Political Climate in Cambodia

Industrial Development Policy (IDP)(Geographic Priorities)

•       Cambodia has step by step developed its economy and social structure from the bottom after three decades of devastation and societal fragmentation from civil conflicts, colonization, genocidal Khmer Rouge and foreign sanctions, with the help of United Nations and foreign countries (Vu, 2015).

•        Cambodia is a constitutional monarchy. After 2013 election, there are two main political parties: CPP and CNRP.

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Corruption

•       Transparency International (TI) ranks Cambodia in the 156th place in the corruption perception index in 2014. Cambodia’s government makes efforts to reduce corruption nationwide (Vu, 2015).

•       In March 2010, the Cambodia’s government passed the draft of the Anti-corruption Law.

•       The RGC has requested the private sector to help support efforts to reduce informal payments. In response, 17 large companies have recently signed an MOU with the Anti-Corruption Unit, 9 of which are located in the Phnom Penh Special Economic Zone (PPSEZ) (World Bank, 2015)

A New Wave of Reforms

•       To address this, the RGC has initiated a new wave of reforms since early 2014. Three key reforms in the area of trade facilitation are:

1. Company registration is being simplified and automated. It is intended to allow applicants to register a new company online in significantly less time, ultimately diminishing face-to-face contact.
2. Automation of the Certificate of Country of Origin (COO). In a first phase, MOC launched an Interim System, which can be used from the Ministry's premises. Work is under way for the system to be fully automated so that companies can apply for the certificate electronically. The new COO system is intended to become an electronic payment platform and offer the first e-payment facility (with e-signature) for government services (World Bank, 2015).
3. Transition of CAMCONTROL to a modern Food Safety and Consumer Protection Agency. This is intended to improve the overall level of food safety in Cambodia and reduce duplications with the General Department of Customs and Excise (GDCE).