Cambodia Investment Information
Although international assistance remains a strong instrument in overcoming challenges and issues in Cambodia’s development, the Royal Government recognizes the importance of private sector investment as the key driving force behind its economic growth as a country.
With this knowledge, the Royal Government of Cambodia is commencing a reform program that will foster a conducive atmosphere for private sector investment. This as the government has recognized that relying on foreign aid and support can only go on for so long.
In line with this, the Kingdom of Cambodia has created the Law on Investment in 1994. The primary goal of this law is to streamline foreign investments and give viable concessions to private sector investment. Under the Law on Investment, the Council for the Development of Cambodia (CDC) was formed. This organization is Cambodia’s comprehensive service department for private sector investment. The organization takes charge of the application processing of investment projects.
It is the government’s commitment to speed up the approval of new investment projects through the CDC so a decision should be handed out 45 days after the submission of the application.
Foreign Investment Policy Summary
The Law on Investment stipulates governing rules and regulations when it comes to Foreign Investment Policy. To attract FDI, some necessary changes have been implemented by the government that is favorable to business activities and private sector investment.
To strengthen private sector investment, the Government has put in place policies to help speed up applications and approvals. Here are some of these policies:
- Foreign investors can lease land in Cambodia for up to 70 years;
- The Government guarantees not to take over foreign-owned assets and set up price controls on goods and services of investors;
- Investors are allowed 100% foreign-owned projects and, in the event that the local workforce cannot meet the requirements set forth by the investor, skilled workers from abroad can be hired;
- Award substantial incentives to investors
The Government has taken a proactive approach to providing assistance and services to investors with the Cambodian Investment Board (CIB), the Council for the Development of Cambodia’s operational arm, taking the helm of this initiative.
For more information on taxes, international investment agreements, investment application, promotions and incentives, repatriation of funds and convertibility, labour policies, and investment protection, head on over to The Kingdom of Cambodia’s official website.