Cambodia, Korea discuss ways to boost investment climate

Cambodia, Korea discuss ways to boost investment climate

The meeting addressed the pressing challenges faced by Korean business leaders and offered solutions to support their operations in Cambodia, says Deputy PM Chanthol.

The Council for the Development of Cambodia (CDC) and the Korean Embassy yesterday co-hosted the 2nd Public-Private Sector Dialogue (PPS-D), to address five unresolved issues raised by Korean firms related to tax, legal, investment and project concerns.

The PPS-D was co-chaired by Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the CDC, and Park Jung-Wook, Korean Ambassador to Cambodia, in Phnom Penh.

Addressing the meeting, the Deputy Prime Minister said that this was the second dialogue between the Cambodian government and the Korean private sector, following the initial round held on October 24 last year.

Chanthol said, “The dialogue, held every six months, is designed to address challenges faced by Korean business leaders in Cambodia and offer practical solutions to support their operations and strengthen bilateral economic cooperation.”

Expressing pleasure in taking part in the 2nd P-PSD, Ambassador Park emphasised that the dialogue serves as a great opportunity and platform to improve Korean business operations, particularly in the investment climate in Cambodia.

“I evaluated that the first meeting was very productive and fruitful. Many issues in Korean main businesses in Cambodia were resolved,” Park said, hoping that this second-round meeting would address the remaining and emerging challenges.

He outlined five unresolved challenges from the first meeting, presenting them on the agenda along with proposed measures and recommendations for consideration by the Cambodian interministerial delegation.

First, on the improvement of (Value-Added Tax) VAT refund measures and the reduction of management costs due to excessive tax audits, as the Korean side shared the survey results conducted among their enterprises, with a specific case raised at the discussion table.

Eng Ratana, Director of the Large Taxpayer Department at the General Department of Taxation (GDT), responded to the two main concerns raised under the first issue, offering clarifications and potential approaches to address the Korean side’s feedback.

Second, on the improvement of the auction procedure regarding the loan collateral assets, where the Korean side requests an explanation regarding the suggestion to utilise the public notary services for expediting of process, responded by Tanheang Davann, Secretary of State of the Ministry of Justice (MoJ).

The MoJ Secretary also explained in detail on the third challenge related to outsourcing contracts for the Economic Development Cooperation Fund (EDCF) – a $3 billion project reached between the governments of both countries on May 16, 2024 – as the Korean side sought an update on status and the Royal Government’s plans for resolution.

Fourth, the Ambassador requested a reasonable solution for financial transactions related to investment failure in Kampot, answered by Ngan Tharit, Deputy Governor of Kampot Province, and Men Pheakdey, Director of Macro-Surveillance and Supervisory Data Management of the National Bank of Cambodia (NBC).

Lastly, Chea Vuthy, Secretary General of Cambodian Investment Board (CIB) of CDC, clarified on the eligibility of Quality Investment Project (QIP) enterprises under the new ‘Law on Investment of the Kingdom of Cambodia’ as the counter part requested a clear legal interpretation whether QIP under the old investment law can still benefits from the newly amended rule.

khmertimeskh