Advantages of Cambodian factories to countries

1. Unique location advantage
Cambodia is located in the transportation hub of Southeast Asia
Waterway: The Mekong River runs through the whole territory from north to south; the southwest is adjacent to the Gulf of Thailand, with an international deep-water port terminal – Sihanoukville International Port;
By land: Vietnam in the east, Laos in the north, and Thailand in the northwest;
Aviation: Phnom Penh, Angkor and Sihanoukville International Airports; China Beijing, Guangzhou, Shanghai and Hong Kong can all have direct flights to Phnom Penh, the capital of Cambodia.
2. Safe political environment
(1) Domestic political environment: the implementation of a constitutional monarchy, the separation of legislative, executive and judicial powers. The national legislature is bicameral, consisting of the Congress and the Senate. Since Prime Minister Hun Sen took office, he has paid attention to people’s livelihood and vigorously developed the economy, so that the domestic political situation has remained stable and social security is in good condition.
(2) International political environment: pursue a policy of permanent neutrality and non-alignment, and maintain friendly relations with most countries in the world. Cambodia is a friendly neighbor of China. China and Cambodia have a traditional friendship. There has never been a sovereignty dispute or ethnic conflict in history. For a long time, the friendly exchanges between generations of Chinese leaders and Prince Sihanouk have continuously enhanced the deep friendship between the two peoples. friendship.
3. Open economic system
Cambodia does not implement foreign exchange controls, and allows free entry and exit of foreign exchange funds. The US dollar can circulate freely in the market. Most industries are open to foreign investors. It is one of the countries with the highest degree of economic freedom in the world. According to the “2009 Economic Freedom Index” of the American Heritage Foundation, Cambodia ranks 21st among 41 countries in the Asia-Pacific region. Cambodia has obvious scores in terms of financial freedom and government size, and also has certain scores in financial freedom. The overall tax burden in Cambodia is low due to lower income and corporate taxes.
The Cambodian government encourages foreign investment, and has issued a series of regulations to establish a regular consultation and dialogue mechanism with investors. In 2012, the Cambodian government approved a total of 157 investment projects worth US$2.28 billion. Among them, foreign capital was 1.38 billion US dollars. The top three investment source countries are South Korea ($287 million), China ($263 million), and Japan ($212 million). 3,385 new companies were added throughout the year, mainly from local companies in China, South Korea, Japan, Malaysia, Thailand, Vietnam, Singapore and Cambodia.
In 1994, the Cambodian Parliament passed the Investment Law. According to the relevant provisions of the Cambodian Investment Law: In addition to the provisions on land ownership in the Constitution of the Kingdom of Cambodia, all investors, including some nationalities and races, are equal in law; the Royal Government does not implement nationalization policies that harm the interests of investors; or approved projects, the Royal Government does not control the prices of its products and services.
4. Lower cost
Cambodia has a population of more than 15 million. It is a traditional agricultural country. The age structure of the population tends to be younger. Among them, children (0-14 years old) account for 62%, and the elderly population (over 65 years old) accounts for 4.3%. Traditionally, the working population has worked hard. And has a strong development potential. Cambodian labor costs are low compared to other ASEAN countries.
According to relevant regulations in Cambodia, the maximum working time is usually 8 hours a day and 48 hours a week, and overtime work requires a subsidy of 1.5 to 2 times the normal wage.
5. preferential trade status
Cambodia joined the WTO in 2004. Cambodia has not yet encountered trade barriers such as “anti-dumping” and other trade barriers in developed countries, and can enjoy special trade preferential policies and additional tariff reductions and exemptions given by developed countries such as Europe and the United States.
On January 1, 2011, the European Union announced the launch of the new Generalized System of Preferences, continuing to give the most preferential treatment to products from 49 countries including Cambodia. And the EU’s new GSP has relaxed the regulations again for Cambodia. The most important condition is that the EU no longer restricts the source of fabrics, allowing ready-to-wear products produced in Cambodia and other countries to use fabrics made in any country to enjoy the benefits. Duty-free preferential access to the EU market.
As a member of ASEAN, Cambodia has joined a market of nearly 600 million people in ten countries. On January 1, 2010, the China-ASEAN Free Trade Area was fully completed, providing strategic opportunities for Chinese enterprises to enter ASEAN countries. In addition, ASEAN is about to establish a free trade zone in South Korea, Japan, India, New Zealand and Australia, and invest in Cambodia. At the same time, enterprises will have a large market with zero tariffs in ASEAN 10+6.

Post time: Mar-07-2022