Economy and trade

Economy and trade

Cambodia re-established international trade relations in the 1980s and foreign investment in 1994. Cambodia joined ASEAN in 1999 and the World Trade Organization in 2004. Cambodia's bilateral trade agreement partners include China, Laos, Switzerland, the Philippines, Bangladesh, Germany, Malaysia, the United Kingdom, Thailand, Indonesia, Singapore, Vietnam, India, Uganda, Japan, North Korea and South Korea.

Economy

Cambodia's gross domestic product (GDP) increased by 19.8 percent from 56,616.8 billion riels in 2012 to 67,851.03 billion riels in 2014.2 Cambodia has seen rapid economic growth. The strongest of the regional economies of the last decade. Although the growth rate in the first half of 2015 was slower than the ADB had forecast, the ADB still forecasts that Cambodia's economy will grow by 7% in 2015. The increase was due to lower oil prices and lower inflation, which created a better outlook for exports and tourism and higher expectations than last year for agriculture.

The World Economic Forum ranked Cambodia 90th out of 140 countries (from 95th in 2014) in its Global Competitiveness Annex from 2015 to 20164 with Myanmar as the only ASEAN country. In the World Economic Forum study, Cambodia received the lowest scores in "higher education" and "training" and "innovation" and the highest scores. In the "health sector", "primary education" and "macroeconomic environment".

Business

Cambodia had a current account of US $ 1.16 billion in 2013. This shows that Cambodia's imports outweigh its exports.

In accordance with WTO standards, Cambodia first inspected its trade policies and activities in November. 2011 and the next inspection is scheduled for 2017. 7 Cambodia is currently reviewing investment laws and regulations. To prepare in accordance with the establishment of the ASEAN Economic Community (AEC) in 20158 and plan to introduce e-commerce law by the end of 2015 before the start of the community ASEAN Economy.9

Cambodia's Trade Integration Strategy 2013 to 2018 and Trade Transformation Map 2013 to 2018 indicate the industries, products and sectors that the Royal Government plans to adapt to the global market and take great care of.

Investment

Cambodia has a free and open foreign investment regime with a legal and policy framework that helps investors. The Investment Law of 1994 sets out a formal process for and encourages both local and foreign investors to participate in the project. Qualified Investment (QIP) (link to the legal framework for QIP in the Investment Law page) in Cambodia.11 QIP is subject to tax incentives and administrative processes. Easier and faster from the government.

The only official restrictions on foreign investors are the prohibitions related to land ownership, the admission of foreigners and restrictions. On foreign influence by sector.12 According to the 2001 Land Law, foreign investors can own land through ELCs.

From 1994 to 2013, $ 28.14 million flowed into the Kingdom of Cambodia in the form of foreign direct investment and assets. Consistent.13 Since 2007, total foreign direct investment has exceeded development assistance from foreign governments.14 More than two-thirds of direct investment From four countries: China, United Kingdom, Vietnam and Malaysia. In 2005, Cambodia had an official special economic zone. Companies in the SEZ benefit from QIP. As of January 2015, there are 30 SEZs (link to SEZ data). A World Bank report cites Cambodia's special economic zone policy as a success, creating about 68,000 jobs through foreign investment rather than government spending.

Banking sector

The National Bank of Cambodia is the sole inspector of the banking sector in Cambodia. In 2013, the Cambodian banking system consisted of 35 commercial banks, 9 specialized banks, 6 representative offices, 38 microfinance institutions, 38 rural lending agencies, 33 lending companies. Finance 2 Credit Offices and Third Party Operators 3.16 The 35 leading commercial banks in terms of assets, trading volume, credit and Deposits are ACLEDA Bank, Canadia Bank, Cambodian Public Bank and ANZ Royal Bank. These four banks combined account for more than half of the total assets in the banking sector as a whole.17

The World Bank's 2014 financial data shows that most Cambodians do not yet use banking for regular accounting services and still prefer to use informal borrowing as opposed to institutional borrowing.

Stock Exchange

The Cambodia Securities Exchange was launched in July 2011 to facilitate the flow of capital and the distribution of capital through capital market mechanisms.

The Securities and Exchange Commission of Cambodia has the role of governing the securities sector in Cambodia, while the Law on Government Securities in 2008 and the Law on the Issuance and Trading of Non-Governmental Securities in 2007 preceded the operation of the Cambodia Securities Exchange.

As of December 2015, only three companies have been listed on the Cambodia Securities Exchange since the inception of the Cambodia Securities Exchange. The company is PPWSA, which went public in April 2012, Grand Twins International (Cambodia) Plc. (CSX: GTI) in June 2014, and the Phnom Penh Autonomous Port Authority (CSX). : PPAP) in December 2015.20

One of the three listed securities firms listed with the Securities and Exchange Commission of Cambodia, Sonatra Securities, postponed its operations in October 2015, slowing progress and increasing the number of transactions. Trading low on the Cambodia Securities Exchange.

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