Cambodia Investment Review
Cambodia has secured a three-year partnership with the United Kingdom aimed at strengthening its regulatory framework and boosting investment, with both sides formalizing the initiative through a Memorandum of Understanding (MoU) signed this week.
The agreement is part of the UK-ASEAN Economic Integration Programme, delivered by the Foreign, Commonwealth & Development Office alongside the UK’s Office of Product Safety and Standards. The programme supports ASEAN members in developing transparent, evidence-based regulations to foster sustainable growth.
Supporting Cambodia’s Reform Agenda
The new initiative, titled “Supporting Regulatory Impact Assessment Reform,” will focus on embedding Regulatory Impact Assessments (RIA) into Cambodia’s policymaking process. RIA is designed to help governments assess the economic, social, and environmental impacts of proposed laws, enabling policymakers to make better-informed decisions.
Officials said the move is intended to improve governance, reduce regulatory burdens, and ensure new regulations deliver tangible benefits to both businesses and society. Cambodia has made regulatory reform a priority as it seeks to create a more transparent and predictable business environment, in line with the government’s broader reform agenda.
British Ambassador to Cambodia, Dominic Williams MBE, described the partnership as part of the UK’s support for Cambodia’s upcoming graduation from Least Developed Country (LDC) status. He noted that strong regulatory systems are vital for government efficiency, economic growth, and investor confidence.
“Good regulation doesn’t always make headlines, but when regulation goes wrong, the consequences can be severe — from financial losses to environmental damage to risks to human lives,” Williams said. “This makes the UK proud to be working with Cambodia on this critical reform.”
A Push Toward Transparency and Investment
From Cambodia’s side, Permanent Deputy Prime Minister Vongsey Vissoth welcomed the agreement, calling it an important step in advancing regulatory reform and strengthening the country’s institutions. He emphasized that smart drafting of laws and regulations is central to the Royal Government’s efforts to create a more investor-friendly climate.
“This MoU clearly states that it is a step toward achieving a key milestone in the Royal Government of Cambodia’s reform agenda, promoting the smart drafting of laws, regulations, and other legal documents, and building stronger institutions and rules,” Vissoth said.
The UK’s support is also expected to enhance Cambodia’s attractiveness to foreign investors by improving the ease of doing business and aligning local regulations with international best practices.
Regional Impact
The initiative comes as Cambodia looks to deepen its integration with ASEAN and prepare for greater global competition after its planned LDC graduation. Regulatory alignment with international standards is seen as a key factor in attracting new capital and ensuring resilience in the face of economic challenges.
The partnership reflects the UK’s broader strategy of supporting ASEAN’s regional integration while promoting sustainable development across member states.
