National Assembly passes three draft commerce-related legal instruments
National Assembly passes three draft commerce-related legal instruments
The National Assembly (NA) on December 29 unanimously passed (102-0) three major commerce-related draft laws, which are expected to strengthen transparency and consistency in the legal system, improve the business environment and support socio-economic recovery as the Kingdom emerges from the Covid-19 crisis.
Initiated by the Ministry of Commerce, two of these draft bills respectively amend the Law on Commercial Enterprises (“LCE”) and Law on Commercial Regulations and the Commercial Register (“LCRCR”), while the other authorises the ratification of the bilateral Cambodia-Korea Free Trade Agreement (CKFTA).
The draft laws will now be sent to the Senate for a vote. If approved, the bill will be returned to the NA to proceed with a signature from the King – or acting head of state – to become law.
Minister of Commerce Pan Sorasak vowed to work closely with relevant ministries and national and international institutions to help shape the effective implementation of these legal instruments.
Cambodia Chamber of Commerce vice-president Lim Heng underscored the importance of the documents, saying the LCE and LCRCR amendments are designed to ensure that the scope of automated systems used by the government run smoothly, transparently and to high standards, to improve ease of doing business in the Kingdom.
He said the amendments were also geared in part towards preparing Cambodia for Industry 4.0 and the evolution of global trade technologies.
Signed just over a year after the Cambodia-China Free Trade Agreement, the CKFTA will enable more investment between the Kingdom and South Korea – especially in the processing of Cambodian products – and further ratchet up exports in either direction, Heng said.
The CKFTA is widely regarded as a major driving force for trade and investment flows between the two countries, aimed at fostering mutually beneficial economic development, improving business ties and promoting the wellbeing of the peoples.
Royal Academy of Cambodia economics researcher Ky Sereyvath told The Post that the three laws would support economic growth in 2022, equip the Kingdom to better cope with and overcome situations of economic crisis, bring more stages of the global value chain into the country, and shift production from garments to electronics and other higher value-added industries.
He suggested that given the current level of garment production and corresponding revenue, the Kingdom can afford to make the switch, which he declared as necessary, saying the process would further improve economic flows.
“In general, the law merely paves the way for businesses, makes things easier for the private sector, and I reckon that production will be able to grow due to government reforms in areas such as taxes and customs duties.
“I remain optimistic that the government will be able to do it, even if things are not immediately implemented 100 per cent,” Sereyvath said.
