Cosmetics have become an essential feature of the modern lifestyle led by many consumers in Cambodia. Every day, a wide range of new cosmetic brands, variants, and formats enter the Cambodian market, catering to a growing consumer base. The market generally relies on the import of foreign cosmetic brands, making Cambodia an attractive market for overseas cosmetics companies, but local brands are on the rise as well. Alongside the significant growth of the cosmetics market in Cambodia, and the Royal Government’s continuing push to increase consumer protection in Cambodia, in 2022, the Ministry of Commerce (MOC) issued Prakas No. 0064 on the Requirements for Cosmetic Distribution (the Prakas). The Prakas applies to both locally manufactured and imported cosmetics, and both individual and businesses that trade in cosmetics. The Prakas aims to regulate cosmetics and cosmetic business activities, to ensure that cosmetics distributed in Cambodia are of good quality and safe for use.  The key points contained in the Prakas are summarized below. Legal Obligations for Trading Cosmetics Any person trading in cosmetics, including wholesale or retail, and those that offer cosmetics as gifts or for testing, must ensure that the products are safe and meet the legal labelling requirements. Anyone trading cosmetics must respect the Law on Consumer Protection, with the Prakas highlighting key aspects of that law and referring to the applicable penalties under that law. Online sellers of cosmetics must obtain an additional approval letter (for individuals) or a license (for legal entities) to operate an online business, issued by the MOC. In addition, they require a certificate for providing online services from the Ministry of Post and Telecommunications. Interestingly, the Prakas does not refer to the cosmetic business licensing required under regulations issued by the Ministry of Health. As the Prakas does not outright contradict these

Before the issuance in late 2019 of the Trade Competition Commission of Thailand’s Guidelines on Unfair Trade Practices in Franchise Businesses, which took effect in February 2020, Thai law made little mention of franchising as a business model—despite the great popularity of franchising in the country. The guidelines, which were issued under the Trade Competition Act B.E. 2560 (2017), partly made up for the absence of a single, codified franchising law in the country and offered valuable direction on how franchisors and franchisees should operate in compliance with Thai law. One of the most significant conditions introduced by the original guidelines in February 2020 was a requirement for franchisors to provide a right of first refusal to their existing franchisees before opening a new franchise outlet within current franchisees’ operating vicinity. An update to the guidelines addressing the right of first refusal was issued in August 2020. Most recently, a second update was announced on July 13, 2021. It was published in the Government Gazette on August 19, 2021, and came into force on the following day. The August 2021 update further revised this provision, and the updated guidelines now adopt a less restrictive approach for franchisors in relation to this first-refusal requirement. Under the updated guidelines, a franchisor who decides to open a new outlet, whether it will be operated by the franchisor or by another franchisee or person, must notify the existing franchisee located in closest proximity to the intended location, and provide the franchisee with a right of first refusal for a period of 30 days. However, the franchisor does not have to provide the closest franchisee with a right of first refusal if the franchisee’s existing performance does not meet the franchisor’s criteria as specified and communicated to the franchisee in advance. In determining what

On April 4, 2022, Myanmar’s State Administration Council (SAC) established the Foreign Exchange Supervisory Committee (FESC) to approve foreign currency conversion, make exemptions to foreign exchange restrictions, and permit overseas foreign currency transfers. The formation of the FESC was made official with the May 13, 2022, publication of the SAC’s Order 28/2022 in the Government Gazette, which appointed six individuals to the new committee. The FESC is the focal body tasked with implementing Myanmar’s recently adopted policy of requiring conversion of foreign currency transfers and balances to local currency. Since the policy was instituted in April 2022, the Central Bank of Myanmar issued further clarifications and instructions for banks authorized to handle foreign currency, responded to concerns from foreign investors by exempting certain foreign investment projects from the conversion requirement, and relaxed the currency conversion requirements for trade at the Chinese and Thai borders. The FESC supervises the flow of foreign currencies for domestic and foreign investment, manufacturing, exports and imports, and service businesses (including education- and health-related initiatives). The FESC is specifically responsible for considering and approving the use of foreign currency for the following: Importation of machinery, vehicles, equipment, and raw materials needed for the foreign investment and manufacturing; Importation of fuels, medicines, cooking oils, fertilizers, insecticides, and construction materials that are not available in the domestic market; Myanmar citizens’ social matters, such as going abroad for purposes of medical treatment, education, or religious activities; Importation of general goods, repayment of loan and interest payments to lenders in foreign countries, service payments, and repatriation of profits from investments; and Imports of various luxury products (e.g., brand-name goods, jewelry, sport cars, watches, etc.). The FESC will also perform other duties relating to foreign exchange management as assigned by the SAC. For more details on these foreign exchange developments,

Following the positive response to the recent Central Bank of Myanmar (CBM) announcement on the exemption of certain foreign direct investment (FDI) projects from the foreign currency conversion requirements, the CBM issued a further exemption on April 26, 2022, for exporters and importers conducting trade at the China-Myanmar or Thailand-Myanmar border. The CBM’s directive (No. 7/2022) extends the currency conversion (THB-MMK or CNY-MMK) deadline to one month, meaning that foreign currency obtained from border trade with Thailand or China no longer has to be converted into Myanmar kyat (MMK) within one day. After export earnings flow into an exporter’s account at an AD bank (i.e., a bank licensed to deal in foreign currency), the exporter can use the foreign currency as desired or sell it to the bank at the official exchange rate within one month. After one month, any unused balance remaining will be sold to the bank. Hence, banks are authorized to directly transact in the foreign currency (i.e., CNY-MMK or THB-MMK) of exporters and importers conducting border trade at the China-Myanmar and Thailand-Myanmar borders. Designated banks may carry out foreign currency settlement for imports without seeking approval from the Foreign Exchange Supervisory Committee. Export earnings, on the other hand, are to be scrutinized by AD banks to ensure that these earnings are deposited into the relevant exporter’s bank account in Myanmar in compliance with stipulations under the Foreign Exchange Management Law and its related regulations. Foreign currency transactions conducted under the China-Myanmar and Thailand-Myanmar border trade programs must be reported to the Foreign Exchange Management Department via the Border Trade Module of the department’s electronic reporting system. The day after issuing the above directive, the CBM issued a separate press release warning relevant parties to strictly comply with the Foreign Exchange Management Law and its related