9 Main Reasons Why Cambodia is Attractive to Foreign Investors?

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With the 1993 UN-sponsored national elections, real estate began to emerge from a tumultuous period of change of government and civil war. The third national election was held in July 2003 and the results can be expected to bring political stability. Over the past 10 years, Cambodian governments have also made strenuous efforts to create a conducive market environment.

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

In December 2018, the Prime Minister of Cambodia 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 an open market  to business. To ensure a very strong micro economy, political and social stability, the government is open to all investors to do business and invest in the country.

There are an estimated 100,000 immigrants in Cambodia for a variety of reasons, including low living costs, business opportunities, a comfortable lifestyle and the influence of Buddhist culture. Infinity opened its office in 2014 to help us understand that Cambodia is attractive to investors. Let’s take a look at why Cambodia is good for investors.

Why Only Cambodia?

Significant markets in Europe and North America are also noteworthy, with Real Estate Cambodia having preferential access as a Least Developed Country. As far as the liberal economy is concerned, Real Estate Cambodia is one of the most open economies in Asia, equal to Japan, and the 49th LDC in the world. Its low wage, trainable labour is certainly an asset to the growing competitive global economy, and when it comes to tourism, the extraordinary monuments of Angkor in Siem Reap already ensure that Cambodia Tourists are attracted.

1. Strong economic growth in recent decades

Cambodia was one of the best developing economies in the world with an average growth rate of 8%. The key drivers of growth are the textile and tourism industries. Over the past three decades, there has been a significant shift in Cambodia Property, reaching low to middle income in 2018 and rising to medium income in 2030.

A clear indicator of continuous strong growth is the busy scene of real estate development in the country. There is a constant line-up of projects underway at any given time, with some of the leading property developers in the Kingdom – notably a fast growing conglomerate led by a naturalised Cambodian businessman – have been launching both residential and commercial projects over the past few years with no signs of slowing down.

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 was inevitably severely damaged by the epidemic, especially As with the tourism industry. The Asian Development Bank (ADB) says Cambodia has overtaken many other Asian countries and the economy is expected to recover in 2021, with a GDP growth rate of 5.9 percent. Percentage increase is predicted.

2. A Resilient economy

Cambodia Real Estate is a frontier market and thus less dependent on some of the world’s largest economies China, the United States and Europe than some other developed economies. Historically, it has been protected to some extent by global concerns. The country has been in recession for 15 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 2007.

3. Government Incentive

The Cambodian government is known for its pro-business stance, and in March 2019 it announced a vigorous program of economic reforms that included a number of measures to attract business, investment and capital flows into the country. These included tax breaks, lower shipping costs, new investment measures and special economic zone laws. Prime Minister Hun Sen predicts savings of 400 million annually for producers and exporters. In addition, Cambodia allows 100% foreign-owned companies.

4. A Youthful Population

Cambodia’s young population is also noteworthy. There are about 17 million Cambodians in Cambodia, about half under the age of 26. Like Facebook and YouTube. This is having a significant impact on Cambodian culture as a whole, and new Cambodia Investment Opportunities and avenues are opening up in the market.

5. A Strategic Location

The Cambodia Property is located in the heart of Southeast Asia and is bordered by Thailand, Laos and Vietnam to the southwest and the Gulf of Thailand. Access to key global markets makes it a low-cost manufacturing base for many industries that have significant demand for their products in other Asian countries.

6. A Competitive Labour Force

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

7. Preferential Market Access

Real Estate Cambodia is a member of the ASEAN Free Trade Area, one of the largest and most important free trade areas in the world, and benefits from the Common Effective Preferential Tariff agreement. This means that it can trade with other countries on preferential terms and in some cases without tariffs. It is a member of the World Trade Organization and trades with the Europeans. Many a businessperson in Cambodia have have been taking advantage of this to attract more investments into the country to spur its growth.

8. A Rapidly Growing Consumer Class

Increasing income means more usable income and the country’s young, tech savvy and secular population provide a growing market that offers great potential for business.

9. Improving Infrastructure

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

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