Reason to Invest in Cambodia

  • No Discrimination
  • 100% foreign ownership
  • Young and dynamic workforce (8.7 million of total population)
  • Dollarization
  • Least restriction on sectors for investment.

Conducive living conditions

  • Low living cost, safe environment and stunning natural beauty and rich history/culture of the country.
  • Ranked number one among the “World’s Friendliest Countries”.
  • Ranked as second place in Asia and 14th in the world as the best country for retirees to 2022.
  • Ranked as one of the top 10 best destinations for tourism over the next 10 years.
  • Second place of Nikkei's COVID-19 Recovery Index.
  • Ranked 1st in Southeast Asia and 3rd in Asia for the most affordable mobile data access prices.

Macroeconomic Stability

  • GDP growth averaged 7% per annum
  • GDP growth (Estimated 2021):  2.4%
  • GDP per Capita (Estimated 2021):  1 730 USD
  • Stable exchange rate (Estimated 2021): 4 065 Riel/USD
  • Low and manageable inflation rate (Under 5%)
  • Debt to GDP ratio (Estimated 2021) 25.1%
  • International reserves (Estimated 2021): 21.6 US$ billion
  • International reserves (Estimated 2021): 10.9 months of imports.
  • Cambodia is located in the heart of ASEAN and in the center of the southern Economic Corridor of the Greater Mekong Sub-region.
  • Completed ASEAN highway linking Thailand, Cambodia, Vietnam
  • Completed ASEAN highway linking Cambodia, Lao PDR, China
  • Upgraded Sihanouk-Ville Port (New general cargo terminal)
  • Upgraded Phnom Penh Port / new container port
  • The construction of Phnom Penh-Sihanoukville Expressway
  • The Construction of deep-sea port in Kampot province
  • Finalized installing fiber optic cable across the country
  • Connectivity and complementarity in regional production chains.

Investment Incentives

  1. Basic Incentives
    1. Option 1
      1. Income Tax Exemption for 3 to 9 years from the time of first earning its income
      2. Pre-payment tax exemption during income tax exemption period
      3. Minimum tax exemption, provided that independent audit report is carried out
      4. Export Tax exemption, unless otherwise provided in other laws and regulations
      5. Payment of income tax at a progressive rate to 6 years after the expiration of the income tax exemption period:
        1. First 2 years: 25% (equivalent to 5% tax rate)
        2. Next 2 years: 50% (equivalent to 10% tax rate)
        3. Last 2 years: 75% (equivalent to 15% tax rate)
    2. Option 2
      1. Special depreciation
      2. Deducting up to 200 percent of specific expenses
      3. Pre-payment tax exemption during income tax exemption period
      4. Minimum tax exemption, provided that independent audit report is carried out
      5. Export Tax exemption, unless otherwise provided in other laws and regulations.
    3. Both options will get additional
      1. Export QIP and Supporting Industry QIP are entitled to customs duty, special tax and value-added tax exemption for the import of Construction Material, Construction Equipment, Production Equipment and Production Inputs
      2. Domestically Oriented QIP is entitled to customs duty, special tax and value-added tax exemption for the import of Construction Material, Construction Equipment, and Production Equipment. The incentives for Production Inputs shall be determined in the Law on Financial Management and/or the LoI Sub-Decree 
  2. Additional Incentives
    1. Value added tax exemption for the purchase of locally made Production Inputs
    2. Deduction of 150% from the tax base for (a) Research, development and innovation, (b) Provision of vocational training (c) Construction of accommodation, canteens, nurseries and other facilities (d) Upgrade of machinery and (e) Provision of welfare for Cambodian workers/employees.
    3. Entitlement to income tax exemption for the Expansion of QIP which will be determined in the LoI Sub-Decree.
  3. Special Incentives: Any specific sector and investment activities having high potential to contribute to national economic development (determined in the Law on Financial Management).

Investment Guarantees and Protection

  • Fair Treatment
  • Protection from Nationalization
  • Protection from Pricing Intervention
  • Transfer Guarantee with foreign currencies
  • Protection of Intellectual Property
  • Land Ownership and Use (Investors have the right to use land through economic land concessions or perpetual leases and leases for a fixed duration, only Cambodian nationality shall have the right to own land).
  • Rights of Hiring Foreign Workers.
  • Access to the U.S. market – 1996 (GSP)
  • Access to the E.U. market – 1996 (EBA)
  • Access to United Kingdom market (GSP)
  • ASEAN Free Trade Area
  • Cambodia-China Free Trade Agreement
  • Cambodia-Korea Free Trade Agreement
  • Regional Comprehensive Economic Partnership (RCEP)
  • GSP/MFN (Under WTO Framework): 32 Countries.

One-Stop Service

  • Information and application
  • Fast-Track investment approval (processed within only 20 working days)
  • Visa and work permit
  • Company registration via Online
  • Investor after-care
  • Arranges site visits
  • Identifies potential suppliers, subcontractors, joint venture partners
  • Provide useful contacts with key public and private sectors
  • Coordinate between the foreign business community and other public agencies.

Pro-business Government

  • Government and Private Sector Working Groups
  • Government and Private Sector Forum
  • Private sector is an engine of economic growth
  • Easy access to relevant government officials

Special Economic Zone

  • 54 SEZs have been approved
  • 26 SEZs are operational
  • 21 SEZs are seeking funds.