Investment opportunities in Cambodia Presented by Mrs. Tui Pakarat-Rutten Managing Director of Intra Mekong / President of TBCC Date Aug 08, 2012. H/P: +66 81 839 2452 /+855 16 912 832 E-mail: manager@intra-mekong.com www.tbcccambodia.org www.intra-mekong.com

Kunming Chna India Myanmr Lao PDR Haiphong Danang Yangon Vietbam Regional Cooperation: ACMECS GMS BIMSTEC IMT-GT/JDS Korea Kunming India Chna Afghanistan Japan (JTEPA) China Pakistan Chiang Rai Myanmr Lao PDR Haiphong India Bangladesh GMS Myanmar Yangon Danang Laos BIMSTEC Vietnam Thailand Vietbam Philippines Bangkok Cambodia Andaman Sea ACMECS Cambodia Sri Lanka Ho Chi Minh Trat – Koh Kong IMT-GT/JDS Malaysia Brunei Gulf of Thailand Singapore Indonesia Malaysia Source: Dr. Jula Sukmanup www.tbcccambodia.org www.intra-mekong.com

The Greater Mekong Sub Region (GMS) People’s Republic of China Land area: 633 thou sq km Population: 93.8 M GDP per capita: US$1,032 (figures for Yunnan and Guangxi only) Myanmar Land area: 677 thou sq km Population: 54.8 M GDP per capita: US$255 Viet Nam Land area: 332 thou sq km Population: 83.1 M GDP per capita: US$622 Thailand Land area: 513 thou sq km Population: 65.3 M GDP per capita: US$2,727 Lao PDR Land area: 237 thou sq km Population: 5.6 M GDP per capita: US$491 The GMS in 2005 Land area: 2.6 M sq km Population: 316 M GDP per capita: US$1,102 The GMS: a natural economic area bound together by the Mekong River, and a shared culture and history. The six GMS members are Cambodia, the People’s Republic of China, Lao PDR, Myanmar, Thailand, and Viet Nam. PRC’s participation is currently focused only on the southern provinces of Yunnan and Guangxi. Land area: about 2.5 million square kilometers – about the size of Western Europe Population: 316 million people, a little larger than that of the United States Average per capita: reached the $1,000 mark last year, due to rapid economic growth. Competitive advantage: GMS is rich in human and natural resources and biodiversity, includes timber and fisheries, minerals, energy (hydropower, coal, petroleum and gas. It has a huge pool of young, industrious, and trainable labor. Living standards improving as a result of modernization and industrialization. Cambodia Land area: 181 thou sq km Population: 13.8 M GDP per capita: US$393 www.tbcccambodia.org www.intra-mekong.com

Road Transport Network GMS Connectivity Road Transport Network Animation Sequence Slide 1: Let me show you the evolution of the connectivity build up in GMS. This shows you the situation when the GMS Program started in 1992: Sub-regional roads --- all weather roads are mostly within Thailand and do not connect with neighboring countries; For power, only transmission line linking Lao with Thailand; telecoms mostly in Thailand. Lets look at the situation in 2004: Sub-regional roads --- are now going up all the way up north to Kunming and southwards connecting to Ho Chi Minh City; ADB funded Guangxi Road Development Project I linking Nanning (Guangxi’s capital) with Viet Nam. East West corridor goes all the way to Da Nang. Power transmission lines --- massive development along the coastal areas in Viet Nam and more interconnections between Lao and Thailand. Telecommunications backbone – now extends to Cambodia, Vietnam, Thailand and Lao PDR By 2012 this is what is projected: Sub-regional roads --- all weather roads would enable travel long the north-south and east west axis and across Myanmar all the way to India; ADB funded Guangxi Road Development Project II will complete the ring road from Yunnan to Hanoi via Nanning. Power transmission lines will see an increasing number of connections between Thailand and Cambodia, Cambodia and Viet Nam, Lao PDR –Thailand-Yunnan, Lao PDR- Thailand- Viet Nam, and Viet Nam- Guangxi-Yunnan. Telecommunications backbone will eventually have links with Yunnan Province and Myanmar. The 13th GMS Ministerial Meeting stressed continued enhancement of connectivity through further investment in key infrastructure, guided by comprehensive strategic frameworks, and supported by software in terms of establishing agreements, institutions and human resource capacities. 2015

สมาชิก และปีที่เข้าเป็นสมาชิก อาเซียน ASEAN ก่อตั้งเมื่อปี 2510 (1967) ครบรอบ 45 ปี (วันที่ 8 ส.ค. 2555) จุดประสงค์เริ่มแรก – สร้างความมั่นคง เพื่อต้านภัยคุกคามคอมมิวนิสต์ ปี 2510 ปี 2527 อาเซียน 6 สมาชิก และปีที่เข้าเป็นสมาชิก ปี 2540 ปี 2542 ปี 2538 สมาชิกใหม่ CLMV 5 5

CAMBODIA PROFILE Land area : 181,035 sq.km. Population: 14.720 Million Labor force (young) : 7,053,398 (Female: 3,608,345) Population growth rate : 1.54% GDP (2011) : 6.5% GDP per capita in 2011 : $909 Inflation (2011) : 5.5% Exchange rate: USD 1= 4053 Riels Source: CDC www.tbcccambodia.org www.intra-mekong.com

Economic Performance Average growth for last 5 years is 10.3% 2002 2003 2004 2005 2006 2007 2008 2009 2010 GDP per capita 331 356 402 468 534 623 738 731 830 Source: SNEC & MEF www.tbcccambodia.org www.intra-mekong.com

Cambodia Population Pyramid for 2010 Predicted age and sex distribution for the year 2010 www.tbcccambodia.org www.intra-mekong.com

Minimum wage in Cambodia Population Unit : million Year 2008 2009 2010e 2011e Population 13,957 14,206 14,454 14,702  (%) 2010 2011e GDP Growth 6.5% 7.2% Inflation 3.6% 8.3% Minimum wage in Cambodia $45.62 – $50.69 / month Source : Cambodia Outlook 2010 www.tbcccambodia.org www.intra-mekong.com

Reasons to invest in Cambodia Close to Thailand similar language and culture Open economy Competitive Investment Incentives One Stop Service – Fast-Track Investment Approval Process (28 days) Low Labor Cost Strategic Location Preferential Trading Status: MSN & GSP ( Most Favors Nation Treatment MSN; Generalized System Preferences) Access to ASEAN and World Markets Source: CDC www.tbcccambodia.org www.intra-mekong.com

Chong Jom, Thailand/O'Smach, Oddar Meanchey, Cambodia Hat Lek, Thailand/Koh Kong, Cambodia:(Cham Yeam Checkpoint) (Most direct access to Sihanoukville) Chong Jom, Thailand/O'Smach, Oddar Meanchey, Cambodia Chong Sa Ngam, Thailand/Anlong Veng, Oddar Meanchey Ban Pakard, Chantaburi, Thailand/Phsar Prom Pailin, Cambodia (Prom Checkpoint) Ban Laem, Chantaburi, Thailand/Daung Lem, Battambang, Cambodia (Daung Checkpoint) Source: www.canbypublications.com www.tbcccambodia.org www.intra-mekong.com

www.tbcccambodia.org www.intra-mekong.com

Rail Link in South East Asia www.tbcccambodia.org www.intra-mekong.com

Phnom Penh-Sihanoukville Port Phnom Penh-Sihanoukville Port Southern Line Phnom Penh-Sihanoukville Port 264km Southern Line Phnom Penh-Sihanoukville Port 264km www.tbcccambodia.org www.intra-mekong.com

AH Routes in Thailand www.tbcccambodia.org www.intra-mekong.com AH1: Aranyaprathet-Hin Kong-Bang pa –in (-Bangkok)-Mae Sot: 701 Km AH2: Sa Dao-Hat Yai-Bangkok-Chiang Rai- Tachilek: 1,913 Km AH3: Chiang Kong -Chaing Rai: 117 Km AH12:Nong Lhai-Udon Thani-Nakhon Ratchasima-Hin Kong: 511 Km AH13: Nakhon Sawan-Phitsanulok-Huai Kon : 557 Km AH15: Nakho Phanom-Udon Thani : 243 Km AH16: Tak- Khon Kaen-Mukhdahan: 689 Km AH18: Hat Yai-Sungai Kolok: 268 Km AH19: Bangkok-Laem Chabang-Kabin Buri – Nakhon Ratchasima: 458 Km AH112: Klong Loy-Bang Saphan: 29 Km AH121: Mukdaharn-Yasothon-Buriram – Sakaeo: 421 Km AH123: BongTi-Kanchanaburi-Nakhon Pathom-Bangkok-Chonburi-Laem Chabang-Maptaput-Rayong-Trat-Hat Lek: 574 Km Total: 6,693 km Source : DTN Thailand www.tbcccambodia.org www.intra-mekong.com

Investment Incentives 20% Corporate Tax Tax holidays: Trigger period +3years+n; 6y <TH<9y Full Import Duty Exemption Repatriation of profit (withholding tax) Reinvestment of earning (special depreciation) Source: CDC www.tbcccambodia.org www.intra-mekong.com

Investment Protection The Investment Law and Sub-decree contains a number of important guarantees for the investors: Equal treatment of all investors No requirement of local equity participation No price controls on products or services No restriction on forex convertibility Free remittance of foreign currencies abroad Source: CDC www.tbcccambodia.org www.intra-mekong.com

Australia Malaysia Austria China Croatia Cuba Czech France Germany Bilateral agreement on the promotion and protection of investments between the Kingdom of Cambodia and other countries Australia Austria China Croatia Cuba Czech France Germany Indonesia Japan Kuwait Lao PDR Malaysia Netherlands N. Korea OPEC Pakistan Philippine ROK Singapore Switzerland Thailand USA (OPIC) Vietnam Source: CDC www.tbcccambodia.org www.intra-mekong.com

1h:30 in average CAMBODIA Phnom Penh Southern China Myanmar Laos Kunming Southern China Myanmar Hanoi Laos Yangon o Vientiane Vietnam Thailand Manila Bangkok . CAMBODIA The Philippines Phnom Penh 1h:30 in average Brunei Begawan Kuala Lumpur Strategic Location Malaysia Singapore Jakarta Indonesia

MFN/GSP Market Access France Germany Hungary Ireland Italy N-Korea Poland Portugal ROK Russian Federation Slovakia Spain Sweden Switzerland UK USA EBA (everything but arms initiative for LDCs) Australia Austria Belarus Belgium Bulgaria Canada China Czech Republic Denmark Finland France Germany Hungary Ireland Italy N-Korea Luxemburg Japan Netherlands New Zealand Norway … and the ASEAN integration System of Preferences (AISP) from the ASEAN 6 www.tbcccambodia.org www.intra-mekong.com

Encouraged Investment Activities Agriculture and agro-industry Transport and telecommunications Energy and electricity Labor-intensive industries, processing and manufacturing; Tourism Human resource development Oil & Gas, Mining www.tbcccambodia.org www.intra-mekong.com

Agro-business Basic agrarian economy Natural endowments: Abundant land Rich fishery resources Organic crops Value-added emphasis/ Food processing New product development www.tbcccambodia.org www.intra-mekong.com

Manufacturing & Export Competitive labor cost Tax incentives Market access Regional arrangement www.tbcccambodia.org www.intra-mekong.com

Tourism World Heritage Monuments Open Sky Policy to Siem Reap Natural beauty - Beach - Islands Ability to attract “add-on” trips Novelty value Ability to attracts “add-on” trips With massive tourist arrivals from key regional centers, it would be easy to have side trips to Siem Reap, Phnom Penh, and Sihanoukville areas, without having to bring tourists all the way from countries of origin. Novelty value In the early years, Cambodia can still benefit from novelty quality, as few people have visited in the past. www.tbcccambodia.org www.intra-mekong.com

Cambodia Tourism Destinations Siem Reap Eco-Tourism Area Phnom Penh & Its Surroundings Costal Area 25

SIEM REAP, World Heritage Site www.tbcccambodia.org www.intra-mekong.com

SIEM REAP, World Heritage Site www.tbcccambodia.org www.intra-mekong.com

Eco-Tourism in the Northeast The Adventure of a life time… 28

Visitors to Cambodia Thousand (000) Visitor arrival from 2010 - 2020 YEAR 2010 2011 2015 2020 Visitor Arrivals 2,508,289 2,882,000 3,700,000 6,000,000

การลงทุนที่ได้รับอนุมัติจาก CIB ปี 2549 – 2554 คณะกรรมการส่งเสริมการลงทุนกัมพูชา (Cambodian Investment Board : CIB) ได้อนุมัติโครงการส่งเสริมการลงทุนในกัมพูชา  ตั้งแต่ปี พ.ศ. 2537 ถึงวันที่ 31 ธันวาคม 2554  จำนวน 1,978 โครงการ มูลค่าเงินลงทุน 8,978.0 ล้านดอลลาร์สหรัฐฯ                 การลงทุนที่ได้รับอนุมัติจาก CIB ปี 2549 – 2554    รายการ หน่วย 2549 2550 2551 2552 2553 2554 2554/2553    อัตราการเพิ่ม(ลด)% มูลค่าเงินลงทุน ล้านดอลลาร์สหรัฐฯ 207.7 480.7 259.9 149.0 172.8 507.3 +334.5 ล้าน USD 194 % จำนวนโครงการ โครงการ 99 130 101 100 102 148 +38 โครงการ  37 % ที่มา : Cambodia Investment Board ในปี 2554 CIB อนุมัติโครงการลงทุนรวม 148 โครงการ เงินลงทุน 507.3 ล้านดอลลาร์สหรัฐฯ เมื่อเทียบกับปี 2553 พบว่า อนุมัติเพิ่ม  38 โครงการ หรือเพิ่มร้อยละ 37 และเงินลงทุนเพิ่ม 334.5 ล้านดอลลาร์สหรัฐฯ หรือเพิ่มร้อยละ 194  www.tbcccambodia.org www.intra-mekong.com

Approved Investments by Country/Region (1994- Nov 2011) www.tbcccambodia.org www.intra-mekong.com

Approved Investments by Sector 1994 – Nov 2011 Source: CDC www.tbcccambodia.org www.intra-mekong.com

Invest in Cambodia and you have 600 million consumers at your doorstep www.tbcccambodia.org www.intra-mekong.com

What should we aware of investing in Cambodia? How to choose the partner ? Law and Regulation Information Implementation of ASEAN FTA Exchange Rate and Inflation Government Services Tariff www.tbcccambodia.org www.intra-mekong.com

Useful link http://www.investincambodia.com http:// www.ccb.com.kh http:// www.tbcccambodia.org http://www.asean.org http://www.affalog.net http://www.adb.org/GMS/Cross-Border/about.asp http://www.adb.org/GMS/Economic-Corridors http://www.eastasiawatch.in.th http://upload.wikimedia.org/wikipedia/commons/2/21/Asian_Highways.png http://www.unescap.org/ttdw/FFmeeting/FFForum_2010/7.pdf http://info.worldbank.org/etools/tradesurvey/mode1b.asp#moreinfo http://www.nesdb.go.th www.tbcccambodia.org www.intra-mekong.com

www.tbcccambodia.org www.intra-mekong.com

THANK YOU SO MUCH FOR YOUR ATTENTION Presented by Mrs. Tui Pakarat-Rutten Date: 08-Aug-2012 Managing Director of Intra Mekong / President of TBCC H/P: +66 81 839 2452 E-mail: manager@intra-mekong.com www.tbcccambodia.org www.intra-mekong.com