Cambodia Prepares Groundbreaking Legislation to Foster Public-Private Ventures

• Sommana Yan
• 29 September 2023
• Uncategorized
• 2369 Views

The Ministry of Economy and Finance is actively crafting a new law pertaining to the management of public enterprises and state-owned entities. This legislation encompasses a wide spectrum of business endeavours and public-private investments, marking a pivotal step in Cambodia’s economic evolution. The ministry unveiled the initiative during a consultation workshop held on 21 September 2023.

HE Neth Mony, the government’s representative responsible for the Director General role at the General Department of State Property and Non-Fiscal Revenue, elucidated that public enterprises are characterised by their substantial state ownership, with either complete or majority state capital investment. As of the close of 2022, Cambodia boasted 17 such public enterprises, with an additional nine newly established entities in 2023, all proudly bearing the distinction of being wholly government-owned.

This forward-looking legislation is conceived to align with the prevailing economic climate both domestically and globally. It aims to bridge critical gaps in governance, particularly in areas encompassing ministerial authority, corporate governance, state equity capital management, and overall enterprise administration.

The manifold objectives of this legislation encompass elevating economic productivity, fostering employment opportunities for Cambodians, attracting professional expertise, expanding profitable market participation, and fortifying public services.

This proposed legislation comprises 10 comprehensive chapters, housing a total of 79 articles. This substantial framework is a notable advancement from the 1996 General Statute of Public Enterprises, which contained a mere 4 chapters and 49 articles.

Furthermore, what sets this new draft law apart from its predecessor is its provision granting public enterprises the prerogative to issue and trade bonds in strict adherence to the law governing the issuance and trading of public securities.

It’s paramount to note that public enterprises are categorized into two distinct entities: state-owned enterprises, characterized by 100% state ownership, and joint ventures operating under public-private partnerships. In the latter case, the state’s stake constitutes a majority, with private capital making up the remainder, ensuring a symbiotic balance of interests.

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