Veng's infectious sense of humour and optimistic approach will come in handy as he and his colleagues try to dispel the gloomy image of their country as a war-torn backwater and start the serious business of attracting investors. "We don't want to give you propaganda," says Veng. "Come and see for yourself."
Veng and Sok Chenda Sophea, the secretary general of the Council for the Development of Cambodia (CDC), were part of a six-member delegation in Hong Kong recently to woo potential investors. Their message is simple: Cambodia is out of convalescence and is fast becoming one of Asia's most promising emerging markets. They say the economy has stabilised, with inflation dropping to 9% from 180% in 1992.
"Our mission is to show the world that Cambodia, with its rich natural endowment and strategic location, is a country of opportunities," Veng says. "Our government has made tremendous efforts in terms of economic reforms and legislation to provide a favourable environment for both tourism and investments."
Veng and Sok are realistic about their endeavour. They readily admit Cambodia is not yet an investor's paradise, that it has serious gaps in infrastructure. But this problem can be overcome, they insist, starting with a massive program to build power plants, upgrade and expand Phnom Penh, Siem Reap and Sihanoukville airports and the ports in Phnom Penh and Sihanoukville, and to build a series of roads criss-crossing the county, including the Phnom Penh-Ho Chi Minh Road. All this by 2003.
Next on the list is an upgrading of the country's human resources. "We are still far behind," says Sok, "so we are putting a lot of effort into schools and training." He hopes that with tourism as a major driver of the economy, a hotel will offer its services to train staff. And while the workforce lacks sophistication, Sok points out that this means obvious benefits for crisis-weary investors: Workers come cheaper than in many surrounding countries.
On the upside, he expects Cambodia's admission to the Association of Southeast Asian Nations in April this year will be followed by membership in the World Trade Organisation, implementation of the International Accounting Standard and the establishment of the Stock Exchange of Cambodia. Again, all by 2003. He says the country's strategic location to serve its Mekong 6 partners - China's Yunnan province, Burma, Thailand, Laos and Vietnam - should not be underestimated.
But the biggest pull for investors is the attractive package of incentives and the development council's fast-track approval process. Incentives include:
"Our goal is to provide Cambodia with a favourable environment for making good business and investments," says Sok. He says investment opportunities exist primarily in labour-intensive sectors such as manufacturing, light industry, electronics, agriculture and agro-industries, tourism and infrastructure.
Sok says the Cambodian Investment Board under the CDC is the one-stop shop for investors to obtain official permits, like company incorporation licences, visas and work permits. He says the board must process all applications within 45 days, but the average approval time is now 30 days.
KEY INDICATORS
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Government Constitutional Monarchy
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Land Area 81,035 sq km
Population 1.5 million
Average GDP Growth 4.8% per annum
GDP Per Capita US$300
Inflation Rate 9%
Exchange Rate US$1:3,800 riels
Source: CDC
For investment inquiries contact:
The Council for the Development of Cambodia (CDC)
Government Palace
Quai Sisowath, Wat Phnom
Phnom Penh, Cambodia
Phone: (855) 23-981 153 or 23-981 156
Fax: (855) 23-428 953 or 428 954 or 361 516
E-mail: CDC.CIB@bigpond.com.kh