Cambodia
This first OECD Investment Policy Review of Cambodia uses the OECD Policy Framework for Investment to present an assessment of the investment climate in Cambodia and to discuss the challenges and opportunities faced by the Royal Government of Cambodia in its reform efforts. It includes chapters on investment trends and industrial structure, competitiveness and diversification, improving business regulation, investor protection, investment promotion, good regulatory practices, infrastructure, the investment framework for green growth, corporate governance, competition policy and how ODA is being used to improve the investment climate.
The SME Policy Index is a benchmarking tool for emerging economies to monitor and evaluate progress in policies that support small and medium-sized enterprises. The ASEAN SME Policy Index 2018 is a joint effort between the Economic Research Institute for ASEAN and East-Asia (ERIA), the Organisation for Economic Co-operation and Development (OECD) and the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME). The report is the outcome of work conducted by the ten ASEAN Member States (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam).
Divided into eight policy dimensions, it builds on the previous edition of the ASEAN SME Policy Index 2014. The current edition presents an updated methodology which makes this document a powerful tool to assess the strengths and weaknesses that exist in policy design, implementation, and monitoring and evaluation for SMEs, and allows for a benchmarking of the level to which the ASEAN Strategic Action Plan for SME Development (SAP SMED) 2016-2025 has been implemented. Its objective is to enhance the capacity of policy makers to identify policy areas for future reform, as well as implement reforms in accordance with international good practices.
The report provides a regional perspective on recent developments in SME-related policies in Southeast Asia as well as in individual ASEAN Member States. Based on this analysis the report provides a menu of concrete policy options for the region and for the individual countries.
In 2017, the Royal Government of Cambodia published a new Social Protection Policy Framework (SPPF), providing an ambitious vision for a social protection system in which a comprehensive set of policies and institutions operate in sync with each other to sustainably reduce poverty and vulnerability.The Social Protection System Review of Cambodia prompts and answers a series of questions that are crucial for the implementation ofthe framework : How will emerging trends affect the needs for social protection, now and into the future? To what extent are Cambodia’s social protection instruments able – or likely – to address current and future livelihood challenges? How does fiscal policy affect social protection objectives?
This review provides a contribution to the ongoing policy dialogue on social protection, sustainable growth and poverty reduction. It includes four chapters. Chapter 1 is a forward-looking assessment of Cambodia’s social protection needs. Chapter 2 maps the social protection sector and examines its adequacy. An investigation of the distributive impact of social protection and tax policy is undertaken in Chapter 3. The last chapter concludes with recommendations for policy strategies that could support the establishment of an inclusive social protection system in Cambodia, as envisaged by the SPPF.
Interrelations between Public Policies, Migration and Development in Cambodia is the result of a project carried out by the Cambodia Development Resource Institute (CDRI) and the OECD Development Centre, in collaboration with the Ministry of Interior and with support from the European Union. The project aimed to provide policy makers with evidence on the way migration influences specific sectors – the labour market, agriculture, education and investment and financial services – and, in turn, how sectoral policies affect migration. The report addresses three dimensions of the migration cycle that have become an important part of the country's social and economic contexts: emigration, remittances and return.
The results of the empirical work confirm that even though migration contributes to the development of Cambodia, the potential of migration is not fully exploited. One explanation is that migration only appears to a very limited extent in the National Strategic Development Plan. Many policy makers in Cambodia do not sufficiently take migration into account in their respective policy areas. Cambodia therefore needs to adopt a more coherent policy agenda to do more to integrate migration into its National Strategic Development Plan, improve co-ordination mechanisms and strengthen international co-operation. This would enhance the contribution of migration to development in the country.
This edition of the Southeast Asian Economic Outlook examines medium-term growth prospects, recent macroeconomic policy challenges, and structural challenges including human capital, infrastructure and SME development. It also looks at economic disparities “between” and “within” countries in the region. It provides coverage for Brunei, Cambodia, China, India, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Viet Nam.
While solid growth is forecast to continue until 2017, countries must address structural issues in order to sustain this favourable outlook. Narrowing development gaps presents one of the region’s most important challenges.
The SIGI 2023 profile for Cambodia provides a comprehensive overview of the state of gender equality in the country, as measured by the OECD’s Social Institutions and Gender Index (SIGI). The full SIGI Country Profile for Cambodia is available at: OECD Development Centre (2023), “Cambodia SIGI Country Profile”, SIGI 2023 Country Profiles, OECD, https://oe.cd/sigi-dashboard. The fifth edition of the SIGI, released in 2023, assesses 140 countries based on the level of gender-based discrimination in their social institutions. These discriminatory social institutions encompass both formal and informal laws, as well as social norms and practices that restrict women’s and girls’ access to rights, justice, empowerment opportunities and resources, thereby undermining their agency and authority.
Cambodia is a key tourist destination home to Angkor and the Preah Vihear Temple, both UNESCO World Heritage Sites. A secondary attraction is the seaside resort destination of Sihanoukville and further beach tourism developments emerging from the Kep Tourism Development Master Plan (2022-35). The construction of new international airports at Phnom Penh and Siem Reap is expected to usher in a period of increased travel to Cambodia, with accommodation for larger planes and expanded welcome capacity.
This chapter presents the country profile for Cambodia. It provides an overview of the current de jure requirements for the institutions, tools and processes of regulatory governance and, where possible, how these have been implemented in practice. The profile focus on three aspects of regulatory governance pertinent to the past, present and near future of regulatory reforms in the ASEAN region. The first is whole-of-government approachesto regulatory policy making, including national and international commitments to better regulation that are driving domestic reform processes. The second is the use of good regulatory practices, including regulatory impact assessments (RIAs), stakeholder engagement and ex post review. The third is approaches to digitalisation, or how countries are using digital tools to respond to regulatory challenges, and is the newest frontier for better regulation reforms in both ASEAN and OECD communities. The information contained in this and the other profiles serves as the basis for the analysis of trends in regulatory reform presented in Chapter 1.
This chapter reviews the provisions in both domestic legislation and Cambodia’s international investment agreements offering protections for covered investors. It looks first at the domestic regulatory framework in Cambodia, particularly the Investment Law, but also the protection of both intellectual property and land rights. It then discusses the national framework for dispute resolution. The second part looks at the evolving debate about international investment agreements and how Cambodia’s approach fits in with emerging trends in other countries.
This chapter describes Cambodia's investment framework in these areas, providing an overview of the elements of the policy framework for green investment that have been instituted. It reviews the policy framework for improving the quality of investments in natural resources, examines in greater depth existing efforts and the potential to engage the private sector to scale up renewable energy and investment in climate friendly agri-business.
This chapter looks at the institutional set up for investment promotion in Cambodia, along with the two central pillars of that platform: special economic zones and investment incentives. It looks at how the government could make better use of both zones and incentives to promote investment, diversify the economy and enhance the benefits to the local economy from that investment.
This chapter looks at the extent of diversification of the Cambodian economy and developments which might erode the competitiveness of the garments sector, which has been central to export-led development over the past two decades. It looks at various measures that can be taken to improve productivity and competitiveness in the manufacturing sector, notably by promoting linkages, strengthening firms’ absorptive capacity, addressing skills shortages, enhancing trade facilitation and improving infrastructure connectivity.
This chapter looks at steps taken by the government to implement good regulatory practice in Cambodia to improve both regulatory quality and government capacity. An important tool in the toolbox for improving governance is regulatory impact analysis (RIA). The chapter describes how the authorities are gradually introducing RIA into the legislative process.
This chapter reviews the regulatory framework for starting and operating a business in Cambodia and the quality of implementation in terms of transparency, clarity, predictability and fairness, as well as the extent of corruption. The chapter also discusses the extent of public consultation in Cambodia when laws and regulations are amended. The last section benchmarks the relative openness to foreign investment, an area where Cambodia far exceeds many of its rivals.
This chapter considers how Cambodia could promote and enable responsible business conduct (RBC) as a strategic choice by mainstreaming RBC at a government level and clearly communicating RBC priorities and expectations. The chapter traces Cambodia’s success in the garment sector to the steps taken to promote safe sourcing beginning in the 1990s and looks at the growing importance of RBC within global supply chains. It also considers how multi-stakeholder consultations could be expanded and suggests that Cambodia could consider a National Action Plan for RBC.
This chapter reviews the investment trends and industrial structure in Cambodia. It describes the relatively strong performance of the Cambodian economy in attracting foreign investment but also the need to further diversify sources of FDI by sector and by country.
This chapter considers other aspects of the policy framework for investment of relevance to Cambodia, namely corporate governance, competition policy and the role of development partners in promoting private sector development. It documents improvements made recently in the corporate governance framework, as well as the challenges in its overall implementation. On competition policy, it discusses the absence of a general competition law in Cambodia and makes recommendations concerning what should be included in the draft law as it makes its way through the legislative process. And lastly, the chapter reviews what development partners are currently doing to promote private sector development in Cambodia.