Ten potential investment projects in Cambodia in 2019
According to a report released by the World Bank, Cambodia has achieved an average annual economic growth rate of 7.7% in the past 20 years, ranking sixth in the world in economic growth, and has achieved a year-on-year GDP growth of about 7% for five consecutive years since 2011.
According to Cambodian statistics, China’s cumulative agreed investment in Cambodia has exceeded US$17 billion, covering diversified fields such as agriculture, infrastructure construction, hydropower stations, power transmission and transformation grids, tourism, aviation, telecommunications, and special economic zone development.
The information on the top ten investment projects with the upward trend of development in Cambodia in 2019 is as follows:
1. Overview of Cambodia's real estate
A report recently released by the Ministry of Land, Planning and Construction of Cambodia shows that the construction industry has become an important pillar industry that promotes the country's economic development. Every day, the construction industry provides 220,000 jobs across Cambodia.
At present, among the four pillars of Cambodia's economy-agriculture, clothing, tourism and construction, the construction industry has the fastest growth. According to data provided by the Ministry of Land, Planning and Construction of Cambodia, the total investment in the construction industry has increased by more than 100% in the past five years, from US$2.773 billion in 2013 to US$6.799 billion in 2017. So far, the Ministry has approved a total of 2,541 construction projects, with a construction area of over 10.79 million square meters and an investment of over 4.8 billion U.S. dollars.
The development of Cambodia's construction industry can be seen in the growing number of high-rise buildings in cities such as Phnom Penh and Sihanoukville. Previously, including Phnom Penh, residential buildings and other buildings were mostly low-rise buildings. Now there are more and more high-rise buildings in Phnom Penh, and high-rise office buildings and apartments have become fashionable. According to data from the Ministry of Land, Planning and Construction of Cambodia, there were 92 new buildings over 5 floors in the first nine months of this year.
In 2015, the construction and real estate industry jumped for the first time to become the largest pillar industry driving Cambodia's economic development. The factors that promote the development of Cambodia's construction industry are as follows:
The political situation in Cambodia has been stable for many years, and the economy has continued to grow, which has promoted the sustainable development of the economy and society, and has provided a good environment for the prosperity of the construction industry. In Phnom Penh and some other big cities, there are more and more large shopping malls, office buildings, etc., and schools, institutions and ministries and commissions are also expanding in scale.
The economic development has made the middle- and high-income population in cities continue to increase, and they have higher requirements for living conditions. The rapid development of the city has also attracted talents from all over the country to seek development in big cities, and the housing demand has just increased. In addition, with the economic transformation, the rapid development of economic sectors such as clothing, processing and manufacturing has caused more Cambodians to move from rural areas to cities, which has also increased the demand for housing. A research report shows that in 2014, there were 4.5 million people living in Phnom Penh and major cities in various provinces, accounting for about 27.1% of the country’s population. In 2030, Cambodia’s urban population will increase to 7.92 million, accounting for about 44% of the country’s population. 15 At least 800,000 dwellings are needed each year.
Cambodia’s high degree of openness to foreign investment is also one of the reasons for the boom in the construction industry. The continuous growth of the Cambodian economy and loose policies have attracted continued growth in foreign investment. According to incomplete statistics, there are currently more than 400,000 foreigners living in Cambodia. Most of these foreigners live in Phnom Penh, which has also promoted the development of the real estate industry. In addition, in May 2010, the Cambodian National Assembly passed the "Foreign Property Ownership Act", which allows foreigners to buy properties in Cambodia, attracting some savvy foreign investors to deploy in the Cambodian real estate market. The Deputy Minister of Land, Planning and Construction of Cambodia, Lau De Siha, said that from 2000 to 2018, foreigners invested in 327 projects in the Cambodian construction industry, covering an area of 1.4 million square meters, with an investment of up to 4.892 billion U.S. dollars.
Among all foreign investments, the top five are China, South Korea, Japan, Thailand and Singapore. Cambodia has good relations with ASEAN countries and China, and Cambodia connects its own development strategy with China's "One Belt One Road" initiative and vigorously builds infrastructure, which makes investors very optimistic about Cambodia's future development prospects. Phnom Penh is developing towards an international metropolis. The continuous increase and improvement of hotels and tourist facilities in Siem Reap where the world-class tourist attraction Angkor Wat is located, as well as the development and construction of the Sihanoukville Special Economic Zone and other special economic zones, will all be Cambodia’s The construction industry brings vitality.
Advantages of investing in real estate in Phnom Penh and Westport:
(1) The relationship between supply and demand of apartments is unbalanced, and the supply is far less than the demand;
(2) Phnom Penh rents are on the rise;
(3) The price of land in Phnom Penh continues to rise;
(4) Rich resources such as transportation, medical care, education, commerce, etc.;
(5) Good public security;
(6) The needs of local people;
(7) International institutions enter many international real estate companies;
(8) One of the youngest countries in the global population structure, with low labor costs;
(9) Xigang is the only foreign trade economic channel leading to overseas, with high real estate investment value and low housing investment cost.
Project docking:
Industrial parks, senior housing estates, townhouses, hotel villas, acquisitions of projects under construction, land, etc.
2. Cambodia's infrastructure industry
Cambodia's recent plan is to build more roads from 2015 to 2019, and the investment prospects are promising.
In addition to roads and railways, there are many investment opportunities in transportation facilities such as ports and airports, as well as the Internet, telecommunications, drinking water, sewage treatment, power, and television.
Advantages and opportunities:
The growth of international investment, especially the funds from the Asian Development Bank, has brought development momentum to Cambodia's infrastructure construction.
Cambodia's infrastructure construction cost is relatively low in Southeast Asia, and the return on investment of the project is relatively high. Cambodia's tourism industry is relatively developed, which has stimulated the demand for infrastructure construction.
The lack of existing infrastructure indicates that Cambodia's infrastructure market has a lot of room for development. The Great Mekong Development Project has brought many new projects to Cambodia.
The geographical position is superior and it is the main road of transportation. The future transportation connection will bring more opportunities for Cambodian infrastructure.
In order to achieve Cambodia's goal of receiving 8 million international tourists in 2020, the Cambodian Ministry of Tourism is committed to the development of related projects in the tourism industry, which will also bring opportunities to the infrastructure of the transportation industry.
Project Introduction:
(1) The 33-kilometer expressway project (connecting Highway No. 4-Highway No. 1) to ease the traffic in Phnom Penh. A total of US$500 million is needed to buy land and build roads. (Investment income is obtained by maintaining and operating highways, and the operating period is 35 years)
(2) Waste sewage treatment plant: Phnom Penh currently does not have a decent waste treatment facility. The market demand is huge, and the project requires a large amount of funds. It is envisaged that the Chinese side will assist and the AIIB loan.
(At present, Cambodia's garbage and sewage treatment business is ushering in a big development opportunity, and the income is through the method of collecting treatment fees from the government regularly during the operating period)
(3) Island development: 15 kilometers away from the city center of Xigang, the island is 3 kilometers long, has a coastline of 20 kilometers, and an area of 500 hectares. For mass or mid-to-high-end tourism development, diesel and solar power can be used.
(Profits bring considerable income through the construction of hotels and tourist attractions facilities)
3. Cambodia's financial industry
As the economy maintains rapid growth, Cambodia's financial industry has developed rapidly. Acquisitions and capital injections have become a shortcut for foreign investors to enter the Cambodian banking industry.
investment advantage:
(1) Cambodia's bank deposit spreads are relatively high.
(2) Cambodia is a "Financial Free Port" and implements a policy of free exchange of foreign exchange.
(3) There are few restrictions on foreign banks.
Financial project: acquisition of professional banks.
Profit source: (Loan business: Cambodia has a relatively high deposit and loan spread. Excluding various expenses, the net income of bank loan business is about 20%.
Intermediary business: including handling fee, remittance fee, account opening fee, inquiry fee, safe deposit box lease fee, peer lending, interest income from discounted acceptance bills, custody business, gold, futures, and agency business. ) Preliminary predictions indicate that the project is expected to recover its costs within three years and begin to make profits in the fourth year.
Project docking:
According to Cambodia's national conditions, all bank and securities company officials at the cabinet minister level and above will hold about 10% of their shares. This is a win-win situation, that is, to ensure safety and obtain strong internal support from Cambodia.
4. Overview of Cambodia's Mineral Resources
There are currently 91 companies in Cambodia that have the right to develop and utilize mineral resources, including 139 prospecting licenses and 13 mining licenses. Both Cambodian state-owned enterprises and foreign-funded enterprises can participate in Cambodia's mineral development.
Cambodia’s proven mineral resources include iron, manganese, coal, salt, phosphorus, gems, gold, silver, copper, lead, aluminum, tin, tungsten, marble, and quartz sand.
The competent authority of Cambodia's mineral resources is the Ministry of Minerals and Energy. The Cambodian Mining Law stipulates that mining activities in Cambodia must obtain licenses issued by the government, including: artisanal mining licenses; mining licenses for pits and quarries; gem mining licenses; prospecting licenses; industrial mining licenses.
Investment prospects
The mineral resources are rich and are in a state of not being widely explored; mining infrastructure has begun to be built; diamonds, gems, gold, jade and other jewelry are very marketable in Cambodia.
According to investigations, Cambodia has high-purity gold mines distributed in various provinces. The rubies produced in Cambodia enjoy a global reputation. At present, we also see that Cambodia has mineral resources of diamonds and jade, and we are following up.
5. Overview of Cambodia's tourism industry
Tourism is Cambodia’s second pillar industry.
It accounts for more than 10% of GDP, and the GDP contribution rate of related industries driven by tourism is close to 40%. It is one of the countries with the highest percentage of GDP in the tourism industry in Asia.
According to estimates by the Ministry of Tourism of Cambodia, if the country's annual goal of attracting 6 million tourists can be achieved, the supporting hotel capacity will need to increase from the current 25,000 rooms to 70,000 rooms in 2020.
Rich domestic tourism resources:
Cambodia has currently developed more than 2,000 tourist attractions including natural landscapes, historical and cultural attractions, and leisure resorts. Famous tourist attractions include Angkor Historic Sites, Mount Lychee, Sihanoukville Port, Tonle Sap Lake, Tashan Mountain, and Wangok Lake, the Royal Palace of Phnom Penh, as well as the Mekong River Eco-tourism Area and the Northeast Cambodia Eco-tourism Area.
Preferential policies for Cambodian tourism industry:
The Cambodian government implements an open policy with no foreign exchange controls, and encourages foreign companies to invest in the tourism industry in Cambodia. Implement visa-free or visa-on-arrival policies for most countries in the world to simplify airport entry procedures.
"Open Sky": There are 11 airlines flying directly to Phnom Penh, and 5 companies flying directly to Siem Reap from abroad.
Investment prospects
Develop tourism supporting facilities: Cambodia's infrastructure such as transportation, hotels, and catering is not complete, and supporting services are not complete;
The Cambodian government is attracting investment in Phnom Penh, Siem Reap Province, Sihanoukville Province and other places, constructing and developing tourist areas, developing tourism supporting facilities, and gradually improving tourism supporting facilities such as transportation and catering. The market is huge.
The development potential of hotel rooms is huge: the capital Phnom Penh and the coastal Sihanoukville have a serious shortage of hotel rooms. Although there are a large number of hotels in the traditional tourist city of Siem Reap, the increase in tourists is huge and the potential for development is still huge.
Project docking
(1) Eco-tourism project in Siem Reap Province, Cambodia: The entire project development area is 3102 hectares, 100 hectares (1500 acres) are mainly used for the comprehensive development of tourist areas, and floating hotels, restaurants, shopping centers and other leisure and entertainment shopping places will be built;
The remaining 3002 hectares are the original ecological mangrove wetland ecological protection zone, which retains the original wet landform and original ecological mangrove forest; the proposed investment is 100 million US dollars.
(The Angkor Scenic Area in Siem Reap Province is the most attractive tourist destination in Cambodia. When choosing a destination in Cambodia, more than 50% of tourists choose Siem Reap Province)
(2) Water park project-the construction of a water park area of 180 hectares (38 kilometers away from Phnom Penh city, about 1 hour drive to arrive), the place is densely populated, and there is a railway next to the logistics terminal for the construction of water entertainment projects ( Tourism, water entertainment, swimming, agricultural products exhibition and sales)
6. Agriculture in Cambodia
Agriculture is the first pillar of Cambodia's national economy, and it is the Cambodian government's national policy to attach importance to agricultural development.
Cambodia’s per capita arable land area is more than 6 mu (the world’s per capita arable land area is 4 mu, and my country’s per capita arable land area is 1.2 mu). There are about 6.7 million hectares of arable land available, and the arable land rate is less than 40%. There are still 4 million hectares to be developed.
investment advantage
(1) Good investment environment.
(2) Abundant human resources and low labor cost.
(3) The value of land resources is high.
Advantageous agricultural products
Pepper; fruit; rice; vegetables; seafood; industrial planting materials such as rubber and cassava; livestock and poultry farming; farmland investment
Project docking
(1) If you want to purchase agricultural products, we provide the source of goods;
(2) If you want to contract yourself, we provide land;
(3) For those who want to be processing factories, we provide license factory sites and transportation services.
7. Cambodian Supermarket Industry
As the residents of Phnom Penh have an increasing demand for shopping in shopping malls and supermarkets, the number of new shopping malls and supermarkets in Cambodia continues to increase.
Although more and more shopping malls and supermarkets have begun to operate, they have not yet been able to meet the needs of domestic and foreign tourists and consumers.
Investment prospects:
(1) Changes in consumption patterns.
(2) Large supermarkets are in great demand.
(3) The entertainment and consumption complex has great potential.
(4) The area of shopping malls has a large room for growth.
As Cambodian locals have a strong demand for home appliances renewal and daily necessities consumption, Chinese home appliances and daily necessities of high quality and low price are introduced into Cambodia to establish a branded supermarket that sells mid-to-high-end Chinese products.
For example, Da Zhang, Dennis, and Fat Donglai have introduced Chinese supermarket management concepts and business models to provide low-cost and high-end shopping experience with low and preferential prices and good services.
Competing with Japanese supermarkets is bound to quickly occupy the market and obtain unimaginable huge profits.
Project docking
We can provide super-license processing, and we have selected the core location in the city center. In addition, it provides resources and channels in terms of brand building, product supply, marketing promotion, franchise agency and other business models.
8. Cambodian medical market
At present, Cambodia’s medical and health conditions are at a relatively low level in Asia. Medical care cannot meet the needs of medical development. Medical infrastructure is relatively lagging. The current situation of Cambodian people’s medical treatment
:
1. Ordinary people in Cambodia mostly pay out of their pockets to find better and reliable medical services in neighboring countries such as Thailand and Vietnam;
2. If it is a common cold or fever, people usually buy over-the-counter medicines at pharmacies on the roadside.
Many Cambodians do not trust domestic medicines, and those with a better economy will use imported medicines. Therefore, Cambodian society is very dependent on foreign imported medicines. Most of these imported medicines are imported from neighboring countries such as India and China;
3. The lack of medical insurance in Cambodia has caused Chinese people to spend a lot of their income on medical treatment.
Medical business opportunities:
The government and development partners from all over the world are committed to improving the health system;
All hospitals and more than 1,000 medical centers are in urgent need of high-quality drugs, medical supplies and equipment in Cambodia;
The establishment of international and private hospitals and clinics leads to a demand for high-quality medicines and medical products;
Cambodia is an emerging pharmaceutical market in the future. 55% of the pharmaceutical market is imported, and the local preference for foreign drugs is of great significance.
Cambodia's medical market is actively paying attention to foreign introductions to increase medical market opportunities.
Docking project
An investment cooperation project to build large-scale international hospitals and medical care hospitals that integrate medical care and nursing care.
A large international hospital will be built in Phnom Penh, the capital of Cambodia, including a 500-bed inpatient ward (currently the beds in major hospitals in Phnom Penh are 150-400 beds), an outpatient department and an emergency center that can accommodate 2,000 patients per day;
The hospital is equipped with advanced examination and treatment equipment and provides all medical services such as internal medicine, surgery, obstetrics and gynecology, and pediatrics for the general public.
The adjacent high-end medical care hospital provides advanced medical examination, outpatient, inpatient treatment and other services, introduces the advanced medical care model of Chinese hospitals, and purchases international advanced equipment.
It can not only improve the medical and health level of Cambodia and neighboring countries, benefit neighboring countries and people, and promote the social and economic development of Cambodia.
Overall income: outpatient income + hospitalization income + acute medical services + specialty services + medicine income deducts all medical staff salaries (medical staff salary 200-500 US dollars / month), benefits, medical equipment and operating costs.
9. Cambodian leisure and entertainment industry
Cambodia has a low tax rate on foreign tobacco and alcohol, and the consumption price of tobacco and alcohol is much lower than that in China. This is also one of the important reasons for the popularity of Cambodian KTV and nightclubs.
There are mainly several types of leisure and entertainment venues in Phnom Penh: KTV, bars and nightclubs, beer bars, saunas and so on.
Investment prospects:
(1) Cambodia's KTV entertainment facilities are poorly decorated, but the consumption is not cheap. Ordinary KTV, 3-4 personal consumption a night, no special services, the minimum cost of 500 US dollars;
Cambodia’s KTV practitioners are low in level, and their English level is generally low. Compared with China’s, the quality of service is far from that of China.
There are only a handful of high-end KTVs in Phnom Penh, with no more than 15 KTVs. Compared with the best KTVs in Cambodia, there is a big gap between them. This gap is all-round;
One type of KTV: For example, Tianshangrenjian (near bottomsup bar), Royal One (456 Road 105), the KTV in the casino NAGA, the main customers are Chinese: the routine is exactly the same as that in China, the room fee, the wine fee, and the tip . For the above three venues, the tip is generally US$20-30.
(2) Bars and nightclubs
There are no more than 5 high-end nightclubs in Phnom Penh. There is a strong demand for nightclub customers. It is difficult to find and overcrowded from 10pm to 3am every night. However, nightclubs generally have several shortcomings: small venues, quality of light and sound DJ Compared with China, there is a huge gap.
(3) Coffee shop
Southeast Asians have the habit of drinking coffee. In the past two years, large-scale coffee shop chains have developed rapidly. There are global chain brands such as Starbucks and local brands such as Brown coffee. Take Amazon Coffee as an example, there are 70 stores in Phnom Penh alone. The price of a single cup of coffee is $5, which is lucrative.
(4) Children's playground
At present, Cambodia's playground is near Naga, and its scale is not as large as that of domestic third-tier cities. The Phnom Penh playground is crowded with people every night and the demand is strong. Therefore, children's amusement facilities have huge market potential in Cambodia. In addition, Internet cafes, SPAs, fitness clubs, swimming pools and other projects also have great investment potential.
10. Overview of Cambodia's jewelry industry and investment prospects
Cambodia has high-purity gold mines, diamonds, jade resources, etc. Jewelry such as diamonds, gems, gold, jade, etc. has a great market in Cambodia, and its rubies are world-renowned.
The price of Cambodian rubies has increased by nearly 40 times in 20 years, and there is huge potential for appreciation.
There is a very rare "Cambodian Sunset Ruby" in Cambodia. It is 50 times rarer than a diamond. A flawless ruby the size of a fingernail is worth as much as US$250,000. Others include emeralds, yellow sapphires, and sapphires at around US$100-200 per carat, while rubies are up to US$1-2000 per carat.
Faced with many investment opportunities, don't you really come to Cambodia to take a look?