The National Assembly (NA) approved the draft Law on Investment at a plenary session on September 9, which will undeniably play a vital role in attracting local and international investors to the domestic market.
The draft law will now be sent to the Senate for a vote. Once approved, the bill will be returned to the NA to proceed with a signature from the King – or acting head of state – to become law.
Government spokesman Phay Siphan said the draft law is designed 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 elements of the draft law are the establishment of an investment incentive regime, modernisation, increasing the productivity of local industries, strengthening connectivity to regional and global supply chains, transferring technology, enhancing Cambodia’s competitiveness, diversifying the economy and providing protection of legitimate rights and interests to investors in Cambodia,” he said.
He remarked that the draft law was initiated and outlined by the Cambodia Industrial Development Policy 2015-2025.
According to Council of Ministers, or Cabinet, the new law, which comprises 12 chapters and 42 articles, will replace the 1994 Law on Investment and 2003 amendment.
Keo Mom, CEO of Ly Ly Food Industry Co Ltd, one of the Kingdom’s largest food processing factories, expects the new law to woo more investors to the Kingdom, especially to the small- and medium-sized enterprise [SME] industry.
She told The Post that the law “will provide more opportunities for SMEs to process raw materials or semi-finished products to supply the large industries that will come to invest in Cambodia, as well as create more job opportunities and prop up the national economy”.
As of June 30, Cambodia has approved 87 new investment projects and expansions of existing ones, worth more than $2.96962 billion, the Council for the Development of Cambodia reported.
Last year, the Kingdom’s exports reached $17.21537 billion, up 16.72 per cent year-on-year from $14.74874 billion, the Ministry of Commerce said in its 2020 annual performance report.