External Environmental Analysis - Cambodia - A great incentive place for regional investment

                                   
a.  Good Geographic Location: Gateway to IndoChina and China (Upcoming Super
     Power)
     Cambodia is a democratic monarchy country with 181,000 sq km land area in South East
     Asia which shares the western border with Thailand, Northern border with Lao and Eastern
     border with Vietnam.  Cambodia has two international airports, Phnom Penh International
     Airport at Phnom Penh City, Capital of Cambodia and Angkor International Airport at Siem
     Reap visiting Angkor Wat, one of the seven world wonders.  Cambodia is the gateway to
     IndoChina (Lao, Burma, Vietnam and Thailand), China, Japan, Taiwan, Europe and United
     States of America.

b.  Fishery and Agricultural based community with abundant of lowly paid and
     unskilled workers who are willing to learn and work for US$3-5 per day attracting
     foreigners to set up garment, light industrial factories, rubber tree growing, palm
     tree growing, fishery and arable farming.
     Cambodia has a population of 15 million working in the agricultural, fishing and farming
     sectors with only 2 million stationed in the capital city of Cambodia, Phnom Penh working in
     the family run shops, USA giant garment factories and offices in the government and private
     sectors particularly in banking, hospitality, travel and tourism segments serving 1.7 million
     vistors a year with GDP of 36.82 million (US$2,600 per capital GDP).

     Cambodia is ethnically homogeneous.  More than 90% of its population is of Khmer origin
     practising Buddhism and speaking Khmer and French.  The remainding belongs to the
     Chinese, Vietnamese, Cham, Khmer Loeu.

     Cambodia is part of the French colony of Indochina from 1863 to 1953 protecting Cambodia
     from harassment from Thai army who installed King Norodom in 1863.  On 9th November
     1953, Cambodia became a constitutional monarchy under King Norodom Sihanouk.  The
     Kingdom flourished and became the richest rice producer in the world.  The Mekong river
     and Tonle Sap (Great Lake) is a source of fish and facilitate below sea level vast fertile
     agricultural land for once a year production of natural rice cultivation during the rainy
     season which runs from May to October (temperatures up to 40°C with accompanying high
     humidity), and the dry season from November to April (temperatures drop to 25°C to 35°C).
     Temperatures can reach 40°C by late April.  The best months to visit Cambodia are
     November to January when temperatures and humidity are lower.

c.  Cambodians are determined and honourable people who can perform general
     tasks and deliver result efficiently that contribute to the road of economy
     recovery from 2001 to 2006.
     After a series of civil war started from a military coup led by General Lon Noi ousting King
     Norodom Sihanouk in 1970 and the brutal murder of 2 million civilians by the communist
     Khmer Rouge rebels led by Pol Pot, the rich agricultural economy was destroyed and the
     people suffered a lot of pain and agony with proper job and education.  The American B52
     bombing and vietnam invasion from 1978 to 1989 further aggravated the desperate life of
     the Cambodians and made Cambodia to become the poorest countries in the world.  Many
     humanitarian organizations have constantly pleading the world for donations and assistance
     to rebuild Cambodia.  By 2000, Cambodia was once again self sufficient in rice with the
     assistance from Internation Rice Research Institute (IRRI) that introduced 750 traditional
     rice varieties to Cambodia from its rice seed bank in the Philippine in 1980s and funded by
     the Australian government in 1987.

     Since 2001, Cambodia depends on Foeign aids & humanitarian investment that has helped
     to recover the economy.  King Norodom Sihanouk and Prime Minister Hun Sen are working
     closely together to maintain laws and order attracting foreign investors & donors including
     Asian Development.

d.  Stable democratic monarchy government focused on investment in the
     development of infrastructure and energy sector to boost the economy and
     generate employment in value added industries that can increase the GDP.
     Peace and prosperity begins to flourish after newly elected Prime Minister Hun Sen endorsed
     King Norodom Sihamoni as the head of State as a symbolic leader in the Kingdom of
     Cambodia in 14th October 2004.  The Prime Minister Hun Sen is the head of government
     with the ministerial appointees vested with executive legislative power in the government by
     the two chambers of parliament, National Assembly of Cambodia and the Senate.  The
     King's brother Prince Norodom Ranariddh is the National Assembly Speaker and members
     of the throne council.

     Investment confidence had been regained when Cambodia joined the World Trade
     Organization on 13th Oct 2004.  Business environment is becoming more attractive when
     ANZ Bank started joint venture with Royal Group of Cambodia on 2nd November 2004 on
     the opening of two retailing international bank outlets in Phnom Penh City & Seam Reap.

     On 1st November 2004, Malaysian Garment manufacture Hytex Integrated Bhd has double
     the production capacity in Cambodia producing garments and shoes for Nike and Puma.
     Many factories are setting up to make garments for European and US markets.

     On 6th July 2005, property market is booming as the income of the middle income group
     has increased and foreigners are rushing into Cambodia for leisure and business as
     Cambodia is peaceful and progressing.

     On 9th June 2005, Khmer Eectric Power Co. Ltd is constructing 30 Megawatt power plant
     while Electricity of Cambodia shall focus on sales and marketing of the electricity to the
     consumers at competitive prices to improve business confidence for foreigners to invest in
     the King of Cambodia

     Cambodia's good fortune began in 2005 when U.S.-based Chevron found promising oil
     deposits at offshore test wells some 87 miles (140 kms) southwest of the port of
     Sihanoukville.  Preliminary estimates of the recoverable reserves are 400-500 million
     barrels of oil and 2-3 trillion cubic feet of gas. Cambodia's total reserves could run as high
     as 2 billion barrels and 10 trillion cubic feet of gas, according to the World Bank.

     WFP is the world's largest humanitarian agency providing food to 90 million poor people in
     the world In January 2007, the Government of Dubai donates US$1 million to feed 700,000
     poor Cambodians of which 10% has HIV/AIDS & TB patients.  25% of the population lives
     below the poverty line and hundreds of thousands of children are dependent on WFP meals
     provided by the agency's food for education programs.

     The United Nations World Food Programme today welcomed an urgently needed contribution
     of US$1 million from the Government of Dubai in response to its appeal to end drastic food
     aid cuts affecting 700,000 poor Cambodians, including HIV/AIDS & TB patients.  But at the
     same time WFP warned that more donations were desperately needed to ensure the full
     resumption of operations in the country.