The Council for the Development of Cambodia (CDC) has completed the drafting of the long-awaited new Law on Investment. The draft will be later tabled at the Economic and Financial Policy Committee before being submitted to the Council of Ministers and the National Assembly for elaboration, and is expected to enter into force by the end of the first semester of 2021, if things go smoothly.
The new draft law is expected to enhance predictability and boost further incentives on top of the existing ones.
New incentives have been developed based on long-term consultations with the private sector and internal discussions among key government stakeholders. Within the government, introducing new incentives is the constant battles between dual duties and dilemma between the need to maintain and increase revenue collection, and the need to nurture long-term business and attract new investment. It is a “chicken-and-egg” discussion on which should come first, all the while without compromising the current level of national revenue.
The 21st Cambodia-Japan Public-Private Sector Meeting held on February 11 can offer a good glance of dialogue between public and private sectors on terms and conditions for investment, and even internal cross-sectoral debates between various government stakeholders. This platform is rather uniquely targeting Japanese investors, with a no-nonsense atmosphere and attachment to technical details saved for serious and real business dealings on the ground.
Full article available: https://www.phnompenhpost.com/opinion/cambodias-new-draft-law-investment-and-its-effects