The government has approved the draft investment law, following a plenary session of the Council of Ministers chaired by Prime Minister Hun Sen via a Zoom call on July 9.
"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.
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. It also addresses dispute settlements related to investment projects.
Seeing how Covid-19 has badly impacted global and regional economies including Cambodia, the investment law is a crucial tool to attract foreign direct investment and domestic investment.
Studies and drafting of the law were carried out by the Council for the Development of Cambodia which had several times consulted private sector representatives and other stakeholders to gather input.