Cambodia Investment Review
At the IBC General Meeting held in May 2024, DFDL, led by Vansok Khem, Partner and Head of Cambodia Corporate and Commercial Practice, outlined a series of significant legal updates impacting Cambodia’s business and labor sectors. These changes are designed to streamline operations, enhance transparency, and foster a more conducive environment for both local and international investors. Here are the key legislative updates discussed:
- Law on Waterway Transport:
- Promulgated on March 23, 2024.
- Aims to enhance the management and efficiency of Cambodia’s waterborne logistics, crucial for trade and tourism.
- Expected to elevate safety and operational standards within the sector.
- Prakas 037 on Fintech Regulatory Sandbox:
- Issued by the Non-Bank Financial Services Authority on August 4, 2023.
- Establishes a regulatory sandbox allowing fintech companies to test new products and services.
- Encourages innovation while ensuring consumer protection in the non-bank financial sector.
- Prakas 005 on Corporate Governance for Insurance Companies:
- Effective as of January 15, 2024.
- Sets stricter corporate governance standards to increase stability and integrity in the insurance industry.
- Enhances consumer confidence and ensures fairness in insurance practices.
- Prakas 095 on Unfair Practices in Business Related to Advertisement and Sale Promotion:
- Issued by the Ministry of Commerce on April 12, 2024.
- Outlines regulations against deceptive advertising claims such as “the best” or “number one” without proper certification.
- Sets forth conditions for promotional activities, ensuring transparency and fairness.
- Instruction 110 on Work Permits for Foreign Nationals:
- Issued by the Ministry of Labour and Vocational Training on December 28, 2023.
- Provides clarifications for issuing work permits to foreign national employers/employees in Cambodia.
- Ensures legal compliance and contributes to the local economy under clear legal standards.
Vansok Khem expressed the importance of these updates, stating, “These legal developments and new law are critical as they address the evolving needs of our economy and ensure that our legal frameworks are in line with international standards.” The developments are part of a broader effort by the Cambodian government to attract more foreign investment and improve business operations through enhanced regulatory clarity and efficiency.
These legislative updates not only aim to refine the operational landscape for businesses and investors but also ensure greater consumer and employee protection. As Cambodia continues to integrate into the global economy, these reforms are expected to foster a more transparent, efficient, and competitive business environment.
