Seizing Business Opportunities in Cambodia A Presentation by

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Seizing Business Opportunities in Cambodia

A Presentation by

Mr.Sakol Cheewakoset, the president of CP Laos and CP Cambodia

คุณสกล ชีวโกเศรษฐ

• ต ำแหน่ง

รองประธำนกรรมกำร กลุ่มธุรกิจเกษตร

อุตสำหกรรม ( สัตว์บก )

กลุ่มประเทศกัมพูชำและ สปป .

ลำว

Why cp invested

• We do businesses in Laos and Cambodia which are focused on the efficient development of the supply chain to access quality raw materials.

• This is aimed at making CPF well placed to serve rising demand once the regional single market is established in 2015.

Our core businesses

• Feed production

• Farming

• Food processing

Cambodia –Some business facts

• With a size 1/3 of Thailand. Cambodia is a bordered by Thailand to the Northwest,

Laos to the northeast, Vietnam to the east and the gulf of Thailand to the southwest.

With a population of over 14.8 million it is the 68 th most populous country in the world.

• Cambodia is a fast-growing regional economy based on agriculture and agroindustries ,manufacturing and tourismrelated industries

4

key-factors to invest in Cambodia

1.Political Stability

2. Macro-economic Stability

3.Sound,Transparent and Predictable

Legal Framework

4.Access to Key World Markets through Trade Preferences on terms of MFN/GSP

Cambodia

• CP has invested in Cambodia since 1995.

• Its combined investment amounts to 3 billion baht, largely spent on feed, livestock farms and food-related production units such as sausage plants and slaughterhouses.

New Silo Plant in Cambodia

• A new silo and drying plant for corn in Pailin province, western Cambodia which is the important for agricultural production.

• The investment is to ensure high-quality raw material to serve its feed production for both the domestic market and export.

• Ensure effective distribution in western

Cambodia

• Reduce logistics costs

Laos

• CP operates one feed mill in Vientiane with production capacity of 10,000 tonnes per month. The new plant in Champasak province will have initial production capacity of 5,000 tonnes per month to serve consumption in southern Laos. Having a plant there will reduce the company's logistical cost by avoiding the need to transport goods from Vientiane.

CP Laos

• started operations in 2006, running animal feed and livestock businesses.

• It has one feed mill in Vientiane with production capacity of 10,000 tones per month.

• The new feed meal plant in Champasak province will have production of 5,000 tones per month

• The plant is expected to reduce logistics cost by eliminating the need for transport from Vientiane to southern region.

• Laos’s policy ” to deliver its people from poverty by 2020 ”

• Meanwhile, investment in Laos has reached approximately THB1 billion (US$33.61 million) in the feed, farm and food businesses.

• However, the food business is in the beginning stage, with only Five Star grilled chicken launched so far.

• establishment a new feed meal plant in

Champasak province, south-western Laos to strengthen agri-industrial business aheadof the Asean Economic Community

(AEC).

• CPF is continuing to invest in Laos and

Cambodia to take advantage of increasing purchasing power of people there. The two countries are fully supportive of the CP subsidiaries. Political stability in both countries has prompted economic growth to ensure sustainable business development.

Future Plan

• mulling investing in an aquatic business in

Cambodia

• studying the possibility of launching organic production both for livestock and plants in the two countries to cater to growing organic food consumption.

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