Cambodia offers a strategic location in Southeast Asia with an open economy and attractive investment incentives. This guide covers key regulations for foreign investors under the new Law on Investment.
Cambodia has rapidly emerged as one of the most attractive investment destinations in Southeast Asia. With a stable macroeconomic environment and business-friendly government policies, the Kingdom offers significant opportunities for foreign investors.
- The Law on Investment (LOI)
The Law on Investment, promulgated in 2021, provides a transparent legal framework for investing in Cambodia. It establishes the Council for the Development of Cambodia (CDC) as the primary agency for approving investment projects.
- Key Incentives for Investors
Registered Qualified Investment Projects (QIP) are eligible for substantial benefits, including:
• Tax Holidays: Income tax exemption for 3 to 9 years, depending on the sector.
• Duty-Free Imports: Exemption on import duties for construction materials, production equipment, and production inputs.
• VAT Exemptions: Specific VAT exemptions for export-oriented industries.
- Foreign Ownership
Unlike many of its neighbors, Cambodia allows 100% foreign ownership in almost every sector. There is no requirement for a local partner, except for land ownership (which requires 51% Cambodian ownership, though long-term leases are available).
- Currency and Capital Repatriation
Cambodia has a highly dollarized economy, which reduces exchange rate risks for investors. The law guarantees the right to freely repatriate profits, capital, and interest abroad through authorized banks.