Introduction

Currently, there are approximately 400,000 to 800,000 Muslims living in Cambodia and many of them are living in either poverty or low income families. As such, they form a group that are most in need of financial assistance to support basic living standards and to conduct business.

On 23 June 2023, the Royal Government of Cambodia (“RGC”) issued Sub-Decree 139 on the Implementation of the Law on Investment of Cambodia (“Sub-Decree 139”). Sub-Decree 139 provides detailed procedures for registering investment projects, provides an updated Negative List, and classifies business activities into different groups for investment incentives, including tax exemptions, special depreciation, and other benefits.

1. Introduction

On 24 March 2023, the Ministry of Commerce (the “MOC”) and the National Bank of Cambodia (the “NBC”) issued a joint press release on the implementation of the Law on Consumer Protection and Prakas on Unfair Contract Clauses in the Banking and Financial Sector (the “Press Release”). Pursuant to the Press Release, the MOC and NBC, among other things:

  • noted that they have observed a number of standard form contracts containing “unfair” clauses in standard form contracts;
  • requested banks and financial institutions (“BFIs”) to operate in accordance with the Law on Consumer Protection and Prakas on Unfair Contract Clauses; and
  • encouraged members of the general public to report “excessive exploitation” in standard form contracts.

The Law on Clean Water Management (the “Law”) was just adopted on 11 March 2023. The Law is a new regulatory scheme for the management of clean water supply services in Cambodia and contains the following important features.

This Law defines the legal framework for the management and development of clean water supply in Cambodia in order to ensure quality, safety, and affordability of clean water supply services as well as contribute to enhancing the public welfare and the living conditions of the citizens in an inclusive manner. This Law applies to the commercial supply of clean water throughout Cambodia.

The Law on Competition (“the Law”) was enacted in 2021 to regulate business activities which significantly prevent, restrict or distort competition in the Cambodian market. The Law covers three pillars including (1) Anti-Competitive Agreements, (2) Abuses of Dominance and (3) Anti-competitive Business Combinations (Mergers) where they have effects within Cambodian markets.

With regards to the third pillar, the Law states that any Business Combination which has or may have the effect of significantly preventing, restricting or distorting competition in the Cambodian market shall be prohibited. The requirements and procedures for Business Combinations are to be determined by a Sub-Decree.

INSIGHTS

In August 2015 HBS Law revealed its new website. The rebrand is designed to reflect HBS Law's position as a leading Cambodian law firm with an Asian regional reach.

"We are increasingly working with clients who have a presence throughout the region, as well as with foreign investors coming into Cambodia," says Mr Ly, Managing Director of HBS Law. "We are proud to offer honest, balanced services to our clients, acting as trusted business partners to help them succeed."

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