Lexology Panoramic: Foreign Investment Review 2025, Cambodia
- Andrew Millar
- Aug 31
- 2 min read
Tilleke & Gibbins
Report Description
20th February 2025 (PDF, 14 pages)
This Tilleke & Gibbins contribution to the Foreign Investment Review 2025, Cambodia, provides a comprehensive legal and regulatory analysis of foreign investment oversight, covering laws, procedures and competition frameworks, while highlighting new regulatory developments affecting mergers and acquisitions.
Summary
The guide explains Cambodia’s approach to foreign investment, noting the absence of extensive review mechanisms but outlining relevant laws and compliance requirements. It also highlights how recent competition law reforms and notification thresholds impact cross-border investors:
Law on Investment guarantees equal treatment for foreign and domestic investors, but restrictions remain on foreign ownership of land.
Qualified Investment Projects (QIPs) benefit from tax holidays of up to 9 years and exemptions on import duties.
Cambodia’s economy is highly dollarised, with the US dollar widely used in transactions and foreign exchange operations guaranteed free transfer rights.
Key regulations include the Law on Commercial Enterprises, the Law on Competition and the Law on Foreign Exchange, with recent updates clarifying merger controls.
The Competition Commission of Cambodia has broad discretion in reviewing mergers, with thresholds triggering notification at approx. USD $7.6 million to USD $246.5 million, depending on the sector.
Penalties for violations of the Competition Law include fines of up to 80% of revenue and potential withdrawal of licences or imprisonment.
In March 2023, three new regulations were issued to strengthen merger review and enforcement, introducing detailed thresholds, procedures and penalties.
About Foreign Investment Review
The Foreign Investment Review series provides jurisdiction-specific analyses of foreign investment laws and oversight procedures across multiple countries.
Each edition examines policy frameworks, review processes and trends, offering legal and practical insights for investors.
The Cambodia chapter is part of a comparative global series hosted by Lexology, updated annually with contributions from leading law firms
About Tilleke & Gibbins
Established in Bangkok in 1890, Tilleke & Gibbins is a leading Southeast Asian law firm with offices across the region, recognised for expertise in corporate and commercial law.
Today, it has over 250 lawyers and consultants across Cambodia, Indonesia, Laos, Myanmar, Thailand and Vietnam. The firm advises international investors on regulatory compliance, competition and investment structuring.
The firm opened its Phnom Penh office in 2015, building upon long-standing representation of clients active in Cambodia, and contributes regularly to global legal reviews and investment-focused publications.