Cambodian government to amend investment law to make the country lucrative destination for foreign investment
Gathering input from the private sector and development partners, the government of Cambodia is heading towards formulating very competitive and attractive Investment Law to attract more foreign investors. The Investment Law is 14 years old; it was promulgated in 1993 and first revised in 2003, now this would be second amendment.
Overall, the investment framework in Cambodia is better than most of the neighbouring countries, however to support further investment with a commercial legal system, it would be instrumental in generating confidence in the investors, along with a robust appeals system for tax disputes.
Sok Chenda Sophea, Secretary General of the Council for the Development of Cambodia (CDC), said the government wants to involve the private sector, development partners and law firms to create an Investment Law which boosts the economy of the country and creates a favourable investment climate. He informed that CDC has already conducted different studies to revise the law and consulted the Japan International Cooperation Agency (JICA), the Organisation for Economic Cooperation and Development (OECD), and the International Finance Corporation (IFC) to know more about the investment laws of other countries in the region.
Recently, Hun Sen, the Prime Minister of Cambodia said that the government has transformed the country since the collapse of the Khmer Rouge regime into a nation that attracts billions in foreign direct investment (FDI) every year. Peace, security and political stability over the last two decades has allowed Cambodia to develop economically and socially. “Cambodia is now considered as a very good and competitive place for business and investment by the foreign investors and international financial organisations,” stated Hun Sen.
According to the National Bank of Cambodia (NBC), in 2019, Cambodia’s economy will grow at a rate of 7 percent, slower than last year’s 7.3 percent. The inflation rate will remain at 2.6 percent in 2019. As per NBC, in 2018 FDI expanded by 12 percent, mostly going into garment industry, the banking sector and real estate.Combodia News Region