Cambodia’s Draft Law on Investment is heading to the final stage of approval after it was discussed and adopted by the Plenary Session of the Senate on Monday morning.
The draft now goes back to the National Assembly for a final vote and becomes law when the King signs the document.
The draft is made up of 12 chapters and 42 articles. A copy shared with Khmer Times says it is intended to establish “an open, transparent, predictable and favourable legal framework to attract and promote quality, effective and efficient investments by Cambodian nationals or foreigners for socio-economic development in the Kingdom of Cambodia.”
It would achieve those goals in four ways; by increasing competitiveness; modernising and increasing the productivity of local industries and strengthening regional and global connectivity; establishing an investment incentive regime that is transparent, predictable, non-discriminatory and competitive; and providing protection to investors’ rights in line with national interests.
Speaking after the Senate vote EuroCham Chairman Tassilo Brinzer said adoption of the updated investment law would be an important step in Cambodia’s economic recovery. The European Chamber of Commerce advised the government on the draft law, which could continue to be modified by sub-decrees.
AmCham President Anthony Galliano said the time taken approving the draft law is understandable given the limitation the pandemic has placed on the government for assembly.
“Now the new incentives can be implemented and expectations are there will be an acceleration of foreign direct investment once the pandemic restrictions are relaxed and SMEs [small and medium-sized enterprises] can now welcome the tax exemption on VAT [value added tax] for any purchase of inputs by for the implementations of QIPs [qualified investment projects] that are made locally,” he said. “I am encouraged by the progress made with Investment Law 2021, especially the new incentives and focus on 20 priority sectors and am now hopeful that the government will embrace the hard work underway with the Government Private Sector Forum Working Group D as work on the 2022 law approaches,” Galliano said.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
