Investment Incentives

Investment IncentivesThe Royal Government of Cambodia views private sector investment as integral to the development of the nation. Under the 1994 Law on Investment (amended in 2003) the Council for Development of Cambodia /Cambodian Investment Board (CDC/CIB), offers attractive incentives to potential investors. For those companies that qualify for the investment incentives, benefits can include a waiver of import duties for equipment and machinery, a waiver of export duties for finished products, and a tax holiday for a specified time.

The Investment Law was supplemented with a Sub-Decree on the Establishment of Special Economic Zones (SEZ) (2005). The principal virtue of the SEZs is that all of the relevant governmental offices and authorities will be located in the zone, in order to expedite and make more transparent the processing of the various permits and licenses required by the investors.

The financing of investment projects can be accomplished in a number of ways. In addition to loans from foreign and local banks, there are a number of multilateral and bilateral institutions which are active in supporting private sector investment and infrastructure development in Cambodia. For example, the World Bank, the International Finance Corporation (IFC), and the Asian Development Bank (ADB) are all active, as well as a number of bilateral agencies such as Japanese International Cooperation Agency (JICA), Overseas Private Investment Corporation (OPIC) and a host of other development agencies with a focus on private sector development.



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