Page 15 - ELITE PLUS MAGAZINE Vol 3

An event promoting Thai-Cambodian investment in Phnom Penhin. Forty countries have opened national banks in Cambodia. Bangkok Bank reopened its branch in Phnom Penh in August.“Bangkok Bank made the right move,” said Ms Jiranun. “It’s the right time to invest in Cambodia, and it’s not too late for Thai investors to come.”The country is now buoyed by complementary economic factors. The inflation rate is below 5%, growth has hovered around 8% over the past decade and is expected to stay around 7 to 7.5%.Recent elections have helped stabilize the country. The ruling party won a majority of seats and the opposition party returned to the assembly. The country is gearing towards reforms, perhaps following Prime Minister Hun Sen’s realization that without real reform the ruling Cambodian People’s Party might notbe able to win the young vote in the next election. Cambodia is a country with a young, vibrant workforce, with almost 70% of the population under 30.Infrastructure is also improving, and laws related to investment are evolving. Soon the Customs Department will require businesses to use the banking system for large transactions to help the Customs Department collect corporate income tax.The minister counsellor compares Cambodia at the moment to Thailand 15 years ago. “The markets are so similar. Thai investors have previous expertise that will be useful in the Cambodian market. There are gaps in the market and local consumers still do not know much about brands.”Thai investors can sell products to local consumers and to the large expat communities in the major cities. Citieswith much potential include Siem Reap, with lucrative tourism and service industry opportunities; Sihanoukville, a seaport with stunning beaches and offshore oil and gas reserves; and the capital.Many sectors have room for Thai investment such as foods, consumer goods, cosmetic products and agricultural products. Another industry with much potential is the energy sector, according to Ms Jiranun.Although Cambodia is rich in potential, Thai and foreign investors should bear a few things in mind.“It’s better for foreign investors to come here to take care of business first and make sure the operation is up and running,” said Mr Supachai.Cambodia’s trade law does not require foreign investors to have local partners to open shops or companies, allowing foreigners to own 100%Elite+ 13