“Going out strategy” has been employed by many investors in the already fiercely competitive business context so as to unlock and grasp new manifold investment opportunities for safe investment, brand expansion, history creation, and wealth accumulation. Understandably, much consideration will naturally arise when it comes to a hard question on where exactly to go invest to get all or at least the majority of the mentioned above. With years of international investment experiences in many countries and on account of my own sharing culture, I am proud to recommend Cambodia as the best place to invest money right now due to its welcoming attributes to any foreign investors.
Bordering Thailand, Vietnam, and Laos in the ASEAN region, Cambodia, according to the World Bank, is one of the world’s fastest growing economies, increasingly contributed by its tourism, manufacturing, and financial industries. Since the last two decades, Cambodia’s government has extended its inward foreign investment horizon and building a positive investment climate to magnetize foreign investors. As a result, there has been a constant growth in the inflow of foreign direct investments to the country, with an approximately 800% increase in the last 10 years.
The Cambodian government has continued its effort for foreigners to own businesses and stay long term in its territory. Possessing several companies in different industries in Cambodia, I have found that it is relatively easy to register a company, and the registration cost is really reasonable. More importantly, there are no trade restrictions and foreign exchange regulations. US dollar is widely used, making it efficient for financial transactions, and foreign investors can truly send income and profit back to their respective home countries.
Besides Khmer as the local language, English and Chinese can be easily used for business purposes, bringing about effectiveness in cross-country communication as well as making Cambodia ahead of its neighbors such as Vietnam and Laos. The labor cost in Cambodia is still relatively low comparing to that of other countries, while the capacity of its labor resource just gets better and better from year to year. Adding to these factors, Cambodia rarely has any big natural disasters, greatly lowering potential risks and bad impacts on operation costs.
Also, Cambodia has a strong social and political stability. The country has the longest-serving current Prime Minister in the world ever. Cambodian people are nice and friendly, too.
If I need to go recommend one industry for investing in, I will go for derivatives business in the form of a derivative broker. Cambodian Derivatives Exchange (CDX) is the pioneer of Cambodia derivatives market and we not only know about it inside out, we built it bit by bit with the support of local regulator. Also essentially, we are eager to share such great opportunities and have more hands to chip in more collective achievements in the history of derivatives market.
Starting from scratch, Cambodia derivatives market has gradually realized its glimpse of early promises and established itself to be one of the contributors to the development of the global derivatives market. We work tirelessly to keep raising the standards of trading practices, sourcing and showcasing latest technologies, enriching the quality of our resources, enhancing our services, and helping our derivative brokers to settle in quickly in the market.
Securities and Exchange Regulator of Cambodia (SERC), the regulator of Cambodia derivatives market, has well implemented stringent rules and regulations to protect both investors and derivative companies. SERC has also promoted to a great extent the awareness of the market and conducted numerous training courses to provide education to the public. In the meantime, CDX has co-hosted many forums, seminars, and roadshows with SERC in all cities and provinces of Cambodia, with main purposes of exposing the benefits of derivatives trading, instilling professional trading know-how, and attracting more market players. We treat our peers as our good counterparts in pushing together for the advancement of our market.
Despite the fact that the arrival of the Covid-19 has been restlessly disrupting many aspects of life including the global economy, Cambodia derivatives market is fortunate not to be affected by the pandemic but also to show signs of concrete growth. Comparing the trading volume in 2019 when the outbreak did not exist yet in the kingdom with the volume in 2020 when we undergone the negative impacts, there was an increase of approximately 165%. This positive trend has continued, with the first five months of 2021 registering a rise in trading volume of 29.82% in comparison to the same period last year. This illustrates that regardless of the pandemic and economic circumstances, Cambodia derivatives market can gain an advantage out of the situation. With this attribute, imagine how strong the derivatives market here will be after the pandemic or when the global economies can completely cope with this outbreak?
As Cambodia derivatives market is getting more mature, Cambodia’s national economy has also maintained its solid rise, and the local residents have enjoyed their mushrooming investment power, the number of potential clients is huge. Therefore, with past international investment experiences, I truly feel that derivatives business in Cambodia is in a position deemed super attractive for any foreign derivatives companies.
SERC is the entity to issue the derivative broker license whose primary requirements involve with company registration, company management structure, and capital. The whole process is simple, and with the right tools, resources and professional support by CDX, the process is even more efficient than a few years ago. CDX has its own experience as we are the first ever exchange to receive the first Central Counterparty and Derivative Broker licenses by SERC. We also have a proven record in assisting our derivative brokers to get their derivative broker licenses to legally operate their business in an effective and efficient manner. Most importantly, according to SERC’s official record, CDX achieved more than 70% of the total market transactions and that’s a proud fact for those who not only want to apply for DB license, but also wanting to achieve real business results. We are here in Cambodia to give our support to any investors especially the overseas companies to run business in the country, so do not hesitate to reach and consult with us. We do not impose any charge for doing so. Catch this opportunity and explore your company reputation as well as a great deal of return on your investment.
Mr. Lawrence Kook, Director of CDX