3. Cambodia - Overview
Location South East Indochina (bordering Vietnam, Laos and Thailand)
Size 181,035.00 Km2
Climate Two main tropical seasons (dry, wet) – coolest average temperature is 21oC
and warmest average temperature is 35oC
Population 15.2 million (2013 figure)
Population (major cities) Phnom Penh: 2.40 million, Siem Reap: 1 million, Sihanoukville: 0.24 million,
Battambang: 0.10 million.
National Demographic Khmer: 90%, Vietnamese 5%, Chinese 1%, Minority 4%
Language Khmer (official), English, Chinese French
Religion Buddhism (95%), Other (5%) – Islam, Christian, Indigenous.
Exchange Rate USD$1 = KHR 4060 (Cambodian Riel) – November 2014
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4. Demographics
• Population Growth – 1.67% in 2014
• Median Age – 24 years
• Urban Population – 20%
• Annual Rate of Urbanization – 2.13%
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000
65 years +
55 - 64 years
25 - 54 years
15 - 24 years
0 - 14 years
Population
Female Male
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5. Economy
ITEM UNIT INDICATOR
GDP USD$ Billion 14.06
GDP Per Capita USD$ 2,500
Economic Growth % 7.5
Inflation % 3.5
Exports USD$ million 5,583
Imports USD$ million 6,907
FDI USD$ billion 2.4
Balance of Trade USD$ million 1,385.51
(CIF) USD$ million 1,781.82
• Credit rating: S&P Rating – B, Moody’s Rating - B2
• Year 2013: Approved Real Estate Development and
Construction valued at US$2 Billion - a 70% increase from 2011
• Year 2014 - GDP forecast is 7.5% - by IMF & World Bank
• GDP Growth Rate - 2007 to 2014:
• GDP growth ranked 6th in the world and fastest in the Asia
after China
• Real estate demand & prices are consistently rising year on
year
Year 2007 2008 2009 2010 2011 2012 2013 2014e
% 10.8 10.2 6.7 0.1 6.0 7.1 7.2 7.5
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6. Why Cambodia?
Advantageous Location • Greater Mekong Subregion (GMS)-South Economic Corridor (570km) connecting
Bangkok-Phnom Penh-Ho Chi Minh
• Sandwiched between two larger, more developed economies (Thailand and Vietnam)
facilitating economic spillover
• Midway between China and India – the most important growth areas of the 21st century
along the Gulf of Thailand providing the country with ease-of-access to maritime trade
Favourable Investment
Climate
• 100% foreign ownership, except land (99-year land leases)
• Attractive investment incentives
• Open capital account - easy repatriation of profits
• Government-Private Sector Forum helps reduce obstacles and inefficiencies
Largely “dollarised”
Economy
• Minimal foreign exchange risks
• Stable monetary policy and fiscal responsibility
Increasing Trade
Integration
• WTO member since 2004
• Member of ASEAN, offering regional trade benefits
• Duty free or preferential export access to most developed economies
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7. Why Cambodia?
Underpenetrated,
Growing Domestic
Consumer Market
• Exceptionally youthful demographics ensures rising domestic demand (61% of
Cambodians are under 25 years old; median age 24)
• Workforce participation, household formation, and urbanization will all show robust
growth over the next decade
• Per capita GDP and purchasing power has more than doubled over the past decade and
will continue to rise
• Emerging import substitution opportunities in various industries
Advantageous Labor
Conditions
• Among Asia’s lowest-cost workforces
• Large labour pool
• Rising literacy rate has surpassed 75%
Improving Transport
Connectivity
• Upgrading of key road and bridge links with neighboring countries
• Railroad system has been rehabilitated
• Container sea port in Sihanoukville has been modernized and expanded
• Enlargement of Phnom Penh Port to better access to Vietnam’s new deep sea ports
• Three international airports have been opened
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8. Why Cambodia?
Lower Costs in
Telecoms and Internet
– next POWER Supply
• Hyper-competition in mobile and internet sectors has cut user costs
• New hydropower and coal-fired power plants underway will replace oil- based
generation and cut energy costs
Untapped Natural
Resources and Land
• Fertile land for production and processing of agricultural commodities
• Aquaculture and livestock farming and processing potential
• Abundant untapped mineral deposits
• Off-shore oil and gas reserves
• World-class tourism sites (beaches, islands, history, culture, nature)
Open Door for Foreign
Investment with clear
legal framework
• Liberal foreign investment regime
• 100% foreign equity ownership investments are allowed except the ownership of land
• Free remittance of foreign currencies abroad
• No price controls on products or services
• Equal treatment of all investors
• No nationalization adversely affecting the property of investors
• No foreign exchange controls on current account transactions
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11. IPS – Introduction
www.ips-cambodia.com email: grant@ips-cambodia.com
(IPS) Independent Property Services was established in 2009 to meet the growing needs of
International Businesses to successfully locate their staff and business operations in the emerging
Cambodian market.
IPS has grown quickly in its five years of operation and now has three strategically placed offices
in Cambodia’s key business districts namely:
• Phnom Penh,
• Phnom Penh Thmei (new Phnom Penh)
• Siem Reap.
Since our inception, IPS has continually developed key commercial partnerships within the
region. In 2013 IPS joined with Jones Lang Lasalle (JLL), one of the worlds largest commercial real
estate companies, to provide local (Cambodian) representation for their International clients.
12. IPS – Introduction
www.ips-cambodia.com email: grant@ips-cambodia.com
Mission:
IPS is driven to be the recognized market leader in real estate services in Cambodia. Utilizing new
technologies to provide accurate and up-to date information, skilled analysis and sound real
estate advice. IPS will be the employer of choice in the Cambodian real estate industry attracting
the best candidates to join our experienced team of focused and passionate professionals. Our
clients will become brand ambassadors because of their IPS experience.
Core Values:
At IPS our core values are based on serving the needs of our clients with the highest-level of
professionalism, honesty and integrity.
13. IPS – Overview
www.ips-cambodia.com email: grant@ips-cambodia.com
Background
• First independently Western owned real
estate agency in Cambodia
• Fully licensed real estate agent, & valuer
• Member of CVEA - Cambodian Valuers
and Estate Agents Association
• Member of BNI - Business Network
International
Overview
• 3 branches in Cambodia
• Diverse / multicultural team:
• Australian
• Khmer
• French
• Local expertise
• IPS Brand – Honesty, professionalism
and integrity