Logo of Phnom Penh Post newspaper Phnom Penh Post - Investment law to guide recovery, FTA uptake

Investment law to guide recovery, FTA uptake

Content image - Phnom Penh Post
CDC secretary-general Sok Chenda Sophea. SUPPLIED

Investment law to guide recovery, FTA uptake

The new Law on Investment will be a crucial tool as the Kingdom pushes ahead with post-Covid-19 economic recovery plans, and help lay the groundwork to maximise benefits from free trade agreements (FTA), according to Cambodia Chamber of Commerce (CCC) president Kith Meng.

He made the remark at a virtual workshop on the law, organised by the Council for the Development of Cambodia (CDC), in collaboration with the CCC, and presided over by CDC secretary-general Sok Chenda Sophea. The leadership and around 400 members of the CCC were also in attendance.

Meng said: “The private sector strongly believes that this investment law will be effectively implemented to create an open, transparent, predictable and efficient legal framework to investment.”

The CDC’s Chenda Sophea said the new investment law was designed to respond to geopolitical and economic changes caused by the ongoing Sino-US trade spat, the Fourth Industrial Revolution, the digital transformation, and the disruptions to the global value chain caused by the Covid-19 pandemic.

“The new investment law also takes into account the promotion of small- and medium-sized enterprises [SME] by providing incentives to SMEs in priority areas and boosting connectivity with large enterprises,” he said.

He added that partnerships between the government and the private sector are essential to help the economy grow.

Initiated in 2015, the investment law underwent thorough research and development, led by a CDC working group, and was designed in accordance with the guidelines of the Industrial Development Policy 2015-2025.

The first working version of the draft law was completed at the end of the first half of 2019, in accordance with recommendations made by Prime Minister Hun Sen at the 18th Government-Private Sector Forum on March 29 that year. The new law was approved by the National Assembly last month.

The Ministry of Economy and Finance reported that just 75 private investment projects planned outside of special economic zones (SEZ) were approved by the CDC in the first eight months of 2021, down by nearly 30 per cent year-on-year.

The report presented an overall glum picture for new investments in non-SEZ projects, with new ventures approved by the CDC in January-August involving a total capital investment valued at $1.106 billion, dipping by 52.5 per cent year-on-year, and expected to create 57,000 jobs, contracting by 32.3 per cent on a yearly basis.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Angkor Beer, 30 Years of Prestige and Still Counting

    Let’s celebrate 30 years of prestige with Angkor Beer. In this 2022, Angkor Beer is 30 years old and has been staying with Cambodian hearts in all circumstances. Head of core beer portfolio, EmYuthousaid, “We have been with Cambodians for three decades now. We, ANGKOR Beer, pride

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,