1.The Unique Advantages on Geographical Location
Cambodia is located in traffic hub of Southeast 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 the policy of open and liberal market economy, and liberalizes economic activities highly with no foreign exchange controls. The U.S. dollar as currency can be circulated freely, and most of the industries are open to foreign investors. It is one of the countries with higher economic freedom in the world.
The economy in Cambodia has developed rapidly in recent years. Cambodia’s GDP for 2022 was approximately US$ 30.544 billion, a year-on-year increase of 13.29%.
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.
In March 2015, The Kingdom of Cambodia government has approve the Industrial Development Policy 2015-2025. The main goal is to transform Cambodia’s industry from labor-intensive to technology-intensive by 2025, and increase the proportion of industry in GDP from 24.1% in 2013 to 30%. The "2018 Priority Development Goals" determined 4 key priorities to be achieved by 2018 in order to promote and sustain the momentum of Industrial Development as following: Firstly, improving electricity supply to key industrial areas and estates, reducing the electricity price and ensuring the stability of the electricity supply.Secondly, building multi-modal transport and logistic system to connect to 3 keys industrial corridors namely Phnom Penh-Sihanoukville, Phnom Penh-Bavet Region and Phnom Penh-Poipet. Again, building modern institutions for vocational and technical training / human resources development needed by industries. Finally, developing Preah Sihanouk Province as a comprehensive demonstration economic special zone.
4.Relatively low labor
costs
Cambodia is a traditional agricultural country and the age structure of it tends to be younger. 70% of the population is below 30 years old. The labor resources are relatively abundant. The working population works hard and has strong development potential. The minimum wage for workers in 2023 is US$ 200 per month.
According to relevant laws and regulations in Cambodia, workers (regardless of gender) have a normal working day for 8 hours and 6 working days per week.
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.
Cambodia is the member of both ASEAN and Regional Comprehensive Economic Partnership Agreement(RCEP). On January 1st 2022, RCEP and CHINA-CAMBODIA FREE TRADE AGREEMENT CERTIFICATE OF ORIGIN officially came into effect. Enterprises will have access to the ASEAN and all the member states.
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