Thailand
Cambodia: Government preparing to discuss new draft investment law
The government is planning to discuss a new law to stimulate investment in the country. The Office of the Council of Ministers will hold a virtual meeting on Friday to review the draft law, following the approval of Mr Hun Sen. The prime minister will officiate over the meeting.
The new law is one of a series of investment initiatives, which began in 1994, following approval after the first parliamentary elections in the previous year. The investment law was amended in 2003 to reflect developments in Cambodia’s economy and society.
The government says it wants to come up with a new law that is both attractive and highly competitive. It will review the legal framework and draft new regulations that suit Cambodia’s needs and also work in a regional context. It says the current investment laws are more open than those of some countries in the region.
Cambodia reported its highest ever foreign direct investment (FDI) in 2019 at $3.7 billion, according to the 2020 World Investment Report by the United Nations Conference on Trade and Development. Its main investors were China, which accounted for 43 percent of FDI in the Kingdom, South Korea which contributed 11 percent, Vietnam at 7 percent and Japan and Singapore, tied at 6 percent. The rise came even as the region saw a 27 percent drop in FDI to $9 billion.
In spite of the global Coronavirus pandemic, FDI in Cambodia fell only 1 percent last year, according to the National Bank of Cambodia’s Financial Stability Review. FDI to the financial and banking sector grew 12.8 percent in 2020 because of reinvested earnings and brought-in capital for new banks.
Source: https://www.khmertimeskh.com/50888821/government-preparing-to-discuss-new-draft-investment-law/