Educational level: Continuing education / Executive education programs.
Course summary (Doing Business in Cambodia)
Business in the Kingdom of Cambodia. Imports exports. Telecommunications, Garments, Agribusiness. Phnom Penh SEZ
The Kingdom of Cambodia is situated in Southeast Asia, bordering the
Gulf of Thailand, Thailand,
Laos, and
Vietnam. 90% of Cambodia's population
is ethnically Cambodian. Theravada Buddhism is the religion of 95% of the
population. Phnom Penh (2 million people) is the economic and
political center of Cambodia.
The country is a member of most major international organizations, including the
United Nations and its specialized agencies, and became a
member of the Association of Southeast Asian Nations (ASEAN)
in 1998.
Cambodia is a member of the World Bank, the
International Monetary Fund,
and the Asian Development Bank (ADB).
On October 13, 2004, Cambodia became the 148th member of the
World Trade Organization (WTO).
Over the last decade of peace and stability, Cambodia has achieved high
economic growth at an average of 9.4% per annum. Economic growth reached
10.6% per annum over the last 5 years. Manufacturing output is
concentrated in the garment sector, and garments dominate Cambodia's
exports, especially to the United
States. The service sector is heavily concentrated in trading
activities and catering-related services.
According to the data from the Customs and Excise Department showed in third
quarter 2010, the total value of import increased by 21.03% -from 1.990 to 2.409
billion riels, compared to the same last year’s. Total value of export amount
1.045 million dollar, an increased by 30.04% -from 804 million dollars, compared
to same period last year.
- Main exports products: garments, shoes, cigarettes,
natural rubber, rice, pepper, wood, fish.
- Major export partners: United States, Germany, U.K.,
Singapore, Japan, Vietnam
- Main imports: fuels, cigarettes, vehicles, consumer goods, machinery.
- Major import partners: Thailand,
Singapore, China,
Hong Kong, Vietnam, Taiwan, United
States.
- Economic aid received: $989 million in grants or concessional loans were
disbursed in 2009. Major donors: Asian Development Bank (ADB), UN Development
Program (UNDP), World Bank, International Monetary Fund, Australia,
Canada, China, Denmark, the EU,
France, Germany, Italy, Japan, Sweden, Thailand, the U.K., and the U.S.
Cambodia has opened its economy for
Foreign Direct Investment (FDI)
in all sectors including banking, insurance and telecommunications.
Unlike in other countries, investors in Cambodia are allowed to control 100 per
cent of the shareholding, without local participation requirement. Principal
foreign commercial investors: Korea,
China, Russia, Thailand, the U.S., and
Vietnam.
The Royal Government has approved a total of 21 Special Economic Zones
(SEZs) located along the border with Thailand and Vietnam (Koh Kong, Poipet,
Savet, Phnom Den), at Sihanoukville and Phnom Penh. Of the 21, 6 have commenced
operations. Businesses within the SEZs benefit from a number of fiscal
incentives, including income tax, customs, and VAT benefits.
The Cambodia General Deparment of Customs and Excise (GDCE) was
established in 1951. The operations of the GDCE were suspended from 1975 to 1979
during the Khmer Rouge regime. It resumed operations on 13 August 1979 under the
guidance of the Ministry of Commerce, and was transferred to the Ministry of
Economy and Finance (MEF) by sub-decree. The GDCE became the 155 th member of
the World Customs Organization
(WCO) in June 2001. Tariff structure was changed in 2001 when the number of
tariff bands was reduced from 12 to 4 and the maximum rate dropped from 120% to
35%, thus narrowing the spread.
The Sihanoukville Autonomous Port (PAS) is the sole international and
commercial deep seaport of the Kingdom of Cambodia. PAS is strategically located
in a geographically ideal point of the deep water area of Cambodian coast line
which connects Cambodia to other major world-class ports positioned on
Asia/Pacific trade routes.
International Economic Relations. Cambodia is member of: Association of Southeast Asian Nations (ASEAN) -
ASEAN Economic Community - ASEAN Free Trade Area (AFTA), Mekong Economic Cooperation
Strategy (ACMECS),
Mekong River Commission (MRC), Boao Forum For Asia (BFA), Asia Cooperation Dialogue (ACD), Asia - Middle East Dialogue
(AMED), Asia-Europe Economic Meeting
(ASEM), Forum for East Asia-Latin America Cooperation (FEALAC), Asian Development Bank (ADB), Economic and Social Commission for Asia and the Pacific (ESCAP)
Cambodia has Free Trade Agreements (FTAs of ASEAN) with:
Australia New Zealand,
Canada, China,
India, European Union,
Japan, Korea,
Russia, US,
Pakistan. Is beneficiary of EU's Generalised System of Preferences (GSP)