Cambodia has usually been under the radar for investors looking to invest in South East Asia because people have historically flocked to Thailand, Vietnam, Philippines and Indonesia. But Cambodia has started to see significant investment in the past couple of years and this is for a few reasons:
- Investment occurs in USD which allows people more freedom and low risk of investment
- Cambodia is strongy linked with China. The result is alot of tax benefits, special economic zones (SEZ’s) etc.
- The country has grown rate of 10% in its GDP which is more than any country in the region. This has resulted in alot of companies moving to Cambodia with 80 Fortune 500 having already invested in the country.
- The country does not currently have a capital gains tax. However, starting in 2022, Cambodia will implement a variable capital gains where you can choose to pay either 20% of the capital gain or 4% of the selling price.
Phnom Penh is the capital and largest city in Cambodia and would be the main city to invest in the country. There is also a very low supply but high demand for goods and services in the country which makes it have a very high potential of growth. The country is also a large part of China’s Belt and Road Initiative which will help elevate its economy on the global scale.