cambodia rev.1

8/8/2019 Cambodia Rev.1

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International BusinessInternational BusinessCAMBODIACAMBODIA

Instructor: Dr. Jim McCulloughInstructor: Dr. Jim McCullough

Group 2Group 2 -- EMBAEMBA-- 8A:8A:

L Ch CL Ch CngngTrTrnMnMnh Cnh CngngTrTrnThu HnThu HnhnhNg LongNg Long

VVChiMaiChiMaiTrTrng Thng ThHuyHuynTrangnTrangNguyNguynThnThTuyTuytt


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Most Cambodians are Khmers,Most Cambodians are Khmers,descendants of the Angkor Empire thatdescendants of the Angkor Empire thatextended over much of Southeast Asiaextended over much of Southeast Asiaand reached its zenith between the 10thand reached its zenith between the 10thand 13th centuries.and 13th centuries.

IntroduceIntroduce


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IntroduceIntroduce

Invaded by French in 1863, part of French Indochina in 1887.Invaded by French in 1863, part of French Indochina in 1887. Japanese occupation in World War II.Japanese occupation in World War II. Gained full independence from France in 1953.Gained full independence from France in 1953. In 1975, Khmer Rouge forces captured Phnom Penh and evacuatedIn 1975, Khmer Rouge forces captured Phnom Penh and evacuated

all cities. At least 1.5 million Cambodians died from execution,all cities. At least 1.5 million Cambodians died from execution,forced hardships, starvation during the Khmer Rouge regime of Polforced hardships, starvation during the Khmer Rouge regime of PolPot.Pot.

In 1978, Khmer Rouge forces attacked Vietnam. Vietnam sentIn 1978, Khmer Rouge forces attacked Vietnam. Vietnam sentmilitary to drive the Khmer Rouge into the countryside, and stayedmilitary to drive the Khmer Rouge into the countryside, and stayedthere for 10 years to help Cambodian. Cambodia had almost 13there for 10 years to help Cambodian. Cambodia had almost 13years of civil war.years of civil war.

The 1991 Paris Peace Accords mandated democratic elections and aThe 1991 Paris Peace Accords mandated democratic elections and aceasefire. UNceasefire. UN--sponsored elections in 1993 helped restore a coalitionsponsored elections in 1993 helped restore a coalition

government. Khmer Rouge surrendered in early 1999.government. Khmer Rouge surrendered in early 1999. In 2004, Prince Norodom Sihamoni was selected to succeed hisIn 2004, Prince Norodom Sihamoni was selected to succeed his

father King Norodom Sihanouk. National elections in July 2008 werefather King Norodom Sihanouk. National elections in July 2008 wererelatively peaceful.relatively peaceful.


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IntroduceIntroduce

Location: Southeastern Asia, bordering the Gulf ofLocation: Southeastern Asia, bordering the Gulf ofThailand, between Thailand, Vietnam, and Laos.Thailand, between Thailand, Vietnam, and Laos. Total area: 181,035.00 sq kmTotal area: 181,035.00 sq km Population: 14.49 million (2010 est.)Population: 14.49 million (2010 est.)

Population growth rate: 1.77% (2010 est.)Population growth rate: 1.77% (2010 est.)

Capital City: Phnom Penh (+7 GMT)Capital City: Phnom Penh (+7 GMT) Currency: Cambodian riel (KHR)Currency: Cambodian riel (KHR) (11 Dec.2010 rate:(11 Dec.2010 rate:

1USD = 4,107 KHR. 1USD can be used popularly in1USD = 4,107 KHR. 1USD can be used popularly inCambodia)Cambodia)

Languages: Khmer (official) 95%, French, EnglishLanguages: Khmer (official) 95%, French, English

Calling Code: 855Calling Code: 855 Voltage: 230Voltage: 230 Religions: Buddhist 96.4%, Muslim 2.1%, other 1.3%,Religions: Buddhist 96.4%, Muslim 2.1%, other 1.3%,

unspecified 0.2%unspecified 0.2%


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How to go to Cambodia?How to go to Cambodia?

Air:Air: Fly to the international airports in Phnom Penh or Siem Reap and get aFly to the international airports in Phnom Penh or Siem Reap and get aone month tourist visa for US$20 (business visa US$25). Internationalone month tourist visa for US$20 (business visa US$25). InternationalDeparture tax is US$20.Departure tax is US$20. Domestic Departure tax is US$10 from PhnomDomestic Departure tax is US$10 from PhnomPenh or US$4 from elsewhere.Penh or US$4 from elsewhere. Note:Note: Asian people and stay less than 14Asian people and stay less than 14days will have free visa.days will have free visa.

Land:Land:

Thailand: Two possibilities.Thailand: Two possibilities. PoipetPoipetnearAranya Prathet (Thailand) is thenearAranya Prathet (Thailand) is theentry point for whom to reachentry point for whom to reach Siem ReapSiem Reap and Angkor Wat by road.and Angkor Wat by road. HatHatLekLek (Thailand) near(Thailand) nearKrong Koh RongKrong Koh Rong is the costal entry point to reachis the costal entry point to reachSihanoukvilleSihanoukville. Both offer visa facilities.. Both offer visa facilities.

Vietnam: Two legal entries points plus a much more adventurous one inVietnam: Two legal entries points plus a much more adventurous one inthe north. Crossing at Moc Bairemains with buses between Phnom Penhthe north. Crossing at Moc Bairemains with buses between Phnom Penhand Saigon run by a number of guesthouses for around US$9. Anotherand Saigon run by a number of guesthouses for around US$9. Another

access is possible via Kep in the south. Whatever the crossing, get youraccess is possible via Kep in the south. Whatever the crossing, get yourvisa in advance.visa in advance. Laos: border between Stung Treng Province and Champasak Province inLaos: border between Stung Treng Province and Champasak Province in

South Laos is open. Need a valid visa,but the guards do whatever andSouth Laos is open. Need a valid visa,but the guards do whatever andyou have to pay around US$20you have to pay around US$20--30 to enter.30 to enter.


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Business Culture:Business Culture:

Respect and deference must always be shown to theRespect and deference must always be shown to themost senior person. When meeting a group you will bemost senior person. When meeting a group you will beintroduced to the highest ranking person, and youintroduced to the highest ranking person, and you

should have the most senior of your group greet them.should have the most senior of your group greet them. Handshakes are normal although be careful not to beHandshakes are normal although be careful not to be

too firm as this may be construed as aggressive. If mentoo firm as this may be construed as aggressive. If menare dealing with women they should wait and see if theyare dealing with women they should wait and see if theyextend a hand before doing so. Eye contact should be inextend a hand before doing so. Eye contact should be in

a minimum.a minimum. Avoid touching the childrens head, because for themAvoid touching the childrens head, because for them

that part belong to God.that part belong to God.

Whenever give another anything, you should give byWhenever give another anything, you should give byright hand because the left hand for them is not clean.right hand because the left hand for them is not clean.


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Business Culture:Business Culture:

Treat business cards with respect as the way you handle theTreat business cards with respect as the way you handle thecard is the way you will treat the person. Use the right orcard is the way you will treat the person. Use the right orboth hands when offering or receiving a business card.both hands when offering or receiving a business card.

Cambodians are very indirect communicators. They willCambodians are very indirect communicators. They willconsider the implications of making statements or usingconsider the implications of making statements or usingparticular words.particular words.

If Cambodians disagree with someone they would ratherIf Cambodians disagree with someone they would ratherremain silent than make any comment.remain silent than make any comment.

Cambodians prefer ideas to be brought forward in a gentleCambodians prefer ideas to be brought forward in a gentle

way and to wait for others to respond.way and to wait for others to respond. Punctuality is important. Arriving late shows a lack of respectPunctuality is important. Arriving late shows a lack of respectfor the person with whom you are meeting.for the person with whom you are meeting.

NonNon--verbal behavior is important to be aware of. Smiling inverbal behavior is important to be aware of. Smiling inCambodia is situational and have many meanings: notCambodia is situational and have many meanings: notunderstand what has been said, nervous or irritated.understand what has been said, nervous or irritated.


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Politics:Politics:

Cambodia is a constitutional monarchy, and itsCambodia is a constitutional monarchy, and itsconstitution provides for a multiparty democracy.constitution provides for a multiparty democracy.

Market Freedom Index: 56.6 (ranked 107 out ofMarket Freedom Index: 56.6 (ranked 107 out of179)179)

Foreign direct investment (FDI): US$520 millionForeign direct investment (FDI): US$520 million Corporate Income Tax Rate: 20%Corporate Income Tax Rate: 20% Status Index (Political and EconomicStatus Index (Political and Economic

Transformation): 4.41 (ranked 100 out of 128)Transformation): 4.41 (ranked 100 out of 128)

Frequency of elections: 4 yearFrequency of elections: 4 year


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Culture:Culture:

Education: Literacy Rate of total population:Education: Literacy Rate of total population:73.61 %, male: 84.68 %, female: 64.05 %73.61 %, male: 84.68 %, female: 64.05 %

Communication: Percent of population withCommunication: Percent of population withInternet access at 0.54%Internet access at 0.54%

Language: Percent of population speak EnglishLanguage: Percent of population speak Englishat 1.5%at 1.5%

Religion: Dominant religion of Buddhist 96.4%Religion: Dominant religion of Buddhist 96.4% Diversify of Income: Index of IncomeDiversify of Income: Index of Income

distribution at 43%distribution at 43%


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Economics: GeneralEconomics: General

GNPGNP -- per capita: US $ 1,266 per year GDPper capita: US $ 1,266 per year GDP --

per capita: purchasing power parity: USper capita: purchasing power parity: US$1,951 (2008 est.)$1,951 (2008 est.)

Inflation rate:Inflation rate: --0.70% (2009 est.)0.70% (2009 est.) Unemployment rate: 3.50% (2007 est.)Unemployment rate: 3.50% (2007 est.)

Corruption Perceptions Index (CPI): 2.1Corruption Perceptions Index (CPI): 2.1(ranked 154 out of 178)(ranked 154 out of 178) Trade balance: Exports: US $3.65 billion,Trade balance: Exports: US $3.65 billion,

Imports: US $5.44 billionImports: US $5.44 billion


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Economics:Economics: InternationalInternational

Organization ParticipationOrganization Participation ACCT, ADB, APT, ARF, ASEAN, EAS, FAO, GACCT, ADB, APT, ARF, ASEAN, EAS, FAO, G--

77, IBRD, ICAO, ICCt, ICRM, IDA, IFAD, IFC,77, IBRD, ICAO, ICCt, ICRM, IDA, IFAD, IFC,

IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM,IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM,IPU, ISO (subscriber), ITU, MIGA, NAM, OIF,IPU, ISO (subscriber), ITU, MIGA, NAM, OIF,OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO,OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO,UNMIS, UNWTO, UPU, WCO, WFTU, WHO,UNMIS, UNWTO, UPU, WCO, WFTU, WHO,

WIPO, WMO, WTOWIPO, WMO, WTO=> An very open market for FDI Corps to easily=> An very open market for FDI Corps to easily

join.join.


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Economics: TEconomics: Telecommunicationelecommunication

Cellular Telephones: 4.24 million (2008 est.)Cellular Telephones: 4.24 million (2008 est.) Internet Hosts: 5,452 (2010 est.)Internet Hosts: 5,452 (2010 est.)

Internet Users: 74,000 (2008 est.)Internet Users: 74,000 (2008 est.) Percent of population with Internet access at 0.54%Percent of population with Internet access at 0.54% Cambodia is an attractive investment destination forCambodia is an attractive investment destination for

telecommunications operators due to its politicaltelecommunications operators due to its politicalstability, liberal investment and economic policiesstability, liberal investment and economic policies

(Cambodia is a free(Cambodia is a free--market economy with relativelymarket economy with relativelyfew limitations on foreign investment and no specificfew limitations on foreign investment and no specificrestrictions on foreign investment in therestrictions on foreign investment in thetelecommunications sector in Cambodia.telecommunications sector in Cambodia.www.investincambodia.com/telecoms.htmwww.investincambodia.com/telecoms.htm))

=> A ver otential market for telecommunication=> A ver otential market for telecommunication


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Economics: IEconomics: Infrastructurenfrastructure

Railways: 690 (2010 est.)Railways: 690 (2010 est.)

Highways: 38,093 (2007 est.)Highways: 38,093 (2007 est.) Airports: 17 (2010 est.)Airports: 17 (2010 est.)=> With these simple systems over a land area of=> With these simple systems over a land area of

176,515.00 sq km, this country will need to176,515.00 sq km, this country will need tomuch further develop its infrastructure and thismuch further develop its infrastructure and thiswill be a very good business chance for Civilwill be a very good business chance for CivilConstruction Corp to join this market.Construction Corp to join this market.


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PoliticalPolitical AdvantagesAdvantages

Vietnam sent military and stayed in Cambodiafor 10 years to help Cambodian get liberationfrom Khmer Rouge.

Lots of students got Vietnam Scholarships or tobe sent by the Government to Vietnam forUniversity education and many of them becomeLeaders now.

=> These will ease Vietnam Corps to invest asthey understand Vietnamese style/culture aswell as due to the tie relationship between thetwo Government.


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Conclusion:Conclusion:

Cambodia is growing up.Cambodia is growing up. There are many business opportunitiesThere are many business opportunities

to invest in: construction, tourism,to invest in: construction, tourism,telecom, production of food & garment,telecom, production of food & garment,

exploiting mineral minesexploiting mineral mines


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Sources:Sources:

http://http://www.kwintessential.co.uk/resourwww.kwintessential.co.uk/resour

ces/globalces/global--etiquette/cambodia.htmletiquette/cambodia.html http://en.wikipedia.org/wiki/Cambodiahttp://en.wikipedia.org/wiki/Cambodia http://vi.wikipedia.org/wiki/Campuchiahttp://vi.wikipedia.org/wiki/Campuchia http://globaledge.msu.edu/countries/cahttp://globaledge.msu.edu/countries/ca

mbodiambodia http://www.passplanet.com/cambodia/fhttp://www.passplanet.com/cambodia/f

rame_how_to_go.htmrame_how_to_go.htm

http://campuchia.vnhttp://campuchia.vn


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Thank you for

Thank you forlisteninglistening!!

cambodia rev.1

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