Cambodia has good laws and an active and young working population. However, there are still few risks to consider when planning to Invest in Cambodia.
- Low exports due to possible suspension of EBA scheme.
- All European countries receive 1/3 of all exported goods. Losing duty-free and quota-free access could reduce exports.
- The finance sector invests heavily in construction. It is a direct result of the Belt and Road Initiative.
A shortage in the tourism sector could mean a decline in real estate projects. As a result, the cost of investing in the financial sector may decrease. A slight slowdown in the Chinese economy will have a major impact on Cambodia’s own development.
Despite the risks, Real Estate Cambodia is still a very attractive place to invest. It attracts foreign workers and offers a cheap option for retirees. Cambodia’s economic growth is expected to continue for the next decade. The Cambodian government is introducing new rules to make it easier for foreigners to invest. The next step is to develop the skills and education of the young population to sustain this attractive growth.
Location
Kingdom of Cambodia in Southeast Asia. It shares borders with Thailand and Vietnam. It covers an area of 181,025 square meters. Phnom Penh, Sam Rap, and Sihanoukville are business districts divided into 25 provinces. Other good provinces that are investing are Khamao, Kampong Cham, Cape, Batambang and Kampot.
Phnom Penh
Phnom Penh is the capital of Cambodia. It is located in the south-central region, which is surrounded by Kundal province. It covers an area of 679 square kilometers. Land, but it’s like any other province in the country. Being the economic centre of Cambodia, it is not hard to find a constant throng of real estate projects underway at any given time. Some of the most prominent property developers in the country – including a fast growing conglomerate led by a naturalised Cambodian businessperson – have been launching both residential and commercial projects over the past few years with no signs of slowing down.
Siem Reap
Siem Reap covers an area of 10,290 square kilometers. It is a best tourist destination and receives one third of the annual tourist arrivals. It is also home to the famous Angkor Wat archeological site.
Sihanoukville
Sihanoukville has experienced an increase in Chinese investors over the past few years. The province is part of the Belt and Road project launched by China. This led to the development of infrastructure, bridges and ports. Many a Cambodian businessman have seized on this opportunity to invest heavily in mega projects in the province.
Demographics
Cambodia Real Estate has a population of over 16 million. 90 are leavened, and 5 are Chinese, Vietnamese and Cham Muslim.
Language and Religion
The main languages of Cambodia are Khmer, Chinese and English. English is mostly used for business transactions. It took Cambodia one step further than neighbouring other countries such as Laos and Vietnam. Theravada Buddhism is the official religion, practiced by 95% of the population.
Foreigner Population
According to the Global Retirement Index, Investment in Cambodia is one of the best countries to retire in the SEA. There are currently about 1.5 million foreigners in the country. Most foreigners are from Asian countries. It is growing because of the low cost of living. Getting a work visa is easy. It takes a little effort to start a business. There are also many employment Cambodia Investment Opportunities for foreigners.
Why Does Cambodia Attract Foreign Investors?
Cambodia is a great place to invest in Asian countries. This is a welcome development for foreigners. The government has made it easier for any nationality to live longer.
Visa Requirements
There are two types of visas in Cambodia, divided into two types. Tourist visa. A tourist visa is an entry pass that you can use for a period of 40 days. You can buy it at airports or at land borders for 35. For ASEAN members, depending on the nationality, the tourist visa is free for 14-30 days. There are four types of working visa or e-class visa.
l EG Visa – This visa is for only job seekers. It is renewable for 1 and 6 months.
l EB Visa – covers all foreign workers and their dependents. Proof of employment is required and can be renewed for 3, 9 and 12 months.
l ER Visa – Retirees from other countries who can provide proof of income can apply for this visa. It also lasts for 6 or 9 months.
l ES Visa – Students enrolled in Cambodian schools, colleges and universities are eligible for this visa. The visa is for a period of 6 or 12 months.
Dollar Economy
Yeast Rail is the official currency in Cambodia, but the US dollar is used for 80% of all business transactions. Cash is a common form of payment, with an increase in credit card and online payment options.
What kind of economy is Cambodia?
Cambodia’s economy is an open market system. Economic decisions on Cambodia Investment, production and distribution depend on supply and demand. An open market is a system that allows free market activities. It gives special incentives to foreign investors on tax duty.
Foreign Direct Investment (FDI)
Cambodia’s economic growth is the result of foreign direct investment. FDI has increased by 800% in the last 10 years, with the highest being 2018 3.0 billion in 2018. The largest investments are in construction. Manufactured goods such as clothes and shoes make up 1/3 of the exported goods. It increased from 8.4% in 2017 to 17.6% in 2018. Retail trade grew 5.3 percent. The gap between exports and imports is 10.4%, up from 9.7% in 2017. FDI is at the highest level of 3 billion.
Incentives for Foreign Investment in Cambodia
Cambodia Investment continues to grow due to favourable investment laws. Among other things, these are the reasons why Cambodia is so attractive to foreign investors.
- The government allows foreigners to do business. There are no trade restrictions, foreign exchange regulations and price controls.
- The US dollar facilitates financial transactions because it is stable. Yeast Rail also maintains the exchange rate of $ 1 = 4,000.
- Foreigner investors can lease land for 50 years or more.
- Foreigners do not need to change citizenship. They can return income and any profit.
- QIPs have special tax rates and rebates.
Conclusion
Cambodia has been receiving large amounts of foreign investment in recent years. It has also achieved great economic growth over the last 25 years. This Cambodia Real Estate Investment Guide will look at the factors of its financial growth and tell you the reasons for investing in the country.