Cambodia needs to ensure fair treatment of both domestic and foreign
investors if it wants to attract more foreign investors, accordsing to US Trade
Representative Ron Kirk.
Kirk presented the idea during a
press conference last week in Siem Reap durig the ASEAN-US Business Summit by
saying that Cambodia has done a good job in opening its economy to the world.
However, he said, the country still had more work to do.
“Generally, what businesses want
is predictability, transparency, good rules or laws, strong social protection
that they can get a good work force, a good location, and give them equal
treatment – there is no discrimination,” he said.
“Promise me, if I am looking at
investing capital here, you’ll treat me just you treat other Cambodian
companies. You do that I think you will begin to see the US investment in
Cambodia going in an upwards trajectory,” Kirk added.
Commerce Minister Cham Prasidh
highlighted the Cambodian government’s work in this regard, indicating the
Government-Private Sector Working Group, a standing committee comprising eight
private sector groups from various industries that is co-chaired by a minister
with each working group. He said that during the meeting each working group
raises any issues and then the prime minister would work to resolve them.
Director-General of the Phnom
Penh Chamber of Commerce Nguon Meng Tech agreed that the Government-Private
Sector Working Group is a crucial element in proving that the government
supports the private sector as the driver of economic growth.
“The meeting is very effective
for two reasons. One, to enforce our laws, especially the investment law. And
the other is to attract more [foreign direct investment] into the country
because they see that our government is transparent,” he said. “We have never
seen the government discriminate between domestic and foreign investors.
Instead, they are really supportive for those foreign investors.”
Kirk also said Cambodia has done
well with its administration and leadership by putting in place and adding to
the number of labour protection agreements in the textile industry, which has
greatly enhanced Cambodia’s attractiveness to US companies. Cambodia’s textile
exports to the US rose as a result. “I think it has grown dramatically across
the board over the last several years.”
“The attraction for businesses
and investment in Cambodia I think will be enhanced as we’ve worked through
issues around this bilateral investment treaty,” he continued. “One of the
advantage of ASEAN’s configuration is that you have a model example for the
economy that has made the transformation from a closed economy to an open
democratic society with strong rules and laws that attracts investors to their
neighbours. You’ve seen the explosion of investment from Singapore, Malaysia
and so there is no secret to their investment at all,” he added.
May Kunmakara
Business & Investment Opportunities
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