Cambodia, a country located right between Thailand and Vietnam, is elevating as an increasingly attractive destination for foreign investors. With more than 6 million tourists visiting in 2018 and a strong and consistent economic growth, there is no wonder this humble Kingdom is being eyed by property investors worldwide.
Todays Cambodia is a part of the Khmer empire which ruled much of what is now Laos, Thailand and Vietnam. The remains of the empire can be admired for instance at the fabled temples of Angkor. The wellknown Angkor Wat attracts a majority of tourists and it sher size makes it one of the items on people's bucket list together with other marvels such as Machu Picchu and The Lost City.
Tourists are coming from all over the world and the two largest groups are from Vietnam and China with a growth the last year of 75.8%.
Of course, this influx of tourists is not new. In fact, for the last two decades, this country’s economy has been growing fast, and it seems it will continue to do so for the foreseeable future. Given that it has access to global markets and that it welcomes foreign investments in accordance with its economic policy, Cambodia’s popularity is rising. What’s more, since it’s one of those countries that makes it easy to obtain credit (it’s ranked 7th out of 190 economies), banks and financial institutions can now get credit scores and other relevant information.
Statuses and memberships
Cambodia is beautiful and it's also a modern country on the international scene and taking part of international trade between nations such as the World Trade Organization, WTO. During the years, it has been chosen as the MFN (Most Favored Nation) by other developed nations, including France, the UK, China, Germany, and the US. In addition, it is also a member of ASEAN — Association of Southeast Asian Nations since 1999.
When investing in New Nordic Group holiday resorts, investors buy a slice in two of the fastest growing industries in some of the most beautiful areas of the world, the real estate & the tourism industries.
Why invest in Cambodia? — Enticing incentives
Although investing in Cambodia, especially in property, is worth it in and of itself, it’s important to note that this isn’t the only incentive available.
Foreign entities can hold 100% ownership over a commercial enterprise or local business. However, the Cambodian government plays a key role in welcoming foreign investments. In addition, they don't limit trade with endless restrictions nor use their power to impose foreign exchange or product and service price controls.
Free remittance of capital, dividends, loan repayments, interests, and royalties. What’s more, they also offer free repatriation of profits and 50-year leases to foreigners on Cambodian land. As such, even though they cannot own any land in the country according to the Law on Investment, they may enjoy a lengthy lease on their property.
Reasons that make Cambodia a well-worth investment
So what makes Cambodia the perfect place for real estate buyers and businesses? Well, the first reason is that it is a rapidly-growing frontier market. Although small, this country has seen huge economic growth for the last two decades, ever since Khmer Rouge disbanded. It hasn’t been touched by recession during those years! In fact, the 1990s Asian Financial Crisis didn’t affect it, nor did the 2008 Financial Crisis. The early 2000s tech-bubble was skipped by Cambodia too.
Some of the larger investors are Toyota, Nike, and Samsung, just to name a few. In addition, the impressive quality of manufacturing in Cambodia, as well as the low cost of labor in comparison to China, is drawing investors in and allowing them to make a more than decent profit.
Where to start
It’s important to note that, if you are a foreigner, Cambodia is waiting for your investment with open arms. This country welcomes foreign investment more than any other Asian country, which is why setting up a business with 100% foreign ownership is not just possible but easy as well.
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Sihanoukville is the future of Cambodian tourism - Sihanoukville has a population of 200 000 and is considered a full-flexed city with highly developed infrastructure. The Sihanoukville Special Economic Zone functions as a magnet for foreign investment and a boost for the local economy. The port of Sihanoukville is a hub for both trade and cruise ships in the region. Being the only city with an international deep water port in Cambodia; Sihanoukville serves as a strategic centre for foreign investment. The harbour is currently under expansion to prepare for even more commercial traffic in the years to come. The International airport of Sihanoukville handled 651,000 passengers in 2018 compared to only 13,000 in 2012. Sihanoukville has an active tourism department with their ear to the ground. They work to regulate prices and ensure prices are not hiked due to tourism. Favourable incentives to draw tourists and development. Airlines receive USD 10 per passenger when scheduling routes to Sihanoukville.
Country head office
The New Nordic Group's office in Cambodia is situated in the capital city of Phnom Penh. Our sales team are here to answer your questions about New Nordic and our projects.
New Nordic Development (Cambodia) Co. Ltd, #167 Sisowath Quay, Sangkat Phsar Kandal 1, Khan Daun Penh 12204, Phnom Penh Cambodia
Phnom Penh, the pearl of the Orient is a hub for travelers with amazing sites to visit, architecture, food and nightlife.