Foreign direct investment (FDI) has become increasingly more attractive in Cambodia for the better half of a decade due to consistent, robust growth rates, increased purchasing power of the population, and diversification of the economy. In addition, the Cambodian government has been steadfast in maintaining an open market for investment, and has put forth great effort in expanding the tax regime and implementing reforms to encourage corporate compliance.
Statistics have shown annual economic growth in Cambodia of around seven percent each year since 2011, and that growth trend is expected to carry through to at least 2019. In March 2018, the Ministry of Economy and Finance confirmed that FDI had increased to US$2.5 billion in 2017, and is expected to reach US$3 billion in 2018. This continued upward trend is being propelled by a 27 percent increase in construction and a 36 percent increase importation from the previous year. While the statistics are promising, investors should thoroughly understand the risks of doing business in Cambodia where corruption remains a large player.
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 2019 , a guide to the important issues in internal and government investigations across the Asia-Pacific, published by Global Investigations Review.
The Cambodia chapter of the guide covers anti-corruption laws, compliance and regulations, private corruption, whistleblowing, corporate liability, and foreign corruption statutes, as well as providing some important context for the operation of this legal framework. The chapter is available to download in full below.