Why Invest In Cambodia Property?

skyline cambodia

Cambodia has undergone a drastic change from an under developed country to a widely urbanized Kingdom due to massive developments and improvements in the different sectors.

The contributing factors to this growth are mainly the government’s pro-business policies which leads to the influx of foreign investors in the different business sectors such as;

  • Offices / Commercial Market
  • Residential & Housing Market
  • Retail Market
  • Industrial Market
  • Agricultural Market

General Facts on Cambodia

  • Capital City : Phnom Penh
  • Area : 181,035 km2
  • Population : Approximately 15 million (2.2 million in Phnom Penh)
  • GDP : Average 6% per annum for past decade
  • Key industries : Tourism, textile & garment, natural gas, agriculture, construction, timber
  • Currency : Riel (CR), US Dollar (US$)
  • US$1 = 4,000 KHR
  • Membership : UN, IMF, WTO, ASEAN

https://en.wikipedia.org/wiki/Phnom_Penh

13 Reasons To Invest In Cambodia Property


1. STRONG GDP Growth

cambodia gdp

2. Young & Inexpensive workforce

  • Among Asia lowest work force
  • Abundance of willing and trainable work force
  • Rising literacy rate has surpass 75%

3. Prime location in one of the fastest growing region in the world

  • Sandwiched between 2 larger, more developed economics (Thailand & Vietnam) facilitating economic spillover
  • Midway between china and India
  • Along the Gulf of Thailand providing the country with ease of access to maritime trade

4. Rising productivity

cambodia trade investment chart 2014

(source)

5. Stable politics

  • Prime Minster has held power since 1985
  • Several minsters are also long serving and experience

6. Pro-Business government and favorable investment climate

  • 100% Foreign ownership, except land
  • Attractive investment incentives
  • No Capital Gain Tax

7. Increasing trade integration

  • WTO member since 2004
  • ASEAN membership offers regional trade benefits
  • Duty free or preferential export access to most developed economies

8. Improving transport connectivity

  • All key road and bridge links with neighboring countries have been or will soon be upgraded
  • Railroad system is being rehabilitated
  • Container sea port in Sihanoukville has been modernized and expanded
  • River port in Phnom Penh is being relocated and enlarged to better access
  • Vietnam’s new deep sea ports
  • Three international airports have been opened

9. Lower costs in telecoms and internet

  • 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

10. Untapped natural resources and land

  • Fertile land for production and processing of agricultural commodities
  • Aquaculture and livestock farming and processing potential
  • Abundant mineral deposits await mining
  • Off-shore oil and gas reserves
  • World-class tourism sites (beaches, islands, history, culture, nature)

11. Under-Penetrated, growing domestic consumer market

  • Exceptionally youthful demographics ensures rising domestic demand (61% of Cambodians are under 25 years old; median age: 21)
  • 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

Exchange Rate & Foreign Exchange Reserve

cambodia foreign exchange rate chart 2014

(source)

12. Un-leveraged financial position

  • Relatively low levels of sovereign, corporate, and consumer debt
  • Well capitalized, conservative banking system
  • No tradition of government bailouts and subsidies (Surprisingly rare in today’s world)

13. Last Frontier Market

  • Cambodia is probably the LAST investment frontier market in the region.  Enjoy the 1st mover’s advantage when you get started right now.

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