All economic growth indicators show that Cambodia is an attractive destination for foreign investment, with the economy experiencing stable and substantial annual growth, the population’s purchasing power steadily increasing, and the economy diversifying. The Cambodian government is determined to provide an open market for investment, implementing positive reforms in business registration procedures, as well as in Cambodia’s tax regime.
As a result, Cambodia has one of the fastest-growing economies in Asia, and the country has been dubbed “Asia’s New Tiger Economy” by the Asian Development Bank. At the beginning of 2017, the National Bank of Cambodia reported that foreign direct investment had increased by a staggering 25 percent in 2016, to approximately USD 2.15 billion. This growth was largely driven by reforms in Cambodia’s promising financial sector, and looks likely to continue in the coming years. These economic opportunities, however, are not without risk. As is common in the region, there is potential for corruption when doing business in Cambodia.
David Mol, an advisor in Tilleke & Gibbins’ Phnom Penh office, examines the complexities of operating within this business environment in the Cambodia chapter of The Asia-Pacific Investigations Review 2018, a guide to the important issues in internal and government investigations across the Asia-Pacific, published by Global Investigations Review.
Within the context of Cambodia’s relatively poor ranking in Transparency International’s Corruption Perceptions Index, the Cambodia chapter of the guide covers anti-corruption laws, compliance and regulations, as well as private corruption, whistleblowing, corporate liability, and foreign corruption statutes.