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

  • Tensions high ahead of historic Kun Khmer match up

    The long-awaited November 5 matchup between Kun Khmer legend Prum Samnang and Myanmar-Canadian boxer Dave Leduc has become the most anticipated fight of the year. The Wurkz Sena Kun Khmer promotion, which will be held at the Town Arena at Chip Mong 271 Megamall, will see six

  • Manet: Cambodia safe for travel

    Prime Minister Hun Manet acknowledged that Cambodia and China have cooperated to tackle internet scamming, fraud and other cross border crimes, but insisted that the “Kingdom of Wonders” is completely peaceful and safe. He welcomed tourists to come and explore its rich heritage. During a

  • UNESCO formally list Battambang gastronomy

    Battambang, renowned for its cultural heritage, has achieved a significant milestone as the first Cambodian municipality to join the UNESCO Creative Cities Network (UCCN). The UCCN unites nearly 300 cities prioritising creativity and cultural industries in local development plans and international cooperation. On World Cities Day,

  • Cambodia pivots to solar, wind energy

    Cambodia is planning a move towards solar and wind energy to meet its rising power demands, according to Minister of Mines and Energy Keo Rottanak. On the sidelines of the Singapore International Energy Week event held recently, Rottanak emphasised the urgency of diversifying Cambodia’s

  • Angkor causeway symbol of Cambodia-Japan ties

    In a historic moment marking another milestone in the 70-year-long diplomatic relations between Cambodia and Japan, King Norodom Sihamoni celebrated the formal inauguration of a causeway located to the west of the world-renowned Angkor Wat. While presiding over the November 4 ceremony, the King emphasised the

  • Manet calls for Cambodia’s railways to get back on track

    Prime Minister Hun Manet has instructed the relevant authorities to expedite studies into upgrades to the Phnom Penh to Preah Sihanouk railway line. He suggested that the maximum speed on the line should be increased to 80km/h, in order to expedite the transportation of