These are the questions that you may answer yourself prior walking into Cambodia for seeking opportunities of foreign direct investment (FDI). Cambodia may unlike other countries since the government of Cambodia gives fair opportunity either to Cambodians or foreigners. However, you will need to prepare yourself ready by respecting to mention below;
1) Do you have an existing company in Cambodia?
2) Does your company have experience in the field of your interest? If not, do you have a qualified contracted EPC in place?
3) Can your company issue to the Govt of Cambodia your letter of Interest or Intent (LOI)?
4) Does your company have sufficient capital for investment? Can you provide proof of fund (POF) or Bank Confirmation Letter (BCL)?
5) Can your company appoint a Cambodian local representative (mandate) or company to carry out discussion between local authorities and state government regarding your case, if your company doesn’t exist in Cambodia territory?
6) Does your company have land property for development in place?
7) Did you read about restricting businesses that foreigners can’t do in Cambodia?
8) Does your company have latest update or version of your company profile or Company Information Sheet (CIS) that can provide a copy for the Govt of Cambodia to study?
9) If you are looking to invest in the field of piped water supply, did you know the procedure issued by MISTI? Years that you can obtain a license and permit to operate as an independent water operator?
10) If you are looking to invest in solar and waste energy, did you know the procedure issued by the Authority of Cambodia and MISTI?
- Years that you can build-own-operate?
- Tariff (USD/KWh): should be below $0.076, if wishes to sell to EDC. Higher Tariff can be sold directly to subscribers or to other industrial zones with a consent buyers and sellers.
- Is the land for construction about 10 kilometers away from the power sub-station?
- If this project is going to get a new target area where the Govt has no power sub-station whether the Company is keen to invest in substation creation?
11) Investor/developer has to commit to paying for the license and land purchase since the Govt of Cambodia can’t provide concession land in accordance with your investment subjects. Beside direct payment to proceed, you might need to pay extra fees for speeding up the services, will you agree?
The amount can be divided in two ways; official and unofficial. Official is the amount to pay legally according to the law states while the unofficial is the amount which we are willing to pay according to negotiation with the responsible persons. Unofficial payment is to speed up the case faster otherwise, it will be unsure when the case can happen.
12) Do you know that your registered company in Cambodia has to have a local bank account with one of the commercial banks based in Cambodia?
13) Do you know abou at least 25% of investment capital will be remitted into his or company bank account in Cambodia within 90 days once the application gets approved?
14) Do you know about foreign direct investment policy in Cambodia? Qualified investment project (QIP), Government investment incentives and investment guarantee?