new land for investing

Since the promulgation of Cambodia's liberal new Investment Law in August 1994, foreign direct investment projects valued at more than US $2billion have been approved by the Council for the Development of Cambodia (CDC) -- the Royal Government's One Stop Service investment agency. Cambodia is now open for business with an investment law which offers overseas and local companies attractive and competitive incentives. Cambodia's Investment Law offers: * 9% corporate income tax * Tax holidays of up to eight years * Full import duty exemptions for export-oriented projects * Free repatriation of profits * No nationalization and price control * No withholding tax on dividends * Five year loss carried forward Cambodia qualifies for GATT, Generalized System of Preferences (GSP) and this status has been granted by 26 countries, including the European Union, Japan, Canada, Scandinavia, and Australia. Cambodia hopes to secure the Most Favored Nation Status (MFN) with the United States in the very near future. About the CDC The Council for the Development of Cambodia is a One Stop Service investment centre, established in 1994 by the Royal Government of Cambodia, which provides local and overseas investors with a fast-track route to new business opportunities in this ever-ch anging and dynamic country. The CDC, in guaranteeing to evaluate investment applications for all projects except those involving natural resources in 45 days or less, offers the speediest and most efficient response in the region. The application procedures are user-friendly, easy to understand and free of unnecessary red tape. The CDC is also empowered to grant important duty and tax exemptions, process company registrations, visas and work permits, and provide potential investors with economic and social data. The CDC Executive Board comprised and follows: * Co-Chairmen: o HRH Prince Norodom Ranariddh, First Prime Minister o H.E. Samdech Hun Sen, Second Prime Minister * Deputy Chairman: H.E. Keat Chhon, Minister of Finance * Secretary General CDC: H.E. Chanthol Sun, State Secretary of Finance * Secretary General CIB: H.E. Vichit Ith * Secretary General CRDB: H.E. Chhieng Yannara The CDC comprises two important executive board: The Cambodia Investment Board (CIB) deals with all private sector applications. Led by Secretary General Vichit Ith-the author of the country's new Investment Law-the CIB is a one stop service for private investment. The Cambodia Rehabilitation and Development Board, headed up by Secretary General Chhieng Yannara, deals with infrastructure planning and all public sector projects. The CRDB also liaises with aid bodies and the many non-governmental organizations workin g for a better Cambodia. Cambodian Investment Board Nation Religion King INFORMATION TO INVESTORS The Board welcomes all the potential investors to come and invest in Cambodia and our staff stands ready to facilitate your endeavor in this respect. In order for the Board to take into consideration your investment proposal, kindly submit the following documents: 1. Investment Project Application Form CIB 01A 2. Financial Feasibility Study of your project 3. Latest Annual Report of your company 4. A US$100 application fee Upon reception of the above, the Board will render its decision within 45 days at the latest. Our Information Desk is at your disposal for any questions that you may have. ANNOUNCEMENT The Board has the pleasure to inform potential investors that it has started its operation since Monday, August 8, 1994. Our new and speedy approval procedure aims at facilitating private investments in the Kingdom. Indeed, we shall process and decide on the approval of investment projects within 45 days*. Our young and dedicated staff and I stand ready to provide investors with all the required information and guidance. Vichit Ith Why would anyone want to invest in Cambodia? 1. Very competitive investment incentives The promulgation of our new investment law means Cambodia now offers the best business incentive package in Southeast Asia; making the Kingdom's outward-looking economy a very attractrive place to invest. The following are the highlights of the new law : * 9% corporate/income tax * Tax holidays of up to 8 years * 5 year loss carried forward * Full import duty exemption * No withholding tax on dividends * Free repatriation of profits * No nationalization and price controls * No discrimination between foreign and local investors * Land leases of up to 70 years 2. "Fast-track" investment approval The establishment of the Council for the Development of Cambodia (CDC) allows investors to deal with just one government body, a "One Stop Service" investment centre that provides the speediest approval response in the region. The CDC provides information and application documents, evaluates and processes investment applications in less than 45 days. The CDC also grants customs duties and tax exemption, registers the company, issues visas and work permits, and facilitates oth er downstream administrative procedures. 3. Special Promotion Zones Industrial Zones are being developed in the capital, Phnom Penh and the main deep-water port, Sihanoukville. Investment in these zones will qualify investors for additional incentives. 4. Plentiful supply of labour and natural resources Cambodia has a population of 9 million people, of which 51% are in the 'working age" group. Our labour force is hard working and motivated. Labour costs are low compared with other Asian countries and our natural resources-especially oil and minerals-are only now being discovered. 5. Southeast Asia's burgeoning markets are on the doorstep As part of the Greater Mekong Sub-regional Economic Group, Cambodia is ideally placed to take advantage of the area's fast-developing consumer markets. Cross-border movement of goods will further boost trade when Cambodia becomes a member of the Association of Southeast Asian Nations (ASEAN). 6. International financing for Infrastructure projects Promises for one billion US dollars in foreign aid have already been made...a vote of confidence by the international community in the future of Cambodia. But, just as importantly, since the new government came to power in September 1993, the Kingdom has attracted over 200 million US dollars in private sector investment. Build-Operate-Transfer (BOT) projects have been approved for a second international airport and a new power generation plant to serve Phnom Penh. The telecommunications network is being upgraded to meet international standards. Roads, too have been imp roved...the bridge connecting the capital with Highway Six-the road that leads to the T hai border-has been rebuilt and Highway Four connecting Phnom Penh with the main port of Sihanoukville is currently being repaired. 7. Preferential Trading Status Cambodia qualifies for the GATT, Generalized System of Preferences (GSP) and this status has already been granted to the Kingdom by the European Union, Japan, Scandinavia, Canada and Australia. We are also discussing Most Favored Nation Status (MFN) with the United States of America. We believe Cambodia's free market economy has enormous potential for far-sighted investors. The new investment law is the first step to realizing that potential.