Cambodia Investment Review
The European Chamber of Commerce in Cambodia (EuroCham), representing a significant portion of the private sector, has formally requested the Royal Government of Cambodia’s intervention in addressing critical challenges impacting several industries. In a letter addressed to H.E. Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC), EuroCham expressed its gratitude for the government’s ongoing collaboration while also highlighting specific concerns from various committees within the chamber.
Automotive Industry Concerns The Automotive Committee raised alarms over unauthorized distributors who are importing vehicles at undervalued prices, resulting in unfair competition that has caused local assemblers to cease operations. Currently, there are eight automobile assembly plants in Cambodia, but the influx of lower-priced imports threatens their viability. EuroCham proposed that the government implement measures to prevent these unauthorized imports and ensure a level playing field by mandating accurate declaration of the actual value of imported vehicles for customs purposes.
Agribusiness Sector Challenges In the agribusiness sector, EuroCham’s Agribusiness Committee brought forward concerns regarding the protection of land under Economic Land Concessions (ELCs). Companies such as Phu Rieng Kratie Aphivath Caoutchouc Co., Ltd., which operates rubber plantations across nearly 4,900 hectares in Kratie Province, have faced ongoing issues with land encroachment. Despite following due process, these companies struggle with local authorities and village chiefs, who continue to assign land to villagers without proper consultation. The encroachment has affected 394.70 hectares of registered and protected land, including cases where families have received land use letters signed by local authorities.
Sustainability and Green Investment EuroCham also addressed sustainability concerns through its Green Business Committee, highlighting the need for Cambodia to align with the European Union Corporate Sustainability Due Diligence Directive (CSDDD) set to be enforced in 2026. The committee pointed out that Cambodia’s current regulations are underperforming in attracting environmentally friendly investments, particularly in areas such as textile and waste recycling. Furthermore, the committee emphasized the importance of developing a framework that supports private solar rooftop investments, which have been successful in neighboring countries like Vietnam, but are hindered in Cambodia by complicated regulations and high electricity costs.
Transport and Logistics Sector The Transport and Logistics Committee, responding to Prime Minister Hun Manet’s vision of establishing regional logistics hubs, proposed several key policy updates. Among them, the adoption of a transshipment regulation specific to air transport was emphasized as crucial for enhancing Cambodia’s competitiveness. Additionally, the committee recommended expediting cross-border procedures through improved IT systems and the development of a dedicated logistics center at Techno International Airport. These initiatives aim to position Cambodia as a central hub for Southeast Asian air logistics, fostering economic growth through increased trade volumes and related services.
