The Council of Ministers, or Cabinet, on July 9 approved the Draft Law on Investment, following a plenary session chaired by Prime Minister Hun Sen via a Zoom call.

Once enacted, the new law will replace existing legislation – the 1994 Law on Investment and 2003 amendment, according to a press release on the minutes of the session.

Optimism is high that the law will be a crucial provider of new and greater options to absorb more local and foreign investors.

“The law is aimed at increasing Cambodia’s potential at attracting more domestic and foreign investors,” Hun Sen said, adding that peace and stability are key priorities for investors.

“We see that investors prioritise this when deciding on Cambodia as an investment destination, regardless of the global situation on politics and trade,” he added.

Comprising 12 chapters and 42 articles, the law is designed to offer more appropriate and effective investment benefits on the basis of independence, ownership and the economic situations of the investors and the nation, according to the press release.

It will also strengthen complementary capabilities, in particular to take into consideration incentives for priority areas, technological innovation and technical assistance, job creation, skills training, research and development, and small- and medium-sized enterprises.

According to government spokesman Phay Siphan, the draft law on investment was initiated under the Cambodian Industrial Development Policy 2015-2025.

Its objective is to establish an open, transparent, predictable legal framework that is conducive to investment and to attract and promote investment by Cambodians or foreigners in a quality, efficient and effective manner for the socio-economic development of Cambodia.

The law will raise Cambodia’s competitiveness and productivity of local industries, establish investment incentives, strengthen connectivity to regional and global supply chains, ensure economic diversification, and protect the rights and interests of investors.https://www.phnompenhpost.com/business/cabinet-approves-investment-law