According to the Cambodian media, on the 26th of last month, Deputy Prime Minister Sun Chanthol of Cambodia, the country’s second-in-command, announced at the CDC headquarters in Phnom Penh that he would publicly share his personal phone number for anyone facing difficulties in business operations to contact him directly. Meeting with Korean business people, the Deputy Prime Minister urged them to seek help from the CDC if they encounter unnecessary misunderstandings or petty difficulties while doing business in Cambodia. On the following day at the Sofitel in Phnom Penh, as part of the Maekyung Cambodia Forum, the Deputy Prime Minister repeatedly emphasized his commitment to providing tailored convenience to Korean investors and creating a comfortable environment.
The Deputy Prime Minister further emphasized, “Cambodia is the freest investment destination in the Association of Southeast Asian Nations (ASEAN), recognized by the World Bank.” He stated that while other governments may want to manage and interfere with foreign investments, the Cambodian government is satisfied with being a facilitator, proactively solving issues in the private sector, providing convenient services like one-stop services, and approving projects.
The Deputy Prime Minister actively promotes investment in Cambodia, spending a considerable amount of the day at the forum hosted by Maekyung, including attending the Welcoming Dinner for Maekyung Cambodia Forum held at the Sofitel in the evening. Choi Moon Gyu, the Hanshin Engineering & Construction representative who participated in the event, said, “Seeing the Deputy Prime Minister personally making efforts to attract investment and showing interest, I can feel the sincerity of the Cambodian government.” He hoped the forum would strengthen the relationship between Korea and Cambodia.
The Maekyung Cambodia Forum was attended by 46 “Oknha,” the highest-ranking individuals leading the Cambodian economy. Sear Rithy, Chairman of Worldbridge Group, Cambodia’s leading national group; Hei Bavy, Chairman of Phnom Penh Autonomous Port, the state-owned company that operates the Phnom Penh Autonomous Port; and Heng Sier, Chairman of Heng Sreng Hong Group, Cambodia’s leading building materials company, also participated. All of them have been awarded the title of “Neak Oknha” and are known as the top magnates in the Cambodian business world.
Oknha, the highest honor given to civilians, excluding the royal “Samdech” in Cambodia, is held by those who control more than half of the domestic investment in Cambodia and are the main drivers of economic growth. Since the 1970s, the title has been revived to honor those who donate more than $100,000 to the government for national reconstruction. As of April 1, 2017, the price for the title has jumped to over $500,000. The Oknha are divided into ranks, with Lok Oknha being the highest, followed by Neak Oknha and Oknha.
Cambodia is making every effort to promote economic development. Prime Minister Hun Manet visited the construction site of a new airport about 12 miles south of Phnom Penh and explained the progress of the airport’s construction. According to the Prime Minister, the Techo International Airport is under construction and slated to start operations by 2025 for $1.5 billion, and it has completed about 70% of the first construction phase.
The project is known as a large-scale infrastructure project. The Overseas Cambodian Investment Corporation (OCIC), a representative real estate development company in Cambodia, holds a 90% stake, and the remaining 10% is held by the State Secretariat of Civil Aviation (SSCA) under the Cambodian government.
Vice President Moon Byung Soo of Canadia Bank Group said, “Our subsidiary, OCIC, directly issued bonds.” Interpreting the Vice President’s words, Cambodia, which has traditionally been heavily dependent on Chinese capital, has unusually raised domestic investment funds for a large-scale project.
Cambodia has been on a high-speed growth path of an average of 7% over the past 20 years. With an average national age of about 27, a young population is gaining attention as a representative country for the “ASEAN (Association of Southeast Asian Nations) Entry Hub.” Cambodia is rising as a “strategic hub” country, following Thailand and Vietnam, the core markets of ASEAN, based on its excellent geographical location in Southeast Asia. Experts further analyze that it can also serve as an export and alternative production base for China, given its proximity to China.
Prime Minister Manet also introduced the idea that companies in strategic industries such as electronics and automobiles, which the Cambodian government is actively fostering, can receive tax and VAT exemptions when importing raw materials. With the new investment law 2021, manufacturing, agriculture, infrastructure development projects related to Expanded Qualified Investment Projects (EQIP), and even small and medium enterprises, green industries, and service and education sectors can receive investment incentives.
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