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Why numerous Investors rush into Cambodia in a second

Summary:If you still believe Europe and the US is the center of overseas investment, you are outdated. If you still believe Cambodia is the largest village in the world, you are out of dated. Some of them do belittle Cambodia in the way like foreigners belittle China in the 90s.

If you still believe Europe and the US is the center of overseas investment, you are outdated. If you still believe Cambodia is the largest village in the world, you are out of dated. Some of them do belittle Cambodia in the way like foreigners belittle China in the 90s.

The market of eastern Asia and Southeast of Asia has the best performance in newly developing countries. Newly developing economic entities attributes two-thirds of GDP of the world’s growth, and half of the newly consumption in 15 years. However, different country’s performance is various from each other.

Eleven of these countries achieved at least 5% real average annual per capita GDP growth rate during the 20 years from 1996 to 2016. This is enough to increase the income of a class - 3.5 percentage points higher than the average GDP growth rate of the Americans.

China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea, and Thailand. The economy of the entire ASEAN region has been led by these seven economies and four other countries with outstanding performance. Their overall strength accounts for 47% of the GDP of emerging economies.

Continuing growth is challenging, with some long-term nice performers, including Singapore and South Korea, showing a decline in productivity in the economic performance of the past few years. Recent performances such as Cambodia and Vietnam are still outstanding, and there is room for further improvement in terms of productivity, income and demand.

best economic growth: Cambodia, Laos, Myanmar, Vietnam.

From the long term aspect and short term aspect, Cambodia is the best one.

Before 2012, Chinese magnates put their money in property in America, Canada, The United Kingdom of Great Britain and Northern Ireland and developed countries like Europe. But in recent years, more and more people put their money into countries in Southern of Asia.

Now that Hong Kong's housing prices have fallen by 10%, many Hong Kong-invested companies have set their sights on Southeast Asia. For the whole of Southeast Asia, there are not many countries with investment value.

The poverty of Cambodia is certain. From the perspective of the city, Cambodia's capital, Phnom Penh, is like China's third- and fourth-tier cities, let alone other cities except Siem Reap and Sihanouk.

The residents of Phnom Penh almost everyone has a motorcycle. The popular TUKTUK vehicle is composed of a motorcycle and a hood with two wheels. However, you want to use it, it is not cheap.

Phnom Penh is the city with the largest number of Rolls Royce in the world. In 2017, 50 Rolls-Royce Phantoms were sold worldwide, 17 of which were sold to Phnom Penh.

In addition to the traffic, food is also surprised me. The price of daily necessities like China is generally one-third higher than China. A countries with weak industry are terrible, everything rely on imports, and prices are definitely not cheap.

Of course, you can also choose local snacks. If you try a roadside stall, it is not expensive, but the sanitary condition maybe not so good. The cheapest one is the fruit. Last time I spent $1, I bought nearly 10 mangoes. It was sweet and delicious, so I couldn’t move because I was so full.

After speculation around the world, with the funds going south, using Wu Xiao Bo’s speech in 2018, I said two words: “Buy assets, invest in poor countries, and flooding the world with moneys”.

Why we choose Cambodia instead of other countries?

01 Dollar asset

In Cambodia, the official currency Riel is the common currency when paying something worth less than $1. Dollar is the country's main currency. This is particularly important in the background of the appreciation of the US dollar and the depreciation of the Renminbi. Let alone the renminbi will be paralyzed, and no one in Southeast Asia can handle to depreciation of the US dollar system.

To be honest, the exchange rate is the primary consideration when we investing overseas. Once the exchange rate against the US dollar falls, it is very likely that all the previous property market gains will be exhausted. For example, the property in Thailand was very hot a few years ago, but the exchange rate of the Thai baht against the US dollar has also fallen all the way since 2018. If the price increase of the house does not exceed the exchange rate of the Thai baht against the US dollar, it may suffer a deficit.

 02Cambodia is not a CRS member.

CRS is simply a “standard for the automatic exchange of tax-related information in financial accounts”. It mainly exchanges all financial account information of taxpayers abroad, such as stocks, funds, futures, bonds, insurance, and equity. China has already started its first information exchange in September, and it is expected to complete the asset survey of all users by the end of 18th. This means that many high net worth individuals have the need to avoid taxes overseas.

And Cambodia is one of the few countries that do not join the CRS. It can be expected that in the next few years, a large amount of "black money" from Hong Kong and mainland China will flood into the Cambodian market.

There are also a large number of Westerners here. There are 4 million people in Phnom Penh, including 300,000 foreigners, equivalent to one foreigner for every 13 people. The 80-year-old aunt will speak French. The aunts selling vegetables on the roadside will speak English, and the driver will speak English and Chinese. This is the normal state of Phnom Penh. We can't say how nice their foreign language level is, but basic communication is not a problem.

In addition, Cambodia is still among the ASEAN countries with the least investment control. There is no exchange control here, there is no restriction on 

the repatriation of profits to the country, and there is no differential treatment for foreign investors.

Westerners love freedom most. Obviously, the freedom of Phnom Penh has attracted so many Westerners to live in here .According to the research, there are 210,000 Chinese in Cambodia. Why there are so many Chinese?
Opportunity, the opportunity is the reason for attracting people to invest in here!

 03Economic stability and sustained high-speed development

  Since 2011, Cambodia has continued to maintain a growth rate of 7%. Various studies have shown that this is almost the same in the next two years. To be honest, except for China and India, it is difficult for a third country to perform so well in economic growth, especially such a long-term GDP growth rate is stable at more than 7 %.

04 完美的人口结构 perfect Demographic structure
In 2015, the total population of Cambodia was 15.65 million, and the average age of the population was 27 years old. Among them, young people under 30 years old accounted for 70% of the total population. The entire population structure is a perfect pyramid type, with a younger population and ample labor. The demographic dividend has played a key role in Cambodia’s economic development.
Due to the huge demographic dividend, 16.2% of Cambodians leave the countryside to find jobs in cities every year, and 3.1% are no longer engaged in agriculture and become workers. And these people need housing after entering the city, which is undoubtedly a potential market for urban purchases.
Some people still have opportunities. China’s “One Belt, One Road” and industries that have been transferred from China to Cambodia have undoubtedly led to Cambodia’s economic development. Under the Sino-US trade war, these poor countries in Southeast Asia are actually true fishermen.

05Cambodia's housing rental returns are remarkable

The high rate of return on rent means a shortage of housing, which means that the economy is active. In Cambodia, Phnom Penh, the city's rental rate of return is among the best.

Phnom Penh rental return rate is much higher than domestic
A man who had working in Phnom Penh for a long time, he bought 2 shops and 2 apartments in Phnom Penh. He told me that his two pavements can reach $5,000 a month, and his cash flow is very impressive. The apartment is also a 3-year lease (6% rental return)
The reality is that the supply of apartments in Phnom Penh is seriously inadequate. At the end of 2017, the total number of apartments was only 2,000, but there were nearly 150,000 foreigners living in Phnom Penh. This demand situation has determined that the property market will continue to prosper for a long time.

 06 The price of Phnom Penh is plain

The average city price is 16,000 yuan (RMB), while the average price of other Southeast Asian countries has reached 35,000 yuan - 65,000 yuan.

A small Southeast Asian country with a population of more than 16 million.

In 2018, it suddenly became the focus of global attention.

Even the industry's great tyrant Feng Lun said:

If you want to find the direction of transformation, you should go to the place where the per capita GDP is 3,000 US dollars. Like Phnom Penh, you can make money with your eyes closed. (Source: Haitou)

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Disclaimer: The re-forward articles on Compass website are for the purpose of conveying more information, and it does not mean that the Compass website agrees with its views or confirms the authenticity of its content. Article noted as "Source: Compass original", please note that the source from Compass. The content of the article is for reference only and should not consider as investment advice, and it does not mean that Compass agree with its views.


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