Home » Cambodia’s Law to Protect Foreign Investment

Cambodia’s Law to Protect Foreign Investment

by Surya Narayan

On October 15, 2021, Cambodia promulgated the Law on Investment (LoI) to create an open, transparent, and predictable legal framework to attract and encourage quality, effective, and efficient investments in Cambodia by Cambodians and foreigners.

The Law on Investment (LoI) applies to “Qualified Investment Projects” (QIPs), “Expanded Qualified Investment Projects” (EQIPs), and “Guaranteed Investment Projects” (GIPs) registered with the Cambodian Development Council (CDC) or Municipal Provincial Investment Sub-Committees.

Incentives for investment

The LoI encourages investment in key areas and activities, primarily through a tax-related system of basic incentives, extra incentives, and special incentives.

Any sector or investment activity with a strong potential to contribute to Cambodia’s national economic development may be eligible for special incentives outlined in the Law on Financial Management.

Investment guarantees

To ensure safety and stability, the LoI provides a series of protective measures (guarantees) to investors and their assets.

  • Non-discrimination in certain cases of loss of investment
  • Non-discrimination on the basis of foreign nationality
  • Free purchase and repatriation of foreign currencies
  • Intellectual property protection
  • Right to use land
  • No nationalization
  • No expropriation
  • There is no pricing regulation.

How to Apply?

A written application must be submitted to the CDC or a Municipal-Provincial Investment Sub-Committee by anyone who desires to execute a QIP, EQIP, or GIP. The Investment Project Application could be submitted online, according to the LoI.

The Investment Law creates a new legal system that encourages foreign investment, including a significant incentive scheme for 19 investment sectors and activities, including digitalinfrastructure , environmental management and protection, energyefficiency , tourism, training and upskilling , logistics, research and development, infrastructure , and many others.

In the purpose of increasing the economic base, supporting innovation, and fostering the country’s economic recovery during the COVID-19 pandemic, this law is anticipated to augment Cambodia’s competitiveness and attractiveness.

Download the PDF format of LoI to study in detail: https://lnkd.in/dj2XUg93

Contact Council for the development of Cambodia for more information and help: https://cdc.gov.kh

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