Cambodia is on the road toward sustainable development in the 21st century. It experienced strong macroeconomic stability and significant improvement in standards of living.
Strong trade and international relations
Cambodia can leverage on its membership of the Association of South-East Asian Nations (ASEAN). Tariffs on most Cambodian exports to and imports from ASEAN member countries have been reduced to zero to five percent by 2010 and will be abolished by 2018.
It has entered into bilateral investment treaties to provide reciprocal national treatments to investors, preclude expropriations and guarantee the repatriation of investments.
Strengthened financial sector and system
Over the last decade, developments in the banking sector have been generally remarkable, following the completion of bank restructuring programs in 1999. This was witnessed by banking and financial stability, increased financial services promoted through the institutional and legal reforms under the financial sector blueprint.
Inflation remains under control
Despite high fuel prices, the Cambodian Government has been successful in keeping inflation in check. The tight fiscal policies and the growing influence of monetary policy in controlling money supply expansion have contributed to this stability.
Investment incentives in special economic zone
Cambodia's investment law offers up to nine years tax holiday, zero percent rate on value-added tax and full import duty exemption on raw materials, machinery, and equipment. In addition, it guarantees free repatriation of profit that investors earn
Investment protection
Cambodian government ensures equal treatment to all investors and free remittance of foreign currencies abroad. There is no requirement for investors to participate in the local equity.
(Source: Council for the Development of Cambodia)