The Investment
Ways of Attracting Foreign Investment into Cambodia
The garment industry is one area in Cambodia that has been targeted by foreign direct investment. The low price of garments produced in the country has made them very popular with expatriates. A high level of employment in the garment industry and a competitive price and quality of products have made them a popular choice for firms that export goods. As well as exporting goods, firms that import garments from Cambodia can also employ local workers to produce the clothing. Cambodia is an extremely beautiful country.
In addition, the government offers several incentives to foreign investors who set up businesses in the country. Its beaches and the rivers that flow through it are an attraction for tourists from all over the world. The cambodia investment Development Agency (CIDA) is an agency of the government of Cambodia. It was established in 2021 to assist the private sector in undertaking Cambodia's business activities, mainly through foreign direct investment (FDI). This agency organizes for Cambodia to develop its economy and attract more FDI.
Currently, CIDA facilitates foreign direct investment but does not provide financing or guarantee loans. To access these FDI programs, it is imperative to apply for a visa. For many companies and non-profit organizations, it is difficult to obtain a visa on arrival. For these companies and organizations, CIDA can provide alternatives like pre-arranged visit permits or an alternative open market financing method.
The pre-arranged visit permit is similar to a business visa but can be used for visiting the open market instead of having to apply for a business visa. Like most developing countries, Cambodia experiences a shortage of foreign direct investment. To address this problem, CIDA encourages higher foreign investment by ensuring the free flow of labor and services to the nation.