RESTRICTED  
  
WT/TPR/S/364  
17 October 2017  
(17-5584) Page: 1/134 
Trade Policy Re view Body   
 
 TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
CAMBODIA  
This report, prepared for the second Trade Policy Review of Cambodia, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Cambodia on its trade policies 
and practices.  
 
Any technical questions arising from this report may be addressed to Sergios Stamnas 
(tel: 022 739 5382) and Usman Ali Khilji (tel: 022 739 6936).  
 
Document WT/TPR/G/364 contains the policy statement submitted by Cambodia.  
 
 
Note: This report is subject to restricted circulation and press embargo until t he end of the 
first session of the meeting of the Trade Policy Review Body on Cambodia. This report was drafted 
in English.  WT/TPR/S/364 • Cambodia  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  11 
1.1   Main Features of the Economy  ................................ ................................ ..................... 11 
1.2   Recent Economic Developments  ................................ ................................ ................... 11 
1.2.1    Monetary and exchange rate policies  ................................ ................................ .......... 14 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 15 
1.2.3    Structural issues  ................................ ................................ ................................ ......15 
1.2.3.1    Diversification and competitiveness  ................................ ................................ ......... 15 
1.2.3.2    Business environment  ................................ ................................ ........................... 16 
1.2.3.3    Financial sector reforms  ................................ ................................ ......................... 16 
1.2.3.4    Tax reform  ................................ ................................ ................................ ........... 16 
1.2.4    Balance of payme nts ................................ ................................ ................................ 17 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 18 
1.3.1    Trends and patterns in merchandise trade  ................................ ................................ ..18 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 20 
2   TRADE AND INVESTMENT  REGIMES ................................ ................................ ...........  22 
2.1   General  Framework  ................................ ................................ ................................ ....22 
2.1.1    Executive branches of government ................................ ................................ ............. 23 
2.1.2    Advisory bodies  ................................ ................................ ................................ .......23 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 23 
2.2.1    Trade laws and regulations  ................................ ................................ ....................... 24 
2.2.2    Transparency  ................................ ................................ ................................ .......... 25 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 27 
2.3.1    WTO ................................ ................................ ................................ ...................... 27 
2.3.2   Regional and preferential agreements  ................................ ................................ ........ 28 
2.3.2.1    Association of Southeast Asian Nations (ASEAN)  ................................ ....................... 28 
2.3.2.2    Other agreem ents and arrangements  ................................ ................................ ......30 
2.4   Investment Regime  ................................ ................................ ................................ ....30 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  36 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 36 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 36 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 40 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 40 
3.1.3.1    Structure  ................................ ................................ ................................ ............. 40 
3.1.3.2    Applied tariff  ................................ ................................ ................................ ........ 41 
3.1.3.3    Tariff escalation and dispersion  ................................ ................................ ............... 42 
3.1.3.4    Tariff bindings  ................................ ................................ ................................ ......43 
3.1.3.5    Tariff preferences  ................................ ................................ ................................ ..43 
3.1.4    Other charges affecting imports  ................................ ................................ ................. 44 WT/TPR/S/364 • Cambodia  
 
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  3.1.5    Import prohibitions, restrictions, and licensing  ................................ ............................ 45 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 47 
3.1.7   Other measures affecting imports  ................................ ................................ .............. 47 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 48 
3.2.1    Customs procedures and requiremen ts ................................ ................................ .......48 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 49 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 49 
3.2.4    Export support and promotion  ................................ ................................ ................... 50 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..52 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......52 
3.3.1    Incentives  ................................ ................................ ................................ ............... 52 
3.3.2    Standards and other technical requirements  ................................ ............................... 55 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....57 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 60 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 62 
3.3.6    Government procurement  ................................ ................................ ......................... 63 
3.3.7    Intellectual property rights  ................................ ................................ ........................ 66 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ .....................  73 
4.1   Agriculture  ................................ ................................ ................................ ................. 73 
4.1.1    Features  ................................ ................................ ................................ ................. 73 
4.1.2    Policy and institutional developments  ................................ ................................ ......... 74 
4.1.3    Border me asures  ................................ ................................ ................................ .....75 
4.1.4    Domestic support measures  ................................ ................................ ...................... 76 
4.1.5    Selected agricultural and livestock items  ................................ ................................ ....78 
4.1.5.1    Rice ................................ ................................ ................................ .................... 78 
4.1.5.2    Rubber  ................................ ................................ ................................ ................ 80 
4.1.5.3    Forestry  ................................ ................................ ................................ ............... 81 
4.1.5.4    Fisheries  ................................ ................................ ................................ .............. 82 
4.2   Mining and Energy  ................................ ................................ ................................ ......85 
4.2.1    Mining  ................................ ................................ ................................ .................... 85 
4.2.2    Energy  ................................ ................................ ................................ ................... 86 
4.2.2.1    Hydrocarbons  ................................ ................................ ................................ .......87 
4.2.2.2    Electricity  ................................ ................................ ................................ ............. 87 
4.3   Manufacturing  ................................ ................................ ................................ ............ 90 
4.3.1    Features, policy and measures  ................................ ................................ .................. 90 
4.3.2    Policy and inst itutions ................................ ................................ ............................... 90 
4.3.3    Border and domestic support measures  ................................ ................................ ......91 
4.3.4    Garments  ................................ ................................ ................................ ............... 91 
4.4   Services  ................................ ................................ ................................ .................... 92 
4.4.1    Features  ................................ ................................ ................................ ................. 92 WT/TPR/S/364 • Cambodia  
 
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  4.4.2    Overall commitments under the General Agreement on Trade in Servic es and 
RTAs ................................ ................................ ................................ ................................ 93 
4.4.3    Financial services  ................................ ................................ ................................ .....93 
4.4.3.1    Banking and finance  ................................ ................................ .............................. 95 
4.4.3.2    Insurance  ................................ ................................ ................................ ..........  100 
4.4.4    Communications  ................................ ................................ ................................ .... 102 
4.4.4.1    Telecommunications  ................................ ................................ ............................  102 
4.4.4.2    Audiovisual and broadcasting services  ................................ ................................ ... 106 
4.4.5    Transport  ................................ ................................ ................................ ..............  107 
4.4.5.1    Shipping  ................................ ................................ ................................ ............  107 
4.4.5.2    Air transportation  ................................ ................................ ................................  110 
4.4.5.3    Railways  ................................ ................................ ................................ ............  113 
4.4.6    Distribution and e -commerce  ................................ ................................ ..................  114 
4.4.6.1    Distribution  ................................ ................................ ................................ ........  114 
4.4.6.2    E-commerce  ................................ ................................ ................................ ....... 114 
4.4.7    Tourism  ................................ ................................ ................................ ................  115 
4.4.8    Professional services  ................................ ................................ ..............................  117 
4.4.8.1    Accounting, consulting and tax services  ................................ ................................ . 117 
4.4.8.2    Legal services  ................................ ................................ ................................ ..... 118 
4.4.8.3    Architectural and engineering services  ................................ ................................ ... 118 
4.4.8.4    Educational services  ................................ ................................ ............................  119 
4.4.8.5    Health -related services  ................................ ................................ ........................  119 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 121  
 
CHARTS  
 
Chart 1.1 Product composition of merchandise trade, 2011 and 2016  ................................ .......19 
Chart 1.2 Direction of merchandise t rade, 2011 and 2016  ................................ ....................... 21 
Chart 3.1 Frequency distribution of MFN tariff rates, 2017  ................................ ....................... 41 
Chart 3.2 Average applied MFN and bound tar iff rates, by HS section, 2011 and 2017  ................ 42 
Chart 3.3 Tariff escalation by 2 -digit ISIC industry, 2017  ................................ ........................ 42 
Chart 4.1 Interest rate  spread (%), January 2010 to December 2016  ................................ .......99 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2010 -16 ................................ .......................... 11 
Table 1.2 Basic economic and employment indicators, 2010 -16 ................................ ............... 12 
Table 1.3 Balance of payments, 2010 -16 ................................ ................................ .............. 17 
Table 1.4 Compo sition of trade in services, 2010 -16 ................................ .............................. 18 
Table 2.1 Cambodia's RTAs in force: main features, 2017  ................................ ....................... 29 
Table 3.1 Customs fees and ch arges  ................................ ................................ .................... 38 WT/TPR/S/364 • Cambodia  
 
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  Table 3.2 Tariff structure of Cambodia, 2011 and 2017  ................................ ........................... 40 
Table 3.3 Summary analysis of the preferential tariff, 2016  ................................ ..................... 43 
Table 3.4 Summary of import taxes, 2017  ................................ ................................ ............ 44 
Table 3.5 Share of international trade taxes in total tax revenue and forgone custom s 
duties, 2010 -16 ................................ ................................ ................................ ................. 45 
Table 3.6 Export taxes, 2016  ................................ ................................ ............................... 49 
Table 3.7 Export licences, permits, and certificates  ................................ ................................ 50 
Table 3.8 List of SEZs  ................................ ................................ ................................ ......... 52 
Table 3.9 Export finance, 2011 -16 ................................ ................................ ....................... 52 
Table 3.10 Incentive s under the Law on Investment  ................................ ............................... 53 
Table 3.11 Minimum conditions required for the provision of incentives  ................................ ....53 
Table 3.12 Public pro curement by method and amount, 2015 -16 ................................ ............. 63 
Table 3.13 Public procurement financial thresholds  ................................ ................................ 64 
Table 4.1 Domestic support measu res, 2010 and 2013  ................................ ........................... 76 
Table 4.2 Structure of the financial system, 2011 -17 ................................ .............................. 94 
Table 4.3 Banking soundness indicatorsa, 2011 -17 ................................ ................................ .97 
 
BOXES  
 
Box 3.1 Customs laws and regulations  ................................ ................................ .................. 36 
 
APPENDIX TABLES  
 
Table A1 .1 Merchandise exports by product group, 2011 -16 ................................ ..................  121 
Table A1.2 Merchandise imports by product group, 2011 -16 ................................ .................  123 
Table A1.3 Mer chandise exports by destination, 2011 -16 ................................ ......................  125 
Table A1.4 Merchandise imports by origin, 2011 -16 ................................ .............................  126 
 
Table A3.1 Tariff summary, 2017  ................................ ................................ .......................  127 
Table A3.2 Applied tariff lines breaching bindings, 2017  ................................ ........................  129 
 
Table A4.1 Cambodia's Air Transport Agreements, 2017  ................................ .......................  132 
 
 WT/TPR/S/364 • Cambodia  
 
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  SUMMARY  
1. Since 2011, Cambodia's real GDP growth has been strong , averaging over 7% annually . 
Construction, manufacturing (mainly garments exports) and , to a lesser e xtent, tourism -related 
services, have been the drivers of growth . Economic growth  has been inclusive and widespread, 
resulting in declining inequality and poverty levels. Prudent macroeconomic management has 
resulted in moderate  inflation, a stable exchang e rate, relatively low unemployment , and 
manageable external debt levels. However, the informal nature of a large portion of the 
Cambodian economy , which is largely based on services followed by agriculture,  implies that GDP 
is significantly underestimated , and that it undermines the effectiveness of government policy.  
2. Cambodia is faced with a number of structural constraints and vulnerabilities, which affect  
economic growth and render the economy and financial system vulnerable to shocks. These 
include: a narrow economic base, high cost of doing business , and high dollarization coupled with 
underdeveloped financial markets. Measures undertaken to address some of the se issues include 
the launching of the Industrial Development Policy (IDP) in 2015, the simpl ification and 
automation of companies ' registration, and increasing the depth of the financial sector and the 
foreign exchange market. In addition, the adoption in 2014 of the "Revenue Mobilization Strategy" 
(RMS) has significant ly increased government revenue and helped fiscal consolidation .  
3. The objective of both monetary policy and exchange rate policy is price stability. However, 
the shallowness of the banking sector and the high level of dollarization in the economy reduce the 
effectiveness of monetary  policy. On the other hand, a steady exchange rate against the US  dollar 
serves as an important nominal anchor to help keep inflation low. Maintaining a stable exchange 
rate against the US dollar has resulted in an appreciation of the real effective exchan ge rate. The 
REER is estimated to be overvalued by 5 -10% currently , which would imply sluggish exports and a 
rising trade deficit  in the future . 
4. The current accou nt deficit peaked at nearly US$ 2.0 billion (13% of GDP) in 2013 . Since 
then, it has been on a downward trajectory due to slow import growth and robust export 
expansion  (particularly of garment s). The current account deficit has been cover ed by the financial 
account, mainly by steady FDI inflows throughout the review period. Consequently, foreign 
exchange reserves have more than doubled since 2011 to reach approximately US$8.3 billion in 
2016, providing nearly eight months of import cover.  
5. Cambodia ran persistent fiscal deficits during the review period, albeit at a declining rate on 
account of reven ue growth. The stock of external debt remains at around 30%  of GDP . 
6. Trade and investment are fundamental for Cambodia to achieve its economic and social 
objectives. The ratio of trade in goods and services to GDP increased to around 140% in 2016  
(compared with 127% in 2011) . Cambodia's exports continue to be heavily concentrated in 
clothing, which accounted for around  65% of total exports in 2016 . The largest single import 
category is textiles, which are used as inputs for the garments industry. The main ex port 
destination is the EU -28. Cambodia's imports originate mainly from Asia, whose share is around 
90% and continues to rise.  
7. During the review period, FDI inflows rose to US$2.3  billion, helped by Cambodia's liberal 
and investor -friendly regime. FDI is c oncentrated in the garment, agriculture and financial sector s. 
Most of the FDI in Cambodia comes from Asia, mainly China; Viet Nam; Hong Kong, China; 
Malaysia; the Republic of Korea; and the Separate Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu (C hinese Taipei) . 
8. Since its first TPR in 2011, Cambodia has adopted new trade -related and investment 
policies, and undertaken some institutional and regulatory reform initiatives in areas including the 
legislative and judiciary branches, the Ministry of Comm erce's (MoC) role, the establishment of a 
Permanent Mission to the WTO, access to information, and anti -corruption. Whereas its policy 
formulation and objectives remain shaped by relatively long and wide -ranging strategies and 
plans, concrete strategic act ion areas for improving trade competitiveness were identified and 
initiatives aimed at coordinating the efforts and resources of all stakeholders were continued.  WT/TPR/S/364 • Cambodia  
 
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  9. Cambodia remains committed to the multilateral trading system and is a voice for the least 
developed countries (LDCs). During the review period, it improved its WTO commitments by 
ratifying the Trade Facilitation Agreement (TFA). At the same time, it continued to focus on 
strengthening regional economic integration ties through the implementation and/or negotiation of 
several ASEAN agreements, including the negotiation of the Regional Comprehensive Economic 
Partnership (RCEP). Cambodia continues to be a beneficiary of the Generalized System of 
Preferences schemes of a number of countries and is ent itled to additional LDC -specific 
preferences under certain schemes. Furthermore, it continued to receive assistance for reaching 
economic development objectives, including export diversification, and combating poverty under 
Enhanced Integrated Framework (E IF) projects and the Trade Development Support Programme 
(TDSP). During the review period, Cambodia has submitted few notifications to the WTO (e.g. 
tariffs, import licensing requirements, and agriculture) and had no involvement in trade disputes in 
the WT O. 
10. Cambodia remains largely open to and encourages foreign direct investment (FDI) despite 
the prohibition of foreign ownership of land and involvement in some activities for health or 
environmental purposes, as well as local equity or workforce participat ion requirements, or prior 
authorization for certain activities (e.g. certain telecommunications services, radio and television 
broadcasting, and certain tourism services). In other activities, it continues to ensure national 
treatment and 100% foreign own ership, except for divested state enterprises; emphasis was put 
on public -private partnerships as from 2016. A 2012 moratorium on Economic Land Concessions 
(ELCs) allowing long -term leases of state -owned land was reviewed reducing their term and 
cancelling  some of them. During the review period, Cambodia signed three new bilateral 
investment promotion and protection agreements and its first double taxation agreements.  
11. The tariff is the main trade policy instrument , and collected customs duties are an import ant 
source of government revenue. Nearly all tariffs are applied on an ad valorem  basis, with just 
14 tariff lines being subject to specific rates. The simple average applied MFN tariff in 2017 was 
12.3%, a slight increase from 11.7% in 2011. Average tarif fs on agricultural products (14.6% ) are 
higher than those on non -agricultural products (11.9%). The highest ad valorem  rate of 35% 
applies to finished agricultural products (processed meat, processed fruit and vegetables , and 
dairy products), finished indu strial products, and petroleum products . Nearly 14% of tariff lines are 
duty-free. Cambodia has bound its entire tariff at the HS eight -digit level. The average bound tariff 
is 20.9%. The relatively small difference (8.6  percentage points) between the simp le average 
applied MFN tariff and the average bound rate, and the fact that the entire tariff is bound, renders 
the import regime predictable. In 2017, t he applied MFN rate exceeded the bound rate totally for 
60 lines, partially for 29 lines and possibly f or 14 lines ; the products affected include: machinery 
and parts, fireworks, live animals, gasoline and diesel.  
12. Since its last TPR, Cambodia has made significant strides in improving its customs 
procedures. Measures have included the use of the Single Admin istrative Document, the one -stop 
mechanism , and the use of ASYCUDA at all border posts. Cambodia has also implemented the 
"Best Trader Programme", to be used as a stepping stone towards implementing the Authorized 
Economic Operator Programme as envisaged i n the Customs Strategy and Work Programme on 
Reforms (2014 -18). With a view to enhancing trade facilitation and ensuring the accuracy of the 
customs declaration, Cambodia initiated procedures for advance ru ling, and also ratified the 
WTO Agreement on Trade  Facilitation. These measures have improved customs clearance times 
significantly; however, there continues to be room for improvement.  
13. In addition to customs duties, Cambodia imposes a VAT, a spe cial tax on certain imports, as 
well as taxes on gasoline an d diesel imports.  
14. Cambodia prohibits or restricts the import of certain goods  on the grounds of : protection of 
national security; protection of public order and standards of decency and morality; protection of 
human, animal or plant life or health; protec tion of national treasures of artistic, historic or 
archaeological value; conservation of natural resources; compliance with the provisions of any 
legislation of the Kingdom of Cambodia; and the fulfilment of obligations under the UN Charter.  
Currently, ov er 1,500 tariff lines are subject to import prohibition or licensing . Prohibited imports 
include, inter alia : narcotics; psychotropic substances and their precursors, ODS (except HCFCs), 
toxic waste and poi sonous chemicals,  certain pesticides , used compute rs and spare parts, 
household waste, right -hand drive vehicles and goods that infringe intellectual property rights. 
Import licences or permits  are required  for chemicals, pharmaceutical s and narcotic drugs for WT/TPR/S/364 • Cambodia  
 
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  medicinal purposes, forestry products, fish a nd fishery products, live animals, animal products and 
agricultural materials . 
15. A common theme that pervades most aspects of Cambodia's economy is the delay in 
drafting and implementing new legislation. As such, a draft law, which addresses  anti-dumping and  
safeguard measures is currently being reviewed by the National Assembly and is expected to be in 
force by the end of the year.  Furthermore, a  draft competition law is expected to be submitted to 
the National Assembly for approval in 2018 and it is not yet  clear when this legislation would come 
into force. There is also a working group to monitor prices of essential commodities, which include 
rice, fish, chicken, pork, regular gasoline and diesel, and cassava.  
16. There have been no significant changes to Cambo dia's export procedures. Certain products  
(mainly rubber, processed timber,  jewellery, silverware and uncut or unprocessed precious stones , 
fish and other aquatic products,  art and cultural products , raw fruit and vegetables, live animals, 
garments, drugs and medicines and certain agricultural materials) require export licences, 
certificates and permission letters. Export taxes apply to  timber, unprocessed rubber, uncut 
precious stones and fish and crustaceans, moll uscs and other aquatic products and certai n 
manufactured products.  Cambodia does no t provide any export subsidies. Support is given for 
initiating, organizing, and participati ng in domestic and overseas trade fairs, and providing 
assistance to local companies wishing to organize and/or participate  in such fairs . 
17. Incentives are offered under the QIP  (qualified investment projects)  and the SEZ (special 
economic zones) schemes ; these include profit tax holidays and rebates, special deprecation, 
exemption from import duties and taxes, zero -rated VAT on imports, and special customs 
procedures. Incentives are accorded to s pecific sectors and activities, includ ing the garment 
sector, companies listed on the Cambodian Stock Exchange and  investors who hold and/or trade 
government securities, equity and/or de bt securities on the securities market, and for rice farming, 
paddy rice purchase and the export of milled rice.  
18. The legislative or regulatory framework governing techni cal regulations and standards 
remains unchanged . Cambodia mainly uses the ISO/IEC as a national guide to adopt international 
standards as national standards or  technical regulations. Currently,  there are 804  Cambodian 
standards, mainly on foods, electrical appliances,  and test methods, of which 151  are technical 
regulations. According to the  authorities, n early 83% of Ca mbodian standards are aligned with  
international standards.  
19. During the period under review, changes to the regime governing standards and technical 
regulations have included a new Law on Animal Health  and Production, which cam e into force in 
2016. A draft law on food safety was also issued in 2015. In both cases , the authorities want to 
bring existing regulations up to international standards and implement global best practices. 
However, the SPS regime is faced with difficultie s, includ ing: problems in the definition of 
responsibilities between the various agencies, overall fragmentation of responsibilities between, 
and even within, ministries as well as limited capacity to discharge those responsibilities; lack of 
systematic in spection or monitoring in all key areas of production and processing, with an impact 
on product quality and safety; an absence of systematic laboratory testing to support inspection, 
due to limited human and financial resources; and a certification system that is not backed by 
testing, and therefore not necessarily recognized  in export markets.  
20. Government procurement amounts to 3% of GDP . Competitive bidding is the most 
commonly used method of procurement. A new Law on Public Procurement , enacted in 2012,  aims 
to ensure that the procurement process is transparent, fair, effective, and accountable , and the 
procurement system uniform.  
21. State involvement in the economy is limited, with SOEs accounting for less than 8% of 
employment and around 3% of the number of  economic establishments in the country. Private and 
public enterprises compete under the same terms and conditions. Public enterprises are not 
entitled to special trading rights or privileges. Cambodia has n ever notified any state trading 
enterprise s to the WTO as defined under Article  XVII of the GATT.  
22. Other than the enactment of the Law on Geographical Indication in 2014, there has been no 
substantial change to Cambodia's IPR regime/legislation during the review period. Cambodia WT/TPR/S/364 • Cambodia  
 
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  acceded in 2015 to the Pr otocol Relating to the Madrid Agreement Concerning the International 
Registration of Marks. In 2016, it became a member of the Patent Cooperation Treaty and the 
Hague Agreement concerning the International Registration of Industrial Designs. Cambodia grant s 
national and MFN treatment to all foreign nationals under existing Cambodian intellectual property 
legislation. During the period under review, there has b een a marked improvement in 
IPR enforcement, with an increase in seizures and prosecutions. However , IPR infringement 
continues to be widespread, ranging from software, compact discs, and music, to photocopied 
books and the sale of counterfeit products, including cigarettes, alcohol, and pharmaceuticals.  
23. Despite a major decline due to irrigation and com modity price developments, agriculture, 
centred on paddy rice production, continues to play an important role in supporting economic 
growth (accounting for 25.7% of gross value added in 2016). Cambodia's agricultural price 
competitiveness remains lower tha n its regional neighbours. During the review period, several 
plans aimed to transform the sector into one driven by new technologies, mechanization and 
irrigation to improv e the yield rate and diversify activities into high value crops, livestock, and 
aquaculture in an environmentally sustainable manner. Illegal trade of fisheries and forestry items 
persists.  
24. Tariff protection for agriculture (16.1%  in 2017) was slightly increased and remains higher 
than the overall applied MFN average (12.3%); export taxe s affect several items at rates of 10% 
and 50%, and the tax on natural rubber, the second largest commodity crop after rice, was 
transformed from ad valorem  to specific with its rate most recently  revised in 2017. A 1% services 
charge on the f.o.b. value o f exported forest and forestry product s is in place. Most Green Box 
domestic support expenditure was channelled into extension and advisory services provided to the 
farmers. Tax and non -tax incentives in the form of exemption from the payment of the proper ty 
tax for worked/exploited land, duty -free imports of farm machinery and equipment, and whenever 
available , subsidized loans, are limited and, inter alia, directed to agricultural mechani zation. Since 
2012, a food reserve system has been implemented to ensure food and seeds supplies during 
disasters and emergency situations. Despite missed policy targets and productivity and 
competitiveness constraints, the share of rice in total merchandise exports doubled; in response to 
a 2016 rice price reduction, meas ures were taken to stabilize the rice price and promote local 
trade. State -trading activities by one enterprise remain in place in rice. Forest and fishery 
management appears to be relatively inefficient. Despite a 1996 log export ban, the cross -border 
trade continues to grow. Fish and fishery products remain subject to relatively high tariff 
protection and import quotas; in 2014, the European Union  enforced a ban on fish imports from 
Cambodia due to a perceived lack of action against illegal fishing.  
25. The mining sector remains at an early stage of development despite the country's mineral 
potential . Regulatory changes in 2016 introduced procedures, processes and conditions for the 
issuance of exploration and industrial mining licences; as from 2016 , extract ed minerals must be 
domestically processed to be exported. Cambodia's energy structure remains simple and the 
country is becoming less dependent on energy imports from neighbouring countries  as a result of  
its great potential for power production. As from 2016, a ceiling has applied on the retail sale price 
of fuel. The state company , Electricité du Cambodge , dominates the electricity transmission 
market; the high electricity cost, a constraint for manufacturing development, is being addressed 
through stage d reduction of tariffs that contin ue to be characterized by cross -subsidization mainly 
borne by residential consumers.  
26. Manufacturing (16.1% of gross value added in 2016), a priority activity  for Cambodia , 
remains heavily dependent on foreign -invested garme nt companies and informal enterprises. 
During the review period, government policy was aimed at transforming the industrial structure 
from a labour -intensive industry to a skill -driven one through connecting to regional and global 
value chain s. Tariff esca lation remains pronounced in garments with the average MFN applied tariff 
on textiles at 5.7% against 15% on clothing. Export tax rates affecting several manufactures are 
set at 5%, 10%, 15%, 20%, or 50%. Manufacturing continued to benefit from tax incenti ves, 
including corporate tax holidays, a special depreciation allowance , import taxes exemptions, and 
qualified investment project and special economic zones advantages.  
27. During the review period, the services sector continued to play a significant role in  
supporting economic growth (39.2% of gross value added in 2016). Cambodia's commitments 
under the GATS, reflecting its aim to attract FDI, remained unchanged; its five RTAs involve 
commitments on trade in services.  WT/TPR/S/364 • Cambodia  
 
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  28. Banking and insurance activities continu ed to expand with bank assets having grown almost 
threefold. Regulatory improvements in banking, inter alia , covered the strengthening of the capital 
base, the provision of credit and micro -finance as well as the introduction of pre -emptive 
regulatory meas ures against potential default risk. High, albeit declining, interest spreads between 
lending rates and the remuneration of deposits remain in place. The non-performing -loans ratio 
remained largely sound. Tax incentives were introduced in the securities ex change field. The legal 
framework of the highly concentrated and rather small insurance sector has undergone some 
changes aimed at strengthening the sector, combating illegal activities and regulating 
micro -insurance; nevertheless, insurance taxation remai ns a relatively complex issue.  
29. The t elecommunications sector remains open and continued to expand, although mobile 
telephony penetration and nominal tariffs continue to be  relatively low at regional level. A new 
policy was passed to, inter alia, support in frastructure connectivity. In addition to institutional 
developments, new legislation on numerous telecommunications areas, including o perators' 
revenue sharing (i.e.  licence fee), tariffs, number portability and a universal service obligation 
programme, w as passed but a large part of it remains to be enforced. To promote Khmer culture 
and support local industry, restrictions on the broadcasting of foreign dramas are in place and 
more are envisaged.  
30. Cambodia remains characterized by low road and water conne ctivity as its transport industry 
continues to face challenges including high merchandise transportation costs (in particular, 
shipping) and inadequate infrastructure despite an increase in ports capacity; railway transport 
remained of limited availability  and performance due to slow progress in rehabilitation projects. 
Direct vessel calls serving Cambodian ports have been in place since 2016 and its two main ports 
are state -owned; cabotage is allowed and open to all vessels. The entirely state -owned 
Kampuc hea Shipping Agency and Brokers (KAMSAB), is the only entity to provide multi -modal 
water transport services. Air transport continued to expand and support rising levels of tourism 
largely due to foreign investment in Cambodia's international airports; at the same time, greater 
insertion of its aviation sector into international markets was pursued through participation in 
more air services agreements. Foreign commercial presence in distribution is unlimited and 
investment is picking up, whereas e -commerce remains underdeveloped.  
31. Tourism, the largest activity and largest source of government revenue as well as the 
driving force for several other economic activities, continued to expand largely due to improved 
stability in neighbouring countries; several tour ism-related policies remain in place. Professional 
services remain relatively open to foreign investment as long as domestic registration and other 
requirements are met. The requirement s and procedure s for the registration and practice of 
foreign lawyers i n Cambodia were established  in 2016. The health market has a wide variety of 
health -care providers, but the budget for implementing health programmes depends on foreign 
donors; universal health coverage remains to be addressed.  
32. In 2017, growth  is expected to be around the same level as in 201 6. The expanding 
economy and the credit growth ha ve given rise to an asset price bubble in the real estate sector. 
Any large disorderly adjustment in real estate prices is likely to have an adverse impact on the 
banking  sector and economic activity in general. A slowdown in China's economic growth  would 
also potentially impact growth through the FDI, banking and tourism channels. Garments ' exports 
could also be adversely impacted by an appreciation of  the U .S. dollar vis-à-vis other major 
currencies and/or weaker growth in Europe. Risks on the domestic front include fiscal pressures 
and erosion of competitiveness from wage hikes potentially outstripping productivity gains. In 
addition to the reforms which address diversif ication and competiveness, improvement of the 
business climate and fiscal reform, the authorities recognize the  need to undertake further 
reforms , including infrastructure development promoting rural growth and technical/vocational 
training,  to sustain the  inclusive and widespread growth that has been achieved. These reforms 
would help Cambodia attain its economic and welfare policy objectives and further integrate into 
the world trading system .  
 
 WT/TPR/S/364 • Cambodia  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Cambodia  is a least developed country (LDC). Strong GDP growth over the past decade has 
resulted in a reduction in poverty and inequality, with GDP per capita growing to around 
US$1,300. The services sector is the largest contributor to GDP accounting for nearly 4 0% of value 
added in 2016, followed by agriculture, fisheries and forestry (25.7%) and manufacturing 
(16.1%). Recently, the construction sector has also become an important contributor to GDP. 
Prudent macroeconomic management has resulted in a benign infla tionary environment, relatively 
low unemployment and manageable external debt levels. Furthermore, according to the Asian 
Development Bank, the Cambodian economy is largely informal, which would imply that GDP and 
GDP per capita are significantly underesti mated, reducing the effectiveness of government policy.1  
1.2.  State involvement in the economy has been declining (Section 3.3.5). Cambodia has one of 
the most open economies in the region and the Government sees private sector businesses as 
central to the cou ntry's future prosperity.2 Trade is vital to Cambodia as an avenue for achieving 
economic development, poverty reduction, job creation and improving competitiveness and 
productivity. The ratio of trade in goods and services to GDP has increased from about 127% in 
2011 to around 140% in 2016. According to the IMF, Cambodia's near -term growth outlook is 
broadly favourable.3 
1.2  Recent Economic Developments  
1.3.  Since 2011, real GDP has grown at an average annual rate of approximately 7.2% 
(Table  1.1) and is expected t o remain at around 7% in 2017.4 Growth has been driven by 
construction, manufacturing (mainly garments) and, to a lesser extent, tourism -related services 
(Table  1.2). Consequently, GDP per capita increased from US$903.5 in 2011 to US$1,308.3 
in 2016. Growt h was also underpinned to some extent by productivity gains. During the period 
2007-14 (latest data available), annual productivity growth of 6.0% was the largest contributing 
factor to annual growth per capita value added of 4.2%. The decline in the emplo yment rate, 
however, dragged down growth per capita value added by as much as 2.8%, caused mainly by a 
decline in the agricultural employment rate. The fastest annual productivity growth rate was seen 
in real estate, which grew at an annual average rate of  2.7% during the period 2007 -14. This was 
likely boosted by the real -estate boom in Cambodia during the post -global financial crisis period. 
Productivity growth in agriculture was next, rising by an annual average of 1.8% with the 
application of more advan ced agricultural technology and inputs. The third -fastest productivity 
growth of 0.7% was in trade (wholesale and retail).5  
Table 1.1 Selected macroeconomic indicators, 2010 -16 
  2010  2011  2012  2013  2014  2015  2016a 
National accounts  (Percentage change, unless otherwise indicated)  
Real GDP (at 2000 prices)  6.0  7.1  7.3  7.4  7.1  7.0  7.2  
Consumption  9.0  11.3  4.7  5.7  4.3  5.8   ..  
Private consumption  8.8  10.2  4.6  5.8  4.5  5.9   ..  
Government co nsumption  12.5  27.2  5.7  5.2  2.4  4.4   ..  
Gross fixed capital formation  -9.8  10.8  17.4  15.3  9.0  10.6   ..  
Exports of goods and non -factor 
services  20.6  18.9  14.4  14.0  11.3  7.2   ..  
Imports of goods and non -factor 
services  16.8  16.3  16.9  15.1  10.1  6.5   ..  
XGS/GDP (%) (at current 
market price)  54.1  54.1  57.9  62.4  62.6  61.7   ..  
MGS/GDP (%) (at current market 
price)  59.5  59.5  62.7  67.7  67.0  66.1   ..  
Unemployment rate (%)  0.4  0.2  0.2  0.3  0.2   ..   ..  
                                                
1 ADB online information. Viewed at: 
https://www.adb.org/sites/default/files/publication/176283/cambodia -addressing -skills-gap.pdf .  
2 ADB, Country Partnership Strategy: Cambodia 2014 -2018. Viewed  at: 
https://www.adb.org/sites/default/files/linked -documents/cps -cam-2014-2018-psa.pdf .  
3 IMF, Country Report No. 16/340 . 
4 IMF, Country Report No. 16/340 . 
5 World Bank, Cambodia Economic Update April 2017 . WT/TPR/S/364 • Cambodia  
 
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    2010  2011  2012  2013  2014  2015  2016a 
Inflation a nd interest rates (annual average)  
Inflation (CPI, % change)  4.0  5.5  2.9  2.9  3.9  1.2  3.0  
Deposit rate (%)  1.26  1.34  1.33  1.34  1.42  1.42  1.44  
Lending rate, foreign currency (%)  15.63  15.22  12.97  12.80  12.31  11.71  11.36  
Exchange rate         
Riels/US$ (annual average)  4,184.92  4,058.50  4,033.00  4,027.25  4,037.50  4,067.75  4,058.6
9  
Real effective exchange rate 
(% change)   ..   ..   ..   ..   ..   ..   ..  
Nominal effective exchange rate 
(% change)   ..   ..   ..   ..   ..   ..   ..  
 (Per cent of GDP, unless otherwise indicated)  
Government finance         
Revenue  13.2  13.2  15.2  15.2  18.1  17.4  18.7  
Current revenue  12.9  13.0  14.8  15.1  17.9  17.2  18.5  
Tax revenue  10.7  10.9  12.2      12.7      14.7  15.5  16.1  
Expenditure  21.3  20.7  21.6  21.3  21.5  21.1  21.7  
Current expenditure  11.0  11.4  12.1  12.1  13.1  13.7  14.6  
Current fiscal balance  1.4  1.8  2.5  2.7  4.5  3.7  3.9  
Overall balance  -8.7  -7.3  -6.5  -6.4  -3.7  -3.7  -3.0  
Government debt  27.1 28.2 30.5 32.0 31.5 31.3 29.5 
Saving and investment         
Gross national savings  .. 11.8 12.5 11.3 11.0 11.4 12.1 
Gross domestic investment  .. 22.0 23.5 23.5 23.2 22.5 22.7 
Saving -investment gap  .. -10.2 -11.0 -12.2 -12.2 -11.1 -10.6 
External sector         
Current account balance  -6.0  -6.0  -8.2  -13.0  -9.8  -9.3  -8.3  
Net merchandise trade  -16.5  -16.7  -17.9  -21.1  -19.2  -19.2  -17.1  
Merchandise exports  34.7  39.2  40.1  42.9  44.4  46.9  46.3  
Merchandise imports  51.2  56.0  57.9  64.0  63.6  66.1  63.4  
Services balance  9.3  10.9  11.8  11.4  11.5  11.4  10.4  
Capital account  2.9  1.7  2.0  2.2  1.7  1.0  0.8  
Financial account  -3.3  -4.6  -7.3  -10.8  -8.5  -9.0  -7.4  
Direct investment, net  -11.7  -10.5  -12.8  -12.0  -10.0  -9.2  -10.8  
Balance -of-payments  -1.4  -2.5  -2.8  -2.4  -4.5  -4.3  -4.4  
Terms of trade (% change)   ..   ..   ..   ..   ..   ..   ..  
Merchandise exportsb (% change)  24.1  28.9  11.8  16.0  13.4  14.2  9.6  
Merchandise importsb (% change)  24.5  24.7  13.4  19.8  8.9  12.3  6.5  
Service exportsb (% change)  11.9  34.7  16.9  9.4  9.1  3.8  2.3  
Service importsb (% change)  18.0  35.8  15.4  14.8  6.8  1.1  3.4  
Foreign exchange, excl. gold 
(US$ million)  3,149.7  3,344.7  4,162.2  4,411.0  5,527.0  6,760.5  8,245.2  
in months of imports of goods 
and services  6.5  5.5  5.7  5.0  5.3   6.8  7.8 
External debt stock (US$ million)  3,684.9  4,227.5  6,282.8  7,131.5  7,916.2  9,318.7   ..  
% of GDP  32.8  33.0  44.7  46.8  47.4  51.6   ..  
.. Not available.  
a Estimates.  
b Growth rates are based on US$.  
Source : National Institute of Statistics of Cambodia online information; National Bank of Cambodia online 
information; IMF eLibrary data; World Bank; and data provided by the authorities.  
Table 1.2 Basic economic and employment indicators, 2010 -16 
 2010  2011  2012  2013  2014  2015  2016  
Real GDP at market price 
(riels billion, 2000 prices)  30,406.0  32,553.0  34,933.0  37,503.0  40,182.0  43,009.0  46,113.0  
Real GDP at  market price 
(US$ million, 2000 prices)  7,265.6  8,020.9  8,661.8  9,312.3  9,952.2  10,573.2  11,361.5  
Current GDP at market price 
(riels billion)  47,048.0  52,068.7  56,681.6  61,326.9  67,436.8  73,422.7  81,242.0  
Current GDP at market price 
(US$ m illion)  11,242.3  12,829.5  14,054.5  15,228.0  16,702.6  18,050.0  20,016.8  
GDP per capita at current 
market price (US$)  803.0  903.5  969.3  1,043.0  1,121.0  1,195.4  1,308.3  
GDP by economic activity, at constant 2000 prices (%age change)  
Agricultu re, fisheries and 
forestry  4.0 3.1 4.3 1.6 0.3 0.2 4.0 
 Crops  5.7 4.3 4.9 0.6 0.5 0.3 4.4 
 Fisheries  2.4 3.1 6.7 5.4 0.1 0.3 3.8 WT/TPR/S/364 • Cambodia  
 
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   2010  2011  2012  2013  2014  2015  2016  
Mining and quarrying  28.0 19.8 26.5 18.2 24.4 20.0 19.2 
Manufacturing  29.6 16.2 6.9 9.8 6.7 9.2 6.8 
 Textiles, clothing an d 
footwear  18.5 19.9 6.5 10.7 6.6 9.9 6.7 
Electricity, gas, and water  7.2 5.1 7.9 7.0 9.7 9.6 8.3 
Construction  -25.5 7.9 18.2 13.7 21.4 19.2 13.5 
Services  3.3 5.0 8.1 8.7 8.7 7.1 7.1 
 Wholesale and retail trade  7.5 4.4 6.2 8.0 8.7 7.7 7.3 
 Restaurants  and hotels  11.2 6.6 12.5 13.8 6.2 2.4 7.0 
 Transport and 
communication  8.0 5.8 6.1 8.9 7.7 8.1 7.1 
 Finance  13.5 15.1 14.0 9.0 13.4 8.2 6.6 
 Public administration  11.5 3.2 1.5 4.2 5.0 4.6 4.3 
 Real estate and business  -15.8 3.9 12.9 8.0 13.8 11.9 10.7 
 Other services  4.2 3.2 5.7 7.3 7.1 5.1 4.9 
Value added by economic activity, at current prices (%)  
Agriculture, fisheries and 
forestry  33.9 34.6 33.5 31.6 28.9 26.6 25.7 
 Crops  19.0 20.6 20.1 18.7 17.2 15.8 15.4 
 Fisheries  7.5 7.2 7.2 7.0 6.4 5.9 5.8 
Mining and quarrying  0.6 0.6 0.8 0.9 1.2 1.3 1.5 
Manufacturing  14.7 15.2 15.1 15.5 15.4 16.0 16.1 
 Textiles, clothing and 
footwear  9.4 10.0 9.9 10.3 10.1 10.6 11.1 
Electricity, gas, and water  0.5 0.5 0.5 0.5 0.5 0.6 0.6 
Construction  6.1 5.8 6.6 7.2 8.5 9.8 10.3 
Services  38.3 37.5 37.8 38.5 39.7 39.8 39.2 
 Wholesale and retail trade  9.3 9.2 9.0 9.1 9.4 9.5 9.4 
 Restaurants and hotels  4.5 4.3 4.6 5.0 5.1 4.9 4.6 
 Transport and 
communication  7.6 7.6 7.5 7.7 8.0 8.1 8.0 
 Finance  1.4 1.5 1.6 1.7 1.9 1.9 1.9 
 Public administration  1.7 1.6 1.5 1.5 1.4 1.4 1.4 
 Real estate and business  5.5 5.2 5.6 5.7 6.1 6.4 6.6 
 Other services  8.3 8.0 7.9 7.9 7.9 7.8 7.6 
Structure of national employment (% of occupied population)  
Agriculture, fisheries and 
forestr y  ..   ..   ..   ..   ..   ..   ..  
 Crops   ..   ..   ..   ..   ..   ..   ..  
 Fisheries   ..   ..   ..   ..   ..   ..   ..  
Mining and quarrying   ..   ..   ..   ..   ..   ..   ..  
Manufacturing   ..   ..   ..   ..   ..   ..   ..  
 Textiles, clothing a nd 
footwear   ..   ..   ..   ..   ..   ..   ..  
Electricity, gas, and water   ..   ..   ..   ..   ..   ..   ..  
Construction   ..   ..   ..   ..   ..   ..   ..  
Services   ..   ..   ..   ..   ..   ..   ..  
 Wholesale and retail trade   ..   ..   ..   ..   ..   ..   ..  
 Restaurants and hotels   ..   ..   ..   ..   ..   ..   ..  
 Transport and 
communication   ..   ..   ..   ..   ..   ..   ..  
 Finance   ..   ..   ..   ..   ..   ..   ..  
 Public administration   ..   ..   ..   ..   ..   ..   ..  
 Real estate and business   ..   ..   ..   ..   ..   ..   ..  
 Other services   ..   ..   ..   ..   ..   ..   ..  
.. Not available.  
Source : Data provided by the authorities; and IMF, IFS online statistics.  
1.4.  It appears that growth has been inclusive and widespread, with poverty6 levels declining from 
50% in 2005 to 14% in 2015 (latest available data).7 Furthermore, growth was also relatively 
evenly distributed, which resulted in inequality, as measured by the GINI coefficient, declining 
from 0.41 in  2007 to 0.31 in 2012 ( latest available data).8 Poverty reduction is largely explained 
by four  factors: (i) increases in the price of rice, (ii) increased rice production, (iii) growth in 
agricultural wages, and (iv) higher incomes from self -employment in non -agricultural busine sses. 
                                                
6 According to the Ministry of Planning, in Cambodia, the national poverty line is defined as people living 
on under US$0.93 per capita per day.  
7 Asian Development Bank online information. Viewed at: 
https://www.adb.org/countries/cambodia/poverty .  
8 World Bank online information. Viewed at: http://data.worldbank.org/country/cambodia .  WT/TPR/S/364 • Cambodia  
 
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  With regards to high outward migration rates, cash and in -kind remittances contribute to increased 
consumption for many rural households, and they also help explain some of the poverty reduction. 
In addition, the nature of employment and the flexibil ity of the workforce also explain the 
reduction in poverty and inequality. As most of the jobs are low skilled (agriculture, garments and 
construction), workers find it relatively easy to shift jobs or take on additional work when such 
opportunities arise.  The strong economic growth has allowed the country to graduate in 2015 from 
low income to lower -middle income status.  
1.5.  The expanding economy has also resulted in rapid credit growth. Although credit growth has 
been broad based, there is a significant conce ntration in the real estate sector, which has given 
rise to an asset price bubble. A large disorderly adjustment in real estate prices is likely to have an 
adverse impact on the banking sector and economic activity in general.9 In addition to rapid credit 
expansion, other potential risks to future growth stability stem from a significant slowdown in 
China, which would potentially spill over through the FDI, banking and tourism channels. 
Additionally, according to the IMF, a surge in the US dollar and/or wea ker growth in Europe could 
affect garments exports. Also, a sharper -than-anticipated tightening in global financial conditions 
could raise funding costs and heighten liquidity risks in the financial system. Risks on the domestic 
front include fiscal pressu res and erosion of competitiveness from wage hikes potentially 
outstripping productivity gains.10 
1.6.  The authorities are cognizant of the above risks and have tried to address them. With a view 
to bolstering financial stability and ensuring a soft landing of t he credit cycle, a liquidity coverage 
ratio and minimum capital requirements for banks were introduced in 2016 (see Section 4.5.3). 
Phase III of the Rectangular Strategy reflects the Government's aim of promoting long -term 
sustainable national development and poverty reduction through focusing on: agriculture 
development (diversification, value added, and productivity); development of physical 
infrastructure; private sector development and employment; and capacity building and human 
resource development (se e Section 2.3).  
1.7.  In this context, the authorities have stated that their focus would remain on public 
investments in roads, railways, bridges and irrigation to further promote rural development and 
enhance inclusive growth. They consider that public investm ent in these infrastructure projects will 
help facilitate private investment. Over the near term, the completion of several hydropower 
projects is expected to provide affordable electricity to the general population and contribute to 
enhancing Cambodia's b usiness climate and competitiveness. Furthermore, the authorities are 
working on promoting technical and vocational training, in order to address skill mismatches, 
which in turn is expected to strengthen productivity and further promote inclusive growth (s ee 
Section 1.2.4).  
1.2.1   Monetary and exchange rate policies  
1.8.  The conduct of monetary policy is the remit of the National Bank of Cambodia (NBC) 
(Section  4.5.3). "The mission of the NBC is to determine and direct the monetary policy aimed at 
maintaining price st ability in order to facilitate economic development within the framework of the 
Kingdom's economic and financial policy."11  
1.9.  The only monetary policy instrument available to the NBC is the reserve requirement, which 
is used to control money supply in the ec onomy. However, given the shallowness of the banking 
sector and the high level of dollarization in the economy, questions remain about the effectiveness 
of the reserve requirement to meet the price stability goal. The NBC raised the reserve 
requirement in 2012 by 50 basis points to 12.5%. Since 2011, broad money has grown at an 
average annual rate of over 20%.  
1.10.   According to the IMF, the de jure  exchange rate arrangement in Cambodia is a managed 
float. The de facto  exchange rate arrangement is an "other manag ed" arrangement. The objective 
                                                
9 According to the IMF, Phnom Penh's land price for residential and office space increased 26% and 
19%, respectively, year -on-year in 2015; the highest growth among Asian cities. Since 95% of loans in 
Cambodia are collateralized against land, a negative s hock in the real estate sector could put more debtors in 
negative equity, which in turn could prompt rising defaults and fire sales. (IMF, Country Report No. 16/340 ). 
10 IMF, Country Report No. 16/340 . 
11 National Bank of Cambodia online information. Viewed at: https://www.nbc.org.kh/english/ .  WT/TPR/S/364 • Cambodia  
 
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  of exchange rate policy is also to maintain price stability. As such, the stabilization of the exchange 
rate against the US dollar serves as an important nominal anchor to help keep inflation low and 
stable. Thus, to keep the  exchange rate stable, the NBC intervenes in the market. The exchange 
rate remained stable during the review period (Table 1.1). On the other hand, the real effective 
exchange rate (REER) appreciated by around 8% in 2016. The appreciation reflects the nomi nal 
rise in the US dollar against currencies of Cambodia's major trading partners (EU and China), 
buoyant economic growth, and inflows of foreign banking flows. The REER is assessed by the IMF 
to be overvalued by around 5 –10%, which implies that a 5 –10% re al effective depreciation would 
be necessary to close the gap between the underlying current account and the level that can be 
explained by fundamentals and desirable policies.12 According to the IMF, the overvaluation, in the 
absence of an independent exch ange rate regime, calls for policies to slow credit growth in the 
near term, and consolidate the fiscal position and improve productivity and competitiveness over 
the medium term.13 
1.11.   Inflation as measured by the consumer price index (CPI) peaked at 5.5% in 2 011 before 
declining to 1.2% in 2015. In 2016, CPI rose to an estimated 3%. Recent inflationary pressures 
have built up as a result of continued strong domestic demand led by household consumption 
driven in part by the rise in wages.  
1.2.2   Fiscal policy  
1.12.   The fisc al deficit declined from 7.3% of GDP in 2011 to 3% of GDP in 2016. The reduction in 
the deficit was driven by revenue growth. Total government revenues grew from 13.2% of GDP in 
2011 to 18.7% of GDP in 2016 (see Section 1.2.3.4), while over the same period , total 
expenditures hovered around 21% of GDP. However, persistent fiscal deficits have resulted in the 
stock of external debt increasing moderately from around 28% of GDP in 2011 to around 30% of 
GDP in 2016.  
1.13.   With regard to expenditure, wage increases i n 2013, 2015 and 2016 have resulted in 
current expenditure increasing; however, the increase was offset to a large extent by a decline in 
capital expenditure. According to the authorities, Cambodia undertook external financing to fund 
infrastructure develo pment and priority sectors.  
1.2.3   Structural issues  
1.14.   According to the Government's National Strategic Development Plan 2014 -18, structural 
reforms are needed to secure the Government's stated goal of inclusive and sustained growth. 
Structural constraints and vul nerabilities faced by Cambodia include: a narrow economic base, 
weak business climate, and high dollarization coupled with underdeveloped financial markets. 
These structural features constrain growth potential and render the economy and financial system 
vulnerable to shocks, while limiting the scope for responding to such shocks. Thus, structural 
reforms should include promoting diversification, enhancing competitiveness, and improving the 
business climate and inclusiveness. In this respect, Cambodia has un dertaken and implemented 
certain reforms (see below).  
1.2.3.1   Diversification and competitiveness  
1.15.   Cambodia's export base remains narrow and reliant on low value -added garments. 
Garments production is highly substitutable between countries, and can migrate quickly to those 
with better price competitiveness. To mitigate the impact of any exogenous shock, the 
Government launched the Industrial Development Policy (IDP) in 2015 to attract FDI into 
non-garments labour -intensive manufacturing. Rising minimum wages and sta lled productivity 
improvements, along with heightened uncertainty from labour disputes, have been eroding 
competitiveness. According to the  authorities, they remain committed to implementing the IDP 
and recognize the need to accelerate its implementation.  
                                                
12 IMF, Country Report No. 16/340 . 
13 IMF, Country Report No. 16/340 . WT/TPR/S/364 • Cambodia  
 
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  1.2.3.2   Business environment  
1.16.   The cost of doing business remains high due to inadequate transportation links, elevated 
energy costs, and non -transparent and cumbersome government procedures.14 To address this 
issue, both the Law on Investment and the Law on Special  Economic Zones are under revision 
aimed at improving the business environment and supporting diversification, in line with the IDP. 
Furthermore, since early 2014, the Government has initiated, among other things, a new wave of 
reforms for improving the bu siness environment and investment climate. The focus of these 
reforms has been on: simplification and automation of the registration of companies (intended to 
allow applicants to register a new company online in significantly less time, ultimately diminish ing 
face-to-face contact with government agencies); automation of the Certificate of Origin (CO) (so 
that companies can apply for the certificate electronically); and elimination of informal payments 
(17 large companies have signed an MOU with the Anti -Corruption Unit, 9 of which are located in 
the Phnom Penh Special Economic Zone (PPSEZ)).  
1.2.3.3   Financial sector reforms  
1.17.   There is no government bond market despite the need to channel domestic savings to 
finance growth -enhancing expenditure. The foreign exchange ma rket remains thin and 
transactions centre on a few money changers.15 Limited financial markets impede the efficient 
allocation of resources and risk sharing, and constrain monetary policy implementation and the 
efficacy of fiscal policy, given the absence o f financing instruments. The Government has 
implemented various measures to promote securities market development, and has also prepared 
rules and regulations for a government bond market (to be finalized by 2018). The NBC also has 
plans to develop the int erbank market by supporting greater usage of NCDs.16  
1.2.3.4   Tax reform  
1.18.   The considerable improvement in the fiscal deficit has come about due to a marked increase 
in tax revenues. Strong revenue performance was the result of the 2014 adoption of the 
Government's " Revenue Mobilization Strategy" (RMS). The RMS is based on a three -pronged 
approach: (i) improving revenue administration, (ii) implementing fair and efficient tax policies, 
and (iii) strengthening governance. In this regard, its focus is on strengthening r evenue 
administration, revenue policy and the institutional framework in order to continue raising 
domestic revenue by at least 0.5% of GDP annually over the medium term. Improved tax 
administration includes enhanced taxpayer registration, filing support, auditing, and arrears 
management. For customs, the focus is on strengthening clearance processes (customs 
declaration, valuation, risk management, and audit) and cross border control (smuggling). On 
revenue policy, the RMS focuses on excises, VAT, widening  the tax base, rationalizing tax 
incentives and holidays, and imposing property taxes.  
1.19.   According to the IMF, to ensure that the recent revenue gains are sustained over the 
medium term, reforms should focus on modernizing tax policy and further improving r evenue 
administration. Tax policy reforms should centre on improving the productivity, efficiency and 
transparency of most taxes, as well as rationalize tax incentives, improve business taxation, and 
reform excise and property taxes. Tax administration ref orms should focus on building a strong 
institutional framework to entrench recent administrative improvements and implement future 
reforms. On the expenditure side, developing a medium -term budget framework to systematically 
                                                
14 According to the World Bank doing business survey, overall Cambodia ranked 131 out of 
190 countries in 2016; it ranked 180 with respect to starting a business, 124 with respect to getting electricity 
and 178  for enforcing contracts. Furthermore, according to the World Economic Forum's Global 
Competitiveness Index, Cambodia's rank was 89 out of 138 countr ies in 2015; corruption was identified as the 
biggest impediment to business, followed by an inadequately educated workforce and inefficient government 
bureaucracy.  
15 According to the authorities, commercial banks have been playing a more dominant role in  the foreign 
exchange market. Furthermore, the NBC is developing an online foreign exchange trading platform for 
commercial banks, which is expected to be operational at the end of 2017. This would allow banks and money 
changers to trade foreign exchange a mongst themselves.  
16 The NBC introduced Negotiable Certificates of Deposit (NCDs) in 2013. With a view to promoting 
NCDs and the use of riel, supporting agricultural sector development, and  contributing to lowering the high 
domestic interest rate, a Liquid ity-Providing Collateralized Operation (LPCO) was introduced to establish a 
benchmark rate for the market.  WT/TPR/S/364 • Cambodia  
 
- 17 - 
 
  allocate expenditures and impro ve spending efficiency would be key going forward. An 
appropriately structured institutional framework for public -private partnerships (PPPs) is also 
needed to limit contingent liabilities. Wage increases should be fiscally sustainable and be 
accompanied b y continued efforts to enhance civil service reforms.17  
1.2.4   Balance of payments  
1.20.   During the period under review, Cambodia's current account deficit rose from 
US$765  million (6.0% of GDP) in 2011 to nearly US$1.7 billion (8.3% of GDP) in 2016 (Table  1.3), 
reflec ting a widening gap between gross national savings and gross domestic investment. The 
current account deficit peaked at nearly US$2.0 billion (13% of GDP) in 2013; however, since then 
it has been on a downward trajectory. Import growth has slowed down as d omestic construction 
activity has moderated resulting in a softening of construction material imports. Furthermore, 
according to the authorities, the decline in import growth can also be attributed to structural 
changes whereby domestic production has repl aced imports in, for example, cement and food and 
beverages and, to a lesser extent on a decline in global commodity prices, particularly of crude oil. 
On the other hand, export growth has remained robust, driven by garment exports to the EU -28 
under the " Everything but Arms" initiative (Section 2.4.2.2). Consequently, the trade deficit as a 
proportion of GDP declined from over 21% in 2013 to around 17% in 2016, although it has since 
increased slightly in absolute terms.  
Table 1.3 Balance of payments, 2010 -16 
(US$ million)  
 2010  2011  2012  2013  2014  2015  2016  
Current account balance  -678.9  -765.0  -1,155.4  -1,980.6  -1,644.8  -1,675.3  -1,668.5  
Goods and services balance  -803.9  -744.8  -853.9  -1,485.4  -1,283.0  -1,415.5 -1,348.6  
Trade balance  -1,851.2  -2,145.7  -2,510.1  -3,214.9  -3,209.9  -3,465.4  -3,425.3  
Exports  3,905.9  5,034.6  5,629.5  6,532.6  7,408.7  8,457.3  9,269.7  
Imports  5,757.1  7,180.3  8,139.6  9,747.6  10,618.6  11,922.7  12,695.0  
Services balance  1,047.4  1,400. 9 1,656.1  1,729.5  1,926.9  2,049.8  2,076.7  
Receipts  2,027.0  2,731.0  3,191.3  3,492.2  3,810.2  3,954.1  4,045.0  
Payments  979.7  1,330.1  1,535.2  1,762.7  1,883.2  1,904.3  1,968.3  
Income balance  -514.3  -600.0  -713.8  -875.3  -955.1  -1,107.3  -1,234.3  
Credit  58.6 61.3 67.6 70.8 132.5  127.7  126.3  
Debit  573.0  661.4  781.4  946.1  1,087.7  1,235.0  1,360.6  
Current transfers  639.3  579.9  412.3  380.1  593.2  847.6  914.4  
Credit  664.0  605.7  499.5  502.6  735.1  991.8  1,016.6  
Debit  24.7 25.8 87.1 122.5  141.8  144.3  102.2  
Capital a ccount  330.9  222.1  276.5  342.0  277.6  171.8  160.4  
Balance on current and 
capital account  402.6  -542.8  -878.9  -1,638.7  -1,367.2  -1,503.5  -1,508.1  
Financial accounta -375.3  -587.7  -1,020.9  -1,650.2  -1,412.4  -1,618.2  -1,481.2  
Direct investment  -1,320.7  -1,343.8 -1,798.8  -1,826.1  -1,676.9  -1,653.7  -2,166.9  
Cambodia's direct 
investment abroad  20.6 29.2 36.2 46.3 43.2 47.5 121.9  
Foreign direct investment 
in Cambodia  1,341.2  1,373.1  1,835.0  1,872.4  1,720.1  1,701.2  2,288.8  
Portfolio investment  36.4 6.0 34.2 18.7 22.5 15.1 2.2 
Other investment  748.1  429.9  356.1  -202.1  -515.1  -754.7  -193.2  
Assets  1,242.0  1,184.1  2,259.8  1,078.7  758.7  1,014.2  1,994.7  
Liabilities  494.0  754.2  1,903.7  1,280.8  1,273.9  1,768.8  2,188.0  
Reserve assets  160.9  320.2  387.6  359.4  757.1  775.1 876.8  
Net errors and omission  -27.3 -44.9 -142.0  -11.5 -45.2 -114.7  26.9 
a Net lending (+) / net borrowing ( -). 
Source:  National Bank of Cambodia online information.  
1.21.   During the period under review, the services balance declined as a proportion of GDP , but 
grew in absolute terms. The increase was due to growth in the tourism sector, reflected in a rise in 
the share of transportation and travel in services receipts (Table 1.4). On the other hand, receipts 
of other business services and communication, co mputer and information services declined. 
Transport and travel payments also increased reflecting a strong tourism sector. In contrast, 
construction payments declined, which reflects a slowdown in the construction sector. During the 
                                                
17 IMF, Country Report No. 16/340 . WT/TPR/S/364 • Cambodia  
 
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  period under review, pa yments on account of repatriated profits and dividends rose, and these are 
reflected in the negative income balance. On the other hand, current transfers, which mainly 
comprise workers remittances, increased during the review period.  
Table 1.4 Composition of trade in services, 2010 -16 
 2010  2011  2012  2013  2014  2015  2016  
Total credit (US$ million)  2,027.1  2,731.0  3,191.3  3,492.2  3,810.2  3,953.9  4,036.8  
 % of total credit  
Transportation  11.1 10.1 9.8 9.8 10.3 10.6 11.4 
Travel  74.9 76.3 77.1 76.1 77.5 79.3 79.5 
Construction  0.5 0.3 0.5 0.4 0.3 0.3 0.3 
Insurance  0.1 0.2 0.0 0.0 0.0 0.0 0.0 
Finance  0.2 1.0 0.6 0.6 0.7 0.9 0.2 
Communication, computer & 
information  4.1 2.6 2.1 1.7 1.9 2.2 1.8 
Other business s ervices  3.5 4.7 5.3 7.2 6.6 2.4 2.0 
Personal, cultural & recreational 
services  0.1 0.1 0.1 0.1 0.1 0.0 0.0 
Government services  5.5 4.7 4.3 4.0 2.6 4.3 4.6 
Total debit (US$ million)  979.7  1,330.1  1,535.2  1,762.7  1,883.2  1,904.2  1,961.6  
 % of total debit  
Transportation  49.8 56.6 52.3 54.3 48.9 50.3 51.5 
Travel  20.3 19.9 20.5 20.1 21.3 24.9 25.4 
Construction  10.6 6.6 9.8 8.2 6.8 4.5 4.7 
Insurance  4.7 5.2 5.9 5.7 6.0 6.3 6.4 
Finance  2.1 0.3 0.4 1.7 0.5 0.2 0.4 
Communication, computer & 
information  4.8 3.3 3.0 2.9 6.3 7.0 5.8 
Other business services  4.3 5.1 4.8 4.5 7.3 4.4 3.5 
Personal, cultural & recreational 
services  0.5 0.4 0.4 0.3 0.3 0.1 0.2 
Government services  2.3 1.9 2.2 1.6 1.6 1.8 1.6 
Source:  Information provided by the National Bank of Ca mbodia.  
1.22.   The current account deficit has been financed by the financial account, mainly FDI inflows, 
which were robust throughout the review period. Consequently, foreign exchange reserves more 
than doubled from 2011 to approximately US$8.3 billion in 2016,  providing nearly eight months of 
import cover.  
1.3  Developments in Trade and Investment  
1.23.   During the period under review, both the shares in GDP of merchandise exports and imports 
rose; the share of exports increased from 39.2% in 2011 to 46.3% in 2016, while t hat of imports 
rose from 56.0% to 63.4% over the same period. In contrast, both the shares of services exports 
and imports decreased during the same period, although in absolute terms the services balance 
improved. The improvement was due mainly to increas ed receipts on account of transport and 
travel services, reflecting a significant increase in tourism activity in the country (Section 4.5.7).  
1.24.   FDI inflows rose from approximately US$1.4 billion (10.5% of GDP) in 2011 to 
US$2.3  billion (11.5% of GDP) in 201 6, with the stock of inward FDI rising to US$15 billion. 
According to the authorities, the increase came about for a number of reasons, including: political 
and macro -economic stability, a liberal investment policy, deeper regional and global integration, 
and an improved investment climate both in terms of hard and soft infrastructure.  
1.3.1   Trends and patterns in merchandise trade  
1.25.   Cambodia's exports continue to be heavily concentrated in clothing, which accounted for 
over 65% of total exports in 2016 (Chart 1.1 and Table  A1.1), other consumer goods such as 
footwear and handbags are responsible for a further 13% of total exports. While the share of 
clothing rose during the review period, the share of other consumer goods more than halved. 
Furthermore, the share of  manufactures as a whole also fell.18 In contrast, the share of agriculture 
                                                
18 According to the authorities, up to and including 2011, the outward shipment of US currency was 
considered an exp ort. Cambodian customs data for 2011 records the outward movement of US$1.57 billion in WT/TPR/S/364 • Cambodia  
 
- 19 - 
 
  exhibited a slight increase due entirely to the increase in rice exports. On the other hand, exports 
of agricultural raw materials such as rubber declined due to a fall in the inter national price of 
rubber.  
Chart 1.1 Product composition of merchandise trade, 2011 and 2016  
Chart 1.1     Product composition of merchandise trade, 2011 and 2016
2011 2016
Exports (f.o.b.)
Total:   US$6.7 billion Total:  US$10.1 billion
Chemicals
5.6%Transport 
equipment 7.0%Manufactures
75.2%
Electrical machines  
4.1%
Non-electrical 
machinery  7.4%Imports (c.i.f.)
Electrical
machines
5.6%Semi-manufactures
4.2%
Other semi -manuf.  
10.7% Chemicals
6.4%Manufactures
78.6%
Total:   US$6.1 billion Total:  US$12.4 billionManufactures
91.4%Other consumer
goods  5.1%
Gold, non -monetary 1.4%Other 
consumer 
goods  7.0%
Other 0.6%Semi-manufactures
0.4%Clothing
59.6%Clothing
66.1%
Source:  UNSD, Comtrade database (SITC Rev.3) .Other consumer
goods 7.5%Gold, non -
monetary  
1.9%
Other semi -manuf.
8.6%Agriculture
9.2%Agriculture
7.8%Transport 
equipment 
9.0%Machinery & transport 
equipment  4.8%Agriculture
6.3%Agriculture  
6.5%Footwear
4.0%
Gold, non -
monetary 
2.0%Textiles
35.0%
Non-electrical 
machinery 6.9%Other consumer goods
24.8%
Manufactures
93.5%Footwear
7.8%
Machinery & transport 
equipment  8.3%
Mining
10.2%Textiles 
33.0%
Mining
15.0%
Fuels
8.7%
Other mining
1.5% Other mining
1.4%Fuels
13.6%
 
 
Source:  UNSD, Comtrade database (SITC Rev.3).  
 
                                                                                                                                                  
banknotes (HS 4907.0010), which were shipped mainly to Hong Kong, China and Singapore. This figure is 
included in the merchandise composition of exports as well as dest inations. The practice of including currency 
shipments in the export data ceased in 2012.  WT/TPR/S/364 • Cambodia  
 
- 20 - 
 
  1.26.   As in most countries, the structure of Cambodia's imports is less c oncentrated than exports. 
The largest single import category continued to be textiles, which are used as inputs for the 
garments industry; its share remained static during the review period (Chart 1.1 and Table  A1.2). 
However, the share of manufactures as a whole increased due mainly to increased imports of 
automotive products and other transport equipment and to a lesser extent to increased gold 
imports. The increased imports under both categories could be due to increased income and 
purchasing power due t o economic growth and relatively easy access to consumer credit. 
Consequently, the share of primary products in total imports fell. Within primary products, the 
decline was mainly due to a fall in the share of fuels, against the background of a decline in 
international commodity prices, especially those of fuel.19  
1.27.   Cambodia's largest export market in 2016 was the EU -28, followed by the United States and 
Japan (Chart 1.2 and Table A1.3). The share of the EU -28 rose considerably and it overtook the 
United  States, whose share declined, as Cambodia's largest export market. A plausible reason for 
the change is the duty -free imports into the EU -28 under the "Everything but Arms" Scheme 
(Section 2.4.2.2). The share of Asia also fell, particularly of Hong Kong, China  and ASEAN.  
1.28.   Cambodia's imports continue to be highly concentrated, with over 90% coming from Asia, 
whose share has increased during the review period (Chart 1.2 and Table A1.4). In 2016, 
Cambodia's largest import supplier was China, followed by Thailand an d Viet Nam. The shares of 
China and Thailand have risen considerably since 2011, while the share of Viet Nam has posted a 
decline since then. Furthermore, the shares of ASEAN and other Asia as a whole have also 
declined.  
1.3.2   Trends and patterns in FDI  
1.29.   Cambodia  has a liberal and investor -friendly investment regime, offering incentives to 
various sectors under many schemes. This has resulted in a steady inflow of FDI during the review 
period. FDI inflows increased from approximately US$1.4 billion in 2011 to near ly US$2.3 billion 
in 2016. FDI is concentrated in the garment sector, agriculture, construction and the financial 
sector. However, FDI inflows into dam (hydro -electric) projects have tapered off as these projects 
have been completed or are nearing completi on. Most of the FDI in Cambodia comes from Asia, 
mainly China; Viet Nam; Hong Kong, China; Malaysia; the Republic of Korea; and the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei). Furthermore, FDI 
originating in the EU -28 and the United States also rose during the review period. The stock of FDI 
in 2015 was nearly US$15 billion.20  
 
                                                
19 There appears to be a discrepancy in Comtrade fuel imports data for 2014 and 2015.  
20 UNCTAD, World Investment Report 2016 . Viewed at: 
http://unctad.org/en/PublicationsLibrary/wir2016_en.pdf .  WT/TPR/S/364 • Cambodia  
 
- 21 - 
 
  Chart 1.2 Direction of merchandise trade, 2011 and 2016  
Chart 1.2   Direction of merchandise trade, 2011 and 2016
2011 2016
Exports (f.o.b.)
Asia, excl. 
ASEAN
24.2%
Total:   US$6.7 billion Total:  US$10.1 billion
Imports (c.i.f.)
EU-28  3.2%Other ASEAN
6.6%
Chinese Taipei
8.3%EU-28  4.3%
Other  2.6%
Japan 
4.0%
Total:   US$6.1 billion Total:   US$12.4 billionCanada
5.7%
Japan
4.3%Viet Nam
11.4%
Other Asia
6.8%United States
31.4%United States
21.3%
Source:  UNSD, Comtrade database.Hong Kong, China
4.2%
Hong Kong, 
China  7.8%Other Asia
1.7%EU-28
39.9%
Hong Kong,
China  17.9%Other
3.8%
ASEAN
36.6%
Other Asia
4.9%China
6.1%EU-28
22.7%
Other ASEAN
5.9%Japan
2.3%Thailand
4.2% China
2.3%
Chinese Taipei 
5.7%Other Asia
5.6%
Other
4.8%Thailand
11.8%Singapore
6.6%Other
3.5%
Japan
8.2%
Viet Nam
14.4%
Asia, excl. ASEAN
55.8%Asia, excl. ASEAN
55.3%Asia, excl. 
ASEAN
19.9%
ASEAN
37.2%Thailand
15.4%Other 
ASEAN
4.5%
China
36.8%Canada
6.5%
Singapore
3.9%
Other ASEAN
5.8%Singapore
4.6%
China
28.3%ASEAN
8.6%ASEAN
12.5%Other EU -28
21.4%Germany
9.0%United Kingdom
9.5%
Other EU -28
12.0%Germany
4.8%United Kingdom
5.8%
 
 
Source:  UNSD, Comtrade database.  
 
 WT/TPR/S/364 • Cambodia  
 
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  2  TRADE AND INVESTMENT R EGIMES  
2.1.  Since its first TPR in 2011, Cambodia has undertaken several trade -related, investment 
policy, institutional, and regulatory reform initiatives. It remains committed to the multilateral 
trading system, and during the review perio d improved its WTO commitments by ratifying the 
Trade Facilitation Agreement (TFA) and benefited from trade -related technical assistance. At the 
same time, it continued to focus on strengthening regional economic integration ties through the 
implementation  and/or negotiation of several ASEAN agreements. Cambodia has submitted few 
notifications to the WTO and has had no involvement in disputes. It remains open to and 
encourages foreign direct investment (FDI) despite persisting limitations in certain activit ies. New 
bilateral investment promotion and protection agreements and its first double taxation agreements 
improved the investment environment.  
2.1  General Framework  
2.2.  The Constitution of the Kingdom of Cambodia, enacted on 21 September 1993 and officially 
promu lgated in March 2008, remains unchanged.1 A Constitutional Council guarantees the 
observance of its provisions.2 It is also entitled to interpret and approve amendments to the 
Constitution and laws adopted by the National Assembly and reviewed by the Senat e as a final 
decision.  
2.3.  Cambodia is a constitutional monarchy consisting of executive, legislative and judicial 
branches, and the King is the Head of State for life. The Council of Ministers constitutes the Royal 
Government of the Kingdom of Cambodia, the e xecutive arm of the State led by the Prime 
Minister. The King appoints the elected Prime Minister and the Council of Ministers and signs and 
ratifies international treaties and conventions upon their approval by the National Assembly and 
the Senate.3 The C ouncil of Ministers is responsible for setting Cambodia's economic and foreign 
trade policies.4  
2.4.  Legislative powers are exercised by the National Assembly (lower house) and the Senate 
(upper house). The 125 (120 until 2015) Members of the National Assembly  are elected by a free, 
universal, direct and secret ballot for a five -year term.5 The National Assembly's main 
responsibilities relate to the approval or repeal of international treaties as well as the approval of 
the national budget, state planning, lend ing, financial contracts, and tax -related legislation.6 The 
Senate's 62  members must not exceed half of the number of those of the National Assembly; 
two Senate members are appointed by the King, two are elected by a comparative majority of the 
National As sembly  votes and the rest are elected through "non -universal election" (i.e. 
appointment by political parties ) for a six -year term.7 The Senators, the Members of the National 
Assembly and the Prime Minister can propose any type of legislation; the Senate r evises the 
regulations submitted by the National Assembly and makes recommendations.8 Reforms, including 
changes to the structure of the National Election Committee, aimed at making elections fairer were 
                                                
1 An additional constitutional law, promulgated in 2004 and amended in 2006, guarantees the regular 
process of the national institutions. Royal Decree NS/RD /001, 13 July 2004.  
2 Three members are appointed by the King, three by the National Assembly and three by the Supreme 
Council of the Magistracy for a nine -year term (Article 137 of the Constitution); one third of them is replaced 
every three years. Chapte r XII of the Constitution.  
3 Article 26 of the Constitution of the Kingdom of Cambodia.  
4 Article 120 of the Constitution stipulates that membership of the Royal Government is incompatible 
with professional activities in trade or industry and with the ho lding of any position in the public service.  
5 Article 76 (new) of the Constitution.  
6 Article 90 of the Constitution.  
7 Articles 99 (new), 100 (new) and 102 (new) of the Constitution, and articles 2, 3, 4, 5 and 6 of the 
Law on Senate Election.  
8 Article  113 of the Constitution stipulates that if the Senate makes recommendations and approves the 
law, or does not make any recommendation, within the time limit, the law adopted by the National Assembly 
shall be promulgated. If the Senate requests a modificat ion of the draft law or the proposed law, the National 
Assembly shall immediately consider the draft law or the proposed law for a second time. The National 
Assembly shall examine and decide on only the provisions or points that have been proposed for modi fication 
by the Senate, by either rejecting the whole proposed modification or adopting some parts of it.  WT/TPR/S/364 • Cambodia  
 
- 23 - 
 
  enacted in early 2015.9 National Assembly elections are due in July 2018, and the next Senate poll 
is also expected in January of the same year.  
2.5.  The judiciary consists of the Supreme Court, Courts of Appeal and Courts of First Instance 
and the Prosecutor's Office in each jurisdiction. These courts have juri sdiction regardless of the 
nature or magnitude of the dispute. As of July 2014, Cambodia enforced a new judicial 
organizational framework to strengthen the independence of judicial power and improve the 
service for citizens in accordance with the rule of l aw (Section 2.2).10 The Courts of First Instance, 
i.e. the lower courts, were divided into specialized civil, criminal, commercial and labour courts, 
whereas the higher courts, i.e. the Supreme Court and the Courts of Appeal, were divided into 
specialized c hambers such as criminal, civil, investigating (except for the Supreme Court), 
commercial and labour chambers.  
2.1.1   Executive branches of government  
2.6.  Since 19 March 2014, the Ministry of Commerce (MoC) has been the leading institution in the 
formulation, implem entation and coordination of policies and activities relating to international 
trade in goods and services.11 It remains the focal point for WTO -related activities and issues, in 
particular by coordinating the preparation of WTO notifications, the Enhanced Integrated 
Framework (EIF), the multi -donor Trade Development Support Programme (TDSP) and the Trade 
SWAp (see below); it also coordinates Aid for Trade activities. The MoC takes the lead in 
developing trade -related legislation and issues certificates of o rigin. As at end -June 2017, a 
separate Permanent Mission of Cambodia to the WTO, consisting of an Ambassador and four staff 
members, has been established in Geneva to, inter alia,  fully utilize the potential of its 
membership in promoting the country's eco nomic growth, play an active role in the multilateral 
trade negotiations and handle Cambodia's chairing of the LDC Group during the same year.  
2.1.2   Advisory bodies  
2.7.  During the review period, the Government continued to regularly hold discussions at the 
"Governme nt-Private Sector Forum" (G -PSF), a mechanism for public/private -sector consultation 
and dialogue chaired by the Prime Minister, in order to address challenges faced by the private 
sector mainly concerning trade -related and investment issues. The G -PSF als o provides alternative 
policy options and recommendations. It enables the private sector to advocate, raise concerns 
directly with the Government, and provide inputs on business and trade -related policies, laws and 
regulations. Some G -PSF working groups ar e connected to steering committees and have 
development partner participation. The private sector is represented by business associations such 
as the Cambodia Federation of Employers and Business Associations, the Garment Manufacturers 
Association in Cambo dia, the Cambodia Hotel Association, the Freight Forwarders Association and 
the Cambodia Rice Federation. Furthermore, the Government holds consultative meetings with 
non-governmental organizations (NGOs) and bilateral consultations with other stakeholders .  
2.2  Trade Policy Formulation and Objectives  
2.8.  Cambodia's trade and trade -related policy formulation and objectives continue to be shaped 
by relatively long and wide -ranging strategies and plans. Since 2013, Cambodia has been 
implementing the third phase of th e Rectangular Strategy, which has "four strategic objectives": 
average annual economic growth of 7%, jobs creation through improved competiveness, 
                                                
9 According to the authorities, the reforms consisted of the amendment of the Law on the Election of 
Members of the National  Assembly to ensure free democratic  elections. It introduced changes including: a total 
number of 125 seats in the National Assembly; flexibility in the voting process (voters are required to register 
to vote but can choose an appropriate place to vote); strengthened public order during the electoral campaign 
period (electoral campaign period decreased to 21 days and must end 24 hours before election day); 
strengthened political and moral obligations and legal sanctions enforcement for violations after the official 
election results  are determined; and protection of party sovereignty (loss of party membership means the 
automatic loss of a parliamentary membership). EIU (2016), Country Report – Cambodia , 12 July.  
10 The legal framework governing the judiciary branch was promulgated on  16 July 2014 and comprises 
the Law on the Organization of the Courts, Law on the Statute of Judges and Prosecutors and Law on the 
Organization and Function of the Supreme Council of Magistracy.  
11 Until then, trade and trade -related policies were formulat ed and implemented by the Ministry of 
Economy and Finance (MEF). Ministry of Commerce online information. Viewed at: http://www.moc.gov.kh/en -
us/mission -statement . WT/TPR/S/364 • Cambodia  
 
- 24 - 
 
  increasing domestic and attracting foreign investment, and strengthening institutional capacity and 
governanc e.12 Consequently, the Government remained focused on attracting investment, 
diversifying the production base, expanding export markets, promoting transport connectivity and 
logistics systems, improving the regulatory framework, strengthening institutional mechanisms 
(including conflict resolution mechanisms), and enhancing capacity building.  
2.9.  During the review period, the Cambodia Trade Integration Strategy 2014 -2018 (CTIS) has 
identified key strategic action areas for improving the country's trade competiti veness and human 
development.13 They involve: trade and market diversification; trade facilitation; transport 
logistics; sanitary and phytosanitary measures (SPS) and technical standards (TBT); the 
investment environment for export -related activities; and, intellectual property rights. In addition, 
the following key export value chains were subject to SWOT (strengths, weaknesses, 
opportunities, and threats) analysis to identify competitive challenges and opportunities: 
garments, footwear, light manufacturing  and assembly sector, processed food, fisheries products, 
milled rice, cassava, rubber, tourism and silk products. A similar approach was also used for, 
inter alia, addressing skill gaps in export sectors and capacity building for trade mainstreaming, 
monitoring and mobilizing aid for trade, and enhancing private sector participation in aid for trade. 
Moreover, the CTIS contained a set of 20 strategic outcomes for trade development that would be 
mainstreamed in future National Strategic Development Plans an d Rectangular Strategies. 
Cambodia's National Strategic Development Plan 2014 -2018, inter alia,  was aimed at promoting 
trade through diversifying export markets and accelerating the speed of integration into the free 
trade framework of ASEAN and the world market.14  
2.10.   The trade sector -wide approach (Trade SWAp) aims at  coordinating the efforts and 
resources of the Government, Cambodian stakeholders, and development partners towards a 
single shared strategy to develop Cambodia's trade sector. Trade SWAp was con tinued with the 
implementation of three projects: the Trade Development Support Programme to increase the 
Government's efficiency in formulating and implementing effective trade policies; and, the 
Cambodia Export Diversification and Expansion Program (CEDE P) I and II in the context of the 
Enhanced Integrated Framework (EIF).15 The achievements made under the currently closed 
projects, TDSP, EIF Tier 1, and CEDEP  I, have been substantial in addressing a number of 
cross-cutting issues including policy formulat ion, legal reforms, trade facilitation, SPS and TBT. 
They also contributed to the development of the Government's capacity in trade policy formulation 
and monitoring, as well as the promotion and development of key export value chains including 
those of mi lled rice and silk. The MoC is to continue to implement the CEDEP II Sustainability 
Support Project (SSP), and the Accelerating Inclusive Markets for Smallholders (AIMS), a loan 
from International Fund for Agriculture Development (IFAD). CEDEP II involves the promotion of 
cassava and marine fisheries products as well as the establishment and operation of the Academy 
of Culinary Arts of Cambodia (ACAC), and public -private partnerships.  
2.2.1   Trade laws and regulations  
2.11.   During the review period, the range of Cambodi a's legal instruments remained unchanged. 
The regulatory framework of Cambodia consists of laws ( chbab ), royal decrees ( preah reach kret ), 
                                                
12 Similar to other countries, no total factor productivity (TFP) measurement was available with the 
authorities. The TFP can be used to measure competitiveness. The higher a country's TFP, the more 
competitive it is likely to be (subject to constraints such as resources); it is also ge nerally viewed as one of the 
main vehicles for driving economic growth ( https://www.boundless.com/economics/textbooks/boundless -
economics -textbook/inputs -to-production -labor-natural -resources -and-technology -14/capital -productivity -and-
technology -82/total -factor -productivity -316-12413/). More information on the Rectangular Strategy phases 
and the National Strategic Development Plan 2006 -2010 is available at WTO document WT/TPR/S/253/Rev.1, 
24 November 2011; Royal Government of Cambodia (2013), Rectangular Strategy for Growth, Employm ent, 
Equity and Efficiency – Phase III , September; and Ministry of Foreign Affairs and International Integration 
online information. Viewed at: http://www.mfaic.gov.kh /rectangular -stetegies#1475896861137 -9887366b -
8ac1. 
13 Ministry of Commerce (2014), Cambodia Trade Integration Strategy 2014 -2018, January. Viewed at: 
http://www.moc.gov.kh/tradeswap/userfiles/Media/file/CTIS/CTIS%202014 -2018%20Master%20En1%20 -
%20page%20layout.pdf .  
14 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://mop.gov.kh/Home/NSDP/NSDP20142018/tabid/216/Default.aspx   
15 Ministry of Commerce online information. Viewed at: 
http://www.moc.gov.kh/tradeswap/index.aspx?page=content&id=18  and 
http://www.moc.gov.kh/tradeswap/index.aspx?page=content&id=30049 . WT/TPR/S/364 • Cambodia  
 
- 25 - 
 
  sub-decrees ( anu-kret), ministerial orders or proclamations ( prakas ), decisions ( sech kdei 
samrach ), circulars ( sarac hor), and local regulations or by -laws ( deika ).16 All laws are signed by 
the King for promulgation and published in the Royal Gazette . Since its last TPR, new trade and 
trade -related legislation or regulations were passed mainly in areas such as customs val uation, 
VAT, SPS, TBT, price controls, intellectual property rights, fisheries, electricity, banking, insurance, 
telecommunications, tourism, legal services, and education services (Sections 3 and 4). New or 
implementing legislation or regulations are unde r preparation or consideration, inter alia,  in 
competition, rubber, mining, insurance, telecommunications, civil aviation, and e -commerce.  
2.12.   Although no major regulatory reform was undertaken during the review period, the 
Government mapped the main regulato ry constraints and provided for a regulatory policy agenda 
that intends to improve the regulatory environment in trade facilitation, export promotion, 
industrial standards and property rights, excise tax payment facilitation, labour market 
development and industrial relations.17 More coherent coordination of the tax system (including 
investment incentives), the trade regime, transport and other relevant regulatory aspects is 
required.18 The legal framework is far from comprehensive while the dissemination of knowledge 
on laws and enforcement capacity is below the level desired by the Government but efforts are 
being undertaken to address these issues (Section 2.2.2).19 Governance and the rule of law do not 
seem to enjoy the full confidence of the public despite  the Government's efforts to make laws and 
regulations public for transparency and enforcement purposes.20  
2.13.   The Office of Regulatory Impact Assessment (ORIA), established in October 2010 under the 
supervision of the Economic, Social and Cultural Council (EC OSOCC) of the Office of the Council of 
the Ministers, was to administer a Regulatory Impact Assessment (RIA) Project aimed at 
simplifying laws and regulations, shortening the required procedures, minimizing the cost to both 
the Government and private secto r, and improving the business environment. However, up until 
March 2014, this project was in a pilot mode with only seven ministries involved. In December 
2016, all ministries and institutions were required to establish an RIA Team for internal evaluation 
and to prepare self -assessment reports on proposed regulations before they are passed.  
2.2.2   Transparency  
2.14.   Cambodia attaches importance to making laws more transparent and readily accessible. 
However, the majority of laws are still published in Khmer only (some a re translated into English) 
in the Royal Gazette , which is updated monthly and is available to all individuals and institutions 
                                                
16 More information is available in WTO document WT/TPR/S/253/Rev.1, 24 November 2011 . 
17 For example, the overall quality of the SPS and TBT legal framework lacks a comprehensive 
assessment, consistency across legislation and compliance with WTO principles and ASEAN recommendations. 
A remaining challenge is to prepare the many anu-kret and prakas  needed for implementing SPS and TBT 
regulations. Ministry of Commerce (2014), Cambodia Trade Integration Strategy 2014 -2018, January. Viewed 
at: http://www.moc.gov.kh/tradeswap/userfiles/Media/file/CTIS/CTIS%202014 -2018%20Master%20En1%20 -
%20page%20layout.pdf . 
18 Coordination among regulators remains problematic, and sometimes co nflicting in terms of their 
respective objectives. For example, the tax system puts excessive emphasis on tax collection while the trade 
system focuses on market openness; the competition framework remains incomplete while the transport policy 
is lacking i n scope comprehensiveness. Royal Government of Cambodia (undated), Cambodia Industrial 
Development Policy 2015 – 2025. Viewed at: 
http://www.cambodia investment.gov.kh/content/uploads/2015/09/IDP -English -Version -FINAL1.pdf . 
19 Royal Government of Cambodia (2013), Rectangular Strategy for Growth, Employment, Equity and 
Efficiency – Phase III . Viewed at: http://www.mfaic.gov.kh/rectangular -stetegies#1475896861137 -9887366b -
8ac1. 
20 According to the World Bank Governance Indicators, in terms of regulatory quality (trade policy and 
business regulatory environment), Cambod ia scores 35%, which is above the South Asia average (30%) and 
its neighbouring countries (Lao PDR, Viet Nam); nevertheless, at 17% its rule of law score is lower than the 
regional average (38%) and Lao PDR's and Viet Nam's level. World Bank online indicat ors. Viewed at: 
http://info.worldbank.org/governance/wgi/index.aspx#reports . In 2015, Cambodia ranked 112th out of 
113 countries surveyed globally on the annual Rule of Law Index a nd had the lowest ranking in the East Asia 
and Pacific region regarding the perceived rule of law. The annual Rule of Law Index, published by the World 
Justice Project (an independent, multidisciplinary organization working to advance the rule of law aroun d the 
world), measures how rule of law is perceived in countries around the world by scoring eight factors: 
constraints on government powers, absence of corruption, open government, fundamental rights, order and 
security, regulatory enforcement, civil just ice and criminal justice. World Justice Project (2016), World Justice 
Project - Rule of Law Index 2016. Viewed at: 
http://worldjusticeproject.org/sites/d efault/files/media/wjp_rule_of_law_index_2016.pdf . WT/TPR/S/364 • Cambodia  
 
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  (in hard copy only). The websites of relevant ministries and agencies contain little or no 
information in English, but the autho rities consider that the major trade -related ministries and 
agencies have developed sophisticated portals containing information on the regulatory framework 
in both Khmer and English. Cambodia has been developing key projects for e -government services 
including government administration information systems, national information infrastructure, a 
financial management information system, a taxation payment system, e -customs, a national 
single window, and online business registration systems. In order to enhan ce transparency, a 
preliminary draft of a Law on Access to Information envisages procedures and the institutional 
setting for providing information (except for information classified as confidential) to the public at 
national and subnational levels; fines and imprisonment could apply to civil servants who fail to 
comply with its provisions.  
2.15.   During the review period, Cambodia has submitted a small number of notifications to the 
WTO mainly pertaining to tariffs, import licensing procedures, agriculture and RT As/services. No 
recent/regular notifications on import licensing requirements or domestic support to agriculture 
were received, and no notifications on state trading enterprises have ever been submitted 
(Sections 3.1.5 and 4.1.4). Since 2011, Cambodia has submitted its customs tariff to the WTO 
Integrated Data Base every year except for 2013, 2015, and 2016, whereas its most recent trade 
data submissions date back to 2011; the customs tariff for the years 2016 and 2017 was 
submitted to the WTO Secretariat i n the context of the current TPR.21 According to the authorities, 
the non -notification of Cambodia's customs tariff was due to their impression of a lack of a 
requirement for annual submission of the customs tariff and trade data.  
2.16.   As in all countries, a lac k of transparency, and thus, lack of public accountability, creates 
scope for administrative discretion and therefore corruption, which appears to be the most 
problematic factor for doing business in the Cambodia.22 In September 2007, Cambodia acceded to 
the UN Convention against Corruption whose 182 parties (as at end -2016) are required to 
establish criminal and other offences to cover a wide range of acts of corruption.23 Despite its 
anti-corruption initiatives (see below), Cambodia continues to rank poorly  in this area both at 
regional and international level.24 
2.17.   During the review period, some anti -corruption policy, regulatory and enforcement action 
was undertaken. A National Anti -Corruption Council (NCAC) and an Anti -Corruption Unit (ACU) 
were set up in 201 0 with the task of following a zero -tolerance policy under the first Five-Year 
Strategic Plan 2011 -2015 and they remain in charge of the implementation of the anti -corruption 
strategy and legislation.25 The second phase of the Five -Year Strategic Plan 2015 -2020 continues 
to follow the three -pronged approach, namely education, prevention and law enforcement to fight 
corruption. A 17 April 2010 Anti -Corruption Law, inter alia,  prohibits direct and indirect acts of 
bribery or attempted bribery of national and f oreign public officials, abuse of power, illicit 
enrichment, corruption proceeds offences, failure to declare assets and liabilities, as well as bid 
rigging and fraud in public procurement; it also provides for prison sentences of 6 months to 
15 years and/ or fines ranging from CR 100,000 to CR 10 million.26 According to the authorities, 
                                                
21 WTO document G/MA/IDB/2/Rev.45, 21 April 2017.  
22 Corruption, particularly within the judiciary, customs service, and tax authorities, seems to be the 
single greatest deterrent to investment in Cambodia.  United States Department of State online information, 
"Investment Climate Statements for 2016". Viewed at: 
https://www.state.gov/e/e b/rls/othr/ics/investmentclimatestatements/index.htm?year=2016&dlid=254269#wr
apper .  
23 UN online information. Viewed at: https://www.unodc.org/unodc/en/treaties/CAC/signatories.ht ml.  
24 According to the World Bank's  Worldwide Governance Indicators, in 2015 Cambodia scored 13% in 
the control of corruption indicator, much below South Asia's average (38%) and neighbouring Lao PDR and Viet 
Nam. In 2016, Cambodia ranked 156th out of 17 6 countries on Transparency International's Corruption 
Perception Index (CPI); at the same time, for a second year in a row and with a score of 21%, it ranked as the 
most corrupt South East Asian country. World Bank online information. Viewed at: 
http://info.worldbank.org/governance/wgi/index.aspx#reports ; Transparency International online information. 
Viewed at: http://www.transparency.org/news/feature/corruption_perceptions_index_2016#table  and 
http://www.transparency.org/news/feature/ asia_pacific_fighting_corruption_is_side_lined .  
25 Anti-Corruption Institution/National Council of Anti -Corruption (2010), Anti-Corruption Strategy and 
Politics – Five-Year Strategic Plan – 2011-2015, 20 September; United States Department of State online  
information, "Investment Climate Statements for 2016". Viewed at: 
http://www.state.gov/e/eb/rls/othr/ics/investmentclimatestatements/index.ht m?year=2016&dlid=254269 . 
26 ACU online information and UN online information. Viewed at: 
http:// www.acu.gov.kh/en_sub_index.php?4a8a08f09d37b73795649038408b5f33=2&03c7c0ace395d80182dbWT/TPR/S/364 • Cambodia  
 
- 27 - 
 
  officials from low - to high -ranking levels (e.g. court clerks, prosecutors, judges, police staff and 
under -secretaries of state) were arrested, charged with corruption offenc es and fined. Since 2016, 
the ACU has led efforts to develop two draft laws on the protection of witnesses and reporting 
persons; their drafting is expected to be finalized in the course of 2017. Various initiatives were 
introduced such as the incorporatio n of anti -corruption education into general education 
throughout the country and establishing the foundation for improving public services delivery 
standards. Various ACU initiatives in collaboration with various stakeholders, including public 
institutions , the private sector, civil society organizations, and the media were undertaken to 
promote educational outreach and corruption prevention efforts in both the public and private 
sectors and to enforce the law. In 2015, the ACU, in collaboration with the pr ivate sector, 
established guidelines encouraging private companies to create internal codes of conduct 
prohibiting bribery and corrupt practices. Private companies can sign a Memorandum of 
Understanding (MoU) with the ACU pledging to operate corruption -free and cooperate on anti -
corruption efforts. As at 2017, 83 private companies had signed such MoUs with the ACU. The 
minimum salary for administrative civil servants was raised from US$138 to US$175 per month in 
2016, but it still remains below the level re quired to maintain a suitable quality of life in Cambodia.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.18.   Cambodia has been a WTO Member since 2004 and participates actively in its work, 
including as a prominent voice for least developed countries (LDC), assuming the role of the LDC 
Group Coordinator for 2017. During the review period, Cambodia improved its WTO commitments 
by ratifying the WTO Trade Facilitation Agreement (TFA) on 12 February 2016 becoming the eighth 
LDC to do so. Cambodia accords at least MFN trea tment to trading partners, including non -WTO 
Members. Cambodia has not been involved in any cases under the WTO dispute settlement 
mechanism so far.  
2.19.   Since 2001, the Enhanced Integrated Framework (EIF) has assisted Cambodia in reaching 
economic development and combating poverty through the Trade SWAp as well as trade analytical 
studies and sectoral programmes, namely CEDEP I and II (Sections 2.2 and 2.4).27 The EIF also 
contributed to the mainstreaming of trade policies into the National Strategic Development  Plan 
(NSDP), the Rectangular Strategy III and the update of the CTIS and Trade SWAp Roadmap 
(Sections 2.2 and 2.4). In order to succeed in its move to a lower -middle income country, the EIF 
assists Cambodia in establishing strategies entailing economic di versification and building the 
Government's capacity to negotiate with partners and with Cambodia's private sector. According to 
the UNCTAD, by 2025 Cambodia will be among the 16 countries graduating from LDC status.28 
                                                                                                                                                  
07ae2c30f034=10&9e3669d19b675bd57058fd4664205d2a=8  and 
http://www.trac k.unodc.org/LegalLibrary/pages/LegalResources.aspx?country=Cambodia . 
27 CEDEP I ended in 2016 and CEDEP II is scheduled to end in 2017. The High Value Silk Project has 
provided support to 14 silk companies, whose profits have grown gradually from US$633,93 3 in 2012 to 
US$1,103,908 in 2015. The profit margin of total sales for the 14 companies was 46% in 2012 and increased 
to 49% in 2014 and gradually to 58% in 2015. Exports of silk products by the 14 companies grew by 41% 
during 2012 -14, and each company ex ported an average of US$43,321 in silk products in 2014. The growth in 
exports resulted from the acquisition of new clients and new export markets. Several companies also 
successfully increased sales to traditional markets, such as France and the United St ates. The EIF milled rice 
project has facilitated US$100 million of rice exports – 51% of which was fragrant rice, awarded with the 
World's Best Rice Award for three consecutive years in 2012, 2013, and 2014. In 2012, Cambodia's milled rice 
exports reached  205,000 metric tonnes and increased to 538,396 metric tonnes in 2015. In 2012, 71 market 
destinations were reached, and as of 2015, 12 new markets had been reached. The project has also facilitated 
the approval of the Cambodian Milled Rice Standards and h elped establish DNA analyses of Cambodian fragrant 
rice varieties. Cassava and Fisheries Projects are conducted by the United Nations Development Programme 
(UNDP) (Cassava Component) and The United Nations Industrial Development Organization (UNIDO) (Marin e 
Fisheries Component). Enhanced Integrated Framework and Cambodia/Ministry of Commerce (2016), Success 
story: New approach to sustainable institutions and healthy markets , September; World Economic Forum 
online information. Viewed at: 
https://www.weforum.org/agenda/2016/10/cantradetakecambodiafromdarknesstoprosperity/ . 
28 UNCTAD online information. Viewed at: http://unctad.org/en/PublicationsLibrary/ldc2016_en.pdf .  WT/TPR/S/364 • Cambodia  
 
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  2.3.2   Regional and preferential agreements  
2.3.2.1   Association of Southeast Asian Nations (ASEAN)  
2.20.   Cambodia is a member of the Association of Southeast Asian Nations (ASEAN) and during 
the period under review, it continued its efforts to reinforce its membership and deepen ASEAN's 
integration.29 On 31 Decembe r 2015, ASEAN established the ASEAN Economic Community (AEC) 
built on four interrelated and mutually reinforcing characteristics: a single market and production 
base; a highly competitive economic region; a region of equitable economic development; and a 
region fully integrated into the global economy.30 Under the AEC 2015, intra -ASEAN import tariffs 
have been virtually eliminated and formal restrictions in the services sector gradually removed. An 
AEC Blueprint 2025 is to guide ASEAN economic integration fr om 2016 to 2025 and it will entail 
the following characteristics: a highly integrated and cohesive economy; a competitive, innovative, 
and dynamic ASEAN; enhanced connectivity and sectoral cooperation; a resilient, inclusive and 
people -oriented, people -centred ASEAN; and, a global ASEAN. On 6  September 2016, ASEAN 
Leaders adopted the Master Plan on ASEAN Connectivity 2025 (MPAC 2025) which succeeded the 
Master Plan on ASEAN Connectivity 2010 and focuses on five strategic areas: sustainable 
infrastructure, d igital innovation, seamless logistics, regulatory excellence and people mobility.31 
Cambodia also participated in the negotiation and implementation of several ASEAN agreements 
including: the ASEAN annexes on operational certification procedures, rules of o rigin and measures 
to safeguard the balance of payments.32  
2.21.   Like all ASEAN Members, Cambodia has been following its agreed schedule for reducing 
tariffs on goods originating in its ASEAN trading partners. In 2015, duties on most of the tariff 
lines on its i nclusion list were reduced to zero as scheduled; tariff elimination is scheduled for the 
remaining 7% of tariff lines by 2018. The reduction of tariffs on ASEAN trade has been 
accompanied by rapid expansion of Cambodia's trade with its ASEAN partners. Duri ng the period 
2012-16, Cambodia's exports to ASEAN countries rose at an average annual rate of 23.8%, 
compared with an average annual growth of 15% in its exports to the rest of the world.33 On the 
other hand, in the same period, imports of ASEAN origin als o rose slightly faster than imports from 
the rest of the world at rates of about 14.2% and 13.6%, respectively.  
2.22.   Cambodia follows the established schedule for the liberalization of trade in services under 
the ASEAN Framework Agreement on Services. As from t he seventh package of commitments 
(26 February 2009), Cambodia's ASEAN commitments on market access and national treatment 
have gone beyond its WTO commitments in a limited number of sectors, e.g. leasing of 
construction machinery, translation and interpre tation services, paging services, and dental 
services. Cambodia continued to improve its undertakings under the eighth (28 October 2010) and 
ninth (25 August 2014) packages of GATS plus commitments that included business services, 
computer and related serv ices, rental/leasing services without operators, and other business 
services.34 
2.23.   In addition to the ASEAN free trade area (AFTA) and the ASEAN Framework Agreement on 
Services, Cambodia is a signatory to five other ASEAN RTAs with China, India, Japan, the Rep ublic 
of Korea, Australia and New Zealand (Table 2.1). During the period under review, the ASEAN -India 
Agreement was expanded to cover trade in services (Table 2.1). In 2012, ASEAN countries also 
initiated the negotiation of the Regional Comprehensive Econ omic Partnership (RCEP) with their six 
                                                
29 Other ASEAN Members are Brunei Darussalam, Indonesia, Lao PDR, Malaysia, Myanmar, the 
Philippines, Singapore, Thailand, and Viet Nam.  
30 Online ASEAN information. Viewed at: http://www.asean.org/wp -content/uploads/2012/05/56. -
December -2015-Fact-Sheet -on-ASEAN -Economic -Community -AEC-1.pdf and 
http://www.asean.org/storage/2016/03/AECBP_2025r_FINAL.pdf . 
31 Online ASEAN information. Viewed at: http://asean.org/asean -leaders -adopt -master -plan-on-
connectivity -2025/ . 
32 Ministry of Commerce online information. Viewed at: http://www.moc.gov.kh/en -us/first -source -
asean  and ASEAN online info rmation. Viewed at: http://agreement.asean.org/home/index/6.html .  
33 UNSD, Comtrade data.  
34 Cambodia – Schedule of Specific Commitments for the 8th and 9th Packages of Commitments under 
the ASEAN  Framework Agreement on Services. Viewed at: 
http://investasean.asean.org/files/upload/AFAS%208%20Schedule%20 -%20CA%20(13Feb12)%20CLEAN.pdf  
and http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_ -_CA_SOC_(CCS_78).pdf . WT/TPR/S/364 • Cambodia  
 
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  ASEAN FTA partners (Australia, China, India, Japan, the Republic of Korea, and New Zealand).35 
The RCEP negotiation includes trade in goods and services, investment, economic and technical 
cooperation, intellectual pro perty, competition, dispute settlement, e -commerce, small and 
medium -sized enterprises (SMEs) and other issues. ASEAN members have also participated in the 
negotiation and implementation of several ASEAN agreements/regulations including those on: 
rules of origin for the ASEAN -China Free Trade Area; and rules of origin for the ASEAN -India Free 
Trade Area.  
2.24.   Most of Cambodia's RTAs have been notified to the WTO Secretariat (Table 2.1).  
Table 2.1 Cambodia's RTAs in force: main features, 2017  
RTAs entered in Force  
ASEAN Free Trade Area  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Cambodia's merchandise trade with ASEAN countries 
(2015)  
 
WTO considera tion status  
WTO document series   
Free Trade Agreement  
12/08/1980  
01/01/1993  
2018 
Goods  
33.7% of total imports; 9% of total exports; 
-US$2.8  billion (trade deficit)  
 
Not subject to the preparation of a factual presentation  
- 
ASEAN -Australia -New Zealand (A ANZFTA)  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Cambodia's merchandise trade with ASEAN -Australia -New 
Zealand (2015):  
 Australia  
 
 New Zealand  
 
 
WTO consideration status  
WTO document se ries  
Free Trade Agreement & Economic Integration Agreement 
27/02/2009  
01/01/2010  
2025 
Goods and services  
 
 
 0.3% of total imports; 1% of total exports; 
-US$57  million (trade deficit)  
 0.04% of total imports; 0.1% of total exports; 
+US$2.4  million (trade s urplus)  
 
Factual presentation distributed  
WT/REG284/1/Rev.1  
ASEAN -China (ACFTA)  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Cambodia's merchandise trade with ASEAN -China (2015)   
 
WTO cons ideration status  
WTO document series   
Free Trade Agreement & Economic Integration Agreement  
29/11/2004 (Goods); 14/01/2007 (Services)  
01/01/2005 (Goods); 01/07/2007 (Services)  
2020 
Goods and services  
36.8% of total imports; 4.7% of total exports; 
-US$3. 5 billion (trade deficit)  
Factual presentation distributed  
WT/REG279/1 (Services)  
ASEAN -India (AIFTA)  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Cambodia's merchandise trade with ASEAN -India (2015)  
 
WTO consideration status  
WTO document series   
Free Trade Agreement & Economic Integration Agreement  
13/08/2009 (Goods); 13/11/2014 (Services)  
01/01/2010 (Goods); 01/07/2015 (Services)  
2024 
Goods and services  
1.1% of total imports; 0.1% of t otal exports; 
-US$104.3  million (trade deficit)  
Factual presentation distributed  
WT/COMTD/RTA/8/1 (Goods); WT/REG372/1 (Services)  
ASEAN -Japan (AJCEP)  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected fe atures)  
Cambodia's merchandise trade with ASEAN -Japan (2015)  
 
WTO consideration status  
WTO document series   
Free Trade Agreement  
26/03/2008  
01/12/2008  
2026 
Goods  
4% of total imports; 6.7% of total exports; 
+US$148.6  million (trade surplus)  
Factual Presen tation not distributed  
- 
                                                
35 Online ASEAN information. Viewed at: http://asean.org/?static_post=rcep -regional -comprehensive -
economic -partnership%20 . WT/TPR/S/364 • Cambodia  
 
- 30 - 
 
  RTAs entered in Force  
ASEAN -Republic of Korea (AKFTA)  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
Cambodia's merchandise trade with ASEAN -Republic of 
Korea (2015)  
 
WTO consideration st atus  
WTO document series   
Free Trade Agreement & Economic Integration Agreement  
24/08/2006 (Goods); 21/11/2008 (Services)  
01/01/2010 (Goods); 14/10/2010 (Services)  
2024 
Goods and services  
4.3% of total imports; 1.6% of total exports; 
- US$322.2  million ( trade deficit)  
 
Factual Presentation not distributed  
- 
ASEAN Framework Agreement in Services  
Type of agreement  
Date of signature  
Entry into force  
End of the transition period  
Coverage (selected features)  
WTO consideration status  
WTO document series   
Free Trade Agreement   
 
1 July 2015   
 
Services  
Notified under Article V:7(a) of GATS  
 
Source:  WTO Secretariat, based on information from the WTO RTA database. Viewed at: 
http://rtais.wto.org/UI/PublicSearchByMemberResult.aspx?MemberCode=116&lang=1&redirect=1 ; 
WTO document S/C/N/822, 24 August 2015; and UNSD Comtrade data.   
2.3.2.2   Other agreements and arrangements  
2.25.   Cambodia remains a beneficiary under the Generali zed System of Preferences (GSP) 
schemes of Australia, Canada, the European Union, Iceland, Japan, Kazakhstan, New Zealand, 
Norway, the Russian Federation, Switzerland, Turkey, and the United States.36 As an LDC, 
Cambodia is entitled to additional preference s such as duty -free (and/or quota -free) treatment or 
tariff reductions from China, Chinese Taipei, Kyrgyz Republic, Tajikistan, and the Republic of 
Korea; during the review period, such treatment was also granted by Chile. According to the 
authorities, bet ween 2013 and 2016 an annual average of 74.5% of garments and clothing 
exports, followed by shoes (6.5%) and rice (3.5%), benefited from GSP treatment overseas.  
2.26.   Cambodia continues to benefit from duty -free and quota -free access to the EU market under 
the 2001 Everything -But-Arms Initiative (EBA), which is part of the EU's GSP programme for LDCs. 
According to the authorities, between 2013 and 2016 an annual average of about 75% of 
garments and clothing exports to the EU, followed by shoes (8.2%) and rice (5 .6%), benefited 
from EBA treatment. It is also a signatory to a July 2006 Trade and Investment Framework 
Agreement (TIFA) with the United States aimed at promoting greater trade and investment flows 
in both countries and providing a forum to address bilate ral trade and investment issues in the 
areas of customs arrangements, trade facilitation and intellectual property rights. Cambodia 
received USAID assistance in the implementation of the Trade Facilitation Agreement for 
classifying categories.37 Favourable changes in the rules of origin governing the EBA initiative, 
Canada's Least Developed Country Tariff (LDCT) programme, and the implementation of free trade 
agreements with ASEAN Dialogue Partners (Section 2.3.2.1), triggered sharp increases in 
Cambodia's e xports, in particular garment exports, to those countries.38  
2.4  Investment Regime  
2.27.   During the review period, Cambodia's liberal and relatively investor -friendly policy and legal 
framework has attracted businesses and investments anticipating the opportunities arising from 
the regional integration envisaged under the ASEAN Economic Community (AEC) 
(Section  2.3.2.1).39 Nevertheless, its international ranking in terms of ease of doing business 
                                                
36 WTO online information. Viewed at: http://ptadb.wto.org/Country.aspx?code=116 ; UNCTAD (2015), 
Generalized System of Preferences – List of Beneficiaries , 1 February. Viewed at: 
http://unctad.org/en/PublicationsLib rary/itcdtsbmisc62rev6_en.pdf . 
37 Office of the United States Trade Representative online information. Viewed at: 
https://ustr.gov/sites/default/files /uploads/agreements/tifa/asset_upload_file152_9651.pdf . 
38 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://mop.gov.kh/Home /NSDP/NSDP20142018/tabid/216/Default.aspx .  
39 World Bank Group (2016), Improving Macroeconomic and Financial Resilience - Cambodia Economic 
Update - April 2016 . Viewed at: WT/TPR/S/364 • Cambodia  
 
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  remains relatively low.40 A favourable investment environment is among th e key determinants of 
competitiveness which, according to the authorities, is enhanced through many initiatives including 
the Cambodia Industrial Development Policy 2015 -2025 which links the industrial structure into 
the regional and global production netw ork and value chains (Section 4.3.2).41 According to 
Cambodia's Diagnostic Trade Integration Strategy and Trade SWAp Roadmap 2014 -2018 
(Section  2.2), the country needs to enhance the competitiveness of its business environment so as 
to attract new investmen t and grow new businesses and jobs thus expanding and diversifying its 
export base.42 Challenges remain in traditional areas such as weaknesses in infrastructure (cost of 
electricity, transport), weak governance, limited capacity in government agencies, and  access to 
and cost of finance despite some improvement in this field as demonstrated by recently released 
indicators (Sections 4.2.2.2 and 4.4.5). A series of emerging challenges include: skill shortages 
and mismatch, logistics and trade facilitation, tec hnology upgrading and innovation, and the need 
to build "fiscal space" (i.e. flexibility of a government in its spending choices). The authorities 
indicated that all these issues are being addressed.  
Policy and institutional framework  
2.28.   In 2016, the Governme nt put into effect the " Policy Paper on Public -Private Partnerships for 
Public Investment Project Management, 2016 –2020"  in a comprehensive manner and in 
accordance with international standards, aiming to improve and enhance an enabling environment 
to cont inue to promote participation from the private sector in public investment.43 
2.29.   The Council for the Development of Cambodia (CDC) remains the executive agency in 
charge of public and private investment and special economic zones (SEZs). It coordinates the 
reception and the allocation of financial assistance and investments according to the needs and 
priorities set by the Government.44 The Cambodian Investment Board (CIB), which deals with 
investment projects out of SEZs, and the Cambodian Special Economic Zone Board (CSEZB) in 
charge of investment projects in SEZs are the CDC's operational arms (Section 3.2.4). The CDC 
maintains a Japan Desk (since 3 November 2007) and a Korea Desk (since May 2015), where 
experts on Japan and the Republic of Korea provide invest ment promotion and facilitation support 
to investors from these countries.45 As of mid -2017, the CDC was about to set up an EU Desk in 
cooperation with the EU Chamber of Commerce (EuroCham) in Cambodia. As at 2015, the 
Government was intending to initiate c omprehensive institutional reform with a view to enhancing 
the CDC's mandate in essential functions such as policy decision -making, preparation and 
                                                                                                                                                  
http://documents.worldbank.org/curated/en/403961467989523939/pdf/104756 -REVISED -PUBLIC -Final-CEU-
April-2016-English.pdf .  
40 According to the World Bank's Doing Business 2013 and 2017 reports, following a n improvement 
(133rd out of 185 countries in 2013) Cambodia's rank declined from 128th out of 189 countries in 2016 to 
131st out of 190 countries in 2017 in overall terms of the ease of doing business. Cambodia ranked 179th in 
2017 down from 180th in 2016 in terms of ease to start business due to an increase in the number of days 
spent to start a business from 87 to 99. Furthermore, in terms of access to credit, it ranked 7th in 2017 
compared to 14th in 2016. World Bank Group (2013), Doing Business 2013: Sm arter Regulations for Small and 
Medium -Size Enterprises , Washington, DC. Viewed at: 
http://documents.worldbank.org/curated/en/994071468016859813/pdf/NonAs ciiFileName0.pdf ; World Bank 
(2016), Doing Business 2016: Measuring Regulatory Quality and Efficiency, Washington DC. Viewed at: 
http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual -Reports/English/DB16 -Full-
Report.pdf ; World Bank (2017), Doing Business 2017: Equal Opportunity for All, Washington DC. Viewed at: 
http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual -Reports/English/DB17 -
Report.pdf ; and http:/ /www.doingbusiness.org/data/exploreeconomies/cambodia . 
41 Ministry of Commerce (2014), Cambodia's Diagnostic Trade Integration Strategy and Trade SWAp 
Roadmap 2014 -2018, January, Phnom Penh. Viewed at: 
http://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/Cambodia's%20DTIS%20Executive%20
Summary%202014 -2018%20 -%20EN5_19_2014_15_1 8_31.pdf . 
42 Ministry of Commerce (2014), Cambodia's Diagnostic Trade Integration Strategy and Trade SWAp 
Roadmap 2014 -2018, January, Phnom Penh. Viewed at: 
http://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/Cambodia's%20DTIS%20Executive%20
Summary%202014 -2018%20 -%20EN5_19_2014_15_18_31.pdf .  
43 Ministry of Economy and Finance  (2016), Policy Paper on Public -Private Partnerships For Public 
Investment Project Management 2016 –2020, 22 June. Viewed at: 
http://ppp.mef.gov.kh/sites/default/files/ Approved%20PPP%20Policy_Eng.pdf .  
44 Sub–Decree No. 60 of 5 April 2016. Viewed at: http://www.cdc -crdb.gov.kh/default.htm . 
45 CDC online information. Viewed at: http://www.cambodiainvestment.gov.kh/investment -
scheme/responsible -organization.html . WT/TPR/S/364 • Cambodia  
 
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  implementation of plans, and addressing emerging challenges, but no recent information on this 
matter was av ailable from the authorities.46 
Regulatory framework  
2.30.   No changes were made to the 1994 Law on Investment (last amended in 2003), the main 
piece of legislation governing investment in Cambodia. Under Sub -decree No. 111 
(27 September  2005) on the Implementatio n of the Amendment to the Law on Investment, 
foreign and national capital receives the same treatment except for activities and land ownership 
subject to investment restrictions (see below).47 Legally registered companies compete on an 
equal footing when bi dding on contracts or seeking tax and non -tax incentives for qualified 
investment projects (QIPs) (see below and Sections 3.3.1 and 4.3.4). Cambodia does not have a 
forced localization policy obliging foreign investors to use domestic contents in goods or 
technology; according to the authorities it fully complies with WTO rules on trade -related 
investment measures.48 The 2004 Law on Taxation remains the main piece of legislation governing 
taxation on foreign investment, repatriation of profits and tax incent ives (Section 3.3.1).49 
According to the authorities, both domestic and foreign investments on QIPs are subject to the 
following taxes: corporate profits tax (20%), tax on individual salaries (zero to 20%), withholding 
tax (4% to 15%) and value -added tax (z ero to 10%).50 Foreign investment is subject to same tax 
rates as domestic investment including in SPZs and EPZs (Section 3.2.4 and 3.3.1).  
Restricted activities  
2.31.   All sectors other than those contained in the negative list of Sub -Decree No. 111 (2005) 
remai n open to foreign investment and 100% foreign ownership is allowed; with regard to 
state-owned enterprises, the Government must directly or indirectly hold more than 51% of the 
capital or the voting rights.51 The prohibited activities comprise: production/p rocessing of 
psychotropic substances and narcotic substances; p roduction of poisonous chemicals, agricultural 
pesticides/insecticides and other goods by using chemical substances prohibited by international 
regulations or the World Health Organization that  affect public health and the environment; 
processing and production of electrical power by using any waste imported from a foreign country; 
and, forestry exploitation business prohibited under the Forestry Law.52 In a few sectors, such as 
cigarette manufac turing, movie production, rice milling, gemstone mining and processing, 
publishing and printing, wood and stone carving production, silk weaving, certain 
telecommunications services, radio and television broadcasting and certain tourism services, 
foreign i nvestment is subject to local equity or workforce participation, or prior authorization from 
the authorities (Sections 4.4.4.1, 4.4.4.2 and 4.4.7).53 
2.32.   Under the Constitution, only Cambodian citizens and legal entities have the right to own 
land.54 However, a 2010 law allows foreign ownership of properties located above the ground floor. 
                                                
46 Cambodia Industrial Development Policy 2015 -2025, 6 March 2015. Viewed at: 
http://www.cambodiainvestment.gov.kh/content/uploads/2015/09/IDP -English -Version -FINAL1.pdf . 
47 Sub-Decree No. 111, 27 September 2005. Viewed at: 
http://www.cambodianembassy.jp/web2/?page_id=552&lang=en ; and CDC online information. Viewed at: 
http://www.cambodiainvestme nt.gov.kh/investment -scheme/policies -toward -fdi.html . 
48 United States Department of State online information. Viewed at: 
http://www.state.gov /e/eb/rls/othr/ics/investmentclimatestatements/index.htm?year=2016&dlid=254269 . 
49 CDC online information. Viewed at: 
http://www.cambodiainvestment .gov.kh/content/uploads/2012/02/Law -on-Taxation -of-2004_0401.pdf . 
50 United States Department of State online information, "Investment Climate Statements for 2016". 
Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/investmentclimatestatements/index.htm?year=2016&dlid=254269#wr
apper .  
51 CDC online information. Viewed at 
http://www.cambodiainvestment.gov.kh/content/uploads/2011/10/Sub -Decree -111-on-Implementation -
LOI_050927.pdf . 
52 CDC online information. Viewed at: http://www.cambodiainvestment.gov.kh/investment -
scheme/prohibited -fields -of-investment.html . 
53 United States Department of State online information, "Investment Climate Statements for 2016". 
Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/investmentclimatestatements/index.htm?year=2016&dlid=254269#wr
apper . 
54 Article 44 of the  Constitution.  WT/TPR/S/364 • Cambodia  
 
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  No more than 70% of a building can be foreign -owned, and foreigners cannot own property within 
30 km of the national border.55 Foreign investors may also use land through conces sions and 
renewable leases, although, in May 2012, the Government imposed a moratorium on Economic 
Land Concessions (ELCs), which allow long -term leases of state -owned land. It has also been 
reviewing previously granted ELCs and has revoked certain ELCs on  the grounds that the recipients 
had not followed through with the projects or complied with the ELC terms and conditions. In 
2014, the Minister of the Environment cancelled 23 ELCs totalling approximately 90,000 hectares 
of land, ostensibly for failing to  develop the land pursuant to the terms of the ELC. By 
end-September 2015, the Ministry of Agriculture, Forestry and Fisheries had cancelled 15 ELCs. In 
July 2015, the term of ELCs was reduced from 70 -90 years to 50 years and since then no new 
ELCs have be en granted.  
Registration and approval  
2.33.   All businesses (domestic and foreign) are required to register with the MoC and the General 
Department of Taxation (GDT), and obtain operating permits from the relevant line ministries; 
businesses involved in activiti es that are eligible as qualified investment projects (QIPs) (see below 
and annex 1 of Sub -Decree 111) are also required to register with the CDC. In January 2016, the 
MoC launched a business registration portal that allows all existing and new businesses to register 
their companies online.56 The firm's QIP -related application to the CDC may be made either prior 
to or after registration at the MoC. The CDC operates as the One -Stop Shop and obtains on behalf 
of the investment applicant all licences required f or investment from the relevant agencies listed in 
the Conditional Registration Certificate (CRC). The relevant government agencies must issue the 
required documents no later than 28 working days from the date of the issue of the Conditional 
Registration C ertificate; at the end of this period, the CDC issues a Final Registration Certificate.57 
2.34.   The CDC must consult and obtain the approval of the Council of Ministers for investment 
projects with the following characteristics: a) capital investment of US$50 mil lion or more; 
b) politically sensitive investment with significant impact on the public interest or the environment; 
c) exploration and exploitation of mineral and natural resources; d) long -term development 
strategy; and e) build -own-transfer (BOT), build -own-operate -transfer (BOOT), build -own-operate 
(BOO), or build -lease-transfer (BLT) schemes. Projects with capital of under US$2 million can be 
approved by Provincial Municipal Investment Subcommittees.58 Between 1 January 2012 and 
31 December 2016,  the CD C approved 711 QIP projects: 70 in agriculture (68.7% foreign), 584 in 
manufacturing (87.3% foreign), 29 in tourism (37.5% foreign), and 28 in other services (52.5% 
foreign).  
Investment promotion  
2.35.   The CDC continues to administer a package of investment ince ntives to both domestic and 
foreign investment, which remain unchanged since the previous TPR of Cambodia. To be eligible, 
investment projects (rather than companies) must be registered for Qualified Investment Project 
(QIP) status, which allows for the gr anting of certain tax incentives (Sections 3.3.1 and 4.3.4).59 
                                                
55 USTR (2016), 2016 National Trade Estimate Report on Foreign Trade Barriers . Viewed at: 
https://ustr.gov/about -us/policy -offices/press -office/reports -and-publications/2016/2016 -national -trade -
estimate . 
56 Ministry of Commerce online information. Viewed at: http://www.businessregistration.moc.gov.kh ; 
United S tates Department of State online information, "Investment Climate Statements for 2016". Viewed at: 
https://www.state.gov/e/eb/rls/oth r/ics/investmentclimatestatements/index.htm?year=2016&dlid=254269#wr
apper . 
57 CDC online information. Viewed at: 
http://www.cambodiainvestment.gov.kh/ investmentscheme/investmentapplicationprocedures.html . 
58 Ministry of Commerce (2014), Cambodia's Diagnostic Trade Integration Strategy and Trade SWAp 
Roadmap 2014 -2018, January, Phnom Penh. Viewed at: 
http://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/Cambodia's%20DTIS%20Executive%20
Summary%202014 -2018%20 -%20EN5_19_2014_15_1 8_31.pdf .  
59 Non-QIP-eligible investment projects include: all kinds of commercial activity, import, export, 
wholesale, and retail, including duty free shops; any transportation services by waterway, by road, by air 
except investment in the railway sector ; restaurants, karaoke parlours, bars, nightclubs, massage parlours, 
fitness, etc.; tourism services; casino and gambling business; currency and financial business and services 
such as banks, financial institutions, and insurance companies; activities rela ted to newspaper and media, 
including radio, television, press, magazine, etc.; professional services; production and processing of wood 
products using wood from natural forests with a legal domestic supply source for raw materials; complex WT/TPR/S/364 • Cambodia  
 
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  These incentives include: a corporate tax holiday of up to nine years ("Trigger period" + 3 years 
+ "priority period" determined under financial management law);  a special depreciation allowance  
(more attractive for capital -intensive projects) for a deduction of 40% of the value of tangible 
assets used in production in their year of purchase or first year of use; import taxes exemption on 
production equipment, construction materials, and producti on inputs used to produce exports; and 
investment guarantees from the Government.60 QIP incentives are also granted to projects located 
in SEZs (e.g. Special Promotion Zones (SPZs) or Export Processing Zones (EPZs)); additional 
incentives to SEZs include VA T exemption regardless of the destination of the produced goods and 
special customs procedures.61 A QIP may be in the form of a joint venture between Cambodian 
entities, between Cambodian entities and foreign entities, or between foreign entities. There is no 
limitation on the nationality or the share -holding proportion of each shareholder, except in cases 
where a joint venture owns or intends to own land or has an interest in land in Cambodia; in such 
cases, the maximum combined share -holding of all foreign  parties must not exceed 49%.62 
Dispute settlement  
2.36.   Cambodia's 2006 Law on Commercial Arbitration, the framework for private arbitration of 
business disputes, follows international practices and remains unchanged.63 A National Arbitration 
Centre (NAC) under t he auspices of the MoC, established in July 2006, became operational in 
March 2013, but has limited capacity and has received only four cases to date. Parties involved in 
a commercial dispute that have a written arbitration agreement may seek settlement by  means of 
quasi -judicial methods without involvement of the Cambodian courts, except when required by the 
relevant 2006 Law. Following the 2014 judicial organization (Section  2.1), commercial chambers 
were created in order to resolve trade and investment d isputes. However, as most investors are 
still reluctant to use the judicial system to resolve commercial disputes, most of these disputes are 
settled through arbitration, in most cases, facilitated by the MoC and the Cambodian Chamber of 
Commerce.  
2.37.   Cambodia  has been a member of the Convention on the Settlement of Investment Disputes 
between States and Nationals of Other States (ICSID Convention) since 2005. Cambodia has also 
been a signatory to the New York Convention on the Recognition and Enforcement of Fo reign 
Arbitral Awards 1958 (the New York Convention) since 1960.  
Bilateral treaties developments and international cooperation  
2.38.   Cambodia remains a signatory to bilateral investment promotion and protection agreements 
with more than 28 partners; during the r eview period, it signed four new bilateral investment 
promotion and protection agreements with Bangladesh (17 August 2014), Belarus (23 April 2014), 
the Russian Federation (3 March 2015), and Hungary (14 January 2016).64 The agreements 
                                                                                                                                                  
resorts, includ ing hotels, theme parks, sport facilities, zoos with less than 50 hectares; hotels below 3 -star 
grade; real estate development; and warehouse facilities. CDC online information. Viewed at: 
http://www.cambodiainvestment.gov.kh/investment -scheme/investment -incentives.html . 
60 The Law on Investment guarantees the investment as follows (Article 8 to Article 11 of "Amended Law 
on Investment"): non -discriminatory trea tment except for land -ownership of land; non -adoption of 
nationalization policy adversely affecting investors in Cambodia; non -fixing the price or fee of the products or 
services of a QIP; unrestricted purchase and remittance abroad of foreign currencies t hrough the banking 
system for the payment for imports and repayment of principle and interest on international loans, royalties 
and management fees, remittance of profits, and repatriation of invested capital. CDC online information. 
Viewed at: http://www.cambodiainvestment.gov.kh/investment -scheme/investment -guarantee.html . 
61 QIPs in the area of agriculture and agro -industry may benefit from a three -year "prior ity period" of 
corporate tax exemption. CDC online information. Viewed at: 
http://www.cambodiainvestment.gov.kh/investment -scheme/investment -incentives.html  . 
62 CDC online information. Viewed at: 
http://www.cambodiainvestment.gov.kh/investmentscheme/investmentapplicationprocedures.html .  
63 United States De partment of State online information, "Investment Climate Statements for 2016". 
Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/in vestmentclimatestatements/index.htm?year=2016&dlid=254269#wr
apper . 
64 Agreements in force as at June 2017 were in place with: Austria, Belarus, Myanmar, China, Croatia, 
Cuba, Czech Republic, Democratic People's Republic of Korea, France, Germany, Hungary, Indonesia, Japan, 
Kuwait, Lao PDR, Malaysia, the Netherlands, Pakistan, the Philippines, Republic of Korea, the Russian 
Federation, Singapore, Switzerland, Thailand, Viet Nam, and the Organization of the Petroleum Exporting 
Countries (OPEC). Future agreeme nts are apparently planned with Algeria, the Belgium -Luxembourg Economic WT/TPR/S/364 • Cambodia  
 
- 35 - 
 
  generally provide for  reciprocal national treatment, excluding benefits deriving from membership 
in future customs unions or free trade areas and agreements relating to taxation, as well as most 
favoured nation treatment, and do not contain negative lists. The agreements precl ude 
expropriations except those that are undertaken for a lawful or public purpose, are 
non-discriminatory, and are accompanied by prompt, adequate, and effective compensation at the 
fair market value of the property prior to expropriation. They also guara ntee repatriation of 
investments and provide for settlement of investment disputes via arbitration. Furthermore, 
Cambodia is part of the ASEAN Comprehensive Investment Agreement (Section 2.3.2.1).  
2.39.   On 20 May 2016, Singapore and Cambodia signed Cambodia's fi rst ever double taxation 
agreement (DTA), which was followed on 13 October 2016 by a second DTA with China. 
Furthermore, Cambodia concluded DTAs with Brunei Darussalam and Indonesia; the relevant 
agreements are to be signed in late -2017. Cambodia is also n egotiating DTAs with other ASEAN 
member States and ASEAN dialogue partners, i.e. China, Japan, and the Republic of Korea. 
Cambodia has been one of the very few countries in the world not to have either DTAs (also called 
double taxation treaties (DTTs)) or tax-sparring agreements, due to a lack of expertise/experience 
in this area.65 Cambodia is part of the Multilateral Investment Guarantee Agency (MIGA) 
Convention. As of January 2017, no projects were guaranteed by MIGA.  
 
                                                                                                                                                  
Union, Bulgaria, Egypt, Israel, Iran, Libya, Malta, Qatar, The former Yugoslav Republic of Macedonia, Turkey, 
the United Kingdom, and Ukraine. United States Department of State online  information, "Investment Climate 
Statements for 2016". Viewed at: 
https://www.state.gov/e/eb/rls/othr/ics/investmentclimatestatement s/index.htm?year=2016&dlid=254269#wr
apper . 
65 Online information. Viewed at: http://www.vdb -loi.com/cambodia -tax-and-legal/cambodia -signs-its-
first-ever-double -taxation -agreement/ . WT/TPR/S/364 • Cambodia  
 
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  3  TRADE POLICIES AND P RACTICES BY ME ASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
Customs procedures  
3.1.  In recent years, Cambodia has made significant progress in improving its customs procedures 
and harmonizing them with international standards. Use of the single administrative document 
(SAD) and the one -stop mechanism is mandatory, so as to facilitate trade and risk management. 
Under the one -stop mechanism, there is only one inspection, which streamlines customs 
procedures and reduces bureaucracy and  paperwork. Furthermore, ASYCUDA is now operational at 
all border posts so as to facilitate customs procedures as part of the one -stop service.  
3.2.  The main law governing imports in Cambodia is the Customs Law of 2007. The law is 
administered by the General De partment of Customs and Excise of Cambodia, which falls under 
the Ministry of Economy and Finance. In addition, imports are also governed by a sub -decree and 
a number of ministerial prakas and instructions (Box 3.1).  
Box 3.1 Customs laws and regulations  
1. Law on Customs,  promulgated on 20 July 2007, consists of 13 Chapters and 80  Articles.  
2. Supporting Regulations  consist of 1 Sub -Decree (Anukret), 36 Ministerial Prakas, and 9  guidelines 
as follows:  
 (a) Sub-Decree:  
 - Anukret on Prohibited and Restricted Goods List  
 (b) Ministerial Prakas:  
- Prakas on the Legal Procedure in Export -Import of Foreign Currencies  
- Prakas on Provision and Procedure of Customs Declaration  
- Prakas on Establishment and Functioning o f Customs Brokers  
- Prakas on Customs Valuation of Imported Goods  
- Prakas on Customs Bonded Warehouse  
- Prakas on Customs Temporary Storage  
- Prakas on Refund of Customs Duties and Taxes  
- Prakas on Security  
- Prakas on Reporting, Movement, Storage and Tr ansport of Exported Goods  
- Prakas on Importation of Goods under Temporary Admission  
- Prakas on Management of Documents, Books, Records, and other Information  
- Prakas on Determination of Exempt Goods  
- Prakas on Exempt Goods Control Procedures  
- Prakas o n Management of Unclaimed Goods  
- Prakas on Temporary Export of Goods  
- Prakas on Customs Formalities outside Customs Offices  
- Prakas on Extension of Customs Zone  
- Prakas on Post Clearance Audit by Customs and Excise Department  
- Prakas on Customs Transi t 
- Prakas on Special Customs Procedure in Special Economic Zone  
- Prakas on Procedures for the Management of Special Designed Goods  
- Prakas on Transportation Distribution and Possession of Imported Goods in the Customs 
Territory  
- Prakas on use of Inform ation Obtained by Customs Officers  
- Prakas on Settlement of Customs Offences  
- Prakas on Customs Tariff and Tariff Classification of Goods  
- Prakas on Reward Distribution  
- Prakas on Procedures on Payment of Duty and Taxes and other levies on Imported an d 
Exported Goods  
- Prakas on Reporting of Imported Goods  
- Prakas No. 907 MEF dated 9 October 2009, on the determination of transition fee on some 
goods under legislative procedure of customs transit  
- Prakas on the implementation of Advance Ruling on Tari ff Classification, Rule of Origin, and 
Customs Valuation  
 WT/TPR/S/364 • Cambodia  
 
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  - Prakas No. 569 MEF dated 19 August 2010, on Inspection on export import and transportation 
Means  
- Prakas No. 570 MEF dated 19 August 2010 on Complaining Procedures against Customs Record  
- Prakas  No. 452 MEF dated 11 April 2013, on High Compliant Trader Incentive Mechanism  
- Inter-Ministerial Prakas No. 581 MEF dated 10 June 2013, on Procedures for the Application to 
Import Materials, Machinery, Vehicles and Petroleum of the Grant Aid with Duties and Taxes 
Borne by the Royal Government of Cambodia under Grant Aid Framework  
- Prakas No. 311 MEF dated 19 March 2014, on Implementation of Value -Added Tax (VAT) for 
Supporting Industry or Contractor that Supplies Goods or Service for Serving the Export o f the 
Garment Industry, Textile Industry, Footwear Industry, Carry -Bag and Handbag Industry and 
Hat Industry  
- Prakas No. 316 MEF dated 19 March 2014, on the amendment of fee on inspection goods by 
scanning machine.  
 (c) Guidelines  
- Instruction No. 016 M EF.MOC dated 18 August 2004 notification on simplification of export 
procedures on textile products  
- Instruction No. 009 MEF dated 1 December 2005, on the Management of Non -commercial 
Goods  
- Instruction No. 583, 30 June 2008, on the implementation of Ini tial Post Clearance Audit 
Manual in the Customs and Excise Department  
- Instruction No. 790, 28 August 2008, and Procedures for Customs Transit  
- Instruction No. 345, 3 April 2013, on the implementation of Advance Rule on Tariff 
Classification  
- Instructio n No. 346, 3 April 2013, on the implementation of Advance Rule on Customs Valuation  
- Instruction No. 2175, 19 November 2014, on the implementation of Advance Rule on Rule of 
Origin  
- Instruction No. 1114 GDCE dated 28 November 2011, on revising the proced ures and the 
requirement of documents for customs clearance of the re -importation of the textile and 
garment products after exportation  
- Circular 004 MEF dated 24 July 2012, on the procedures for low values goods (de minimis)  
Source:  Cambodian authoritie s. 
3.3.  As per the law, every physical or legal person that imports needs to submit an import 
customs declaration. As of 2009, these must be submitted as a single administrative  document 
(SAD) through ASYCUDA.1  
3.4.  The customs broker/declarant inputs the informati on from SAD directly into ASYCUDA, which 
verifies the information and registers the SAD. The registered SAD needs to be signed and 
submitted with all required documents to a customs officer. Documents to be submitted with the 
SAD are the invoice, packing l ist, transportation documents (bill of lading/airway bill/truck bill) 
and, when necessary, manifests, licences, permits, certificate of origin and any other related 
documents such as SPS certificates. After verifying the SAD and accompanying documents, the  
customs officer assesses the SAD using the system (and associated risk management criteria), 
which in turn assigns the processing lane for the declaration.  
3.5.  The red lane signifies that the SAD must be checked against documents and the shipment is 
subject t o physical inspection before the SAD is sent to the green lane and assessed by Customs. 
The yellow lane signifies that the SAD must be checked against documents before being sent to 
the green lane and assessed by Customs. Under the green lane, the SAD is a utomatically assessed 
and a clearance document issued. However, the SAD may be subject to a post -clearance audit. 
Additionally, under the blue lane, the SAD is treated the same as under the green lane but for 
specific reasons is subject to a post clearance  audit.2 Additionally, if the SAD has been flagged as 
either red or yellow, the customs officer is required to verify the reasons as to why it has been 
identified as such; this may be due to, inter alia,  import licence requirements, withdrawal of 
sample or  history of smuggling.  
3.6.  After assessing the SAD, ASYCUDA calculates the duties, taxes and fees to be paid. These are 
paid in accordance with the regulations in force. Receipt of payment is submitted to Customs, 
                                                
1 Handbook on Customs Clearance online information. Viewed at: 
http://www.customs.gov.kh/publication -and-resources/publications/ .  
2 According to the authorities, around 15% of the shipments are directed to the red lane, 25% to the 
green lane and 60% to the blue lane.  WT/TPR/S/364 • Cambodia  
 
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  which in turn issues a customs receipt and a c argo release note. In addition, various fees are 
charged in lieu of customs processing, container checking and other service fees (Table 3.1). 
According to a time release study conducted by the Asian Development Bank and the Japan Fund 
for Poverty Reductio n in 2013, the national average time between cargo arrival and removal from 
Customs control is 2  days 14 hours and 39 minutes. The average time from lodgement of the SAD 
to removal from Customs control is 5 hours and 37 minutes and the average time between  the 
lodgement of the SAD and cargo release note (Customs time) is 1 hour and 57 minutes. It would 
appear that there is a significant gap between cargo arrival and submission of SAD, as well as 
from cargo release to physical removal from Customs control.3 According to customs authorities, 
the gap is due to time taken by other agencies, such as Camcontrol, and SPS checks.  
Table 3.1 Customs fees and charges  
Description  Fee (riel)  Service fee 
(riel)  Processing ti me 
(working days)  
Customs processing fee  
   Container (20 feet+)  
   Customs declaration on certain petroleum products  
   Container(<20 feet)   
60,000  
60,000  
40,000   
0 
0 
0  
1-2 
1-2 
1-2 
Container checking fee through TH -SCAN system  
   Container (<40 feet)  
   Container (>40 feet)   
US$20  
US$32   
0 
0  
1-2 
1-2 
Provisional customs stock of merchandise licence fee 
(one year)  20,000,000  0 1-2 
Fee for keeping goods in provisional customs stock of 
merchandise after the expired date (one day)  0.1% of the 
cost for 
calculating 
customs tax  0 Immediate  
Automobile stamp tax (one edition)  0 30,000  1-2 
Customs tax seal (one page)  0 50 1-2 
Stamp duty (stick on cigarette box) (one page)  0 4.2 1-2 
Transportation of stock permission letter (one page)  0 500 Immediate  
Contai ner seal  0 8,000  1-2 
Source:  Handbook on Customs Clearance online information. Viewed at: 
http://www.customs.gov.kh/publication -and-resources/publications/ . 
3.7.  As part of its t rade facilitation policy, Cambodia initiated a "Best Trader Programme" (BTP) in 
June 2014.4 To be included in the BTP, the trader must be: ranked in the first category of the 
Trade Credibility Management System, have registered capital in excess of 1 billi on riel, have not 
committed a customs offence in the past three years and not be in default, and have an annual 
trade volume of over US$2 million. In addition, the trader needs to have their books in order 
according to existing regulations. The trader must  also be a member of the Authorized Business 
Community, whose chairperson must also verify the financial situation and compliance of the 
trader. Currently 17 companies are members of the BTP.5 
3.8.  BTP members benefit from being given priority with regard to su bmitting declarations, goods 
and document inspections, and the release of goods. In addition, BTP members are allowed to fulfil 
customs procedures at a later time and they are exempt from the advance verification of customs 
valuation and rules of origin. B TP members also benefit from pre -arrival clearance. BTP members 
previously benefitted from reduced scanning of containers, but the authorities stated that this 
incentive has been removed and currently BTP members are required to undergo scanning as 
normal traders.  
                                                
3 General Department of Customs and Excise of Cambodia online information. Viewed at: 
http://www.customs.gov.kh/trade -facilitation/time -release -study -trs/.   
4 Prakas No. 452 MEF on High Compliant Trader Incentive Mechanism, April 2013; Decision No. 278 
GDCE on Incentive package for the best traders group and Decision No. 279 GDCE on the establishment of 
best traders management unit, February 2014; and Letter No. 790 GDCE on Incentive treatment's packages 
giving for companies which are the best traders, June 2014.  
5 Handbook on Customs Cl earance online information. Viewed at: 
http://www.customs.gov.kh/publication -and-resources/publications/ .  WT/TPR/S/364 • Cambodia  
 
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  3.9.  The authorities state that they plan to increase the number of BTP members and also fully 
implement the Authorized Economic Operator Programme in accordance with the Customs 
Strategy and Work Programme on Reforms (2014 -2018).  
3.10.   With a view to enhanc ing trade facilitation and ensuring the accuracy of the customs 
declaration, Cambodia initiated advance ruling in January 2013.6 Upon request, Customs issues an 
advance ruling on tariff classification, customs valuation and rules of origin. An advance ruli ng can 
be requested by an importer, producer of the goods, or an authorized person who will take 
responsibility for the imported goods. Advance ruling on tariff classification and rules of origin are 
usually issued within 30 working days, while those perta ining to valuation are normally issued 
within 90  working days. Advance rulings are valid for three years. Advanced rulings can be 
challenged in writing within 45 working days of issuance to the office that issued the ruling.  
3.11.   Cambodia ratified the WTO Agree ment on Trade Facilitation, and deposited its instrument of 
acceptance on 12 February 2016.  
Customs valuation  
3.12.   Cambodia applies the WTO Agreement on Customs Valuation, which has been incorporated 
into domestic legislation and also notified to the WTO.7 Furthermore, Cambodia also notified the 
WTO Committee on Customs Valuation regarding the checklist of issues pertaining to information 
on the implementation and administration on the Agreement on Customs Valuation.8 Under the 
Customs Law (Article 21), the cust oms value of imported goods shall be determined in accordance 
with the following rules:  
a. In the first instance, the customs value of imported goods shall be the transaction value.  
b. If the customs value of the imported goods cannot be determined according to  (a) then 
the customs value shall be the transaction value of identical goods.  
c. If the customs value of imported goods cannot be determined according to either (a) or 
(b) then the customs value shall be the transaction value of similar goods.  
d. If the customs  value of imported goods cannot be determined under any of the above 
provisions, then a deductive method would be used to determine the customs value of 
the imported goods.  
e. A computed method would be used to determine the price of the imported goods if the  
value cannot be determined according to (a), (b), (c) or (d).  
3.13.   If the importer disputes the transaction value or the customs value, he/she has the right 
under the Customs Law (Article 24) to appeal the decision within 30 days by writing to the Director 
General of Customs, who is required to make a decision on the matter within 60 days of receipt of 
the objection. The importer can appeal the Director General's decision to the Customs Tariff 
Committee. Furthermore, as a last resort, an importer has the right to appeal to the competent 
court against any decision of the Customs Tariff Committee within a period of 30 days from the 
date of receiving notification of that decision. Over 99% of all imports are valued according to the 
transaction value.  
                                                
6 Prakas No. 002 MEF on Implementation of Advance Ruling on Tariff Classification, Customs Valuation 
and Origin of the Goods, 4 January 2013; Instruction No. 345 GDCE Instruction on Implementation of Advance 
Ruling on Tariff Classification and Instruction No. 346 GDCE on Implementation of Advance Ruling on Customs 
Valuati on, 3 April 2013, and Instruction No. 2175 GDCE Implementation of Advance Ruling on Origin of the 
Goods, 19 November 2014.  
7 WTO document G/VAL/N/1/KHM/1, 12 March 2010.  
8 WTO document G/VAL/N/2/KHM/1, 24 October 2011.  WT/TPR/S/364 • Cambodia  
 
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  Pre-shipment i nspection  
3.14.   Cambodia has notified to the WTO that it has no laws or regulations on pre -shipment 
inspection.9 
3.1.2   Rules of origin  
3.15.   Cambodia does not employ non -preferential rules of origin; however, it has not notified the 
WTO to this effect. At the time of the la st review, Cambodia was in the early stages of developing 
a draft regulation on rules of origin.  
3.16.   Article 20 of the Customs Law states that "for imports, applicable duties and taxes are 
collected according to the origin of the goods. The origin of natural products is the country where 
they were extracted from the soil or harvested. Goods manufactured in a single country, with no 
contribution from materials from another country, originate in the country where they are 
manufactured. The procedures that the Cu stoms Administration follows in determining the origin of 
goods produced in one country that use products harvested, extracted from the soil, or 
manufactured in another country are determined by the provisions stated in the rules of origin text 
of each FTA . Imported goods benefit from the favourable treatment assigned to their origin only if 
the origin and direct transport of the goods from the country of origin to the importing country is 
properly demonstrated in accordance with the Operational Certificati on Procedure (OCP) Text of 
each FTA. The country of provenance is the country from which the goods were sent directly to the 
customs territory." Cambodia does apply preferential rules of origin to imports from ASEAN 
countries as well as those with which AS EAN has existing free trade agreements (Australia, China, 
Japan, Republic of Korea, and New Zealand). The origin of goods from FTA partner countries is 
determined by the certificate of origin issued by the exporting country, in accordance with the 
agreed r ules of origin in the respective agreements.  
3.1.3   Tariffs  
3.1.3.1   Structure  
3.17.   In 2017, the applied MFN tariff in Cambodia consists of four bands: duty -free, 7%, 15%, 
and 35%, and specific rates. Nearly all tariffs are applied on an ad valorem  basis, with just 
14 tariff l ines being subject to specific rates (compared with none in 2011). The 2017 tariff, which 
is based on the HS2017 nomenclature, comprises 10,810 lines at the eight -digit level, an increase 
from 8,298  lines in 2011, which was based on the HS2007 nomenclature  (Table 3.2). The 
difference has come about due to a change in nomenclature.  
Table 3.2 Tariff structure of Cambodia, 2011 and 2017  
(%, unless otherwise indicated)  
 MFN applied  
Final bounda   2011  2017  
Bound  tariff lines (% of all tariff lines)  100.0  100.0  100.0  
Simple average rate  11.7 12.3 20.9 
   HS01 -24 15.4 16.1 28.1 
   HS25 -97 11.1 11.5 20.9 
   WTO agricultural products  14.5 14.6 28.4 
   WTO non -agricultural products  11.3 11.9 19.8 
Duty-free tarif f lines (% of all tariff lines)  13.7 13.9 0.6 
Simple average of dutiable lines only  13.6 14.2 21.1 
Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)  0.0 0.1 0.0 
Domestic tariff "peaks" (% of all tariff lin es)b 0.0 0.0 0.01 
International tariff "peaks" (% of all tariff lines)c 9.9 12.0 50.6 
Coefficient of variation  0.8 0.8 0.5 
Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
                                                
9 WTO document G/PSI/N/1/Add.12, 26 A pril 2010.  WT/TPR/S/364 • Cambodia  
 
- 41 - 
 
   MFN applied  
Final bounda   2011  2017  
Total number of tariff lines  8,298  10,810  10,810  
   Ad valorem  rates 8,298  10,796  10,810  
      Duty-free rates  1,136  1,500  70 
   Specific rates  0 14 0 
a Based on the 2017 tariff schedule. Original bound figures are provided in HS07 nomenclature. 
Concordance to HS17 is done to the best possible extent.  
b  Domestic tariff  peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c  International tariff peaks are defined as those exceeding 15%.  
d  Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  2011 tariff is based on HS07 nomenclature; 2017 tariff is based on HS17 nomenclature.  
Source:  WTO Secretariat calculations, based on data received by the authorities.  
3.1.3.2   Applied tariff  
3.18.   The simple average (unweighted) applied MFN tariff in 2017 was 12.3%, a slight increase 
from 11.7% in 2011. The change is due to changes in nomenclature. Nearly 88% of applied tariffs 
range from zero to 15%, while the modal or most common rate is 7%; and nearly 14% of tariff 
lines are duty free (Chart 3.1).  
Chart 3.1 Frequency distribution of MFN tariff rates, 2017  
(13.9%)(38.4%)
(35.6%)
(12.0%)
(0.1%)
0%10%20%30%40%50%60%70%80%90%100%
05001,0001,5002,0002,5003,0003,5004,0004,500
Duty free 7.0% 15.0% 35.0%Chart 3.[ ]  Frequency distribution of MFN tariff rates, 2017
Number of tariff lines
Cumulative %
Number of lines (% of total)
Source:  WTO Secretariat calculations, based on data received by the authorities.Non-ad
valorem
 
Source:  WTO Secretariat calculations, based on data received by the authorities.  
3.19.   As per WTO sectoral definitions, average tariffs on agricultural products are higher than 
those for non -agricultural products. During the period under review, the average applied MFN tariff 
on agricultural products showed a negligible increase from 14.5% in 2011 to 14.6% in 2017. The 
average applied MFN tariff on non -agricultural products rose from 11.3% to  11.9% over the same 
period (Chart 3.2).  
3.20.   Duty-free rates apply to nearly 10% of agricultural tariff lines and about 15% of 
non-agricultural tariff lines (Table A3.1). The highest ad valorem  rate of 35% applies to finished 
agricultural products (processed m eat, processed fruit and vegetables, and dairy products), 
finished industrial products, alcoholic beverages, tobacco, motor vehicles, and petroleum products. 
The 15% rate is applied to capital goods, appliances, finished industrial products, and motorcycle s, 
while the zero and 7% rates are levied on some raw materials, including precious stones and 
metals. Gasoline and diesel are subject to specific rates.  WT/TPR/S/364 • Cambodia  
 
- 42 - 
 
  Chart 3.2 Average applied MFN and bound tariff rates, b y HS section, 2011 and 2017  
0%5%10%15%20%25%30%35%
010203040506070809101112131415161718192021TotalChart 3. Average applied MFN and bound tariff rates, by HS section, 2011 and 2017
01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, beverages
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment
18   Precision instrument19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.MFN 2017
Final bound
Note:  2011 tariff is based on HS07 nomenclature; 2017 tariff and final bound rates are based on HS17.
Source:  WTO Secretariat calculations, based on online data provided by the authorities.MFN 2011
 
Note:  2011 tariff is based on HS07 nomenclature; 2017 tariff and final bound rates are based on HS17.  
Source:  WTO Secretariat calculations, based on online data provided by the authorities.  
3.1.3.3   Tariff escalation and dispersion  
3.21.   According to the ISIC classification, Cambodia's tariff displays mixed escalation, with the 
tariff rate on raw materials (first stage of processing) being 10.6%, while the tariff on intermediate 
goods is 6.5%, rising again to about 15% for finished goods. Fur thermore, with regard to sectors, 
textiles and leather, chemicals and non -metallic mineral products show positive escalation, while 
food, beverages and tobacco, wood and furniture, other manufacturing and total manufacturing 
display mixed escalation (Chart  3.3).  
Chart 3.3 Tariff escalation by 2 -digit ISIC industry, 2017  
n.a.n.a.
0%5%10%15%20%25%
31 32 33 34 35 36 37 38 39 Total
manuf.Chart 3.Tariff escalation by 2 -digit ISIC industry, 2017
Average applied rate
in manufacturing
(12.4%)
First stage of processing
Semi-processed
Fully processed
n.a.       Not applicable.31   Food, beverages and tobacco      
32   Textiles and leather  
33   Wood and furniture      37   Basic metals
38   Fabricated metal products and machinery
39   Other manufacturing34   Paper, printing and publishing
35   Chemicals
36   Non -metallic mineral products
Source:  WTO Secretariat calculations, based on data provided by the authorities.
 
n.a. Not applicable.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  WT/TPR/S/364 • Cambodia  
 
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  3.22.   Apart from the overall level of the ta riff, as reflected in the average applied MFN tariff rate, 
there are potential efficiency losses depending on the dispersion of these tariff rates across 
product lines. The greater the differentials in tariff rates, especially within groups of similar and 
thus substitutable products, the higher the chance that consumer and producer decisions are 
distorted by the tariff structure. During the period under review, the coefficient of variation of the 
tariff has remained unchanged as have the proportion of tarif f lines involving domestic peaks. 
However, the proportion of those involving international peaks has increased slightly (Table  3.2). 
3.1.3.4   Tariff bindings  
3.23.   Cambodia has bound its entire tariff at the HS eight -digit level. All bound rates are 
ad valorem . The avera ge bound tariff is 20.9%. The average bound tariff for agricultural products 
(WTO definition) is 28.4%, while the average bound rate for non -agricultural products (WTO 
definition) is 19.8%. The relatively small difference (8.6 percentage points) between th e simple 
average applied MFN tariff and the average bound rate, and the fact that the entire tariff is bound, 
gives the authorities comparatively little scope to raise tariffs; thus making the import regime 
predictable.  
3.24.   The applied MFN rate exceeded the b ound rate totally for 60 lines, partially for 29 lines and 
possibly for 14 lines in 2017 (Table A3.2). The products affected include, inter alia : machinery and 
parts, fireworks, live animals, gasoline and diesel. The authorities stated that the reason for the 
breaches was change in nomenclature, and that these would be rectified.  
3.1.3.5   Tariff preferences  
3.25.   Preferential rates are granted for certain articles under the ASEAN Trade in Goods 
Agreement (ATIGA), ASEAN Australia New Zealand FTA (AANZFTA), ASEAN Republic of Korea FTA 
(AKFTA), ASEAN India FTA (AIFTA), ASEAN China FTA and ASEAN Japan FTA. Preferences under 
the ATIGA, AK FTA and the FTA with China are significantly lower than the average applied MFN of 
11.8% (Table  3.3). Furthermore, the number of duty -free ta riff lines under ATIGA, AK FTA and the 
FTA with China is also considerably greater than under the MFN Tariff. At the time of the last 
review, Cambodia had agreed to eliminate tariffs on essentially all ASEAN products by 2015, 
except for 7% of the tariff lin es for which the tariffs will be eliminated by the end of 2017. For 
products covered by the Sensitive List, the maximum tariffs will be set at 5% as of 2018. There is 
also a General Exception List for which there are no ASEAN -related tariff preferences. 
Furthermore, Cambodia is also subject to tariff reductions agreed in five  free trade agreements 
(FTAs) signed by ASEAN: with China, Cambodia's tariff rates will be reduced to zero by 2015; with 
India and the Republic of Korea by 2018; with Japan by 2026; and  with Australia and New Zealand 
by 2024.  
Table 3.3 Summary analysis of the preferential tariff, 2016  
 Total   WTO agriculture   WTO non -
agriculture  
 Average 
(%) Duty -
free 
ratesa 
(%) Coverageb 
(%)  Average 
(%) Duty-
free 
ratesa 
(%)  Average 
(%) Duty -
free 
ratesa 
(%) 
MFN 11.8 13.6   14.2 12.2  11.4 13.9 
ATIGA - ASEAN Trade In 
Goods Agreement  0.6 91.7 84.8  1.5 84.2  0.5 92.9 
AANZFTA - ASEAN Australia 
New Zealand FTA  9.4 13.9 32.6  10.8 12.3  9.2 14.1 
AKFTA - ASEAN Republic of 
Korea FTA  3.4 62.2 71.6  3.2 61.2  3.4 62.4 
AIFTA - ASEAN India FTA  8.3 13.9 63.4  8.5 12.3  8.3 14.1 
FTA with China  2.0 82.3 73.1  0.77 94.1  2.14 81.4 
FTA with Japan  .. .. ..  .. ..  .. .. 
.. Not available.  
a  Duty-free lines as a perc entage of total tariff lines.  
b  Per cent of total number of lines. Only rates that are lower than the corresponding MFN rate are 
taken into account.  
Note:  Calculations are based on national tariff line level (8 -digit).  
Source:  WTO Secretariat calculation s, based on data provided by the authorities of Cambodia.  WT/TPR/S/364 • Cambodia  
 
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  3.1.4   Other charges affecting imports  
3.26.   In addition to the customs duties, imports are also subject to a VAT, which is applied at a 
flat rate of 10%. A special tax (excise tax) is levied on certain imports,  the applicable rates are 
zero, 4.35%, 5%, 10%, 15%, 20%, 25%, 30%, 45% and 50%.10 A tax of US$0.02/litre is levied 
on gasoline imports and a tax of US$0.04/litre is levied on diesel imports (Table 3.4).  
Table 3.4 Summary of import taxes, 2017  
Tax Description  Exemptions  Rates  
Customs duties  All tariff rates are MFN 
bound and uniform for all 
countries, except for 
lower rates for ASEAN 
Dialogue Partners under 
the Common Effective 
Preferential Tariff (CEPT)  
 
Ad va lorem  rates, levied 
on c.i.f. basis  (i) imports of production 
materials, 
construction 
materials and 
production inputs for 
qualified investment 
projects (QIPs) 
approved by CDC  
(ii) imports of 
unprocessed 
agricultural products, 
seedlings, 
insecticides, 
pesticides and 
agricultural 
machinery  
(iii) imports for 
embassies, 
international 
organizations 
providing 
humanitarian aid, and 
certain development 
projects  Zero for essential 
goods, seeds, and basic 
raw materials  
7% for intermediate 
goods  
15% for machinery and 
equipment  
35% for luxury goods 
including automobiles  
Additional tax  Levied on gasoline and 
diesel oil  None US$0.02 and 0.04 per 
litre 
Value added tax (VAT)  Covers goods and 
services through all 
stages of importation, 
production, and 
distribution  Import s of agricultural 
seeds and breeding 
animals; certain kinds of 
agricultural equipment; 
on ad hoc basis 
supporting industries or 
contractors that supply 
products or services to 
export -oriented garment 
manufacturers  Uniform 10%  
Special tax  Levied on selecte d 
products locally produced 
and imported  
 
For domestically 
produced goods, 
calculated on "ex -factory 
selling price" defined as 
65% of the selling price 
before VAT and any 
discount; for imported 
goods, tax calculated 
inclusive of customs duty 
and c.i.f. val ue Imports of limited 
quantities of cigarettes, 
wine, petroleum 
products, and motor oil  Telecom services 3%; 
airline tickets 10%; 
motor vehicles 15% or 
45%; spare parts for 
motor vehicles 25% or 
10%; motorcycles and 
spare parts 5% or 
10%; cigarettes 10%; 
cigars 25%; beer 25%; 
wine and spirits 10%; 
soft drinks 10%; 
gasoline 33%; diesel 
4.3%; kerosene 10%  
Source:  Cambodian authorities.  
                                                
10 Handbook on Customs Clearance online information. Viewed at: 
http://www.customs.gov.kh/publication -and-resources/publications/ .  WT/TPR/S/364 • Cambodia  
 
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  3.27.   Taxes on international trade (including export taxes) continue to be a significant source of 
government revenue, accountin g for 58% of total government revenue in 2016 (Table 3.5). At the 
time of the last review, Cambodia's heavy dependence on trade -related taxes was gradually 
declining. Furthermore, it appears that revenue from trade taxes is very high, which may provide 
an incentive to smuggle. Additionally, revenue generated from excise taxes and VAT on imports is 
also high, which would imply targeting imports for revenue.  
Table 3.5 Share of international trade taxes in total tax revenue and forgone customs 
duties, 2010 -16 
(Billion riel and % share)  
 2010  2011  2012  2013  2014  2015  2016  
Total tax revenuea (billion riel)  4,795  5,092  6,208  7,035  9,092  12,176  13,617  
 of which (%)  
Customs duties (after exemption)  16.9 15.9 14.8 14.4 14.9 14.8 13.4 
Excise duties on imports  14.6 15.4 14.8 13.6 15.7 17.9 19.0 
Gasoline/diesel taxes  3.7 3.6 3.2 2.8 2.5 2.3 2.3 
VAT on imports  19.8 24.4 23.2 22.9 23.2 22.7 21.9 
Export taxes  0.4 1.4 0.8 1.3 1.1 0.5 0.3 
Others (fees & penalties)  0.8 0.8 0.8 1.0 1.1 1.0 1.0 
Total international trade taxes  56.3 61.5 57.6 56.1 58.4 59.1 58.0 
Forgone customs duties  (billion  riel)        
Customs duties before exemption  2,006.3  6,290.2  7,793.4  9,304.6  10,906.5  12,991.1  13,708.5  
Customs duties after exem ption 858.7  3,263.2  3,713.2  4,085.4  5,455.2  6,404.7  7,076.3  
Exemption/forgone  1,147.6  3,027.0  4,080.2  5,219.2  5,451.3  6,586.3  6,632.2  
Exemption as % of customs duties 
before exemption  57.2 48.1 52.4 56.0 50.0 50.7 48.4 
a Total tax revenue comprises di rect taxes, indirect taxes and international trade taxes.  
Source:  Cambodian authorities.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.28.   Cambodia prohibits or restricts the import of certain goods on the grounds of: protection of 
national security; protec tion of public order and standards of decency and morality; protection of 
human, animal or plant life or health; protection of national treasures of artistic, historic or 
archaeological value; conservation of natural resources; compliance with the provisio ns of any 
legislation of the Kingdom of Cambodia; and the fulfilment of obligations under the UN Charter.  
3.29.   Sub-decree No. 209/ANK/BK of 2007 (prohibited and restricted goods list) and 
No. 208/ANK/BK of 2011 identifies 1,537 tariff lines that are subject to import prohibition or 
licensing. Sub -decree No. 47/ANK/BK of 2005 on Ozone Depleting Substances (ODS) regulates the 
use, import and export of ODS within the country. In addition, Sub -decree No. 16/ANK/BK of 2016 
on the Management of Electronic and Electric al Equipment Waste stated that used electronic and 
electrical equipment were to be considered prohibited goods, however the import and export of 
such goods required permission from the Ministry of Environment (MOE). Sub -decree No. 36 
ANK/BK of 1999 on Soli d Waste Management prohibits the importation of solid and hazardous 
waste. Currently Cambodia prohibits the commercial importation of narcotics; psychotropic 
substances and their precursors, ODS (except HCFCs), toxic waste and poisonous chemicals, and 
substances and certain pesticides in accordance with toxicity classification by the WHO.11 
Additional government regulations also prohibit the importation of used computers and spare 
parts, household waste, right -hand drive vehicles and goods that infringe on i ntellectual property 
rights.  
3.30.   As per notifications made to the WTO, Cambodia requires import licences or permits for 
chemicals, pharmaceutical and narcotic drugs for medicinal purposes, forestry products, fish and 
                                                
11 Handbook on Customs Clearance online information. Viewed at: 
http://www.customs.gov.kh/publication -and-resources/publications/ ; and information provided by the 
authorities.  WT/TPR/S/364 • Cambodia  
 
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  fishery products, live animals, animal prod ucts and agricultural materials.12 Its most recent 
notification dates back to 2013.  
3.31.   The import licensing regime for chemicals is administered by the Institute of Standards of 
Cambodia (ISC). The authorities state that the system is designed for the orderly marketing of 
chemicals in the country. For those chemicals deemed dangerous, any firm using the chemicals or 
supplying a user can apply for a licence, which is usually granted within 10 working days, is valid 
for six months, cannot be extended and is non -transferable. The permissible quantity of import is 
determined by an ISC inspector and is based on valid orders for the product. There are no fees or 
charges for the licence and there is no penalty for non -utilization or under -utilization. For other 
chemica ls, there is an automatic licensing system in place.  
3.32.   Import licences for pharmaceuticals, medical materials and narcotics are issued by the 
Ministry of Health. For pharmaceuticals, the licensing system is designed to control illegal imports 
and thus ensure  the quality, safety and efficiency of products available in the market. For 
narcotics, the system is designed so as to allow Cambodia to comply with various international 
conventions on narcotics and psychotropic substances and their precursors, and with its 
responsibilities as a member of the International Narcotics Control Board. Only companies 
registered by the Ministry of Health may import pharmaceuticals and narcotics. All Cambodian 
firms are eligible to be so registered, provided that they have at le ast one employee who is a 
licensed pharmacist. In addition, there is a US$250 registration fee for each product registered, 
which has to be paid by the company to the Ministry of Health. Licences are issued within 
ten working days. They are valid for one m onth but can be extended upon request. There are no 
fees or charges for the licence, and there is no penalty for non -utilization or under -utilization. 
However, in the case of narcotics, the allocation among approved firms is determined by past 
allocations,  utilization and distribution of previous imports.  
3.33.   As regards forestry products, the system requires each importer to request an import quota 
that is valid for one year. An importer's request for an annual quota is approved by the Council of 
Ministers or t he Ministry of Agriculture, Forestry and Fisheries. No aggregate quota limiting the 
total volume or value of imports is established. The Ministry of Commerce issues import licences 
for import transactions falling within the importer's quota. A separate imp ort licence is required for 
each import transaction. The system is used to restrict the import of individual wild plants and 
wildlife that carry a high risk of spreading disease as well as to help manage forest resources in 
the region and globally.  
3.34.   Fish an d fishery products (Section 4.1.5.4) are subject to non -automatic licensing. Quotas 
are administered by the Fisheries Administration. The authorities state that the licensing is in place 
to ensure protection of bio -diversity, and to protect human health.  
3.35.   For fish and fishery products, quotas are determined according to demand and supply 
conditions and government policies on dangerous species and environmental management. Quotas 
are determined on an annual basis. There is no official application form. A req uest for a licence 
must include information on the quantity and species of fish to be imported, the period during 
which the importation will take place, the country of origin and the exporting firm. The applicant 
must also submit a health certificate from the exporting country. In addition, a licence issued by 
the CITES Management Authority of the exporting country for endangered fishery products and a 
quality control certificate in fishery pathology issued by the exporting country are also required. 
Licens ing applications are considered by the Fisheries Administration only and may take up to four 
weeks to be approved. However, if laboratory tests are necessary, the time period could be longer. 
All firms registered to do business in Cambodia are eligible to apply for an import licence. Licences 
are issued mainly on the basis of past performance, and approved quotas cannot be carried over 
from one year to the next. Licences are valid from 1 week to 6 months depending on the request 
of the importer, the quantit y requested, and actual estimation of the transportation period. The fee 
for the licence is dependent on the species of fish and the quantity to be imported. A small part of 
the fee is paid in advance and is non -refundable. This covers routine administrati ve costs and any 
laboratory test charges. Furthermore, there is also a small penalty to discourage repeated 
non-utilization.  
                                                
12 WTO documents G/LIC/N/3/KHM/1 , 23 November 2010; G/LIC/N/3/KHM/2, 2 February 2012; and 
G/LIC/N/3/KHM/3, 24 May 2013.  WT/TPR/S/364 • Cambodia  
 
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  3.36.   For forestry products (Section 4.1.5.3), the importing firm is required to apply to the 
Forestry Administration and/or the Ministry  of Agriculture, Forestry and Fisheries for an authorized 
import quota. The application must state the amount and type of wood to be imported, and include 
the contract with the seller, certificates of origin, invoice and bill of lading, as well as informat ion 
on the utilization of the wood in Cambodia. Approval of the quota is required before lodging an 
application for an import licence with the Ministry of Commerce. In addition to the authorized 
quota confirmed by the Ministry of Agriculture, Forestry and Fisheries and the Council of Ministers, 
the importer must submit a certificate of origin from the exporting country, contract with the 
seller, bill of lading, invoice and packing list. There is also an import licensing fee which is 1% of 
the total f.o.b. v alue. The fee is paid to the National Treasury via the Forestry Administration of 
the Ministry of Agriculture, Forestry and Fisheries. The licence is granted within 15 days, is valid 
for three  months and can be extended once by two months. In addition, the  importer also needs to 
obtain a transportation permit to transport the imported product from the port of entry to the final 
destination.  
3.37.   With regard to live animals and animal products, any person or legal entity registered with 
the Ministry of Commerce to do business in Cambodia can apply for sanitary inspection and an 
import licence. Importers must apply to the Department of Animal Health and Production of the 
Ministry of Agriculture, Forestry and Fisheries for a licence at least two weeks before import ation. 
Importers must also arrange for sanitary inspection of imports at least five days prior to 
importation. Documentation required to import includes: business licence issued by the Ministry of 
Commerce, import licence issued by the Ministry of Agricult ure, Forestry and Fisheries, sanitary 
certificate issued by the exporting country, animal or animal products identification and a contract 
between the owners of the goods and the Department of Animal Health and Production. There is 
no fee or charge for the  import licence. However, a service charge is levied to cover the cost of the 
sanitary inspection and a fee is charged for any laboratory tests required. The licence is valid for 
one year and can be extended upon request. There is no penalty for non -utilization; however, 
non-utilization will be taken into account in considering a subsequent licence application.  
3.38.   For agricultural materials, which include, inter alia,  fertilizers, pesticides, seeds, animal feed 
and veterinary medicines, applications for an imp ort licence are considered and granted by the 
Ministry of Agriculture, Forestry and Fisheries. Any legal person registered with the Ministry of 
Commerce can request agricultural materials registration and an import licence from the Ministry 
of Agriculture,  Forestry and Fisheries. There is no fee for the licence, and the licence is valid for 
one year without the possibility of extension. In the case of non -utilization, future licences may be 
refused.  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.39.   Camb odia does not have any anti -dumping, countervailing or safeguard legislation, and it 
has notified this to the WTO.13 At the time of the last review, a single draft law, which addressed 
anti-dumping and safeguard measures, and allowed for the later preparati on of a sub -decree 
covering countervailing measures, was being reviewed by an inter -ministerial drafting group and 
the process was expected to be completed by the end of 2011. At the time, the authorities stated 
that the draft law closely followed the WTO safeguards and anti -dumping agreements. The draft 
law detailed procedures for identifying dumping and for establishing normal values, export prices, 
and dumping margins. Procedures for the conduct of anti -dumping investigations, including the 
determination  of material injury and a causal link, and for establishing and reviewing anti -dumping 
duties, were also addressed in detail. With respect to safeguards, the draft defined serious injury 
and the threat thereof and causation. It described procedures for ini tiating and conducting 
safeguard investigations and applying safeguard measures. According to the authorities, the draft 
law is currently being reviewed by the National Assembly and is expected to be in force by the end 
of the year.  
3.1.7   Other measures affectin g imports  
3.40.   Under the Customs Law, goods brought into the Customs Territory of Cambodia for transit 
or trans -shipment are exempt from paying import duties and taxes (Article 25). Goods for foreign 
diplomatic or consular missions, international organizations and agencies of technical co -operation 
of other governments are also exempt from paying import duties and taxes (Article 26). Under 
                                                
13 WTO document G/ADP/N/1/KHM/1, G/SCM/N/1/KHM/1 and G/SG/N/1/KHM/1, 10 March 2010.  WT/TPR/S/364 • Cambodia  
 
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  Article 27 of the Law, partial exemption from import duties and taxes may be granted with respect 
to the import of seeds and  breeding animals for agriculture, and goods for temporary admission.14 
3.41.   Under temporary admission, goods are stored under customs approval in a customs 
temporary storage facility. There are three types of customs bonded warehouses. Public 
warehouses are lic ensed by the Minister of Economy and Finance, and may be operated by any 
agency of the Royal Government, or by any person. Public warehouses are open to any person 
who has the right to store the goods in the warehouse. Private warehouses are licensed by th e 
Director of Customs, and are to be used solely by specified persons to store goods for their own 
specific uses, including operators of duty -free shops. Special warehouses are licensed by the 
Director of Customs, these are a type of warehouse for goods wh ich may present a hazard, or 
could affect the quality of other goods, or could require special storage facilities. The Customs Law 
allows goods to be stored in bonded warehouses initially for up to two years (Article 47), which can 
be extended for a furthe r year. Furthermore, under certain circumstances, the MEF may authorize 
the establishment of customs manufacturing bonded warehouses, for the purpose of processing or 
manufacturing of goods. Goods accepted in customs manufacturing bonded warehouses are als o 
exempt from import duties and taxes (Customs Law Article 49).  
3.42.   Qualified investment projects (QIPs) are entitled to have certain customs duties and taxes 
exempted (Sections 2.4 and 4.3.3). The coverage of the exemption depends on the category of 
the QIP. Domestic QIPs are those that do not endeavour to export; in such cases, import duties on 
production equipment and construction material are exempt. However, if any goods produced by 
the domestic QIP are exported directly or indirectly, the customs duties l evied on the inputs used 
in the production of such goods are refunded after a quarterly review.  
3.43.   Export QIPs are those that export part or all of their production. For export QIPs, customs 
duties are exempted on production equipment, construction materials and production inputs. A 
supporting industry QIP supplies its entire production to an export QIP, which uses these products 
as a substitute for imported inputs. For such enterprises, production equipment, construction 
materials and production inputs are ex empt from customs duties. If the QIP does not supply its 
entire production to the export industry or directly export its products, the quantity of its 
production inputs used to produce those goods shall be subject to customs duties and taxes after a 
quarte rly review.  
3.44.   For the export garment industry (Section 4.3.4), VAT and special tax on imported inputs is 
borne by the Government, while for other export industries special tax on imported production 
inputs is borne by the Government. Additionally, inputs imp orted by a supporting industry QIP for 
supply to the garment industry, textile industry, footwear industry, carry -bag and handbag 
industry and hat industry, are exempt from VAT. Special tax on supporting industry QIPs' import of 
production inputs is also e xempt.15 
3.45.   An enterprise which is a zone investor in a Special Economic Zone (SEZ) is entitled to the 
same incentives and privileges as a QIP mentioned above (paras 3.42 and 3.43). Value added tax 
and special tax on imported production equipment, construction  materials and production inputs 
are exempted for an export QIP. However, a domestic QIP receives value added tax exemption 
only on imported production equipment and construction materials.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requir ements  
3.46.   The Customs Law of 2007 is also the main legislation governing exports. Under Article 16 of 
the Law, "all goods to be exported must be reported at a Customs office or other location as 
determined by the Director of Customs. The Minister of Economy a nd Finance may by Prakas 
determine the time, manner, documentation requirements, circumstances and exceptions with 
respect to the reporting, movement, storage and transportation of goods to be exported". As 
stated, the exporter needs to obtain Customs and Excise's permission to export, which is usually 
                                                
14 Handbook on Customs Clearance online information. Viewed at: 
http://www.customs.gov.kh/publication -and-resources/publications/ .  
15 Handbook on Customs Clearance online information. Viewed at: 
http://www.customs.gov.kh/publication -and-resources/publications/ .  WT/TPR/S/364 • Cambodia  
 
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  given once goods and documents have been checked by Customs and Camcontrol and found to be 
in order. After getting the permission to export, the exporter needs to file an export customs 
declaration as a SAD t hrough ASYCUDA. In addition to the SAD, an invoice, packing list, 
transportation documents (bill of lading/airway bill/truck bill) and when necessary manifests, 
licences, permits, certificate of origin and any other related documents such as SPS certificat es, 
must be submitted. The customs clearance process follows the same procedure as that for imports 
(see Section 3.1.1). Once the customs declaration has been processed and export taxes (if 
applicable) have been paid, the goods are released for export.  
3.47.   For garment exports, physical inspection of these goods is done jointly and simultaneously 
by both customs and Camcontrol, which then issue a single Joint Inspection Report. After a 
physical inspection, customs and Camcontrol seal the container with a customs  seal and a 
Camcontrol seal. The customs seal must be checked and verified along with the export documents 
before being exported.  
3.48.   With regard to the export of rice and other agricultural products, customs clearance can be 
conducted at the place of growing or the place of processing. Furthermore, rice exports are given 
priority and do not follow the first in, first out principle; they are also exempt from the customs 
processing fee.  
3.2.2   Taxes, charges, and levies  
3.49.   With a view to encouraging local processing and t hus encouraging the export of finished 
products and to protect human health, Cambodia levies export taxes on certain products. The tax 
is applied at zero, 5%, 10%, 15%, 20% and 50%. Products subject to the tax include: timber, 
unprocessed rubber (Section 4 .1.5.2), uncut precious stones, and fish and crustaceans, molluscs 
and other aquatic products (Table 3.6). Export taxes accounted for less than 1% of customs 
revenue in 2016 (Table  3.5). 
Table 3.6 Export taxes , 2016  
Tax Description  Exemptions  Rates  
Export taxes     
Timber  Ad valorem  tax levied on the 
value of processed woods 
limited to those cut on 
government -agreed 
concessions; Export ban on all 
round logs in place since 1997  None 5% or 10%  
Rubber  Specific  tax None If the price of rubber is less than 
US$1,000/tonne then there is no 
tax. 
If the price is US$1,001 -
2,000/tonne, then the applicable 
tax is US$50/tonne, if the price is 
US$2,001 -3,000/tonne, then the 
applicable tax is US$100/tonne, if 
the price is U S$3,001 -
4,000/tonne, then the applicable 
tax is US$200/tonne, and if the 
price is greater than 
US$4,000/tonne, then the 
applicable tax is US$300/tonne.  
Other  Ad valorem  tax levied on 
livestock and fishery products 
and on sand, gravel, and 
granite  None 10% 
Source:  Cambodian authorities.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.50.   Under the provisions of Sub -decree No. 209/ANK/BK of 2007 (prohibited and restricted 
goods list) and No. 208/ANK/BK of 2011, Cambodia restricts and prohibits the export of c ertain WT/TPR/S/364 • Cambodia  
 
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  goods. Exports of antiques, certain narcotic and psychotropic substances and their precursors, 
toxic materials, hazardous waste, ozone depleting substances, except hydrofluorocarbons (HCFCs), 
certain logs, precious stones and metals and weapons is p rohibited in the interest of, inter alia : 
protecting national security, protecting public order, decency and standards of morality, protecting 
the environment, conserving Cambodian heritage and protection of human, animal and plant life 
and health. Prohibi tions also apply to any fish species mentioned on the CITES list of endangered 
species as provided for in Sub -decree No.  123 (2009).  
3.51.   Exports of certain products are subject to export licences, certificates and permission letters 
(Table 3.7). Exports of unp rocessed rubber, processed wood and non -timber forest products 
require an export licence (for environmental reasons). The application procedure for such licences 
has not changed since the last review. The exporter must submit an application to the Ministry  of 
Agriculture, Forestry and Fisheries (MAFF, along with the usual supporting documentation (invoice, 
bill of lading, etc.) and documentary evidence that the products are from legal sources. The 
Forestry Administration examines the application and makes a  recommendation to MAFF, which in 
turn makes a recommendation to the cabinet of the Council of Ministers, which grants an export 
quota to the applicant. The quota is valid for one year, and may be renewed. After receiving a 
quota, the applicant may apply f or an export licence from the Ministry of Commerce. A licence is 
required for each export transaction within the quota. The export licence is made out to the 
Forestry Administration, which is the sole entity authorized to export wood and wood products, 
and which exports the goods on behalf of the applicant. The applicant must also secure a 
transportation permit from the Forestry Administration to transport goods to export points. 
Applications for certificates and permits must be made directly to the relevan t ministries.  
Table 3.7 Export licences, permits, and certificates  
Type of goods  Documentation  Government authority  
Primary processed rubber  - Export licence (valid 60 days)  - Ministry of Commerce  
Processed wood and non -timber 
forest products  - Export licence (valid 60 days)  
- Permit letter  - Ministry of Commerce  
- Ministry of Agriculture, Forestry 
and Fisheries  
- Council of Ministers  
Raw fruit, vegetables, plants and 
agricultural materials (includes 
pestici des, fertilizers, seed, and 
seedling materials, feed additives)  - SPS certification  - Ministry of Agriculture, Forestry 
and Fisheries  
Garments  - Certificate of origin (valid 
6 months)  - Ministry of Commerce  
Drugs and medicines  - Certificate, Ministry of Health 
(valid 3 months)  - Ministry of Health  
Live animals  - Animal health or CITES 
certificate (valid 5 years)  - Ministry of Agriculture, Forestry 
and Fisheries  
Art and cultural products  - Authorization  
- Permit letter (valid 1 year)  - Ministry of Cultur e and Fine Arts  
Fish, crustaceans, molluscs, and 
other aquatic products  - Transportation permit letter  
- Certificate of aquatic animal 
health  - Ministry of Commerce  
- Fisheries Administration (MAFF)  
Jewellery, silverware and uncut or 
unprocessed precio us stones  - Permit letter (valid 1 year)  - National Bank of Cambodia  
Source:  Handbook on Customs Clearance online information. Viewed at: 
http://www.customs.gov.kh/publicatio n-and-resources/publications/ .  
3.2.4   Export support and promotion  
3.52.   The authorities stated that Cambodia does not provide any export subsidies. Furthermore, 
Cambodia has notified the Committee on Agriculture that no export subsidies were provided to the 
sector.16 
3.53.   During the period under review, there has been no change to the trade promotion regime in 
Cambodia. The General Directorate of Trade Promotion (GDTP) of the Ministry of Commerce is the 
main agency promoting Cambodian exports. The GDTP has three department s responsible for 
                                                
16 WTO document G/AG/N/KHM/3, 2 April 2015.  WT/TPR/S/364 • Cambodia  
 
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  exhibition affairs, market development and trade policy. As such, the responsibilities and activities 
of the GDTP include initiating, organizing, and participating in domestic and overseas trade fairs, 
and providing assistance to local co mpanies wishing to organize and/or participate in such fairs.  
3.54.   The GDTP also works with Cambodia's overseas trade missions to identify possible overseas 
markets and develop strategies for penetrating those markets, which also includes matching 
potential cli ents. Cambodia has opened four trade promotion centres in China, and one each in 
Viet Nam and Thailand. The GDTP's website contains a list of products whose producers are 
seeking foreign markets, and the GDTP established and manages the Electronic Market 
Communication System, which provides information on prices, trades, buyers, and sellers. 
Furthermore, the GDTP hosts an annual One Province One Product and Import -Export Exhibition 
(OPOP), which has foreign participation. The GDTP is also a counterpart to v arious development 
partners and international organizations in implementing trade promotion programmes.  
3.55.   As a part of the World Bank's Trade Facilitation and Competitiveness Project, the 
Government set up the Export Market Access Fund (EMAF) to help registe red Cambodian firms in 
their efforts to penetrate foreign markets. The EMAF was a US$1.6 million co -financing facility 
designed to provide technical assistance and matching grants to Cambodian exporters. It provided 
co-financing (up to 50%) in the form of cash grants for eligible activities, with a ceiling of 
US$30,000. Eligible activities included investigating export markets; product adaptation to meet 
export -market requirements; and product promotion. The EMAF also provided Cambodian 
businesses with link s to international and national experts to support export development, 
planning, and execution. Dedicated specialists were made available to help applicants secure EMAF 
funding and to support export marketing activities. A total of 75 firms and business as sociations 
were supported by EMAF, of which approximately 65% were Cambodian owned and 41% were 
based outside Phnom Penh. The main sectors supported by the EMAF were agriculture and food 
processing (41%), fashion and handicrafts (24%), tourism (9%), IT (9% ), and healthcare and 
beauty (6%). Supported activities included research on new markets and products, attendance at 
key trade shows, and obtaining certifications to access new export markets.17  
3.56.   In addition to direct assistance, the Government has taken st eps to give Cambodian 
products a competitive advantage over similar products of other countries. For example, in 
conjunction with the International Labour Organization, the Better Factories Programme 
establishes a system for the regular monitoring of work conditions in individual factories, through 
unannounced visits, and worker and management interviews. The results of the monitoring are 
made available to the factories, including recommendations for improving work conditions. These 
reports are subsequently  posted on a website, where they may be examined by buyers. The 
Ministry of Commerce (MoC) enforces this programme by requiring the participation of all factories 
seeking an export certificate of Cambodian origin. Only factories that are registered with th e 
Ministry may export, and the condition for registration is membership in the Garment 
Manufacturers Association of Cambodia and in the Better Factories Programme of the Department 
of Exhibition Affairs.18 
Special Economic Zones (SEZs)  
3.57.   During the period und er review, there were no changes in the legislation governing SEZs or 
in the administration of SEZs. Sub -decree (No. 148) of 2005 on the Establishment and 
Management of Special Economic Zones continues to be the main legislation governing SEZs. The 
Law is administered by the Cambodia Special Economic Zone Board (CSEZB), which is an 
operational arm of the Council of Development of Cambodia (CDC).19 At the time of the last 
review, the Law on Special Economic Zones had been drafted by the CDC and was to be subm itted 
to the Council of Ministers for approval, however this is still pending. According to the authorities, 
it is still being drafted, and they expect both the law on investment and the law on SEZs to be 
passed at the same time.  
                                                
17 Emerging Markets Consulting online information. Viewed at: 
http://www.emergingmarkets.asia/consulting/news/2014/02/21/export -market -access -fund/ .  
18 Better Factories Cambodia online information. Viewed at: http://betterfactor ies.org/?page_id=979 .  
19 The Cambodian Investment Board (CIB) and the Cambodian Special Economic Zone Board (CSEZB) 
are the CDC's operational arms for private sector investment. CIB deals with investment projects out of special 
economic zones (SEZs) and C SEZB takes charge of investment projects in SEZs.  WT/TPR/S/364 • Cambodia  
 
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  3.58.   Applications for the devel opment of a SEZ must be made to the CSEZB. There is an 
application fee of 15 million riel. The CSEZB approves (in principle) or rejects the application within 
28 working days. If approved, the zone developer must provide a detailed feasibility study within  
180 working days. Within 100 working days of the receipt of the feasibility study, the CSEZB 
issues a final registration certificate and subsequently a sub -decree is issued establishing the SEZ 
and its boundaries.20 
3.59.   SEZs are eligible for a number of incent ives, including profit tax holidays and rebates, 
special depreciation, exemption from import duties and taxes, zero -rate VAT on imports, and 
special customs procedures (Section 3.3.1).  
3.60.   The authorities state that there are currently 46 SEZs that have been approved in 
Cambodia; of these, 16 are operational (Table 3.8). Total exports from SEZs in 2016 were over 
US$1.35 billion, an increase from US$1.12 billion in 2015. Additionally, according to the 
authorities, exports from SEZs had exceeded US$300 million i n the first quarter of 2017. 
Furthermore, during the period under review, 212 projects were set up inside the SEZs, with an 
investment outlay of over US$3.5 billion creating over 85,000 jobs.21 
Table 3.8 List o f SEZs  
Operational  Under construction  Non operational  
Manhattan SEZ  Kerry Worldbridge Logistic SEZ  S.N.C SEZ  
Tai Seng Bavet SEZ  Qilu SEZ  N.L.C SEZ  
Dragon King SEZ  Duong Chhiv Phnom Den SEZ  Oknha Mong SEZ  
Shandong Shunshell Svay Rieng SEZ  Kampot SEZ  D & M Bavet SEZ  
Phnom Penh SEZ  Thary Kampong Cham SEZ  Kampong Soam SEZ  
Hi-Park SEZ  Kirisakor Koh Kong SEZ  P (SEZ) I.C  
Sihanouk Ville SEZ  H.K.T SEZ  Suoy Chheng SEZ  
Sihanouk Ville Port SEZ  Stung Hao SEZ & International Sea Port  Giga Resource SEZ  
Neang Ko k Koh Kong SEZ  Chhak Kampongsaom SEZ  Ratana SEZ  
Poi Pet O'Neang SEZ 1  Tian Rui Agricultural Trade SEZ  Sihanouk Ville SEZ 2  
Sanco Poi Pet SEZ  Today Bokor SEZ  Kandal SEZ  
Sihanouk Ville SEZ 1  Suvannaphum SEZ  M D S Thmorda SEZ  
Goldfame Pak Shun SEZ   Try Ph eap Oyada SEZ  
  Zhong Jian Jin Bian Jing Ji Te Qu SEZ  
Source:  Information provided by the authorities.  
3.2.5   Export finance, insurance, and guarantees  
3.61.   The banking system provided support to exports by providing, inter alia , letters of credit 
and bills of excha nge (Table 3.9).  
Table 3.9 Export finance, 2011 -16 
(US$ million)  
 2011  2012  2013  2014  2015  2016  
Standby letters of credit  849,664  805,598  1,720,918  1,197,940  1,141,616  1,506,512  
Bills of exchange  62,97 2  33,507  48,412  34,227  64,346  31,124  
Source:  Information provided by the authorities.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.62.   Cambodia offers a number of incentives to investors and producers under a variety of 
schemes (Table 3.10). Depen ding on the type of qualified investment project (QIP), such 
enterprises are exempt from paying import duties, VAT and special tax on imported production 
machinery, construction materials, production inputs, intermediate goods and accessories (for 
                                                
20 The CSEZB is responsible for obtaining all the necessary approvals and clearances from the 
Government.  
21 CDC information provided by the authorities.  WT/TPR/S/364 • Cambodia  
 
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  further details see Section 3.1.7). In addition, QIPs can choose to either receive an exemption on 
profit tax, or use special depreciation.  
Table 3.10 Incentives under the Law on Investment  
Profit tax   
1. Standard C IT 
 (for legal persons)  - 20% 
2. Other income taxes  
 (sole proprietorship)  - Progressive rate from 0 -20% depending on amount of taxable profits  
Tax incentives   
1. Sectors, geographical 
areas, and labour 
qualified for incentives  Pioneer or high -tech, job  creation, export, tourism, agri - and processing, 
infrastructure, energy, rural development, environment, and SEZ  
2. Tax holidays  Holiday not limited by commencement of operations  
Either 6 or 9 years starting in first year of sales  
Or 3-6 years from the l ast day of the tax year immediately preceding the tax 
year in which profits are first derived  
5-year loss carry forward  
4. 3. Import duties and VAT 
 exemptions  - 100% duty exemption on inputs for export -oriented production, plus VAT 
exemption if located i nside SEZs  
- VAT exemption on both inputs and sales of supporting industries (their 
contractors receive only VAT exemption on sales) to export -oriented 
garment and footwear sectors.  
Source:  Council for Development of Cambodia.  
3.63.   The profit tax exemption is initially for a "trigger period" plus three years and a priority 
period, which depends on the type of industry and amount of investment.22 The priority period is 
for a maximum of three years (Table 3.11).  
Table 3.11 Minimum conditions required for the provision of incentives  
Fields of investment  Requirement for 
investment  
Supporting industry, which has its entire production (100%) supplying export 
industry  US$100,000 or more  
Production of animal feed  US$200,00 0 or more  
Production of leather products and related products  
Production of all kinds of metal products  
Production of electrical and electronic appliances and office materials  
Production of toys and sporting goods  
Production of motor vehicles, parts and a ccessories  
Production of ceramic products  US$300,000 or more  
Production of food products and beverages  
Production of products for textile industry  
Production of garments, textiles, footwear and hats  
Production of furniture and fixtures that do not use nat ural wood  
Production of paper and paper products  
Production of rubber products and plastic products  
Clean water supplies  
Production of traditional medicines  
Freezing and processing of aquatic product for export  
Processing of any kind of cereals and crop pr oducts for export  US$500,000 or more  
Production of chemicals, cement, agriculture fertilizer and petrochemicals 
Production of modern medicines  US$1,000,000 or more  
                                                
22 The trigger period is the period commencing on the i ssuance of the Final Registration Certificate and 
ending on the last day of the taxation year immediately preceding the earlier of (a) if the QIP derives a profit, 
the taxation year in which the profit is first derived, and (b) if the QIP derives income fr om the Investment 
Activity in respect of the sales of goods or services, the third taxation year after the taxation year in which the 
income is first derived.   WT/TPR/S/364 • Cambodia  
 
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  Fields of investment  Requirement for 
investment  
Construction of modern market or trade centre  US$2,000,000 or more  
More than 10,000 square  
meters  
Adequate space for car park  
Training and educational institutes that provide training for skill 
development, technology or poly technology that serves industries, 
agriculture, tourism, infrastructure, environment, engineering, sciences and 
other s ervices  US$4,000,000 or more  
International trade exhibition centre and convention halls  US$8,000,000 or more  
Source:  Cambodia Investment Board online information. Viewed at: 
http://www.cambodiainvestme nt.gov.kh/ . 
3.64.   Special depreciation is a one -time 40% depreciation allowance on the value of new or used 
tangible properties used in production or processing.  
3.65.   There are certain projects which are not eligible for incentives, these include: all kinds of 
comme rcial activity, import, export, wholesale, and retail, including duty -free shops; 
transportation services except the railway sector; restaurants, karaoke parlours, bars, nightclubs, 
massage parlour, fitness, etc.; tourism services; casinos and gambling bus inesses; currency and 
financial business and services such as banks, financial institutions, and insurance companies; 
activities related to newspaper and media, including radio, television, press, magazine, etc.; 
professional services; production and proce ssing of wood products using wood from natural forest 
with a legal domestic supply source for raw materials; resorts, including hotel, theme park, sport 
facilities, zoo with less than 50 hectares; hotels rated less than 3 -stars; and real estate 
development  and warehouses facilities.23 
3.66.   Incentives offered to SEZs are differentiated between zone developers and zone investors. 
Zone investors are provided the same incentives as QIPs with regards to customs duty and taxes. 
Additionally, all imports by a zone inves tor are zero -rated with respect to VAT. However, in the 
event that any proportion of the output is sold in the domestic market, the zone investor needs to 
pay VAT on the amount sold in the local market.  
3.67.   In addition to the incentives provided to zone invest ors with regards to customs duties and 
taxes, zone developers are provided a tax holiday on profit tax for up to a maximum of nine years. 
Furthermore, developers may request, under the form of a temporary admission, the import of 
means of transport and mac hinery used for the construction of infrastructure in accordance with 
the laws and regulations in force; they may also obtain a land concession from the State for 
establishing the SEZ in areas along the border or in isolated regions in accordance with the Land 
Law, and may lease this land to the Zone Investors.24 SEZs also benefit from special customs 
procedures.  
3.68.   In addition to tax incentives offered to QIPs and SEZs, tax incentives are provided to 
companies listed on the Cambodian Stock Exchange and public investors who hold and/or trade 
government securities, equity and/or debt securities on the securities market. Listed companies 
are entitled to a 50% reduction on the annual tax on profit payable for three years, starting from 
the beginning of the current tax year if the securities are issued within the first half of the tax year 
or the following tax year if the securities are issued within the second half of the tax year. The 
incentive is effective for three years from the signing of the sub -decree.25 Also, the listed 
companies are entitled to suspend payment of monthly prepayment of tax on profit for the period 
in which they are entitled to tax incentives under the sub -decree. A QIP is not entitled to the tax 
reduction during the tax holiday period. Public investors are entitled to a 50% reduction on the 
withholding tax payable on interest and/or dividends received from the above securities for 
three  years, starting from the signing of the sub -decree. However, there are various conditions 
                                                
23 Cambodia Investment Board online information. Viewed at: 
http://www.cambodiainvestment.gov.kh/investment -scheme/investment -incentives.html . 
24 Cambodia Investment Board online information. Viewed at: 
http://www.cambodiainvestment.gov.kh/investment -scheme/investment -incentives.html . 
25 Sub-decree on Tax Incentives in Securities Exchange Sector, 8 January 2015. Information provided 
by the authorities.  WT/TPR/S/364 • Cambodia  
 
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  under which the Min istry of Economy and Finance can forfeit the tax incentives granted to the 
listed companies.  
3.69.   Under Prakas issued by the Ministry of Economy and Finance in 201126, tax incentives are 
also provided for rice farming, paddy rice purchase and the export of mille d rice.  
3.70.   Under the Prakas, VAT is applied at the following rates: domestic supplies of paddy rice: 
zero, domestic supplies of milled rice: 10%; export of milled rice: zero; supplies of milled rice or 
milled rice production services to rice exporters (subje ct to specific conditions): zero; supplies of 
milled rice or milled rice production services to the local market: 10%; input VAT related to rice 
farming, paddy rice purchase, and export of milled rice is creditable or refundable. Moreover, 
under Prakas 313  issued by the Ministry of Economy and Finance on 19 March 2014, input VAT 
related to the import of production inputs and equipment to produce milled rice for export is borne 
by the government (subject to specific conditions); for local purchases of produc tion inputs, except 
for paddy rice, it is applied at 10%.  
3.71.   Additionally, rice farming, paddy rice purchase and the export of milled rice are tax exempt 
from the 1% minimum tax, entitled to a tax holiday period (i.e. trigger period plus three years plus 
three-year priority period) and exempt from a 1% pre -payment of tax on profit during the tax 
holiday period.27  
3.3.2   Standards and other technical requirements  
3.72.   During the period under review, there have been no changes to the legislative or regulatory 
framework gove rning technical regulations and standards in Cambodia. The main legislation 
governing standards and technical regulations continues to be the 2007 Law on Standards in 
Cambodia, which is administered by the Institute of Standards of Cambodia (ISC). The ISC,  which 
falls under the Ministry of Industry and Handicrafts, is mandated to research and set national 
standards, certify products or companies on standards compliance pertaining to both products and 
systems, disseminate standards and create awareness, work  with international bodies to achieve 
international recognition of national standards and gain accreditation for national conformity 
assessments, and license, regulate or revoke product and systems certifications. The ISC has four 
departments: Information,  Standards Development, Training and Consultancy, Certification and 
Regulatory, and Accreditation. The ISC is also the national enquiry point (NEP) for Cambodia as 
well as the notification authority. Furthermore, Cambodia is a subscriber member of the 
International Organization for Standardization (ISO), an affiliate member of the International 
Electrotechnical Commission (IEC), and a member of the ASEAN Consultative Committee for 
Standards and Quality (ACCSQ). It is also a signatory to the ASEAN sectoral m utual recognition 
arrangement for electrical and electronic equipment (ASEAN EEE MRA).  
Standards development  
3.73.   The National Standards Council (NSC), which was created in 2009, is responsible for 
coordinating the development of national standards. The NSC adv ises the ISC on the criteria and 
procedures needed for the preparation, approval, acceptance and selection of the standards. It is 
also responsible for approving proposals for Cambodian standards, which have been prepared and 
recommended by the ISC. The NS C is chaired by the Minister of Industry and Handicraft and 
includes representatives from relevant technical line ministries. The NSC is the national secretariat 
which oversees, regulates, verifies, and adopts or certifies standards proposed by each techni cal 
ministry. The mandate of the NSC is to ensure quality and standard conformity with national and 
international standards.  
3.74.   Cambodia mainly uses the ISO/IEC Guide 21 -1 and 21 -2:2005 as a national guide to adopt 
international standards as national standard s or technical regulations. Presently there are 
804 Cambodian standards, mainly on foods, electrical appliances, and test methods28, of which 
151 are adopted as technical regulations. Nearly 83% of Cambodian standards are aligned with 
international standard s. 
                                                
26 Praka s 779 on Additional Tax Incentives for Rice Farming, Paddy Rice Purchases, and Production of 
Rice for Export of 2011.  
27 Information provided by the authorities.  
28 Information provided by the authorities.  WT/TPR/S/364 • Cambodia  
 
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  3.75.   With regard to standards development, stakeholders, who have determined the need for a 
particular standard, submit a request to this effect to the ISC, which in turn creates a new work 
item proposal (NWP), which is submitted to the NSC for formal approv al. The NSC assigns the 
NWP to the relevant technical committee or working group. After deliberation in the relevant 
committee or working group, a draft Cambodian Standard is circulated for public comment. The 
period for public comment lasts 60 days. After  receiving public comments, the draft standard is 
finalized by the technical committee/working group and forwarded to the NSC for approval. The 
Cambodian standard is finally approved by the Minister before being published in the official 
gazette.  
Conformit y assessment and product certification  
3.76.   It is under the ISC's purview to supervise and provide technical support to the line 
ministries to help them develop their standards in conformity with national standards. The ISC is 
also responsible for testing for c ompliance with mandatory Cambodian Standards, conducting 
conformity assessment and production surveillance.29 Furthermore, the ISC also monitors and 
verifies the compliance of the technical regulations of each ministry/agency. Where it has no 
relevant natio nal capacity, Cambodia uses the test results of recognized and accredited foreign 
laboratories.  
3.77.   There are a few certification or inspection bodies operating in the private sector.30 
Government agencies such as Camcontrol carry out inspection and testing, al though they are not 
internationally accredited. There are no government -accredited bodies and there is no Cambodian 
accreditation body signatory to an international cooperation agreement such as the ILAC 
(International Laboratory Accreditation Cooperation)  or APLAC (Asia Pacific Laboratory 
Accreditation Cooperation).  
3.78.   The ISC product certification scheme is based on the ISO/IEC Guide, which provides rules 
for a third -party certification system of determining conformity with product standards through 
testing and assessment of the factory quality management system. The ISC provides licences for 
products related to health and safety conforming to mandatory standards and licences for products 
conforming to voluntary standards.31 Licences are issued for an initial period of three years and 
can be extended for subsequent three -year periods provided the obligations under which the 
licence was granted continue to be fulfilled. After the issuance of a licence, the concerned products 
can be affixed with an ISC mark.  
3.79.   Additionally, the ISC is also helping Cambodian enterprises obtain ISO 9001, ISO 14001 and 
HACCP certification. In this regard, eight ISC staff members have qualified as lead auditors for 
ISO 9001, three staff members have qualified as lead auditors for ISO 14 001 and four staff 
members have qualified as lead auditors for ISO 22000. According to the authorities, the ISC's 
certification body is in the process of setting up a quality management system for the product 
certification scheme in compliance with the req uirements of the ISO/IEC 17065 and the system 
certification scheme is accredited by the Joint Accreditation System of Australia and New Zealand 
(JAS-ANZ) complying with ISO/IEC 17021 requirements.  
Testing, inspection and compliance  
3.80.   Under the provisions of the Law on the Management of Quality and Safety of Products and 
Services of 2000, the Cambodia Import -Export Inspection and Fraud Repression Directorate 
General (Camcontrol) in the Ministry of Commerce is responsible for the safety and quality 
standards, a s well as the certification and verification of imports and exports. Export inspection 
covers garments, agricultural products, rice, wood and processed food. Import inspection 
concentrates on food, agricultural chemicals, petroleum, textiles and garments. Domestic market 
surveillance targets food safety and commercial fraud. Camcontrol operates laboratories for food 
                                                
29 The ISC's testing laboratory, the Industrial Labor atory Centre of Cambodia (ILCC), has been 
accredited by Australia's National Association of Testing Authorities (NATA) and the Singapore Accreditation 
Council -Singapore Laboratory Accreditation Scheme (SAC -SINGLAS).  
30 For a list of certification and inspec tion bodies, please see: http://www.da -canc.gov.kh/en .  
31 For details on pre -requisites for licences, registration, pre -grant of licences and post certification 
please see: http://www.isc.gov.kh/en/detail/view/116?ctype=article .  WT/TPR/S/364 • Cambodia  
 
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  testing, for cereal testing and for petroleum products. Violations of the Law can result in 
confiscation of the offending goods, fines and lega l proceedings.  
Labelling  
3.81.   Under the Law, labels or marks are not required for all imports; however, products must 
have their labels certified and registered with relevant ministries before being imported into 
Cambodia. Labels for different products are regu lated and certified by different ministries. 
Suppliers of products that could harm public health or safety are also required to certify that the 
products comply with the standards set by the Institute of Standards of Cambodia (ISC). Imports 
of pre -packaged  foods must be labelled in accordance with Cambodian standards on food labelling.  
3.3.3   Sanitary and phytosanitary requirements  
3.82.   The main pieces of legislation covering the SPS regime are the Law on the Management of 
Pesticides and Fertilizers of 2012, the Fishe ries Law of 2006, the Law on Seed Management and 
Plant Breeders Rights of 2008, the Sub -decree on Phytosanitary Inspection of 2003, the Law on 
Forestry of 2002, and the Law on Animal Health and Production of 2016. The Ministry of 
Agriculture, Forestry and Fisheries (MAFF) has the primary responsibility for the implementation of 
these Laws. In addition, there are the draft laws on plant protection and phytosanitary measures 
and on the quality and safety of agricultural products as well as the draft law on ru bber, which will 
also be administered by MAFF when they come into force. Cambodia is also committed to 
complying with a number of international agricultural compliance/quality standards in line with the 
International Standards Organization (ISO), Internati onal Plant Protection Convention (IPPC), 
World Organization for Animal Health (OIE), Southeast Asia Fisheries Development and Centre 
(SEAFDEC), Association of National Rubber Producing Countries and the International Rubber 
Development Board, and the Codex  Alimentarius Commission (CAC). Furthermore, at the time of 
its accession to the WTO, Cambodia scheduled its full implementation of the WTO SPS Agreement 
by 2008 and notified the Ministry of Commerce as the national enquiry point for SPS.  
3.83.   Under the provis ions of the Laws, MAFF, through its various General Directorates and 
Departments, is responsible for animal, plant, and fish health. The General Directorate of Animal 
Health and Production (GDAHP) is responsible for the inspection of animals and animal pro ducts 
and for issuing the Animal Health Certificate, as required under the OIE animal health code and 
standards. MAFF/GDAHP issues import permits for animals and animal products based on risk 
assessment.32 Furthermore, the new Law on Animal Health and Produ ction of 2016 is designed to 
"modernize and standardize protocols to protect animal health, human health, and the 
environment. GDAHP envisages sustainable livestock development by ensuring food security, food 
safety, and profitable trade and contributing t o national socio -economic growth". In this respect, 
the authorities stated that DGAHP has a fully equipped laboratory under the National Animal 
Health and Production Research Institute (NAHPRI) with capacity to analyse  the quality of 
veterinary drugs and a nimal feed, chemical residues , pesticides, growth promoters and other 
contaminants in animal, meat, and animal products, food -borne pathogens, and diagnosis of 
livestock diseases including 200 zoonoses. The Law allows MAFF to control both the quality of fe ed 
and medicine. However, under the law, vaccinations remain voluntary, but it is expected that MAFF 
will be more proactive in cracking down on the companies selling products related to veterinary 
health. The legislation also sets standards for imports of livestock from neighbouring countries, 
while trying to ensure that Cambodian exports meet regional standards, so as to smooth the 
transition to regional integration. The Law also provides for specific penalties, such as the 
suspension of licences and fines , for farmers and abattoirs employing dangerous practices.  
3.84.   The General Directorate of Agriculture (GDA) is responsible for import/export inspections of 
plants and plant products. The GDA is also mandated to issue permits and phytosanitary 
certificates in c ompliance with the International Plant Protection Convention. Sub -decree No. 15 
(2003) on Phytosanitary Inspection relates to preventing entry of plant pest and diseases through 
Department of Plant Health inspection and quarantine facilities, and the issua nce of phytosanitary 
                                                
32 Key regulations include: Sub -decree No. 16 on Sanitation Inspection of Animal and Animal Products 
(2003); and Sub -decree No. 108 on Slaughterhouse Management, Sanit ary Inspection of Animals, Meat and 
Animal Products (2007), which includes: (i) the definition of slaughterhouses according to animal or poultry to 
be slaughtered, and size of the unit; (ii) location and licensing arrangements and; (iii) sanitary inspectio n 
procedures.  WT/TPR/S/364 • Cambodia  
 
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  certificates, transit arrangements, plant health inspectors powers and enforcement penalties. 
Under Proclamation No. 002 MAFF of 2007 on the List of Maximum Residue Limits (MRL) of 
Pesticides in Agriculture Products of Plant Origin, MR Ls for 42 pesticides have been identified33; 
these are based on ASEAN MRLs.34 The GDA is mandated with the responsibility of administrating 
and enforcing these. However, testing facilities for MRLs are limited.  
3.85.   The issuing of fish health certificates and imp ort/export permits for fish and fishery products 
is the responsibility of the Fisheries Administration, which is also responsible for inspection. 
However, analytical capabilities of the Fisheries administration continue to be limited, and complex 
analysis such as for biotoxins is undertaken by internationally accredited laboratories. 
Furthermore, the law on Fisheries (2006) stipulates that the Fisheries Administration is the central 
competent authority responsible for managing, controlling and inspecting th e safety and quality of 
fish and fisheries products so as to ensure public health protection, and fair fisheries trade.  
3.86.   Currently, food safety is covered under the Law on the Management of Quality and Safety of 
Products and Services (2000) administered by  Camcontrol, which is a part of the Ministry of 
Commerce. The Law, in conjunction with Sub -decree No. 59 (2008) and Sub -decree No. 127 
(2016), gives Camcontrol the mandate for:  
 inspection of imports and exports, jointly with Customs and Excise;   
 consumer protection through product safety and suppression of fraud;   
 export certification to meet importing country requirements;  
 establishing and implementing a strategic plan and policy to ensure fair trade practices 
and protect economic interests of market co mpetition;  
 combating unlawful activities of business operators in relation to both horizontal and 
vertical agreements;  
 reviewing and studying agreements between business operators who have powers to 
restrain competition;  
 checking of compliance of products with relevant standards and regulations;   
 reviewing health and safety of products from production through to commercialization, 
and submission to competent authorities;   
 the control of products and services on the domestic markets;   
 management of MoC la boratory product testing facilities;   
 provision of a commercial inspection service;  
 collection of inspection fees relating to import/export quality testing; and  
 acting as the Secretariat of National Codex Committee and SPS National Enquiry Point.35  
3.87.   Camc ontrol undertakes food inspections at border entry points and in domestic markets. 
Imported food, including food ingredients and food additives, must comply with the general food 
safety standards and requirements for food labelling, nutritional quality and  safety, as stipulated in 
the existing laws and regulations of Cambodia. On the domestic front, Camcontrol is responsible 
                                                
33 According to the authorities, the list is being updated.  
34 IPPC online information. Viewed at: 
https://www.ippc.int/static/media/files/reportingobligation/2015/03/30/1332517104_15.Proclamation__002_M
AFF_-_MRL__2013042321 -18En.pdf .  
35 MoC Declaration No. 141 (Prakas of 2003) on Formation of SPS Enquiry Office (Point) under 
Camcontrol, nominated  Camcontrol as SPS enquiry point and to work closely with the National Codex unit and 
to create SPS awareness within the country.  WT/TPR/S/364 • Cambodia  
 
- 59 - 
 
  for the surveillance and monitoring of: labelling, quality and safety of food and other regulated 
products. The import -export inspecti on services are subject to fees as stipulated in the Joint 
Declaration (Prakas) between Ministry of Economy and Finance and Ministry of Commerce on 
Public Service provided by Ministry of Commerce dated 16 December 2014. The imported food 
products are inspe cted based on certain risk criteria and may involve physical checks, sample 
testing, and documentary checks.  
3.88.   Camcontrol has 5 to 20 inspectors in each province and Phnom Penh. Commercial 
inspections are also Camcontrol's responsibility. Camcontrol has a ce ntral testing laboratory 
located in Phnom Penh, which has the capacity to analyse food and petroleum products. The 
testing capacities for food are mainly focused on chemical and microbiological parameters. 
Additionally, Camcontrol also has mobile labs for conducting market monitoring and surveillance 
with regard to chemical food safety hazards, as well as mobile labs for conducting petroleum 
quality testing and volume quantity at service stations. Mini -labs facilities are also being 
introduced at some borde r entry points such as Sihanouk port, Poi Pet and Bavet.  
3.89.   In 2015, the Government circulated a draft law on Food Safety. The law was drafted in 
collaboration with the FAO and received inputs from various ministries and stakeholders. Under the 
provisions of  the law, a Food Safety Authority (FSA) is to be created. The FSA would be 
responsible for protecting domestic consumers, as well as ensuring exports meet international 
standards. Under the draft law, selling food that contains harmful substances, mislabel ling food, 
preparing or selling food in unhygienic conditions, and operating a food business without a licence 
are punishable offences. The authorities stated that the law would improve enforcement of existing 
regulations that fall under the purview of Cam control. According to the authorities, the draft law is 
being discussed at the technical working group of the council of ministers, and is expected to be 
submitted to the Inter -Ministerial Meeting of Council of Ministers by the end of 2017 and to the 
Natio nal Assembly by the end of 2018. The current daft law will complement the Law on the 
Management of Quality and Safety of Products and Services. Camcontrol is expected to administer 
the law.   
3.90.   The Ministry of Health (MoH) is responsible for public health and  food safety issues as 
stipulated in Sub -decree No. 67. The Department of Drugs and Food under the MoH is responsible 
for food and drug control and is the focal point on the ASEAN Food Safety Expert Group. The 
Department consists of five Bureaus: Registrat ion and Cosmetics; Essential Drugs; Pharmaceutical 
Trade; Drug Regulation; and Food Safety Bureau (FSB), which is also the focal point within the 
ASEAN Food Safety Network.  
3.91.   Cambodia has a Bio Safety Law of 2007 and Sub -decree No. 58 of 2010 which addresses  
the implementation of the Biosafety Law. Under the Law and the Sub -decree, the Ministry of 
Environment is the competent authority to implement the Law. The aims of the Law and the 
Sub-Decree are: (i) to prevent a negative impact on conservation of biologi cal diversity, 
environment and human health; (ii) to ensure effectiveness of conservation and usage of 
biodiversity in a sustainable manner; (iii) to promote an awareness of modern bio -technology and 
to hinder and prevent risks to modified living organisms ; and (iv) to protect the environment and 
human health. As such the Law stipulates that all export of modified living organisms from the 
Kingdom of Cambodia shall be implemented in accordance with Chapter 4 of the Law on Biosafety. 
Legal or natural persons  that wish to export the modified living organisms permitted by the Law on 
Biosafety from the Kingdom of Cambodia shall give written notification in advance to the 
appropriate institutions of the importing country before submitting the application for expo rt 
permit from the appropriate Cambodian ministry.  
3.92.   The import of living modified organisms (LMOs)/genetically modified organisms (GMOs) into 
the Kingdom of Cambodia is through the National Steering Committee for LMO/GMOs and 
Technical Working Group for Ris k Assessment consisting of officials from relevant Ministries. The 
Steering Committee must submit the result of the risk assessment to the Ministry of Environment, 
which makes the decision to import or not. The Law and the Sub -decree address LMOs and/or 
GMOs. Cambodia was one of more than 100 countries to sign the Cartagena Protocol on Biosafety 
at the 2000 Convention of Biological Diversity.  With respect to the SPS regime, shortcomings 
identified by FAO and STDF in 201036 continue to be relevant today. Weak nesses identified 
                                                
36 An Action Plan to Improve SPS Capacity in Cambodia, 2010 . Viewed at: 
http://www.standardsfacility.org/sites/default/files/STDF_PG_246_FinalReport_Jul -10.pdf .  WT/TPR/S/364 • Cambodia  
 
- 60 - 
 
  included problems in the definition of responsibilities between the various agencies, overall 
fragmentation of responsibilities between, and even within, ministries as well as limited capacity to 
discharge those responsibilities; lack of systematic inspection or monitoring in all key areas of 
production and processing, with an impact on product quality and safety; an absence of systematic 
laboratory testing to support inspection, due to limited human and financial resources; and a 
certific ation system that is not backed by testing, and therefore not necessarily accepted in export 
markets.  
3.93.   Testing and diagnostic capacity in Cambodia continues to be rudimentary and inadequate to 
meet modern demands. Currently, there are six laboratories with  food testing capacity: 
Camcontrol (MoC), Industrial Laboratory Centre of Cambodia - ILCC (MIH), the MoH laboratory for 
drugs and food, MAFF, the MoE lab centre for biodiversity analysis, and the Institut Pasteur 
(independent). None of the food laboratorie s, except ILCC and Camcontrol, has adequate capacity 
for testing residues of pesticides, veterinary drugs and growth enhancers, heavy metals and other 
contaminants. Once installed and put into full operation, the new laboratory facilities in Prek Leap 
National College of Agriculture under MAFF will also contribute to further expanding the country's 
food safety testing and control capacity. MAFF/GDA in recent years has also made significant 
progress in upgrading its laboratory facilities. Currently it has a well-equipped laboratory for 
testing pesticide formulations and plant health laboratories with adequate capacity for diagnostics 
of plant pests and diseases, but does not have laboratory capacity for testing veterinary drugs and 
growth enhancers. Furthermo re, as part of efforts to modernize the country's SPS regime, the 
MAFF has established a specialized SPS laboratory in the Royal University of Agriculture (RUA), 
which is well -equipped with facilities to support various R&D activities and training programm es to 
expand the pool of skilled professionals in the field of plant protection and SPS administration. 
Under the ADB SPS trade facilitation programme: Improved Sanitary and Phytosanitary (SPS) 
handling in the Great Mekong Sub -region (GMS) trade project, t he National Animal Health and 
Protection Research Institute (NAHPRI) of GDAHP is equipped with an "Ultra performance Liquid 
Chromatography (UPLC)" machine which allows this institute to test for chemical residues 
(veterinary drugs, pesticides, growth promo ters and other contaminants) in food and feed stuff, 
and the quality of veterinary drugs and animal feed. NAHPRI also has capacity to test for some 
food-borne pathogens.  
3.94.   The number of tests of food and water conducted by Camcontrol, the main inspectorate f or 
food safety, has increased from 1,240 in 2008, to 1,950 in 2011. ILCC carried out about 
3,500  tests in 2012, whereas the numbers of food tests by other food laboratories are much lower. 
Although increasing, these numbers are still nearly insignificant f or a country of the size of 
Cambodia and given the range of equipment available.37  
3.95.   Because of their weakness, most laboratories have no international accreditation and 
opportunities for obtaining it seem remote. ILCC is the only food laboratory with ISO 17 025 
accreditation (for 11 test parameters). It is generating its volume of samples for testing and the 
major part of its funding through fees from regulatory powers.  
3.96.   Private -sector demand for conformity testing of product quality and safety within the 
country is small. As in many other countries, major exporters use accredited testing facilities in 
other countries. Cambodian exporters generally use testing facilities in Thailand, Viet Nam, or the 
country of destination of goods.38  
3.3.4   Competition policy and pri ce controls  
3.97.   At the time of the last review, the Government was in the process of drafting laws and 
regulations that establish the framework for its market economy, including those in the area of 
competition. The Ministry of Commerce had finalized the terms  of reference of a competition 
working group in May 2010 and had envisaged that a Competition Law would be in force by 2015. 
However, this was delayed. According to the authorities, the reason for the delay was competition 
experts being replaced from time to time as well as a substantial amount of comments and 
feedback from other line ministries and related stakeholders that had to be incorporated in the 
draft law. Consequently, drafting and consultation have taken longer than expected. To speed up 
                                                
37 Cambodia DTIS 2014 -18. 
38 Cambodia DTIS 2014 -18. WT/TPR/S/364 • Cambodia  
 
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  the proc ess, the competition department was established under the Directorate General of 
Camcontrol in June 2016.  
3.98.   Under ASEAN's Competition Law Implementation Program (CLIP), competition experts from 
the Australian Competition and Consumer Commission assisted the Ministry of Commerce in 
finalizing Cambodia's draft competition law. Currently, the Working Group on Drafting Competition 
Law, with the assistance from these competition experts, has reviewed and finalized the draft 
competition law, and it is expected that  the finalized draft law will be submitted to the Council of 
Ministers at the end of 2017 and to the National Assembly by 2018.  
3.99.   The draft law addresses unlawful anti -competitive activities, abuse of a dominant position 
and business combinations. Under the  draft law (Article 11), any person is prohibited from making 
and implementing horizontal agreements39 which directly or indirectly:  
 fix, control or maintain the prices of goods or services;  
 prevent, restrict or limit: the quantity of goods or services th at are made available for 
sale; the type of goods or services that are made available for sale; or the development 
of new goods or services;  
 allocate geographic territories between the competing persons;  
 allocate customers between the competing persons;  
 favour one bidder in bids on a contract;  
 boycott persons who are suppliers or distributors; or  
 otherwise significantly prevent, restrict or distort competition in a market.  
3.100.   Article 6 of the draft law prohibits entering into vertical agreements40 that wou ld require a 
purchaser to resell the purchased goods or services at a minimum price established by the seller. 
Furthermore, other vertical agreements that are prohibited are those that  have the object or effect 
of significantly preventing, restricting or d istorting competition in a market and include, inter alia : 
 requiring a purchaser to resell the purchased goods or services only within a defined 
geographic area;  
 requiring a purchaser to resell the purchased goods or services only to specified 
customers o r specified categories of customers;  
 requiring a purchaser to purchase all or nearly all of its requirements for a particular 
good or service exclusively from the seller;  
 preventing a seller from selling a good or service to another purchaser;  
 preventin g a purchaser of a good or service to improve or sell improvements to the 
goods or services purchased; and  
 requiring a purchaser to buy unrelated goods or services as part of each purchase 
contract.   
3.101.   Abuse of a dominant position is also addressed by the dr aft law (Article 13), while business 
combinations (mergers and acquisitions) and the need to notify and seek approval from the 
Commission prior to any merger or acquisition is dealt with in Article 15.  
                                                
39 A horizontal agreement is defined as an agreement between persons  who operate, or are likely to 
operate, at the same level in the production or distribution chain.   
40 A vertical agreement is defined as an agreement between persons who operate, or are likely to 
operate, at different levels of the production or distribut ion chain.  WT/TPR/S/364 • Cambodia  
 
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  3.102.   The draft law also provides for the establishment of a Competition Commission and a 
supporting directorate. It is envisaged that the commission would comprise 10 members including 
the Minister of Commerce (Chairperson), representatives from various Ministries, jurists, an 
economist and the Director General o f the Cambodian Competition Commission (directorate). The 
commission will be mandated to, inter alia : issue orders when the L aw has been violated and 
impose fi nes and other sanctions; i ssue regul ations that implement the Law; m onitor and 
supervise the  operation of the Directorate; r eport annually to the Prime Minister on the operations 
of the C ommission and the Directorate; p rovide adv ice at the request of the Government and 
Parliament on issues concern ing competition matters; a dvise on its own initiative, the Parliament, 
the Prime Minister and any public institution or authority on all matters concerning competition, 
including current or proposed legislation relating, but not limited to public procurement, licensing, 
taxes and levies imposed on persons; and  advise the Prime Minister on cooperation arrangements 
relating to competition matters arising under this Law within or outside Cambodia.  The Directorate 
will implement the Law; it will be part of the Ministry of Commerce, but will report to the 
Commission . The Directorate is responsible for investigating violations of the Law and as such 
would have compulsory information gathering powers and be provided search warrants to fulfil its 
obligations. Any person in violation of the law is subject to penalties an d sanctions that include 
monetary fines and remedies, while criminal sanctions are only applicable if the procedural rules 
stipulated in the law have been violated.  
Price Controls  
3.103.   As per Ministry of Commerce Prakas No. 152 on the establishment of a workin g group to 
observe the situation and the index of the price of essential goods for daily life issued on 
16 June 2017, the retail fuel price is subject to a price ceiling. The maximum price is based on the 
average Platts price of fuel in Singapore, all appl icable taxes and a premium (profit margin). The 
price is adjusted every ten days. Furthermore, the Prakas also established a working group to 
monitor the prices of essential commodities, which include rice, fish, chicken, pork, regular 
gasoline and diesel,  and cassava. Under the Prakas, this list can be expanded or adjusted based on 
changing needs and relevance.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.104.   Cambodia has not notified any state trading enterprises to the WTO as defined under 
Article XVII of the GATT.  
3.105.   Cambodia has one of the most open economies in Southeast Asia and the Government 
sees business as central to the country's future prosperity.41 As such, the Cambodian Government 
privatized and divested from the majority of SOEs in the l ead up to its WTO accession. Since 2007, 
the Government divested from a further 13 SOEs. Consequently state involvement in the economy 
is limited. SOEs account for less than 8% of employment and around 3% of the economic 
establishments in the country.42  
3.106.   Private and public enterprises compete under the same terms and conditions. Public 
enterprises are not entitled to special trading rights or privileges. However, certain laws and 
regulations reserve special rights for the State to monopolize various services , including the 
electricity law, which provides the special privileges for governing and preparation of framework 
for the electric power supply and services such as generation, transmission and distribution of 
power utility throughout the country. As such,  the Electricity Law provides for the issuance of a 
National Transmission Licence to the state power transmission company and Special Purpose 
Transmission Licences to others. By end of 2016, nine Special Purpose Transmission Licences had 
been issued.  
3.107.   Currently, Cambodia has four main state -owned enterprises: Electricité du Cambodge 
(Section  4.2.2.2), which is in charge of producing and distributing power nationwide; Phnom Penh 
Water Supply Authority, which is responsible for water treatment and supply; Rur al Development 
Bank (Section 4.4.3.1), which services and refinances loans to licensed financial institutions, 
                                                
41 ADB Country Partnership Strategy: Cambodia 2014 -2018. Viewed at: 
https://www.adb.org/sites/default/files/linked -documents/cps -cam-2014-2018-psa.p df.  
42 ADB Country Partnership Strategy: Cambodia 2014 -2018. Viewed at: 
https://www.adb.org/sites/default/files/linked -documents/cps -cam-2014-2018-psa.pdf .  WT/TPR/S/364 • Cambodia  
 
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  commercial banks, specialized banks, micro -finance institutions, associations, development 
communities, and small - and medium -sized enterprises t hat take part in rural development in 
Cambodia43; and Green Trade Company (Section 4.1.5.1), which manages Cambodia's national 
reserve of rice through purchases and sales made at market prices. Furthermore, in March 2015, 
the Cambodian Government, through t he Ministry of Mines and Energy, announced that the 
Government is exploring the possibility of establishing a national oil company to invest in the oil 
and gas sector.44  
3.3.6   Government procurement  
3.108.   Procurement by public sector entities is a vital aspect of Cam bodia's financial 
management, as expenditure by such entities consumes a considerable amount of budgetary 
allocations. In 2016, the size of the government procurement market was around US$611 million 
(3.03% of GDP), a slight decrease from US$629.6 million in 2015 (3.43% of GDP). In 2016, 
procurement of goods accounted for around 56% of the procurement budget, while expenditure on 
works was around 42% followed by 1.2% for services and almost negligible for consultancy 
services. Most of the procurement is don e by the line ministries, which are responsible for 63% of 
total procurement, while state governments and state -owned enterprises are responsible for 
around 28% and nearly 9% of procurement. Competitive bidding is the most commonly used 
method of procureme nt and it is classified into domestic competitive bidding and international 
competitive bidding; the shares of these in 2016 were 34.24% and 0.67%, respectively 
(Table  3.12).  
Table 3.12 Public procurement by method and amount, 2015 -16 
Method  2015  2016  
Number of 
contracts  Value  
(US$ mln)  Number of 
contracts  Value  
(US$ mln)  
International competitive bidding  45 215.96  26 197.76  
Domestic competitive bidding  1,615  195.85  1,320  182.86  
Restricted competiti ve bidding  0 0 0 0 
Competitive shopping  1,036  14.99  1,419  18.71  
Canvassing  363 1.3 815 2.3 
Alternative (direct contract)  283 201.47  275 209.66  
Total  3,342  629.57  3,855  611.29  
Source:  Ministry of Economy and Finance.  
3.109.   The Law on Public Procurement No. NS/RKM/0112/004, which was enacted in early 2012, 
governs public procurement in Cambodia. In addition, the current regulatory framework governing 
public procurement consists of a number of sub -decrees.45 The provisions of the Law will prevail if 
there i s conflict with other provisions under the sub -decrees. Prior to the enactment of the 2012 
Law, government procurement in Cambodia was governed by Sub -decree No. 105 (2006) and 
updated implementation rules for public procurement as provided under Prakas 38 1 (2010) were 
enforced.  
3.110.   The 2012 Law on Public Procurement aims to ensure that the government procurement 
process for goods, civil works, repairs, engaging of services, and engaging of consultancy services 
is transparent, fair, effective, and accountable a nd is also cost effective with respect to quality. 
The Law also strives for a uniform public procurement system across Cambodia.  
                                                
43 According to the authorities, under Sub -decree No. 199 AN.KrBK dated 11 June 2014, the Rural 
Development Bank is an autonomous public enterprise offering banking services and providing credits to SMEs.  
44 United States Department of State, Cambodia Inves tment Climate Statement 2015 . 
45 Sub-decree No. 105/ANK/BK on Public Procurement was promulgated in 2006. The Implementing 
Rules and Regulations for Public Procurement (IRRPP), which were first issued in 1995, have been updated 
through Prakas No. 381 MEF/BK  of 2010. These IRRPP apply to expenditures from the general budget and 
special treasury account. Sub -decree No. 14/ANK/BK on the Procurement Manual for Externally Financed 
Projects/Programmes in Cambodia of 2007 governs public procurement financed by the Asian Development 
Bank and World Bank. Sub -decree No. 74/ANK/BK of 2012 governs all externally funded projects and 
programmes where the development partners have agreed to its use.  WT/TPR/S/364 • Cambodia  
 
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  3.111.   The Law specifies the rules, methods, procedures and structure for managing and 
implementing all public procurement transaction s in Cambodia regardless of the source of the 
funds, except for procurement transactions under projects financed by development partners. In 
such cases, procurement will be in accordance with the guiding principles and procedures as 
provided for in the fin ancing agreement. If the agreement does not determine any guiding 
principles and procedures, the process of such procurement shall be implemented in accordance 
with the provisions of the Law. In addition, any procurement affecting national defence and publ ic 
security requires an approval/decision from the Prime Minister. The Law also does not apply to the 
granting of concessions by the Government, which comply with separate laws and regulations.  
3.112.   Under the provisions of the Law, the General Department of Pub lic Procurement in the 
Ministry of Economy and Finance (MEF) is the competent authority governing public procurement 
in Cambodia. The Law allows for various procurement methods depending on the type and 
magnitude of the procurement (Table 3.13). The prefer red method is competitive bidding. 
International competitive bidding is used for high value and highly technical procurement, while 
domestic competitive bidding is used in cases where there are sufficient domestic products, or 
production or construction ca pabilities. Restricted competitive bidding  is used for selecting 
suppliers, contractors, or service providers for turn -key project procurement targets of a complex 
technical nature where technical specifications cannot be set in advance and where few bidde rs are 
qualified. This method requires pre -qualification. Competitive shopping is used for selecting 
suppliers, contractors, or service providers when existing procurement targets are readily available 
in the local market and are of medium value. Canvassin g is used when procurement targets are 
readily available in the local market and are of low value. Under the Law, there are no preferences 
for domestic bidders.  
Table 3.13 Public procurement financial thresho lds 
(US$)  
 Goods  Works  Services  
International competitive bidding  ≥1,250,000  ≥1,500,000  ≥1,000,000  
Domestic competitive bidding  ≥25,000 and 
<1,250,000  ≥25,000 and 
<1,500,000  ≥25,000 and 
<1,000,000  
Restricted competitive bidding  No threshold  No threshold  No threshold  
Competitive shopping  ≥5,000 and 
<25,000  ≥5,000 and 
<25,000  ≥5,000 and 
<25,000  
Canvassing  <5000  <5000  <5000  
Alternative (direct contract)  No threshold  No threshold  No threshold  
Source:  Ministry of Economy and Financ e. 
3.113.   Non-competitive bidding can be used with prior approval from MEF. Under this method, 
direct contracting, which implies that price and technical specifications are negotiated directly with 
the suppliers, contractors, or service providers, can be used. Ho wever, it is used in special 
circumstances such as when: the procurement target is single sourced; the procurement target 
has been competitively and publicly tendered once and is urgently needed with no sufficient time 
for competitive and public tender for  the second time; competitive and public tender for the 
second time is not successful; there is urgent need at times of natural disasters or other 
emergencies; and for research, experimentation, or development. Non -competitive bidding is also 
permissible i n the case of repeat orders.46 
3.114.   With regards to consultancy services, the permissible methods of procurement are the 
following. Quality -based selection is used for selecting consulting firms when the procuring entity 
requires relevant multi -disciplinary expe rt services at the same time and focuses primarily on the 
technical levels of those services. Quality - and cost -based selection is used for selecting consulting 
firms when the procuring entity takes into consideration the quality and the cost in conformity  with 
                                                
46 To use non -competitive bidding for a repeat order: the procurement target  must be the same as that 
in the initial contract obtained through bidding; the duration must be less than 6 months after the initial 
contracts become effective  and must be within the same budget year; the unit price must be equal or less than 
that of the initial contract; and the total contract price must be less than 25% of the initial contract.  WT/TPR/S/364 • Cambodia  
 
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  the level of technical complexity of the required services. Budget -based selection is used for 
selecting consulting firms when the procuring entity has a fixed budget with clear objectives. The 
procuring entity is required to specify the budgeted amo unt thus requiring consulting firms to 
submit their technical proposals in conformity with the budget. The method of least -cost-based -
selection is used for selecting consulting firms when the procuring entity requires well defined and 
standard consulting s ervices. Lastly, direct negotiation -based selection is used for selecting 
consulting firms under special circumstances.47 Additionally, when selecting an individual 
consultant, qualifications -based selection is applied. Under this method, selection is to be  based on 
the knowledge, level  of professional expertise, experience and other relevant skills of the individual 
consultant. Furthermore, tenders for consultancy firms need to be publicly advertised, so that 
expressions of interest from both domestic and i nternational consulting firms can be submitted.  
3.115.   The Law stipulates that all procuring entities will have a procurement committee, which will 
be responsible for reviewing procurement plans and bidding documents, assessing and awarding 
contracts, supervising  contract implementation, and addressing procurement complaints based on 
their competencies. In addition, all procuring entities will also be required to have a procurement 
unit, which will be required to have a clear structure and will be staffed with off icers with adequate 
public procurement qualifications, and who are given appropriate authority to undertake all public 
procurement activities. The head of the procuring entity will be the chair of the procurement 
committee. The secretary of the procurement  committee will be the head of the procurement unit. 
Furthermore, under the Law, all procuring entities are required to develop an annual procurement 
plan; the plan can be adjusted according to necessity. The plan must be approved by the MEF.  
3.116.   The procurem ent units of the procuring government departments are required to publish a 
tender in the press.48 The tender notification must contain: a description of the type and quantity 
of goods, works, or services to be procured; the name, address, e -mail, telephone  and fax 
numbers of the procurement unit concerned; the method of procurement to be used; requirements 
of any qualifications or pre -qualifications; date of selling, receiving and opening of bids or 
pre-qualification documents; and specification of the requ irement for bidding security and 
performing security.  
3.117.   Notification of prequalification, bidding and amendments must be published on the public 
procurement website, in newspapers, and also posted on the bulletin boards of the procuring 
entities. Furthermor e, bidding documents must also be displayed on the public procurement 
website. All bids must be sent to the concerned procurement unit. Bids are opened in public 
immediately after the bidding deadline. The important details of each bid are required to be 
announced in front of the participants that attend the bid opening. If less than three initial bids are 
received, the procurement committee shall return the unopened bids back to the bidders, and 
initiate a re -bidding process. In the re -bidding process, no matter how many bids are received, 
they must be opened on the specified date.  
3.118.   The concerned procurement committee shall review and evaluate all bids confidentially. 
After finalizing an evaluation to select appropriate bidders, the procuring entity shall is sue a 
notification on the decision to award the contract to the successful bidder, which will also be 
provided to all the failed bidders. If no complaint is received within 10 working days of the 
issuance of the notification of the contract award, the proc urement unit shall ask the successful 
bidder to provide the document of contract performance security and to develop a procurement 
contract as specified under the Law. Furthermore, the Law allows for all public procurements to be 
audited and inspected by t he MEF and relevant competent institutions.  
3.119.   Procuring entities have the authority to examine and address the complaints of bidders at 
each stage of procurement. A complainant who disagrees with a decision of a procuring entity can 
lodge his/her complaint with the MEF. If the complainant is not satisfied with the MEF's decision, 
he/she has recourse to the judicial courts.  
                                                
47 Special circumstances can include: the continuation of previous work carried out by the consulting 
firm or the individual consultant, in emergencies where an im mediate response is required, or when only one 
firm or individual has the requisite qualification or experience.  
48 Depending on the type and magnitude of the procurement, the tender must be published in both the 
domestic and international press.  WT/TPR/S/364 • Cambodia  
 
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  3.120.   The Law prohibits corrupt practices49, fraudulent practices50, collusive practices51, coercive 
practices52 and obstructive practices.53 Public servants at all levels, bidders, suppliers, contractors, 
and other concerned staff found to have been involved in any of the above practices in the process 
of procurement are liable to be convicted in accordance with the criminal code and the effective 
regulations of Cambodia. Penalties include blacklisting, imprisonment ranging from 6  months to 
3 years, and fines ranging from 1 million riel to 100  million riel. Furthermore, provisions of the 
Anti-Corruption Law also apply to offenders.  
3.3.7   Intellectual prop erty rights  
3.121.   Cambodia attaches great importance to IPR protection so as to attract foreign investment 
and foster domestic growth. In this regard, the Government has drafted a National IP Strategy 
focused on six sectors (agriculture, culture, education and training, health, industry and 
commerce, and tourism). The strategy has four main objectives which are: to improve the 
capability and capacity within the Cambodian economy to provide and use intellectual property 
services to support Cambodia's economic dev elopment; to improve the capability and capacity 
within the Cambodian Government to deliver intellectual property policy, services and enforcement 
to support Cambodia's agricultural, commercial, industrial and cultural sectors and the tourism 
industry; to improve awareness and understanding within the broader population of the economic 
role of intellectual property to support the increasing use of the intellectual property system by 
Cambodian businesses; and to develop and maintain Cambodia's intellectual p roperty legislation in 
line with international standards to meet Cambodia's economic and social needs.  
3.122.   Under the current legislation, Cambodia grants national and MFN treatment to all foreign 
nationals under existing Cambodian intellectual property legisl ation, and all draft legislation 
integrates the same principles. Current legislation does not permit parallel imports. Cambodia has 
been a member of the World Intellectual Property Organization (WIPO) since 1995 and the Paris 
Convention for the Protection of Industrial Property since 1998. Cambodia acceded to the Protocol 
Relating to the Madrid Agreement Concerning the International Registration of Marks in 2015. It 
became a member of the Patent Cooperation Treaty and the Hague Agreement concerning the 
International Registration of Industrial Designs in 2016. Cambodia has been a party to the ASEAN 
Framework Agreement on Intellectual Property Co -operation since 1999, and has also concluded 
bilateral agreements on intellectual property protection and cooperati on with the United States, 
China, Thailand, Japan, the Republic of Korea, Lao People's Democratic Republic, the European 
Patent Office, and Singapore.54 
3.123.   At the time of the last review, the Cambodian authorities stated that the application for 
membership of other treaties and conventions (e.g. WIPO Copyright Treaty (WCT) and the WIPO 
Performances and Phonograms Treaty (WPPT), Berne Convention for the Protection of Literary and 
Artistic Works related to Copyrights and Related Rights, Patent Cooperation Treaty,  International 
Convention for the Protection of New Varieties of Plants (UPOV), and Geneva Phonogram 
Convention and the Brussels Satellite Convention) was dependent on the availability and timing of 
technical assistance. In this regard, Cambodia has been r eceiving technical assistance from WIPO 
under various MoUs it has signed. The assistance involves training of IP personnel and the 
establishment of an IPR training centre. Technical assistance has also resulted in the Intellectual 
Property Automation Syste m (IPAS), which will allow for the electronic filing and examination of 
                                                
49 Corrupt practices mean the offering, giving, receiving, or soliciting directly or indirectly of anything of 
value to influence improperly the actions of another party.  
50 Fraudulent practices are defined as any act or omission including a misrepresentation that kno wingly 
or recklessly misleads, or attempts to mislead, a party to obtain financial or other benefit or to avoid an 
obligation.  
51 A collusive practice is an arrangement between two or more parties, designed to achieve an improper 
purpose, including influenc ing improperly the actions of another party.  
52 Coercive practices are defined as impairing or harming, or threatening to impair or harm, directly or 
indirectly, any party, or the property of the party to influence improperly the actions of a party.  
53 Obstr uctive practices mean: deliberately destroying, falsifying, altering, or concealing evidence 
material from the investigation or making false statements to investigators in order to materially impede an 
investigation into allegations of a corrupt, fraudulen t, coercive, or collusive practice; and/or threatening, 
harassing, or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the 
investigation or from pursuing the investigation; or acts intended to materially impede the exercise of the 
inspection and audit rights provided for under the Law.  
54 The MoUs with China, Japan, South Korea and Lao PDR relate to IP cooperation, and not intellectual 
property protection.  WT/TPR/S/364 • Cambodia  
 
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  trademark applications and will also cater to e -payments. It is also envisaged that IPAS will 
automate the IPR database. According to the authorities, Cambodia is considering the possi bility of 
acceding to the Singapore Treaty on the Law of Trademarks (STLT) and the Geneva Act of the 
Lisbon Agreement. Additionally, Cambodia launched WIPO online software/services and a mark 
filling system on 25 May 2017.  
3.124.   Other than the enactment of the L aw on Geographical Indications in 2014, there has been 
no substantial change to the IPR regime in Cambodia during the review period. Furthermore, in 
2015, the WTO TRIPS Council extended the date for least developed countries to comply with the 
TRIPS Agreem ent to 1 January 2033, with the exception of the provisions in Articles 3, 4, and 5 of 
the Agreement.55 This postponement replaces the 2002 and 2005 WTO decisions whereby LDCs 
enjoyed a transitional period to comply with all TRIPS provisions expiring in Jul y of 2013 or in 
2016 for pharmaceutical products. Cambodia accepted the changes to the WTO TRIPS Agreement 
on patents and public health in 2011.56 
3.125.   Under the current scenario, intellectual property rights protection in Cambodia is 
distributed across several Ministries. The Ministry of Commerce (MoC) is responsible for 
trademarks, geographical indications, and trade secrets; The Ministry of Industry and Handicrafts 
(MIH) for patents, industrial designs, utility models, integrated circuits, as well as plant bre eder 
rights; the Ministry of Culture and Fine Arts (MoCFA) for copyright and related rights; the Ministry 
of Information for broadcasting; and the Ministry of Posts and Telecommunications (MoPT) for 
internet domain names. There are currently three main IP Offices: the Department of IPRs (within 
the MoC), the Department of Industrial Property (within MIH) and the Department of Copyright 
and Related Rights (within the MoCFA). In addition, in 2008, the Council of Ministers created the 
National Committee for In tellectual Property Management in 2008; the committee is housed within 
the Ministry of Commerce.57 The committee is responsible for developing national policy on 
intellectual property, strengthening inter -agency cooperation, preparing and disseminating new 
laws and regulations, and acting as a clearinghouse for technical assistance relating to the 
intellectual property sector. The committee is chaired by the Minister of Commerce and comprises 
a broad range of IPR stakeholders such as representatives from the  Council of Ministers, and the 
Ministries of Industry, Mines and Energy; Culture and Fine Arts; Interior; Economy and Finance; 
Posts and Telecommunications; Health; Agriculture, Forestry and Fisheries; Environment; Justice; 
Education; Tourism; and Informat ion. 
Patents, utility models, and industrial designs  
3.126.   Patents, utility models, and industrial designs  are protected under the Law on Patents, 
Utility Model Certificates, and Industrial Designs of 2003. The law provides for the filing, 
registration, and prot ection of patents, utility model certificates, and industrial designs. In 
addition, the MIH issued a declaration in June  2006 on granting patents and registering industrial 
designs. Under the provisions of the Law, in order to receive a patent or utility m odel, the 
invention must be a new inventive step and industrially applicable. Under the Law, certain types of 
inventions, such as scientific theories and mathematical formulae are excluded. In order to receive 
a patent or utility model, the inventor is req uired to make the invention public. The reason for this 
is to increase the body of public knowledge, as well as to ensure public availability after the 
expiration of the protection period. Patents are valid for 20 years from the date of filing, and utility  
models for 7  years. Owners are required to pay an annual maintenance fee, which increases over 
time, to keep the registration valid. Patent applications are filed with the Department of Industrial 
Property of the MIH.  
3.127.   Cambodia became a member of the Paten t Cooperation Treaty (PCT) in 2016. The PCT 
provides a unified procedure for filing patent applications  to protect inventions  in each of its 
contracting States. A patent application filed under the PCT is called an international application, or 
PCT application. A single filing of a PCT application is made with a Receiving Office (RO) in 
one language.  It then results in a search  performed by an International Searching Authority (ISA), 
accompanied by a written opinion regarding the patentability  of the invention, which is the subject 
of the application. It is optionally followed by a preliminary examination, performed by an 
                                                
55 Articles 3, 4 and 5 deal with national treatment and MFN.  
56 According to the authorities, the draft law on compulsory licensing was submitted to the Council of 
Ministers in 2016.  
57 Sub-decree No. 142 of the Council of Ministers, 18 September 2008.  WT/TPR/S/364 • Cambodia  
 
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  International Preliminary Examining Authority (IPEA). Finally, the relevant national  or regional 
authorities administer matters related to the examination of the application (if provided by national 
law) and the issuance of a patent. A PCT application does not itself result in the grant of a patent. 
The grant of a patent is the prerogativ e of each national or regional authority. This implies that a 
PCT application, which establishes a filing date in all contracting states, must be followed up with 
the step of entering into national or regional phases to proceed towards the grant of one or more 
patents. The PCT procedure essentially leads to a standard national or regional patent application, 
which may be granted or rejected according to the applicable law in each jurisdiction in which a 
patent is desired. The Law on Patents, Utility Model C ertificates and Industrial Designs of 2003 
provides a procedure for registering foreign applications in Cambodia. However, patent rights can 
be subject to revocation and abridgement by the Government. The Ministry has the right to exploit 
a patented invent ion itself, or allow a third party to do so to promote the public interest (e.g. 
national defence, nutrition, health, and development).  
3.128.   With regard to compulsory licensing, under the current Law, the patent owner has the 
right to exclude others from makin g, importing, selling, stocking, offering for sale, and using 
infringing products. Compulsory licensing can be applied after three years of non -use of a patent, 
or if a patented product has not been offered for sale in sufficient quantity to supply the 
Cambodian market without valid reasons. The licence would be mainly for the supply of the 
domestic market. Furthermore, both licensees and the patent owner have the right to bring a civil 
suit seeking monetary damages and injunctive relief. However, the law d oes not provide a 
procedure for suspension of customs clearance for infringing goods. Furthermore, the authorities 
have drafted a new law regarding compulsory licensing for public health, which is currently under 
deliberation of the Council of Ministers.  
3.129.   Utility models and industrial designs are also registered with the Department of Industrial 
Property, and the registration procedures are very similar to those required for patent registration. 
Industrial design registration is granted for an initial term of five years from the filing date, and 
can be renewed for two further consecutive five -year terms, for a total of fifteen years.  
3.130.   Since 2012, the Department of Industrial Property has received 326 patent applications, 
44 applications for registration of ut ility models and 392 applications for the registration of 
industrial designs.  
Trademarks, trade names, and acts of unfair competition  
3.131.   The 2002 Law on Marks, Trade Names and Acts of Unfair Competition protects trademarks 
and related IPRs. The Law describes  the procedure for registering a trademark and the scope of 
protection. The Law stipulates specific penalties for trademark violations, including jail sentences 
and fines for counterfeiting registered marks. In addition to the procedure for registering 
trademarks, the Law also addresses invalidation and removal, licensing of marks, and infringement 
and remedies. The Sub -Decree and Implementing Regulations to the Trademarks Law were 
adopted in 2006. The Ministry of Commerce has operated a trademark registrat ion system since 
1991. Since 2012, the Ministry of Commerce has received 33,038 applications for trademark 
registration and registered 25,351 marks.   
3.132.   Applications for registration of a mark must be submitted to the Department of Intellectual 
Property Righ ts at the MoC or online.58 Under the provisions of the Law, actual use of a mark is not 
a condition for filing an application. Priority is given to the person who first filed a valid application 
or claimed the earliest priority to the mark. The Law also sta tes that an applicant who has already 
registered a mark in another member country of the Paris Convention will have priority in 
registering the mark in Cambodia. Protection is accorded for an initial period of ten years and is 
renewable indefinitely for su ccessive periods of ten years. Failure to use a registered mark for 
more than five years without a valid reason can lead to protection being withdrawn. A trademark 
owner has the right to prevent others from infringing their mark, and performing acts that m ake 
infringement likely. The Law allows the registered owner of the mark to: sue in civil court for 
money damages and/or specific relief; request the customs authorities to suspend clearance of 
imported infringing goods; or seek criminal prosecution and/or  fines.  
                                                
58 Applications for registration of a mark can be filed through: www.efiling.cambodiaip.gov.kh .  WT/TPR/S/364 • Cambodia  
 
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  Geographical Indications  
3.133.   In 2014, the Law on Geographical Indications (GI Law) was adopted. The Law provides the 
framework for registration of a GI as well as the scope of protection. The Law is administered by 
the MoC. The Law allows GIs related t o agricultural goods; foodstuffs; handicrafts; and other 
goods that are produced or transformed in Cambodia in compliance with the provisions of the GI 
Law to be registered and protected. However, the GI Law lists four main types of GI that are not 
allowed  to be protected and registered in Cambodia: an indication that does not comply with the 
GI Law, the value of morality, good tradition and religion or the public order; an indication that 
confuses the public as to the quality, specification or geographical  origin of the goods or the 
manufacturing process; an indication that has become a generic term; and an indication that is 
used as the name of a plant variety or animal breed.  
3.134.   To register a GI, an application must be filed with the Department of Intellectu al Property 
at the MoC. The applicant is required to submit a book of specifications, specifying the 
geographical area of the goods in question, production conditions and the qualification process for 
the particular goods for which GI protection is sought.  According to the GI Law, both domestic and 
foreign GIs can be registered. When a GI is registered at the Department of Intellectual Property, 
producers and/or operators whose practices comply with the book of specifications will be provided 
the absolute r ights to use the GI.59 
3.135.   Once registered, a GI is protected indefinitely from the filing date (subject to any request 
for cancellation). Any interested person can make a request of revocation or cancellation of a GI to 
the MoC. A GI can be cancelled due to: t he registered GI's rightful owner making a cancellation 
request; the good bearing the registered GI losing its special qualification (i.e. becomes generic); 
the GI's owner not complying with the condition stated in the application; the GI's rightful owner 
not complying with the law or any regulation governing GIs; and the applicant failing to provide 
additional documents or information to the Department of Intellectual Property in response to the 
opposition procedure stated in Article 17 of the GI Law. Furt hermore, all provisions relating to 
border measures stipulated in the Law on Marks, Trade names and Acts of Unfair Competition are 
applicable to GIs as well. As such, GI rights holders may prevent importation or exportation of 
infringing goods.  
Plant varie ty protection  
3.136.   New plant varieties are governed under the Law on Seed Management and Plant Breeders' 
Rights (Plant Variety Law) of 2008. A new plant variety may be protected upon registration with 
the Department of Industrial Property of the MIH if it meets  the following criteria: the variety is 
new, distinct, uniform, and stable; the applicant files an application with the MIH for registration of 
the new seed, which will be technically evaluated by the Ministry of Agriculture, Forestry, and 
Fisheries (MAFF) ; and the applicant is a Cambodian resident or a citizen of a member State of the 
International Union for the Protection of New Varieties of Plants (UPOV) or any State that has the 
principle of reciprocity with Cambodia on such registration. Protection is accorded for 20 years, 
while for liana and trees it is 25 years. The Law requires the holder of the plant variety to 
authorize production or multiplication; conditioning for the purpose of propagation; offering for 
sale; selling or other marketing; exporti ng; importing; and stocking for the any of the above 
purposes.  
3.137.   Plant variety rights are applicable to private non -commercial use; experimentation; or for 
the purpose of developing new varieties. However, if a variety is regularly used to produce 
propagatin g material of another variety, the authorization of the holder of the plant variety right is 
required. The management and commercialization of plant varieties is under the MAFF.  
Industrial designs and layout designs of integrated circuits  
3.138.   The Registration of a Layout Design of Integrated Circuits is governed by a Prakas issued 
on 16 March 2011. A layout design of an integrated circuit can only be registered if it is original. A 
layout design of an integrated circuit can only be registered if it has not been  commercially 
exploited anywhere in the world in the past two years. Furthermore, it is unlawful without the 
                                                
59 Products registered as GIs in Cambodia include Kampot Pepper and Palm Sugar from Kampong Speu 
Province. Furthermore, GI for Koh Trung pomelo is under consideration for possi ble future registration.  WT/TPR/S/364 • Cambodia  
 
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  authorization of the rights holder to: reproduce, whether by incorporation in an integrated circuit 
or otherwise, the protected layout design in it s entirety or any part thereof, save for the act of 
reproducing any part that does not comply with the requirement of originality; and import, sell or 
otherwise distribute for commercial purposes, the protected integrated circuit layout design or an 
article incorporating such an integrated circuit by any persons other than the rights holder.  
3.139.   An application for registration must be submitted to the Department of Industrial Property 
of the MIH. Protection is granted for a period of 10 years. Registration can be cancelled if: the 
layout design of the integrated circuit is not protected under the Prakas; the rights holder is not 
entitled to protection; or, where a layout design of an integrated circuit has been commercially 
exploited anywhere in the world prior to the filing of the application for registration and the 
application thereof was not filed properly within the time limit as prescribed in the Prakas.  
Copyrights and related rights  
3.140.   The Law on Copyright and Related Rights (Copyright Law) was promulgated i n 2003. The 
Law aims to help secure the rights of authors with respect to works and to protect the works of 
authors, performers, phonogram producers and broadcasting organizations to ensure a just and 
legitimate exploitation of such cultural products. Work s protected under the Copyright Law include: 
works of authors who are Cambodian nationals or residents; works first published in Cambodia, 
(including those works that were first published abroad, but were subsequently published in 
Cambodia within 30 days o f the first publication); audiovisual works, the producer of which is 
headquartered in, or is a resident of Cambodia; works of architecture erected in Cambodia, and 
other artistic works incorporated in a building or other structure located in Cambodia; and  works to 
which Cambodia is obliged to grant protection under international treaties.  
3.141.   The law stipulates that the author of a work shall enjoy an exclusive incorporeal property 
right in that work, which shall be enforceable against all persons. This right includes moral rights 
and economic rights. The moral right of the author is perpetual, cannot be forfeited, cannot be 
seized to meet an obligation, and may not be subject to prescription. However, an author of a 
copyright work may waive their moral rights and they may be transferred upon death to the heirs 
of the author.60 The protection of economic rights in a work commences from the date of creation 
and ends 50 years following the author's death.61 The law also addresses limitations on the 
owner's rights, u nder which importation or reproduction in a single copy for personal use, use for 
the purpose of education that is not for financial gain, and analysis, short quotations, and citations 
are permitted.  
3.142.   Although works are automatically protected, the owners o f copyrights may deposit their 
works at the MoCFA. Upon payment of a registration fee, the MoCFA will issue a certificate of 
registration for the registered work. However, registration of a work protected by copyright is 
voluntary and is not required for e nforcement of the right against infringement by a third party. As 
of May 2017, 339 copyright works have been registered.  
3.143.   With regard to related rights, the Copyright Law protects the rights of performers, 
phonogram producers, video producers and broadcast ing organizations, covering the recording, 
reproduction, sale, rental and communication to the public of performances, phonograms, videos 
and broadcasts. The Law stipulates that use of a phonogram recording for broadcasting or public 
performance entitles t he performer and the producer to a single payment from the user. The 
duration of protection for the performer is 50 years starting from the end of the calendar year in 
which the performance was recorded in the phonogram or in the absence of such recording,  from 
the end of the year in which the performance took place.  
3.144.   Persons suffering a violation of their copyright or related rights have the right to file a 
petition to the court to prohibit or stop the violation. The defendant may be ordered to pay 
compensa tion of damages, to redress moral injury, or to return the disputed equipment or 
                                                
60 The moral rights of the author are the exclusive right to decide the manner and timing of the 
disclosure of the work; and the right to oppose all forms of distortion or modification of the content of the 
work, which would be prej udicial to the author's honour or reputation.  
61 Economic rights cover translation or adaptation; rental, sale, and distribution to the public of the 
original or a copy; importation into Cambodia of reproductions; and public performance, public display, 
broadcasting or other communication to the public. WT/TPR/S/364 • Cambodia  
 
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  material, as well as to return any benefits deriving from the violation. All reproduction, 
performance, or diffusion of a work in violation of the author's copyright is an off ence punishable 
by six to twelve months' imprisonment and a fine of 5 million riel to 25 million riel. Unauthorized 
use of related rights also carries the same penalties.  
3.145.   Furthermore, any treaties in respect of copyright and related rights to which Cambodi a is a 
party apply to matters dealt with by the Copyright Law. In case of conﬂict with the provisions of 
the Copyright Law, the provisions of such international treaties prevail (Article 67).  
3.146.   The Law also allows authors and related rights holders to establi sh a collective 
management organization (CMO) to protect and manage their economic rights. However, the 
creation of the CMO requires authorization from either the Ministry of Culture and Fine Arts or the 
Ministry of Information, depending on the nature of the work. Proclamation No. 112 PK of the 
Ministry of Culture and Fine Arts regarding the establishment of a CMO came into force in 
July 2016.  
Other draft legislation  
3.147.   At the time of the last review, the Encrypted Satellite Signal Protection Law was about to  
be promulgated, and the draft law on protection of undisclosed information and trade secrets had 
been completed and implementing regulations were being drawn up. These are still not in force. 
According to the authorities, the draft law on protection of un disclosed information and trade 
secrets is under review at the National Committee of Intellectual Property Rights (NCIPR), while 
the sub -decree relating to the control and allocation of the frequency spectrum is expected to be 
adopted by the end of this ye ar. 
Enforcement  
3.148.   According to the authorities, Cambodia's laws on intellectual property are fully compliant 
with the provisions of Article 41 of the TRIPS Agreement concerning the availability of enforcement 
procedures under domestic legislation, the existe nce of fair and equitable procedures, and the 
opportunity for parties to proceedings to obtain a review of final administrative decisions and initial 
judicial decisions by a judicial authority. Provisions on civil judicial procedures and remedies are 
included in the Civil Code, Civil Procedure Code, and specific intellectual property laws. The 
necessary border measures are incorporated in the Law on Marks, Trade Names and Acts of Unfair 
Competition, the Law on Geographical Indications and the Law on Copyrig hts and Related Rights. 
Furthermore, at the time of the last review, the Council of Ministers had approved the 
establishment of a commercial court to deal with commercial and IP cases. The authorities stated 
that they are in the process of drafting an IP e nforcement manual and procedure, which are 
expected to be adopted within two years.  
3.149.   Cambodia's legislation provides for seizure, forfeiture, and destruction of infringing goods, 
evidence, copies, and equipment used in creating the infringing goods, and pr ohibits the 
re-exportation of counterfeit trademark goods or use of different customs procedures. Under the 
regulations, customs authorities are allowed to inform right holders about the possible importation 
or exportation of infringing goods.  
3.150.   Agencies inv olved in the enforcement of IPRs include: Anti -Economic Crime Police, 
Customs, the Cambodia Import -Export Inspection and Fraud Repression Directorate General 
(Camcontrol) of the Ministry of Commerce and the Ministry of Culture and Fine Arts (MoCFA). 
Howeve r, the division of responsibility among each agency is not clearly defined. Customs is 
responsible for the enforcement of intellectual property protection at the border to prevent the 
import/export/transit of counterfeit goods and pirated copyright goods. Customs protection of IP 
rights is normally initiated by an application by the right holder or by ex officio  action. The MoCFA 
is responsible for the protection of copyright works. It may engage in ex officio  actions through 
random checks of retailers; it will seize counterfeit copyrighted works only when the right holder 
has recorded his/her copyright with the Ministry. The Economic Police is concerned mainly with the 
infringement of intellectual property in domestic markets. Camcontrol is responsible for 
enforcement of intellectual property rights both at the border and in the domestic markets. It is 
entitled to inspect and detain infringing goods under the Consumer Protection Act and relevant IP 
provisions.  WT/TPR/S/364 • Cambodia  
 
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  3.151.   During the period under review, the Anti -Economi c Crime Police cracked down on 
108 cases of IPR infringement, while customs took action in 7 cases, Camcontrol 10 cases, the 
Ministry of Justice 34  cases, and MoCFA 8 cases.  
3.152.   Despite improvement in enforcement and the increase in seizures and prosecutions, IPR 
infringement continues to be widespread, ranging from software, compact discs, and music, to 
photocopied books and the sale of counterfeit products, including cigarettes, alcohol, and 
pharmaceuticals. Although Cambodia is not a major centre for the pro duction and export of pirated 
compact discs, digital video discs (DVD), or other copyrighted materials, local businesses report 
Cambodia is growing as a source of pirated material due to weak enforcement.62 An estimate by 
the Business Software Alliance conc luded that software piracy in Cambodia was at 95%.63 In 
response, an inter -ministerial committee was established to combat piracy of compact discs and 
DVDs in the domestic market. The committee has been effective in that a large number of 
counterfeit compac t discs and DVDs were seized and destroyed. Additionally, large quantities of 
counterfeit cosmetics, soap and alcohol were also seized and destroyed.  
3.153.   Cambodia was not listed in the U.S. Trade Representative's Special 301 Report or 
Notorious Markets Report . 
 
 
                                                
62 U.S. Department of State, Investment Climate Statement 2016 . 
63 U.S. Department of State, Investment Climate Statement 2010 . WT/TPR/S/364 • Cambodia  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1.  During the review period, several trade -related policy developments affected several 
activities, with government intervention largely focused on border measures rather than domestic 
support, which remains limited. Agriculture continues to be centred on paddy rice production, 
whereas manufacturing is driven by the garments industry where tariff escalation persists. Tariff 
protection for agriculture increased slightly and remains higher than the overall applied MFN 
average and th e average for manufacturing. Export taxes continue to affect numerous goods to, 
inter alia , ensure domestic processing. Mining remains at an early stage of development but 
regulatory changes relating to exploration and industrial mining licences and domest ic processing 
of minerals were introduced. Cambodia's energy structure remains simple and is now less 
dependent on energy imports; a ceiling on the retail sale price of fuel and a staged reduction of 
electricity tariffs has been applied while retaining a t ariff cross -subsidization element. The services 
sector remains a significant support to economic growth; now Cambodia's five RTAs involve GATS 
plus commitments on trade in services. Regulatory improvements in banking, inter alia, involved 
the strengthening  of the capital base, the provision of credit and micro -finance as well as the 
introduction of pre -emptive regulatory measures against potential default risk. A new 
telecommunications policy,  inter alia , supports infrastructure connectivity and new legisla tion on 
numerous telecommunications areas was passed but a large part of it remains to be enforced. The 
transport industry continues to face challenges despite improvements including the expansion of 
air transport to support rising levels of tourism, the l argest single activity, and participation in 
more air services agreements.  
4.1  Agriculture  
4.1.1   Features  
4.2.  Agriculture continues to play an important, albeit declining, role in supporting economic 
growth, ensuring equity, maintaining food security, and developing th e rural economy including 
addressing poverty.1 Its contribution (including forestry and fishing) to gross value added dropped 
progressively from 34.6% (2011) to 25.7% (2016) due, inter alia,  to declining growth rates 
triggered by a decline in commodities p rices, an inadequate irrigation system and heavy reliance 
on rainfall (Table 1.2). Similarly, according to government data, agriculture's share in total 
employment dropped from 55.8% in 2011 to 41.5% in 2015 due to labour migration to other 
activities (e.g . manufacturing and services).2 Cambodia's natural endowments (land, water, 
climatic conditions and geographic position) represent potential comparative advantages for its 
agriculture which remains dependent on a fragile subsistence rain -fed system, centre d on paddy 
rice production (Section  4.1.5.1) and with poor access to irrigation. Its agricultural price 
competitiveness remains lower than its regional neighbours.3 Despite significant improvements, 
the low level of overall productivity, both in terms of l abour and land utilization remains a basic 
feature of the sector, especially in rice production; consequently, the sector's challenge is to 
increase production by being more productive and competitive rather than through cultivated land 
expansion.4 Accordi ng to the authorities, labour productivity on an output per worker basis 
                                                
1 About 85% of the population lives in rural areas, and over 60% depends directly or indirectly on the 
income generated by agriculture, forestry or fisheries. According to the World Bank, four million people were 
lifted out of poverty due to positive developments in the sector over the last decade. MAFF, FAO, National 
Medium -Term Priori ty Framework 2011 -2015. Viewed at: http://www.fao.org/3/a -bp576e.pdf ; World Bank 
(2015), Cambodian Agriculture in Transition: Opportunities and Risks.  Viewed at: 
http://www.worldbank.org/en/news/feature/2015/08/19/cambodian -agriculture -in-transition -opportunities -
and-risks; and Ministry of Planning (2014), National Strategic Develop ment Plan 2014 -2018, 17 July. Viewed 
at: http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf . 
2 Following a period of soaring food prices, the sector suffered from a steep decline in prices of 
commodities such as cassava, maize, rice and cashew nuts that hindered the efforts of small producers to 
diversify production and gain better living through exports of production surpluses. MAFF, FAO, National 
Medium -Term Priority Framework 20 11-2015. Viewed at: http://www.fao.org/3/a -bp576e.pdf .  
3 MAFF, FAO, National Medium -Term Priority Framework 2011 -2015. Viewed at: 
http://www.fao.org/3/a -bp576e.pdf ; Giap, T.,K. et al. (2017), 2015 Annual Competitiveness Analysis, 
Agricultural Productivity and Development Vision for Asean -10. (Asia Competitiveness Institute – World 
Scientifica Series) ; OECD (2013),  Structural Policy. Country Notes. Cambodia. Viewed at: 
https://www.oecd.org/dev/asia -pacific/Cambodia.pdf .  
4 World Bank (2015), Cambodian Agriculture in Transition: Opportunities and Risks.  Viewed at: 
http://www.worldbank.org/en/news/feature/2015/08/19/cambodian -agriculture -in-transition -opportunities -
and-risks. WT/TPR/S/364 • Cambodia  
 
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  increased from 1.5  million riel  in the 2000s to 3.3 million riel in 2014 and is seemingly due to 
improved crop production techniques and mechanization; no recent labour or total facto r 
productivity growth indicators were available from the authorities.5 The sector is dominated by 
small household agricultural holdings (two hectares per household) and juridical agricultural 
holdings (agricultural corporations, partnerships, cooperatives,  private institutions, government 
institutions, etc.) managed and operated by the State or private enterprises. In 2013, 101 juridical 
holdings (with an operated area of 806,628 hectares) were engaged in agriculture, 70% of which 
were either public or priv ate limited companies (the rest were registered as owned by sole 
proprietors, partnerships, and branches of a foreign company); just five of them accounted for 
47% of the operated area.6 In 2011 (latest data available), t he main agricultural products in va lue 
terms were paddy (rice in the husk) accounting for 41.3% of total agricultural output and other 
important crops were rubber, cassava, maize, sugar cane, vegetables, soybeans, tobacco; no 
other data were available from the authorities.  In 2013, sugar ca ne, light tobacco and dark 
tobacco constituted the main industrial crops reported by household agricultural holdings and were 
planted on more than 7,000 hectares, with sugar cane accounting for almost 50% of the total area 
planted (3,103 hectares planted o n around 7,000 parcels).7  
4.3.  Between 2011 and 2015, total exports rose substantially from US$424.2 million to 
US$589.6  million, with rice and rubber accounting for 48.3% and 27.4% of total agricultural 
exports. Imports grew from US$479.1  million to US$1 bill ion with cigarettes and mink skin 
representing 80.7% and 23.5% of total agricultural imports (Tables A1.1 and A1.2), possibly due 
to imports for re -export to neighbouring countries.  
4.4.  Although Cambodia is virtually self -sufficient in some major products (e.g . rice), it remains 
an increasingly significant net food importer  as imports of agricultural products continued to rise 
strongly and faster than exports, which remain largely unofficial, directed to neighbouring 
countries and in a non -processed state, thus  reflecting the very low value added of the sector.8 
During the review period, Cambodia remained a food aid recipient. According to WTO notification 
data, between 2011 and 2014 it received 79,600 tonnes of food aid ; in 2016 the World Food 
Programme (WFP) u sed locally purchased rice which, along with an in -kind donation of 
4,118  metric tonnes and complementary commodities (vegetable oil, iodized salt, split peas, 
canned fish) purchased internationally and in the region, provided sufficient stock to sustain W FP 
activities in the country for the entire year.9  
4.1.2   Policy and institutional developments  
4.5.  Under its National Strategic Development Plan (NSDP) 2014 -2018, which implements 
Phase  III of the Rectangular Strategy and succeeded the NSDP 2009 -2013 (Section 2.2),  
Cambodia, inter alia,  aims at transforming the sector from one primarily depending on expanded 
use of available resources and traditional agricultural inputs into one driven by new technologies, 
mechanization and irrigation for improving the yield rate, a nd diversifying activities into high value 
crops, livestock, and aquaculture in an environmentally sustainable manner (Section 2.2).10 Its 
action areas include: improvement of productivity, diversification and commercialization; 
promotion of livestock farmi ng and aquaculture; land reform and clearance of mines; and 
                                                
5 MAFF (undated), Annual Report of Agriculture , Forestry and Fisheries 2016 -2017 and Directions 2017 -
2018. 
6 Ministry of Agriculture, Forestry and Fisheries/Ministry of Planning/National Institute of Statistics 
(2015), Census of Agriculture of the Kingdom of Cambodia 2013 - National Report on Final Cen sus Results , 
December. Viewed at: 
http://www.fao.org/fileadmin/templates/ess/ess_test_folder/World_C ensus_Agriculture/Country_info_2010/Re
ports/Reports_5/KHM_ENG_REP_2013.pdf . 
7 Ministry of Agriculture, Forestry and Fisheries/Ministry of Planning/National Institute of Statistics 
(2015), Census of Agriculture of the Kingdom of Cambodia 2013 - National Rep ort on Final Census Results , 
December. Viewed at: 
http://www.fao.org/fileadmin/templates/ess/ess_tes t_folder/World_Census_Agriculture/Country_info_2010/Re
ports/Reports_5/KHM_ENG_REP_2013.pdf .  
8 WTO document WT/TPR/S/253/Rev.1, 24 November 2011.  
9 WTO document G/AG/W/42/Rev.18, 8 February 2016; World Food Programme (2016), Country 
Programme -Cambodia (20 11-2018). Standard Project Report 2016. Viewed at: 
https://docs.wfp.org/api/documents/7e58ffb899ba4801a2df25277545c730/downlo ad/?_ga=1.260139853.190
7790815.1491203721 . 
10 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2 014-2018.pdf .  WT/TPR/S/364 • Cambodia  
 
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  sustainable management of national resources. During the review period the changing policy 
direction from "extensive" to "intensive" farming has become a priority.11 The expansion and 
improvement o f support services, including research, new technology dissemination, the 
distribution of seeds, fertilizer and agricultural materials, and rural loans, has been established as 
a priority for the government in order to increase agricultural productivity an d fulfil market 
demand in terms of quantity, quality, safety and international standards. In addition to targeted 
agricultural growth of 5% per annum, certain industry -specific policies remain in place, such as the 
Policy on Promotion of Paddy Rice Product ion and Rice Export, Cambodia Natural Rubber 
Development Strategy 2011 -2020, National Forest Programme 2010 -2029, and the Strategic 
Planning Framework for Fisheries Sector 2010 -2019 (Sections 4.1.5.1, 4.1.5.2, 4.1.5.3 and 
4.1.5.4).12 Furthermore, the Agricu ltural Extension Policy remains in place (Section 4.1.4) and an 
Action Plan 2015 -2024 seems to have updated the pillars of this policy.  
4.6.  During the review period, the institutional framework in this area remained largely 
unchanged. The Ministry of Agricult ure, Forests and Fisheries (MAFF) is entrusted with policy 
formulation and implementation in coordination with other institutions such as the Ministry of 
Environment (MoE), the Ministry of Land Management, Urban Planning and Construction 
(MLMUPC), the Mini stry of Rural Development (MRD), the Ministry of Water Resources and 
Meteorology (MOWRAM ), and the Ministry of Commerce (MoC).13 The MAFF and MoE exchanged 
some land concession responsibilities in 2016 .14 The MRD implements integrated rural 
development progr ammes, covering infrastructure, agriculture, water supply and sanitation, as 
well as rural credit allocations.  
4.1.3   Border measures  
4.7.   During the review period, tariff protection for agriculture increased slightly and remains 
higher than the overall applied MFN  average (12.3%, 2017) and the average for manufacturing. In 
2017, the simple average stood at 16.1% (15.4% in 2011) and 14.6% (14.5% in 2011) at HS and 
WTO-definition levels respectively (Tables 3.1 and A3.1). Thus, there was an average gap of 
13.8 percen tage points between average MFN applied and bound rates in agriculture, much higher 
than in manufacturing. To promote the mechanization of the agricultural sector, zero tariffs apply 
to imports of farm machines and equipment (Section 4.1.4).15  
4.8.  The importat ion of certain pesticides is prohibited (Section 3.1.5). Import licensing 
procedures apply to live animals and animal products and agricultural materials, forestry products, 
and fish and fishery products in order to protect human and animal health and the environment, as 
well as to ensure bio -diversity protection, and protect human health, national safety and 
security.16 To curb the spread of avian influenza, since 2004, Cambodia has implemented more 
stringent quality control and inspection requirements on p oultry imports.17  
4.9.  State -trading activities are undertaken in rice by the Green Trade Company (GTC), and have 
not yet been notified to the WTO (Sections 2.2.2, 3.3.5, and 4.1.5.1).  
4.10.   The export tax on certain agricultural products at rates of 10% (e.g. certa in live animals 
(bovine, poultry), fish and molluscs, vegetable materials of a kind used primarily for plaiting ) and 
50% (e.g. coca leaf, poppy straw, cannabis) remained (Section 3.2.2); the export tax on rubber 
                                                
11 MAFF (undated), Annual Report of Agriculture, Forestry and Fisheries 2016 -2017 and Directions 2017 -
2018.  
12 MAFF (2015), Agricultural Extension Policy in Cambodia , April . Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/cam152453.pdf . 
13 MAFF contributes to: ensuring food security; controlling quality and safety of agricultural products; 
promoting agricultural productivity and agricultural diversification; reducing poverty; ens uring market access 
for agricultural products.  
14 MAFF continued to oversee the Economic Land Concessions (ELCs) that it had issued but also took 
responsibility for concessions inside protected areas that the MoE had previously overseen. Concomitantly, the 
MoE took control of certain protected forests that had been managed under the MAFF. FAO (2016), Forest 
tenure policies in Cambodia: Status, gaps and way forward.  Viewed at: http://www.fao.org/3/a -i6246e.pdf .  
15 MAFF (2015), Agricultural Mechanisation in Cambodia. Viewed at: http://www.un -
csam.org/ppta/201409RF/KH.pdf .  
16 WTO documents G/LIC/N/3/KHM/2 , February 2012 and G/LIC/N/3/KHM/3 , May 2013.  
17 Cambodia Country Commercial Guide (2016), Cambodia – Prohibited/Restrict Import.  Viewed at: 
https://www.export.gov/apex/article2?id=Cambodia -Prohibited -and-Restricted -Imports .  WT/TPR/S/364 • Cambodia  
 
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  was revised (Section 4.1.5.2)18. Subject to c ertain criteria, a zero -VAT rate applies to businesses 
that support exporters and subcontractors by supplying goods and services to agricultural 
exporters, and garment and footwear manufacturers (Section 4.3.4).19 
4.1.4   Domestic support measures  
4.11.   In contrast to n eighbouring countries, according to the World Bank, Cambodia's agricultural 
policy has in general been conducive to non -distortive growth; no input/output, fertilizer or other 
significant market distortive support measures have been in place (Table 4.1).20 The Government 
sees its role in increasing the sustainable use of fertilizers through extension, quality and safety 
controls as well as investments in infrastructure rather than as a subsidies provider. According to 
its notifications to the WTO Committee o n Agriculture, Cambodia has not implemented any 
product -specific support, Amber Box or Blue Box measures in the period 2010 -13 (Table 4.1).21 
Most of its Green Box domestic support expenditure, which increased by 59.4%, was channelled 
into extension and adv isory services provided to the farmers.  
4.12.   Worked/exploited agricultural land is exempt from property tax whereas unused land is 
taxable.22 To contribute to reducing production costs, lower electricity prices support agricultural 
irrigation (Section 4.2.2.2);  MAFF has an annual budget of US$6 million to support reduced 
electricity prices for farmers.23 
Table 4.1 Domestic support measuresa, 2010 and 2013  
Measure  Description of measure  Monetary value of 
measure  
(mill ion riel)  
2010  2013  
Research  Research activities on agricultural productivity, land 
diversification, plant and animal health, in accordance with 
Annex 2, para. 2(a) of the Agreement on Agriculture  1,167  1,547  
Pest and disease 
control  Expenditures on plant protection and animal quarantine, in 
accordance with Annex 2, para. 2(b) of the Agreement on 
Agriculture  1,930  3,172  
Training services  Training for farmers and local communities on crop 
productivity, small -scale agri -processing and contract 
farming , in accordance with Annex 2, para.  2(c) of the 
Agreement on Agriculture  2,137  3,500  
Extension and 
advisory services  Extension and advisory services, including transfer of 
information and results of research to farmer cooperatives 
and farmers, in accorda nce with Annex 2, para.  2(d) of the 
Agreement on Agriculture  2,168  3,707  
Inspection services  Expenditures on inspection services relating to animal health, 
in accordance with Annex 2, para. 2(e) of the Agreement on 
Agriculture  142 100 
Marketing and 
promotion services  Marketing and promotion services, including market 
information and market development, in accordance with 
Annex 2, para. 2(f) of the Agreement on Agriculture  100 160 
Infrastructural 
services  Infrastructural services including rehabilitati on and 
maintenance of small -scale irrigation schemes, in accordance 
with Annex 2, para.  2(g) of the Agreement on Agriculture  Nil Nil 
                                                
18 Coca leaf, poppy straw, and cannabis exports are prohibited . 
19 USTR (2016), 2016 National Trade Estimate Report on Foreign Trade Barriers. Viewed at: 
https:/ /ustr.gov/sites/default/files/2016 -NTE-Report -FINAL.pdf . 
20 World Bank (2015),  Cambodian agriculture in transition: opportunities and risks. Viewed at: 
http://documents.worldbank.org/curated/en/805091467993504209/text/96308 -ESW-KH-White -cover -
P145838 -PUBLIC -Cambodian -Agriculture -in-Transition.txt ; WTO document G/AG/N/KHM/3, 2  April 2015.  
21 WTO docu ments G/AG/N/KHM/3, 2 April 2015 and G/AG/N/KHM/4, 7 April 2015.  
22 Royal Government of Cambodia (2013), "Rectangular Strategy" for Growth, Employment, Equity and 
Efficiency Phase III. Viewed at: http://cnv.org.kh/wp -content/uploads/2013/10/26sep13_rectangular -
strategy_phaseIII.pdf .  
23 MAFF (undated), Annual Report of Agriculture, Forestry and Fisheries 2016 -2017 and Directions 
2017-2018.  WT/TPR/S/364 • Cambodia  
 
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  Measure  Description of measure  Monetary value of 
measure  
(mill ion riel)  
2010  2013  
Payments for relief 
from natural 
disasters  Expenditure for relief from natural disaster on the provision of 
agricultural  inputs, equipment and pest and disease control, 
in accordance with Annex  2, para. 8 of the Agreement on 
Agriculture  Nil Nil 
Total   7,644  12,186  
a Measures exempt from the reduction commitment – Green Box.  
Note:  Exchange rate: 2010, US$1 = 4,034 riel; 2 012, US$1 = 4,040 riel.  
Source:  WTO document G/AG/N/KHM/4, 7 April 2015.  
4.13.   In addition to the zero tariff on imports of farm machinery and equipment,  Cambodia may 
offer subsidized loans to support the farmer's purchase of farm machinery (Sections 4.1.2 and 
4.1.3). Loans whenever available may cover 40% -80% of the investment and their duration may 
range from three months to five years with zero -2% interest rates per month.24 The authorities 
indicated that no such loans were granted during the review period. In  2013, 31% of households 
engaged in growing crops availed of micro -finance institutions to obtain credit; around 21% of 
households relied on their friends and relatives to borrow money.25 No other data on agricultural 
lending/financing was available from th e authorities.  
4.14.   An Agricultural Extension Policy (Section 4.1.2) based on strong linkages between farmers, 
researchers, and extension institutions, has been aimed at improving the livelihoods and 
well-being of the population through: improvement of the effe ctiveness of agricultural institutions 
and systems; human resources development; technology development; extension materials 
development; and extension services delivery.26 Its funding sources include the Government, 
development partners, NGOs, and the priv ate sector which offered agricultural extension services 
to agricultural households. No data on the financing of the Agricultural Extension Policy was 
available from the authorities.  
4.15.   Under the September 2012 Sub -decree on the Establishment of Cambodia Foo d Reserve 
System (CFRS), a public food (10,000 tonnes of rice by GTC, 6,000 tonnes of rice by MEF), seed 
(up to 3,000 tonnes of rice) and vegetable seed (50 tonnes) stock covers the immediate food 
needs of 10% of the population in disasters and emergency s ituations; the authorities provide 
3 million riel   for paddy -rice purchases per year and stocks may be distributed for free or at 
discounted prices (e.g. 50% of the market price for seeds).27 According to the authorities, in 2015 
CFRS support stood at US$2. 8 million. Since 2017, pork and chicken meat, fish, rice and cassava 
have been subject to price monitoring (Section 3.3.4). In the context of the regional cooperation 
framework, since 2012 the National Committee for Disaster Management (NCDM) has 
implement ed the agreement on the establishment of ASEAN Coordinating Centre for Humanitarian 
Assistance on Disaster Management (AHA Centre) by contributing US$30,000 per year to the AHA 
Centre Fund.28  
                                                
24 Presentation by  Dr. Chan Saruth, Director of Agricultural Engineering Dept/GDA at the 2nd Regional 
Forum on Sustainable Agricultural Mechanization - Enabling Environment for Custom Hiring of Agricultural 
Machinery, 9 -11 September 2014 titled Agricultural Mechanisation in  Cambodia . Viewed at: http://www.un -
csam.org/ppta/201409RF/KH.pdf . 
25 MAFF (2015), Census of Agriculture of the Kingdom of Cambodia 2013 - National Report on Final 
Census Results , December. Viewed at: 
http://www.fao.org/fileadmin/templates/ess/ess_test_folder/World_Census_Agriculture/Country_info _2010/Re
ports/Reports_5/KHM_ENG_REP_2013.pdf .  
26 MAFF (2015), Agricultural Extension Policy in Cambodia. Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/cam152453.pdf .  
27 Sub-decree 145, 12 September 2012. Royal Government of Cambodia (2012), Sub-decree on the 
Establishment of Cambodia Food Reserve System, June. Viewed at: 
http://ca mnut.weebly.com/uploads/2/0/3/8/20389289/2012_subdecree_emergency_food_reserve_2012.pdf .  
28 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  WT/TPR/S/364 • Cambodia  
 
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  4.1.5   Selected agricultural and livestock items  
4.1.5.1   Rice 
4.16.   Cambodia, the wo rld's 14th largest rice producer and 7th exporter in 2016/17, remains 
self-sufficient in rice, the main source of food and income for most of the rural households, as well 
as of foreign exchange earnings.29 Rice production, processing, and marketing are est imated to 
employ 3 million people, or more than 20% of the country's working -age population.30 Following 
the implementation of the 2010 Policy on the Promotion of Paddy Rice Production and Rice Export 
(Section 4.1.2 and below), the rice paddy yield increase d from 3.3 tonnes per hectare to 
3.6 tonnes per hectare and the production of paddy rice increased by 13%, from 8.3 million tonnes 
(2010) to 9.3  million tonnes (2014).31 Most farmers cultivate paddy rice once per year during the 
rainy season, whereas those in neighbouring countries (e.g. Viet Nam and Thailand) cultivate up to 
3.5 times per year. Their low productivity may, inter alia,  be due to underutilization and non -usage 
of arable land as well as crucial bottlenecks in the value chain, in particular, tho se related to the 
lack of modern storage facilities, production of high -value fragrant rice, and access to working 
capital.32 To sustain the growth of rice production, the Government has devised and implemented 
a programme that uses the sustainable rice clu ster (SRC) method, which increased rice cultivation 
by some 40% over conventional methods, whereas at the same time, it encouraged the use of the 
System of Rice Intensification (SRI) (a less resource -intensive irrigation method) which cut the 
cost of rice cultivation and delivered yields that are nearly 100% higher than those of conventional 
methods.33 Domestic consumption of paddy rice was expected to rise from 3.19 million tonnes in 
2011 to 3.38 million tonnes in 2015.34  
4.17.   According to the authorities, the 2 010 Policy on Paddy Rice Production and Rice Export has 
played an important role in the development of a vigorous milled rice export sector which did not 
exist a few years ago. Nevertheless, they consider that it needs a thorough review and 
stock -taking to  determine which bottlenecks may remain in the value chain, what else must be 
done to eliminate those bottlenecks, and how best to fine tune the key directions of the policy 
based on lessons learned by rice millers and exporters in foreign markets.35 In 201 4, the MoC 
assisted in establishing the Cambodian Rice Federation (CRF) as a catalyst for government policy 
implementation and a prime information hub for investors, public institutions, policy makers, and 
development partners.36 Since 2011, tax incentives have been provided for rice farming, paddy 
rice purchase and the export of milled rice (Section  3.3.1). Through Enhanced Integrated 
Framework EIF -Tier 2 funding combined with EU -funding, 13 large rice millers acquired 
                                                
29 Online data. Viewed at: https://www.statista.com/statistics/255947/top -rice-exporting -countries -
worldwide -2011/  and https://www.worldriceproduction.com/ ; and Thath, R. (2016), Potentials and Constraints 
of Cambodian Rice Export. Munich Personal RePEc Archive. Viewed at: https://mpra.ub.uni -
muenchen.de/71490/1/MPRA_paper_71490.pdf . 
30 IFC (2015), Cambodia Rice. Export Potential and Strategies. Viewed at: 
https://www.ifc.org/wps/wcm/connect/ed10f08049a04cfd8bbcabe54d141794/Cambodia+Market+Survey -
Final-2015.pdf?MOD=AJPERES . 
31 FAOSTAT (2017). Viewed at: http://www.fao.org/faostat/en/#data/QC .  
32 The Diplomat (2013), Cambodia's Economic Opportunity.  Viewed at: 
http://thediplomat.com/2013/05/cambodias -economic-opportunity/ ; EIF, UNDP, and Ministry of Commerce of 
Cambodia (2016), 2016-2020 Medium -Term Plan for the Implementation of Cambodia’s Trade SWAp . Viewed 
at: http://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/MTP.2016 -
20202_4_2016_16_5_323_31_2016_8_49_28.pdf ; Ear, S. (2009),  Sowing and sewing growth: the political 
economy of rice and garments in Camb odia. Viewed at: https://mpra.ub.uni -
muenchen.de/21200/1/MPRA_paper_21200.pdf .  
33 OECD (2014), Structural Policy Country Notes – Cambodia . Viewed at: 
http://www.oecd.org/site/seao/Cambodia.pdf . 
34 Royal Government of Cambodia (2010), Policy Document on the Promotion of Paddy Rice Production 
and Export of Milled Rice . Viewed at: 
http://www.gafspfund.org/sites/gafspfund.org/files/Documents/Cambodia_10_of_16_STRATEGY_SNEC -
Rice%20Export%20Policy_0.pdf .  
35 EIF, UNDP, and Ministry of Commerce of Cambodia (2016), 2016-2020 Medium -Term Plan for the 
Implementation of Cambodia’s Trade SWAp . Viewed at: 
http://www.moc.go v.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/MTP.2016 -
20202_4_2016_16_5_323_31_2016_8_49_28.pdf .  
36 IFC (2015), Cambodia Rice. Export Potential and Strategies. Viewed at: 
https://www.ifc.org/wps/wcm/connect/ed10f08049a04cfd8bbcabe54d141794/Cambodia+Market+Survey -
Final-2015.pdf?MOD=AJPERES .  WT/TPR/S/364 • Cambodia  
 
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  GMP-HACCP certification, and another f ive to seven large millers will be able to achieve their 
certification in the near future.37  
4.18.   Despite missing its 2010 Policy target of exporting one million metric tonnes of rice by 
2015, between 2011 and 2016 the share of rice in total merchandise exports  virtually doubled, i.e. 
from 1.6% to 3% (Table A1.1).38 The European Union (due to the EBA scheme) and China are the 
main export markets for Cambodian rice (Section 2.3.2.2). Cambodian rice benefits from a zero 
import tariff in the European Union that prov ides a cost advantage compared to other exporters; 
an EU safeguard may be triggered when imports under EBA exceed by 25% the volume imported 
the previous year, and in 2014, Cambodia was close to this ceiling .39 
4.19.   Notwithstanding progress in recent years, Camb odia's potential in rice exports seemingly 
remains underutilized and substantially below the export level reached by Viet Nam and 
Thailand.40 Productivity and competitiveness constraints, including the high cost of transportation 
in Cambodia, poor transport  infrastructure, and cumbersome paperwork, increase the export price 
of rice. It seems that a large portion of Cambodian rice continues to be exported unofficially.41  
4.20.   Following a September 2016 rice price reduction, MAFF took urgent measures to prevent the  
exclusive trade with middlemen, and to negotiate with the Rice Millers' Associations in the 
provinces to buy paddy rice from the farmers at a reasonable price by implementing a "special 
programme of the government" in order to stabilize the rice price and  promote local trade.42 This 
US$ 27 million programme managed though the Rural Development Bank (RDB) (Section 4.4.3.1) 
provided loans to the rice millers to buy paddy rice in the harvest areas (so as to increase the rice 
stock), process it and later export  it. At the same time, the importation of agricultural products 
from neighbouring countries was strengthened, and negotiations were carried out to promote 
exports of rice and other agricultural products.  
4.21.   The current MFN applied tariff on rice remains unch anged at zero (rice in the husk) and 7% 
(husked, milled and broken rice); the bound rate is either 5% on rice in the husk (paddy or rough) 
or 40% for the rest.43 No import or export restrictions apply to rice trade. The state -owned Green 
Trade Company (GTC)  continues to manage Cambodia's national reserve of rice through purchases 
and sales made at market prices (Section 3.3.5). According to the authorities, between 2011 and 
2016, GTC exported more than 2.2 million metric tonnes of rice (Section 4.1.3). No fu rther data on 
GTC's trading activities (e.g. imports, domestic sales/purchases, mark -up, gains/losses) were 
available with the authorities.  
                                                
37 EIF, UNDP, and Ministry of Commerce of Cambodia (2016), 2016-2020 Medium -Term Plan for the 
Implementation of Cambodia's Trade SWAp . Viewed at: 
http://www.moc.gov.kh/tradeswap/userfiles/file/upload edfiles/Gallery/MTP.2016 -
20202_4_2016_16_5_323_31_2016_8_49_28.pdf .  
38 Thath, R. (2016), Potentials and Constraints of Cambodian Rice Export. Munich Personal RePEc 
Archive. Viewed at: https://mpra.ub.uni -muenchen.de/71490/1/MPRA_paper_71490.pdf .  
39 World Bank (2015), Cambodian agriculture in transition: opportunities and risks.  Viewed at: 
http://documents.worldbank.org/curated/en/805091467993504209/text/96308 -ESW-KH-White -cover -
P145838 -PUBLIC -Cambodian -Agriculture -in-Transition.txt .  
40 World Bank (2016), Lessons learned - Leveraging the rice value chain for poverty reduction in 
Cambodia, Lao PDR and Myanmar , 25 May. Viewed at: 
http://documents.world bank.org/curated/en/190631467995427159/pdf/105285 -WP-P152624 -PUBLIC -May-25-
2016-final.pdf ; and IWMI, CGIAR, and Australian Government (2013), Agricultural Water Management 
Planning in Cambodia. Viewed at: 
http://www.iwmi.cgiar.org/Publications/issue_briefs/cambodia/issue_brief_01 -
awm_planning_in_cambodia.pdf .  
41 CDRI, CARD; IFPRI, USAID (2011). Cambodia's Agricultural Strategy: Future De velopment Options 
for the Rice Sector. A Policy Discussion Paper. Viewed at: 
https://www.cdri.org.kh/webdata/download/sr/agriStrategy9e.pdf .  
42 MAFF (undated), Annual Report of Agriculture, Forestry and Fisheries 2016 -2017 and Directions 
2017-2018. 
43 General Department of Customs and Excise of Cambodia and WTO (2017). Viewed at: 
http://tariffdata.wto.org/Reporters AndProducts.aspx .  WT/TPR/S/364 • Cambodia  
 
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  4.1.5.2   Rubber  
4.22.   Rubber, produced mostly for export, is the second -largest commodity crop after rice in 
Cambodia, the world' s 20th largest natural rubber producer (2014).44 The total area under rubber 
plantation rose from 307,854 ha in 2013 to 357,809 ha in 2014, thus above its Cambodia Natural 
Rubber Development Strategy 2011 -2020 (Section  4.1.2 and below) target (300,000 ha by  2020) 
ahead of schedule; rubber latex production is expected to reach 300,000 tonnes by 2020.45 In 
2014, the production area was shared among agro -industrial rubber plantations (15.6%, 19.34% 
in 2012), economic land concession companies (ELCs) (new investm ent) (45.2%, 42.25% in 
2012), and smallholding rubber plantations (39.2%, 38.41% in 2012).46 Its cultivated area is 
expected to reach 404,500 ha in 2018, and the yield is expected to increase steadily from 1,257 to 
1,368 kg per ha in 2014 and 2018, respecti vely.47 Although unprocessed rubber output and 
exports in volume terms almost tripled between 2011 and 2016, its share in total merchandise 
exports dropped considerably, i.e. from 2.8% to 1.6% (Table A1.1) as world prices of natural 
rubber have plummeted ov er the last five years due to slower demand in China and a glut of 
supply. Its export market remains poorly diversified with Viet Nam and Malaysia accounting for 
more than 79% of exports of rubber products.48  
4.23.   The priorities set under the Cambodia Natural R ubber Development Strategy 2011 -2020 
remain unchanged and are to: guarantee the quality and productivity of planting material; study 
the legal accessibility of potentially available land suitable for rubber cultivation; encourage rubber 
cultivation by smal lholders by lifting constraints for small, poor farmers, including access to land, 
technical expertise and tailored financing; promote rubber estates as nuclei for rubber smallholder 
development by granting economic concessions and incentives for the devel opment of smallholder 
plantations around the large estates; enhance the rubber value chain by promoting quality 
throughout the sector; and, strengthen MAFF's General Directorate of Rubber's leadership role and 
governance.49 In the framework of the Agricultu ral Extension Policy (Section  4.1.2), the MAFF 
offers public extension services relating to the production, marketing, and processing of rubber.50 
MAFF is in the process of developing a Law on Rubber to provide a comprehensive legal framework 
that encompass es every stage of rubber production from planting and harvesting to export 
processing.51 
4.24.   The simple average MFN tariff for rubber was 13.2% in 2017 (Table A3.1), down from 
14.5% in 2010.52 The export tax on natural rubber was most recently revised in Februar y 2017 
(Section  3.2.2); rates enforced as from March 2017 stand at US$50/tonne (export price from 
US$1,000 to less than US$2,000/tonne), US$100/tonne (export price from US$ 2,000 to less than 
US$3,000/tonne), US$200/tonne (export price from US$3,000/tonne to less than 
US$4,000/tonne) and US$300/tonne (export price up from US$4,000/tonne and above), whereas 
                                                
44 Online data viewed at: 
http://www.factfish.com/statistic/natural%20rubber%2C%20production%20quantity ); OECD (2014) Structural 
Policy Country  Notes – Cambodia . Viewed at: http://www.oecd.org/site/seao/Cambodia.pdf .  
45 EIF, UNDP, and Ministry of Commerce of Cambodia (2016), 2016-2020 Medium -Term Plan for the 
Implementation of Cambodia's Trade SWAp . Viewed at: 
http://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/MTP.2016 -
20202_4_2016_16_5_32 3_31_2016_8_49_28.pdf .  
46 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf ; Gene ral Directorate of Rubber (undated), 
Achievements & Directions of Cambodian Natural Rubber Industry Development .  
47 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  
48 UNSD Comtrade database; EIF, UNDP, and Ministry of Commerce of Cambodia (2016), 2016-2020 
Medium -Term Plan for the Implementation of Cambodia’s Trade SWAp . Viewed at: 
http://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/MTP.2016 -
20202_4_2016_16_5_323_31_2016_8_49_28.pdf .  
49 MoC (2012), Rubber Sector Profile,  June. Viewed at: 
http://www.moc.gov.kh/tradeSWAp/userfiles/Media/file/Pr ojects/TDSP/Top%20Ten%20Products/2012 -07-
26%20Rubber%20Sector%20profile.pdf .  
50 MAFF (2015), Agricultural Extension Policy in Cambodia.  Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/cam1524 53.pdf .  
51 William & Mary Environmental Law and Policy Review (2016), Consequences of Cambodia's Rubber 
Boom: Assessing the Governmental, Environmental, and Human Rights Violations in the Industry's Current 
Regulatory Framework.  Viewed at: 
http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=1661&context=wmelpr .  
52 WTO document WT/TPR/S/253/Rev.1, 24 November 2011.  WT/TPR/S/364 • Cambodia  
 
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  rubber shipments at an export price below US$1,000/tonne are not taxed.53 Prior to 2016, 
exporters were required to pay US$50/tonne if the export price fe ll below US$2,000/tonne; no 
export tax was charged if market prices were above the benchmark. The export tax rate for rubber 
was changed from ad valorem  to specific in 2011. Exports of primarily processed rubber require 
licences (valid for 60 days) that ar e issued by the Bilateral Trade Department of the MoC 
(Section  3.2.3).54 During the review period, international development agencies and donors, such 
as the European Union, the Asian Development Bank and the Japanese International Cooperation 
Agency (JICA) , provided resources to build up the laboratory capacity of agencies dealing with SPS 
and TBT. At present, two laboratories, the Industrial Laboratory Centre of Cambodia (ILCC), under 
the Ministry of Health, and the National Specific Laboratory House under  MAFF's General 
Directorate for Rubber, have achieved international certification and provide certificates to rubber 
exporters.55  
4.1.5.3   Forestry  
4.25.   Cambodia's forests remain state -owned and managed. According to FAO data, in 2015 the 
total forest area of Cambodia c onstituted 9.45 million hectares covering 53% of the country's total 
territory, compared to 10.8 million hectares or approximately 60% in 2006. This decrease was 
mainly due to land conversion to economic land concessions (ELCs) and expansion of agriculture  
(Sections  2.5, 4.1.2 and 4.1.5.2). Since 2013, 2.6 million hectares of land, 14% of the country, 
remain allocated to ELCs for agro -industrial plantations, social land and other types of land 
concessions.56 The decline in forest area, the implementation of the National Forest Programme 
2010-2029 (see below), the shift to alternative sources of energy (including electricity), and 
export restrictions on roundwood led to a 6% reduction in the production of roundwood and wood 
fuel in the period 2011 -15.57  
4.26.   The Fo restry Administration (FA) of MAFF continues to implement the National Forest 
Programme (NFP) 2010 -2029 which remains unchanged and includes initiatives in: forest 
demarcation, classification and registration; conservation and development of forest resourc es and 
biodiversity; forest law enforcement and governance; community forestry; and capacity and R&D. 
Under the NFP, a range of support measures include: research and training services (research and 
educational projects in support of conservation and rehab ilitation of wildlife); monitoring and 
assessment (development of systems and forest databases); and marketing and promotion 
services (development of eco -tourism and integrated community livelihood) in protected areas. Its 
implementation cost for the perio d 2010 -14 stood at US$38.8 million, of which donors contributed 
US$27 million; its cost for the period 2015 -20 was estimated at the same level.58 Forestry's 
regulatory framework remains unchanged.  
4.27.   In line with the NSDP 2014 -2018 guidelines (Section 2.2), t he MoE established four 
protected zones (i.e. core, conservation, sustainable development, and community development) 
to prevent encroachment on the protected areas through the development of agro -industry and 
ecotourism projects and the establishment of p rotected area communities.59 Under the 2016 MoE 
reform (Section 4.1.2), the MAFF transferred forest land to MoE, thus increasing total protected 
areas from 23 to 46 sites including biodiversity corridor conservations of protected area systems 
with a surface  equivalent to 40.9% of Cambodia's territory. In 2016, a national committee was 
                                                
53 The Phnom Penh Post , "Revised rubber expor t tax scheme criticised", 7 March 2016. Viewed at: 
http://www.phnompenhpost.com/business/revised -rubber -export -tax-scheme -criticised .  
54 IFC (2008), Handbook on Export Procedures: Practical Guide for Small and Medium Enterprises in 
Cambodia.  Viewed at: http://www.moc.gov.kh/Portals/0/Docs/OfficialDocs/Handbook -Export-Prodcedure -
Eng.pdf . 
55 EIF, UNDP, and Ministry of Commerce of Cambodia (2016), 2016-2020 Medium -Term Plan for the 
Implementation of Cambodia’s Trade SWAp . Viewed at: 
http://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/MTP.2016 -
20202_4_2016_16_5_323_31_2016_8_49_28.pdf .  
56 Forest Trends Report Series (2015), Forest trade and finance. Conversion Timber, Forest Monitoring, 
and Land -Use Governance in Cambodia. Viewed at: http://forest -
trends.org/releases/uploads/Cambodia%20Concessions%20Report%20small %20size.pdf . 
57 Online FAO data. Viewed at: http://www.fao.org/faostat/en/#data/FO . 
58 Kingdom of Cambodia, National Forest Programme 2010 -2029.  Viewed at: http://www.cdc -
crdb.gov.kh/cdc/documents/Sector_Strategy/6_Forestry_Reform/National_Forest_Programme_2010_2029_En
g.pdf.  
59 Ministry of Planning (2014), National S trategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  WT/TPR/S/364 • Cambodia  
 
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  established to prevent and suppress forest offences in north -eastern Cambodia and as a result 
forest offensives on a large scale decreased; the Forestry Administration prevente d and 
suppressed illegal logging and land encroachment in 1,490 cases, which is 699 cases less than in 
2015.60  
4.28.   The applied MFN tariff rates on forest and forestry products continue to range from zero to 
7% to 35%, while the bound tariff ranges from 15% to 35% (Tables 3.2 and A3.1). Forestry 
products remain subject to import licensing (Section 3.1.5). Exports of processed wood and non -
timber forest products also remain subject to an MoC/MAFF export licence (valid for 60 days), a 
permit letter and the export tax at rates of zero, 5%, 10% or 15% depending on the type of wood 
and degree of processing (i.e. higher rate on the more processed items) (Section 3.2.3). The 
export tax is intended to encourage domestic processing and ensure supplies for the local 
indust ry.61 In addition, a 1% services charge on the f.o.b. value of the exported forest and forestry 
product is levied by MAFF.  
4.29.   Illegal timber trade persists in Cambodia. Despite the 1996 log export ban, the cross -border 
trade continues to grow. Between 2011 an d 2015, exports of roundwood, industrial roundwood, 
wood charcoal and veneer sheets have more than doubled whereas those of total fibre furnish, 
recovered paper and wood chips and particles dropped considerably; in 2015, exports of Siamese 
rosewood attaine d US$35 million despite the ban on exports of endangered species.62 The 2005 
Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan, an EU initiative, provides a 
framework for the development of Voluntary Partnership Agreements (VPAs) to ensure th at timber 
and timber products exported come from legal sources. In 2013, Cambodia completed a study with 
a view to acceding to the VPA but no action seems to have been taken so far.63  
4.30.   According to FAO, major policy gaps  such as (legal) land allocation, rec ognition and transfer 
of rights, responses to livelihoods needs, access to justice and resolution of tenure disputes persist 
in forest policies and regulations.64 Both the Forestry Law 2002 and Community Forestry 
Guidelines 2006 lack legal frameworks to sup port forest -based community enterprises and the 
livelihoods of local people. Furthermore, inadequate policy enforcement is mainly due to weak 
institutional capacity, lack of commitment and limited or no resources. Inefficient forestry 
management can be reg arded as an implicit subsidy for logging.  
4.1.5.4   Fisheries  
4.31.   Fisheries play a relatively important role in the Cambodian economy; freshwater fish is of 
great importance for food security and nutrition.65 Between 2011 and 2016, fisheries' contribution 
to gross value added dropped from 7.2% to 5.8%, as did its share in employment which fell from 
3.9% to 2.7% (5% in 2009) (Table 1.2). Fish exports represented only 0.01% (0.05% in 2011) of 
total merchandise trade in 2015.66 During the period 2011 -2013, fisheries attained annual real 
GDP (constant 2000 prices) growth rates of 2.5%.67 Under NSDP 2009 -2013 (Sections  2.2 and 
4.1.2), Cambodia established 516 fisheries communities and 354 conservation zones within the 
fisheries community area, alongside 50 new conservation areas and eight  fisheries conservation 
zones in Tonle Sap lake covering 22,500 hectares, thus protecting the flooded forest surrounding 
                                                
60 MAFF (undated), Annual Report of Agriculture, Forestry and Fisherie s 2016 -2017 and Directions 2017 -
2018.  
61 IFC (2008), Handbook on Export Procedures: Practical Guide for Small and Medium Enterprises in 
Cambodia.  Viewed at: http://www.moc.gov.kh/Portals/0/Docs/OfficialDocs/Handbook -Export -Prodcedure -
Eng.pdf . 
62 Online FAO data. Viewed at: http://www.fao.org/faostat/en/#data/FO ; Forest Trends (2016), 
Viet Nam's Impor ts of Cambodian Logs and Sawnwood from Natural Forests: 2013 -2015.  Viewed at: 
http://www.forest -trends.org/documents/files/doc_5417.pdf .  
63 Forest Trends Report Series (2015), Forest  trade and finance. Conversion Timber, Forest Monitoring, 
and Land -Use Governance in Cambodia , July . Viewed at: http://forest -
trends.org/releases/up loads/Cambodia%20Concessions%20Report%20small%20size.pdf .  
64 FAO (2016), Forest tenure policies in Cambodia: Status, gaps and way forward.  Viewed at: 
http://www.fao.org/3/a -i6246e.pdf . 
65 Online FAO informa tion. Viewed at: http://www.fao.org/fishery/facp/KHM/en . 
66 UNSO Comtrade database.  
67 Royal Government of Cambodia (2013), "Rectangular Strategy" for Growth, Employment, Equity and 
Efficiency Phase III.  Viewed at: http://cnv.org.kh/wp -content/uploads/2013/10/26sep13_rectangular -
strategy_phaseIII.pdf ; Ministry of Planning (2014), National Strategic Devel opment Plan 2014 -2018, 17 July. 
Viewed at: http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  WT/TPR/S/364 • Cambodia  
 
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  Tonle Sap lake of 647,000 hectares.68 During the period 2011 -2013, inland, marine and 
aquaculture production increased by 24%, 10% and 11%, respectively; their respective shares of 
the total fisheries output volume were 75.3%, 13.7% and 10.9%.69 In 2015, 751,546 tonnes of 
fish were caught, representing an increase of 6,236 tonnes compared with 2014; 487,905 tonnes 
of total output ( 65%) were from fresh water, 120,500 tonnes (16%) from salt water and 
143,141  (19%) from fish farms.70 Between 2014 and 2018, aquaculture output and fish catch 
were expected to grow by 75% and 21%, respectively.71 According to the Strategic Planning 
Framework  for Fisheries 2010 -2019 (SPF) targets, by the end of 2019, Cambodia will have 
processed at least 80% of fish output and will comply with quality and safety assurance 
regulations and standards. Much of the fish production generated is consumed domestically . The 
value of fish exports was estimated to be as high as US$100 million per year; they consist of fish, 
prawns, crabs, and other seafood destined for China, Japan, the Russian Federation and some 
ASEAN countries.72  
4.32.   Activities are divided into coastal and  commercial fisheries. Coastal fishery consists of 
family -scale fishing which extends from the coast to waters of a depth of 20 metres. Boats used in 
this area are either without engines or have engines of less than 50 hp. Commercial fishery is 
characteriz ed by larger -scale fishing boats, using engines of more than 50 hp, and operating from 
the 20 -metre depth line to the limit of the Exclusive Economic Zone (EEZ). Boats fishing in 
Cambodia's waters can be broadly classified as purse seiners, shrimp trawlers  and gillnetters.73 
Cambodia's marine fisheries face two serious productivity threats: excessive fishing effort 
(including significant unregulated foreign fishing activity) and habitat degradation.74 The level of 
subsistence fisheries and fishery workers has  increased, partially as a result of developments in 
the forestry sector (Section  4.1.5.3), forcing ex -forestry workers to the coastal zone where many 
become involved in fishing. Export demand is also encouraging additional fishing effort, especially 
for the high value species.  
4.33.   Cambodia continues to implement the Strategic Planning Framework for Fisheries 
2010-2019 (SPF) and the Declaration on the National Policy for the Fisheries Sector.75 The SPF is 
mainly aimed at boosting fish production to serve domest ic consumption and export markets by 
relying on the three pillars: freshwater and marine -based natural resources fisheries; freshwater 
and marine aquaculture; and facilitating processing and trade.76 It provides for: the suppression of 
all violations of law s, rules and regulations related to fisheries including tightened control of fishing 
gears and fishing period; elimination of overfishing; strengthening fishing communities' capacity 
for the management, use and conservation of fisheries resources; protecti on of biodiversity; and 
aquatic -animal habitats; control of freshwater and seawater quality through pollution minimization, 
protection and replanting of flooded forests and mangroves; demarcation of flooded forest and 
fisheries conservation zones; developm ent of institutional and human capacity; and preparing 
research studies and their dissemination. An SPF 2015 -2024 seems to be in place. It would appear 
from this and previous paragraphs and those that follow (e.g. concerning the absence of quotas for 
TAC) that fishery management is inefficient, thus jeopardizing its long -run sustainability and thus 
viability.  
                                                
68 Royal Government of Cambodia (2013), "Rectangular Strategy" for Growth, Employmen t, Equity and 
Efficiency Phase III. Viewed at: http://cnv.org.kh/wp -content/uploads/2013/10/26sep13_rectangular -
strategy_phaseIII.pdf .  
69 Ministry of Pla nning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  
70 Open Development Cambodia (2015), Agricultu re and Fishing , March. Viewed at: 
https://opendevelopmentcambodia.net/topics/agriculture -and-fishing/ .  
71 Ministry of Planning (2014), National Strategic Development Plan 2 014-2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  
72 Open Development Cambodia (2015), Agriculture and Fishing , March. Viewed at: 
https://opendevelopmentcambodia.net/topics/agriculture -and-fishing/ .  
73 FAO (2011 ), National Fisheries Sector Overview - Cambodia.  March. Viewed at: 
ftp://ftp.fao.org/fi/document/fcp/en/FI_CP_KH.pdf . 
74 Online FAO information. Viewed at: http://www.fao.org/fishery/facp/KHM/en . 
75 MAFF (undated), The Strategic Planning Framew ork for Fisheries: 2010 -2019. Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/cam143042.pdf .  
76 Royal Government of Cambodia (2013), "Rectangular Strategy" for Growth, Employment, Equity and 
Efficiency Phase III. Viewed at: http://cnv.org.kh/wp -content/uploads/2013/10/26sep13_rectangular -
strategy_phaseIII.pdf . WT/TPR/S/364 • Cambodia  
 
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  4.34.   The institutional framework in the fisheries sector remains unchanged. The Fisheries 
Administration (FiA) of MAFF is responsible for the management an d conservation of fishery 
resources in a sustainable manner. In cooperation with the MoC, it seeks ways to reduce trade 
barriers that affect the fisheries sector, in line with the Government's Trade Sector -Wide Approach 
(TradeSWAp).77  
4.35.   No major changes were  made to the fisheries regulatory framework. The 2006 Fisheries Law 
encourages the creation and proper maintenance of conservation zones and strongly promotes the 
development of aquaculture.78 It also ensures long -term conservation and sustainable 
managemen t of fishery resources taking into account social, economic and environmental factors. 
Furthermore, it ensures local community rights to use fishery resources for traditional, religious 
and livelihood purposes through the establishment of community fisheri es. A 2000 sub -decree 
reduced the area of fishing lots by 56% and made 538,522 hectares available for family -scale 
fisheries.  
4.36.   No total allowable catch  (TAC) or other quotas are set for marine fisheries. Coastal fishery is 
freely accessible for boats small er than 33  hp.79 Since the early 2000s when the fishing rights were 
given to fishing communities, the number of bag net fishery licences has remained constant at 
around 80. The fishery law bans trawling in the area between the shoreline and the 20 -metre 
isobath. As many of the trawlers are small and unsuitable for use in offshore areas, much of the 
trawling is done illegally in these areas.80 To reduce illegal fishing, serious penalties are envisaged 
for those who break the law, including government officers.81 To investigate, prevent and 
counteract illegal activities and compile documents for submission to courts, the officers of the 
fisheries administration are considered as judicial fisheries police. Despite the fact that inshore 
trawling is clearly illegal,  the FiA is reluctant to enforce the ban. No government action seems to 
be taken to halt the illegal trawling activity. The number of foreign vessels operating in Cambodian 
waters is also a source of contention. Jurisdiction over waters claimed by Cambodia  is complex and 
the number of foreign vessels is difficult to estimate due, inter alia,  to the fact that the licensing 
function is shared between several government agencies. Since 2014, the EU has enforced a ban 
on fish imports from Cambodia under its 201 0 illegal, unreported and unregulated (IUU) fishing 
regulation due to the country's failure to implement and comply with international legal obligations 
in this area, as there is neither action against illegal fishing by foreign vessels flying the 
Cambodia n flag nor a legal framework and effective monitoring, inspection and catch certification 
schemes.82 The authorities indicated that no new IUU -related legislation is under preparation.  
4.37.   The simple average MFN tariff for fish and fishery products stood at a relatively high rate of 
19.9% in 2017 (Table A3.1), slightly up from 19.3% in 2010 apparently due to customs tariff 
classification changes resulting from the transposition from HS12 to the HS17.83 Fish and fishery 
product imports are subject to non -automati c licensing administering quotas (Section 3.1.5). 
Export of fish remains controlled by the FiA. Provincial licensees are empowered to collect a 4% 
fee on the value of all fish transported through the province without taking title or providing 
service. Expo rters of fish, crustaceans, molluscs and other aquatic products are required to provide 
a transportation permit letter, certificate of origin, and customs permit from MoC, MAFF and 
Customs House. The SPS certificates related to fisheries exports are issued  by MAFF's Department 
of Agronomy and Agricultural Land Improvement (DAALI) at no cost unless a product sample is 
requested for lab testing and if treatment is needed, in which case the exporter will bear the costs 
for these additional services.84 Cambodia is not yet able to legally export crocodile skins as farms 
                                                
77 Royal Government of Cambodia ( 2013), "Rectangular Strategy" for Growth, Employment, Equity and 
Efficiency Phase III. Viewed at: http://cnv.org.kh/wp -content/uploads/2013/10/26sep13_rec tangular -
strategy_phaseIII.pdf .  
78 Online FAO information. Viewed at: http://www.fao.org/fishery/facp/KHM/en . 
79 FAO (2011 ), National Fisheries Sector Overview. Cambodia , March. Viewed at: 
ftp://ftp.fao.org/fi/document/fcp/en/FI_CP_KH.pdf . 
80 Online FAO information. Viewed at: http://www.fao.org/fishery/facp/KHM/en . 
81 Online FAO inform ation. Viewed at: http://www.fao.org/fishery/facp/KHM/en . 
82 Euobserver , "EU bans fish imports from Belize, Cambodia, and Guinea", 24 March 2014. Viewed at: 
https://euobserver.com/environment/123603 ; Open Development Cambodia (2015), Agriculture and Fishing , 
March. Viewed at:  https://opendevelopmentcambodia.net/topi cs/agriculture -and-fishing/ .  
83 WTO document WT/TPR/S/253/Rev.1, 24 November 2011.  
84 FiA uses Pasteur Lab for inspection of facilities and microbiology tests for the United States, Japan 
and Korea (Rep. of). IFC (2008), Handbook on Export Procedures: Prac tical Guide for Small and Medium 
Enterprises in Cambodia.  Viewed at: http://www.moc.gov.kh/Portals/0/Docs/OfficialDocs/Handbook -Export -
Prodcedure -Eng.pdf .  WT/TPR/S/364 • Cambodia  
 
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  are unable to meet industry standards. However, crocodile meat can be exported. Export 
prohibitions apply to any fish species mentioned on the CITES list of endangered species 
(Section  3.1.5). As a  result of unofficial "export gates" at remote locations, smuggling of fish and 
fish products is also active. Smuggling is estimated to account for about 30% of total exports. A 
significant amount of fish was exported unofficially through the border with V iet Nam in 2011; no 
recent data were available on this activity.85  
4.2  Mining and Energy  
4.2.1   Mining  
4.38.   The mining sector remains at an early stage of development despite Cambodia's mineral 
potential, inter alia,  in gold, iron, bauxite, manganese, silica sand, kaolin , limestone, phosphate, 
sapphires, rubies, coal, construction materials and other minerals.86 Between 2011 and 2016, the 
share of mining and quarrying in gross value added rose from 0.6% to 1.5% driven by fast growth 
in construction and infrastructure proje cts, whereas its share in employment rose slightly from 
0.2% to 0.3% (2015) (Table 1.2); the industry accounts for 0.1% of total exports.87 In 2013, 
industrial non -metallic minerals dominated the production of minerals in Cambodia and included 
gravel, sand,  stone, and limestone.88 As of December 2016, a total of 84 (91 in 2013)  domestic 
and foreign companies held mining and exploration licences in Cambodia. Under these licences, a 
total of 61 exploration projects were authorized, of which 23 relate to mining.  The projects include 
exploration of metallic minerals, coal, kaolin, silica sand, antimony, chromite, and bauxite. Major 
investors in mining originate in Australia and China. In 2016, the first gold mining extraction 
licence covering mining and processing  of the ore was granted to Mesco Gold, a subsidiary of the 
Indian steelmaker Mesco Steel Ltd under the new regulatory framework for mining (see below).89  
4.39.   During the review period, Cambodia's mining policy remained unchanged. Its objectives are 
set under it s 2011 policy on minerals aimed at promoting mineral resources development in 
partnership with the private sector. They, inter alia,  involve: establishment of laws and regulations 
related to mining; strengthening management and good governance; increasing and disclosure of 
basic information; strengthening partnerships; development of mining infrastructure and 
communities; fostering artisanal and small and medium size mining operations, and supporting 
improved environmental protection; and increasing the amo unt of value -added mineral products.  
4.40.   The regulatory framework governing the mining industry was last changed in 2016.90 The 
MME Sub -decree 72 now provides for procedures, processes and conditions for the issue of 
exploration (3 years, renewable for another two two -year terms) and industrial mining (maximum 
21 years, renewable for another two ten -year terms only, i.e. a total of 41 years) licences 
including rights and obligations of the licensees. The Law on Management and Exploitation of 
Mineral Resources of  13 July 2001 remains unchanged despite efforts to develop new legislation in 
2015 when a bill modelled on the West Australian Mining Act aimed to level the playing field for 
mining companies by replacing the current contractual system for obtaining mining  and 
exploration licences with a concession system; instead of having to negotiate for rights, under the 
new law all companies would have the same rights.91 By June 2017, the  drafting of a new bill was 
under consideration. The 2001 Law provides for several types of mining licences; the Minister in 
charge of the mining sector should give a written response of approval or disapproval to licence 
applicants within a maximum period of 45 days.92 The Ministry of Mines and Energy (MME) 
remains in charge of formulati ng and implementing the sector's policies and strategies. The MME 
collects a royalty on minerals; a 3% royalty is levied on precious metals.  
                                                
85 FAO online information. Viewed at: http://www.fao.org/fishery/facp/KHM/en . 
86 General Department of Mineral Resources of Cambodia (2013), Current Situation of Mining Industry in 
Cambodia , 6 March. Vi ewed at: http://www.dmr.go.th/ewt_dl_link.php?nid=78951&filename=royal .  
87 UNSO Comtrade database.  
88 USGS (2016), 2013 Minerals Yearbook. Cambodia [Advance Release], February 201 6. Viewed at: 
https://minerals.usgs.gov/minerals/pubs/country/2013/myb3 -2013-cb.pdf .  
89 The Phnom Penh Post , "First mine licensed to draw gold", 14 September 2016. Viewed  at: 
http://www.phnompenhpost.com/business/first -mine-licensed -draw-gold.  
90 DFDL (2016), Cambodia Investment Guide , Phnom Penh.  
91 Khmer Times , "New Mining Law Could Herald  Gold Rush", 6 July 2015. Viewed at: 
http://www.khmertimeskh.com/news/12941/new -mining -law-could -herald -gold-rush/ .  
92 General Department of Mineral Resources of Cambodia (2013), Current Situation of Mining Industry in 
Cambodia , 6 March. Viewed at: http://www.dmr.go.th/ewt_dl_link.php?nid=78951&filename=royal .  WT/TPR/S/364 • Cambodia  
 
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  4.41.   Average MFN tariff protection for minerals and metals stood at 8% in 2017, compared to 
8.2% in 2011 (Table A3.1); some items are subject to the 10% export tax.93 Under Sub -decree 
No. 195 on the Management of Mine Products Exports of 22 September 2016 , exports of minerals 
other than uranium and other radioactive mining that are prohibited, are subject to licensing  upon 
examination of economic, social and environmental criteria such as the economic potential for their 
further domestic processing or their utilization as raw materials for the local construction industry, 
or being in excess of the local demand (Section 3.2.3 ); in the past, exports of unprocessed 
minerals were prohibited.  
4.2.2   Energy  
4.42.   Cambodia's energy structure remains simple; fossil fuels, such as coal and petroleum 
products, are imported, while biomass is mostly produced domestically.94 In 2015, its total primary  
energy supply rose to 4,761 kilotons of oil equivalent (ktoe), of which biomass accounted for 44%, 
oil 39%, coal 11%, hydro 3.6% and electricity 3%, compared to 3,554 ktoe in 2011, of which 
biomass accounted for 51%, oil 44%, electricity 4%, coal 1% and h ydro 0.1%.95 The reduced  
share of overall energy imports compared with indigenous production implies that Cambodia is 
becoming less dependent on energy imports (Section 4.2.2.2).  
4.43.   During the review period, the General Department of Energy (GDE) of the Minist ry of Mines 
and Energy (MME) implemented the Energy Sector Development Plan 2005 -2024 which is aimed 
at: promoting the exploration of energy sources such as hydropower, natural gas, and coal for 
electricity generation; ensuring stability in electricity sup ply to facilitate investment and 
socio-economic development; encouraging the efficient use of energy and mitigating the adverse 
effects on the environment resulting from energy supply and use; encouraging the private sector 
to invest in energy, including i n generation, transmission and distribution; fostering the 
development of all types of renewable energy such as biomass, biogas, bio -fuel; enhancing the 
efficiency of energy through the use of energy -saving stoves to reduce the use of fuel, firewood, 
charc oal; and promoting regional energy trade through bi - and multilateral cooperation.96 These 
objectives remain unchanged in the Energy Sector Development Plan 2017 -2030. The MME 
remains in charge of preparing and implementing policies, strategies, rules and r egulations for the 
energy sector; setting standards; maintaining and analysing data on electricity supply/demand 
and energy resources.  
4.44.   Cambodia is endowed with an abundance of renewable resources (e.g. hydro, wind, solar, 
and agricultural residues), which  have great potential for power production.97 The development of 
renewable energy (RE) is a significant solution to accelerate power sector development and reduce 
dependence on energy imports. If large -scale hydropower (larger than 10 MW) is excluded, the R E 
share in Cambodia's total primary energy supply falls to around 1%. Under the Energy Efficiency 
and Conservation (EE&C) goals submitted to the Fifth East Asia Summit Energy Ministers Meeting, 
held on 20  September  2011, Cambodia aimed to adopt Final Energ y Demand as its Energy 
Efficiency (EE) Indicator and achieve a 10% reduction from the "business -as-usual" scenario by 
2030.98 The action plan to achieve the EE&C goals covers the usage of energy by industry, 
transportation, and commercial and residential us ers, such as the introduction of EE equipment 
and labelling, as well as the promotion of EE public awareness.  
                                                
93 WTO document WT/TPR/S/253 /Rev.1, 24 November 2011.  
94 Economic Research Institute for ASEAN and East Asia (ERIA) (2016), Cambodia National Energy 
Statistics 2016 , September. Viewed at: http://www.eria.org/RPR_FY2015_08.pdf .  
95 Economic Research Institute for ASEAN and East Asia (ERIA) (2016), Cambodia National Energy 
Statistics 2016 , September. Viewed at: http://www.eria.org/RPR_FY2015_08.pdf .  
96 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  
97 Kongchheng Poch (Economic Institute of Cambodia (EIC)) (20 13), Renewable Energy Development in 
Cambodia: Status, Prospects and Policies , August. Viewed at: 
http://www.eria.org/RPR_FY2012_No.26_chapter_7.pdf .  
98 Phoumin, H. (2015), Renewable Energy  Policies and the Solar Home System in Cambodia , Economic 
Research Institute for ASEAN and East Asia, September. Viewed at:  http://www.eria.org/ERIA -DP-2015-
64.pdf . WT/TPR/S/364 • Cambodia  
 
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  4.2.2.1   Hydrocarbons  
4.45.   Cambodia remains an importer of fossil fuels, such as coal and petroleum products. In 
2014, it imported: 490 kt of coal; 112,000 ton nes of liquefied petroleum gases; 427,000 tonnes of 
motor gasoline; 92,000 tonnes of jet kerosene; 89,000 tonnes of fuel oil; and 1,005,000 tonnes of 
gas/diesel.99 In 2016, it imported: 193,600 tonnes of liquefied petroleum gases; 491,000 tonnes 
of motor ga soline; 106,000 tonnes of jet kerosene; 138,500 tonnes of fuel oil; and 
1,240,000  tonnes of gas/diesel. The territory of Cambodia is divided into six offshore blocks 
(A to F) and 19 onshore blocks (I to XIX). Each block is allocated to private companies to  explore 
the potential of oil and gas.100 No oil and gas production has developed so far although exploration 
activities continue to take place; the first significant petroleum discovery was announced in 
January  2005 but due to the decline in the crude oil p rice it remains at an early development 
stage. The Government continues to promote international investments in the oil and gas 
resources in order to promote economic growth, employment and generate revenues.  
4.46.    Downstream wholesale and retail activities ar e open to competition for both domestic and 
foreign operators. Each operating company is obliged to maintain a 30 -day consumption stock of 
hydrocarbons. Since March 2016, a ceiling has applied to the retail sale price of fuel 
(Section  3.3.4); this ceiling price is calculated and made public by the Department of Private 
Sector Development of Ministry of Commerce every ten days (i.e. three times per month).101  
4.2.2.2   Electricity  
4.47.   Electricity production depends on hydro - and diesel -power plants with some import from 
Viet Nam, Thailand, and Lao PDR due to seasonal factors and rapidly growing electricity 
demand.102 The share of electricity, gas and water of gross valued added rose slightly from 0.5% 
(2011) to 0.6% (2016) (Table 1.2). In 2015, electricity was generated from:  hydropower plants 
(2,127.82 million kWh); thermal plants using coal (2,159.64 million kWh); diesel powered plants 
(163.6 million kWh) and plants using wood and other biomass (38.15  million kWh).103 In 2015, the 
total electricity available in Cambodia increa sed to 6,015.35 GWh (2,514.80 GWh in 2010), and 
the share of indigenous production increased to 74.6% (38.5% in 2010), whereas its import share 
decreased to 25.37% (61.49% in 2010) due to the addition of new generation plants. According to 
the authorities,  significant progress has been made in the expansion of service to more rural areas 
and the significant reduction in the selling price of electricity from the grid system in urban areas 
and rural areas (see below). By 2016, 74.7% of all villages were elect rified and electricity was 
supplied to 2.15 million consumers compared to 41.9% and 0.81 million in 2011 respectively. In 
2016, the overall electrification rate was 58.2%, covering 1.9 million households of the total of 
3.28 million households, compared to  26.6% and 0.8 million of a total of 3 million households in 
2011. Between 2003 and 2015, annual growth in electricity sales averaged 20% with total sales 
increasing by over seven times. Cambodia envisages continued annual growth rates of 15 -20% up 
to 2020  thus reaching 10,000 -13,000 GWh in 2020.104 According to the authorities, as at end of 
2016, six hydroelectric and three coal -fired generation plants were in operation representing a 
                                                
99 International Energy Agency (2017 ), 2014 Statistics for Cambodia.  Viewed at: 
http://www.khmertimeskh.com/news/12941/new -mining -law-could -herald -gold-rush/  
https://www.iea.org/statistics/statisticssearch/report/?year=2014&country=Cambodia&product=Electricityand
Heat.  
100 Hirsch, P. (2017), Routledge Handbook of the Environment  in Southeast Asia , New York .  
101 Formula for calculating this ceiling price: Average of MOPs ( Mean of Platts Singapore) + Taxes (i.e. 
Import Tax + VAT + Special Tax)  + Premium (i.e. Operational Cost + Tax on Profit + Profit)  + "VAT Out". 
Inter-ministerial (MoC/MEF/MME)) Prakas No. 098 on "The Price Adjusting Formula for Retail Sale of Fuel in 
Cambodia", 9 March 2016.  
102 Hydropower generation usually declines during the dry seasons due to the lack of water. Economic 
Research Institute for ASEAN and East Asia (ERIA) (2016), Cambodia National Energy Statistics 2016 , 
September. Viewed at: http://www.eria.org/RPR_FY2015_08.pdf .  
103 Electricity Authority of Cambodia (EAC) (2016), Report on Power Sector of the Kin gdom of 
Cambodia. Compiled by Electricity Authority of Cambodia from Data for the year 2015.  Viewed at: 
http://eac.gov.kh/wp -content/uploads/2016/10/Annual -Report -2015-English.pdf .  
104 Derbyshire, W. (2015), Government Private Sector Forum.  Cambodia – In Depth Study on Electricity 
Cost and Supplies. Final Report.  Viewed at: http://www.seac -cambodia.org/wp -
content/uploads/2016/06/Cambodia -in-depth -study -on-electricity -cost-and-supplies -Final-Report.pdf .  WT/TPR/S/364 • Cambodia  
 
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  total capacity of more than 1,300 MW.105 According to the World Bank, in 201 7 Cambodia ranks 
136th out of 190 economies on the ease of getting electricity.106  
4.48.   The right to generate, transmit and distribute electricity is granted by specific licences.107 
Cambodia's electricity utilities consist of: the Electricité du Cambodge (EDC), o wned by the MME 
and the Ministry of Economy and Finance; public power companies; independent power producers 
(IPPs); private transmission companies ; and small private regional utilities (Rural Electricity 
Enterprises (REEs)).108 Although there are over 300  licensed distributors of electricity, sales are 
dominated by EDC; in 2015, EDC transmitted 98.4% of the domestic electricity to consumers, 
whereas holders of consolidated licences and IPPs transmitted 1.1% and 0.4%, respectively.109 At 
present, there are 378 licensees consisting of: EDC; 23 IPPs; 9 special purpose transmission 
licensees and 345 distribution licensees (of which 21 are consolidated licensees – small diesel 
generation and distribution). EDC has the rights and responsibilities for generating, tran smitting 
and distributing electricity throughout Cambodia in conformity with its commercial obligations 
stipulated by laws, statute, licence, and other regulations. It operates as a commercial enterprise 
with independence to organize its business of genera tion, transmission and distribution of 
electricity and make capital investments in the appropriate response to market requirements and 
earn a profit and raise productivity. It is required to abide by the conditions of its licences issued 
by the EAC in prov iding electricity services. In 2015, the generation capacity of EDC was estimated 
at 113.05 MWMW (76.73MW in 2011) representing 5.73% of total installed capacity, compared to 
74.6% generated by IPPs. EDC operates in 20  areas; its customers are residents (9 2.53%), the 
Government (0.36%), commercial customers (6.6%), distributors (0.26%), industrial (0.24%), 
and others (0.02%).110  
4.49.   In 2016, 90.31% of energy was sold from the National Grid, 7.04% from the Medium 
Voltage (MV) Viet Nam Grid, 2.13% from the Thai Gr id, 0.37% from the Lao PDR Grid, and the 
rest from isolated distribution systems.111 According to EAC, in 2015, the total capacity of both 
grid and distribution substations belonging to EDC amounted to 1,660 MVA with 455 km of high 
voltage lines, while total  capacity of substations belonging to other agents constituted 980 MVA 
with an additional 958 km of high voltage lines. In 2016, the total capacity of substations 
belonging to other agents rose to 1,030 MVA with an additional 983 km of high voltage lines.112  
4.50.   Under the NSDP 2014 -2018 (Section 2.2), the Government's objective is to generate 
10,823  GWh of power and to increase per capita annual power consumption to 544 kWh by 
2018.113 Cambodia plans to provide access to electricity to all villages in the country by 2020 and 
for 70% of rural households to have access to quality electricity services by 2030. Cambodia's 
National Power Development Plan 2012 -2016 objectives were to reduce the cost of power 
generation and to increase the electrification rate using the f ollowing methods: import cheaper 
electricity from neighbouring countries; build and bring online large -scale hydroelectric, coal -fired, 
and biomass power generation facilities; improve the transmission network and inter -regional 
links; and expand the power  distribution network nationwide. This plan is currently being updated. 
                                                
105 Electricity Authority of Cambodia (EAC) (2016), Report on Power Sector of the Kingdom of 
Cambodia. Compiled by Electricity Authority of Cambodia from Data for the year 2015.  Viewed at: 
http://eac.gov.kh/wp -content/uploads/2015/07/report -2014en.pdf .  
106 The World Bank (2017), Ease of Doing Business in Cambodia . Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/cambodia .  
107 These licences include generation licences , national transmission licences, special purpose 
transmission licences, dispatch licences, bulk sale retail licences, and subcontract licences.  
108 Electricité du Cambodge (2015 ), Annual report 2015 ; Derbyshire, W. (2015), Government Private 
Sector Forum.  Cambodia – In Depth Study on Electricity Cost and Supplies. Final Report.  Viewed at: 
http://www.seac -cambodia.or g/wp-content/uploads/2016/06/Cambodia -in-depth -study -on-electricity -cost-
and-supplies -Final-Report.pdf . 
109 Electricity Authority of Cambodia (EAC) (2016), Report on Power Sector of the Kingdom of 
Cambodia. Compiled by Electricity Authority of Cambodia from  Data for the year 2015.  Viewed at: 
http://eac.gov.kh/wp -content/uploads/2015/07/report -2014en.pdf .  
110 Electricité du Cambodge (2015 ), Annual report 2015 .  
111 The High Voltage Gr id System comprises all high voltage lines and connects grid substations. 
Electricity Authority of Cambodia (EAC) (2016), Report on Power Sector of the Kingdom of Cambodia. Compiled 
by Electricity Authority of Cambodia from Data for the year 2015. Viewed a t: http://eac.gov.kh/wp -
content/uploads/2016/10/Annual -Report -2015-English.pdf .  
112 Distribution Substation has a primary voltage of 22 kV and secondary voltage of 4 00/230V.  
113 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  WT/TPR/S/364 • Cambodia  
 
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  Furthermore, EDC's Master Plan on Power Sector Development 2008 -2022 sets the following 
goals: increase hydropower and coal -fired generation; development of a power grid 
interconnectin g the nation; electrification of outlying areas; study frameworks for electricity 
trading with Viet Nam, Thailand, Lao PDR, and other ASEAN nations; promotion of 
commercialization and participation by private capital; and setting up an electricity market 
competition and regulatory policy.114  
4.51.   The Electricity Authority of Cambodia (EAC), an autonomous body, remains the regulatory 
authority responsible for licensing electricity enterprises, reviewing costs and approving tariffs of 
licensed enterprises, resolvin g disputes between licensees and between customers and licensees, 
and monitoring and enforcing compliance by licensees with technical and performance 
standards.115  
4.52.   The electricity cost in Cambodia is considered high but action was taken to reduce tariffs.116 
From 2012 onwards, electricity tariffs were reduced due to the rising share of cheap imports as 
well as hydro and coal supplies replacing oil -fired generation. This decline is projected to continue 
under EAC's 2015 -2020 indicative plan for staged reduction s, which can be adjusted if EDC's costs 
change; the plan was last updated in November 2016 setting tariffs for the period 2017 -2020.117 
Electricity tariffs vary by region and consumer group and over time; those charged to industrial 
and commercial consumers are based on United States dollars and  on average generation costs 
and transmission and distribution charges .118 No information on whether the revenue from 
electricity tariffs covers the production cost or data on EDC's annual profits/losses were available 
from the authorities. Cross -subsidization among different consumer groups remains in place as 
residential customers are charged the highest tariffs followed by industrial and commercial 
consumers, pumping for agriculture and poor people. According to EDC da ta, in 2017, electricity 
tariffs for industrial and commercial customers range from US$0.126/kWh (CR 504/kWh) to 
US$0.165/kWh (CR 660/kWh) depending on the supplier, i.e. feeder Medium Voltage (MV), the 
Phnom Penh and Kandal system or from provincial grid and EDC's sub -transmission. At the same 
time, residential customers tariffs range from CR 770/kWh to CR  790/kWh depending on the 
coverage area (i.e. EDC or REE). In 2017, the subsidized tariff for poor people, launched in 
March  2016, ranges from CR 480/kWh  (below 10 kWh/month) to CR 610/kWh (below 
50 kWh/month) depending on their consumption level, whereas the tariff on pumping for 
agriculture stood at CR 480/kWh. The total amount of tariff subsidy for poor people in 2016 was 
around US$24 million.  
4.53.   Since Au gust 2012, the 2004 Rural Electrification Fund (REF), which is financed by donors 
and the Government, has been managed by the EDC.119 For the period 2012 and 2017, the REF 
                                                
114 ERIA (2017), Electric Power Policy and Market Structure in ASEAN Member States , in Yokota, E.; and 
I. Kutani (eds.), Study on Electricity Supply Mis and Role of Policy in ASEAN . ERIA Research Project Report 
2015-18. Viewed at: http://www.eria.org/RPR_FY2015_no.18_Chapter_2.pdf . 
115 Derbyshire, W. (2015), Government Private Sector Forum.  Cambodia – In Depth Study on Electricity 
Cost and Supplies. Final Report.  Viewed at: http://www.seac -cambodia.org/wp -
content/uploads/2016/06/Cambodia -in-depth -study -on-electricity -cost-and-supplies -Final-Report.pdf . 
116 In 2012, the elec tricity price in some areas in Cambodia was up to 10 times higher than in other 
neighbouring countries; the high price of power tariffs is detrimental to Cambodia's ability to attract foreign 
direct investment. The Phnom Penh Post , "Government to cut power  subsidies ", 2012 . Viewed at: 
http://www.phnompenhpost.com/business/government -cut-power -subsidies ; Phoumin, H. (2015), Renewable 
Energy Policies and the Solar Home System  in Cambodia , Economic Research Institute for ASEAN and East 
Asia, September. Viewed at:  http://www.eria.org/ERIA -DP-2015-64.pdf ; Derbyshire, W. (2015), Government 
Private Sector Forum.  Cambodia – In Depth Study on Electricity Cost and Supplies. Final Report.  Viewed at: 
http://www.seac -cambodia.org/wp -content/ uploads/2016/06/Cambodia -in-depth -study -on-electricity -cost-
and-supplies -Final-Report.pdf . 
117 MME Prakas No. 421, 11 November 2016.  
118 Online data. Viewed at: http://www.cambodiainvestment.gov.kh/investment -enviroment/cost -of-
doing -business/utility -cost.html ; and EDC presentation provided by the authorities.  
119 In the period 2005 -2012, the REF utilized funds provided by the World Bank under the  Rural 
Electrification and Transmission Project (RETP) and the Government's counterpart fund. The RETP was a 
US$46  million World Bank –funded project involving a US$40 million loan from the World Bank and US$6 million 
provided by an International Developmen t Association and Global Environment Facility Grant to the 
Government. To continue the work after the completion of the RETP in 2012, the RGC integrated the Rural 
Electrification Fund (REF) into EDC to allow the Department of Rural Electrification to perfo rm its works 
independently using Cambodian funding, while also continuing to receive grants and donations from external 
funding sources. Royal Decrees NS/RKT/1204/048, 4 December 2004, and NS/RKT/0812/734, 22 August 2012. 
Viewed at: WT/TPR/S/364 • Cambodia  
 
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  was funded with a total amount of US$135.9 million of which 93.6% from EDC, 5.7% from the 
German state -owned bank KfW and 0.7% from the Asian Development Bank. The REF provides 
grants to REEs and promotes rural electrification and RE technology through the following 
programmes: Power to the Poor (P2P), Solar Home Systems (SHS) and the Progr amme Providing 
Assistance to Develop Electricity Infrastructure in Rural Areas as well as the Programme for 
Subsidy Scheme and Providing Electricity for Pumping for Agricultural Irrigation to Reduce the 
Tariff for Sale of Electricity in Provinces and Citie s (see above).120 As at 2008, the grants 
programme consisted of: US$45 per new connection; US$100 per SHS of at least 40W; 
US$400  per kW for mini/micro hydro plants; and US$300 per kW for biomass plants.121 In the 
period 2012 -17, the REF funding was allocated as follows: 69.8% to grants; 27.3% to interest free 
loans; and 2.9% to investment participation.  
4.3  Manufacturing  
4.3.1   Features, policy and measures  
4.54.   Manufacturing remains a priority activity in terms of its contribution to the economy, 
employment and merchandise exports.  Its share in gross value added increased from 15.2% in 
2011 to 16.1% in 2016 (Table 1.2); similarly, according to data from the authorities, the share of 
manufacturing in total employment increased from 16.9% in 2011 to 25.5% in 2015. About 50% 
of the workers are employed in the garment segment, 25% in construction, close to 10% in the 
food/beverage processing segment and 13% in other manufacturing segments.122 The sector's 
narrow industrial base remains based on a simple structure of manufacturing c oncentrated on 
garments and food processing. The number of informal enterprises remains relatively high. More 
than 63% of large manufacturing enterprises are foreign investment and export -oriented.123 The 
sector operates mostly by assembling imported compone nts and parts into finished products.124 No 
labour or total factor productivity growth indicators for manufacturing (except for garment) were 
available from the authorities. Exports of manufactured products dropped slightly from 93.5% of 
total merchandise ex ports in 2011 to 92.6% in 2015 (Table A1.1); they remain heavily dependent 
on clothing whose share in total exports rose from 59.6% to 69.5% over the same period.  
4.3.2   Policy and institutions  
4.55.   In line with the NSDP 2014 -2018 (Section 2.2), the Cambodia Industri al Development Policy 
(IDP) 2015 -2025 is aimed at: transforming the industrial structure from a labour -intensive to a 
skill-driven industry by 2025 by: connecting to regional and global value chains; integrating into 
regional production networks and develo ping interconnected production clusters along with efforts 
to strengthen competitiveness and enhance productivity of domestic industries; and moving 
toward developing a technology -driven and knowledge -based modern industry. It sets targets 
including: incre asing the GDP share of manufacturing to 30% by 2025; diversifying the export of 
goods by increasing the share of non -textile exports to 15% of all exports by 2025 while still 
promoting exports of processed agricultural products to reach 12% of all exports by 2025; and 
encouraging the formal registration of 80% of small enterprises and 95% of medium enterprises 
and ensuring that 50% of small enterprises and 70% of medium enterprises have proper accounts 
                                                                                                                                                  
http://camboit.com/ref/admin/public/filedownload/pro_royal%20decree%202nd%20revision%20transfer%20r
ef%20to%20edc_eg.pdf . 
120 Phoumin, H. (2015), Renewable Energy Policies and the Solar Home System in Cambodia , Economic 
Research Institute for ASEAN and East Asia, September. Viewed at:  http://www.eria.org/ERIA -DP-2015-
64.pdf . 
121 Presentation by W illiam C. Oung (REF Advisor) at the World Bank's Sustainable Development Week 
held in February 2008. Viewed at: 
http://siteresources.worldbank.org/INTENERGY2/Resource s/presentation10.pdf .  
122 Royal Government of Cambodia (2015), Cambodia Industrial Development Policy 2015 -2025. 
"Market Orientation and Enabling Environment for Industrial Development" , 6 March 2015. Viewed at: 
http://www.cambodiainvestment.gov.kh/content/uploads/2015/09/IDP -English -Version -FINAL1.pdf .  
123 Royal Government of Cambodia (2015), Cambodia Industrial Development Policy 2015 -2025. 
"Market O rientation and Enabling Environment for Industrial Development ”, 6 March 2015. Viewed at: 
http://www.cambodiainvestment.gov.kh/content/uploads/2015/0 9/IDP -English -Version -FINAL1.pdf .  
124 Royal Government of Cambodia, National Strategic Development Plan 2013 -2018.  Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf . WT/TPR/S/364 • Cambodia  
 
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  and balance sheets.125 To attain these objectives action was, inter alia,  envisaged in FDI 
promotion, SMEs strengthening and modernization, regulatory environment improvement (e.g. 
trade facilitation, export promotion, industrial standards and industrial property rights), and policy 
focusing on skills and human resource development, science, technology and innovation 
promotion, industrial infrastructure build up and financing measures. According to NSDP 
2014-2018, t he priority sectors are: agro -processing and manufacturing; assembly and production 
of electric/ele ctronic components and machinery parts; supporting -sectors to the garment industry 
and handicraft; new industries such as plastics, the chemical industry, and IT infrastructure and 
software development.  
4.56.   According to the authorities, the Council for the De velopment of Cambodia (CDC) (in charge 
of investment of US$15 million or more) coordinates industrial policy in cooperation with the 
Ministry of Industry and Handicrafts (MIH), and the MoC (in charge of SMEs). Policy 
implementation is spread across differe nt ministries.  
4.3.3   Border and domestic support measures  
4.57.   In 2017, the simple average MFN tariff on industrial goods stands at 11.5%, slightly up from 
11.1% in 2011 (Tables 3.1 and A3.1); this allows for an average gap of 9.4 percentage points 
between the avera ge MFN applied and bound rates in manufacturing (HS).126 Export tax rates 
affecting manufactures are set at 5%, 10%, 15%, 20%, or 50%.127 During the review period, 
manufacturing continued to benefit from investment incentives (Sections 2.4 and 3.3.1) including : 
a corporate tax holiday; a special depreciation allowance; import taxes exemption on production 
equipment, construction materials, and production inputs used to produce exports; and Special 
Economic Zones advantages .  
4.3.4   Garments  
4.58.   Cambodia, a relatively late  entrant in the competitive field of labour -intensive garment 
production, ranked 8th among the top 15 garment exporters in 2014 .128 Between 2011 and 2015, 
the garment industry accounted for 10% of the gross value added annually whereas employment 
in the garm ent sector continues to grow as a result of increased demand in the European Union 
(EBA preferences, Section 2.2.2.2) and United States markets. The garment industry output 
accounted for 20,840 billion riel in 2013, and is expected to reach 23,965 billion riel in 2018, which 
is approximately 82% of the manufacturing industry output.129 As of end -2016, the total workforce 
constituted 743,615 mostly female workers at 1,107 factories, compared to 353,805 employees at 
537 factories in 2011.130 Between 2003 and 2015 , the labour productivity of the garment and 
footwear sector rose at an estimated compound annual rate of 2.2%, or an overall rate of 30.1% 
for the entire period.131 In 2012, average labour productivity in the garment and footwear sector 
accounted for US$1,8 48, whereas in Thailand and the Philippines it stood at US$8,178 (2013) and 
US$4,646 (2013), respectively.132 Following a minimum wage increase in 2014, the garment 
sector needs to identify new ways to raise its productivity to remain competitive in the glob al value 
chain; the same year its world market share stood at 1.8% compared to Viet Nam (6.9%), 
                                                
125 Royal Government of Cambodia (2015), Cambodia Industrial Development Policy 2015 -2025, 
"Market Orientation and Enabling Environment for Industrial Development" , March 2015. Viewed at: 
http://www.cambodiainvestment.gov.kh/content/uploads/2015/09/IDP -English -Version -FINAL1.pdf .  
126 WTO document WT/TPR/S/253/Rev.1, 24 November 2011.  
127 MEF (2016), Customs tariff of Cambodia 2017.  October 2016. Provided by  the authorities.  
128 The activities of the Cambodian garment industry are at the lowest end of the value chain primarily 
consisting of CMT (Cut, Make, Trim) which uses mostly imported fabric such as light rubberized knitted fabric, 
other synthetic fabrics, and pile fabrics. CNV International (2016), Country Study Cambodia. Labour Standards 
in the Garment Supply Chain. Viewed at: 
https://www.cnvinternationaal.nl/_Resources/Persistent/0e05eebdbf4a1a6c31409dc12aee83b8f532a4b5/2016
1102%20CNV%20CS%20Cambo_clickable%20extern%20ENG%20DEF.pdf .  
129 Ministry of Planning (2014), National Strategic D evelopment Plan 2014 -2018, 17 July. Viewed at: 
http://mop.gov.kh/DocumentEN/NSDP%202014 -2018%20EN%20Fianl%20for%20Publishing -1.pdf.  
130 Ministry of Industry and Handicraft (2016), Report of July 2016.   
131 ILO (2016), Cambodian Garment and Footwear Sector Bulletin , August 2016. Viewed at: 
http://www .ilo.org/wcmsp5/groups/public/ ---asia/---ro-bangkok/documents/publication/wcms_517535.pdf . 
132 Labour productivity is defined as gross value added in current prices per employed person, converted 
to US$ at official nominal exchange rates. The figures are in dustry -wide averages, measured in a consistent 
way across countries. ILO (2016), Cambodian Garment and Footwear Sector Bulletin , August 2016. Viewed at: 
http://www.ilo.org/wcmsp5/groups/public/ ---asia/---ro-bangkok/documents/publication/wcms_517535.pdf . WT/TPR/S/364 • Cambodia  
 
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  Bangladesh (5.5%), and Indonesia (2.6%) .133 Over 90% of the garment factories are foreign 
controlled.134 
4.59.   During the review period,  the simple average MFN tariff on textiles remained unchanged at 
5.7%, whereas the tariff on clothing was slightly increased from 14.1% in 2011 to 15% in 2017 
(Table A3.1).135 Garment exports remain subject to a certificate of origin issued by MoC 
(Section  3.2.3).136 According to the authoriti es, no production assistance subsidies are in place; 
most garment producers benefit from existing incentives under QIPs or by being located in a SEZ 
so as to increase the value added and sophistication in production (Sections 2.4, 3.1.4, 3.1.7, 
3.2.4, and 3.3.1).137  
4.4  Services  
4.4.1   Features  
4.60.   Services continue to be the largest contributor to the gross value added of Cambodia; their 
share rose from 37.5% (2011) to 39.2% (2016) during the review period (Table 1.2). Similarly, 
according to data by the authorities, the share of services in total employment also increased from 
27.3% in 2011 to 32.9% in 2015. In 2015, the annual growth in the services sector declined from 
8.7% in 2014 to 7.1%, and continued to decelerate in 2016 down to 6.7% mostly due to the 
slowdown in t ourism (Section  4.4.7) and softer performance of the real estate, finance and public 
administration subsectors.138 Labour productivity grew in the 1990s, in particular, in areas such as 
finance, transport and communications.139 No recent labour or total factor  productivity growth 
indicators were available from the authorities. As of 2016, real estate and business, wholesale and 
retail trade, and transport and communications remain the leading activities in terms of gross 
value added contribution, followed by re staurants and hotels, and finance and public 
administration.  
4.61.   In 2015, Cambodia ranked as the 82nd largest exporter and 111th largest importer of 
commercial services in the world.140 In 2016, its main services exports consisted of travel (79.6% 
of total cred its), whereas imports largely consisted of transportation (51.5%) and travel (25.4%) 
(Table 1.4). Cambodia remains a net exporter of services; the trade balance increased from 
US$1.4 billion in 2011 to about US$2.1 billion in 2016 (Table 1.3). Foreign dire ct investment in the 
services sector is mostly concentrated in the tourism industry (Section 4.4.7).141  
                                                
133 In 2016, the minimum monthly wage was raised from US$140 to US$153. The Cambodia Daily , 
"Government Raises Garment Wage to $153", 29 Septemb er 2016. Viewed at: 
https://www.cambodiadaily.com/news/garment -sector -minimum -wage -set-153-118642/ ; Royal Government 
of Cambodia (2015), Cambodia Industrial Deve lopment Policy 2015 -2025. "Market Orientation and Enabling 
Environment for Industrial Development" , 6 March. Viewed at: 
http://www.cambodiainvestment .gov.kh/content/uploads/2015/09/IDP -English -Version -FINAL1.pdf ; ILO 
(2016), Cambodian Garment and Footwear Sector Bulletin , March. Viewed at: 
http://www.ilo.org/wcmsp5/groups/public/ ---asia/---ro-bangkok/documents/publication/wcms_463849.pdf . 
134 FDI in garments originates mostly in: China; Republic of Korea; Hong Kong, China; Malaysia; and 
Singapore. UNCTAD (2013), Cambodia. Sector -specific in vestment strategy and action plan.  February, 2013. 
Viewed at: http://unctad.org/Sections/diae_dir/docs/diae_G20_Cambodia_en.pdf ; CNV International (2016), 
Country Study Cambod ia. Labour Standards in the Garment Supply Chain. Viewed at: 
https://www.cnvintern ationaal.nl/_Resources/Persistent/0e05eebdbf4a1a6c31409dc12aee83b8f532a4b5/2016
1102%20CNV%20CS%20Cambo_clickable%20extern%20ENG%20DEF.pdf . 
135 WTO document WT/TPR/S/253/Rev.1, 24 November 2011.  
136 IFC (2008), Handbook on Export Procedures: Practical Guide fo r Small and Medium Enterprises in 
Cambodia.  Viewed at: http://www.moc.gov.kh/Portals/0/Docs/OfficialDocs/Handbook -Export -Prodcedure -
Eng.pdf . 
137 Royal Govern ment of Cambodia (2015), Cambodia Industrial Development Policy 2015 -2025. 
“Market Orientation and Enabling Environment for Industrial Development ”, 6 March 2015. Viewed at: 
http://www.cambodiainvestment.gov.kh/content/uploads/2015/09/IDP -English -Version -FINAL1.pdf .  
138 Ministry of Economy and Finance (2016), Cambodia Macroeconomic Monitor - Mid-year assessment  
2016, August.  
139 OECD (2013), Structural policy. Country notes Cambodia.  Viewed at: 
https://www.oecd.org/dev/asia -pacific/Cambodia.pdf .  
140 WTO online data. Viewed at: 
http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=E&Country=KH .  
141 World Bank (2014), Cambodia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: WT/TPR/S/364 • Cambodia  
 
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  4.62.   Cambodia's trade restrictiveness in services is the second lowest in the East Asia and Pacific 
region.142 According to the World Bank, while its services t rade has reached a significant level of 
liberalization allowing private sector provision of services as well as foreign ownership on a 
non-discriminatory basis in a wide range of sectors, governance still remains weak.143 In 
particular, the country faces cha llenges such as a lack of transparency and predictability in the 
implementation of regulations, which is impeding full liberalization of many services sectors, even 
though the legal framework formally adheres to Cambodia's international commitments. Missin g 
information relating to regulatory requirements, inconsistent application and interpretation of 
regulations across agencies, frequent changes of administrative practices and alleged discretionary 
applications of rules constitute limitations to an otherwi se open regime. In addition, the regulatory 
infrastructure, human resource capacity and other resources, remain insufficient.  
4.4.2   Overall commitments under the General Agreement on Trade in Services and RTAs  
4.63.   Cambodia's commitments under the GATS reflect its a im to attract FDI and remained 
unchanged during the review period. Its Schedule of Specific Commitments covers 94 sub -sectors 
in certain business services, communication services, construction and related engineering 
services, distribution services, educat ional services, environmental services, financial services, 
health related and social services, tourism and travel related services, recreational, cultural and 
sporting services, and transport services.144 Except for a few services, such as basic 
telecommuni cations, travel agencies, tour operators, and tourist guides, no limitations to foreign 
ownership exist. Cambodia undertook commitments on market access and national treatment 
across all main sub -sectors, leaving the provision of cross -border services in m ost committed 
sectors largely free of restrictions. Horizontal restrictions on commercial presence include 
restrictions on land ownership, access to subsidies, and investment incentives.145 Cambodia's list 
of Article II (MFN) Exemptions covers audiovisual se rvices, land transport, internal waterway 
transport, and maritime transport.146 In April 2011, Cambodia participated in the joint submission 
by ASEAN members on the negotiations on emergency safeguard measures (Article X) to the 
Working Party on GATS Rules.147 
4.64.   Cambodia participates in five RTAs involving GATS plus commitments on trade in services: 
ASEAN -Australia -New Zealand FTA (AANZAFTA), ASEAN -China FTA (ACFTA), ASEAN -India FTA 
(AIFTA), ASEAN -Republic of Korea FTA (AKFTA) and ASEAN Framework Agreement in Ser vices 
(Section  2.3.2.1). The negotiation of a Regional Comprehensive Economic Partnership (RCEP) 
involving GATS plus commitments is under way.  
4.4.3   Financial services  
4.65.   During the review period, despite a slowdown in growth, the financial services' contribution 
to gross value added rose from 1.5% to 1.9% (Table 1.2). The sector's total assets rose from 
US$11.9 billion in 2012 to US$27.6 billion in 2016 (Table 4.2). In 2016, banks accounted for 86% 
of the system's assets compared to 91% in 2012. As of April 2015, Cambodia received 
                                                                                                                                                  
http://documents.worldbank.org/curated/en/806791468015647474/pdf/912430WP0P12570mbodia0Service0Tr
ade.pdf .  
142 According to the World Bank's Services Trade Restrictiv eness Index Cambodia scores 23.7 compared 
to China (36.6), Indonesia (50), Malaysia (46.1), Mongolia (13.7), the Philippines (53.5), Thailand (48), and 
Viet Nam (41.5). Viewed at: http://iresearch .worldbank.org/servicetrade/ . 
143 World Bank (2014), Cambodia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.worldbank.org/curated/en/806791468015647474/pdf/912430WP0P12570mbodia0Service0Tr
ade.pdf .  
144 WTO (undated), Services Profiles 2015. Viewed at: 
https://w ww.wto.org/english/res_e/booksp_e/serv_profiles15_e.pdf ; WTO documents WT/TPR/S/253/Rev.1, 
24 November 2011, and GATS/SC/140, 25 October 2005.  
145 World Bank (2014), Cambodia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.banquemondiale.org/curated/fr/806791468015647474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf .  
146 WTO document GATS/EL/140 , 25 October 2005.  
147 WTO document S/WPGR/21, 14 April 2011.  WT/TPR/S/364 • Cambodia  
 
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  US$15.4  million (1.4% of the total amount) of active lending, grants, and technical assistance 
from the Asian Development Bank for the development of its financial sector.148  
Table 4.2 Structu re of the financial system, 2011 -17 
(US$ million and per cent)  
 2011  2012  2013  2014  2015  2016  2017  
(January)  
Total financial system 
assets, of which  8,656.8  11,876.3  14,244.0  18,794.1  23,447.0  27,558.2  .. 
Banks  7,907.1  10,802.3  12,646.0  16,353.0  19,875.5  23,706.2  27,247.6  
 Assets of state -owned 
banks  51.7  67.1  72.5  70.0  94.0  101.4  103.0  
Microfinance institutions  749.0  1,073.0  1,597.0  2,440.0  3,570.0  3,850.0  3,900.0  
Insurance companies  0.75 0.98 1.02 1.09 1.47 1.92 .. 
Credits, of which  4,968.0 6,731.7  8,668.9  11,361.9  14,509.6  17,008.3  17,138.5  
Banks  4,326.3   5,845.9  7,351.8  9,344.9  11,514.2  13,876.4  13,910.1  
 State -owned banks  34.3  54.7  61.5  70.0  63.5  72.4  67.8 
Microfinance institutions  641.6  885.8  1,317.1  2,017.0  2,995.4  3,131.9  3,228.4  
Non-performing loans/total 
loans (banks + MFIs) (%)  2.1 2.0 2.3 1.6 1.6 2.2 2.4 
Non-performing loans/bank 
loans (all banks) (%)  2.4 2.5 2.7 2.2 2.0 2.4 2.5 
Non-performing loans/MFIs 
loans (%)  0.2 0.3 0.6 0.6 0.8 1.4 1.6 
Loans in foreign 
currency/total loans (%)  97 99 99 98 98 99 99 
Credits/GDP (%)  38.7 47.9 56.9 68.0 80.4 85.0 .. 
Deposits, of which  6,019.6  6,946.5  7,937.9  10,728.0  15,070.5  15,199.2  15,580.7  
Banks  5,905.8  6,672.6  7,499.9  9,839.5  13,761.7  13,723.6  14,083.3  
 State -owned  banks  1.36  1.27  1.54  2.80  1.15  1.29  1.35 
Microfinance institutions  113.8  273.9  438.0  888.5  1,308.9  1,475.6  1,497.3  
Deposits in foreign 
currency/total deposits (%)  96.5 96.1 95.6 96.8 94.8 96.3 94.6 
Deposits/GDP (%)  46.9  49.4 52.1 64.2 83.5 75.9 .. 
Interest rate spread 
(domestic currency) (%)  19.7 12.3 12.0 14.9 14.7 15.4 15.1 
Interest rate spread 
(foreign currency) (%)  15.2 12.0 10.9 10.7 10.8 10.9 8.1 
.. Not available.  
Source:  National Bank of Cambodia. Viewed at: 
https://www.nbc.org.kh/english/economic_research/banks_reports.php ; and information provided 
by the authorities.  
4.66.   According to the IMF, although core financial soundness indicators (FSIs) appeared hea lthy 
in 2015, there was a trend decline in capital.149 Supervisory capacity remains heavily stretched 
given the rapid growth of the financial system and the large number of banks and micro -finance 
institutions (MFIs). In particular, further efforts would str engthen the crisis management 
framework and the supervisory capacity of the National Bank of Cambodia (see below); a 
moratorium on offering new bank licences until supervisory capacity improves could also be 
considered.  
4.67.   Since the previous TPR, there have b een several changes in the policy framework of the 
sector. The Financial Sector Development Strategy (FSDS) for 2006 -2015 was updated by the 
FSDS 2011 -2020 and FSDS 2016 -2025, which aim, inter alia,  to achieve a sound, efficient, 
diversified and inclusive market -based financial system that can broadly fulfil domestic demand for 
                                                
148 IMF (2015), 2015 Article IV Consultation —Press Release; Staff Report; and Statement by the 
Executive Director for Cambodia , November. Viewed at: 
https://www.imf.org/external/pubs/ft/scr/2015/cr15307.pdf . 
149 IMF (2015), 2015 Article IV Consultation —Press Release; Staff Report; and Statement by the 
Executive Director for Cambodia , November 2015. Viewed at: 
https://www.imf.org/external/pubs/ft/scr/2015/cr15307.pdf . WT/TPR/S/364 • Cambodia  
 
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  financial services and is able to effectively support sustainable economic growth, raise people's 
income, reduce poverty and well align with regional economic and financial integrati on. The 
Government also takes a flexible approach in implementing the strategy to better respond to the 
evolution of the current situation and on -going needs. Its goals are to ensure rapid finance 
industry diversification, bring regulations and supervision  up to international standards, establish a 
mechanism to manage in times of crisis, and assist the financial sector to provide needed financing 
and financial services to the agriculture, industry, and other real economic sectors. The Action 
plans of the FS DS 2016 -2025 remain aimed at building capacity for consolidated supervision and 
surveillance; combatting money laundering and the financ ing of  terrorism; promoting leasing; 
improving corporate governance, data quality, accounting, and auditing, as well as property 
management valuation, real estate services, and the housing market.150 
4.4.3.1   Banking and finance  
4.68.   The banking sector continued to expand with assets having grown almost threefold between 
2011 and 2016 (Table 4.2) as a result of the entry of 15 new banks a nd 34 new micro -finance 
institutions (MFIs), capital increase requirements for banks and MFIs, as well as a sharp increase 
in customers' deposits. Despite the progress in the sector, it is still in the early stage of 
development as it lacks infrastructure to engage in all financial operations.151 For the first 
six months of 2016, US$242.25 million (out of US$969 million) of FDI flows went to the banking 
sector, indicating that a larger portion still goes to the productive sectors.152 As of 2016, the 
banking sys tem structure had expanded and consisted of 38 commercial banks (31 in 2011), 
15 specialized banks (7 in 2011), 7 microfinance deposit -taking  institutions (7 in 2011),  65 MFIs 
(31 in 2011),  178 registered microfinance operators (28 in 2011), 7 representati ve offices (2 in 
2011),  12 financial lease companies (none in 2011), 8 third -party processors (1 in 2011), 1 credit 
bureau company (none in 2011), and 2,149 money changers (1,296 in 2011).153 Among the 
38 banks, 7 local banks have a local majority ownership and 5 local banks enjoy foreign majority; 
additionally, there are 15 foreign subsidiary banks and 11 foreign branch banks. Among the 
specialized banks, one is state -owned (Rural Development Bank), five local banks enjoy local 
majority ownership and nine ha ve foreign majority. Specialized banks are limited to only providing 
loans but not taking deposits.  
Role of central bank  
4.69.   The officially independent National Bank of Cambodia (NBC) (see below), the central bank, 
remains in charge of ensuring price stabilit y and supporting economic development.154 Its main 
tasks include acting as: the monetary authority and implementing monetary policy; the sole issuer 
of the national currency; the supervisory authority for the banking and financial system; and 
                                                
150 ADB (2011), Financial Sector Development Strategy 2011 -2020.  Viewed at: 
https://www.adb.org/sites/default/files/publication/30158/financial -sector -development -strategy -2011-
2020.pdf . 
151 Kingdom of Cambodia (2011), Financial Sector Development Strategy 2011 -2020.  Viewed at: 
https://www.adb.org/sites/default/files/publication/30158/financial -sector -development -strategy -2011-
2020.pdf . 
152 Minist ry of Economy and Finance (2016), Cambodia Macroeconomic Monitor - Mid-year assessment  
2016, August.  
153 National Bank of Cambodia (2017), Annual Report 2016.  Viewed at: 
https://www.nbc.org.kh/download_files/supervision/sup_an_rep_eng/Annual -2016-ENG.pdf ; NBC (2011), 
Annual report 2011. Viewed at: 
https://www.nbc.org.kh/download_files/publication/annual_rep_eng/AnnualReport2011.pdf ; NBC (2012), 
Annual report 2011 - General Directorate of Supervision . Viewed at: 
https://www.nbc.org.kh/download_files/supervision/sup_an_rep_eng/Annual_Supervison_Report_2011_ENG.p
df.  
154 Although formally independent, the NBC se ems subordinated to the Government. In addition to 
government representation to its Board of Directors, its current governor is a member of the ruling Cambodian 
People's Party (CPP) politburo as well as a former member of Parliament and Minister of Plannin g. However, 
governmental interventions in the bank's independence do not appear substantial as viewed from the outside. 
Bertelsmann Stiftung, BTI (2016 ), Cambodia Country Report, Gütersloh. Viewed at:  https://www.bti -
project.org/fileadmin/files/BTI/Downloads/Reports/2016/pdf/BTI_2016_Cambodia.pdf .  WT/TPR/S/364 • Cambodia  
 
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  overseeing the payment system. The NBC intervenes in the foreign exchange market when 
deemed necessary to keep a stable exchange rate and ensure price stability.155  
Institutional setting and supervisory board  
4.70.   The institutional setting remained unchanged since the previous  review. The NBC continues 
to prudentially supervise banks and financial institutions via: on -site supervision by, inter alia,  
formulating and implementing strategies, and on -site planning by producing assessment reports, 
ensuring compliance with NBC's law s and regulations, cooperating with banks and financial 
institutions; and off -site supervision, including regularly supervising, monitoring, and analysing the 
operations and review of periodic financial reports of banks and financial institutions to ensure  
compliance with regulatory requirements and safe and sound banking practices. Its highest 
decision -making body, the Board of Directors, is composed of five representatives from 
government, academia, the private sector, and NBC staff; it meets at least onc e every 
two months.156  
Regulatory framework  
4.71.   During the review period, several changes were made to the regulatory framework 
governing banking activities. In 2016, the NBC issued a set of regulations to strengthen the capital 
base in the banking system and p romote the provision of credit in the national currency.157 They 
consist of: Directive No.  B7-016-210 Sor.  Chor. Nor, 11 March 2016, on "Prohibition of taking 
Identity Card, Family Record, and Residence Record as guarantee for provision of credit" to avoid 
observed violation of civil code and existing regulations; Prakas No.  B7-016-117 Pro.kor, 
22 March  2016, on "Minimum Registered Capital of the Banking and Financial Institutions" 
according to which institutions have two years to increase their capital to fu lfil the minimum capital 
requirement158; Circular No. B7 -016-001 C.L., 16 June 2016, on "Implementation of Prakas on 
Minimum Registered Capital of Banking and Financial Institutions" requiring institutions under the 
NBC authority to increase minimum register ed capital with half of the additional required capital by 
end-March 2017 and fulfil the minimum registered capital by 22 of March 2018159; and Prakas 
No. B7-016-334 Pro.Kor., 1 December 2016, on "Provision of Credit in National Currency of 
Banking and Finan cial Institutions" requiring banks and financial institutions under NBC supervision 
to have at least 10% of their total loan portfolio in the national currency.160 Moreover, the NBC is 
in the process of preparing Prakas on risk management and audit to enhanc e the regulatory 
framework.161  
4.72.   To further strengthen the microfinance sector, on 13 March 2017, the NBC issued Prakas 
No. B7 -017-109 PK on the Interest Rate Ceiling on Certain Loans. It sets the interest rate ceiling 
on loans provided by microfinance deposi t-taking institutions, microfinance institutions, and rural 
credit operators under the NBC's supervisory authority. The main objective is to protect consumers 
from excessive interest rates and to promote the use of affordable loans. Under this Prakas, the 
                                                
155 Kingdom of Cambodia (2011), Financial Sector Develop ment Strategy 2011 -2020.  Viewed at: 
https://www.adb.org/sites/default/files/publication/30158/financial -sector -development -strategy -2011-
2020.pdf . 
156 NBC online information. Viewed at: 
https://www.nbc.org.kh/english/about_the_bank/structure_of_nbc.php . 
157 NBC (2017), Annual Report 2016.March 2017. Viewed  at: 
https://www.nbc.org.kh/download_files/supervision/sup_an_rep_eng/Annual -2016-ENG.pdf .  
158 The minimum capital requirements are as follows: for commerci al banks incorporated as a foreign 
branch whose parent bank is rated investment grade is 200 billion riel; for a commercial bank locally 
incorporated as a local company or foreign subsidiary – 300 billion riel; for a specialized bank locally 
incorporated – 60 billion riel; for microfinance deposit -taking institutions – 120 billion riel; and for microfinance 
institutions – 6 billion riel.  
159 In case of failure to comply with the provision, the institution was obliged to either find a new 
potential investor, o r conduct mergers and acquisition with other institutions, or change legal status of the 
institution, or liquidate on a voluntary manner.  
160 National Bank of Cambodia (2017), Annual Report 2016.  Viewed at: 
https://www.nbc.org.kh/download_files/supervision/sup_an_rep_eng/Annual -2016-ENG.pdf .  
161 Prakas on "Liquidity Risk Management Framework for Banks and Financial Institutions", Prakas on 
"External Audit of B anks and Financial Institutions", Prakas on "Credit Risk Grading and Impairment 
Provisioning", Prakas on "Conservation Buffer and Countercyclical in Banks and Financial Institutions", Prakas 
on "Solvency of Banks and Financial Intuitions", Prakas on "Promp t Corrective Action for Banks and Financial 
Institutions".  WT/TPR/S/364 • Cambodia  
 
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  impacted institutions may not set interest rates exceeding 18% per annum for any maturity of 
loan. Such interest rate ceiling is effective for new loan contracts, including restructured loans and 
refinancing, executed from 1 April 2017.162  
4.73.   Other changes in the regulatory framework included amendments on definitions and 
penalties (Article 3, 29, and 30) of the Law on Anti Money -Laundering and Combating the 
Financing of Terrorism that were issued on 3 June 2013.163 In the 2016 Basel Anti -Money 
Laundering Index, Cambodia ranked 6th out of 149 countries (3rd out of 162  countries in 2014) 
worldwide, indicating that despite improvement the country continues to be regarded as having a 
relatively weak Anti -Money Laundering and Combating Financing of Terrorism Framework .164 
Market access  
4.74.   Market access conditions remain unchanged. Concerning the cross -border supply mode, 
deposit taking from the public must be reinvested in Cambodia. Foreign banks established in 
Cambodia must be either a locally incorporated entity or a bra nch of a foreign bank. Foreign banks 
may also establish representative offices whose activities are solely limited to information 
purposes.  
Prudential regulations and capital adequacy requirements  
4.75.   During the review period, the NBC took a number of pre -emptive steps to enhance the 
resilience of its financial system, strengthen liquidity regulations and align them with international 
standards, by introducing a Basel III -compliant Liquidity Coverage Ratio (LCR).165 It implemented 
new Prakas setting the LCR at 1 00% by 1 January 2020. The NBC is currently gradually 
implementing a minimum capital adequacy requirement (CAR) set at 15%.  The NBC also raised 
minimum capital requirements in March 2016 (see above) that are to be in full effect within 
two years. In 2016, the NBC minimum capital requirements stood at 10. 5% (8% requirement 
+ 2.5% conservation buffer) and LCR of 60%.166 As of December 2016, the NBC reported a 
solvency ratio of 22.3% and a liquidity ratio of 118.3% of banking institutions.167 
4.76.   During the review per iod, the CAR decreased from 26.2% (2011) to 22.59% (2017) 
(Table  4.3) due to high credit growth and the increase of risk weighted assets.168 According to the 
IMF, while still remaining above 20%, the solvency ratio of many banks, including large ones, may 
be vulnerable to higher loan losses should defaults unexpectedly increase. Furthermore, liquid 
assets relative to total assets or short -term liabilities appear to be low; during the period 2010 -15 
they amounted on average to 16.5% and 23.5%, respectively, th us rendering many banks 
vulnerable to liquidity risks.  
Table 4.3 Banking soundness indicatorsa, 2011 -17 
(%) 
 2011  2012  2013  2014  2015  2016  2017  
Capital adequacy ratio  26.23  25.00  24.23  20.41  21.04  22.3 22.59  
Tier 1 capital ratio  24.95  24.08  23.67  21.0 20.69  20.64  20.96  
                                                
162 DFDL online information. Viewed at: https://www.dfdl.com/resources/legal -and-tax-
updates/c ambodian -law-update -for-march -2017/ . 
163 NS/RKM/0607/014  Law on Amendment of Article 3, Article 29, and Article 30 of Law on Anti -Money 
Laundering and Combating the Financing of Terrorism, Viewed at: 
https://www.nbc.org.kh/cafiu/download/AML%20CFT%20AMENDMEND/Amendment_AML_Law_31_May%20_2
013_Eng.pdf .  
164 Online Media release Basel, Fighting money laundering remains weak in most countries accord ing to 
Basel AML Index 2016 , 27 July 2016. Viewed at: 
https://index.baselgovernance.org/sites/index/documents/Basel%20AML%20Index%202016_M edia%20Releas
e.pdf.  
165 IMF (2016), IMF Country Report No. 16/340 , Cambodia. Viewed at: 
http://www.imf.org/external/pubs/cat/longres.aspx?sk=44370.0 . 
166 BIS online information. Vie wed at: 
http://www.bis.org/bcbs/basel3/basel3_phase_in_arrangements.pdf .  
167 National Bank of Cambodia (2017), Annual Report 2016, March. Viewed at: 
https://www.nbc.org.kh/download_files/supervision/sup_an_rep_eng/Annual -2016-ENG.pdf . 
168 IMF (2016), IMF Country Report No. 16/340 , Cambodia. Viewed at: 
http://www.imf.org/external/pubs/cat/longres.aspx?sk=44370.0 . WT/TPR/S/364 • Cambodia  
 
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  Return on assets  1.76 1.72 2.40 2.87 3.39 1.8 2.35 
Liquid assets to total assets  16.16  15.37  17.93  16.21  16.61  19.33  19.87  
Non-performing loans to total gross loans  2.13 2.01 2.30 1.62 1.59 2.40 2.54 
External funding to total funding  .. .. .. .. .. .. .. 
.. Not available.  
a Includes commercial banks and specialized banks  
Source:  National Bank of Cambodia.  
4.77.   According to the OECD, in 2012, Cambodia witnessed high and rapid growth of credit to the 
private sector compared to its regional neighbours at the same stage of development; credit grew 
34.2%, up from 31.6% the previous year. However, since then, the banking sector's credit growth 
has moderated slightly, partly reflecting more modest econo mic activities and larger base of credit. 
Credit to the private sector decelerated to 20.5% by the end of 2016, compared to 23.2% in 2015. 
According to the IMF, during the review period, the NPL ratio remained largely sound; it decreased 
from 2.13 (2011) t o 1.59 (2015) (Table 4.3). While this ratio suggests robust asset quality, the 
lack of detailed guidance on the treatment of restructured loans could possibly underestimate the 
NPL ratio and overstate capital adequacy.169  
4.78.   High, albeit declining, interest sp reads between lending rates and the remuneration of 
deposits remain in place. Between January 2011 and end -December  2016, Cambodia's bank 
interest rate spread (difference between the average borrowing and lending rates in nominal 
terms) dropped from 21.3% to 15.8% (Chart 4.1) due to the increase in the number of banks 
which increased competition in the market. Changes in the spread are an indicator of profitability 
developments as the spread is where a bank makes its money.170 
4.79.   According to the Association of Banks in Cambodia, the country's banking sector remains 
hampered by a lack of financial depth, fragmentation, structural distortions such as an inadequate 
legal framework for secured transactions, and information asymmetry arising from poor disclosure 
standards.171 According to the World Bank's Doing Business Report 2014, Cambodia's only 
financial -sector reform was an improvement of access to credit information, the result of the 
establishment of the first private credit bureau.  
                                                
169 IMF (2016), IMF Country Report No. 16/340 , Cambodia. Viewed at: 
http:/ /www.imf.org/external/pubs/cat/longres.aspx?sk=44370.0 . 
170 Moneyterms online information.  Viewed at: http://moneyterms.co.uk/interest -spread/ . 
171 Bertelsmann Stiftung, BTI (2016),  Cambodia Country Report, Gütersloh . Viewed at:  https://www.bti -
project.org/fileadmin/files/BTI/Downloads/Reports/2016/pdf/BTI_2016_Cambodia.pd f. WT/TPR/S/364 • Cambodia  
 
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  Chart 4.1 Interest rate spread (%), January 2010 to December 2016  
0%5%10%15%20%25%
Jan-10
July-10
Jan-11
July-11
Jan-12
July-12
Jan-13
July-13
Jan-14
July-14
Jan-15
July-15
Jan-16
July-16Lending rate
Deposit rate
Interest spread
Source:     National Bank of Cambodia online information.Chart 4.1   Interest rate spread (%), January 2010 to December 2016
 
Source:  National Bank of Cambodia online information.   
Securities  
4.80.   Since 2011, the Cambodian Stock Exchange (CSX), a joint venture between the 
Government of Cambodia and Ko rea Exchange (KRX), has offered increased access to the equity 
capital markets in Cambodia. In accordance with the Joint -Venture Agreement, the CSX has been 
capitalized by both parties in which MEF owns 55% of the registered capital and KRX the remaining 
45%. In accordance with the Law on Issuance and Trading of Non -Government Securities, the CSX 
was granted approval to function as market operator, clearing and settlement facility operator and 
depository operator.172 As of 2017, four companies173 were listed in  CSX.  
4.81.   Since 2007, the Securities and Exchange Commission of Cambodia (SECC) has assisted the 
Government on the strategic and regulatory aspects of the securities market in Cambodia as well 
as on the licensing of all relevant securities -related operators, including the securities market 
operator, securities depository, clearance and settlement of facility operators, underwriters, 
dealers, brokers, investment advisors, securities representatives, investment advisory 
representatives, securities -specialized ac counting firms, cash settlement agents, securities 
registrars, securities transfer agents and paying agents.174  
4.82.   Since the establishment of the CSX, several regulations have been approved, whereas the 
main legislation governing the securities activities rema ined unchanged.175 Sub-decree by the MEF 
on Tax Incentives in Securities Sector, dated April 2011, determines the types, activities and other 
requirements of tax incentives in the securities sector.176 In January 2015, Cambodia issued a 
Sub-decree on tax incen tives in the securities exchange sector which determines activities and 
conditions to be considered as tax incentives in the securities exchange field. The same year, the 
Government issued a Prakas on the suspension of pre -payment of profit tax for 
                                                
172 DFDL (2016), Cambodia Investment Guide, Phnom Penh; CSX online informatio n. Viewed at: 
http://csx.com.kh/en/about/profile.jsp?MNCD=10301 .  
173 Companies include: Phnom Penh SEZ Plc. (PPSP), Phnom Penh Autonomous Port (PPAP), Grand 
Twins International (Cambodia) Plc  (GTI), and Phnom Penh Water Supply Authority (PWSA).  
174 DFDL (2016), Cambodia Investment Guide, Phnom Penh.  
175 Main regulation includes: the Law on the Issuance and Trading of Non -Government Securities, dated 
19 October 2007 (Securities Law) and its impleme nting Sub -decree No. 54, dated 8 April 2009 (Securities 
Sub-decree); implementing regulations issued by the SECC; and the Law on Government Securities, dated 
10 January 2007 (Government Securities Law).  
176 Regulations of Ministry of Economy and Finance prov ided by the authorities.  WT/TPR/S/364 • Cambodia  
 
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  compani es/enterprises eligible for tax incentives in the securities exchange sector, thus allowing 
temporary suspension of monthly pre -payments by these companies.177  
4.83.   Foreign investors have access to all investment products available to domestic investors. 
They re ceive national tax treatment in relation to operations in the financial and capital markets.178  
4.4.3.2   Insurance  
4.84.   During the review period, the contribution of insurance activities to GDP rose. Cambodia's 
insurance penetration rate is ASEAN's lowest; as of 2016, ov erall insurance coverage in Cambodia 
amounted to 0.62% of GDP (2016), compared to Malaysia's and Singapore's premiums which 
accounted for 5.1% and 5.8% of GDP, respectively.179 The sector remains small but gradually 
expanding, with total premium revenues of US$60 million in 2014.180 In 2016, the total gross 
premium increased by 40% to US$120  million compared to US$86 in 2015.181 The majority of 
premium volume comes from general insurance (59% of market share), followed by life insurance 
(36% of total premium) and  micro -insurance (5% of total premium); the share of health 
insurance, often offered by foreign -owned companies and those servicing foreign -owned 
corporates with operations in Cambodia, is minor.182  
4.85.   The insurance market remains characterized by high concent ration. Forte insurance, the 
largest insurance provider had a 47% market share in 2016, followed by Infinity General 
Insurance Plc with a 14% market share.183 As at June 2017, the insurance sector comprised 
eight general insurance companies, six life insuran ce companies including one state -owned 
company and one  reinsurance company, Cambodia Re.184 Additionally, three NGOs were licensed 
as Community -Based Health Insurance Implementer providers.185 Simultaneously, the MEF 
granted eight micro -insurance licences (see  below) including two in life activities and one in non -
life activities.186 
Policy and institutional setting  
4.86.   During the review period, Cambodia's insurance policy and institutional framework remained 
unchanged. An Insurance Strategic Plan 2011 –2020, which fo resees the establishment of an 
                                                
177 Regulations of Ministry of Economy and Finance provided by the authorities.  
178 WTO document GATS/SC/140 , 25 October 2005.  
179 Khmer Times,  "Record growth in insurance", 7 February 2017. Viewed at: 
http://www.khmertimeskh.com/news/35153// .  
180 World Bank (2016), Improving Macroeconomic and Financial Resilience. Cambodia Economic Update.  
April. Viewed at: http://documents.worldbank.org/curated/en/403961467989523939/pdf/104756 -REVISED -
PUBLIC -Final-CEU-April-2016-English.pdf .  
181 Khmer Times , "Record growth in insurance", 7 February 2017. Viewed at: 
http://www.khmertimeskh.com/news/35153// .  
182 World Bank (2016), Improving Macroeconomic and Financial Resilience. Cambodia Economic Update.  
April. Viewed at: http://documents.worldbank.org/curated/en/403961467989523939/pdf/104756 -REVISED -
PUBLIC -Final-CEU-April-2016-English.pdf . 
183 Khmer Times , "Record growth in insuran ce", 7 February 2017. Viewed at: 
http://www.khmertimeskh.com/news/35153// .  
184 The general insurance companies are: Asia Insurance, Cambodia -Viet Nam Insurance, Caminco 
Insurance, Campu Lonpac Insuran ce, Forte Insurance, Infinity Insurance, and People & Partner Insurance and 
Phillip Insurance. The life insurance companies are: Cambodia Life Insurance (state -owned), Manulife 
(Cambodia), Prudential (Cambodia), Sovannaphum Life (Cambodia), Bangkok Life (C ambodia) and AIA 
(Cambodia). Life Insurance Association of Cambodia online information. Viewed at: 
http://www.iac.org.kh/index.php# .  
185 Community -Based Health Insurance is a response to obstacles to the imple mentation of universal 
coverage. These NGOs consisted of: the Cambodian Centre for Study and Development in Agriculture (CEDAC), 
the Angkor Chum Operational District Cooperation Health Insurance (STSA), and the Cambodian Health 
Committee (CHC). World Bank (2016), Improving Macroeconomic and Financial Resilience. Cambodia Economic 
Update.  April. Viewed at: http://documents.wo rldbank.org/curated/en/403961467989523939/pdf/104756 -
REVISED -PUBLIC -Final-CEU-April-2016-English.pdf . 
186 These companies comprise: in the life sector, Prevoir (Kampuchea) Micro -Insurance Plc. (2011) and 
Milvik (Cambodia) Plc. (Bima) (2014); and in the non -life sector, Cambodian People Micro Insurance Plc. 
(2015). Law Business Research Ltd. (2015), The Insurance and Reinsurance Law Review. Viewed at: 
http://www.bun -associates.com/wp -content/uploads/2015/05/The -Insurance -And-Reinsurance -Law-
Review_3rd -edtion_2015.pdf . WT/TPR/S/364 • Cambodia  
 
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  independent insurance commission by 2020, is being implemented.187 The MEF remains in charge 
of issuing regulations and managing and controlling the conduct of insurance businesses . Its 
Insurance and Pension Department of the G eneral Department of Financial Industry remains the 
insurance regulator in Cambodia.188 The MEF manages an Insurance Industry Development Fund 
for promoting, supporting, and encouraging public interest in insurance.  
Regulatory framework  
4.87.   The main regulatory framework of the sector was considerably updated during the review 
period. The Law on Insurance (20 June 2000) and the Sub -decree on Insurance (22  October  2001) 
were replaced by a wide -ranging new Law on Insurance of 4 August 2014; its implementing sub -
decree was at drafting stage in June 2017. The 2014 Law incorporated changes related to better 
protection for policyholders, increased control for the regulatory body, dispute resolution and 
insurance companies liquidation and dissolution process, as well as a clearer regulation for 
insurance companies operating in Cambodia.189 It also introduced a compulsory Motor third -Party 
Liability Insurance (MTPL) and micro -insurance activities in Cambodia.190 Furthermore, the 2014 
Law increased sanctions related to illegal insurance activities; underwriting insurance without a 
licence may incur a fine ranging from 50 million riel  to 100  million riel, and recidivism is sanctioned 
at two times this rate, or with five years' imprisonment, or both. At the same time, it allowed f or a 
further sub -decree to provide exceptions for company licensing.  
4.88.   According to the World Bank, although the 2014 Law opened up new opportunities in the 
insurance sector, challenges such as the limited long -term investment instruments for insurers to 
manage their assets and liabilities, and the enhancement of risk -based supervisory practices, 
remain to be addressed.191 
Market access  
4.89.   Market access conditions remained unchanged during the review period. Insurance 
companies must be registered as a public limi ted company (Plc), the only business form available. 
The MEF requires the insurance company to be rated AA+.192 There are no FDI restrictions 
applying to the sector; local insurance companies may be owned 100% by foreign investors.193 A 
foreign insurer must ab ide by the regulations and establish a locally incorporated company 
meeting domestic requirements; a branch of a foreign insurer is not permitted. Insurance 
intermediaries or loss adjusters can be registered as a private limited company. Furthermore, any 
entity conducting insurance activities, except for reinsurance, must be licensed by the regulator, 
the MEF.194 Only licensed companies may underwrite insurance business.  
                                                
187 Law Business Research Ltd. (2015). The Insurance and Reinsurance Law Review. Viewed at: 
http://www.bun -associates.com/wp -content/uploads/2015/05/The -Insurance -And-Reinsurance -Law-
Review_3rd -edtion_2015.pdf . 
188 Insurance and Pension D epartment online information. Viewed at: 
http://gdfi.mef.gov.kh/insurance/about/index.php?id=2%20&id1=10&lng=en . 
189 Norton Rose Fulbright (2017), 2017: Insurance Regulati on in Asia Pacific . Viewed at: 
http://www.nortonrosefulbright.com/files/insurance -regulation -in-asia-pacific -113885.pdf .  
190 Micro -insurance is the prot ection of low -income people (those living on between approximately 
US$1  and US$4 per day against specific perils in exchange for regular premium payment proportionate to the 
likelihood and cost of the risks involved. World Bank (2016), Improving Macroecono mic and Financial 
Resilience. Cambodia Economic Update,  April. Viewed at: 
http://documents.worldbank.org/curated/en/40396 1467989523939/pdf/104756 -REVISED -PUBLIC -Final-CEU-
April-2016-English.pdf . 
191 World Bank (2016), Improving Macroeconomic and Financial Resilience. Cambodia Economic Update,  
April. Viewed at: http://documents.worldbank.org/curated/en/403961467989523939/pdf/104756 -REVISED -
PUBLIC -Final-CEU-April-2016-English.pdf .  
192 Law Business Research Ltd. (2015), The Insurance and Reinsuran ce Law Review. Viewed at: 
http://www.bun -associates.com/wp -content/uploads/2015/05/The -Insurance -And-Reinsurance -Law-
Review _3rd-edtion_2015.pdf . 
193 Norton Rose Fulbright (2017), 2017: Insurance Regulation in Asia Pacific . Viewed at: 
http://www.nortonrosefulbright.com/files/i nsurance -regulation -in-asia-pacific -113885.pdf .  
194 Law Business Research Ltd. (2015), The Insurance and Reinsurance Law Review. Viewed at: 
http://www.bun -associates.com/wp -content/uploads/2015/05/The -Insurance -And-Reinsurance -Law-
Review_3rd -edtion_2015.pdf . WT/TPR/S/364 • Cambodia  
 
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  Prudential regulations and capital requirements  
4.90.   The legislation provides for a minimum c apital of 5 million special drawing rights (SDRs) for 
general, life insurance or reinsurance companies.195 The minimum capital requirements for a 
micro -insurance company (life or non -life) constitute one -fourth of the amount of the underwritten 
premium with a minimum of 600 million riel; for insurance brokers – 200 million riel; for insurance 
agents and loss adjusters – 20 million riel.196 
Taxation  
4.91.   Insurance taxation remains an issue as it seemingly affects the development of insurance 
companies' activities. In surance companies are subject to a 5% profit tax on the gross premium. 
Although insurance companies are not subject to VAT, in practice, insurance intermediaries are 
required to charge VAT on their commissions.197 As the insurance company cannot claim a VAT 
deduction, the non -deductible VAT is included in the gross premium amount, and therefore also 
taxed at 5%. Furthermore, besides the 5% tax on gross premiums, insurance companies must pay 
a 0.5% contribution to the MEF Insurance Industry Development Fund (s ee above).  
Reinsurance  
4.92.   As of 2017, the state -owned Cambodia Re remained the only reinsurance company 
operating in the country. Under the ASEAN Framework Agreement on Services (AFAS), Cambodia 
has committed to liberalize the reinsurance business. Domestic i nsurers are allowed to reinsure 
their risks abroad. According to the 2014 Law, an insurance company must, as a pre -emptive 
right, reinsure at least 20% of the insurance risk at the minimum insurance premium rate defined 
by the MEF. Changes may be under way  as Article 63 of the 2017 draft sub -decree implementing 
the Law on Insurance (see above) stipulates that reinsurance must be offered to insurance 
companies operating in Cambodia before reinsurance is arranged overseas. Article 64 of the same 
draft sub -decree states that "all insurance contract with a total insured sum less than or equal to 
US$500,000 shall be reinsured with insurance companies in Cambodia, except for life insurance". 
Article 67 of the draft sub -decree requires that a compulsory cession of 20% on all non -life 
insurance contracts must be ceded to Cambodia Re. Reinsurance premiums paid abroad are not 
subject to the 14% withholding tax which is generally due for any payment abroad.198  
4.4.4   Communications  
4.4.4.1   Telecommunications  
4.93.   According to the authoritie s, the contribution of telecommunications to GDP stood at 5.5% 
(2014). Between 2011 and 2016, the number of mobile phone subscribers rose from 15.7 million 
to 20 million and the number of internet (mobile/fixed) users from 1.7 million to 8.1  million. On 
the other hand, the number of fixed (wireline/WLL) subscribers decreased from 559,381 to 
227,261. In June  2016, the penetration rate of mobile services was reduced to 127%, after 
reaching its peak of 139.35% in 2014. The fixed -line penetration rate also fell  from 3.81% in 2011 
to 1.45 in 2016 while the internet penetration rate attained four times its 2011 level. At the same 
time, fixed broadband penetration is increasing moderately from a very small base, 0.2% in 2012 
to 0.6% in 2016. It is predicted to reac h between 2.2% and 2.7% by 2021.199 Although it is not 
low per se  and catching up quickly, mobile telephony penetration in Cambodia is still the lowest in 
East Asia whose rates are actually quite high, likely inter alia  as a result of the later start and the  
preference of providers to concentrate on more heavily populated areas or people having or 
                                                
195 As of 21 April 2017, 1 SDR = US$1.36.  
196 Law Business Research Ltd. (2015), The Insurance and Reinsurance Law Review.  Viewed at: 
http://www.bun -associates.com/wp -content/uploads/2015/05/The -Insurance -And-Reinsurance -Law-
Review_3rd -edtion_20 15.pdf .  
197 Law Business Research Ltd. (2015), The Insurance and Reinsurance Law Review. Viewed at: 
http://www.bun -associat es.com/wp -content/uploads/2015/05/The -Insurance -And-Reinsurance -Law-
Review_3rd -edtion_2015.pdf .  
198 Law Business Research Ltd. (2015), The Insurance and Reinsurance Law Review. Viewed at: 
http://www.bun -associates.com/wp -content/uploads/2015/05/The -Insurance -And-Reinsurance -Law-
Review_3rd -edtion_2015.pdf .  
199 Budde online report/information. Viewed at: https://www.budde.com.au/Research/Cambodia -
Telecoms -Mobile -Broadband -and-Digital -Media -Statistics -and-Analyses . WT/TPR/S/364 • Cambodia  
 
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  needing to have more than one phone.200 Whereas nominal mobile telephony costs are reported to 
be among the lowest in the region, broadband internet prices are prohib itively high – up to US$40 
a month in some provinces. This is mostly due to the limited fixed -line infrastructure which inhibits 
the expansion of fixed broadband Internet services; according to ITU data, mobile broadband 
penetration stood at 50% as of 2016 , a good level for an LDC. To overcome this limitation, some 
operators have applied for wireless broadband licences, including for the provision of local 
fixed-lined telephony and broadband networks, "wireless local loop" networks. Deficiencies in the 
regulatory framework (see below) and licensing are reportedly limiting the expansion of this 
technology.201 In 2016, Cambodia ranked 125th out of 175 countries in the ICT Development 
Index, which is two positions higher than in 2015.202  
4.94.   As of 2016, the Cambodian telecoms market consisted of eight fixed -line operators 
(wireline/WLL), six mobile phone operators, and 36 Internet (mobile/fixed) operators. The major 
fixed phone/network operators were: 90% foreign -owned Metfone (with market share of 72.89%), 
the state -owned Telecom Cambodia (14.35%) under the control of the Ministry of Post and 
Telecommunications Cambodia (see below) and financial administration of the MEF, Camintel 
(10.84%), and CamGSM (1.02%). Mobile operators included Metfone (with market share of 
44.82%), Smart Axiata (40.21%), CamGSM (13.41%), CadComms (0.76%), CooTel (0.49%), and 
SEATel (0.32%). The majority of mobile operators are of foreign ownership, except CamGSM 
which is the only 100% Cambodian -owned and operated telecommunications company in t he 
country.  
4.95.   In principle, the telecoms market is open to any investor. There is no restriction on the 
number of operators by segment. However, the Ministry of Post and Telecommunications of 
Cambodia (MPTC) may refuse to grant telecoms licences due to limi ted resources such as radio 
frequency or other reasons upon proper study and consultation. Prakas contain the conditions and 
procedures for granting, amending, suspending, transferring and revoking the telecommunication 
permits, certificates and licences. Fixed -line providers are subject to limited competition, as the 
market is mostly controlled by Metfone. The mobile services market is more competitive, although 
some consolidation is under way.203 In 2013, operator Smart Mobile merged with the operator 
Hello (controlled by Malaysia's Axiata Group) to become Smart, the second -largest company in 
Cambodia's telecommunications market in terms of subscribers.204 In 2015, Cambodia mobile 
operator, Sotelco, entered into an agreement to transfer certain licences to Vie ttel Cambodia, 
operating as Metfone (controlled by the Vietnamese Viettel Group), and it ceased providing mobile 
services and terminated contracts with subscribers.205 In 2016, Viettel Group announced that it 
was considering selling part of its stake in Metf one, where Viettel holds 90%. At the same time, 
operators continue to expand their market share by increasing investments into new technologies. 
In August 2016, Smart Axiata announced plans to invest a further US$75 million during the rest of 
2016 as it co ntinues to expand its 4G LTE network nationwide.  In January 2016, Cambodian 
Kingtel, a subsidiary of KeyBridge International (Hong Kong) Investment, started offering 
                                                
200 World Bank (2014), Cambodia Services Tr ade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.banquemondiale.org/curated/fr/8067914680156 47474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf . 
201 World Bank (2014), Cambodia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.banquemondiale.org/curated/fr/806791468015647474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf . 
202 ITU (2016), ICT Development Index 2016 . Viewed at: http://www.itu.int/net4/ITU -D/idi/2016/ ; 
http://www.itu.int/net4/ITU -D/idi/2015/ .  
203 World Bank (2014), Cambodia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.banquemondiale.org/curated/fr/806791468015647474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf . 
203 World Bank (2014), Cambo dia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.banquemondiale.org/curated/f r/806791468015647474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf . 
204 TeleGeography online information. Viewed at: 
viettel/ https://www.telegeography.com/products/commsupdate/articles/2013/02/21/completion -of-hello-
merger-makes -smart -the-second -largest -cellco/ . 
205 TeleGeography online information. Viewed at: 
https://www.telegeo graphy.com/products/commsupdate/articles/2015/03/23/sotelco -agrees -to-transfer -
licences -customers -to-viettel/ . WT/TPR/S/364 • Cambodia  
 
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  commercial fibre -based internet access services in Phnom Penh and planned to launch voice 
telephony during early 2016. The same year, Huawei Technologies signed a MoU with Star Digital 
MUDS TV, a Cambodian telecoms and media consultancy firm. Huawei (China) agreed to provide 
telecoms equipment and services to Star Digital to support the impleme ntation of a 4G network. 
Additionally, Thailand's National Broadcasting and Telecommunications Commission (NBTC) plans 
to set up a standard registration platform for pre -paid mobile SIM cards across Cambodia.206  
Policy and institutional framework  
4.96.   Cambodia's  T-ICT Development policy 2020, which was introduced in April 2016, is aimed, 
inter alia,  at strengthening and widening T -ICT infrastructure connectivity, promoting human 
resource development, and diversifying ICT industrial development.207 The policy is fin anced by 
the Government, the private sector, development partners, dialogue partners, USF, Grant Aid, and 
other entities. Its T -ICT Action Plan includes: the provision of a trustworthy and clear regulatory 
framework; the elaboration of policies on broadban d, radio frequency spectrum, e -government 
(Section 2.2.2), and other related ICT policies and related legislation (e.g. e -commerce 
(Section  4.4.6.2), cyber -crime, digital signature); the development of T -ICT infrastructure; and 
enhancement of ICT literacy,  human resource development, and R&D.208 
4.97.   During the review period, the institutional framework governing the sector was changed. In 
2012, the Telecommunication Regulator of Cambodia (TRC), an autonomous and independent 
(from telecommunications stakeholders) public entity, was established. In 2016, the TRC's 
functions and structure were changed.209 The TRC's role, inter alia,  is to enforce regulations 
relating to the operation and provision of telecommunications network and services (e.g. licensing, 
interconnect ion, tariffs, and dispute settlement) in order to promote fair, efficient, and transparent 
competition. The Ministry of Post and Telecommunications of Cambodia (MPTC) is in charge of 
determining and overseeing the implementation of the national telecommuni cations and ICT 
policy, issuing regulations and international cooperation in this sector.210 The General Directorate 
of Posts and Telecoms and the General Directorate of ICT function as the implementing entities 
within the MPTC.211  
Regulatory, operational and  investment framework  
4.98.   The main regulatory framework was improved with a new Law on Telecommunications, 
published on 17 December  2015, that, inter alia,  determines the role of the MPTC and TRC, and 
provides the principles and basis for regulating licensing,  the frequency spectrum, the numbering 
plan, the IP and domain name, network and infrastructure, the universal service fund (see below), 
capacity building and R&D fund, telecom pricing and competition, and conflict resolution.212 The 
licensing regime was ref ormed from a single -service licence to a unified (multi -services) licence; 
                                                
206 Budde online report/information. Viewed at: https://www.budde.com.au/Research/Cambodia -
Telecoms -Mobile -Broadband -and-Digital -Media -Statistics -and-Analyses . 
207 MPTC (2016), T-ICT Development Policy 2020 , April.  
208 MPTC (2016), Action Plan for the Implementation of Telecomm unication and ICT Development Policy , 
August.  
209 Telecommunication Regulator of Cambodia online information. Viewed at: 
https://www.trc.gov.kh/en/ ; Royal Decree No. 1215/017, 17 December 2015; and Sub -decree No. 45 , 
16 March 2016 regarding the organization and operation of the Telecommunication Regulator of Cambodia.  
210 Presentation by Mr. Im Vutha, Director of Regulation and Dispute Unit, TRC, titled The Dispute 
Resolution at Telecommunication Market, Kingdom of Cam bodia.  Viewed at: https://www.itu.int/en/ITU -
D/Regional -Presence/AsiaPacific/D ocuments/Events/2015/Aug -
ITP/Presentations/Dispute%20Resolution%20in%20Cambodia%20Telecom%20Market.pdf . 
211 World Bank (2014), Cambodia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.banquemondiale.org/curated/fr/806791468015647474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf . 
212 According to a 2014 World Bank assessment, Cambodia's pa st regulatory framework in the 
telecommunications sector was reported to be opaque, inconsistent and non -transparent. World Bank (2014), 
Cambodia Services Trade: Performance and Regulatory Framework Assessment , July. Viewed at: 
http://documents.banquemondiale.org/curated/fr/806791468015647474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf . Presentation by Mr. Hang Khothara, Director of Telecoms Policy Department MPTC at the 
Workshop on Economic Aspects of Spectrum Management, 21 -23 November 2016, Tehran, Iran. Viewed at: 
http://www.itu.int/en/ITU -D/Regional -Presence/AsiaPacific/Documents/Events/2016/Nov -SM-
Economics/Presentations/Day%202%20 -%20Session%204%20%28Cambodia%29.pdf .  WT/TPR/S/364 • Cambodia  
 
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  telecommunication/ICT infrastructure sharing and efficient use of scarce resources are encouraged 
and promoted. Draft sub -decrees on the preparation, allocation and management of Ra dio 
Frequency Spectrum, on the mechanism for the implementation of the universal service fund, on 
the mechanism for the implementation of capacity building and research and development fund in 
the telecommunications and ICT sector, on digital signature, an d on licensing of ICT operations 
have been prepared, and were to be issued in July 2017. A draft Sub -decree on Numbering Fee 
and on License Fee and Prakas on MPTC/TRC's Provision of Public Services and on Competition are 
to be issued in 2017. Draft cybercr ime and e -commerce laws (Section 4.4.6.2) are under 
preparation. Similarly, work on some strategic plans such as a Digital Skill Strategic Plan, an 
Industrial Technology Plan, and an SME Technology Strategic Plan is under way.  
4.99.   Telecommunications operators are required to share their revenues with the MPTC in the 
form of a licence fee, in addition to the payment of taxes in accordance with the provisions of the 
Taxation Law; the revenue collected is transferred to the national budget.213 The percentage of 
revenue from mobile and fixed phone services to be "shared" increases incrementally; it is 4% for 
the first five years, 7% for the next five years, and 10% for more than 10 years. Licensees that 
have some fixed -network capability or carry international traffic  (International Telecommunication 
Gateway (ITG)) may also be required to share up to 51% of their gross revenue with the MPTC; it 
seems that three older licensees using the ITG are required to pay this higher revenue share. The 
exact percentages of revenue  to be shared by operators with the MPTC vary on a case -by-case 
basis and are determined by type of operation and infrastructure to be constructed. There are 
currently three licences for ITG; however, many operators use VoIP instead of ITG for their 
intern ational traffic because the revenue sharing for VoIP is 2% for the first five years, 4% for the 
next five  years, and 6% for more than 10 years. Under MPTC Prakas No. 122 of 7 April 2017, 
conditions and procedures for granting, amending, suspending, transfe rring and revoking the 
telecommunication permits, certificates and licences are set; the new revenue sharing, commonly 
known as the License Fee, and related fees will be determined by the new Sub -decree to be issued 
in the course of 2017.  
4.100.   Foreign equity p articipation under GATS commitments is subject to a requirement for local 
shareholding of up to 49% in certain telecommunications services (Section 2.4); the authorities 
indicated that in practice this does not apply as no domestic regulation sets such a r equirement.214  
Number portability  
4.101.   No regulation on number portability exists at present. However, the 2015 
Telecommunication Law envisages the issue of a regulation on the national numbering plan, which 
will promote the efficient use of such resource, but d ue to technical constraints there has been no 
progress so far.  
Tariffs  
4.102.   As the telecommunications sector remains price regulated to prevent predatory pricing and 
safeguard fair and free competition, the operators must not set service tariffs lower than the  cost 
base as stipulated under item (c) of Article  56 of the 2015 Law. The current cost -based model 
used is the ITU's Long Run Average Incremental Cost. The minimum interconnection price has not 
been defined yet; a new Prakas on Interconnection is to be pr epared.215 Access to the emergency 
services must be provided free of charge. Operators are obliged to publish the telecommunications 
service tariffs including the amended or varied tariffs. All agreements for granting monopolistic 
rights to telecommunication s operators and the provision of subsidies in any form and means, 
                                                
213 DFDL (2016), Cambodia Investment Guide , Phnom Penh.  
214 Voice telephone services (CPC 7521), Packet -switched data transmission services (CPC 7523**), 
Circuit -switched data transmission services (CPC 7523**), Telex services (CPC7523**), Telegraph service 
(7522), Facsimile services (CPC 7521**+752 9**), Private leased circuit services (CPC 7522**+7523**). WTO 
document GATS/SC/140, 25 October 2005.  
215 Inter-ministerial Prakas No. 232 of 7 December 2009 between the MPTC and MEF set the minimum 
prices for telecom services and interconnection; however,  in December  2013 this minimum price scheme was 
suspended and a cost -based pricing is being used until the new Prakas is issued. The Cambodia Daily , "Council 
of Ministers Nullifies Telecom Law", 23 December 2013. Viewed at: 
https://www.cambodiadaily.com/archives/council -of-ministers -nullifies -telecom -law-49573/ .  WT/TPR/S/364 • Cambodia  
 
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  except for those permitted by regulations based on the assessment and evaluation of TRC and 
approved by MTPC, are prohibited under the 2015 legislation.216  
Universal service obligations  
4.103.   No un iversal service obligation (USO) scheme has been put into place so far, although 
initiatives are being taken in this area. Under the 2015 Law, the USO programme will encourage, 
inter alia, the construction and development of telecommunications networks, an d the provision of 
basic telecommunications services, value added services and emergency services more broadly in 
rural and remote areas, thus reducing the digital divide to advance social and economic 
development. The programme, which is aimed at 70% cove rage in rural  areas and 100% in cities 
by 202 0, is to be supported by a Universal Service Obligation Fund, financed by domestic or 
overseas financial resources. Telecommunications operators and other stakeholders of the sector 
are to contribute 2% of their  gross revenue to the fund annually. According to the draft 
Sub-decree to be issued in July 2017 (see above) on the mechanism for the USO implementation, 
a seven -member board led by the Minister of MPTC is to set the policy in this area and oversee the 
implementation of the programme. A Secretariat led by the Director General of the Directorate 
General of Posts and Telecommunications of MPTC is to assist the board in implementing the 
programme.  
4.4.4.2   Audiovisual and broadcasting services  
4.104.   The sector is vibrant and  largely unregulated, therefore allowing for numerous radio, 
television and media outlets. As of 2017, Cambodia had: 2 state AM radio stations; 21 state FM 
radio stations; 247 private radio stations, including 9 foreign stations; 29 TV stations, including 
9 state TV stations; 1 satellite TV station (cooperation between public and private company); and 
5 digital  pay TV stations, including 3 joint ventures with TV stations (including the joint venture 
between Cambodia's Royal Group of Companies and Russia's G eneral Satellite). Since 2009, the 
film industry has grown by 26% attracting overseas film companies and directors to shoot in 
Cambodia.217 According to the 2014 World Bank study, the country's 3D  animation studios suggest 
that Cambodia has the ability to at tract investments capable of producing niche high -value 
services exports.218  
4.105.   Similar to other countries, since 2011, a policy has been in place aimed at developing the 
media system to suit the current advancement of technology and to further cooperation wit h 
neighbouring countries to exchange experiences in the information sector and build technical skills. 
The Ministry of Information (MoI) determines, inter alia , the national radio and TV broadcasting 
policy and regulation, as well as international cooperat ion with other States in this area.219 The 
MoI, in cooperation with the MPTC, allocates frequency spectrum for broadcasting, and may 
intervene in the content of broadcasting whenever required;  the control of content is under the 
MoI.220 The 2003 Law on Copyrig ht and Related Rights (Copyright Law) continues, inter alia,  to 
ensure the rights of broadcasting organizations and ensure a fair and legitimate exploitation of 
cultural products, in particular with regard to the equality between Khmer and foreign culture 
(Section 3.3.7).221 To safeguard, maintain, and promote Khmer culture and to support the local 
movie industry, the MoI bans the broadcasting of foreign dramas from 19:00 to 21:00. 
Furthermore, whenever the local industry improves, the MoI plans to restrict t he broadcasting of 
                                                
216 The Law on Telecommunications (2015), information provided by the authorities.  
217 Online info rmation. Viewed at: 
https://www.revolvy.com/main/index.php?s=Media%20of%20Cambodia . 
218 World Bank (2014), Cambodia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.banquemondiale.org/curated/fr/806791468015647474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf . 
219 Presentation by Mr. Im Vutha, Director of Regulation and Dispute Unit, TRC, titled The Dispute 
Resolution at Telecommunication Market, Kingdom of Cambodia. Viewed at: https://www.itu.int/en/ITU -
D/Regional -Presence/AsiaPacific/Documents/Events/2015/Aug -
ITP/Presentations/Dispute%20Resolution%20in%20Cambodia%20Telecom%20Market.pdf . 
220 ITU (2015), Cambodia country profile . Viewed at: 
https://www.google.ch/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjhyYD
no7_TAhWDwBQKHciOA7AQFggiMAA&url=https%3A%2F%2Fwww.itu.int%2Fnet4%2Fitu -
d%2Ficteye%2FCountr yProfileReport.aspx%3FcountryID%3D48&usg=AFQjCNFhDj8vVERtB3FcWei739IGX5VCl
Q. 
221 DFDL (2016), Cambodia Investment Guide, Phnom Penh.  WT/TPR/S/364 • Cambodia  
 
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  foreign movies to not more than 20% of the total movie broadcasting programs; at the same time, 
all commercial advertisements are to be produced locally so as to support the local industry and 
artists. Cambodia does not prohibit foreign firms from distributing foreign films and videotapes.   
4.4.5   Transport  
4.106.   During the review period, the contribution of transportation remained an important 
component of trade in services (Section 4.4.1). Under the NSDP 2014 -2018, the transport policy 
is, inter al ia, aimed at: construction of roads (target of 300 km -400 km of roads per year); repair 
and maintenance of the transport system; better enforcement of the 2007 Law on Road Traffic to 
increase traffic safety; designing and implementing the Master Plan for T ransport Infrastructure 
Development; preparation of policies and legal framework for infrastructure development (Law on 
Ports, Law on Roads); and promotion of public -private partnerships (PPP) in transportation 
infrastructure.222  
4.107.   No changes were made to the  institutional framework governing transport.223 The Ministry 
of Public Works and Transportation (MPWT) remains in charge of developing the legal and 
regulatory framework; formulating regulations for developing roads, ports, and railways; 
participating in an d coordinating laws and regulations; undertaking other construction activities; 
and cooperation with the State Secretariat of Civil Aviation (SSCA) for airport construction works 
(Section 4.4.5.2). The SSCA remains responsible for managing and developing t he country's civil 
aviation sector.  
4.108.   According to the IMF, despite Cambodia's central location in ASEAN, its transportation 
system suffers from inefficient infrastructure, poor logistics performance, and high transportation 
costs. According to an ADB asses sment, changing to a multimodal urbanized transport system in 
Cambodia is essential in order to lower transport costs and attract competition in services.224 The 
relative lack of rail services, limited inland waterway services, and limited docking facilities  –
especially for container ships – all contribute to high transportation costs in the country. Cambodia  
has higher logistics costs relative to its peers, e.g. Viet Nam and Thailand.225 According to the 
World Bank's Logistics Performance Index 2016, Cambodia ranked 99th in the quality of trade and 
transport related infrastructure, 52nd in the ease of arranging competitively priced shipments, 
89th in competence and quality of logistics services, and 73rd out of 160 countries in the frequency 
with which shipment s reach the consignee within the expected delivery time and behind other 
peers in South Asia, e.g. Viet Nam and Thailand.226 Frequent informal payments due to the lack of 
regulatory clarity in the transport sector also contribute to raising costs of transpor tation around 
the country.227 Government initiatives to address these issues include the promotion of private and 
foreign investment in infrastructure development projects and looking for options to reduce 
transport costs. As of April 2015, Cambodia received  US$407.25 million of active lending, grants, 
and technical assistance from the ADB for the development of its transport sector.228  
4.4.5.1   Shipping  
4.109.   Cambodia's national flag merchant fleet capacity decreased from 2.8  million deadweight 
tonnes (dwt) (836 vessels) in  2011 to 1.9  million dwt (677 vessels) in 2016. Notwithstanding this 
                                                
222 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  
223 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  
224 ADB (2011), Cambodia Transport Sector Assessment, Strategy and Road Map , September. Viewed 
at: https://www.adb.org/sites/default/files/institutional -document/33102/files/cam -transport -assessment.pdf .  
225 IMF (2015), 2015 Article IV Consultation – Press Release; Staff Report; and Statement by the 
Executive Director  of Cambodia , November. Viewed at: 
https://www.imf.org/external/pubs/ft/scr/2015/cr15307.pdf . 
226 World Bank (2016), Connecting to compete. Trade Logistics in the Global Economy . Viewe d at: 
https://wb -lpi-media.s3.amazonaws.com/LPI_Report_2016.pdf .  
227 World Bank (2014), Cambodia Services Trade: Performance and Regulatory Framework Assessment , 
July. Viewed at: 
http://documents.banquemondiale.org/curated/fr/806791468015647474/pdf/912430WP0P12570mbodia0Servi
ce0Trade.pdf . 
228 IMF (2015), 2015 Arti cle IV Consultation – Press Release; Staff Report; and Statement by the 
Executive Director of Cambodia , November. Viewed at: 
https://www.imf.org/external/pubs/ft/scr/2015/cr15307.pdf .  WT/TPR/S/364 • Cambodia  
 
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  development, as at 2016, it remained the largest fleet among Asian LDCs and consisted, in 
dwt terms, mainly of general cargo (77.6%), oil tankers (3.9%), bulk carriers (9.8%) and 
containe r ships (1.8%), reflecting the structure of Cambodia's merchandise exports.229  
Policy and institutional framework  
4.110.   Under the NSDP 2014 -2018, Cambodia's shipping policy priorities, inter alia , consist of: 
issuing regulations in a number of areas; enforcing la ws, provisions and rules of maritime 
transport agreements; completing the electronic marine navigational chart and the multi -purpose 
terminal at Preah Sihanouk Port; enhancing the promotion of Preah Sihanouk Port SEZ and 
fulfilling all rents; and providing  user-friendly services for vessels.230 The Department of Merchant 
Marine of the MPWT remains in charge of administrative affairs related to merchant shipping, and 
regional and international maritime cooperation.231  
Regulatory and operational framework  
4.111.   The re gulatory environment remains unchanged. The 1999 Merchant Shipping Act 
continues to regulate maritime services.232 
4.112.   Cambodia provides neither subsidies nor investment incentives for the sector. All transport 
services provided by waterways fall under the Negat ive L ist of the 2005 Sub -decree 
N111ANK/BK.233 The 2003 partnership between the Government and a private Korean company, 
ISROC, on the registration of national and international vessels was terminated in 2015; the 
Cambodian flag registry currently falls unde r the responsibility of the MPWT.234 In the context of 
the NSDP 2009 -2013, the Government issued 36 vessels ID Cards, 67 business patents and 
195 certificates; it also conducted technical inspections (for renewal and extension) for 
147 vessels.235 
4.113.   No requireme nts for a share of foreign merchandise trade to be transported by national 
flag vessels are in place. According to the authorities, no regulation on cabotage is in place and 
cabotage is allowed and open to all vessels. However, cabotage is not permitted un der the Cross 
Border Navigation Agreement between Cambodia and Viet Nam (amended in 2009), which governs 
the supply of cross border shipping services along the Mekong River between the two countries. 
The agreement mutually recognizes the authority of the o ther contracting party to issue the 
needed operating permits to carriers without any limitations in number.236  
4.114.   Cambodia is a member of the International Maritime Organization, but ratification of most 
of its conventions remains pending.237  
                                                
229 UNCTAD online Maritime Profile data. Viewed at: 
http://unctadstat.unctad.org/wds/TableViewer/tableView.aspx .  
230 Areas for regulatory action include: the Cambodian Maritime Cod e; Prakas on port entry permit given 
to foreign vessels to call ports in Cambodia; Sub -decree on establishing national system for response and 
cooperation in case of oil -spill at sea; and Sub -decree on crew book and certificate of competency. Ministry of 
Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: http://cdc -
crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  
231 MPWT online information. Viewed at: 
https://www.mpwt.gov.kh/directorates/transport.html?lang=en .  
232 Cartner et al., The International Law of the Shipmaster , London.  
233 DFDL (2016), Cambodia Investment Guide, Phnom Penh.   
234 Until 2002, the Cambodian Shipping Corporation (CSC), based in Singapore, was in charge of 
registering vessels under the national flag . ISROC online information. Viewed at: 
http://www.fl agadmin.com/regulations -cambodia -en.html ; The Cambodia Daily,  "Government Sold National 
Ship Registry Rights", November 2013. Viewed at: https://www.cambodiadaily.com/archives/government -
sold%E2%80%88national -ship-registry -rights -48186/ ; Cartner et al., The International Law of the Shipmaster , 
London.  
235 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewe d at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf . 
236 World Bank (2014), Cambodia Trade Corridor Performance Assessment . Viewed at: 
http://documents.worldbank.org/curated/en/398791468326402518/pdf/912420WP0P12570rformance0Assess
ment.pdf . 
237 IMO (2017) online information. Viewed at: 
http://www.imo.org/en/About/Conventions/StatusOfConventions/Documents/Status%20 -%202017.pdf .  WT/TPR/S/364 • Cambodia  
 
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  Port services  
4.115.   Cambodia continues to be mainly served by two ports: one river port in Phnom Penh and a 
seaport in Sihanoukville, the main trade gateway for seaborne cargo entering or leaving Cambodia 
handling about three -quarters of all trade traffic by volume.238 Cargo passin g through 
Sihanoukville is transhipped through Singapore or Hong Kong, China; direct vessel calls serving 
Cambodian ports have been in place since 2016 only.239 The port caters mainly to feeder ships 
from Singapore; it also handles oil tankers and general ca rgo vessels from Malaysia, Thailand, and 
other countries in the region.240 Maritime ports at Koh Kong near the Thai border and in Kampot 
province cater mainly for interisland cargo and only take smaller vessels due to their lack of 
modern equipment and limit ed berth lengths. As of 2013, the length of Cambodia's inland 
waterways was about 1,750 km, of which only 850 km are navigable in the dry season.241 
Cambodia still has a relatively small international freight market with no major bulk commodity 
flows, unlike  some of its neighbours; the number of containers handled by the two main ports is 
low by regional standards and a single entity, the entirely state -owned Kampuchea Shipping 
Agency and Brokers (KAMSAB), provides multi -modal (air, land, and sea) shipping ag ency, cruise, 
passenger and logistics services .242 In 2016, Cambodia's  UNCTAD liner shipping connectivity index 
stood at 5.61, as compared to China which had the highest score at 167.48, and Viet  Nam and 
Thailand with 62.84 and 44.32, respectively.243  
4.116.   During the review period, priority action in the ports area, inter alia,  involved: developing 
the waterway works; conducting a water depth survey in upper -stream and lower -stream Mekong 
River; inviting the private sector to develop river ports; completing the hyd rographic survey in the 
Mekong up to Kampong Cham; installing navigation aids; continuing to revise the sub -decree on 
river navigation, and continuing the preparation of a master plan on inland waterways.244  
4.117.   Cambodia's two main ports are state -owned but aut onomously operated by the Port 
Autonomous Sihanoukville (PAS) and Phnom Penh Autonomous Port (PPAP) trusts.245 The PAS and 
PPAP report to the Council of Ministers, MEF and MPWT. Port charges are considered to be 
unusually high.246 Stevedoring charges for conta iner loading and unloading may differ as far as 
handling and crane lifting of empty containers is concerned; for example, as of 2016, whereas the 
                                                
238 World Bank (2014), Cambodia Trade Corridor Performance Assessment . Viewed at: 
http://documents.worldbank.org/curated/en/398791468326402518/pdf/912420WP0P12570rformance0Assess
ment.pdf . 
239 Sihanoukville does not hand le large vessels due, inter alia,  to the limited depth of the entrance 
channel to the harbour and the rocky outcroppings in the channel limiting entry to vessels of a maximum draft 
of 8.5 m. World Bank (2014), Cambodia Trade Corridor Performance Assessment . Viewed at: 
http://documents.worldbank.org/curated/en/398791468326402518/pdf/912420WP0P12570rformance0Assess
ment.pdf . 
240 ADB (2014), Cambodia diversifying beyond garments and tourism. Country diagnostic study.  
November. Viewed at: https://www.adb.org/sites/default/f iles/publication/149852/cambodia -diversifying -
country -diagnostic -study.pdf . 
241 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf . 
242 ADB (2014), Cambodia diversifying beyond garments and tourism. Country diagnostic study.  
November. Viewed at: https://www.adb.org/sites/default/files/publication/149852/cambodia -diversifying -
country -diagnostic -study.pdf .  
243 UNCTAD (2016) online information. Viewed at: 
http://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=92 .  
244 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf . 
245 World Bank (2014), Cambodia Trade Corridor Performance Assessment . Viewed at: 
http://documents.worldbank.org/curated/en/398791468326402518/pdf/912420WP0P12570rformance0Assess
ment.pdf .  
246 According to data supplied by the authorities, as of 2016, the main Phnom Penh Port navigation 
charges and dues for tourist vessels amou nted to US$0.13 per GRT (for each entry/departure) and the 
berthage charge to 0.0005US$ -US$0.003 per GRT per hour. For commercial vessels they were as follows: 
navigation charge at US$0.13 per GRT (for each entry/departure); berthage charge from US$0.05 to  US$0.23 
per GRT; channel dues at US$0.31 per GRT for commercial and US$0.16 per GRT for lighter carriers; pilotage 
charge from US$0.003 per GRT (for commercial sea port) to US$0.03 (for refinery port);tug assistance from 
US$18 to US$215 per hour depending  on vessel type; and mooring/unmooring charges (US$16.50 -US$149 
depending on GRT of the vessel). World Bank (2014), Cambodia Trade Corridor Performance Assessment. 
Viewed at: 
http://documents.worldbank.org/curated/en/398791468326402518/pdf/912420WP0P12570rformance0Assess
ment.pdf . WT/TPR/S/364 • Cambodia  
 
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  handling for discharging an empty 20  feet container is set at zero , loading the same empty type of 
container c osts US$20.  
4.118.   Although port infrastructure has expanded, inefficiencies in operations and customs 
procedures remain and result in high transaction costs and longer port handling times.247 
According to the World Bank's Doing Business Report, in Cambodia in 2015 , exporting a standard 
container of goods requires 8 documents, takes 22 days and costs US$795. Importing the same 
container of goods requires 9 documents, takes 24 days and costs US$930.248 Additionally, the 
MPWT faces challenges, inter alia , a lack of skil led human resources, the high price of services, 
and a lack of modern technologies.249 
4.4.5.2   Air transportation  
Air transportation services  
4.119.   The aviation sector continued to expand and support rising levels of tourism 
(Section  4.4.7) through a new airport terminal  recently opened in Phnom Penh (see below), an 
increased number of domestic certified airlines connecting Phnom Penh to Siem Reap, and newly 
certified international airlines connecting Cambodia to key transport hubs in the region.250 Between 
2011 and 2015, t he international air transport frequency increased by 65.2%, from 339  to 
560 flights per week, whereas the domestic routes frequency rose by 131.4%, from 35 to 
81 flights per week.251 As of 2016, total international air cargo stood at 45,655 tonnes, an incre ase 
of 25% compared to 2015; most air cargo consisted of garment, textile and luxury products. As of 
2016, both domestic and international air cargo carried 79,884.2 tonnes, a 9% increase compared 
to 2015. As of 2017, 30 Asian and European airlines service d the international passenger market, 
and another 10 (previously 4) airlines with minimal state -ownership covered domestic routes; 
37 domestic and foreign companies were authorized to fly in and out of Cambodia compared to 
18 in 2011.252 The average domestic  air passenger fares are estimated at around US$90 whereas 
international fares are around US$295.  
4.120.   Policy priorities in air transport, inter alia,  involve the strengthening of: international 
cooperation in the civil aviation sector (i.e. integrating into an d harmonizing with ASEAN, the 
Greater Mekong Sub Region  and CLMV Open Sky policies (see below)); flight security and safety; 
and air navigation and aerodrome services.253 The State Secretariat of Civil Aviation (SSCA), under 
the Office of the Council of Mini sters (OCM) (previously under MPWT), remains in charge of 
implementing aviation policies. It, inter alia,  is the administrator and regulator of civil aviation as 
well as the operator of several domestic airports (except the Phnom Penh and Siem Reap 
Interna tional Airports, Sihanoukville International Airport and new upcoming concessions of 
International Airports, see below).  
4.121.   The main regulatory framework governing the sector, the 2008 Law on Civil Aviation, 
remains unchanged; its amendment to meet the needs of strengthening flight security and safety, 
and minimize the impact of air transport services on climate change, has been under consideration 
                                                
247 ADB (2014), Cambodia diversifying beyond garments and tourism. Country diagnostic study.  
November. Viewed at : https://www.adb.org/sites/default/files/publication/149852/cambodia -diversifying -
country -diagnostic -study.pdf . 
248 World Bank (201 5), Doing Business 2015, Going beyond efficiency, Economy profile 2015, Cambodia . 
Viewed at: 
http://documents.worldbank.org/curated/en/1 38041468215083934/pdf/919280WP0Box380580Cambodia00Pu
blic0.pdf . 
249 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/ cdc/documents/NSDP_2014 -2018.pdf .  
250 DFDL (2016), Cambodia Investment Guide, Phnom Penh.  
251 Data provided by the authorities, Air Transport Services.  
252 The domestic airlines comprise: Cambodia Angkor Air (45% state -owned, 55% by Viet Nam Airlines), 
Sky Ang kor Airlines (100% privately -owned), Bassaka Air (privately -owned), Bayon Air (fully foreign owned), 
Apsara International Air and JC International Airline. Cambodia Angkor Air, Sky Angkor Airlines, Basaka 
Airlines, Cambodia Bayon Air, JC International Airl ines, Lamei Int. Airlines, and Air Siem Reap also serve 
international routes. Data provided by the authorities and TravelDaily Asia , "A new Chinese -backed Cambodian 
airline is set to launch next month",  January 2017. Viewed at: 
http://www.traveldailymedia.com/246108/cambodias -new-airline -prepares -to-launch/ . 
253 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  WT/TPR/S/364 • Cambodia  
 
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  since 2011 but no progress has been made so far.254 In June 2016, a law on the implementation of 
the fifth freedom of the air, a commercial aviation right that grants airlines the right of using 
Cambodian airports to pick -up passengers on scheduled flights between their home country and 
another country, was passed; this development is expected to bring more traffic and  attract more 
airlines.255 
4.122.   An Airport Slot Committee follows IATA slot allocation, fees and charges principles. No 
price or fare regulation is in place. Cambodia has considered imposing a specific tax (ST) of 2% on 
domestic and international air tickets.256  
4.123.   No limitations are imposed on foreigners owning and operating in the sector.257 Cabotage 
is allowed.  
4.124.   Cambodia continued to pursue greater insertion of its aviation into international markets to 
improve its connectivity, through the conclusion of air services agreements (ASAs). Cambodia 
maintains 43 bilateral ASAs, the CLMV (Cambodia, Lao PDR, Myanmar, Viet Nam) plurilateral 
agreement, and a set of ASEAN Multilateral Agreements and Related Protocols (see below).258 
During the review period, 10 ASAs (China, Japan,  the Democratic People's Republic of  Korea, the 
Philippines, Qatar, Russian Federation, Seychelles, Turkey, United Arab Emirates, and 
New Zealand), and 14 MoUs to renegotiate or initiate new ASAs were signed (Table A4.1). Several 
of Cambodia's bilateral ai r service agreements contain capacity (e.g. Indonesia; Singapore; 
Malaysia; Macao,  China; and Mongolia) limitations. In May 2016, Cambodia and Thailand agreed to 
lift bilateral flight and seat limits to promote tourism and investment, and ensure fair compe tition 
in the market.259 Most ASAs score between 4 and 16 (out of a possible maximum of 50) on the 
2011 Air Liberalization Index (ALI) of the WTO, although the agreement concluded with 
New Zealand in 2015 attains an ALI score of 32.260 This is largely a reflec tion of the absence of any 
fifth freedom rights until 2016 (see above) and seventh  freedom rights as well as the widespread 
reliance on pre -determination of capacity. Lack of detailed information about some of the features 
used for the calculation of the A LI is another explanatory factor, given that no points are awarded 
in such instances. CLMV, the plurilateral air services agreement, scores instead a tentative ALI 
score of 28, in light of the many liberal features it contains.261  
4.125.   In the pursuit of a single  market and production base in air transport, Cambodia ratified 
the 2007 Sixth Package of Commitments on Air Transport Services under the ASEAN Framework 
Agreement on Services (Air Freight Forwarding Services) in July 2013.262 In 2015, it ratified the 
ASEAN Open Skies Policy (or ASEAN Single Aviation Market (ASEAN -SAM)), which entered into 
force in 2015, and is intended to increase regional air transport connectivity, integrate production 
                                                
254 Online information. Viewed at: http://www.civilaviation.gov.kh/images/pdf/in -
force/Law_civil_aviation -2014_en_.pdf ; DFDL (2016), Cambodia Investment Guide, Phnom Penh; and Ministry 
of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: http://cdc -
crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  
255 Without a fifth freedom protocol, foreign commercial airlines arriving at Phnom Penh airport were 
usually required to return to their point of origin. Now they are free to carry on to other destinations. The 
Phnom Penh Post , "Fifth freedom to open Kingdom's airspace", 1 July 2016. Viewed at: 
http://www.phnom penhpost.com/business/fifth -freedom -open-kingdoms -airspace .  
256 DFDL (2016), Cambodia Investment Guide, Phnom Penh; and International Business Publications 
(2016), Cambodia doing business, investing in Cambodia Guide,  Volume 1. Viewed at: 
https://books.google.ch/books?id=u1jvCwAAQBAJ&pg=PA54&lpg=PA54&dq=specific+tax+air+ticket+cambodi
a&source=bl&ots=3B4dJadPTj&sig=P628o1ZNIrW7AYmT8BCKg2X7V0A&hl=de&sa=X&ved=0ahUKEwiSieKhi7P
TAhVNJ1AKHeMiCqcQ6AEINDAD#v=onepage&q=specific%2 0tax%20air%20ticket%20cambodia&f=false .  
257 WTO document GATS/SC/140, 25 October 2005.  
258 ASAs in this context refer to Air Services Agreements, Memoranda of Understanding, Exchange of 
Notes and other such relevant instruments. ASEAN Multilateral Agreements  and Related Protocols consist of the 
ASEAN Multilateral Agreement on the Full Liberalisation of Air Freight Services, ASEAN Multilateral Agreement 
on Air Services, ASEAN Multilateral Agreement on the Full Liberalisation of Passenger Air Services, and the 
MOU on the Association of Southeast Asian Nations' Air Services Engagement with Dialogue Partners.  
259 The Phnom Penh Post , "Thailand drops quotas on flights to Cambodia", 8 September 2016. Viewed 
at: http://www.phnompenhpost.com/business/thailand -drops -quotas -flights -cambodia . 
260 WTO online data. Viewed at: https://www.wto.org/asap/index.html . 
261 More information on t he CLMV agreement is available in WTO document S/C/W/270/Add.2, 
28 September 2007.  
262 Data provided by the authorities.  WT/TPR/S/364 • Cambodia  
 
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  networks and enhance regional trade by allowing all regional air carrie rs to fly freely between 
ASEAN member States.263  
Airport and auxiliary services  
4.126.   During the review period, the capacity of Cambodia's international airports increased 
significantly. Between 2011 and 2016, the n umber of passengers at the Phnom Penh Internatio nal 
Airport (PPIA) and the Siem Reap International Airport (SRIA) rose by 52.6% from 3.48 million to 
6.62 million; the Preah Sihanouk International Airport (PSIA) transported an additional 
156,887  passengers  in 2016.264 As of January 2017, cargo import and e xport volume in 
Phnom  Penh Cargo Terminal had grown by 30.2% compared to January 2016, and accounted for 
4,016 TEU ( twenty -foot equivalent unit ) whereas that of the Siem Reap International Airport 
slightly decreased by 5.9%, compared to 2016.265 As of 2017, international airports served flights, 
inter alia, to China; France; Hong Kong, China; Republic of Korea; Lao PDR; Malaysia; Myanmar; 
the Philippines; Qatar; Singapore; Chinese Taipei; Thailand; and Viet Nam.266 As of 2017, 
43 (32 in 2016) airlines operated regular flights to/from Cambodia's international airports. The 
network of freighter operators has increased.  
4.127.   Upgrading infrastructure remains critical for improving international competitiveness. 
International airports continue to be privately run, upgrad ed and expanded.267 The Société 
Concessionnaire des Aéroports (SCA), a private consortium of Vinci (70%, France) and Muhibbah 
Masteron Cambodia (30%, Malaysian -Cambodian joint venture), remains the owner of the 
three  international airports under 40 -year build–operate –transfer  (BOT) concessions started in the 
years 1995 (PPIA), 2001 (SRIA), and 2006 (PSIA).268 Cambodia Airport Management Services Ltd. 
(CAMS), which since 2005 is entirely owned by SCA, operates these three airports. In 2016, 
US$100 million was in vested at PPIA and SRIA to provide each airport with a new international 
terminal that would double their passenger handling capacity (five million passengers). The PSIA 
has a self -funded US$200 million investment programme to build a new terminal and boar ding 
area from 2016 to 2025.269 At present, the construction project for a new airport in Siem Reap, 
called Angkor International Airport Investment (Cambodia) Co. Ltd,  by an investors group from 
China is under consideration; a plan to invest US$880 million f or the entire project (greenfield) 
under a 55 -year BOT (2016 -2071) concession is being processed.  
4.128.   Cambodian domestic airports are under SSCA management except for Kampong Chhnang 
Airport which is used and managed by the military.270 As of September 2016, fo ur domestic 
airports were given to local government authorities for state or public interest (i.e. non -airport) 
                                                
263 Online information. Viewed at: http://www.aseanbriefing.com/news/2015/01/02/asean -open-skies-
policy -implemented -2015.html ; OECD (2014), Structural Policy Country Notes  – Cambodia.  Viewed at: 
https://www.oecd.org/site/seao/Cam bodia.pdf . 
264 In addition, until September 2016, there were eight domestic airports, whereas, by 2018, the 
Government was planning to have five international and seven domestic (Battambang, Rattanakiri, Preah 
Vihear Airports, Koh Kong, Stung Treng, Mondulk iri, and Kampong Chhnang) airports. ICAO (2016) online 
information. Viewed at: 
http://www.icao.int/safety/pbn/PBNStatePlans/Information%20paper%20on%20Cambodia,%20Lao%20PDR%
20and%20Vietnam%20PBN%20plans%20Sep.%2012.pdf#search=Cambodia%20domestic%20airports ; 
Ministry of Planning (2014), National Strategic Develop ment Plan 2014 -2018, 17 July. Viewed at: http://cdc -
crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf ; data provided by the authorities, Situation of PAX by AIR.  
265 Cambodia Airports online information. Viewed at: http://www.rep.aero/en/our -business/about -
cambodia -airports/news/cambodia -airports -monthly -newsletter -jan-2017#anchor .  
266 CDC, CIB and CSEZB online information. Viewed at: 
http://www.cambodiainvestment.gov.kh/investors -information/infrastructure/ aviation.html ; Cambodia Airports 
online information. Viewed at: http://www.cambodia -airports.aero/en/flight -info/arrivals#anchor .  
267 The upgrading of airports, terminals , air traffic and navigation services through BOT concessions 
resulted in the higher rating of Cambodia's airport infrastructure in the Global Competitiveness Report 
2016-2017 (in contrast to its peers, the Philippines and Viet Nam). Cambodia ranked 99th in the quality of air 
transport infrastructure, while the Philippines – 116th and Viet Nam – 94th. WEF (2016), World Competitiveness 
report 2016 -2017. Viewed at: http://www3.weforum.org/docs/GCR2016 -
2017/05FullReport/TheGlobalCompetitivenessReport2016 -2017_FINAL.pdf .  
268 CDC, CIB and CSEZB online information. Viewed at: http://www.cambodiainvestment.gov.kh/sub -
decree -no-11-on-build-operate -transfer -bot-contract_980213.html .  
269 Cambodia Airports online information. Viewed at: http://www.vinci -airports.com/en/cambodia -
airports . 
270 CDC, CIB and CSEZB online information. Viewed at: 
http://www.cambodiainvestment. gov.kh/investors -information/infrastructure/aviation.html .  WT/TPR/S/364 • Cambodia  
 
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  use, and the remaining four (Kampong Chhnang, Battambang, Koh Kong, and Stung Treng) were 
maintained for expanding domestic flights in the futur e.271 Ground handling services are under the 
monopoly of the airport operators of Phnom Penh and Siem Reap which are privately run. No 
self-handling is permitted.  
4.4.5.3   Railways  
4.129.   Railway transport continues to be of limited availability and performance.272 The railw ay 
network, originally consisting of the Northern Line (NL) from Phnom Penh to Poipet (386 km) and 
the Southern Line (SL) from Phnom Penh to Sihanoukville (266 km), remains subject to 
rehabilitation and upgrade (see below).273 Freight trains continue on both  lines transporting mostly 
petroleum, cement and containers. The travel time between Phnom Penh and Sihanoukville is 
7-10 hours, compared with 4 -5 hours by road.274  
4.130.   A 2009 concession agreement for 30 years with Toll Royal Cambodia, a joint venture 
between R oyal Railways of Cambodia (45%) and a private Australian company ("Toll holding", 
55%), no longer remains in place as in 2015 the latter withdrew entirely from ownership; the 
agreement included purchases of train engines, carriages and wagons, new equipmen t and 
facilities for railway maintenance.275  
4.131.   Under the NSDP 2014 -2018, the MPWT aims, inter alia, at: completing the rehabilitation of 
the NL between Phnom Penh and Poipet to connect to Thailand; completing the rail freight 
terminals at Phnom Penh and Preah  Sihanouk; upgrading the NL to take 20 tonnes of freight at a 
maximum speed of 50 km per hour and the SL to carry 15 tonnes of freight; ensuring efficient 
railway operations under the concessions contract; and encouraging the expansion of railway 
construct ion, including a new railway link from Phnom Penh to Viet Nam.276 Significant portions 
have already been rehabilitated and opened for operation. As of 2016, the 264 km route 
connecting Phnom Penh and Sihanoukville was reopened for passenger trains.277 The reha bilitation 
work also includes two branch lines: from Phnom Penh station to the Green Trade Company (GTC, 
(Section 4.1.3)) Warehouse complex and Sihanoukville container terminal to the Sihanoukville 
port. A Greater Mekong Sub region (GMS) cross -border rail facility and rail and road freight 
terminal is to be built at Poipet.278 Rail traffic is expected to grow by 7% -12% per year until 2030, 
                                                
271 Khmer Times , "Domestic Airports converted for public use", September 2016.Viewed at: 
http://www .khmertimeskh.com/news/30210/domestic -airports -converted -for-public -use/.  
272 World Bank (2014), Cambodia Trade Corridor Performance Assessment. Viewed at: 
http://documents.worldbank.org/curated/en/398791468326402518/pdf/912420WP0P12570rformance0Assess
ment.pdf .  
273 ADB (2011), Cambodia Transport Sector Assessment, Strategy and Road Map , September. Viewed 
at: https://www.adb.org/sites/default/files/institutional -document/33102/files/cam -transport -assessment.pdf . 
274 ADB (2014), Cambodia diversifying beyond garments and touris m. Country diagnostic study.  
November. Viewed at: https://www.adb.org/sites/default/files/publication/149852/cambodia -diversifying -
country -diagnostic -study.pdf . 
275 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf ; ADB (2014), Cambodia diversifying beyond 
garments and tourism. Country diagnostic study,  November. Viewed at: 
https://www.adb.org /sites/default/files/publication/149852/cambodia -diversifying -country -diagnostic -
study.pdf ; CDC, CIB, and CSEZB online information. Viewed at: 
http://ww w.cambodiainvestment.gov.kh/investors -information/infrastructure/railways.html .  
276 During the 2009 -2013, the total cost of for the rehabilitation of railway constituted US$141.6 million, 
of which US$84 million was an ADB loan, US$21.5 million a grant from  the Australian Government, 
US$13  million donated by OPEC Fund for International Development, US$2.8 million in the form of railway 
tracks supplied by the Malaysian Government, and US$20.3 million in a contribution from the Government of 
Cambodia. Ministry  of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf ; ADB (2011), Cambodia Transport Sector 
Assessment, Strategy and Road Map , September. Viewed at: 
https://www.adb.org/sites/default/files/institutional -document/33102/files/cam -transport -assessment.pdf . 
277 The Guardian , "Cambodia revives train service between Phnom Penh and Sihanoukville", 
5 June 2016. Viewed at: https://www.theguar dian.com/travel/2016/jun/05/trains -phnom -penh-sihanoukville -
kampot .  
278 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.g ov.kh/cdc/documents/NSDP_2014 -2018.pdf ; ADB (2014), Cambodia diversifying beyond 
garments and tourism, Country diagnostic study,  November 2014. Viewed at: 
https://www.adb.org/sites/default/files/publication/149852/cambodia -diversifying -country -diagnostic -
study.pdf . WT/TPR/S/364 • Cambodia  
 
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  with a projected increase in locomotives from the current 11 to 30.279 Railways are also expected 
to reduce the load on the  road network.  
4.4.6   Distribution and e -commerce  
4.4.6.1   Distribution  
4.132.   Distribution services (wholesale and retail trade) contributed to gross value added by 9.4% 
of GDP in 2016 (9.2% in 2011) (Table  1.2). Cambodia's distribution sector is undergoing rapid 
transformati on.280 In addition to stalls and shops at traditional markets, goods are increasingly 
sold at small -scale Western -style shopping malls, convenience stores, and supermarkets that cater 
mostly to social elites, the urban middle class, and expatriates.281 Foreign  investment in modern 
shopping malls include Aeon Mall, a Japanese venture that opened in mid -2014, as well as projects 
such as the Parkson Mall (a Malaysian project), the Lion Centre shopping malls, and 
Hong Kong Land's Exchange Square plus another Aeon M all that are now under way. The total 
number of retail malls is expected to increase from 10 to 27 by 2019.282  
4.133.   Distribution services remain governed, inter alia,  by the Law on Commercial Rules and 
Commercial Register (1995), the Law on the Amendment of the Law on Commercial Rules and 
Commercial Register (1999) and sector - and area -specific laws that were not subject to changes 
during the review period.283  
4.134.   Foreign commercial presence in distribution is unlimited.284 Local and foreign firms are 
required to regist er with the MoC at least 15 days prior to the commencement of business 
activities to obtain a business licence.285 Registration at MoC can be done via an online platform. 
Additional operating licences can be required.  
4.4.6.2   E-commerce  
4.135.   E-commerce remains relativel y undeveloped in Cambodia due to inadequate internet 
infrastructure, low levels of internet use, and extremely limited credit card use.286 There is a 
growing number of online shopping websites that cater mostly to the small number of urban 
consumers with acc ess to the internet; social media is increasingly used as an online shopping 
tool. Cambodia ranks 119th (out of 137  countries) on UNCTAD's B2C (business to consumer) 
E-commerce Index (2016), a drop from the 91st position in 2014.287  
4.136.   Cambodia's 2016 T -ICT De velopment Policy 2020 is aimed, inter alia,  at accelerating 
e-commerce, fostering an understanding of the benefits and risks of e -commerce usage for people, 
                                                
279 ADB (2011), Cambodia Transport Sector Assessment, Strategy and Road Map , September. Viewed 
at: https://www.adb.org/sites/default/files/institutional -document/33102/files/cam -transport -assessment.pdf . 
280 US Commercial Service/Department of Commerce (2015) , Doing Business in Cambodia: 2015 
Country Commercial Guide for U.S. Companies . Viewed at: 
http://photos.state.gov/libraries/cambodia/231771/PDFs/2015_ccg_june_15.pd f. 
281 US Commercial Service/Department of Commerce (2015), Doing Business in Cambodia: 2015 
Country Commercial Guide for U.S. Companies . Viewed at: 
http://photos.sta te.gov/libraries/cambodia/231771/PDFs/2015_ccg_june_15.pdf ; World Bank (2014), 
Improving Trade Competitiveness in Cambodia: An Analysis Using a Trade and Transport Facilitation 
Assessment , August. Viewed at:  
http://documents.worldbank.org/curated/en/915181468222889947/pdf/912410WP0P12570ilitation0Assessme
nt.pdf .  
282 Export.gov online information. Viewed at: https://www.export.gov/article?id=Cambodia -Distribution -
and-Sales -Channels .  
283 DFDL (2016), Cambodia Investment Guide, Phnom Penh.  
284 WTO document GATS/SC/140, 25 October 2005.  
285 WTO document WT/TP R/S/253/Rev.1, 24 November 2011.  
286 Some local banks have begun to issue credit cards in order to facilitate purchases made through the 
internet. US Commercial Service/Department of Commerce (2015), Doing Business in Cambodia: 2015 Country 
Commercial Guide for U.S. Companies . Viewed at: 
http://photos.state.gov/libraries/cambodia/231771/PDFs/2015_ccg_june_15.pdf .  
287 The index is based on four indicators: internet users ; secure servers; credit card penetration; and 
postal reliability score. UNCTAD (2016), UNCTAD B2C E -commerce Index 2016 , UNCTAD Technical Notes on 
ICT for Development No. 7, April. Viewed at 
http://unctad.org/en/PublicationsLibrary/tn_unctad_ict4d07_en.pdf . WT/TPR/S/364 • Cambodia  
 
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  developing e -money transaction usage with confidence and safety, improving quality and an 
efficient  logistics system in e -commerce and enhancing cooperation between concerned 
Ministries/Institutions in the organization of taxation on e -commerce. As of June 2017, a draft Law 
on E-Commerce was being reviewed by the Council of Ministers prior to being sent  to the National 
Assembly; it is expected to be passed by 2019.288 The draft law consisted of 11  chapters and 
58 articles, including provisions relating to online signature in line with international standards on 
e-business operations and reducing the risk o f online payment transactions as well as personal 
information protection, and online consumer protection.  
4.137.   No e -commerce -specific tax regime and/or customs clearance measures affect 
merchandise imports and/or domestic sales (e.g. customs duties and internal  taxes exemption, 
speedy customs clearance). Under MEF Instruction No. 004 MEF on customs procedure for De 
Minimis export -import of goods in small quantity management, of 24 July 2012 (compliant with 
Instruction No. 007 MEF of 29 December 2009), goods unde r express consignment, 
non-commercial import, and/or similar forms with a f.o.b. value not exceeding US$50 are exempt 
from duties and taxes.  
4.4.7   Tourism  
4.138.   Tourism remains Cambodia's largest single activity and source of government revenue as 
well as a cross -industry backbone that is interlinked and a stimulus to almost all other activities of 
the economy, e.g. transport, construction, trade and financial services. In 2016, it contributed 
12.2% to GDP (28.3% including related activities) and 11.4% to total emplo yment (25.9% 
including direct, indirect and induced jobs), ranking the highest in Southeast Asia and well above 
the world average.289 Internal tourism consumption amounted to 16,943 billion riel  and is 
estimated to reach 35,024 billion riel by 2027.290 As at A pril 2017, the main source markets 
included China (21.3%), followed by Viet Nam (16.7%), and Lao PDR (8%); other significant 
source markets were Thailand, Korea (Rep. of), the United States, the United Kingdom, Japan, 
Malaysia, and France.291 In 2015, intern ational visitor arrivals in Cambodia rose to 4.78 million, a 
6% increase compared to 2014; i n 2016, there were 5 million tourist arrivals, a 5% increase 
compared to 2015 .292 International tourist  arrivals are expected to increase to 7 million by 2020. 
During  the period 2010 -15, the average length of stay decreased from 6.8 days to 6.5 days due, 
inter alia,  to lack of sufficient infrastructure and promotion. Cambodia ranked 101st out of 
136 economies on the WEF Travel and Tourism Competitiveness Index 2017, in  particular its 
tourist sector infrastructure was ranked 102nd.293 In 2016, tourism was set to bounce back boosted 
by improving stability in neighbouring countries.294 Following Cambodia's official confirmation as a 
host for the 32nd Southeast Asian Games  (SEA), a biennial event to be held in 2023, an official 
master plan was approved by the Council of Ministers in 2016; its organizational cost is estimated 
                                                
288 MoC (2016) online information. Viewed at: http://www.moc.gov.kh/en -us/press -
center/details /content/211601 ; DFDL (2016), Cambodia Investment Guide, Phnom Penh.  
289 World Travel & Tourism Council (2017), Travel & Tourism, Economic impact 2017 Cambodia . Viewed 
at: https://www.wttc.org/ -/media/files/reports/economic -impact -research/countries -2017/cambodia2017.pdf . 
290 Internal tourism consumption is the total revenue generated within a country by industries that deal 
directly with tourist s including visitor exports, domestic spending and government individual spending. This 
does not include spending abroad by residents.  
291 Ministry of Tourism (2017), Tourism Statistics Report April 2017 ; ADB (2017). Tourism sector 
assessment, strategy, and  road map for Cambodia, Lao People's Democratic Republic, Myanmar, and Viet Nam 
(2016 –2018) . Viewed at:  https://www.adb.org/sites/defaul t/files/institutional -document/227186/clmv -
tourism -sector -assessment.pdf .  
292 ADB (2017). Tourism sector assessment, strategy, and road map for Cambodia, Lao People's 
Democratic Republic, Myanmar, and Viet Nam (2016 –2018). Viewed at: 
https://www.adb.org/sites/default/files/institutional -document/227186/clmv -tourism -sector -assessment.pdf .  
293 The index incorporates such indicators as busine ss environment, safety & security, health & hygiene, 
human resources & labour markets, ICT readiness, prioritization of travel & tourism, international openness, 
price competitiveness, environmental sustainability, air transport infrastructure, ground and port infrastructure, 
tourist service infrastructure, natural resources, cultural resources and business travel. WEF(2017), The Travel 
& Tourism Competitiveness Report 2017 , Geneva. Viewed at: 
http://www3.weforum.org/docs/WEF_TTCR_2017_web_0401.pdf .  
294 DFDL (2016), Cambodia Investment Guide, Phnom Penh.  WT/TPR/S/364 • Cambodia  
 
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  at US$40 million with additional costs in logistics, human resources, transport and other strategic 
areas , including the development of tourism infrastructure.295  
4.139.   During the review period, the number of hotels in Cambodia increased from 476 (with 
26,484 rooms in 2011) to 668 (34,619 rooms in 2015), and guesthouses rose from 1,142 (with 
16,752 rooms) to 2,229 ( with 28,660 rooms).296 As of 30 April 2017, Cambodia had 573 hotels 
(36,236 rooms), of which 41% were domestically owned and 59% were of foreign ownership . 
Accommodation choices range from small family -owned enterprises to five -star internationally 
branded p roperties. As of 2015, Cambodia had 632 travel agencies and tour operators (589 travel 
agencies and tour operators in 2011) employing 4,858 licensed guides, 89% of whom were based 
in Siem Reap; a s of 25 May 2017, there were 665 travel agencies and tour ope rators .  
4.140.   During the review period, several tourism -related policies were in place and continued to 
be implemented by the Ministry of Tourism (MoT). Cambodia's Tourism Strategic Development 
Plan 2012 -2020 is focused on six strategic directions, inter alia,  involving: tourism product 
development and product quality improvement; marketing and promotion; travel facilitation and 
transportation, and regional and international connectivity; tourism safety system and 
management of tourism's negative impact; legal s ystems and management mechanisms; and 
human resources development.297 Since 2012, Cambodia has implemented a National Eco -Tourism 
Strategic Policy.298 To address the growing impact of tourism on climate change, the National 
Committee on Climate Change elaborat ed for the MoT a US$2.9 million Climate Change Action Plan 
in the Tourism Sector (as part of the Climate Change Strategic Plan 2014 -2023), which has been 
implemented since 2013 and is, inter alia,  aimed at: reducing vulnerability to climate change; 
promoti ng a green development path by using low -carbon technologies; and promoting public 
awareness and participation.299 No information on the measures and the related budgetary outlays 
for implementing the plans discussed in this paragraph was available from the authorities.  
4.141.   The regulatory framework and requirements related to tourism -sector activities remain 
unchanged and require general and sector -specific licences and approvals from the MoT. The 2007 
Law on Concession specifies the tourism -related activities (i ncluding small -scale investment) that 
are ineligible for incentives.300 To reduce barriers for the private sector, in August 2016 (Notice 
No. 292) the MoT launched a new online registration system for tourism -related businesses and 
tour guides subject to lic ensing.301  
4.142.   Under Cambodia's GATS commitments, the sector remains open, except for a restriction 
for mode 3.302 Cambodia continues to reserve the opportunity for nationals with a small amount of 
capital to find partners to build 1 - or 2-star accommodation or g uest houses; however, in practice, 
so far the limitation has been applied in a more liberal manner than the scheduled commitment. 
Foreign companies may establish a commercial presence to operate hotels, restaurants, and tour 
operator services, provided tha t they register with the MoC. Permits for restaurant services are 
granted by taking into account location -related criteria; according to the authorities, they apply 
                                                
295 Khmer Times , "Cambodia Confirmed as 2023 SEA Games Hosts",  June 2015 . Viewed at: 
http://www.khmertimeskh.com/news/11960/cambodia -confirmed -as-2023-sea-games -hosts/ ; Phnom Penh 
Post, "Government unveils master plan for 2023 SEA Games success", April 2016 . Viewed at: 
http://www.phnompenhpost.com/sport/government -unveils -master -plan-2023-se-asian-games -success . 
296 Ministry of Tourism (2015), Annual Report 2015.  
297 Ministry of Tourism (201 2), Tourism Development Strategic Plan 2012 -2020, July. 
298 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/docu ments/NSDP_2014 -2018.pdf .  
299 Ministry of Tourism (2015), Climate Change Action Plan in Tourism Sector .  
300 The investment activities ineligible for incentives encompass: tourism service providers; tourism 
agents; tourism information and tourism advertiseme nt; training and educational institutes that provide 
training for skills development, technology or polytechnology, that serve the industrial, agricultural, tourism, 
infrastructural,  environmental, engineering, and scientific sectors, and other services, with investment capital 
of less than US$4 million; hotels below three -star grade; tourism complex centres with hotels containing fewer 
than 100 rooms or tourist inns of fewer than thi rty housing units and resorts of multiple services with a size of 
less than ten hectares; natural tourism and the creation of natural tourism sites with a size of less than 
1,000  hectares with investment capital of less than US$1 million; and resort comple xes, including hotels, 
theme parks, sports facilities or zoos with a size of less than fifty hectares. DFDL (2016), Cambodia Investment 
Guide, Phnom Penh.  
301 DFDL (2016), Cambodia Investment Guide, Phnom Penh.  
302 More information on these commitments is ava ilable in WTO document WT/TPR/S/253/Rev.1, 
24 November 2011.  WT/TPR/S/364 • Cambodia  
 
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  equally to domestic and foreign investors.303 Cambodia maintains a limitation on foreign equi ty 
participation of up to 51% on travel agency ownership; tourist guides must be of Cambodian 
nationality.304  
4.143.   According to the OECD and the World Bank, the sector's main challenges are the lack of 
tourism -specific infrastructure and diversification of touri st locations.305 The development of 
destinations other than the Angkor Wat temple in Siem Reap, such as for example tropical beaches 
and colonial and historical buildings, would further expand the range of tourism activities and 
reduce the sector's dependenc e on attractions in Thailand's better developed sector. Additionally, 
the tourism sector is reported to have relatively weak linkages with some economic activities; in 
2012, 25% of revenue from tourism in Cambodia was leached out of the economy by imported  
foreign products purchased precisely to serve the tourism sector.  
4.4.8   Professional services  
4.144.   To conduct professional services activities in Cambodia, a foreign national is required to 
obtain an E -Project or E -Investment and Employment visa for one month or mo re that is renewed 
indefinitely on an annual basis; additionally foreigners must apply for a work permit to work in 
Cambodia.306 According to the Ministry of Labour and Vocational Training (MLVT) data, between 
2013 and end -2016, work permits and employment c ards were delivered to 95,577  foreign 
workers. No data were available from the authorities on the share of professional services by 
category to GDP/gross value added, employment, and trade in services, as well as foreign 
professionals' participation (numbe r (by nationality)) in each activity. Investment activities in all 
professional services are ineligible for incentives.307  
4.4.8.1   Accounting, consulting and tax services  
4.145.   A number of foreign firms provide accounting, consulting and tax services in Cambodia. No 
data on domestic and foreign accountants, or accounting/audit firms operating in Cambodia were 
available from the authorities.  
4.146.   The main legal framework of the activity remains unchanged. It comprises the 2002 Law 
on Corporate Accounts, Their Audit and The Acc ounting Profession which is to be amended to 
introduce simplified accounting standards for SMEs, and the Code of Ethics of Cambodian 
Accountants.308  
4.147.   The profession remains regulated by the National Accounting Council (NAC), under the 
MEF, which inter alia,  issues and updates Cambodian Accounting Standards, standards on auditing, 
and technical rules and regulations to implement the above standards. The Cambodian Institute of 
Certified Public Accountants (CPA Cambodia), a not -for-profit organization under the auspices of 
the MEF, sets, inter alia,  conditions and qualifications to become a Cambodian Accountant; 
develops, updates and promulgates the code of ethics for Cambodian Accountants; and monitors 
and evaluates compliance with the code of ethics.309  
                                                
303 The main criteria are: the number of and impact on existing restaurants, historical and artistic 
characteristics of the location, geographic spread, impact on traffic conditions and creation of  new 
employment.  
304 WTO document GATS/SC/140, 25 October 2005.  
305 World Bank (2016), Economic update. Enhancing Export Competitiveness. The Key to Cambodia's 
Future Economic Success , October. Viewed at: 
http://documents.worldbank.org/curated/en/889161476278536498/pdf/108982 -Khmer -PUBLIC -
FinalCEUOctoberKhmer.pdf . 
306 KPMG online information. Viewed at: 
https://home.kpmg.com/xx/en/home/insights/2015/10/cambodia.html .  
307 DFDL (2016), Cambodia Investment Guide, Phnom Penh.  
308 Royal Government of Cambodia (2015), Cambodia Industrial Development Policy 2015 -2025. 
“Market Orientation and Enabling Environment for Industrial Development ”, 6 March 2015. Viewed at: 
http://www.cambodiainvestment.gov.kh/content/uploads /2015/09/IDP -English -Version -FINAL1.pdf .  
309 Law on Accounting and Auditing. Viewed at: 
http://sithi.org/admin/upload/law/2012_ 01_13_Draft%20law_Draft%20law%20on%20Accounting%20and%20
Auditing_(ENG).pdf ; and National Accounting Council online information. Viewed at: 
http://www. naccambodia.gov.kh/?page=detail&menu1=215&menu2=459&ctype=article&id=459&lg=en .  WT/TPR/S/364 • Cambodia  
 
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  4.148.   A profes sional can be called a "Cambodian Accountant" only upon becoming a CPA 
member. To practice as a professional accountant or auditor, a professional licence is required 
from the NAC: a licence for accounting services or a licence for auditing services. All t he 
conditions, legislative measures and procedures for providing licences are determined by the 
NAC.310 No information on requirements for a foreigner to become an accountant in Cambodia or 
validation of foreign diplomas/certificates in this area was availab le from the authorities.  
4.4.8.2   Legal services  
4.149.   As of September 2016, 1,139 lawyers were members of the Bar Association of the 
Kingdom of Cambodia ( BAKC), but only 1,045 lawyers practice their legal profession in the 
country. According to the authorities, n o official foreign lawyers or foreign law firms have practiced 
Cambodian law yet (see below). However, there are 36 foreign lawyers operating at the 
Extraordinary Chambers in the Courts of Cambodia (ECCC) for the prosecution of crimes 
committed during the period  of Democratic Kampuchea, i.e. the Khmer Rouge trial.  
4.150.   During the review period, the main legal framework governing legal services changed 
relatively little and comprises the Law on the Bar (1995), the Code of Ethics for lawyers (1995, 
amended in 2012) and  the Internal Rule of the Bar (1995). In addition to these main texts, there 
are many decisions of the BAKC. Only lawyers who are registered with the BAKC can practice in 
Cambodia. Articles 5 and 6 of the Law on the Bar allow foreign lawyers to practice in  Cambodia 
subject to their registration with the BAKC. Decision No. 004/BAKC/16 on the Management of 
Practice of Legal Profession of Foreign Lawyers, issued on 8 January 2016, sets the requirements 
and procedure for the registration and practice of foreign  lawyers in Cambodia. As of 9 September 
2016, seven applications had been submitted to the BAKC but only three were being processed as 
the submission of documents was incomplete for the rest; the process is to be finalized in the 
course of 2017 and based o n the decision of BAKC, the three applications would be approved by 
50% plus one vote of the Bar Council Members.  Cambodia's GATS commitments on legal services 
permit foreign law firms to provide legal services with regard to Cambodian law in association w ith 
Cambodian law firms.  
4.4.8.3   Architectural and engineering services  
4.151.   As of June 2017, there were: 574 domestic and 9 foreign engineers registered with the 
Board of Engineers; 5 domestic and 4 ASEAN -origin architects registered with the Board of 
Architects of C ambodia; and 2,536 Registered Engineers, 543 Professional Engineers, 53 ASEAN 
Charted Professional Engineers, and 450 ASEAN Associate Engineers registered with the Board of 
Engineers under the MLVT. Furthermore, there were 1,354 domestic and 574 foreign co nstruction 
companies as well as 62 domestic and 27 foreign design companies. There were 28 domestic and 
2 foreign physical architectural designers as well as 35 domestic physical structural designers. 
There were 131 companies registered with the Cambodia C onstructors Association (CCA).  
4.152.   Despite the lack of a regulatory framework per se  in architectural services, the legal 
framework governing architectural services comprises the Royal Decree on the Establishment of 
the Board of Architects of Cambodia, the Su b-decree on the Organization and Functioning of the 
General Secretariat of the Board of Architects of Cambodia, Prakas on the Organization and 
Functioning of the Divisions subordinating to the General Secretariat of the Board of Architects of 
Cambodia, Int ernal Rules of the Board of Architects Cambodia, the Decision on the Architects' 
Code of Ethics, the Decision on the Registration Criteria and the Determination of Contribution of 
the Board of Architects of Cambodia, and the Decision on the Procedures for Registration with the 
Board of Architects of Cambodia.  
4.153.   Since 2011, the Board of Architects of Cambodia (BAC) has represented registered civil 
engineers and architects to, inter alia,  enhance their qualifications, work, and the prestige of 
national archite cture. Foreign architects are required to register with the BAC, retain a diploma or 
degree in this area, be accredited by the embassy or consulate of the country of issue and reside 
in Cambodia for at least 3 months. The validity of the certificate of for eign architect is up to 
2 years and it must be renewed at least 30 days prior to its expiry date. Since 2016, BAC has been 
                                                
310 Law on Accounting and Auditing. Viewed at: 
http://sithi.org/admin/upload/law/2012_01_13_Draft%20law_Draft%20law%20on%20Accounting%20and%20
Auditing_(ENG).pdf . WT/TPR/S/364 • Cambodia  
 
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  a member of the ASEAN Engineering and Architects Advisory Group. Since 2016, the CCA has been 
a member of the ASEAN Constructors Fede ration.311 
4.4.8.4   Educational services  
4.154.   In the period 2016 -2017, there were 46,149 (56% female) teachers at primary public 
schools, 41,407 (30.59% female) teachers at public secondary schools, 9,320 lecturers at higher 
education level with a master's degree, and 1,0 16 with a PhD, including 176 foreign lecturers with 
a bachelor's degree, 335 foreign lecturers with a master's degree and 75 with a PhD.312  
4.155.   The legal framework, based on the 2007 Education Law313 and the 2007 Sub -decree on 
Ethics Code for the Teaching Profess ion, in core remained unchanged. Several sub -decrees and 
prakas were implemented, including the 2014 Sub -decree on the Administration and Management 
of Teaching Services in Public Primary Education Institutions314 aimed at administrating teaching 
services to  ensure sustainability and efficiency.315  
4.156.   The Ministry of Education, Youth and Sport (MoEYS), which is in charge of leading, 
managing and developing the education sector, issues licences to natural persons or legal entities 
allowing them to operate educatio nal activities in accordance with the law. In the academic year 
2014-15, 47 private education establishments applied for licences through MoEYS' single -window 
mechanism.316 Under the Public Investment Programmes for 2017 -2019 financed, inter alia,  by the 
World Bank, the MoEYS formulated 27 projects of a total amount of US$208.5 million, of which 
21 are ongoing and 6 (newly requested) are being negotiated.317 
4.4.8.5   Health -related services  
4.157.   The health market has a wide variety of health -care providers.318 Qualified provid ers 
include public health facilities, pharmacies, private hospitals, and medical professionals rendering 
services from their own or at patients' homes. Two thirds of public health staff also work privately. 
NGO-run health facilities (Section 4.4.3.2) and c haritable hospitals also provide services. The 
public health network comprises more than 1,400 health facilities. Government health services 
provide national coverage of infrastructure and staff; private providers outnumber government 
facilities but are mo stly small scale. The public health workforce comprises 20,000  professionals 
(predominantly nurses and midwives). There is a rapidly growing though loosely regulated private 
sector with more than 5,500 licensed providers, which deliver a large proportion o f health services 
(mainly curative care). No data on foreign health -related professionals (doctors, support staff) and 
institutions operating in Cambodia were available from the authorities.  
4.158.   Reforms in health financing have been at the centre of efforts t o rebuild the country's 
health system.319 Under the Health Strategic Plan 2008 -2015 Cambodia's priorities, inter alia,  
involved reinforcing the health legislation, professional ethics and code of conduct, and 
strengthening the regulatory mechanism. The Plan' s financing outlined the first step of the 
universal coverage of health protection to the entire population; nevertheless, there are a number 
of challenges remaining .320 A Health Sector Plan (HSP) 2016 -2020 is aimed at improving quality 
                                                
311 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf . 
312 Ministry of Education, Youth and Sport (2017),  The Education, Youth and Sport performance in the 
academic year 2015 -2016, and goals for the academic year 2016 -2017, March. 
313 MoEYS online information. Viewed at: http://www.moeys.gov.kh/images/moeys/laws -and-
regulations/48/EducationLaw -EN.pdf .  
314 MoEYS online information. View ed at: http://www.moeys.gov.kh/en/laws -and-legislations/sub -
decree/sd -309.html#.WPtEsXdh0_U .  
315 MoEYS online information. Viewed at: http://www.moeys.gov.kh/en/laws -and-legislations.html .  
316 Ministry of Education, Youth and Sport (2016), The Education, Youth and Sport performance in the 
academic year 2014 -2015, and goals for the acade mic year 2015 -2016,  March.  
317 Ministry of Education, Youth and Sport (2017),  The Education, Youth and Sport performance in the 
academic year 2015 -2016, and goals for the academic year 2016 -2017, March . 
318 WHO (2015), The Kingdom of Cambodia health system re view, Vol. 5 No. 2 2015. Viewed at: 
http://www.wpro.who.int/asia_pacific_observatory/hits/series/cambodia_health_systems_review.pdf .  
319 WHO (201 5), The Kingdom of Cambodia health system review , Vol. 5 No. 2 2015. Viewed at: 
http://www.wpro.who.int/asia_pacific_observatory/hits/series/camb odia_health_systems_review.pdf . 
320 Bureau of Health Economics and Financing (2008). Strategic Framework for Health financing . Viewed 
at: http://www.who.int/health_financing/documen ts/cam_frmwrk.pdf ; WHO (2015). The Kingdom of WT/TPR/S/364 • Cambodia  
 
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  and removing financia l barriers to access to health services through the expansion of the equity 
funds and pro -poor financing schemes. The total health budget for the sector ( 1.4% of GDP ) 
increased from US$110.6 million in 2011 to US$152.4 million in 2015.321 Government health 
services are financed from general revenues, supported by foreign donor funding equivalent to 
about 50% of government health spending through grants and loans.322 Private providers consume 
most health -care expenditures.  
4.159.   The healthcare legal framework, consis ting of the 1996 Law on the Management of 
Pharmaceuticals, the 1997 Law on Abortion, the 2000 Law on Management of Private Medical, 
Paramedical and Medical Aide Practice, the 2002 Law on Prevention and Control of HIV/AIDS, and 
the 2003 Sub -decree No. 61 on  Medical Professional Ethics, remains unchanged.323 According to 
the WHO, t here is considerable scope for reinforcing the regulatory mandate and private providers 
remain insufficiently regulated.324  
4.160.   The Ministry of Health (MoH) remains responsible for healthc are policy, the healthcare 
industry and public health; it regulates the activities of medical professionals, hospitals and clinics. 
The MoH maintains 24 provincial health departments (PHD) comprising 81 health Operational 
Districts (ODs), distributed accor ding to population; each PHD operates a provincial hospital and 
governs ODs. The National Institute of Public Health (NIPH), a governmental organization under 
the MoH provides public health and laboratory services, training and research. The Medical Counci l 
of Cambodia (MCC), an autonomous body established in 2000, continues to regulate the medical 
profession and the ongoing education of all medical doctors in the country.325 The General 
Secretariat of MCC, comprising representatives from the University of He alth Science, Phnom Penh 
Municipality, central and provincial levels, MoH, and MLVT, sets the MCC procedures, arranges 
MCC operational plans and strategies, and prepares financial reports.326 
4.161.   Registration with the MCC is mandatory for all medical doctors and  medical assistants 
(both foreign and Khmer) who practice medicine in Cambodia.327 Article 4 of the Law on the 
Management of Private Medical, Paramedical and Medical Aide Practice allows foreigners to 
practice their profession in Cambodia. In medical profess ional services, Cambodia has 
implemented a mutual recognition agreement with its ASEAN neighbours.328 
 
 
                                                                                                                                                  
Cambodia, Health system review . Viewed at: 
http://www.wpro.who.int/asia_pacific_observatory/hits/s eries/cambodia_health_systems_review.pdf . 
321 Ministry of Health (2008). Health Strategic Plan 2008 -2015,  April. Viewed at: 
http://apps.who.int/medicinedocs/documents/s18360en/s 18360en.pdf . 
322 WHO (2015). The Kingdom of Cambodia. Health system review . Viewed at: 
http://www.wpro.who.int/asia_pacific_observatory/hits/serie s/cambodia_health_systems_review.pdf .  
323 Law on Management of Private Medical, Paramedical, and Medical Aide Practice, 3 November 2000. 
Viewed at: http://www.bigpond.co m.kh/Council_of_Jurists/a00 -Kram/RKM00_11_10_E.htm ; Presentation by 
Chheng Kannarath, Deputy Secretary General, MCC titled Medical Ethics and law in Cambodia . Viewed at: 
http://www.iu.e du.kh/wp -content/uploads/2014/11/02.pdf ; Sub -decree No. 61 on Medical professional ethics, 
28 August 2003. Viewed at: http://www.mcc.org.kh/publications/17_fs_en.pdf . 
324 WHO (2015). The Kingdo m of Cambodia. Health system review . Viewed at: 
http://www.wpro.who.int/asia_pacific_observatory/hits/series/cambodia_health_systems_review.pdf .  
325 More information can be found at: 
http://www.mcc.org.kh/ws/article.php?lan=en&point=regis_about .  
326 MCC online information. Viewed at: 
http://www.mcc.org.kh/ws/article.php?lan=en&point=about_center . 
327 MCC online information. Viewed at: 
http://www.mcc.org.kh/ws/article.php?l an=en&point=regis_about .  
328 Dee, P. (2011), "Services Liberalization toward the ASEAN Economic Community", in Urata, S. and 
M. Okabe (eds.), Toward a Competitive ASEAN Single Market: Sectoral Analysis . ERIA, Research Project Report 
2010-03, pp. 17 -136, Ja karta. Viewed at: 
http://www.eria.org/publications/research_project_reports/images/pdf/y2010/no3/Chapter2.pdf .  WT/TPR/S/364 • Cambodia  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by product group, 2011 -16 
  2011  2012  2013  2014  2015  2016  
Total exports (US$ million)  6,704.1  5,796.3  6,665.9  6,846.0  8,542.4  10,069.3  
 % of total exports  
Total primary products  6.4 7.0 9.6 9.3 7.0 6.7 
Agriculture  6.3 6.8 9.4 9.1 6.9 6.5 
Food 2.6 3.5 5.8 5.3 4.8 4.5 
0423 - Rice, semi -milled or wholly milled, 
etc. 1.6 2.4 3.8 3.4 3.3 3.0 
Agricultural raw material  3.7 3.3 3.6 3.8 2.1 2.0 
2312 - Natural rubber (other than latex)  2.8 2.9 2.6 2.1 1.9 1.6 
Mining  0.1 0.2 0.2 0.3 0.1 0.1 
Ores and other minerals  0.1 0.1 0.1 0.1 0.1 0.1 
Non-ferrous metals  0.0 0.0 0.1 0.2 0.0 0.0 
Fuels 0.0 0.0 0.0 0.0 0.0 0.0 
Manufactures  93.5 92.3 90.3 90.1 92.6 91.4 
Iron and steel  0.0 0.0 0.0 0.0 0.0 0.1 
Chemicals  0.1 0.2 0.3 0.2 0.9 1.6 
5922 - Albuminoidal substances, modified 
starches and glues  0.0 0.0 0.0 0.0 0.4 1.0 
Other semi -manufac tures 0.3 0.4 0.5 0.2 2.6 2.5 
6131 - Whole furskins, not assembled  0.0 0.0 0.0 0.0 1.9 1.8 
Machinery and transport equipment  4.8 4.9 9.3 1.3 7.8 8.3 
Power generating machines  0.0 0.1 0.6 0.0 0.2 0.3 
Other non -electrical machinery  0.1 0.2 0.4 0.3 0.3 0.3 
Agricultural machinery and tractors  0.0 0.0 0.0 0.0 0.0 0.0 
Office machines & telecommunication 
equipment  0.0 0.2 1.6 0.4 2.2 1.9 
7649 - Parts suitable for use principally 
with the apparatus of division 76  0.0 0.2 1.5 0.0 1.6 1.5 
Other electrical mac hines 0.0 0.3 1.2 0.4 1.6 2.3 
7731 - Insulated wire, cable and other 
insulated electric conductors, etc.  0.0 0.3 1.1 0.4 1.3 1.4 
Automotive products  2.7 0.2 0.7 0.1 0.9 0.1 
Other transport equipment  1.8 3.8 4.8 0.1 2.5 3.5 
7852 - Bicycles and other cyc les, not 
motorized  1.6 3.3 4.6 0.0 2.4 3.4 
Textiles  0.4 0.7 1.3 0.8 1.4 1.6 
Clothing  59.6 69.4 72.5 78.0 69.5 66.1 
8442 - Suits, jackets, blazers, dresses, 
skirts, trousers, etc.  15.5 17.0 17.4 19.3 18.3 16.7 
8454 - T-shirts, singlets and other vests, 
knitted or crocheted  7.2 9.3 15.1 16.9 13.8 12.4 
8432 - Suits, jackets, blazers, trousers, 
etc. 10.2 11.9 12.5 13.7 12.1 11.6 
8453 - Jerseys, pullovers, cardigans, 
knitted or crocheted  11.7 12.5 7.8 7.6 6.5 6.3 
8448 - Slips, petticoats, briefs, panties,  
nightdresses, etc.  3.0 4.2 4.6 4.8 4.0 3.8 
8451 - Babies' garments and clothing 
accessories  1.9 2.1 3.0 4.0 3.0 2.8 
8438 - Underpants, briefs, nightshirts, 
pyjamas, bathrobes, etc.  1.4 1.8 1.8 2.1 1.9 1.8 
8447 - Blouses, shirts and shirt blouses  2.1 2.3 1.9 1.8 1.7 1.6 
8437 – Shirts  2.0 2.0 1.5 1.9 1.6 1.4 
8426 - Trousers, bib and brace overalls, 
breeches and shorts  0.2 0.6 0.7 0.6 0.6 1.1 
Other consumer goods  28.4 16.6 6.4 9.6 10.4 11.3 
8514 - Other footwear with uppers of 
leather or composition le ather 2.7 3.1 3.0 3.9 5.0 5.0 
8515 - Other footwear, with uppers of 
textile materials  1.1 1.4 2.0 1.9 2.0 2.1 WT/TPR/S/364 • Cambodia  
 
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    2011  2012  2013  2014  2015  2016  
Other  0.1 0.8 0.1 0.6 0.4 1.9 
9710 - Gold, non -monetary (excluding 
gold ores and concentrates)  0.0 0.5 0.0 0.6 0.3 1.9 
 
Source:  UNSD, Comtrad e database (SITC Rev.3).  
 
 WT/TPR/S/364 • Cambodia  
 
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  Table A1. 2 Merchandise imports by product group, 2011 -16 
  2011  2012  2013  2014  2015  2016  
Total imports (US$ million)  6,143.3  7,466.7  8,231.5  9,702.4  10,668.9  12,371.0  
 % of total imports  
Total primary products  22.8 25.1 21.2 13.4 12.2 19.4 
Agriculture  7.8 8.0 7.7 8.7 9.9 9.2 
Food 6.5 6.9 6.9 8.0 7.9 7.1 
1222 - Cigarettes containing tobacco  2.1 2.1 2.2 2.2 2.0 1.7 
1110 - Non-alcoholic beverages, n.e.s.  0.2 0.2 0.3 0.5 0.8 1.0 
Agricultural raw material  1.2 1.1 0.8 0.7 1.9 2.1 
2121 - Mink skins, raw, whole, with or 
without head, tail or paws  0.0 0.0 0.0 0.0 1.0 1.3 
Mining  15.0 17.1 13.5 4.7 2.3 10.2 
Ores and other minerals  0.4 0.4 0.3 0.4 0.5 0.5 
Non-ferrous metals  1.0 1.2 1.1 1.0 1.0 1.0 
6842 - Aluminium and aluminium alloys, 
worked  0.9 1.1 1.0 1.0 1.0 0.9 
Fuels 13.6 15.6 12.1 3.3 0.8 8.7 
334 - Petroleum oils and oils obtained 
from bituminous minerals, other than 
crude  13.1 14.8 11.5 3.0 0.2 7.2 
3212 - Other coal  0.3 0.3 0.2 0.2 0.5 0.9 
Manufactures  75.2 73.2 77.6 84.5 82.0 78.6 
Iron and steel  1.9 1.7 1.4 1.9 1.9 1.8 
Chemicals  5.6 5.7 6.2 7.1 6.7 6.4 
5429 - Medicaments, n.e.s.  1.5 1.4 1.4 1.3 1.2 1.1 
Other semi -manufactures  6.7 6.5 6.5 8.8 8.7 8.9 
Machinery and transport equipmen t 18.5 19.5 22.2 19.6 22.1 21.5 
Power generating machines  0.6 0.7 1.2 1.2 0.5 0.5 
Other non -electrical machinery  6.9 6.7 6.6 8.6 6.5 6.4 
Agricultural machinery and tractors  0.9 0.9 1.1 0.5 1.1 0.6 
Office machines & telecommunication 
equipment  2.1 1.6 1.7 2.8 2.5 2.2 
Other electrical machines  2.0 1.6 3.7 2.8 2.4 3.4 
7731 - Insulated wire, cable and other 
insulated electric conductors, etc.  0.3 0.6 0.6 0.8 0.9 1.3 
Automotive products  5.1 6.1 5.1 3.7 6.4 5.0 
7812 - Motor vehicles for the transport of 
persons, n.e.s.  2.9 3.1 2.6 2.3 3.5 3.0 
7821 - Motor vehicles for the transport of 
goods  1.5 2.2 1.8 0.9 2.2 1.4 
Other transport equipment  1.8 2.7 4.0 0.6 3.8 3.9 
7853 - Invalid carriages; parts of the 
articles of group 785  0.1 0.0 0.1 0.1 1.5 1.9 
7851 - Motor cycles and cycles fitted with 
an auxiliary motor, etc.  1.3 2.1 1.5 0.1 1.8 1.8 
Textiles  35.0 33.8 34.4 37.8 34.9 33.0 
6552 - Other knitted or crocheted fabrics, 
not impregnated, coated or laminated  18.9 18.9 19.4 20.2 18.5 17.6 
6534 - Fabrics, w oven, of synthetic staple 
fibres, containing less than 85% by weight 
of such fibres, etc.  7.5 7.6 7.8 8.4 7.0 6.0 
6524 - Other woven fabrics, containing 
85% or more by weight of cotton, etc., 
weighing more than 200 g/m2  0.8 0.7 0.9 1.5 1.7 1.5 
6518 - Yarn (other than sewing thread) of 
staple fibres; synthetic monofilament, etc.  2.4 1.9 1.9 1.5 1.6 1.4 
6526 - Other woven cotton fabrics, 
containing less than 85% by weight of 
cotton, etc.  1.1 1.1 0.9 1.4 1.3 1.3 
Clothing  1.4 1.5 1.5 1.6 1.0 0.9 
Other cons umer goods  6.1 4.5 5.3 7.7 6.8 6.1 
8998 - Smallwares and toilet articles, 
n.e.s.; sieves; tailors' dummies, etc.  1.0 1.0 1.0 1.4 1.2 1.0 WT/TPR/S/364 • Cambodia  
 
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    2011  2012  2013  2014  2015  2016  
8939 - Articles of plastics, n.e.s.  0.6 0.5 0.6 0.6 0.9 0.9 
Other  2.0 1.7 1.3 2.0 5.8 2.0 
9710 - Gold, non -monetary  (excluding 
gold ores and concentrates)  1.4 1.2 1.0 2.0 5.4 2.0 
Source:  UNSD, Comtrade database (SITC Rev.3).  WT/TPR/S/364 • Cambodia  
 
- 125 - 
 
  Table A1. 3 Merchandise exports by destination, 2011 -16 
  2011  2012  2013  2014  2015  2016  
Total exports (US$ million)  6,704.1  5,796.3  6,665.9  6,846.0  8,542.4  10,069.3  
 % of total exports  
Americas  38.7 41.4 40.0 38.2 33.2 29.3 
United States  31.4 32.7 31.3 29.2 25.0 21.3 
Other America  7.3 8.7 8.7 9.0 8.1 8.0 
Canada  5.7 6.8 6.9 7.4 6.5 6.5 
Mexico  0.7 0.9 0.7 0.6 0.7 0.6 
Europe  23.4 30.7 36.9 38.5 39.3 40.5 
EU-28 22.7 29.9 35.9 37.5 38.5 39.9 
United Kingdom  5.8 8.3 10.3 11.0 10.2 9.5 
Germany  4.8 7.4 8.6 8.5 8.8 9.0 
Spain  2.1 2.5 2.9 3.2 3.2 4.0 
Belgium  2.0 2.5 2.5 2.8 3.3 3.9 
France  1.4 2.0 2.4 3.0 3.5 3.6 
Netherlands  2.6 1.9 2.4 2.5 2.9 3.0 
Italy 1.2 1.8 2.2 2.4 2.3 2.1 
Poland  1.0 1.3 1.5 1.6 1.3 1.2 
Denmark  0.2 0.3 0.3 0.3 0.4 0.8 
Czech Republic  0.0 0.1 0.3 0.4 0.6 0.7 
EFTA 0.6 0.6 0.6 0.5 0.4 0.4 
Other Europe  0.1 0.2 0.4 0.4 0.3 0.2 
Commonwealth o f Independent 
States (CIS)  0.6 0.7 0.8 0.7 0.4 0.5 
Africa  0.2 0.5 1.0 0.3 0.4 0.3 
Middle East  0.4 0.5 0.7 0.8 0.9 0.9 
United Arab Emirates  0.3 0.4 0.5 0.7 0.7 0.7 
Asia 36.7 26.1 20.4 21.4 25.8 28.5 
China  2.3 3.1 4.0 5.2 4.7 6.1 
Japan  2.3 3.2 4.7 5.0 6.7 8.2 
Other Asia  32.1 19.9 11.7 11.2 14.4 14.2 
Thailand  2.8 1.7 3.3 0.7 4.1 4.2 
Viet Nam  2.2 1.9 1.6 1.4 2.2 2.3 
Hong Kong, China  17.9 8.6 0.9 2.4 2.1 2.1 
Korea, Republic of  0.7 1.2 1.4 1.8 1.6 1.6 
Australia  0.5 0.6 0.9 1.1 1.0 1.0 
Malaysia  0.7 1.5 1.9 1.8 1.6 1.0 
Singapore  6.6 3.6 0.8 1.0 0.7 0.6 
Other  0.0 0.0 0.3 0.0 0.0 0.0 
Memorandum:        
ASEAN  12.5 8.9 7.9 5.3 9.0 8.6 
Source:   UNSD, Comtrade database.  WT/TPR/S/364 • Cambodia  
 
- 126 - 
 
  Table A1. 4 Merchandise imports by origin, 2011 -16 
  2011  2012  2013  2014  2015  2016  
Total imports (US$ million)  6,143.3  7,466.7  8,231.5  9,702.4  10,668.9  12,371.0  
 % of total imports  
Americas  2.7 2.5 2.5 3.1 2.6 2.0 
United States  2.4 2.2 2.3 2.7 2.2 1.4 
Other America  0.4 0.3 0.3 0.4 0.5 0.6 
Canada  0.2 0.1 0.1 0.1 0.3 0.4 
Europe  4.8 4.6 3.2 3.6 3.8 4.5 
EU-28 3.2 3.2 3.0 3.4 3.6 4.3 
Germany  0.6 0.9 0.6 0.9 1.0 1.3 
Denmark  0.0 0.1 0.0 0.1 0.3 1.0 
France  0.7 0.6 0.6 0.7 0.6 0.5 
Italy 0.3 0.5 0.3 0.4 0.3 0.3 
United Kingdom  0.4 0.2 0.4 0.3 0.3 0.3 
Finland 0.0 0.0 0.0 0.0 0.1 0.2 
Netherlands  0.1 0.2 0.2 0.2 0.3 0.2 
EFTA 1.5 1.3 0.1 0.1 0.1 0.1 
Other Europe  0.0 0.0 0.0 0.1 0.1 0.1 
Commonwealth of Independent 
States (CIS)  0.3 0.3 0.2 0.1 0.0 0.1 
Africa  0.1 0.0 0.1 0.1 0.1 0.1 
Middle East  0.2 0.3 0.2 0.3 0.2 0.2 
Asia 92.0 92.2 93.8 92.8 93.2 93.0 
China  28.3 29.8 36.3 38.2 36.8 36.8 
Japan  4.0 3.2 2.1 2.7 4.0 4.3 
Other Asia  59.6 59.2 55.3 51.9 52.5 52.0 
Thailand  11.8 13.4 13.2 10.8 14.6 15.4 
Viet Nam  14.4 14.1 11.9 9.0 8.7 11.4 
Chinese Taipei  8.3 7.3 6.6 6.6 5.9 5.7 
Singapore  3.9 3.9 4.2 5.0 4.7 4.6 
Hong Kong, China  7.8 6.8 7.8 8.6 6.7 4.2 
Korea, Republic of  4.9 5.7 4.5 4.0 4.3 3.5 
Indonesia  2.8 2.9 3.0 2.9 3.1 3.4 
Malaysia  3.4 2.4 1.7 2.2 1.8 2.0 
India 1.2 1.5 1.1 1.5 1.1 0.7 
Pakistan  0.3 0.5 0.6 0.5 0.3 0.3 
Australia  0.3 0.3 0.2 0.3 0.3 0.2 
Lao People's Democratic 
Republic  0.0 0.1 0.1 0.1 0.2 0.2 
Other  0.0 0.0 0.0 0.0 0.0 0.1 
Memorandum:        
ASEAN  36.6 37.0 34.2 30.1 33.7 37.2 
Source:  UNSD, Comtrade database.  WT/TPR/S/364 • Cambodia  
 
- 127 - 
 
  Table A3. 1 Tariff summary, 2017  
  Number 
of lines  Average 
(%) Range 
(%) Coefficient 
of 
variation 
(%) Duty free 
(%) 
Total  10,810  12.3 0-35 0.8 13.9 
HS 01 -24 1,723  16.1 0-35 0.7 9.8 
HS 25 -97 9,087  11.5 0-35 0.8 14.7 
By WTO category       
WTO agric ultural products  1,367  14.6 0-35 0.8 12.1 
   Animals and products thereof  152 25.7 0-35 0.5 10.5 
   Dairy products  45 13.9 7-35 0.2 0.0 
   Fruit, vegetables, and plants  356 12.9 0-35 0.9 11.8 
   Coffee and tea  43 26.8 7-35 0.4 0.0 
   Cereals and prepa rations  199 11.9 0-35 0.7 15.1 
   Oils seeds, fats, oil and their products  222 7.3 0-35 0.6 9.0 
   Sugars and confectionary  31 7.0 7-7 0.0 0.0 
   Beverages, spirits and tobacco  122 27.9 7-35 0.4 0.0 
   Cotton  5 0.0 0-0 0.0 100.0  
   Other agricultural products, n.e.s.  192 10.9 0-35 0.9 27.1 
WTO non -agricultural products  8,525  11.9 0-35 0.8 14.1 
   Fish and fishery products  437 19.9 0-35 0.5 3.7 
   Minerals and metals  1,554  8.0 0-35 1.0 23.8 
   Chemicals and photographic supplies  1,506  7.1 0-35 1.0 22.0 
   Wood, pulp, paper and furniture  557 9.5 0-35 0.8 3.1 
   Textiles  855 5.7 0-15 0.5 20.9 
   Clothing  351 15.0 15-15 0.0 0.0 
   Leather, rubber, footwear and travel goods  322 13.2 0-35 0.7 1.2 
   Non-electric machinery  1,328  12.7 0-35 0.4 8.5 
   Electric machinery  719 16.8 0-35 0.6 7.2 
   Transport equipment  101 19.9 0-35 0.6 13.8 
   Non-agricultural products, n.e.s.  751 15.0 0-35 0.7 14.4 
   Petroleum  44 12.2 0-35 0.6 6.8 
By ISIC sector       
   ISIC 1 - Agriculture, hunting and fishing  684 10.6 0-35 0.7 17.8 
   ISIC 2 - Mining  122 6.5 0-35 1.0 39.3 
   ISIC 3 - Manufacturing  10,003  12.4 0-35 0.8 13.3 
        Manufacturing excluding food processing  8,882  11.6 0-35 0.8 14.3 
    Electrical energy  1 7.0 7-7 0.0 0.0 
By stage of processing       
   First stage of processing  1,131  10.1 0-35 0.9 22.5 
   Semi-processed products  2,855  6.5 0-35 0.8 19.7 
   Fully processed products  6,824  15.0 0-35 0.7 10.0 
By HS section       
  01 Live animals and products  589 19.6 0-35 0.5 6.3 
  02 Vegetable pro ducts  490 9.5 0-35 0.8 18.6 
  03 Fats and oils  175 7.0 7-7 0.0 0.0 
  04 Prepared food, beverages and tobacco  469 21.9 0-35 0.6 8.5 
  05 Mineral products  218 7.7 0-35 1.0 32.1 
  06 Chemicals and products thereof  1,259  7.6 0-35 1.0 18.4 
  07 Plastics, r ubber, and articles thereof  565 8.9 0-35 0.9 24.2 
  08 Raw hides and skins, leather, and its products  91 12.8 7-35 0.8 0.0 
  09 Wood and articles of wood  228 11.8 7-35 0.8 0.0 
  10 Pulp of wood, paper and paperboard  300 6.6 0-7 0.2 5.7 
  11 Textiles an d textile articles  1,175  8.3 0-15 0.6 15.9 
  12 Footwear, headgear, etc.  84 14.8 7-35 0.5 0.0 
  13 Articles of stone, plaster, cement  250 10.9 7-35 0.7 0.0 WT/TPR/S/364 • Cambodia  
 
- 128 - 
 
    Number 
of lines  Average 
(%) Range 
(%) Coefficient 
of 
variation 
(%) Duty free 
(%) 
  14 Precious stones and metals, pearls  86 2.5 0-7 1.3 64.0 
  15 Base metals and articles thereo f 1,035  8.3 0-35 0.9 21.1 
  16 Machinery, electrical equipment, etc.  2,132  14.0 0-35 0.5 7.8 
  17 Transport equipment  1,033  19.7 0-35 0.6 14.0 
  18 Precision equipment  326 14.9 0-35 0.6 9.2 
  19 Arms and ammunition  30 26.8 0-35 0.6 23.3 
  20 Miscellan eous manufactured articles  267 15.5 0-35 0.8 22.1 
  21 Works of art, etc.  8 0.0 0-0 0.0 100.0  
Source : WTO Secretariat calculations, based on data provided by the authorities. Excluding 14 specific tariff 
lines under HS subheading 2710.  
 WT/TPR/S/364 • Cambodia  
 
- 129 - 
 
  Table A3. 2 Applied tariff lines breaching bindings, 2017  
HS Code  MFN 2017  Bound rate  Note  
Fully breaching (60 tariff lines)  
12114000  35% 15%  
12115000  35% 15%  
12119011  35% 15%  
12119013  35% 15%  
12119015  35% 15%  
12119016  35% 15%  
12119019  35% 15%  
12119091  35% 15%  
12119092  35% 15%  
12119095  35% 15%  
12119097  35% 15%  
12119098  35% 15%  
12119099  35% 15%  
19059030  15% 10%  
19059040  15% 10%  
19059050  15% 10%  
19059060  15% 10%  
19059070  15% 10%  
19059080  15% 10%  
19059090  15% 10%  
27101250  35% 20%   
34031111  15% 7%   
34031119  15% 7%   
34031190  15% 7%   
34031911  15% 7%   
34031912  15% 7%   
34031919  15% 7%   
34031990  15% 7%   
34039111  15% 7%   
34039119  15% 7%   
34039190  15% 7%   
34039911  15% 7%   
34039912  15% 7%   
34039919  15% 7%   
34039990  15% 7%   
39232990  15% 7%   
84714910  7% 0%   
84714990  7% 0%   
84733010  7% 0%   
84733090  7% 0%   
85081990  35% 15%   
85086000  35% 15%   
85232911  7% 0%   
85291021  15% 0%   
85291029  15% 0%   
85291030  15% 0%   
85291040  15% 0%   
85291060  15% 0%   
85291092  15% 0%   
85291099  15% 0%   
85447010  15% 7%   
85447090  15% 7%   
90279010  15% 0%   WT/TPR/S/364 • Cambodia  
 
- 130 - 
 
  HS Code  MFN 2017  Bound rate  Note  
90279091  15% 0%   
90279099  15% 0%   
96190011  15% 10%   
96190012  15% 10%   
96190013  15% 10%   
96190014  15% 10%   
96190091  15% 10%   
Partially breaching (29 tariff lines):  
01063100  7% 5%, 15%  Breaching part of line "pure breeding" is 
bound at 5%  
01063200  7% 5%, 15%  Breaching part of line "pure breeding" is 
bound at 5%  
01063300  7% 5%, 15%  Breaching part of line "pure breeding" is 
bound at 5%  
01063900  7% 5%, 15%  Breaching part of line "pure breeding" is 
bound at 5%  
03069121  35% 20%, 40%    
03069131  35% 20%, 40%    
03069221  35% 20%, 40%    
03069231  35% 20%, 40%    
03069321  35% 20%, 40%    
03069421  35% 20%, 40%    
03069431  35% 20%, 40%    
03069921  35% 20%, 40%    
03069931  35% 20%, 40%    
36041000  35% 7%, 35%  Breaching part of line "Fireworks other than 
firecrackers" is bound at 7%  
70194000  15% 10%, 30%  Breaching part of line "woven fabrics not 
including narrow fabrics" is bound at  10% 
70195100  15% 10%, 30%  Breaching part of line "woven fabrics not 
including narrow fabrics" is bound at 10%  
70195200  15% 10%, 30%  Breaching part of line "woven fabrics not 
including narrow fabrics" is bound at 10%  
70195900  15% 10%, 30%  Breaching part  of line "woven fabrics not 
including narrow fabrics" is bound at 10%  
84713020  7% 0%, 15%  Breaching part of line "analog or hybrid 
automatic data processing machines" is 
bound at 0%  
84713090  7% 0%, 15%  Breaching part of line "analog or hybrid 
automatic d ata processing machines" is 
bound at 0%  
84714110  7% 0%, 15%  Breaching part of line "analog or hybrid 
automatic data processing machines" is 
bound at 0%  
84714190  7% 0%, 15%  Breaching part of line "analog or hybrid 
automatic data processing machines" is 
bound at 0%  
84715010  7% 0%, 15%  Breaching part of line "analog or hybrid 
automatic data processing machines" is 
bound at 0%  
84715090  7% 0%, 15%  Breaching part of line "analog or hybrid 
automatic data processing machines" is 
bound at 0%  
84716090  7% 0%, 15%  Breaching part of line " bar code readers" is  
bound at 0%  
85423100  7% 0%, 30%    
85423200  7% 0%, 30%    
85423300  7% 0%, 30%    
85423900  7% 0%, 30%    
Possibility of breaching (14 tariff lines):  
27101211  0.02$/l  40.00    
27101212  0.02$/l  40.00    
2710121 3 0.02$/l  40.00    WT/TPR/S/364 • Cambodia  
 
- 131 - 
 
  HS Code  MFN 2017  Bound rate  Note  
27101221  0.02$/l  20.00    
27101222  0.02$/l  20.00    
27101223  0.02$/l  20.00    
27101224  0.02$/l  20.00    
27101225  0.02$/l  20.00    
27101226  0.02$/l  20.00    
27101227  0.02$/l  20.00    
27101228  0.02$/l  20.00    
27101229  0.02$/l  20.00    
27101971  0.04$/l  30.00    
27101972  0.04$/l  30.00    
Source:  WTO calculations based on data provided by the authorities.  
  
  WT/TPR/S/364 • Cambodia  
 
- 132 - Table A4. 1 Cambodia's Air Transport Agreementsa, 2017  
Partner  Date  
5thb 
7thc 
Cabotaged 
Coope 
Designationf 
Withholdingg 
Pricingh 
Capacityi 
Statj 
ALI 
Capacity entitlement  
Australia  19.05.2014  N N N n/a M n/a n/a PD n/a 4.0 7 flights/week  
Austria  30.09.2015  N N N n/a M n/a n/a PD n/a 4.0 14 flights/week  
Brunei Darussalam  19.08.2000  N N N N M SOEC  DA PD Y 4.0  
China 27.02.2014  N N N N M SOEC  n/a FD Y 12.0 Unlimited frequencies  
Czech Republic  03.06.2014  N N N N M SOEC  DA PD N 5.0 7 flights/week  
Finland  19.07.2016  N N N n/a M n/a n/a PD n/a 4.0 14 flights/week  
France  04.11.2014  N N N N M SOEC  DA PD N 5.0 7 fligh ts/week  
Germany  27.01.1997  N N N n/a M n/a n/a PD n/a 4.0 2 flights/week  
Hong Kong, China  13.01.2014  N N N N M PPoB DA PD Y 12.0 21 flights/week  
Hungary  30.09.2015  N N N n/a M n/a n/a PD n/a 4.0 14 flights/week  
Iceland  29.04.2014  N N N n/a M n/a n/a PD n/a 4.0 7 flights/week  
India 12.01.2007  N N N N M SOEC  DA PD Y 4.0  
Indonesia  20.09.2006  N N N N M SOEC  DA n/a Y 4.0 2,520 seats/week  
Japan  14.01.2015  N N N n/a M n/a n/a FD n/a 12.0 Unlimited frequencies  
Kenya  10.09.2014  N N N n/a M n/a n/a PD n/a 4.0 7 flights/week  
Korea, PDR  14.01.2016  N N N n/a M n/a n/a PD n/a 4.0 7 flights/week  
Korea, Republic of  05.09.2006  N N N N M SOEC  DA B1 Y 8.0 Unlimited frequencies  
Kuwait  13.01.2009  N N N n/a M n/a n/a n/a n/a 4.0  
Lao PDR  16.11.2010  N N N n/a M n/a n/a FD n/a 12.0 Unlimited frequencies  
Luxembourg  18.03.2014  N N N n/a M n/a n/a FD n/a 12.0 Unlimited frequencies  
Macao, China  12.12.2001  N N N N M PPoB DA PD Y 12.0 750 seats/week  
Malaysia  01.09.2007  N N N n/a M n/a n/a PD n/a 4.0 5,500 seats/week   
  WT/TPR/S/364 • Cambodia  
 
- 133 - Partner  Date  
5thb 
7thc 
Cabotaged 
Coope 
Designationf 
Withholdingg 
Pricingh 
Capacityi 
Statj 
ALI 
Capacity entitlement  
Mongo lia 01.03.2016  N N N n/a M n/a n/a PD n/a 4.0 500 seats/week  
Morocco  25.07.2016  N N N n/a M n/a n/a PD n/a 4.0 7 flights/week  
Myanmar  20.06.2013  N N N N M SOEC  DA FD Y 12.0 Unlimited frequencies  
Netherlands  09.04.2014  N N N n/a M n/a n/a PD n/a 4.0 7 flights/week  
New Zealand  19.08.2015  N N N Y M PPoB FP FD N 32.0 Unlimited frequencies  
Philippines  10.04.2012  N N N n/a M n/a n/a PD n/a 4.0 14 flights/week  
Qatar  20.11.2012  N N N n/a M n/a n/a FD n/a 12.0 Unlimited frequencies  
Russian Federation  24.11.20 15 N N N N M n/a DA n/a N 4.0  
Seychelles  16.10.2014  N N N n/a M n/a n/a PD n/a 4.0 14 flights/week  
Singapore  04.11.1996  N N N N M SOEC  DD Other  Y 16.0 9,000 seats/week (increase of 
400 seats every year)  
Sri Lanka  27.03.2015  N N N n/a M n/a n/a PD n/a 4.0 14 flights/week  
Switzerland  17.06.2015  N N N n/a M n/a n/a PD n/a 4.0 14 flights/week  
Chinese Taipei  17.01.2002  N N N n/a M n/a n/a n/a n/a 4.0  
Thailand  19.05.2016  N N N N M SOEC  DA FD Y 12.0 Unlimited frequencies  
Turkey  12.12.2013  N N N n/a M n/a n/a PD n/a 4.0 21 flights/week  
United Arab Emirates  09.05.2013  N N N n/a M n/a n/a FD n/a 12.0 Unlimited frequencies  
United Kingdom  29.05.2013  N N N n/a M n/a n/a PD n/a 4.0 7 flights/week  
United States  15.07.2014  N N N n/a M n/a n/a FD n/a 12.0  
Viet Nam 25.06.1997  N N N N M SOEC  DA PD Y 4.0 2,700 seats/week  
a The term "Air Transport Agreements" is used here to refer to Air Services Agreements, Memoranda of Understanding, Exchange of  Notes, and other such 
relevant instruments.  
b  Indicates if fifth fr eedom rights, even limited ones, are granted. If fifth freedom rights are subject to approval by the aeronautical authorities , they are coded 
as NOT granted.  
c Indicates if seventh freedom rights, even limited ones, are granted. If seventh freedom rights a re subject to approval by the aeronautical authorities, they are 
coded as NOT granted.   
  WT/TPR/S/364 • Cambodia  
 
- 134 - d  Indicates if cabotage rights, even limited ones are granted. If cabotage rights are subject to approval by the aeronautical a uthorities, they are coded as NOT 
granted . 
e  Indicates if there are clauses allowing cooperation between airlines, e.g. code -sharing.  
f Indicates if designation is single by an "S" or multiple by an "M".  
g Indicates the type of withholding clause: Substantial Ownership and Effective Control "SOE C", Principal Place of Business "PPoB", Community of Interest 
"COI", not available "n/a".  
h Indicates the type of pricing clause: Double Approval "DA", Double Disapproval "DD", Country of Origin (CoO), Zone Pricing "Z P", Free Pricing "FP", not 
available "n /a". 
i Indicates the type of capacity clause: Pre Determination "PD", Bermuda I, "B1", Free determination "FD", other "O", not avail able "n/a".  
j Indicates if an exchange of statistics is foreseen by the agreement.  
Note:  Cambodia is also a signatory to o ne plurilateral agreement, i.e. CLMV (Cambodia, Lao PDR, Myanmar, and Viet Nam) signed on 4 December 2003.  
Source:  WTO Secretariat and information provided by the authorities of Cambodia.  
 
 
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