Logo of Phnom Penh Post newspaper Phnom Penh Post - Commerce law changes approved

Commerce law changes approved

Content image - Phnom Penh Post
The implementation of the existing legal framework has created difficulties for businesses to trade and transit goods, some of which could be remedied by the amendments approved by the Council of Ministers on Thursday, according to the Cambodia Chamber of Commerce vice-president. YOUSOS APDOULRASHIM

Commerce law changes approved

The Council of Ministers on December 16 approved two draft bills, respectively amending the Law on Commercial Enterprises (“LCE”) and Law on Commercial Regulations and the Commercial Register (“LCRCR”), which are designed to improve the ease of doing business in Cambodia and prepare for post-Covid economic recovery.

The endorsed draft instruments will now be put up for vote at the National Assembly.

Following the council’s meeting, Government spokesman Phay Siphan said the amendments would bolster transparency and consistency within the Cambodian legal framework and create an environment conducive for ease of doing business, propel the socio-economic recovery from the Covid-19 crisis, and boost economic growth.

He noted that the LCRCR was promulgated on June 26, 1995 and amended on November 18, 1999, and that the LCE entered into effect on May 19, 2005.

He upheld that both laws have been implemented smoothly for many years, but pointed out that some articles have never been used.

He claimed that these articles fail to reflect the current state of government reforms related to the provision of public services, as well as the local business environment and its integration into the global community.

The current model of public services provision features an automated system which minimises the information, attachments and other requirements for the establishment and registration of enterprises, he said.

However, he noted that the laws address a number of procedures no longer required in practice.

He argued that some of the articles are not consistent with the law or other obligations under the conventions, treaties and international agreements to which Cambodia is a signatory.

The government prepared the two draft instruments to “bring harmony among legal documents”, according to Siphan.

Cambodia Chamber of Commerce vice-president Lim Heng told The Post on December 16 that the council’s approval was in line with the Kingdom’s adoption of digital tools for commerce.

He emphasised that analyses indicating that the Kingdom’s existing laws do not optimally meet the business needs of investors prompted the government to amend some articles and insert new ones.

These, he said, would supplement the recently-enacted investment law, which is also designed to improve the business environment.

The implementation of the existing legal framework has created difficulties for businesses to trade and transit goods, he said, contending that the amendments would induce more investment and enhance the country’s credibility.

He said these adjustments would better support Cambodia’s transition to Industry 4.0, with a more detailed profile of the Kingdom’s current economic situation.

“These amendments are not only required for Cambodian businesses, but also for the region and the world, for them to invest across our country, because we are part of the community,” he said, noting that the ASEAN Community was formally established in 2015.


  • Hun Sen: Stop Russia sanctions

    Prime Minister Hun Sen said sanctions against Russia as a result of its military offensive in Ukraine should be stopped as they have produced no tangible results, and predicted that a global food crisis would ensue in 2023 as a consequence. Speaking to an audience at

  • Chinese tourists 2.0 – Coming anytime soon?

    Regional tourism is grappling with the absence of the prolific travellers and big spenders – the Chinese tourists. Cambodia, which has welcomed over two million Chinese tourists before Covid-19, is reeling from the economic loss despite being the first to fully open last November ‘To put

  • PM reflects on shoe throwing: Free speech or act of violence?

    Prime Minister Hun Sen on May 17 questioned whether a man who threw a shoe at him while he was in the US was exercising freedom of expression or if it was an act of hostility. Hun Sen was referring to an incident last week when

  • Siem Reap’s Angkor Botanical Garden opens

    The Angkor Botanical Garden was officially opened on May 19 with free entry for both local and international visitors for the first six weeks. The garden was established on a nearly 15ha plot of land in Siem Reap. “After the first six weeks, Angkor Botanical Garden

  • Pub Street on the cards for Battambang

    The Battambang Provincial Authority has announced that it is considering establishing a Pub Street in the area around the heritage buildings in Battambang town in a bid to attract more tourists. Battambang provincial governor Sok Lou told The Post that the establishment of a Pub

  • Hun Sen: Don’t react to hostility

    Prime Minister Hun Sen urged tolerance and thanked members of the Cambodian diaspora for not reacting to the hostility on display towards him by others while he was in the US to attend the May 12-13 ASEAN-US Special Summit in Washington, DC. In an audio