Investment in Cambodia Prepared by Chan Bonnivoit

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


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


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


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


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


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


3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Flowchart of investment applications:


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


3. Legal and institutional framework (3. Legal and institutional framework (concon´́tt))⇒ Newly create 3rd arm of the CDC: The SEZ Committee


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


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


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


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


4. Location and Market Access4. Location and Market Access

2323


4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ Location:Location:

2424


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


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


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


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


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.

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4. Location and Market Access (4. Location and Market Access (concon´́tt))⇒⇒ Great Mekong subGreat Mekong sub--regionregion

3232


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

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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


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

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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


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


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


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


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


2. Encouraged investment activities (2. Encouraged investment activities (concon´́tt))⇒

Transport and telecommunications infrastructures: a definitely prospect for investors.

4444


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


2. Encouraged investment activities (2. Encouraged investment activities (concon´́tt))⇒Manufacturing and export

Competitive labor costPatient and brave labor Tax incentivesMarket accessRegional arrangementFavorable location

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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


5050


5151


5252


5353


5454


⇒ 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


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


⇒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


⇒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


⇒ 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.

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⇒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


⇒ 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

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THANKS YOUTHANKS YOU

Documents

Investment in Cambodia Prepared by Chan Bonnivoit