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9 Reasons Why Cambodia is Attractive to Investors?

Real Estate Cambodia
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With the 1993 national elections, held under the auspices of the United Nations, Real Estate Cambodia began to emerge from a tumultuous period of regime change and civil war. The third national election took place in July 2003 and the results can be expected to strengthen political stability. Over the past 10 years, Cambodian governments have also made constant efforts to create a favourable market environment.

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Although investors already in the country are happy with every feature of the new law, especially with regard to tax incentives, there is no doubt that Cambodia Real Estate Market is a financially very attractive place, with most of the activities. The Council for the Development of Cambodia (CDC), which focuses on a number of ministries and departments, is constantly improving its facilities for investors. The country already covers a wide range of activities in the country, from FDI to tourism to financial services, and investors have an effective voice in policy-making through government-private sector forums and the International Business Club (IBC).

In December 2018, Cambodian Prime Minister addressed participants at the 14th Cambodian Import Export Goods Exhibition, an event aimed at highlighting the country’s positive business and investment climate. “Cambodia is open to business. To ensure a strong micro economy and political and social stability, the government is open to all investors to do business and invest in the country,” he said.

There are an estimated 100,000 immigrants in Cambodia for a variety of reasons, including low housing costs, business opportunities, a comfortable lifestyle and the influence of Buddhist culture. Infinity set up its office in 2014 to help us understand that Cambodia is attractive to Investors. Let’s take a look Why Cambodia is beneficial for Investors.

Why Cambodia?

Significant markets in Europe and North America are also noteworthy, with Cambodia having preferential access as a Least Developed Country (LDC). As far as the liberal economy is concerned, Cambodia has one of the most open economies in Asia, the equivalent of Japan, and the 49th LDC in the world. Its low-wage, trainable labour force is certainly an asset to a growing competitive global economy, and when it comes to tourism, the extraordinary monuments of Angkor near Sam Rap already ensure that Cambodian tourists are attractive.

  1. Strong economic growth in recent decades

Cambodia was one of the best growing economies in the world with an average growth rate of 8%. The main drivers of growth are the textile and tourism industries. “Over the past two decades, Cambodia Property has undergone a significant transformation, reaching low-middle income in 2016 and aspiring to middle-income 2030,” the World Bank said.

According to the National Bank of Cambodia (NBC), the economy was still flying by the end of last year with a growth rate of 7.1% in 2019, but COVID-19 has inevitably been hit hard by the epidemic, with the tourism industry particularly bad.

That said, the Asian Development Bank (ADB) says Cambodia has outperformed many other Asian countries and expects the economy to recover in 2021, with GDP growing at 5.9 percent. Percentage increase is predicted.

  1. A Resilient economy

Cambodia is a frontier market and as such it is less dependent on the world’s largest economies – China, the United States and Europe than some other developed economies. Historically, it has protected it to some extent through global concerns. The country has been in recession for 20 years and has been resilient in Asia since the financial crisis of the 1990s, the tech bubbles of the early 2000s and even the financial crisis of 2008.

  1. Government Incentive

The Cambodian government is known for its pro-business stance, and in March 2019 it announced an ambitious program of economic reforms that included a number of measures aimed at attracting business, investment and capital flows into the country. These included tax breaks, lower shipping costs, reduced national holidays, new investment measures and special economic zone laws. Prime Minister Hun Sen has predicted savings of 400- 400 million annually for producers and exporters. In addition, unlike few Asian countries, Cambodia allows 100% foreign owned companies.

  1. A Youthful Population

Cambodia’s young population is also noteworthy; there are about 16 million Cambodians in Cambodia, about half under the age of 25. Like Facebook and YouTube. This is having a significant impact on Cambodian culture as a whole and opening up new opportunities and avenues in the market.

  1. A Strategic Location

Cambodia Property is located in the heart of South East Asia and is bordered by Thailand, Laos and Vietnam to the south west along the Gulf of Thailand. Access to key global markets makes it the basis for low-cost manufacturing for many industries that have significant demand for its products in other Asian countries.

  1. A Competitive Labour Force

Cambodia’s minimum wage is lower than that of neighbouring Thailand and Vietnam, making it more competitive for the service and manufacturing industries that want to recruit more young people.

  1. Preferential Market Access

Cambodia is a member of the ASEAN Free Trade Area (AFTA), one of the world’s largest and most important free trade areas, and benefits from the Common Effective Preferential Tariff (CEPT) agreement. This means that it can trade with other countries on preferential terms and in some cases tariff-free. It is also a member of the World Trade Organization and trades with the European Union under the ASEAN-EU Dialogue.

  1. A Rapidly Growing Consumer Class

Rising incomes mean more disposable income and the country’s young, tech-savvy and secular population provides a growing market that offers great potential for businesses.

  1. Improving Infrastructure

Cambodia’s infrastructure has historically been weak, but the government is investing heavily in developing a nationwide network of transit routes, electricity and telecommunications with the help of foreign aid. The focus is on improving Cambodia’s relations with neighbouring countries to boost trade and increase foreign investment. Establishing a business in Cambodia Real Estate is not without its challenges, but its potential is the great strength of the Kingdom of Wonder. This is definitely worth considering for businesses looking to establish a base in Asia.

Tags: Real Estate Cambodia
Salman Ahmad

Salman Ahmad

I am Salman Ahmad an Engineer by choice, Blogger, YouTuber, and an Entrepreneur by passion. I love technology in my day to day life and loves writing Tech Articles on Latest Technology, Cyber Security, Internet Security, SEO and Digital Marketing. Blogging is my passion and I own some popular sites https://barlecoq.com/, https://geeksaroundworld.com/, https://elitesmindset.com/, https://bluegraydaily.com/, https://minibighype.com/ & https://factoryextreme.com/.

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