Third Meeting of the Asia-Pacific Foreign Direct Investment

Third Meeting of the Asia-Pacific Foreign Direct Investment
(FDI) Network for Least Developed and Landlocked
Developing Countries
Cambodia Case on Ensuring inclusive
and sustainable FDI in the Natural
Resource
By SUON SOPHAL
Deputy Director of Public Relations and Investment Promotion
Council for the Development of Cambodia
Economic Performance
1994-2013
14%
25.00%
12%
20.00%
10%
15.00%
8%
10.00%
6%
z
5.00%
4%
0.00%
2%
0%
GDP
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e
9.20% 6.50% 5.30% 5.70% 5.00% 12.60% 9.20% 7.70% 6.20% 8.60% 10.0% 13.3% 10.8% 10.2% 6.70% 0.10% 5.90% 7.10% 7.30% 7.60%
Inflation 17.90% 3.50%
GDP per
capita
Source: SNEC & MEF
10%
-5.00%
9.20% 13.30% 4.00% -0.80% 0.20% 3.30% 1.20% 3.90% 5.80% 4.70% 5.9% 19.70% -0.60% 4.00% 4.90% 3.00% 4.00%
2004
2005
2006
2007
2008
2009 2010
2011
2012
2013e
402
468
534
623
738
731
909
990
1,080
830
Investments in Cambodia 2008-June 2013
2008
2009
2010
2011
2012
Jun-2013
$11,420,127183
$6,309,435,594
$3,029,497,634
$7,984,908,645
$2,965,537,652
$2,340,937,594
Rank
Country
%
Country
%
Country
%
Country
%
Country
%
Country
%
1
China
39.45
Cambodia
60.81
Korea
35.10
U.K
30.93
Cambodia
42.08 Cambodia
81.55
2
Cambodia
36.73
China
14.93
China
28.73
Cambodia
29.76
China
20.69 China
5.38
3
Korea
10.89
Vietnam
5.58
Cambodia
14.91
China
22.05
Korea
9.89 U.K
3.53
4
USA
5.59
Singapore
4.81
Malaysia
8.53
Vietnam
8.65
Japan
9.15 Korea
2.45
5
Israel
2.63
Russia
3.84
Vietnam
5.23
Malaysia
3.03
Malaysia
6.04 Singapore
2.31
6
Russia
0.92
Thailand
3.53
Portugal
1.66
Korea
2.10
Thailand
4.53 Hong Kong
1.59
7
U.K
0.59
Korea
2.89
Australia
1.65
U.S.A
1.78
Vietnam
2.89 Japan
0.86
8
Austria
0.54
India
1.90
Singapore
1.02
Japan
0.83
Singapore
2.59 Taiwan
0.73
9
Vietnam
0.51
Malaysia
1.19
Denmark
0.97
Australia
0.31
U.K
0.51 Samoa
0.56
10
11
France
0.50
Others
1.28 Others
Japan
0.20
Japan
0.32 Others
0.86
Singapore
1.35 Others
0.20 U.S.A
0.42
Thailand
0.47
0.35 Others
1.21 Others
0.57
Approved Investments by Country/Region
(Outside SEZ 1994- June 2013)
US$ Million
10,000
9,301
9,000
8,000
7,000
6,000
4,381
5,000
3,639
4,000
2,614
3,000
2,000
1,294
1,282
953
878
795
785
1,000
387
Japan
Singapore
Hong Kong
Thailand
Taiwan
Vietnam
USA
Malaysia
EU
Korea
China
0
Approved Investments by Sector
1994 – June 2013
Agriculture
8%
Service
18%
Industry
28%
Tourism
46%
Investment in Natural Resource
As of September 2013,
• there are 54 projects with total investment
capital around US$ 389,479,542, accounted for
2.07% of total investment, has been approved
to undertake the mining exploration and
exploitation.
• Other 12 projects with total investment capital
of US$ 264,283,187, accounted for 0.39% of
total investment, is in Petroleum sector.
6
Availability of Natural Resources
 Oil and Gas


petroleum,
Natural gas
 Land and water
resource to further
develop and increase
the value added in
Agriculture
 Minerals












bauxite,
carbonate rocks,
natural gas,
gold,
Iron,
manganese,
phosphate rock,
salt,
silica,
zircon
Ruby
Sapphire
7
Related laws and regulations
• Preah
Reach
Kram/NS-RKM-1296/36
dated
November 18, 1996 ON ENVIRONMENTAL
PROTECTION
AND
NATURAL
RESOURCE
MANAGEMENT
• Sub-decree No: 72 ANRK.BK dated August 11, 1999
on Environmental Impact Assessment
• Preah Reach Kram NS/RKM/0701/09 dated July 13,
2001 enacted LAW ON MINERAL RESOURCE
MANAGEMENT AND EXPLOITATION
8
Mandate on inclusive and sustainable
FDI in Natural Resource
• Although the management of natural resources has
improved with the strengthening of mineral
resource management, there remain challenges
requiring further efforts and initiatives to ensure
sustainable development.
• Royal Government will continue to take a
comprehensive development approach toward
environmental management in Cambodia, through
Sustainable management of natural resources.
• New ministry will be established to oversee the
development of mining and energy.
9
Policy Action toward sustainable FDI
• Encourage private sector to leverage their capital in
sustainable development by channeling and increasing
private productive investment into key sectors and
industries that contribute to sustainable development;
• Promote the role of private sector to be part of the solution.
• Revise current Investment Law and Taxation Law as well as
the adoption of Special Economic Zones Law with
consideration to include policy actions below into this
endeavor:
1) Mainstream sustainable development into investment
policies.
2) Promote investment in inclusive growth.
3) Promote responsible investments, and
4) Channel investment into green growth and
infrastructure development.
10
Building Partnership for growth
• Continuing to strengthen Cambodia Development
Cooperation Forum, Government-Private Sector Forum,
Consultative Meeting between Government and NGOs, and
Bilateral Consultation mechanisms, with the aim to transform
all these fora into a “Cambodia Development Forum” which
will serve as a unified platform for dialogue between the
Royal Government and all its stakeholders, including
development partners, private sector and NGOs as well as
other relevant stakeholders, to discuss development issues in
the country.
• Related actions would be to work towards synergizing private
investment with ODA and other development finance, and to
build an investment policy framework for sustainable
development, coupled with a public-private sector
partnership action plan.
11