Sok Xing & Hwang has the insight and expertise to provide clients the advice and solutions they need to maximize opportunities in Cambodia’s emerging market economy while minimizing risks and transaction costs.
Cambodia has displayed remarkable macroeconomic stability and growth over the past decade. Industry has been a primary source of economic growth, driven by export garment manufacturing, as well as light manufacturing, agriculture, construction and tourism-related industries.
Over the next decade, as the country moves toward greater regional integration and furthers its competitive investment strategy—including through national policies and frameworks such as the Industrial Development Policy 2015-2025, Cambodia is expected to present increased opportunities for strategic investment in labor-intensive industries and businesses.
In this context, the competitiveness of industries, and Cambodia as a whole, will depend on the ability to take strategic action informed by law, business and public policy. Targeted policy analysis and design, systemization of practices, and rigorous negotiation of contract terms and conditions are among the key structural arrangements that will maximize value and minimize transaction costs for businesses and investors.
Sok Xing & Hwang offers clients insights into the cross-cutting legal issues relevant to determinants for industrial and national competitiveness. We show how legal issues particular to the Cambodian context can be mapped, analyzed and integrated toward achieving competitive advantage in the country’s labor-intensive industries.
Based on our insights, Sok Xing & Hwang tailors services for clients to help them accomplish their objectives.
CROSS CUTTING LEGAL ISSUES
FOR LABOR-INTENSIVE INVESTMENT AND BUSINESSES IN CAMBODIA
Firm Strategy
- Form of business entities and entry mode
- Corporate governance
- System for managing labor disputes and secured use of land
- Reliable local partnerships (where applicable)
Factors of Production
- Labor (labor disputes, strikes)
- Land (secured ownership or possession); location within Special Economic Zones; expropriation
- Capital (anti-money laundering)
Demand Conditions
- Foreign anti-corruption practice rules
- Legal compliance (labor, environmental standards)
- Corporate social responsibility
- Compliance with ethical codes of international buyers
Responsive Strategy
- Investment incentives / qualified investment projects
- Access to finance
- Access to reliable platforms for resolving disputes
- Predictable and efficient import and export procedures
- Policy on foreign exchange control and repatriation of income
Government and Development Agencies
- Investment and industrial development policy conducive to attracting foreign investment and raising level and standards of employment
- Policy to support and achieve stable industrial relations (including collective bargaining framework and mechanism for managing labor strikes)
- Investment guarantees (investment treaties)