Frequently asked questions (FAQ)
Regarding frequently asked questions about Cambodian economy, real estate, our services and etc…
We herewith prepared the answers to frequently asked questions based on the information as of October 2014. We are sure of accuracy of this information as well as information in this website however please make it for your reference at your own risk.
- QCan foreigners open a bank account in Cambodia?
- AYes, however many of banks here require us to show the residential certificate in Cambodia and the banks available is very limited. And, these rules may be changed according to each bank or government policy.
- QWhy people in Cambodia use US dollars?
- AThe money system was abolished during Khmer Rouge (Cambodian communist guerrilla organization). The local currency RIEL was re-brought into the market after civil war ended in 1980 however it was not penetrated due to the people’s distrust to the currency. United Nations brought much US dollars into this country for their activities from 1991 till 1992 then the US dollars turned to be used for any transactions in this country. The organization which governed Cambodia during this period is an organization for activities of peacekeeping operations by United Nations called UNTAC (UNITED NATIONS TRANSITIONAL AUTHORITY IN CAMBODIA).
- QHow long do people in Cambodia continue using the US dollar?
- AThere is no due date made however some researches and investigations have been carried out by the government including some corporation by foreign countries. They said that it is important to proceed it step by step with specific policies following the market mechanism. There are some merits of US-dollar basis such as stabilization of macro economy, the decrease of the risks of devalued currency and etc… on the other hand there are some potential risks that the government can not take some effective monetary policies and disappointing export due to US dollar appreciation.
- QHow much is the bank interest in Cambodia?
- APlease make it reference the following interests of fixed deposit of some of main banks in Cambodia ;
The reference chart of fixed deposit interests on US dollar basis.
Bank Name ABA BANK ACLEDA BANK ANZ BANK CANADIA BANK CAMBODIA PUBLIC BANK MAY BANK PPCB MARUHAN BANK Main Shareholder Canada Local (with SMBC from Japan) Australia & New Zealand Local Malaysia Malaysia South Korea Japan 1-year Fixed 5.50% 4.75% 2.70% 4.75% 3.75% 4.25% 6.20% 4.50% 3-year Fixed 6.50% 6.75% N.A. N.A. N.A. N.A. 7.50% 6.00%
- QAre there any risks of fixed deposit?
- AYes, there are some risks. The interest is high due to the country risk of Cambodia and there is no deposit guarantee scheme.
- QCan we expect high interest rate on condominium purchase?
- ASome investors expect income gain more than capital gain however Cambodian market is the market we can expect more capital gain than income gain by being compared with advance countries. Regardless of your expectation, we can introduce you a proper property in accordance with your purpose.
- QCan foreigners acquire a land?
- AIt is not allowed for foreigners to own a land regardless of individual or incorporated in accordance with Article 44 of the Constitution. However, for you to need the land acquisition strategically, we have some schemes with several protections.
- QDoes your business cover only Phnom Penh city?
- AWe base in Phnom Penh but we often receive inquiries and orders from the owners holding the land in suburbs therefore we are handling suburban properties for example in Siem Reap province. Inquiries from Sihanoukville province are increasing in recent years.
- QIt is said that there are many of fraud cases in Cambodia, how do you think of it?
- APlease note that ambiguous contract is often made through negotiations in which they left ownership rights ambiguously. Register book shall be opened institutionally however things really is that we can not view it generally without experts. We sometimes receive an order only to intermediate a deal after customer has chosen a property or for due diligence. Please feel free to ask us if you have any queries.
To whom considering to start business in Cambodia,
We picked up some information source for you to understand more about Cambodia. We hope that business owners and each company representative utilize this information for your activities.
1. The Phnom Penh Post
You can check the latest news including real estate sector on one of the best newspaper in Phnom Penh.
2. The CAMBODIA DAILY
The CAMBODIA DAILY is also one of the well-known news paper in Phnom Penh as well as The Phnom Penh Post.
3. CDC, Council for the Development of Cambodia
CDC, established in 1994, is the highest decision-making level of the government for private and public sector investment in accordance with the Law on Foreign Investment in the Kingdom of Cambodia.
4. PPSEZ, Phnom Penh Special Economic Zone
PPSEZ is Cambodia’s industry leader amongst 34 approved special economic zone with the occupants such as Coca Cola, TOYOTA, DENSO, AJINOMOTO, ROHTO, YAMAHA, Minebea and etc…