The government of Cambodia has addressed many problems that once threatened the country’s economy including the reimbursement of value added taxes for export products, bank licensing requirements, and tax holiday extension for the garment industry among several others. If you are planning to establish a business that will ensure you of high returns, then Cambodia may just be a feasible option.
1. Promising Investment Opportunities
In the years 2000 up to 2002, Cambodia’s construction and infrastructure sectors improved greatly by 83 percent, and these industries continue to thrive annually. In fact, irrigation systems, hotels, housing, and roads are largely in demand. There are also Build-Operate-Transfer projects that the government has approved to improve airports in the country, and the telecommunication network is constantly being upgraded to match up to international standards. With numerous projects that are planned for this country, investors can choose from various business opportunities that offer significant profits in the future.
2. Competent and Cheap Work Force
About 200,000 individuals each year enter the labor force as they reach the legal working age in the country. While it is a fact that Cambodians have lower levels of education, as compared to individuals in neighboring nations such as Vietnam and Thailand, the work force is a strongly-motivated, dedicated and hardworking one. Cambodia’s Angkor Complex, for instance, is a proof that the Khmer people possess a great deal of patience and excellent skills in the labor industry. Moreover, labor fees are significantly low in Cambodia than in other Asian countries. In the garment industry, the minimum wage is $45 monthly, which means business owners can save more money without sacrificing the quality of their projects.
3. Less Restrictions in the Labor Market
Based on the Index of Economic Freedom by the United States, Cambodia takes the 35th place when it comes to countries with an open economy, The study was conducted in 2003, and it included 170 countries throughout the world. In terms of economic freedom, Cambodia is on par with Japan, and it is quite ahead of other Asian nations such as Vietnam, Indonesia and Malaysia. Although Cambodia may not be free from problems that are related to politics and government policies, the nation welcomes foreign investors because of the country’s high market-friendliness factor.
4. Significant Assets
One of the many areas that Cambodia plans to attract foreign investors is tourism. The country features a remarkable cultural asset in its historical temples in the Angkor Complex, and Cambodia expects to reach about a million tourists in the coming years because of its impressive tourist sites. Another important asset that Cambodia possess is the labor force. Although these workers may be poorly-trained, this is a problem that can be resolved easily since they are willing to be trained and hardworking. Foreign investors will also appreciate the fact that labor costs are quite low, unlike in other Asian nations including Thailand and Vietnam.
5. Abundant Natural Resources
Cambodia has a fertile land that possesses a wealth of agricultural commodities. Moreover, there are numerous mineral deposits that are left untapped, as well as off-shore gas and oil reserves. Lastly, there is a great potential that the country offers for those who are willing to invest in livestock farming and aquaculture.
6. Good Location
The country has a strategic location, as it is in the central portion of the Greater Mekong Subregion, which offers vast potentials for Cambodia’s economic growth. Furthermore, this good location offers a quick access to notable world markets via trade preferences. It is also worth noting that this Asian nation is situated between two countries with more developed and more established economies, and this can lead to economic spillover. The country also ensures easy access to sea trade as it is alongside the Gulf of Thailand.
7. Stable Politics
Cambodia engages in developing investment relationships and trade opportunities to other governments around the world, and it has maintained positive relationships with other nations. Most of the country’s key ministers have been serving the government for decades, and the country’s prime minister has been in the office since 1985. Hence, this leads to political stability and chances for economic growth, as Cambodia maintains a good reputation from other nations.
With Cambodia’s economic freedom, cheap labor force and abundant natural resources, foreign investors are motivated to establish business opportunities in the country. The government welcomes foreign investments in the nation regardless of the industry or type of business. Indeed, the country serves as a great place for foreigners to invest and explore feasible ways to maximize their profits.