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A blessing in disguise for Cambodia

Healy Consultants
01 June, 2015

Cambodia is on the list of the UN's 48th least developed countries in the world. Once an empire and one of the most beautiful countries in the world, Cambodia is firmly placed among the last countries for development in multiple areas; from infrastructure to income levels and gross domestic product. There is little political will in Cambodia to make any real change and improve the situation in the country, where GDP per person in 2011 was only equivalent to US$2,805 (147th out of 187th). However, Cambodia does have some commercial competitive advantages.


The blessing

Being labelled as least developed country has its pluses, namely the free import trade reach to large markets, such as the European Union. Exports to the union are not taxed on arrival, which optimizes the costs for local produce (mainly garment industry).

Under the Generalized Scheme of Preferences, all Cambodian exports, except weaponry, are free from import taxation, stimulating the stagnant economy and contributing to the growth and expansion of Cambodian products and infrastructure. This program successfully operates in several nearby countries, including Laos and Bangladesh, as the EU is one of the largest trade partners in the region.

Investors in Cambodia will benefit further from its membership in ASEAN, as this free trade area subjects exports with low 0.5% between member countries, some of which boasts substantial markets like Indonesia.


Who is the biggest investor in Cambodia?

Surprising to many, the largest foreign investor in Cambodia is outside of ASEAN. South Korea is the leading investor in Cambodia with more than US$300 million in direct investments. Taking advantage of the cost-efficient production options and very cheap staff is a good enough reason for many industries to invest in a country, but the optimized trade under the Generalized Scheme of Preferences makes Cambodia a preferred place for many corporations.

"Cambodia is a new manufacturing base for Korean investors," said Kang Namshik, the chairman of the Korean Chamber of Commerce in Cambodia.


Globalisation

The World economy is globalising at booming rates and each country needs to keep up with its competition to attract direct investments. Cambodia has the ingredients to win the investment race and in the meantime fix its economy. A win-win situation!


Contact us

Contact us at email@healyconsultants.com or call us at +65 6735 0120 to learn more about registering a company in Cambodia.


As always, feel free to call me on the numbers below if you would like to speak to me personally about the above. I am always at your disposal for any clarification you may need.


Best regards,
Mr. Petar Chakarov
---------------------------------
Client Relationship Manager
Healy Consultants
View my profile here!
15th Floor, Valley Point, 491B River Valley Road, Singapore 248373
Tel: (+65) 6735-0120
Follow us on Linkedin and Google+
Web: www.healyconsultants.com


Tags: Euro


About the Author


Healy Consultants

Healy Consultants Pte Ltd., provides a comprehensive range of business services and has been assisting investors worldwide to set up the optimum structure in Israel and China for many years. The services offered include company registration, banking solutions, accounting and tax and legal services and corporate support services.

To inquire more about Israel and China company setup options and schedule a conference call, email us at email@healyconsultants.com or call us on +65 6735 0120.

Web: www.healyconsultants.com

 

 

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