Executive Summary

• Under the 2021 Investment Law, the new mixtures of generous incentive schemes are practically modifying business and investment climate in Cambodia into an attractive asset.
• The 2021 Investment Law stretches a lot of realistic flexibilities for the government to steer its investment policy direction in grabbing all the opportunities sparking up from the latest regional and global development without amending the law in order to incentivize specific types of investment projects in attracting those sudden investment inflows.
• The promulgation of Cambodia’s new Investment Law at this time set off the right combination between the upward global trend of the production network restructuring and the readiness at the national level to embrace the relocation of production network in Cambodia, especially in the context of the Covid-19 recovery.
• With the leverage as an ASEAN Chair in 2022, Cambodia is able to drive several ambitious issues into the agenda as its key priorities and deliverables under its Chairmanship for the sake of its regional and national interests as well.
• The main objective of this paper is to examine on the key regulatory framework progress that has been made on the investment laws and its implication to Cambodia in the aspects of global value chains and international trade landscape.