“Cambodia is a country that provides zero foreign investment regulations and a customized investment environment for each company.”
“Cambodia does not restrict any economic sector,” Sun Chan-tol, Cambodia’s deputy prime minister and first vice chairman of the Cambodia Development Commission (CDC), said at a meeting with Korean businessmen’s preventive groups on the 26th.
On the same day, Deputy Prime Minister Sun Chan-tol, who met with representatives of Korean companies such as Samsung Electronics at the CDC building in Phnom Penh, Cambodia, intensively explained the investment environment related to Cambodia for about an hour. No country has a market-friendly environment with a business-friendly government and zero-regulation policies like Cambodia, he said. “Let’s strengthen investment cooperation between the two countries.”
Deputy Prime Minister Sun Chan-tol is in charge of attracting foreign capital to Cambodia and is a key economic bureaucrat in Cambodia. Having lived abroad for nearly 20 years, including the United States, he personally watched the economic growth and development of advanced countries, and based on his experience, he returned to his country Cambodia in 1994 and drew the foundation for national development projects from the ground up with former Prime Minister Hun Sen.
The organ that was created at that time is the CDC. The CDC, which is in charge of overall investment-related affairs in Cambodia, provides investment-related information to domestic and foreign companies and institutions and reviews whether incentives are approved.
It has the authority to approve major tariff and tax exemptions and is also responsible for presenting specific guidelines to foreign investors such as corporate registration, visas and employment permits.
Cambodia announced the Investment Act (LOI) in October 2021 to establish an open, transparent and predictable legal framework to attract efficient investment from domestic and foreign companies, Deputy Prime Minister Sun Chan-tol said. “As part of that, Cambodia is looking at foreign investors at the same level as its own citizens.” He added, “Cambodia has no inheritance or gift tax, and foreign exchange transactions are free.”
Throughout the conversation with Korean businessmen, Deputy Prime Minister Sun Chan-tol said, “(Cambodia) believes that the private sector is the engine of economic growth, so it is willing to create the investment environment that individual companies want.”
The Special Economic Zone (SEZ) symbolizes Cambodia’s free investment environment. The SEZ is a special region designated by the Cambodian government to attract foreign investment and promote economic development.
Based on stable infrastructure such as roads, ports, and electricity, VAT on imports of raw and subsidiary materials will be exempted, and tenant companies will be given exceptional tax benefits such as transferring money abroad without additional restrictions on profits. Currently, there are a total of 26 SEZs in Cambodia. SEZ is also active in Phnom Penh, the capital city, which is located near the Vietnamese border, which is advantageous for logistics and transportation, and is located near the Thai border or international port.
It is explained that each SEZ is optimized for industries located in SEZ such as electricity, electronics, machinery, and automobiles. Deputy Prime Minister Sun Chan-tol said, “It doesn’t matter what industry it is. You can even produce kimchi in Cambodia, he said. “The Cambodian government is ready to help any industry or industry, so (Korean businessmen) should have a flexible perspective.”
Korean businessmen visited the Phnom Penh Special Economic Zone (PPSEZ) operated by the Japanese company Royal Group after meeting with Deputy Prime Minister Sun Chan-tol. Royal Group CEO Hiroshi Uematsu told Korean businessmen, “There are companies from various countries in PPSEZ, including Japan, China, the United States, Thailand, and the Philippines, but unfortunately, there is only one Korean company,” adding, “We want to invite more Korean companies in the future.”
PPSEZ is one of 26 SEZs in Cambodia. There are 114 companies in the fields of electronics, auto parts, clothing, and beverages, and there are 43,000 workers working here. It has its own power plant, so the power situation is good, and it is located in Phnom Penh, the capital, and the manufacturing environment is evaluated as stable.
The 357 hectares of land visited by entrepreneurs were lined with factories and warehouses from global companies such as Coca-Cola, Toyota, Denso, and Marvel Garment. Uematsu, who boarded the Korean inspection team’s bus, explained in detail the history and status of factories seen on both sides, as well as the tax and tariff benefits received by the companies.
Korean businessmen also went directly into the factory of SVI, a Thai electronics company. SVI is a global company with factories in five locations, including Thailand, Australia, and Slovakia, employing more than 6,500 employees worldwide. Businessmen wore head and foot coverings and gowns to closely examine facilities that produce cameras, audio, and medical equipment, as well as workers working. There were also constant questions about the benefits that PPSEZ tenants could actually receive, support from the Cambodian government, and the skill level of workers.
After completing the PPSEZ inspection, Han Chang-ho, chairman of Hoemyung Industrial, said, “I thought Cambodia had cheap labor and gave SEZ benefits, so labor-intensive companies had enough attractiveness to enter the market.”
Source: https://www.mk.co.kr/en/business/10974907#none
