6 Tips to Take Advantages of Investing in Cambodia

Cambodia Real Estate is on the path to sustainable development in the 21st century. It experienced strong economic stability and a significant improvement in living standards.

Strong Trade and International Relations

Cambodia can benefit from its membership of the Association of Southeast Asian Nations (ASEAN). By 2010, tariffs on most of Cambodia’s exports and imports from ASEAN member countries have been reduced from 0 to 5%  and will be phased out by 2018. It has entered into bilateral investment agreements to provide reciprocal national treatment to investors, prevent seizures and guarantee return on investment.

Strengthened financial sector and system

Over the past decade, since the completion of the bank’s restructuring programs in 1999, progress in the banking sector has been generally remarkable. This was observed in banking and financial stability, financial services developed through institutional and legal reforms under the financial sector blueprint.

Inflation remains under control

Despite high fuel prices, the Cambodian government has managed to control inflation. Tight monetary policy and the growing influence of monetary policy in controlling the spread of money supply have contributed to this stability.

Investment incentives in special economic zone

Cambodia Investment law offers a 9 year tax holiday, a zero percent rate on value-added tax and a complete exemption from import duties on raw materials and equipment. In addition, it guarantees investors a free return on their profits.

Investment protection

The Cambodian government treats all investors equally and ensures free remittances abroad. There is no need for investors to participate in local equities.

Quality Manpowers and Resources

The Cambodian workforce has one of the greatest advantages of the Cambodian’s over any other Asian country. With higher education priority, the literacy rate in the country is 94% the highest. English is taught in all schools, making the Cambodians the third largest English-speaking country in the world. Each year, approximately 350,000 graduates strengthen the professional pool.

Strategic Business Location

Real Estate Cambodia is located in the heart of Asia, the fastest growing region today. It is located within four hours of the flight from the major capitals of the region. Located at the crossroads of Eastern and Western trade, it is a key entry point to the ASEAN market for over 500 million people and a gateway to international shipping and air routes for European and American businesses.

Liberalized and Business-Friendly Economy

Government corporations are being privatized and banking, shipping, telecommunications and power industries have been deregulated. Incentive packages include corporate income tax, which has been reduced to the current 32%, while companies in special economic zones are subject to a total tax rate of only 5%. Multinational companies seeking regional headquarters are entitled to tax breaks and benefits such as tax and duty-free imports of specific equipment and materials.

Developing Infrastructure for Global Growth

A well-developed communication, transportation, business and economic infrastructure connects the three major islands and distinguishes the Cambodian economy. Extremely accessible through air, water and cyberspace, inter-island shipping and the freedom of domestic aviation have led to even better facilities and services. Container terminals are well suited for handling cargo traffic at the highest efficiency.

Communication provides 24/7 seamless international connectivity with fiber optic cable as basic backbone network and satellite as backup. Economic reforms emphasize regional development, turning remote areas into business hubs. Historic BOT legislation allows private investors to build and operate infrastructure, then hand it over to the Cambodian government after a certain period of time.

Hospitable Lifestyle

Discover the best of the sun, sea, sand and style in a tropical setting with the best western facilities. The Philippines is the second home for immigrants who enjoy the company of the warmest people in the region, the country’s openness to diverse cultures and a decisive global perspective. Foreigners enjoy accessible and affordable amenities like business centers, accommodation, hospitals, shopping malls, hotels, restaurants and beach resorts.

Unlimited Business Opportunities

As Asian economies merge within the broader framework of the ASEAN Free Trade Agreement (AFTA), the Philippines is the natural and most strategic location for firms seeking access to ASEAN’s large market and its vast trade opportunities. The Philippines has expanded and established a variety of sectors for investors and offers a vibrant consumer market accustomed to a range of product choices created by a competitive domestic economy.

Very competitive investment incentives

The implementation of the new investment law means that the Real Estate Cambodia now offers a good business incentive package. Making the country’s external economy an attractive place to invest.

Highlights of new law are as follows:

9% corporate / income tax

Tax holidays of up to 8 years

Loss of 5 years extended

Full import duty exemption

There is no holding tax on dividends

Free return on profits

No nationalization and no price control

Land lease for up to 70 years

Market Size and Access

The capital event and Cambodia’s integration into ASEAN and the WTO lead to a major business tourism activity. With more than 50% hotel rooms, 30% guest house rooms and 60% travel agencies in the country, Phnom Penh has some of the most important tourist activities in the country, beyond Sam Rap but in a different capacity.

As a Least Developed Country (LDC), Investing Cambodia has preferential access to some of the world’s richest markets for a variety of products such as garments.

An Open Economy

Cambodia Investment is one of the most open economies in Asia. In 2003, Cambodia was ranked 35th out of 170 countries by the United States Heritage Foundation’s Economic Freedom Index. Far ahead of Thailand (40th) and far ahead of many of its neighbours. Among the world’s least developed countries (LDCs) in the index, Cambodia also tops the list in terms of market friendliness.

Abundant young & low cost labor force

Its low-wage, trainable, and encouraging workforce is an asset in today’s increasingly competitive global economy.

Strategic location in greater Mekong subregion

It is located in the center of the “Second East-West Corridor” between Bangkok and Ho Chi Minh City.

Special promotion Zone

Industrial zones will be set up in Phnom Penh, including export processing zones and free trade zones.