1.The Unique Advantages
on Geographical Location
Cambodia is located in
traffic hinge of southeastern Asia. It only takes 1.5 hours at average to fly
to other ASEAN countries.
Water Route: The Mekong
River runs through the country from north to south; the southwest of Cambodia
lays against the Gulf of Thailand with the international seaport—Sihanoukville
International Port.
Land Route: Cambodia
borders Vietnam at east, Laos at north and Thailand at northwest.
Air Route: There are three international airports in Cambodia including
Phnom Penh, Siem Reap and Sihanouk international airports.
2.The Secure Political Environment
(1)The domestic political situation: The political
situation in Cambodia is stable, the government pays attention to the
livelihood of the people and makes a strong strategy on developing economy, and
social security condition is healthy.
(2)The international political environment: Pursuing
independence and peace, Cambodia has been pursuing the permanent neutrality and
the nonaligned policy, maintaining friendly relationships with the majority of countries
in the world.
3.The Open Economic
System
Cambodia implements an open and free market
economic policy, and economic activities are highly liberalized. The U.S.
dollar can circulate freely in the market, and most industries are open to
foreign investors. It is one of the countries with higher economic freedom in
the world.
The
Cambodian government encourages the foreign investment. It has issued a series
of regulations and set up a dialogue mechanism at fixed period with the
investors. In 1994, the government approved the Law of Investment. According to
this law: apart from the provision about the ownership of land in Constitution of
the Kingdom of Cambodia, all investors are equal in law regardless of
nationalities and races. Cambodian government wouldn’t carry out the nationalization
policy which is harmful to investor’s property. For the approved investment
projects, the government would not control the prices on products and services.
4.Relatively low labor
costs
Cambodia is a traditional agricultural country and the age
structure of it tends to be younger. The labor resources are relatively abundant. The working
population works hard and has strong development potential. Compared with other
ASEAN countries, Cambodia has low labor costs. The minimum wage in 2022 is
US$194 per month.
5.The Favorable Trade
Status
In 2004, Cambodia was approved to join the WTO, and enjoys GSP
treatment by the USA, EU, Japan and other 25 countries / regions.
As a member of ASEAN, Cambodia has entered a market with ten
countries and a population of 600 million. In addition，the ASEAN has signed FTAs with South
Korea, Japan, India, New Zealand and Australia. It means that the companies
would have the ASEAN 10+6 huge markets with zero tariffs when investing in Cambodia.
| 
