The Council for the Development of Cambodia (CDC), the government’s investment facilitation body, hosted a high-level meeting yesterday to discuss the IPA’s implementation. Led by Deputy Prime Minister Sun Chanthol, the meeting brought together representatives from key ministries including Commerce, Economy and Finance, Land Management, Urban Planning, and Construction, as well as other relevant agencies.

The core objective of the IPA is to create a centralized platform where investors can submit and track their project applications, reducing bureaucratic hurdles and improving efficiency. By connecting the CDC’s technology system with those of other government agencies, the IPA aims to optimize data sharing and expedite the approval process.

Deputy Prime Minister Chanthol emphasized the importance of the IPA in attracting foreign investment and boosting the national economy. He commended the collaborative efforts of all participating ministries and institutions in supporting the government’s digital transformation agenda.

The IPA is aligned with the Cambodian government’s broader strategy to leverage technology for economic development. By simplifying the investment process, the government hopes to create a more attractive business environment and encourage increased foreign direct investment.

Editor’s Opinion:

The editor likely views the IPA initiative as a significant step forward for Cambodia’s investment climate. By streamlining the investment process and reducing bureaucracy, the government is demonstrating its commitment to attracting foreign investment and boosting economic growth.

The emphasis on collaboration between government agencies suggests a coordinated and efficient approach to implementing the IPA.

The post Cambodia Government Aims to Streamline Investment Process with IPA first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The program has already approved special benefits for 63 projects. This latest package focuses on 22 new projects valued at over $2 billion USD, revitalizing Sihanoukville’s investment scene.

Led by HE Dr. Hean Sahip, Secretary of State of the Ministry of Economy and Finance at a recent meeting of the Investment Promotion Working Group streamlined approvals and offered investor support, with representatives from Environment, Health, and Real Estate ministries ensuring a smooth process.

Sihanoukville’s fresh Special Incentive Package, unlocking a staggering $2 billion investment across 22 projects, targets both reviving stalled construction and fostering new growth with projects tackling stalled construction, entirely new ventures across diverse sectors like car tire production and hotels, and expansion for existing businesses.

Open to all nationalities, these mixed-use projects welcome investment ranging from $100,000 to $500 million USD, catering to small, medium, and large enterprises. The program offers incentives for four project categories: rebooting stalled construction, launching new ventures operational in 2024, expanding existing businesses, and supporting current projects.

Benefits to all nationalities, including individuals, legal entities, and businesses of all sizes (micro, small, medium, and large) at no cost.

The working group expressed appreciation for the cooperation of relevant ministries and institutions. They actively encourage domestic and foreign investors to take advantage of this new incentive package by contacting the Sihanoukville investment promotion team.

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The forum served as a platform to connect foreign investors with Cambodia’s growing infrastructure sector. The delegation, which included the Undersecretary of State, presented on the country’s significant progress in various public sectors, including transportation infrastructure, sanitation infrastructure, solid waste and wastewater treatment systems, and the National Logistics Master Plan.

The Royal Government is studying and planning 202 support projects in support of the aforementioned 05 action plans, 12 of which are for air transport development, 67 for waterway-maritime transport and port development, 11 for railway transport development, and 112 for Multi Growth Pole, Economic Corridor, National Integration, and Rural Socio-Economic development. This ambitious plan highlights the Cambodian government’s commitment to enhancing connectivity and fostering economic growth throughout the country.

Beyond infrastructure development, Cambodia is also taking strides towards sustainable waste management. The establishment of a National Committee for Municipal Solid Waste Management, led by the Minister of Environment, signifies a commitment to developing and implementing policies and strategies for converting waste into energy.

This committee will comprise representatives from relevant ministries and non-ministerial bodies, working collaboratively to achieve this goal.

By showcasing its development progress and commitment to sustainable practices, Cambodia aims to attract foreign investors seeking opportunities in a growing and dynamic economy.

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There is still a healthy interest from overseas but regionally there are deals to be had and buyers and investors are paying close attention to geo-political tensions, interest rate cuts, and in the most election-saturated year in the record books, any potential shifts in markets.

Condos do remain of course the most popular property asset for international buyers in Cambodia due to the supply and legality for foreign owners, but the legal Trusts and commercial property opportunities have raised interest too.

So what are some of the key things to consider before putting physical or digital pen to paper for buying such a property in the Kingdom?

Are The Cambodia Property Buyer Profiles Changing?
With the context that there are more Cambodian buyers in the market for a variety of reasons, including better-targeted marketing and builds catering to local tastes, it goes without saying that Cambodians have the right to buy any property in the Kingdom if they have the finances.

In 2022, foreign condo property sales accounted for 65% of all condo sales according to realestate.com.kh – and one & two-bedroom condos were most in demand.

There are also more loan and property mortgage options available to Cambodian passport holders but this will more than likely require collateral such as land. The options for non-Cambodians are far more limited, if available at all.

There are still many desirable condos being developed, in Phnom Penh in particular, and the condo supply is expected to increase significantly by 2025, with mid-tier developments dominating the future supply – so definitely do your research.

The condo supply was projected to reach nearly 80,000 units by 2025 in the capital. Mid-tier condo developments will dominate the supply as property developers target Cambodia’s emerging middle class as well as expatriates residing in the Kingdom and foreigners buying from abroad.

The ambitions of the government should see Cambodia graduate from the Least Developed Country (LDC) status in 2029, and according to the World Bank Country Lending Group guidelines, the lower-middle-income economies have a per capita income between $1,086 and $4,255 and the upper-middle-income economies between $4,256 and $13,205, while high-income economies have a per capita income of $13,206 or more.

Cambodian Property Titles and Ownership

The preferred property title in Cambodia is a Hard Title, which is recognised nationally and provides detailed information about the property and with condos should be a standard feature when being purchased.

There have been efforts to digitise titles and claims due to the number of disputes when it comes to land in particular.

Land and property ownership can be complex for foreign-owned businesses and foreigners in Cambodia to understand – however, foreigners can buy and own property in Cambodia and legally own condos in Cambodia.

For foreigners, as we have regularly reported, restrictions mean they cannot own land outright in Cambodia, but they can own properties such as condominiums under a Strata Title, provided at least 30% of the other properties in the building are owned by Cambodians.

A Condominium Certificate of Title (CTC) will be registered under the foreigner’s name too.

Broadening Out From Condos – Commercial Property Opportunities In Cambodia

At the JCI ASPAC Angkor 2024 panel discussion, Neak Oknha Sear Rithy, Chairman of WorldBridge Group, mentioned that in the property sector, there are major opportunities available for local and foreign investors, such as commercial property like logistics infrastructure, as well as tourism properties, agricultural properties and other infrastructure properties.

Rithy said that the price of land per sqm is as much as USD $10-12,000 in Vietnam in the CBD but it’s more likely to be USD $5,000 in Cambodia. For Industrial or commercial spaces he estimated prices to be approximately USD $100 or less while in neighbouring countries this figure will be around USD $200-300 per sqm.

For warehouses and factories in Cambodia, lease terms typically range from 5-10 years, accommodating long-term industrial activities, but shorter agreements can be arranged to meet specific requirements.

The main types of commercial real estate in Cambodia are:

Office buildings
Retail real estate
Industrial, factories and warehouses
Hotels & guesthouses/lodges
Commercial land

Cautionary Tales – Buy From Trusted Property Developers In Cambodia
The messaging for some time in terms of buying condos in the local Cambodian market, and in particular in the post-pandemic era, is to buy from trusted developers who have a proven track record of delivering quality and on time.

In 2024, several residential housing projects in Phnom Penh and Siem Reap came under scrutiny from government authorities due to potential illegitimate developments.

Buyers were warned to conduct due diligence before committing to property purchase agreements, and the Real Estate Business & Pawnshop Regulator, which operates under the Non-Bank Financial Service Authority (FSA) of the Ministry of Economy and Finance (MEF), issued warnings to two Phnom Penh based real estate development companies for operating without proper licenses.

If there are any doubts, buyers and investors can contact the Real Estate Business & Pawnshop Regulator to check the legality of developers and that the correct real estate development business licensing requirements have been met

The below is a guide if there are any doubts:

Choose a Trusted developer with a record of previous projects
Check the sales license
Check the construction license
It is a positive sign of the market that the regulator is enforcing compliance which it says upholds the integrity of national real estate development regulations, and protects consumers from illegitimate investments.

It is still, as in markets around the globe, the buyer’s responsibility to carry out their diligence and vigilance before investing in new property developments.

Cambodian Cities Continues To Grow

Many Cambodian-based property developers target local and foreign buyers and investors and offer some sort of rental return scheme or Guaranteed Rental Returns (GRR).

This is future rental income that is guaranteed by the developer or management company to the property purchaser for a contracted period of time after the purchase agreement is signed and the ranges can vary as can the duration (for example 2-5 years).

According to the World Bank, Cambodia’s urban population is expected to reach 44 per cent by 2030 and this is compared to 25 per cent from 2020. Urban population growth of 3.07 per cent is expected in 2024 (over 4,5 million people), with a 3.29 per cent annual growth rate for the past 10 years. Realestate.com.kh

The post Five Things To Consider Before Buying Property in Cambodia first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

This request comes after a talk between HE Cham Nimol, Minister of Commerce and AKII President Dr. By Sokbundith on the sidelines of The Opening Ceremony of the Workshop on “Beyond Borders: Bringing Cambodian Products to Global Market through Alibaba.com” on Monday. Dr. Sokbundith also presented a comprehensive outlining various investment-related topics to the Minister.

During their exchange, Dr. Sokbundith  requested the Minister’s support in facilitating product exports for AKII members, a key aspect of economic growth for Cambodian businesses.

The Minister acknowledged Dr. Sokbundith’s dedication and confirmed a follow-up meeting between the MOC and AKII. This working session will delve deeper into strategies to enhance Cambodia’s trade and investment climate.

Established in 2019 to foster collaboration and progress to fully promote the investment to Cambodia, AKII prioritizes three key goals:

• Promoting collaboration: AKII aims to strengthen cooperation among members, investors, and partners for mutual success.
• Supporting development: The association is committed to contributing to Cambodia’s social and economic progress, aligning with government initiatives.
• Attracting investment: AKII actively seeks high-quality, efficient investments from both local and foreign sources to propel Cambodia’s economic growth.

This news signifies a positive step towards stronger collaboration between the Cambodian government and the private sector. The upcoming working meeting is expected to yield concrete strategies for attracting foreign investment and bolstering Cambodia’s economic potential.

The post AKII Seeks MOC’s Support to Boost Cambodia Export and Investment Climate first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

In an exclusive discussed with Estatedia recently Dr. By Sokbundith , a prominent figure and the president of the Association of Khmer International Investors (AKII) , emphasizes preparation as key to participating in this growth. Cambodians eager to contribute should collaborate strategically. Now is the time for local investors and entrepreneurs to join forces, regardless of their resources. Together, they can create a formidable alliance to welcome foreign investors and generate domestic jobs.

Investors should leverage their resources to become integral parts of this national development mission. Building a collaborative community is essential to replicate successes in attracting investment and creating jobs.

This is the vision behind the Association of Khmer International Investors, founded by Dr. By Sokbundith. The association aims to attract and facilitate partnerships between Cambodian and international investors, as well as connect with institutions and development partners.

According to Sokbundith, the association has three main goals. Firstly to promote collaboration by enhance cooperation among members, investors, and partners for mutual success and solidarity. Secondly, to support development by contributing to Cambodia’s social and economic progress, aligned with government policies and lastly to attract investment, promote high-quality, efficient investments from both local and foreign sources to propel Cambodia’s economic growth.

“Our purpose is to unite Cambodian investors,” states Sokbundith. “Together, we can invest collectively and attract foreign partners. We offer membership to students and aspiring entrepreneurs, training them to become CEOs prepared to manage companies for our members, both locally and internationally. This equips them to eventually launch their own ventures.”

Ultimately, the association fosters connections and knowledge-sharing among business leaders and investors. They contribute to Cambodia’s economic success by disseminating government development policies and advocating for the interests of partnerships between members and national and international investors.

Cambodia‘s foreign direct investment (FDI) is projected to surge in 2024, reaching an estimated US$4.25 billion, which translates to roughly 9.0% of the country’s GDP. This optimistic forecast comes amidst a flurry of investment activity in key sectors. As of May, Cambodia have successfully secured a total of 147 investment projects, valued at US$2.7 billion, generating a significant 140,000 jobs.

Considering an investment or real estate project in Cambodia?

AKII is on a development journey, and they’d love to hear from you! If you’re a consultant in these fields or interested in joining the efforts, please contact Dr. By Sokbundith directly at +855 17 41 41 09.

The post Cambodia on the Rise: Young Leaders and the Importance of Collaboration first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The positive outlook extends to international reserves, which are anticipated to climb further to approximately US$22.3 billion, representing around 8.0 months of imports.

The Strategic Budget Plan for 2025-2027 reinforces this optimistic view, predicting sustained FDI growth averaging 8.6% of GDP throughout the period. This confidence stems from Cambodia’s increasingly attractive investment environment, fostered by the “Investment Law of the Kingdom of Cambodia” and a series of supportive policies.

As a consequence, Cambodia is expected to attract high-value investments, particularly in non-garment manufacturing sectors, in the medium term. This will likely contribute to continued growth in international reserves, reaching an average equivalent to seven months of imports.

Prime Minister Hun Manet has consistently prioritized foreign investor engagement to propel the Kingdom’s development. During a recent meeting with the Cambodian community in South Korea, the Prime Minister reaffirmed his commitment to actively lobbying foreign investors to explore business opportunities in Cambodia.

“As of May, we have successfully secured a total of 147 investment projects, valued at US$2.7 billion, generating a significant 140,000 jobs,” he announced.

Furthermore, Prime Minister Hun Manet urged the 45,000 Cambodian migrant workers in South Korea to dedicate themselves to their work and contribute their expertise and skills upon returning home to fuel national development. The Premier also provided an update on his official visit to Seoul from May 15-18 and the Royal Government’s commitment to transforming Cambodia’s industrial sector from light industry towards advanced manufacturing.

The post Cambodia Sees 147 Project Investments Secured in May Fuel Expected Rise in FDI This Year first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The CCIA aims to unite various business chambers, fostering collaboration and growth. This will attract foreign investors from all over the world, contributing to Cambodia’s economic development in line with RGC’s policies.

The hard work of CCIA members has already brought billions in foreign investment to Cambodia. This is a positive development, creating job opportunities and attracting new technologies and skills. These efforts align perfectly with the RGC’s Pentagon Strategy – Phase 1.

Lor Vichet, Vice President of CCCA, spoke after the event, praising the RGC for its proactive approach to business development. He highlighted the government’s creation of trade strategies and a supportive business environment. The Prime Minister’s inauguration of CCIA further emphasizes the government’s commitment to attracting private sector investment for economic growth.

Mr. Vichet added that the event fostered connections between businesses and explored strategies to attract even more foreign direct investment (FDI). The Premier’s participation underscores the RGC’s dedication to becoming a magnet for global investors, a key element in achieving Cambodia’s goal of becoming a middle-income country by 2030 and a high-income country by 2050.

The CCIA was launched in June 2023 with six founding chambers of commerce, including prominent names like the Cambodia Chinese Commerce Association (CCCA), Cambodia Footwear Association (CFA), Cambodia Travel Goods and Leather Association (CTLA), China Sichuan & Chongqing Chamber of Commerce in Cambodia (CYZSH), Malaysian Business Chamber of Cambodia (MBCC) and Singapore Club Cambodia (SCC).

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Affordability and Growth: Cambodia stands out for its relatively affordable properties compared to its neighbors, potentially offering good value for investors. Additionally, the Cambodian economy, fueled by tourism and foreign investment, has been on a steady growth path, which could translate to long-term property value appreciation.

Dollarization and Government Support: Cambodia’s use of the US dollar in many transactions minimizes foreign exchange risks. The Cambodian government is also actively wooing foreign investors by simplifying property ownership structures. The Cambodian government actively encourages foreign investment in real estate by simplifying ownership structures.

Positive Signs: Cambodia’s flourishing tourism industry could lead to a surge in demand for rental properties, while the government’s significant investment in infrastructure projects could improve connectivity and property values in specific areas.

Infrastructure Upgrade: The government’s significant investment in infrastructure projects could improve connectivity and property values in specific areas.

Emerging Market Risk: However, investors must be aware of the inherent risks associated with an emerging market like Cambodia. The global economic climate is unpredictable and could impact the real estate sector. Additionally, Cambodia’s property market is still maturing, and regulations and transparency may not be on par with established markets. Navigating property ownership laws can also be complex, so consulting a lawyer before investing is crucial.

Weighing the Options: Cambodia’s real estate sector presents a potential growth story, but not without its challenges. Carefully consider the pros and cons, your risk tolerance, and investment goals before making a decision.

The post Cambodia Real Estate: Potential and Caution in uncertain times first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The announcement was made by Samdech Moha Borvor Thipadei Hun Manet, Prime Minister of Cambodia, at a get-together with more than 5,000 members of the informal economic unions and the academic staff associations on the occasion of the 138th Anniversary of International Labour Day (May 1), held here at the Chroy Changvar International Convention and Exhibition Centre this morning.

Samdech Thipadei Hun Manet thanked all the Cambodian people, both inside and outside the country, for their messages of support for the Funan Techo Canal Project, which will greatly benefit the Cambodian economy.

Spiritual support is a huge support and the RGC does not need funds from its citizens, said the Premier, adding that even though there is no funding from foreign investors, the RGC had set aside a budget to build the Funan Techo Canal.

Samdech Thipadei Hun Manet also reaffirmed his commitment to continue the mission of Samdech Techo Hun Sen, former Prime Minister, to make the Funan Techo Canal project a reality and guaranteed responsibility if there is any negative impact from the canal.

Funan Techo Canal project is not for the benefit of the “Hun” family, but for the benefit of all Cambodians, stressed the Prime Minister, calling on the exiled opposition leader, Mr. Sam Rainsy, to uphold the national interest, and not to oppose just to oppose.

The Funan Techo Canal Project aims to connect waterways between rivers to the sea of Cambodia, passing through Kandal, Takeo, Kampot, and Kep provinces. The canal construction project is estimated to cost some US$1.7 billion.

China Road and Bridge Corporation (CRBC) has been given the right to build the canal, which is expected to break ground for construction at the end of 2024.

With a total length of 180 kilometres, the canal will connect Prek Takeo of the Mekong River to the Prek Ta Ek and Prek Ta Hing of the Bassac River. It will then proceed to Kep province through Kandal, Takeo and Kampot provinces.

Ministry of Public Works and Transport has recently said that the waterway project to cut down the pressure of heavy road transport. The project would give impetus to internal integration, apart from solidifying and expanding regional as well as international connectivity through transport.

It will help ensure that transport by water, sea and port will be easier, less cumbersome and more efficient.

Cambodian people from all walks of life have fully supported the Funan Techo Canal project, recognising its great benefits to the country’s socio-economic development. AKP

The post Government not to mobilise funds from citizens for Funan Techo canal project first appeared on Estatedia | Economy & Real Estate Media in Cambodia.