Cambodia has attractive laws and an active and young working population. However, there are still some risks to consider when planning to Invest in Cambodia.
1. Less export due to possible suspension of EBA scheme.
2. European countries receive 1/3 of all exported goods. Losing duty-free and quota-free access can reduce the volume of exports.
3. The finance sector invests heavily in construction. This is a direct result of the One Belt, One Road Initiative.
A decline in the tourism sector could mean a decline in real estate projects. As a result, the cost of investing in the financial sector may decrease. A slight slowdown in the Chinese economy will have a major impact on Cambodia’s own growth.
Despite the risks, Cambodia is still a very attractive place to invest. It attracts foreign workers and offers a cheaper option for retirees. The country’s economic growth is expected to continue for the next decade. The Cambodian government is adding new rules to make it easier for foreigners to invest. The next step is to develop the skills and education of the young population to sustain this growth.
Kingdom of Cambodia in Southeast Asia. It shares borders with Thailand and Vietnam. It has 181,035 square meters. Km area of land, business areas divided into 25 provinces are Phnom Penh, Sam Rap, and Sihanoukville. Other good provinces that are investing are Khmau, Kampong Cham, Cape, Batambang and Kampot.
Phnom Penh is the capital of Cambodia. It is in the south-central region, which is surrounded by the province of Kundal. It covers an area of only 679 square kilometers. Land, but it is like any other province in the country.
Siem Reap covers an area of 10,290 square km. It is a tourist destination and receives one-third of the annual tourist arrivals. It is also home to the famous Angkor Wat archaeological site.
Sihanoukville has experienced a surge in Chinese investors over the past few years. The province is part of the One Belt, One Road project launched by China. This led to the development of infrastructure, roads, bridges and ports.
Cambodia has a population of over 16 million. 90 Khmer is leavened, and 5 Chinese are Chinese, Vietnamese and Cham Muslim.
Language and Religion
The main languages of Cambodia are Khmer, English and Chinese. English is used for most business transactions. It took Cambodia one step further than neighbouring countries such as Laos and Vietnam. Theravada Buddhism is the official religion, practised by 95% of the population.
According to the Global Retirement Index, Cambodia is one of the best countries to retire in the SEA. About 1.5 million foreigners now reside in the country. Most foreigners are from Western and Asian countries. It is rising because of the low cost of living. Getting a work visa is easy. It takes a little hard work to start a business. There are also many employment opportunities for foreigners.
Why Does Cambodia Attract Foreign Investors?
Cambodia is the best place to invest in Asian countries. This is a welcome development for foreigners. The government made it easy for any nationality to live long.
There are two types of visas in Real Estate Cambodia, divided into two types. Tourist visa. A tourist visa is a single entry pass that you can use for a period of 30 days. You can buy it at airports or land borders for 35. For ASEAN members, the tourist visa is free for 14-30 days, depending on nationality. There are 4 types of working visa or e-class visa.
l EG Visa – This visa is for job seekers. It is renewable for 1, 4, and 6 months.
l EB Visa – covers all foreigner workers and their dependants. It requires proof of employment and can be renewable for 3, 9, and 12 months.
l ER Visa – Retirees from other countries that can provide proof of income can apply for this visa. It also has a 6 or 9 month duration.
l ES Visa – Students enrolled in Cambodian schools and universities are eligible for this visa. The visa is for a 6, or 12 months period.
Yeast Rail is the official currency in Cambodia, but the US dollar is used for 80% of all business transactions. Cash is a common form of payment, with increasing credit card and online payment options.
What Type of Economy Does Cambodia Have?
The economy of Cambodia is an open market system. Economic decisions on investment, production and distribution depend on supply and demand. The open market is a system that allows free market activities. It gives special incentives to investors on tax duty.
Foreign Direct Investment (FDI)
The country’s economic growth is the result of foreign direct investment. FDI has increased by 800% in the last 10 years, with the highest being 2018 3.0 billion in 2018. The biggest investments are in real estate and construction. Manufactured goods such as clothes and shoes account for 1/3 of the exported goods. It increased to 17.6% in 2018 from 8.4% in 2017. Retail trade grew 5.3 percent. The gap between exports and imports is 10.4%, up from 9.7% in 2017. FDI is at a record high of 3 billion.
Incentives for Foreign Investment in Cambodia
Investment continues to grow due to favourable investment laws. Among other things, these are the reasons why Cambodia is attractive to foreign investors.
1. The government allows foreigners to do business. There are no trade restrictions, price controls, and foreign exchange regulations.
2. The US dollar facilitates financial transactions because it is stable. Yeast Rail also maintains an exchange rate of $ 1 = 4,000.
3. Foreigners can lease land for 50 years or more.
4. Foreigners do not need to change citizenship. They can repatriate income and any profits.
5. QIPs have special tax rates and discounts.
Real Estate Companies in Cambodia have been receiving large amounts of foreign investment in recent years. It has also achieved steady economic growth over the last 20 years. This Real Estate Cambodia Investment Guide will look at the factors of its financial growth and give you a reason to invest in the country.