Asia holds the world economic layout’s discourse right

AEC RECP AIIB One Belt and One Road TPP
  • ASEAN Economic Community, AEC
  • Regional Comprehensive Economic Partnership，RCEP
  • Asian Infrastructure Investment Bank ，AIIB
  • The Belt and Road Initiative
  • Trans-Pacific Partnership，TPP
AEC
Total GDP of about US$2.5 trillion (surpassing China and India)
With a population of 625 million, it is the world’s third largest single market after the EU
The first wave of effectiveness: The founding of ASEAN Free Trade Area (AFTA) for 10 countries in 2015
RCEP
With a total GDP of about US$23 trillion, it accounts for 1/3 of the world’s young economic output
It accounts for half the world’s population of 3.5 million.
The aim is to reduce tariffs and non-tariff barriers, establish a free trade agreement for the unified market of 16 countries, enhance China’s foreign trade market, increase the ASEAN’s political and economic influence, and joint forces to contend against the United States.
TPP
To create the world’s largest free trade zone
With a total GDP of about US$28 trillion, it accounts for about 40% of the world’s young economy
It has a total population of 800 million, which is equivalent to the population of 1.5 EU
The first wave of effectiveness: Vietnam tax exemption in 2015
RCEP AEC TPP Global economic layout 柬埔寨、泰國、菲律賓 印尼、緬甸、寮國、新加坡 汶萊、⾺來⻄亞、越南 中國、韓國、印度、⽇本 澳⼤利亞、紐⻄蘭 加拿⼤、墨⻄哥、智利、紐⻄蘭 新加坡、汶萊、⾺來⻄亞、越南 ⽇本、澳⼤利亞、秘魯
The new face of ASEAN! The world’s most substantial foreign direct investment (FDI) region

Countries all over the world compete to leap on the bandwagon of ASEAN (Association of Southeast Asian Nations) growth. In 2013, the ASEAN surpassed China as the world’s most substantial foreign direct investment (FDI) region for the first time. By the end of 2015, the ASEAN Economic Community (AEC) was officially established, with a total population following China and India. It has become the third largest market in the world, more significant than NAFTA and EU combined, with GDP (Gross Domestic Product) pegged at US$2.5 trillion and accounting the world’s sixth largest economy. The AEC is at its high economic growth stage with a commercial growth rate reaching 5~7% per year and has an abundance of young workforce exceeding 50% total population of ASEAN. The results are a gradual increase in middle-class income and a strong purchasing power of young people. No doubt, the British “The Economist” forecasts that ASEAN is full of development potential, expecting to leap as the world’s fourth largest economy by 2030.

Grasping the opportunity to take a broad view of the new world

The US magazine “Fortune” reported that the growth of the BRICS (Brazil, Russia, India,  China, and South Africa), which have thrived for more than 10 years, has slowed down. For the next 10 years, it’s a lookout for the “new emerging markets.” The annual report of ASEAN and AMRO shows that Cambodia’s national economic growth rate is expected to reach 7.1% in 2019, demonstrating a steady economic development achieving the highest growth rate among the fast-growing ASEAN countries.

What are the most prominent trends that affect the economy?
  • 0% The formation of regional economic and trade circle
  • 0% The rise of the red supply chain
  • 0% China’s economic transformation
  • 0% Internet of things (IoT)
  • 0% The Internet has replaced the real economy
  • 0% Brain drain
Cambodia’s economy has maintained an average growth rate of more than 7% in the past six years, rapidly ranking the sixth in the world.

The strategic development planning of the “Belt and Road Initiative” is expected to drive the economic growth in Cambodia. With the completion of the Pan-Asian Railway Network, it will allow Cambodian goods to be delivered to the regional and global markets within the framework of the China-ASEAN Free Trade Area. By then, Cambodia’s economic and housing price is expected to rise. Data shows that within the 15 years from 2015 to 2030, Cambodia City needs at least 800,000 houses, i.e., an annual demand of 50,000 units per year. It shows that Cambodia’s current property market is moving towards a state of long-term short supply.

Investment environment

According to the International Real Estate Agency, the return on investment (ROI) in Cambodia is as high as 6~10%

Cambodia
The inflow of foreign capital is five times in the past two years
GDP has tripled in 10 years
There is an abundant of ASEAN economy talents
The demographic dividend will reach US$18 million by 2030
The average economic growth rate over the past 15 years is 8.5%
China-Cambodia cooperation has attracted strong capital infusion

0% investment gains

China investments in Cambodia account for 40% of total foreign investments

As of October 2017, China has invested US$12.57 billion in Cambodia, accounting for 36.4% of Cambodia’s total foreign investments. It is Cambodia’s largest source of foreign investments, making essential contributions to Cambodia’s economic and social development.

  • Japan helped construct the National Highway 1
  • Japan helped build the Tsubasa Bridge and the National Highway 5
  • The Japan-China joint venture project, Chroy Changvar Bridge has started to operate
  • The Chinese company helped construct the 5th overpass in Phnom Penh
  • China helped construct the first highway in 2016
  • China has built Asia’s largest sugar factory in Cambodia
  • China Shipping (Group) Company has started to dock in Westport (Sihanoukville Port), carrying goods directly to China
  • China is building the National Stadium to help Cambodia to host the 2023 Southeast Asian Games
  • China helped build the National Highway 11 that crosses the Mekong River in 2017
  • Hong Kong Telecom has invested in the telecommunications industry, and the Qingdao Changsheng Group helped lay the Power Plant
  • Inner Mongolia Ordos helped build a coal-fired power plant at Westport (Sihanoukville Port)
  • South Korea helped construct the National Highway 21
  • Asian Development Bank (ADB) has funded US$2.65 billion in developing the infrastructure and other fields
  • Essel World in India constructed the Water & Amusement Park
  • Germany has offered technical support in agriculture, natural resources, and food safety
  • Swiss has assisted Cambodia in technology, finance, and economy
  • France focuses on helping economic development, electricity, and education
  • Total foreign investments in Cambodia exceeded US$30 billion in 2015