KOTRA Publishes Revised Edition of Cambodia Investment Practical Guide

[Asia Economy Reporter Suyeon Woo] KOTRA announced on the 29th that it has published a revised edition of the Cambodia Investment Practical Guide. This is for Korean companies interested in investing and entering the market in Cambodia, the fastest-growing ASEAN country.

As of 2018, Cambodia's nominal GDP per capita is around $1,500, but with a median age of 25.7, it has a plentiful young workforce. Over the past 20 years, it has recorded an average annual growth rate exceeding 7%, demonstrating its unlimited potential.

This Cambodia Investment Practical Guide is a revised edition of the guidebook published in 2011, incorporating the latest investment conditions including changes in Cambodia's investment law, labor law, and tax law.

Since the re-establishment of diplomatic relations in 1997, Korea and Cambodia have strengthened their economic cooperation. At the Korea-ASEAN Special Summit held last November, a double taxation avoidance agreement was also signed between the two countries, which is expected to further improve the conditions for investment and market entry in Cambodia.

From 1995 to 2018, Korea invested $4.65 billion in Cambodia, ranking second after China. Among Cambodian consumers, Korean consumer goods such as food and beverages and cosmetics are popular, based on the Korean Wave. According to KOTRA Phnom Penh Trade Center, about 270 Korean companies have entered various sectors including finance, textiles and garment, real estate, construction, and agriculture and forestry.

This investment practical guide includes specialized content by sector such as ▲investment procedures and incentives (regulations) ▲labor management and various tax and labor reporting obligations (management) ▲various types of taxes (taxation) ▲export-import customs clearance (customs), along with information on visa issuance and stay guidance related to housing and office leasing.

Jang Sang-hyun, CEO of KOTRA Invest Korea, said, "With Cambodia's rapid economic growth, active investment attraction policies, and the Korean government's New Southern Policy coming together, interest in Korean companies investing in Cambodia is increasing. We hope that through this investment practical guide, companies can familiarize themselves with Cambodia's investment environment and tax matters in advance and successfully settle locally."