INVESTMENT ENVIRONMENT AND OPPORTUNITIES IN CAMBODIA

1. INVESTMENT ENVIRONMENT AND OPPORTUNITIES IN CAMBODIA presented by SUON SOPHAL Deputy Director of Public Relations and Investment Promotion Cambodian Investment Board/Council for the Development of Cambodia

2. Key Indicators • Land area : 181,035 sq.km. • Population: 14.1 Million • Labor force (young) : 7,053,398 (Female: 3,608,345) • Population growth rate : 1.54% • GDP Growth (2012e) : 7% • GDP per capita (2012e) : $990 • Inflation (2012) : 3% • Exchange rate: USD 1= 3990 Riels

3. Economic Performance Average growth for last 5 years is 10.3% Source: SNEC & MEF

4. COUNCIL FOR THE DEVELOPMENT OF CAMBODIA OPEN DOOR POLICY ONE STOP SERVICE Customer Servicing Business Friendly

5. Council for the Development of Cambodia (CDC) Samdech Akka Moha Sena Padei Techo HUN SEN Prime Minister of the Kingdom of Cambodia Chairman H.E. Mr. Keat Chhon, Deputy Prime Minister Minister of Economy and Finance 1st Vice Chairman Trouble Shooting Committee H.E. Mr. Cham Prasidh, Senior Minister, Minister of Commerce 2nd Vice Chairman H.E. Mr. Sun Chanthol Senior Minister in charge of Special Missions Permanent Vice Chairman H.E. Mr. Kong Vibol Vice Chairman H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General CSEZB H.E. Mr. Chhieng Yanara Minister attached to the Prime Minister Secretary General CRDB H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General CIB H.E. Mr. Rith Vuthy Deputy Secretary General CRDB LCT. Heng Sokun Deputy Secretary General CRDB H.E. Mr. Chea Vuthy Deputy Secretary General CSEZB H.E. Mr. Chea Vuthy H.E. Mr. An Sophanara H.E. Mr. Heng Soknang Deputy Secretary General CIB SEZ GMS National Secretariat ODA FDI

6. Information & Application • Approval • Customs Duty & Tax Exemption • Visa & Work Permit • Company Registration A ONE STOP SERVICE

7. Council of Ministers : CDC but needs approval from CoM for project with investment capital exceeding $ 50 million, BOT, BOOT, BOO or BLT, long-term strategy, sensitive projects: negative impact on the environment and natural resource exploitation CDC : less than $ 50 million Provincial Authorities : less than $ 2 million Licensing Authorities

8. Investment Approval Investment application CDC issues a Conditional Registration Certificate to the Applicant 3 working days • 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 Economy and Finance 28 working days CDC issues a Final Registration Certificate to the Applicant

9. 20% Corporate Tax Tax holidays: Trigger period +3years+n; 6y <TH<9y Full Import Duty Exemption Reinvestment of earning (special depreciation) Investment Incentives

10. 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

11. 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

12. 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

13. Approved Investments by Country/Region(Outside SEZ 1994- 2012) US$ Million

14. Approved Investments by Sector1994 – 2012 1994-2012 Q1 2013

15. Investments in Cambodia 2008-Q1 2013

16. Infrastructure: A definite prospect • Priority for infrastructure • Infrastructure rehabilitation • Multilateral aid availability • Decentralization • Regional opportunities • ASEAN & GMS integration • Private Participation in Infrastructure (PPI): BOT, BOO, etc…

17. Basic agrarian economy Natural endowments: Rich fishery resources Good weather Agro-business • Organic crops • Value-added emphasis • Food processing • New product development

18. Tourism • World Heritage Monuments • Open Sky Policy to Siem Reap • Natural beauty - Beach - Islands • Ability to attract “add-on” trips • Novelty value

19. Tourism Center 150 km Poipet Eco-Tourism 314km Gulf of Thailand 230 km Sihanoukville Bokor (hill resort) Beach & Island Resorts

20. Visitors to Cambodia Thousand (000) Vision 2020: Visitor arrival from 2010 – 2020

21. Vietnam Korea China Lao PDR Thailand Japan U.S.A France Australia Malaysia Top ten markets in 2012

22. Investment Opportunities • Phnom Penh • International Convention Center • High-end hotel (Four Seasons, Hyatt, etc…) at the moment there are only Intercontinental Hotel, Sofitel and Raffles with approximately 500 rooms. • Siemreap • International Convention Center • High-end hotel (Four Seasons, Hyatt, Sheraton, and Marriott, etc…) at the moment there are only Raffles, Le Meridien, Sofitel, Aman resorts and Orient Express, with approximately 700 rooms. • Amusement park / recreational activities • Golf course (there are three existing golf courses) • Sihanoukville • High-end hotel (Four Seasons, Hyatt, etc…) • Golf Course

23. Manufacturing & Export • Competitive labor cost • Tax incentives • Market access • Regional arrangement

24. Australia Austria Belarus Belgium Bulgaria Canada China Czech Republic Denmark Finland Poland Portugal ROK Russian Federation Slovakia Spain Sweden Switzerland UK USA EBA (everything but arms initiative for LDCs) MFN/GSP Market Access • 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

25. Cambodia’s Special Economic Zones PoipetO’Neang SEZ M D S ThmorDa SEZ Kandal SEZ TharyKompong Cham SEZ Phnom Penh SEZ Koh Kong SEZ SouyChheng SEZ OknhaMong SEZ P (SEZ) I C H K T SEZ KiriSakorKoh Kong SEZ Dragon King SEZ GoldFame Pak Shun SEZ Sihanoukville SEZ1 No Activities Sihanoukville SEZ2 Under Construction Stung Hao SEZ S.N.CSEZ Operational Sihanoukville Port SEZ Kampot SEZ Duong Chhiv SEZ KompongSomSEZ

26. One Stop Service Special Economic Zone Administration • Company registration and investment license • Export/import permit • Work permit and Labor books (both workers and expatriate) • SEZA will provide on site immediate legal and administrative assistance

27. Cambodia has embraced the globalization process as part of its outward looking economic development strategy…. ACCESS TO THE EUROPEAN MARKET ACCESS TO THE U.S. MARKET 1996 1996 JOINING ASEAN 2004 1999 JOINING WTO

28. Reasons to invest in Cambodia • Open economy • Sound Macroeconomic Environment • Competitive Investment Incentives • One Stop Service – Fast-Track Investment Approval Process (28 days) • Low Labor Cost • Strategic Location • Preferential Trading Status • Access to ASEAN and World Markets

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

30. Invest in Cambodia and you have 325 million consumers virtually at your doorstep • Invest in Cambodia and you have 14 million consumers Invest in Cambodia and you have 600 million consumers at your doorstep

31. Thank you very much More information, please contact: cdc.cib@online.com.kh or visit: www.cambodiainvestment .gov.kh