1. Council for the Development of Cambodia ASEAN AWARENESS FORUM II By SOK Chenda Sophea Minister attached to the Prime Minister Secretary General of the Council for the Development of Cambodia 30 th September 2015 Milano, Palazzo Turati

2. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Cambodia within ASEAN within the Mekong Region

3. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Key Indicators Low & Manageable Inflation Population & Labor Force  Population: 15 Million  Literacy: 92.7% (15-24 years old)  Young and dynamic labor force: Median age 24 years old  Population growth rate : 1.54% GDP Growth (2004-2015) Stable Exchange Rate (USD-Riel) GDP Per Capita (2004-2015) USD Land area : 181,035 sq.km. Lao PDR

4. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Council for the Development of Cambodia-CDC H.E. Mr. Keat Chhon Permanent Deputy Prime Minister 1 st Vice Chairman Samdech Akka Moha Sena Padei Techo HUN SEN Prime Minister of the Kingdom of Cambodia Chairman H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General H.E. Mr. Sun Chanthol Senior Minister, Minister of Commerce Vice Chairman SEZ FDI ODA CAMBODIAN SEZ BOARD H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General CAMBODIAN INVESTMENT BOARD H.E. Mr. Chhieng Yanara Minister attached to the Prime Minister Secretary General CAMBODIAN REHAB. & DEV. BOARD

5. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Committed Investments (by country) Year2011201220132014Jan-Jun 2015 Total$5.7 Billion$2.9 Billion$4.9 Billion$3.9 Billion$3.3 Billion RankCountry% % % % % 1Cambodia41.24Cambodia42.08Cambodia66.80Cambodia64.00Cambodia88.63 2China30.55China20.69China15.68China24.44China7.65 3Vietnam11.99Korea9.89Vietnam6.10Malaysia2.18Vietnam0.86 4U.K4.30Japan9.15Thailand4.37Japan1.72Japan0.77 5Malaysia4.20Malaysia6.04Korea1.76Korea1.66UK0.54 6Korea2.91Thailand4.53Japan1.59Vietnam1.26Malaysia0.53 7U.S.A2.47Vietnam2.89Malaysia1.04UK1.13Thailand0.52 8Japan1.15Singapore2.59Singapore1.03Singapore0.89Canada0.27 9Australia0.43U.K0.51UK0.43Thailand0.88Korea0.13 10Singapore0.28U.S.A0.42France0.27Australia0.51Singapore0.06 11Others0.48Others1.21Others0.94Others1.36Others0.04

6. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Committed Investments (by sector) Total5,763.22,965.64,962.33,933.43,315.8 Investment Capital (2011- June 2015) Total of USD 20.94 billion

7. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Investment Opportunities in Cambodia

8. Council for the Development of Cambodia www.cambodiainvestment.gov.kh 1) Production, Processing and Commercialization of:  Rice, Corn, Cassava, Sugarcane, Rubber, Cashew nut, Pepper and others 2) Livestock Farming and Aquaculture  Animal breeding  Animal feed production  Freshwater and marine aquaculture  Processing and trading TypeCultivated Area (2013)Yield (2013)Cult. Area (2018)Yield (2018) Rubber328,771 ha (P. estate17%, ECL 41%, smallholder 42%) (Mature: 78,493ha) 85,244 tons>420,000 ha400,000 tons Paddy3,052,420 ha9,389,961 tons3,34 million ha10,85 million tons Cassava377,239 ha7,933,381 tonsN/A Corn180,327 ha848,450 tonsN/A Agro-business

9. Council for the Development of Cambodia www.cambodiainvestment.gov.kh  World Heritage Monuments  Open Sky Policy to Siem Reap  Natural beauty - Beach - Islands  Ability to attract “add-on” trips Tourism Angkor Wat Temple World Heritage Site - 1992 Mekong Dolphins in Kartie Province Song Saa Private Island

10. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Labor Intensive Industries, processing and manufacturing  Competitive labor cost  Tax incentives  Market access  ASEAN Economic Community 2015 10

11. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Source: Inter-censal Population Survey 2013 Age Pyramid of Cambodian Population

12. Council for the Development of Cambodia www.cambodiainvestment.gov.kh Industrial Development Policy 2015-2025

13. Council for the Development of Cambodia www.cambodiainvestment.gov.kh  To provide policy framework and specific mechanism to develop a competitive industrial sector in Cambodia and to achieve its full integration into regional and global value chain.  To capture regional trends and changes in regional architecture (AEC, RCEP/TPP, China+1 and Thailand+1).  To promote a platform for growth focusing on economic diversification, strengthening national competitiveness, and enhancing productivity. Industrial Development Policy (IDP) 2015-2025

14. Role of the Council for the Development of Cambodia (CDC)

15. Role of the Council for the Development of Cambodia in the implementation of the Industrial Development Policy 2015 - 2025 (IDP) The Council for Development of Cambodia is fully mandated and provided with essential functions in terms of policy decision-making, designing and implementing plans, as well as addressing challenges in the industrial sector with the aim at transforming this institution into an effective mechanism to lead, coordinate and push for the implementation of the IDP.

16. Priority Setting

17. Priorities Agro- Industry Development SMEs Development Skill Training and HR Development Transport and Logistics Development

18. Priority Setting “It is not a coincidence, but it is based on the current socio-economic reality, priority of the Royal Government, and ability to quickly generate fruitful results for the people both in rural and urban areas” - H.E. KEAT CHHON, Deputy Prime Minister (Standing), First Vice Chairman of the CDC, during the meeting on Skill Training and HR Development on 13 th August 2015.

19. Agro-Industry Development Current Situation Weak export capacity with exports being dominated by raw materials and semi-finished products. Limited investment and value addition. Constraints in production, infrastructure, technology, financing and markets, and regulations. Policies First Rectangle of the Rectangular Strategy Phase III: Promotion of Agriculture Sector National Strategic Development Plan 2014-2018 Strategic Development Plan of the Ministry of Agriculture, Forestry, and Fisheries 2014-2018 IDP Production of agro-industry for export and domestic markets (promote the export of processed agricultural products to reach 12% of all exports by 2025) Other relevant strategies, policies, and action plans Importance 65% of the population employed in agriculture. Large contribution towards economic growth, and reduction of poverty and income gap between people in urban and rural areas. Comparative advantage in agriculture, diversification of crop production. Preferential market access (AEC, RCEP, GSP/MFN, EBA)

20. Sector1962199820082013201520202025 Agriculture49%44.5%32.8%31.6%29.0%25%23% Industry19%16.7%22.4%24.1%26.2%28%30% - Manufacturing-12.7%15.3%15.5%16.0%18%20% Service32%34.8%38.8%38.5%39.4%40% Taxes on products less subsidies0%4%6%5.8%5.4%7% Distribution of GDP by Sector

21. Share of Export Products Sector199820082013201520202025 Export of processed agricultural products10% 7.9%8%10%12% Manufacturing - Garment and Footwear80%70%77%60%55%50% - Non-garment and footwear0.1%0.5%1%5%10%15%

22. Council for the Development of Cambodia www.cambodiainvestment.gov.kh. Phnom Penh The Philippines Singapore Indonesia Myanmar Southern China Manila Bangkok Kunming Yangon Brunei Jakarta Begawan Hanoi Laos o Vientiane CAMBODIA Malaysia Kuala Lumpur Thailand Vietnam 1h:30 in average Strategic Location

23. Council for the Development of Cambodia www.cambodiainvestment.gov.kh MFN/GSP Market Access Australia Austria Belarus Belgium Bulgaria Canada China Czech Republic Denmark Finland Poland Portugal ROK Russian Federation Slovakia Spain Sweden Switzerland UK USA EBA (everything but arms initiative for LDCs) France Germany Hungary Ireland Italy N-Korea Luxemburg Japan Netherlands New Zealand Norway … and ASEAN Economic Community (AEC)

24. Council for the Development of Cambodia www.cambodiainvestment.gov.kh THANK YOU!