Cambodia’s evolving investment law framework is driving the economy’s attractiveness for foreign investors in 2025 and turning the market into a “hub for efficient investments”, according to a recent analysis by Indian-based media outlet, Global Indian Network. The analysis detailed key benefits, risks, and strategies for foreign investors looking to successfully enter the Cambodian market.

According to the analysis, the Law on Investment of the Kingdom of Cambodia, which was last amended in 2022, is increasingly offering incoming investors tailored, unique opportunities that allow for increased investment activity.

Further, the analysis detailed that key features of Cambodia’s investment regulation framework that are supporting increased private investments by international firms in recent periods include the ability to hire foreign staff within operations, the assurance of comprehensive protection to investors, guaranteeing against nationalization and allowing the free repatriation of profits in foreign currencies, as well as opportunities to benefit from access to international arbitration for resolving disputes.

On top of this, the ability for foreign investments to be classified as Qualified Investment Projects (QIPs) is actively encouraging investments across a range of high-priority sectors, including technology and research and development (R&D).

QIPs gain basic incentives such as tax holidays and income tax exemptions for defined periods, noted the report, along with the potential application for special incentives; including tax incentives, value-added tax (VAT) exemptions on production inputs, and customs duty exemptions for production equipment and raw materials.

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Reporter: James Whitehead

Publication date: 17 January 2024

Source: Khmer Times