Key Features of Cambodia’s Latest Investment Law: What You Need to Know

On October 15, 2021, the Government of Cambodia approved a new Investment Law to replace the 1993 version that was revised in 2003. The objective of this new law is to establish a transparent and open legal framework for investment, while also attracting and promoting high-quality, efficient, and effective investments that contribute to socio-economic development.

The key provisions of the new law encompass various aspects:

  1. Investment Incentives: The law introduces an investment incentive system that is transparent, predictable, non-discriminatory, competitive, and aligned with socio-economic policies. These incentives are available in 19 sectors, including industries focused on high-tech innovation, research and development. The incentives are provided through a combination of tax-related basic incentives, additional incentives, and special incentives.
  2. 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.
  3. Investment Procedures: The new law streamlines and enhances administrative procedures for registering qualified investment projects. It also provides a basic overview of technical aspects related to the law, such as the process of registering and transferring an investment project.

By implementing these key provisions, the Government of Cambodia aims to create a favorable investment environment that encourages both local and foreign investors to contribute to the country’s socio-economic growth.

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