Why invest in Cambodia?
Cambodia, officially known as the Kingdom of Cambodia and once known as the Khmer Empire, is a country located in the southern portion of the Indochina Peninsula in Southeast Asia. Its total landmass is 181,035 square kilometres (69,898 sq mi), bordered by Thailand to the northwest, Laos to the northeast, Vietnam to the east, and the Gulf of Thailand to the southwest.
With a population of over 15 million, Cambodia is the 69th most populous country in the world. The official religion is Theravada Buddhism, practiced by approximately 95 percent of the population. The capital and largest city is Phnom Penh, the political, economic, and cultural center of Cambodia.
Bordering with two large markets: Thailand and Vietnam and with the population structured is heavily dominated by young and vigilant workforces, who offer quality services, Cambodia is served to convince the mind of entrepreneurs to consider Cambodia in their list. The connection between these two markets offers the investor a chance to explore more of business opportunity of the beginning of ASEAN Economic Community in 2015.
Since 2004, garments, construction, agriculture, and tourism have driven Cambodia’s growth. GDP climbed more than 7% per year between 2010 and 2013. The garment industry currently employs more about half million people and accounts for about 70% of Cambodia’s total exports. Cambodia is receiving special preference from European Union under rule of EBA (Everything But Arm). Under the rule of EBA, Cambodia is able to export every commodity except arm to European markets without quota. It is one of competitive incentive to invest in Cambodia and export the products to European market with tax zero rate. In 2005, exploitable oil deposits were found beneath Cambodia’s territorial waters, representing a potential revenue stream for the government, if commercial extraction becomes feasible. Mining also is attracting some investor interest and the government has touted opportunities for mining bauxite, gold, iron and gems. Cambodia also possesses a vast fertile land and livestock for agricultural business.
The tourism industry, Cambodia is one of the Asian cultural central points, having temples and ruins lie awaited for pleasing smile and caring heart, has continued to grow rapidly with foreign arrivals exceeding 2 million per year since 2007 and reaching over 3 million visitors in 2012. Hotels, resorts, restaurants, travel agency are making fortune out of this industry.