Unlicensed Construction Sites Reduced by 7.7% After Construction Law Enforced

• 5 May 2021
• Local News
• 3614 Views

The construction sector in Cambodia has seen further regulation since the new construction law was implemented in 2019. One positive result has been that the number of unlicensed construction sites nationwide dropped by over 7.7% from 2019 to the end of 2020.

This data was presented during an online meeting between the Minister of Land Management, Urban Planning and Construction HE Chea Sophara and Japan Ambassador to Cambodia HE MIKAMI Masahiro on 4 May.

HE Chea Sophara said that after the construction law was enforced, more and more people came to apply for construction permits. In 2019, before the construction law was promulgated, there were 478 construction sites without permits or 9.8% of the total number of construction sites.

By the end of 2020, there were only 107 unlicensed constructions, equivalent to only 2.2% of the total number, a decrease of 7.7%.

In addition, there were a total of 4,410 licensed construction sites in 2010. Meanwhile, the number of licensed projects increased to 4,734 in 2020 even though overall new construction investment dropped due to the COVID-19 pandemic. This means the older unlicensed project owners are coming in to register for the proper permits.

The construction law was developed through cooperation between Cambodia and Japan. Both sides now also keep working on fostering the implementation of this important law.

According to the Ministry of Economy and Finance, the volume of investment in the construction sector nationwide in the first quarter of 2021 totalled US$1.66 billion, down by 35% q-o-q. (Read more)

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