Delegation of Investment Approval Powers to Provincial Level Empowers Provinces to Attract Investments

• 17 June 2023
• Local News
• 1604 Views

In a significant move to foster economic growth and generate employment opportunities at the local level, Samdech Hun Sen, Prime Minister of Cambodia, announced that the government has decentralized the authority to review and approve investment projects valued at up to US$5 million to provincial authorities. This delegation of powers is aimed at attracting investments and encouraging the establishment of factories in provinces, ultimately creating job opportunities for local residents.

During a meeting with a gathering of approximately 20,000 garment workers in Kampong Cham province on June 16, Samdech Hun Sen called upon provincial governors to actively pursue both domestic and foreign investors to invest in their respective provinces, with a focus on job creation and export growth.

Highlighting the new policy, the Prime Minister stated, “We have now entrusted the sub-national level with the authority to review and approve investment projects worth up to US$5 million. This applies to both local and foreign investors who can tap into overseas markets.”

Samdech Hun Sen emphasized that the government’s strategy of promoting provincial industrialization aims to prevent rural-urban migration by providing employment opportunities within the provinces themselves. The Cambodian government is committed to developing essential infrastructure to attract investments and stimulate economic activity in various regions, thereby empowering local communities.

The Prime Minister also emphasized the importance of enhancing human resources and technical expertise through vocational training programs. By equipping individuals with advanced skills in technology and fostering a talented workforce, Cambodia aims to attract high-tech industries that leverage modern technologies, driving innovation and economic growth.

The delegation of investment approval powers to provincial authorities marks a significant step towards decentralization, empowering local governments to actively facilitate investments, create employment opportunities, and contribute to the overall economic development of Cambodia.

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