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The Kingdom of Cambodia has emerged as a hub for forward-thinking investment, underpinned by a progressive legal framework and attractive incentives. Article 24 of the Law on Investment of the Kingdom of Cambodia highlights 19 priority sectors poised for transformative growth, offering a gateway for businesses to thrive in regional and global markets.

Exploring Cambodia’s Priority Sectors

1. High-Tech and Innovation Industries: Industries focused on cutting-edge technologies, research, and development are central to Cambodia’s growth strategy.
2. New and Competitive Manufacturing: Innovative industries producing high-value goods with global market potential are strongly encouraged.
3. Supply Chain Development: Businesses supporting regional and international supply chains enjoy a favorable investment ecosystem.
4. Agricultural and Manufacturing Support: Investments enhancing agriculture, tourism, and manufacturing supply chains create synergistic opportunities.
5. Electronics and Electrical Industries: Cambodia welcomes industries producing advanced electronic and electrical products.
6. Mechanical and Machinery Manufacturing: Vital to global supply chains, these industries benefit from significant incentives.
7. Agriculture and Food Processing: With rich agricultural resources, Cambodia is a prime location for agro-processing industries catering to domestic and export markets.
8. Small and Medium Enterprises (SMEs): Priority sectors for SME clusters, industrial parks, and innovation hubs foster localized economic growth.
9. Tourism and Hospitality: As one of the world’s premier cultural and historical destinations, Cambodia supports investments that expand its tourism potential.
10. Special Economic Zones (SEZs): Strategically located SEZs provide unparalleled benefits and infrastructure for investors.
11. Digital Technology: Investments in digital industries, including artificial intelligence and big data, are instrumental in modernizing the economy.
12. Education and Training: Projects in education, vocational training, and skill development are key to Cambodia’s human capital enhancement.
13. Healthcare Development: Investments in medical services and facilities contribute to Cambodia’s robust health sector growth.
14. Infrastructure Projects: Investments in physical infrastructure enhance connectivity and drive sustainable development.
15. Logistics and Supply Chains: Cambodia’s strategic location makes it an ideal hub for logistics investments.
16. Environmental and Biodiversity Projects: Initiatives focused on environmental management, conservation, and circular economy models are prioritized.
17. Renewable Energy and Green Technologies: The government encourages projects that align with climate adaptation and sustainable energy solutions.
18. Research and Modernization: Incentives support innovation, adoption of advanced technologies, and modernization of production systems.
19. Other Potential Sectors: Any activities identified by the government as having significant socio-economic impact are incentivized.

Unmatched Incentives for Qualified Investment Projects (QIPs)

Cambodia’s investment framework is one of the most competitive in the region, with incentives designed to enhance profitability and long-term growth:

Option 1: Tax Exemptions

• Tax Holidays: Up to 9 years of income tax exemption based on the investment category.
• Progressive Tax Rates: Gradual increases post-exemption ensure sustained benefits.
• Export Tax Relief: Exemptions on export taxes bolster global competitiveness.

Option 2: Enhanced Deductions

• Double Expense Deductions: Up to 200% for training, digital transformation, and research initiatives.
• Accelerated Depreciation: Special depreciation for capital expenditures.

Additional Incentives

• Customs Duty and VAT Exemptions: Covering construction materials, machinery, and production inputs.
• Local Procurement Benefits: 0% VAT on locally sourced production materials.
• Welfare and Sustainability Incentives: Deductible expenses for projects benefiting workers, such as accommodations and modernizing production facilities.

Support for Expansion Projects

Expanded Qualified Investment Projects (EQIPs) benefit from continued tax exemptions, ensuring sustained growth through diversification, scaling production, or adopting advanced technologies.

Special Incentives for High-Potential Sectors

For activities deemed vital to Cambodia’s national development, special incentives are offered under the Law on Financial Management.

A Thriving Investment Landscape

Cambodia’s strategic location, pro-business policies, and diversified economy make it an ideal destination for investors seeking sustainable growth. With 19 priority sectors and unparalleled incentives, the Kingdom offers vast opportunities to businesses aiming to contribute to and benefit from its thriving economy.

Investors are invited to be part of Cambodia’s growth story—a nation that combines tradition, innovation, and opportunity to create a vibrant future. The time to invest in Cambodia is now.

The recent bilateral consultations between the Ministry of Foreign Affairs and International Cooperation of the Kingdom of Cambodia and the Ministry of Foreign Affairs of the Kyrgyz Republic marked a significant step in fostering closer ties between the two nations. This high-level dialogue underscored mutual commitment to enhancing collaboration across various areas of shared interest.

A central theme of the discussions was the reinforcement of political cooperation. Both delegations emphasized the importance of mutual respect and constructive engagement to strengthen diplomatic relations. Concrete steps to facilitate ongoing dialogues and exchanges between officials were also highlighted, setting a robust framework for deeper collaboration in the future.

Economic and trade cooperation was another key focus. The consultations explored avenues to unlock potential in sectors such as agriculture, technology, and sustainable development. Both sides agreed to enhance trade facilitation measures, promote investment opportunities, and encourage greater participation from private sector stakeholders to contribute to economic prosperity in both countries.

Education and cultural exchange were also prominent topics during the meeting. Recognizing the vital role of people-to-people connections, both ministries pledged to promote scholarships, academic exchanges, and cultural programs. These efforts aim to create stronger societal ties and foster mutual understanding between Cambodia and Kyrgyzstan.

Regional and international issues were also on the agenda, with both nations agreeing on the importance of multilateralism in addressing global challenges. Their shared commitment to supporting peace, security, and sustainable development resonated as a mutual priority.

The outcomes of this meeting signify a meaningful step toward strengthening Cambodia-Kyrgyzstan relations, showcasing a shared vision for cooperation and mutual growth. With these consultations laying a strong foundation, the two countries are well-positioned to realize their shared goals and deepen their partnership in the years to come.

Source: MFAIC News

In a display of further strengthening diplomatic relations, Cambodian Prime Minister Hun Manet extended a warm welcome to Jonathan Kings, the Ambassador of New Zealand to Cambodia, during a meeting at the distinguished Peace Palace on Thursday, September 19. This encounter between the two dignitaries goes beyond mere pleasantries and marks another chapter in the evolving partnership between Cambodia and New Zealand.

Cambodia, with its rich cultural heritage and burgeoning economic landscape, has been taking significant strides on the international stage. The nation is keen on expanding its diplomatic relations and fostering partnerships that can aid in national development and international cooperation. New Zealand, known for its expertise in various sectors including agriculture, geothermal energy, and disaster risk management, stands as an invaluable ally in this pursuit.

The discussions between Prime Minister Manet and Ambassador Kings revolved around various topics of mutual interest, looking for ways to deepen the ties between the two nations. This visit provided an opportunity to explore new avenues for collaboration and reaffirm the commitment to shared goals and values.

Strengthening economic ties was a primary agenda of the meeting, focusing on trade and investment relationships that could mutually benefit both countries. There was an emphasis on identifying potential sectors where New Zealand’s cutting-edge technology and know-how could play a role in propelling Cambodia’s economy forward. Areas such as agriculture, sustainable development, and renewable energy were identified as possible fields for enhanced cooperation.

Educational exchange was another focal point of the discussion. With a common understanding of the importance of education in shaping the future of nations, both parties expressed an interest in increasing scholarship programs and facilitating academic exchanges. Such initiatives could significantly contribute to the development of Cambodia’s human capital, essential for sustaining growth and improving competitiveness.

The two leaders also delved into the aspects of tourism and cultural exchange, recognizing the potential for boosting tourism between the two countries. Cultural exchanges were seen as an excellent platform for deepening understanding and appreciation of each nation’s heritage and traditions.

Furthermore, discussions also extended to regional stability and security, topics that are crucial for the peaceful development of not only individual nations but the wider Asia Pacific region. Cambodia and New Zealand share a common view on the importance of maintaining peace and security in the region and agreed to continue their engagement and cooperation on these matters on multilateral platforms.

This encounter between Prime Minister Manet and Ambassador Kings highlights the ongoing commitment to a partnership that is based on mutual respect, shared benefits, and cooperative development. As these talks culminate, they can be a catalyst for a range of cooperation initiatives that could leave a significant mark on the future of Cambodia.

Both Cambodia and New Zealand have much to gain from a fortified relationship, with potential advancements in trade, education, culture, and regional security on the horizon. As both countries continue to press forward, the foundation for a stronger, more dynamic partnership has been set – one that is hoped to bring about substantial positive outcomes for both parties involved.

As the meeting concluded, it was clear that the ties between Cambodia and New Zealand are set to enter an exciting new phase, with high hopes for significant bilateral collaboration across a varied spectrum of initiatives, ultimately aiming to contribute positively to the lives and well-being of the people of both nations.

Source: Fresh News

On a notable day in Phnom Penh, Cambodian Prime Minister Hun Manet engaged with a US business delegation at the Peace Palace, an event that underscores Cambodia’s growing role in international trade and education sectors. The meeting, held on Tuesday, September 10, was facilitated by the Cambodian Chamber of Commerce in California, marking a significant moment for potential collaboration between the U.S. and Cambodia.

The delegation, led by Patrick Murphy, comprised representatives from five companies actively seeking avenues to import Cambodian agricultural products into the U.S. market. The focus of their interest centers around staple commodities such as cashews, rice, pepper, and dried mangoes. This initiative not only highlights the quality and potential of Cambodian agricultural outputs but also opens a gateway for increased economic engagement with the U.S.

Prime Minister Hun Manet warmly welcomed the delegation, expressing his support for their objectives and outlining comprehensive measures taken by his administration to uplift Cambodia’s agricultural sector. Among these initiatives are providing tax incentives, modernizing agricultural techniques, deploying local technical officers, developing modern agricultural communities, and enhancing logistics and infrastructure. These efforts aim to reduce operational costs and escalate the competitiveness of Cambodian agricultural products, fostering a more lucrative environment for international trade.

In addition to agriculture, the delegation was keen on bolstering the educational ties between the two countries. A notable outcome from the discussions was the decision by a U.S.-based company to establish a representative office in Cambodia. This office will function as a bridge for Cambodian students aspiring to pursue higher education in the U.S., thereby facilitating an exchange of knowledge and cultural understanding that is mutually beneficial.

With education and agriculture at the forefront, the interactions between Prime Minister Hun Manet and the U.S. delegates pave the way for multi-sector cooperation. The Cambodian Premier encouraged the American firms to further engage with local ministries and institutions to explore and capitalize on more diversified business opportunities within Cambodia. This open invitation not only reflects Cambodia’s welcoming stance towards foreign investments but also highlights the nation’s strategic initiatives to integrate more deeply with global markets.

The discussions underscored a shared commitment to nurturing a partnership that can significantly contribute to the economic and educational spheres of both nations. With the U.S. showing a robust interest in both supporting and benefiting from Cambodia’s growth sectors, the momentum for future collaborations looks promising. The initiatives discussed are poised to enhance Cambodia’s exports, benefiting local farmers and businesses while simultaneously offering U.S. consumers access to quality products.

Moreover, by facilitating educational exchanges, both nations work towards creating a cross-cultural understanding and enabling the youth of Cambodia to acquire international educational experiences that could be pivotal in the nation’s development.

In conclusion, the meeting between Cambodian Prime Minister Hun Manet and the U.S. business delegation not only signifies a step forward in strengthening U.S.-Cambodia relations but also highlights the strategic sectors of agriculture and education as pivotal areas for future cooperation. As these initiatives take shape, they are likely to bring substantial economic benefits to Cambodia while opening new markets and opportunities for U.S. businesses and educational institutions.

Source: Fresh News

During a vibrant graduation ceremony for University of Puthisastra students at the OCIC, Cambodian Prime Minister Hun Manet addressed concerns about the nation’s sovereignty and territorial integrity. Emphasizing Cambodia’s significant achievements since the end of the civil war in 1998, the Premier urged citizens to focus on the country’s tangible progress.

Prime Minister Hun Manet highlighted that Cambodia’s advancements are a testament to the resilience and strength of its people. “Our scholars and students may fear losing our sovereignty or our nation, but such assessments must be based on tangible achievements, whether in the construction of our canal or elsewhere. The development of our northeast region and other areas shows that Cambodians are stronger. Since the end of the civil war in 1998, progress has been evident throughout Cambodia,” he underscored.

Addressing specific concerns about territorial loss and national sovereignty in the northeast, Samdech Thipadei detailed the Royal Government’s ongoing efforts in infrastructure development to foster economic growth and enhance livelihoods. He acknowledged that while some regions, like Phnom Penh, have seen more rapid development, significant improvements have been made in the northeast since 1998.

“Certainly, some areas are not as developed as others. For example, economic growth in our northeast region does not match that of Phnom Penh, and some provinces are more developed than others. However, our goal is to ensure balanced development nationwide. While the northeast may not be as developed as Phnom Penh or Sihanoukville, it has seen significant improvements since the end of the war in 1998, with increased population and infrastructure. The next generation of Cambodians in these areas is becoming stronger,” stated the Premier.

Samdech Thipadei also pointed out the importance of building human resources across the nation. “I have presided over graduation ceremonies in Kratie, Ratanakkiri, and Mondulkiri provinces to build human resources there, not just in Phnom Penh. This is a tangible achievement in the areas you are concerned about. To address fears about territorial loss or sovereignty, we must work together to build a strong foundation where we have concerns.”

Reassuring the nation, Prime Minister Hun Manet affirmed that projects like the Funan Techo Canal will not compromise Cambodia’s territory or sovereignty. He emphasized the importance of maintaining national integrity and independence, reiterating that there is no cause for concern.

Cambodia continues to build a bright future, grounded in the strength and unity of its people. As the nation progresses, its citizens can look forward to balanced development and sustained sovereignty, ensuring a prosperous and secure Cambodia for generations to come.

In a significant diplomatic engagement, Cambodian Prime Minister Hun Manet hosted a meeting with the Commanding General of the Philippine Army, Lieutenant General Roy M. Galido, on Monday morning, July 29. This respectful exchange took place at the prestigious Peace Palace, marking a noteworthy moment in the ongoing military and diplomatic relations between Cambodia and the Philippines.

The meeting underscored a shared commitment to peace and cooperation in the region, serving as a platform for both nations to explore avenues of mutual interest and reinforce their ties. Such high-level military engagements are a vital component of international diplomacy, enabling countries to discuss strategic partnerships, security issues, and collaborative opportunities that benefit not only the nations involved but also contribute to regional stability.

Lieutenant General Roy M. Galido’s visit to Cambodia and his interaction with Prime Minister Hun Manet signals a gesture of goodwill between the two nations’ armed forces. It highlights the importance of fostering strong military-to-military relations as a foundation for broader bilateral relations. Engagements like these are crucial for understanding each other’s perspectives on various challenges facing the region and discussing potential collaborative efforts in areas such as defense, security, humanitarian assistance, and disaster relief.

The interaction between Prime Minister Hun Manet and Lieutenant General Roy M. Galido also reflects the deepening of diplomatic ties and the promotion of peace and security cooperation between Cambodia and the Philippines. It opens the door for future dialogues and joint initiatives that could further enhance their cooperative endeavors, contributing to the overall stability and prosperity of the Southeast Asian region.

In recognizing the significance of this meeting, it’s essential to appreciate the broader context within which these military dialogues occur. They are part of the ongoing efforts by nations in the Southeast Asian region to build a collaborative and peaceful environment, amidst a complex and evolving global landscape. Meetings like the one held at the Peace Palace serve not only as diplomatic courtesies but also as critical steps towards advancing mutual understanding, partnership, and peace in the region.

Source: Fresh News

In a concerted effort to bolster educational quality across Cambodia, Prime Minister Hun Manet recently elucidated the Royal Government’s strategies to standardize schooling at a gathering with primary school teachers in Kampong Chhnang province. This dialogue, which took place on the morning of July 27, emphasized the government’s commitment to enhancing teaching quality through a series of progressive steps initiated by the Ministry of Education, Youth and Sports.

Prime Minister Hun Manet highlighted the commencement of these educational reforms with primary education. He revealed that an initial batch of 42 primary schools spanning nine provincial capitals has been chosen to spearhead this project aimed at fostering exemplary educational standards that can be replicated nationwide. “Although our primary schools operate under the same standards, the variations in execution and student performance are significant. Our goal is to harmonize these standards,” the Prime Minister stated. He cited Wat Bo School in Siem Reap as a notable model, advocating for the replication of its successful strategies across the country to uplift the overall quality of education.

Furthermore, the Prime Minister reassured that while the primary focus is currently on primary schools, the enhancement of educational standards does not overlook kindergartens or secondary schools. This comprehensive approach demands an uplift in both the intellectual and ethical standards of teachers across all levels.

To effectively implement these reforms, the Royal Government has established the National Committee to Promote the Implementation of Key Measures in Education, which is co-chaired by Prime Minister Hun Manet and Senior Minister Pich Sophoan. The committee is tasked with leading, coordinating, and addressing the educational sector’s challenges to successfully execute the envisaged reforms.

Key activities managed by the committee’s secretariat include the selection of schools for improvement, setting specific objectives for these schools, selecting and training instructors, collating and distributing best practices, and providing support courses to targeted schools. Furthermore, the initiative includes ongoing monitoring and evaluation to assess the impact and effectiveness of the implemented strategies.

In a notable move to bolster this initiative, 22 retired school principals have been roped in to lend their expertise. These principals are expected to volunteer their services, sharing valuable insights and conducting practical training sessions for designated schools in an effort to elevate educational practices across the board.

Through these targeted efforts, the government aims to foster a uniform standard of high-quality education across Cambodia, ensuring that the potential of every student is maximized in an equitable and effective educational environment.

Source: Fresh News

Phnom Penh, Jul. 24 – In a significant announcement made from Phnom Penh, Samdech Techo Hun Sen, Cambodian Senate President, has informed the public of the upcoming 12th Cambodia-Laos-Viet Nam Development Triangle Area (CLV-DTA) Summit, scheduled to take place in Cambodia. The declaration came through a dedicated message concerning the CLV-DTA, delivered on July 23, 2024, charting the course for what is poised to be a pivotal gathering for regional cooperation.

Sen pointed out that the series of summits, having reached their 12th iteration, have proven to be fruitful venues for the promotion of economic, social, and development goals within the participating nations. A testament to these gatherings’ effectiveness, the region has witnessed tangible improvements in economic development and an uptick in the populace’s earnings throughout the years.

The Senate President revealed, “Cambodia is honored to play host for the forthcoming summit. Invitations have been officially extended to our partners through the necessary diplomatic channels, and we are currently awaiting confirmations from Viet Nam and Laos.”

The chronology of the summits, as shared by Sen, is notable for its breadth and depth, starting from the inaugural meeting in 1999 in Vientiane, Laos, and spanning cities across the three nations over the years. Each summit has paved the way for enhanced cooperation and collaborative efforts addressing the needs and challenges of the development triangle area.

Significantly, the upcoming summit not only signifies a continuing commitment towards shared goals but also highlights the critical role of external partners in the region’s development. In particular, Sen emphasized Japan’s substantial contributions, notably a commendable USD 20 million aid package directed towards small-scale projects in Mondulkiri province in 2005. This assistance underscores the importance of international support in achieving the developmental objectives within the CLV-DTA framework.

As preparations for the 12th Summit proceed, the anticipation is palpable among the member countries, with the aim of furthering the agenda of growth, sustainability, and regional harmony. The CLV-DTA Summit continues to stand as a strategic platform for discussing and deploying initiatives that benefit not just the individual countries but the broader Southeast Asian region. The journey of the past two decades, through the summits, illustrates a shared path toward flourishing collective prosperity, underscored by mutual respect, understanding, and cooperation among Cambodia, Laos, and Vietnam.

Source: Fresh News

On July 23, during a special address regarding the CLV-DTA, Cambodian Senate President Samdech Techo Hun Sen shared his aspiration to stand at the junction where Cambodia, Viet Nam, and Laos meet, often referred to as the Dragon’s Tail. This point of convergence is symbolic of the intertwined destinies and cooperation between the three countries.

Samdech Techo Hun Sen articulated his wish for the Royal Government to persist in its efforts towards the construction of National Road No. 78.5, which would stretch from the capital of Ratanakkiri Province to the famed T-junction. “It is my hope to witness the fruition of this project within my lifetime,” he stated, underscoring the personal significance of the endeavor.

He elaborated on the details of the proposed roadway, highlighting its planned extent of over 166 kilometers and width of 9 meters, extending from Banlung City through Ta Veng district to the Dragon’s Tail. To realize this vision, the government will seek funding necessary for the construction of National Road No. 78.5.

Furthermore, Samdech Techo Hun Sen recognized the strategic benefits of augmenting the existing infrastructure network with this new project. He reminisced about the completion of National Road No. 78, a collaborative effort between Cambodia and Viet Nam, stretching from Ou Ya Dao to Banlung. The establishment of an international border checkpoint on this route, which he inaugurated alongside the former Vietnamese prime minister, has since facilitated smoother and more cost-effective trade between Cambodia and Viet Nam.

Emphasizing the broader significance of the T-junction, located at a mountain’s peak, Samdech Techo Hun Sen noted its representation of the enduring friendship and collaboration among Cambodia, Viet Nam, and Laos. His expressed desire to visit this symbolic location underscores the importance of regional connectivity and diplomatic ties in fostering mutual growth and cooperation among these neighboring countries.

Source: Fresh News