Cambodia Country OutlookAsia Pacific Business Outlook Conference 2015

U.S. Commercial Service, Thailand

Cambodia at a Glance

Location: Mainland Southeast Asia bordered with Thailand, Vietnam and Lao PDR

Land area: 181,035 sq. km. (69,900 sq. mi.); about the size of Missouri

Population: About 14.67 million

Religion: Buddhist

Language: Khmer

Climate: Tropical monsoon

Political Overview

Government type: Multiparty democracy under a constitutional monarchy

King: Preah Norodom Sihamoni as head of state

Prime Minister: Hun Sen

Main political parties: CPP (ruling party) and CNRP (opposition party)

National and sub-national election every 5 years

Next national election in 2018

Economic Overview

GDP per capita: $ 1,130 (2014 estimate)

Real GDP growth rate: Approx. 7% (2014 estimate)

Investment value in 2014: USD 408.75 million

42% are industry investment of which half are

garment factory

Dollarized economy

2014 average exchange rate: 4050 Riel/USD

Main drivers of exports are garment products and rice

33% of total exports, mainly garment, are to the U.S.

(2013 figure)

Agriculture 29.70%

Industry 25.31%

Services 39.21%

GDP by Sector

Best Prospect of Doing Business in Cambodia

Agribusiness and Food Processing

Education

Tourism Infrastructure and Resorts

Construction

Cambodian Market: Opportunities

Pro-business, pro-growth policy

Low labor & business costs

Abundant natural resources, including oil & gas

Liberal policy towards foreign worker inflow

Investors can set up 100% foreign-owned investment projects

Largely dollarized economy & absence of capital & exchange controls

Strategic location in an increasingly integrated and connected Greater

Mekong Sub-region and ASEAN

Cambodian Market: Challenges

Corruption

Inefficient government bureaucracy

Limited pool of skilled workforce

Inadequate transport & communications infrastructure

Undeveloped financial & banking system

Ineffective legal system

Lao PDR Country OutlookAsia Pacific Business Outlook Conference 2015

U.S. Commercial Service, Thailand

Lao PDR at a Glance

Location: Mainland Southeast Asia bordered with

Thailand, China, Burma, Vietnam and Cambodia

Land area: 236,800 sq. km.

Population: About 6.66 million

Main cities: Vientiane (capital), Savannakhet, and Luang

Prabang

Language: Lao and others

Climate: Tropical monsoon

Lao Political Overview

Government type: One-party rule by the Lao People’s Revolutionary

Party (LPRP)

Head of State: Lt. Gen. Choummali Saignason, the President

Head of government: Thongsing Thammavong, Prime Minister

National government: The LPRP dominates the government and the

bureaucracy

Next national election: April 2016

Legal system: Civil Law system similar in form to the French system

Lao Economic Overview

GDP per capita: $ 3,100 (2013 estimate)

Real GDP growth rate: Approx. 8.3% (2013)

Main Industry: mining (copper, tin, gold, gypsum),

timber, electric power, agricultural processing,

rubber, construction, garment, cement, and

tourism,

Labor force by occupation: agriculture 73.1%,

industry 6.1%

Agriculture26%

Industry34%

Services40%

GDP by Sector

U.S. and Lao Trade Relations

Import

Laos was the United States’ 151st largest source of goods import in 2013

U.S. goods imports from Laos totaled $ 31 million in 2013

Export

Laos was the United States 183rd largest export market in 2013

U.S goods exports to Laos in 2013 were $ 25 million

The top export categories were: Precious Stones (diamonds and platinum), Machinery, Vehicles, Other base metals, and Optic al Medical instrument

U.S. exports of agricultural products to Laos totaled $ 2 million in 2013

Lao Market- Opportunities & Challenges

Advantages:

Political stability

Low costs of land, labor & energy

Plentiful land & water resources

Abundant mineral resources

Challenges:

Small market, with low purchasing power

Undeveloped basic infrastructures & logistics, scarce skilled labor

Unstable currency, difficult for investment plan

Protective regulation, rather than investment promotion oriented

Thank You

U.S. Commercial Service Thailandwww.export.gov/thailand/www.export.gov/ASEAN

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American Chamber of Commerce in Lao PDRhttp://amchamlao.com/

American Chamber of Commerce in Cambodia

http://amchamcambodia.net/