Cambodia: Investing

FDI in Figures

FDIs were growing exponentially during the last few years, due to healthy macro-economic policies, political stability, regional economic growth and the government advocated opening of the economy. However, global slow down has put a break to this dynamism.

Although Cambodia encourages foreign investment and offers incentives to investors, the lack of transparency of the legal system, corruption and inadequate financial institutions are factors that hinder foreign investment.

The main sector receiving FDI is tourism. The main investing countries are Malaysia and Taiwan.

	Cambodia	East Asia & Pacific	الولايات المتحدة	Germany
Index of Investor Protection	5.3	5.3	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	815	539	783
FDI Stock (million USD)	4,636.7	5,175.8	5,958.4
Number of Greenfield Investments***	34.0	31.0	-
FDI Inwards (in % of GFCF****)	34.7	39.0	-
FDI Stock (in % of GDP)	41.4	48.2	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT: Standard rate is 10%.
Company Tax: 20%
Moreover, a tax on profit prepayment equal to 1% of turnover has to be paid each month.
Withholding Taxes: Dividends: 0/14%, Interests: 14/15%, Royalties: 14/15%.
Bilateral Agreement: Cambodia and Egypt are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 0.8%

Investment Opportunities

Tenders, Projects and Public Procurement: Asian Developement Bank, Proposed Projects in Asia
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Cambodia.

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Learn more about Investing in Cambodia on Globaltrade.net, the Directory for International Trade Services.