Unlicensed Construction Sites Reduced by 7.7% After Construction Law Enforced

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)

- Video Advertisement -

Related Post

Cambodian Gov’t Extends Stamp Duty Exemption on Homes Up to USD 70,000 Until the End of 2025

The Ministry of Economy and Finance has announced an extension of the stamp duty exemption for the transfer of ownership or possession of all types of Borey housing valued at USD 70,000 or less, continuing this benefit until the end of 2025. This initiative aims to stimulate the real estate market by offering substantial tax […]

Tycoon Ly Yong Phat’s Hydropower Company Suspended for Environmental Violations in Pursat and Koh Kong

The Ministry of Environment has temporarily suspended all activities of Stung Meteuk Hydropower, a company owned by Tycoon Ly Yong Phat, in Pursat and Koh Kong provinces due to multiple environmental violations and non-compliance with legal requirements. The suspension was confirmed in a letter from the Ministry, dated 2 September 2024. The decision stems from […]

South Korea’s Mugungwha Trust Targets Investment in Cambodia’s Expanding Trust Sector

Mugungwha Trust Co., Ltd., a leading South Korean trust company, has announced plans to invest in Cambodia’s trust sector, aiming to contribute to the country’s economic growth and sector expansion. The company’s President, Mr. Oh Chang-seok, expressed this commitment during a meeting with Samdech Techo Hun Sen on 10 September 2024 in Seoul, Republic of […]

GDT Sets Property Tax Deadline for 30 September 2024

The General Department of Taxation (GDT) has reminded all property owners to fulfil their property and land tax obligations by 30 September 2024. The announcement, made on 31 July 2024, , emphasises the critical importance of meeting this deadline to ensure a smooth tax collection process. To facilitate efficient tax payments, the GDT encourages property […]

Cambodian Senate Approves Landmark Air Transport Law to Boost Aviation Sector

In a significant move to bolster Cambodia’s aviation industry, the Senate has unanimously approved the draft law on international air transport. The approval, achieved with 56 out of 56 votes during the extraordinary session of the Senate of the 5th legislature, was held under the chairmanship of Samdech Techo Hun Sen on 31 July 2024. […]

The Gov’t Establishes Special Task Force to Expedite Tax Audits

In a decisive move to enhance the business and investment environment, the Cambodian government has established a special tax audit unit under the General Department of Taxation of the Ministry of Economy and Finance. This unit aims to expedite the resolution of tax audit issues and ensure compliance with existing laws and regulations. The decision […]