Cambodia’s strong economic growth is the result of foreign direct investment. This investment has been made in the country in the last 20 years. Investment analysis shows that FDI has increased by more than 800% in the last 10 years. The most reported GDP in 2018 is 3 billion. It is easy to understand how this small country in Asia attracts so much Foreign Investment in Cambodia.
No Visa Restrictions
ASEAN member countries allow fellow ASEAN members access to tourist visas. With the exception of China and North Korea, it is easier to travel in Asia if you are Asian. However, obtaining a work visa is difficult. You must also apply for a number of government permits before you can be granted long-term residency.
It is very easy to get a visa in Cambodia. Depending on the nationality, the tourist visa is free for 14-30 days. Regular 30-day visas are available at airports and land borders. This type of visa is used by job seekers and tourists from non-ASEAN countries. No documentation required.
For retirees, an ER visa is available and is processed by travel agencies. They can get a 6 month or 12 month visa. All they need is proof of income from their country of origin.
Similarly, students enrolled in Cambodian schools are eligible for ES visas. All they need to do is show proof of school registration. The visa is valid for a period of 6 months and 12 months. Any travel agency can process visa applications and renewals.
No Currency Differentiation
The US dollar is accepted and used in Cambodia Real Estate. It is used with the local currency, the yeast rail. About 80% of transactions in the country use USD. USD is stable and reliable. This makes it easier for foreigners to do business.
There is no freehold on foreign exchange. Foreigners easily make money in USD and then send it back to their home countries. They can also withdraw USD from their home banks for use here in Cambodia. No one thinks about forex rates.
Cambodia is the only country in Asia to use USD simultaneously with its currency. You can come up with a USD stack and make transactions using it. No need to exchange your money for local currency. Just be sure to bring small bills with you. Living in Cambodia is cheaper, which is why commodity prices are lower.
No Change of Citizenship Needed
In most countries, you need to become a citizen or have permanent citizenship to get into the real estate business. Some Asian countries, such as Malaysia, allow you to purchase property up to a certain price. The Philippines and Thailand only allow you to buy a condo unit. And foreigners are allowed to own only a certain percentage of a building.
This is not the case in Cambodia. You can enter the Cambodian real estate market without changing your citizenship. Foreigners can buy properties through astrological titles or through designated structures.
In the designated structure, 51 the property is in the name of Cambodian National and 49 is owned by foreigners. For security, they enter into a mortgage agreement. It does not allow designators to sell, transfer, transfer or make any changes to the property.
In addition, foreigners are allowed to lease land for 50 years or more. As long as there is a lease agreement, they can build structures or reuse the land. As long as it is not fixed in the lease, it can do whatever needs to be done on foreign land.
Foreign investors can invest, and own companies in Real Estate Cambodia. They can be 100% owned and there are no trade restrictions. Investors can do any kind of business in the country. There is no price control, which means they can put their own price on the items they sell. Foreigners can also send their income back home.
Qualified Investment Law
Foreign companies registered as QIP are exempt from tax exemption or special tax. The cost of special tax is 40% of the production cost. In the tax exemption, foreign investors are eligible for 3 years tax leave. The holiday begins when they receive the final registration certificate. After 3 years of tax holiday, 3 more years is preferred. This is another 3 year waiver. The duration depends on the type of project and the investment.
Another advantage for QIPs is the special economic zone. These zones have been created all over the country. SEZs have special privileges for industries that bring in FEDI. These zones have incentives such as additional budgets for infrastructure and public works. There are also government officials stationed there who provide immediate assistance when needed.
Young and Eager Workforce
Although Cambodia was founded in the early 802 AD, the country’s workforce is young. The Khmer Rouge era basically wiped out their manpower. This leaves a young population that is slowly rebuilding its economy. Many rich countries like Japan are experiencing a slowdown in economic growth. This is because they have an older workforce. These countries need to hire trained foreign workers from neighbouring countries. Foreign workers settle their dying business sector.
In Cambodia, workers are young and in large numbers. Some lack basic skills such as English. However, in the field of education, foreigners helped their development. They look forward to working in their chosen fields. There is no shortage of workers and labourers in any industry.
The answer is simple, it’s simple and it’s practical. Cambodia’s welcoming attitude towards foreigners is a selling point. That is why foreigners from many countries choose to Invest in Cambodia. The foreign population is now approximately 150,000 and will continue to grow over the next few years.
Residential properties are cheaper, costs are lower. How easy it is to open a business and own it. The government encourages foreign investment. Key laws have been enacted to benefit foreigners who invest in the country. These are the reasons why Cambodia is the best country in Asia for foreign investment.
In just a few years, the country has moved from a poor country to a middle-income economy. The government supports development and the country is ready for change. With such an economic outlook, it is not surprising that Cambodia’s economy is booming.