This information comes from the assessment conducted in country for the Cambodia report, which was published in April 2007.
Cambodia’s entry into the World Trade Organization (WTO) in 2004 was an enormous achievement, signaling to the world that, after years of brutal strife and conflict, Cambodia is ready to conduct business under a common set of rules. In addition, Cambodia has developed several bilateral trade agreements and is particularly active in regional initiatives, including the Association of Southeast Asian Nations (ASEAN).
As an investment destination, Cambodia attracts increasing interest from companies throughout the world; it now offers compelling opportunities in banking, insurance, consumer and retail marketing, construction, energy, hotels and tourism, mining, cement production, agro-industry, and export and domestic-oriented manufacturing, as well as support sectors including industrial estates, ports, telecommunications, and transport services.
Recent years have shown increased public participation in legal development and economic integration, including a thriving non-government organization (NGO) sector; a growing community of young professionals who have been trained internationally and speak English; widespread, budding efforts to incorporate international practices, such as International Accounting Standards; and an improving infrastructure for movement of goods, services, and money. Cambodia has developed a core set of business-friendly laws, including a modern company law, a new customs law, and an unusually strong secured transactions law, and seeks to draft and pass additional laws, with considerable donor support, before the end of 2008. Also, Cambodia’s progressive labor law supports strong worker protections and thus can be regarded as a potential advantage for foreign investors concerned about their reputations in the labor market.
Against this backdrop, Cambodia is now challenged with integrating the commitments of its membership in various trade agreements into its legal and institutional infrastructure. This challenge includes meeting its many specific commitments pertaining to its trading regime made during the WTO accession process, including continued reform of its legal framework. In addition, current perceptions of corruption in government institutions continue to undermine the competitive advantages Cambodia offer
