New investment law aims to boost foreign investments

On October 15 2021, the Government of Cambodia adopted a new Law on Investment. The new law will replace the Law on Investment of 1993, as revised in 2003. The new Law aims to create an open and transparent legal framework for investment, as well as to attract and promote quality, efficient and effective investment tailored to support socio-economic development.

The key provisions of the new law include:

• Investment incentives: establishing an investment incentive regime that is transparent, predictable, non-discriminatory, competitive, and supportive of socio-economic policies. Incentives are offered in 19 sectors, including high-tech industries involving innovation or research and development, notably through a mechanism of tax-related basic incentives, additional incentives and special incentives;

• Investor guarantees: a set of protective measures are granted by the law to investors and their assets, including non-discrimination, guarantees against nationalisation and arbitrary expropriation, free transfer of funds, intellectual property protection etc.

• Investment procedures: the new law revises and improves administrative procedures for applying for registration of qualified investment projects (SEC) a basic introduction to some technical aspects addressed in the law, such as registering and transferring an investment project.

• Type:

  • Treatment and operation (Nationalizations and expropriations, Capital transfer and FOREX, Operational conditions)
  • Promotion and facilitation (Investment facilitation , Investment incentives, Other)

• Industry:

  • Not industry specific

• Sources:

  • AKP Phnom Penh, Cambodia Shares Experience On Sustainable Promotion At World Investment Forum 2021, https://www.information.gov.kh/articles/58019, 19 Oct 2021
  • The Phnompen Post, Investment law sails through National Assembly, heading towards Senate, https://www.phnompenhpost.com/business/investment-law-sails-through-national-assembly-heading-towards-senate, 09 Sep 2021
  • Khmer Times, Cambodia’s new investment law becomes more attractive and considerate for investors, https://www.khmertimeskh.com/50891114/cambodias-new-investment-law-becomes-more-attractive-and-considerate-for-investors/, 10 Jul 2021