Cambodia

is an emerging market with healthy growth rates over the last 5 years. This development will continue for the foreseeable future. General statistical data do not show the real picture about this country. To understand this country one has to look at its recent history - from the time the king father Norodom Sihanouk was ousted in 1970 to present-day Cambodia with a government elected under Western principles, though perhaps not entirely according to Western practice. The most wide-spread and pervasive obstacle to faster development is a deep-rooted corruption and an apparent disregard of the ruling class for the plight of the poor. It is only a matter of time for the old guard, dating back to Communist days, to disappear and hand over the reigns to Western educated younger people with a different mind-set and understanding of what is good for the country.

Nevertheless and in spite of this, Cambodia offers good opportunities for foreign investors, which are widely welcomed by both the government and the people. Investors provide jobs. Low wages attracted mostly labor-intensive industries, e. g. garment manufacturers. Tourism plays another vital role for the Cambodian economy. Real estate is booming - demand currently outstrips supply leading to extraordinary growth rates, which we perceive to persist for at least another two years, in other words, this is the time to get in. The recent discovery of oil in Cambodian waters will add another motor to the economy in the years to come with a very positive effect on real estate developments. The investments are safe.

Cambodia's Investment Law offers:  

• 9% corporate income tax
• Tax holidays of up to eight years
• Full import duty exemptions for export-oriented projects
• Free repatriation of profits
• No nationalization and price control
• No withholding tax on dividends
• Five year loss carried forward

Cambodia qualifies for GATT, Generalized System of Preferences (GSP) and this status has been granted by 26 countries, including the European Union, Japan, Canada, Scandinavia, and Australia. Cambodia hopes to secure the Most Favored Nation Status (MFN) with the United States in the very near future.   There is a Council for the Development of Cambodia, which is a One Stop Service investment centre, established in 1994 by the Royal Government of Cambodia, which provides local and overseas investors with a fast-track route to new business opportunities in this ever-ch anging and dynamic country. The CDC, in guaranteeing to evaluate investment applications for all projects except those involving natural resources in 45 days or less, offers the speediest and most efficient response in the region. The application procedures are user-friendly, easy to understand and free of unnecessary red tape. The CDC is also empowered to grant important duty and tax exemptions, process company registrations, visas and work permits, and provide potential investors with economic and social data.

The principal of IAMD lived and worked in Cambodia for 4 years and has personal ties to this country through his marriage to a Cambodian wife. IAMD maintains an office in Phnom Penh staffed by Cambodians, which is important to cross the cultural divide that might exist. We have extensive knowledge about and expertise in business in Cambodia.

Statistics - Cambodia