cost located Country Special economic zone and economic corridorsForeigner friendly populationAbundant natural resourcesWorld famous tourist site
6464
THANKS YOUTHANKS YOU
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