KINGDOM OF CAMBODIA NATION RELIGION KING Cambodia Constructors
KINGDOM OF CAMBODIA NATION RELIGION KING Cambodia Constructors Association ASEAN Constructors Federation Cambodia Country Report 47 th ACF Council Meeting 15 th March 2019 Siem Reap, Cambodia. Present by Mr. Charles Vann, representative of CCA Chairman Neak Oknha Pung Keav Se
Presentation Outline I. Macro Economy Overview II. Construction Situation III. Construction Materials Cost and Labor Wage. IV. Investment Opportunities in Cambodia. V. Some New Urban Development Projects In 2019.
I. Macro Economic Overview Kingdom of Cambodia Land Area 181, 035 Sq. km Population 16. 28 Millions (2018) Population Growth 1. 54% (2017) - 1. 50% (2018) Estimate Birth Rate 24. 4% births/1000 population Death Rate 7. 78% deaths/1000 population Urban Population 3. 53 Millions Annual Rate of Urbanization 21. 7%
Economic Growth GDP % Growth 7. 3% (2018) 7. 1% (2019) Prediction GDP USD 24. 61 Billions (2018) USD 27. 22 Billions (2019) Prediction GDP Per Capita USD 1, 563 (2018) USD 1, 706 (2019) Prediction
Economy of Cambodia Construction 4 Main Industries That Support Cambodia Economy Tourism Industry (Textile) Agriculture
Trading q IMPORT COST ▪ USD 13. 02 Billions (2017) & USD 13. 77 Billions (2018) q IMPORT GOODS ▪ Petroleum, Cigarettes, Gold, Machinery, Construction Materials, Motor Vehicles, Pharmaceutical Products, and Raw Materials for Textile, etc. q ▪MAIN IMPORT China, United PARTNERS States, Thailand, Vietnam, Hong Kong, Taiwan, Republic of Korea, Singapore, Indonesia, Japan, & Malaysia, and many countries of Europe. etc. q EXPORT COST ▪ 10. 77 Billions USD (2017) & 11. 21 Billions (2018) q EXPORT GOODS ▪ Cloths, Timber, Rubber, Rice, Fish, Tobacco, Footwear, Corn, Vegetables, Cashews, Tapioca and Silk, etc. q MAIN EXPORT PARTNERS ▪ United States, Hong Kong, Singapore, Thailand, China, Japan, Vietnam, and many countries of Europe. etc.
Government Strategy Rectangle 4 – Inclusive and sustainable development: 1). Promotion of agricultural and rural development; 2). Strengthening sustainable management of natural and cultural resources; 3). Strengthening Urban Planning and Management 4). Ensuring environment sustainability and readiness for climate change.
7 Locations of Special Economic Zones - Phnom Penh - Sihanouk ville - Kompot - Svay Rieng - Kompong Speu - Bonteay Mean Chey - Koh Kong
I. Construction Situation Graphic of Construction Investment Cost in Cambodia from 2005 – 2018 8000 6 799 7000 Cost in Million USD 6000 5 755 5 579 5000 4000 3 212 3 338 3 192 2 773 3000 2 109 1 989 2000 2 507 1 734 1 192 1000 857 840 9 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Estimation Construction Investment cost and project number from 2010 – 2018 YEARS Number of Project Total Area Building ( m 2 ) Estimation Cost ( Million USD ) 2010 2, 149 3, 287, 468 840 Compared with 2009, Decreased by 58% 2011 2, 129 5, 257, 585 1, 734 Compared with 2010, increased by 106% 2012 1, 694 6, 528, 452 2, 109 Compared with 2011, Increased by 72% 2013 1641 7, 596, 151 2, 773 Compared with 2012, Increased by 31, 45% 2014 1960 6, 460, 148 2, 507 Compared with 2013, Decreased by 9. 58% 2015 2, 305 7, 686, 112 3, 338 Compared with 2014, Increased by 33. 14% 2016 2, 635 12, 158, 268 5, 579 Compared with 2015, Increased by 68% 2017 3, 418 11, 381, 883 6, 799 Compared with 2016, increased by 21. 84% 2018 3, 290 12, 378, 119 5, 755 Compared with 2017, Decreased by 15. 38% Percentage of Estimated Cost Comparison (%)
Foreign projects and estimation investment cost from 2000 – 2018 12 months 2018 Total Area M 2 Number of Projects Total Area Sq. m Estimated Cost ( USD ) N. of Projects China 148 7, 931, 435 2, 179, 648, 479 20 1, 019, 155 92, 945, 110 Korea 50 3, 763, 075 1, 644, 006, 537 1 7, 951 3, 975, 500 Japan 44 751, 896 281, 906, 071 6 54, 628 35, 434, 950 Thailand 33 554, 887 246, 661, 836 5 136, 209 77, 307, 930 Taiwan 18 577, 058 187, 537, 754 7 199, 146 82, 832, 400 Singapore 11 421, 450 161, 872, 580 1 10, 149 3, 044, 700 UK 11 504, 054 149, 155, 699 1 23, 160 8, 106, 000 Malaysia 19 273, 203 110, 228, 701 0 0 0 Russia 2 125, 326 51, 958, 216 0 0 0 Canada 4 161, 663 47, 378, 740 0 LAO PDR 1 75, 742 36, 356, 160 0 Vietnam 9 115, 868 35, 464, 602 0 0 0 Indonesia 1 62, 058 34, 131, 900 0 France 6 46, 264 18, 485, 290 1 904 316, 400 India 3 39, 589 17, 769, 050 1 1, 785 892, 500 USA 7 49, 817 11, 384, 726 0 0 0 Netherland 1 14, 596 9, 487, 400 0 Norway 1 11, 730 7, 741, 800 Belgium 2 22, 514 7, 518, 200 0 Philippines 1 11, 861 5, 930, 500 Australia 2 8, 249 4, 311, 600 0 374 15, 522, 335 5, 248, 935, 841 45 1, 476, 678 318, 527, 790 Country TOTAL Est. Cost USD
Construction Companies Registered from 2000 – February 2019 Type of Operation ( Still Valid ) Design Constructor Total Number of Licenses Registered Companies Still Valid Cambodia 1584 602 24 578 China 342 226 11 215 Korea Vietnam Japan Thailand Malaysia Singapore USA 160 60 53 42 33 18 11 45 26 34 14 12 06 02 03 03 04 01 02 01 01 42 France 11 05 03 02 UK 06 02 0 02 Indonesia 05 02 01 01 Canada 02 01 0 01 India 02 02 0 02 Australia 02 02 0 02 New Zealand 01 - 0 0 Norway 01 - 0 0 Myanmar 01 - 0 0 Germany 01 01 01 0 Spain 01 - 0 0 Pakistan 01 - 0 0 Russia Phillipine 01 01 01 0 01 2339 983 55 928 Countries TOTAL 23 30 13 10 05 01
The Construction Companies Registered in 2018 2%2% 36% 60% Local Constructor - 200 Foreign Constructor - 121 No Countries Amon g 1 Cambodia 207 2 China 79 3 Korean 12 4 Japan 11 5 Vietnam 08 6 Thailand 06 7 Malaysia 05 8 Singapore 02 9 USA 01 10 France 01 11 Australia 01 12 Germany 01 Total 334 Compare with 2017 (299 Companies), Increased 35 companies (+11. 70%)
Building Type Development Investment Estimation Cost of Construction Type 2% Housing 1. 8 thousand million USD 20% 35% Industry Building 475. 14 million USD Comercial Building 1. 77 thousand million USD 34% Hotel. Etc. . . 1. 06 thousand million USD 9% Public Service Building 75. 7 million USD High Rise Building Type High Building Among 5 – 9 floors 661 10 – 19 floors 315 20 – 29 floors 72 30 - 39 floors 34 40 floors up 18 Total 1100
III. CONSTRUCTION MATERIALS COST AND LABOR WAGE. CONSTRUCTION MATERIALS COST Materials Unit Price (USD) Portland Cement Ton 79 - 98 Reinforcement Bar Ton 625 – 690 Thailand, China, Italy ( Vietnam ), Local Aggregate m 3 11 - 12. 5 Local Sand m 3 10 - 11. 5 Local 100 Pc 0. 38 - 0. 51 Local Roof Clay Tile Pc 0. 47 - 2. 8 Thailand, Vietnam, Local Timber m 3 340 - 380 Local Box/m 2 7 - 14. 60 Thailand, China, Vietnam, Italy, Indonesia, Malaysia, Spain, and Local Bag 6 - 20 Thailand, Vietnam, Local Clay Brick Floor Tile Mastic under painting Produced in Thailand, China, Vietnam, Local
Materials Price (USD) Produced in 25 Liters/Tank 16. 5 – 136 Thailand, Japan, France, Korea, Norway, Vietnam, Malaysia, Local Sheet 10. 5 - 38. 5 Thailand, China, Vietnam, Local Grade 20 M 3 67 Local Cement Grade 25 M 3 69 Local Cement Grade 30 M 3 73 Local Cement Grade 40 M 3 78 Local Cement Diesel Litter 0. 95 Sokimex, Caltex, Tela. Total, PTT, SVM Petroleum Litter 0. 95 - 0. 97 Sokimex, Caltex, Tela. Total, PTT, SVM Emulsion Paint Plywood Unit Ready Mix Concrete
Construction Workers Situation Cambodia Construction sector need the workers around 250, 000 to 260, 000 per day. Only the Phnom Penh capital city attract 130, 000 per day. Salary Non-Skilled worker Skilled Worker Engineer, Architect 260 – 300 USD 375 – 560 USD 400 – 2, 500 USD Ø Labor Working Hours : • • Ø Full-time, 48 hours a week. Holidays work must be paid twice of the daily rate. Female employees who gave birth are entitled to receive half of their salary for a period of 90 days.
IV. INVESTMENT OPPORTUNITIES IN CAMBODIA Why Invest in Cambodia? § Open economy § Sound macroeconomic environment § Competitive investment incentives § One stop service § Competitive labor force § Strategic location § Market access and Preferential trading status
Investment Incentives and Guarantee v. Investment Guarantee 1. No discrimination 2. No nationalization 3. No requirements of local equity participation 4. No price controls on products or services 5. No restriction on foreign exchanges 6. No capital control.
v. Investment Incentive § Permission for long-term lease up to 50 years. § Exemption of import duty such as production materials & equipment, construction materials, and production input. § Exemption of export duty. § VAT shall be charged with zero percent (0%) for each import. § Exemption of tax on profit up to 9 years. § Permanent visa for families and investors. § Free Hold Strata title of Condominium (Except Ground Floor) for Foreigner § Free Hold Land Certificate for • Nationalizations • Join-Venture between 51% Cambodian share owner
SOME DEVELOPMENT PROJECTS IN 2019
New Phnom Penh International Airport - Location: Kandal Province - Land Area: 2, 600 hectares - Developer: Cambodia Airport Investment Co. , Ltd - Construction Area: 700 hectares - Project Cost: US$1. 5 billion
OTK Royal One - Location: Phnom Penh City - Land Area: 4, 000 square metres (68 -storey) - Project Cost: USD 260 million - Project Period: Feburary, 2019 – 2021 (Predict) - Developer: the Royal Group - Constructor: Huashi Group (Chinese construction company) - Facilities: condominiums, office building, comprise several floors of underground parking with shopping centres on the second and third floors as signature elements.
The Peak - Location: Phnom Penh City - Land Area: 12670 Sqm (approximate) - Storey: 55 -stories - Project Period: 2018 – 2020 (Estimate) - Developer: OXley Gem (Cambodia) Co Ltd and Worldbridge Land (Cambodia) Co. , Ltd - Facilities: residences, shops, restaurants, offices, and hotel. .
Chip Mong Mixed-Use Developme - Location: Phnom Penh City - Land Area: 7, 998 sqm - Construction Area: 102, 810 sqm (45 stories) - Project Cost: US$150 million - Project Period: January, 2019 – 2022. - Developer: Chip Mong Group - Constructor: Chip Mong Group - Facilities: modern offices, a cinema, sky bar, 5 -storey shopping mall, and most notable the Fairfield by Marriott Hotel Phnom Penh
Chip Mong MEGA MALL - Location: Phnom Penh City - Land Area: 160, 000 sqm - Project Cost: US$252 million - Project Period: August, 2019 – 2021. - Developer: Chip Mong Group - Constructor: Chip Mong Group - Facilities: Shopping Center
Dara Sakor Seashore - Location : Koh Kong Province Resort - Land Area : 36, 000 hectares. - Project Cost : US$500 million - Developer : Union Development Group Co. , Ltd. - Facilities : hotel, business centers, bungalows, villas, resort and parks.
Thank You !
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