Cambodia Advances Comprehensive Commercial Code to Unify Business Laws

Cambodian lawmakers have begun discussions on the drafting of a comprehensive Commercial Code, a long-term legal reform initiative aimed at unifying fragmented business laws, reducing regulatory complexity and creating a more predictable environment for investment and economic growth. Speaking at a June 24 seminar on the preparation of the new code, Permanent Deputy Prime Minister Vongsey Vissoth explained that the initiative marks a new phase in the government’s legal reform programme, seeking to consolidate laws and regulations governing commerce into a coherent legal framework that supports businesses and strengthens the rule of law. The Phnom Penh seminar, organised by the Secretariat of the Steering Committee for Legal Reform, brought together around 400 participants, including senior government officials, representatives from ministries and institutions, members of the judiciary, private sector representatives, diplomats, international organisations, legal professionals and domestic and international policy experts. Vissoth said the proposed code will become an important pillar of Cambodia’s legal architecture, providing clearer rules for commercial activities while improving efficiency and supporting business expansion. “The preparation of a Commercial Code is a significant step within the Royal Government’s legal reform programme. It aims to establish a clear and coherent framework for commercial laws that can support businesses, improve efficiency and contribute to the integrity of Cambodia’s legal system and the rule of law,” he noted. The deputy prime minister acknowledged that despite substantial progress in legal reform over nearly three decades, Cambodia’s legal system continues to face a range of structural challenges. Among the issues identified were inconsistencies between existing laws, gaps between policy and legislation, discrepancies between laws and their implementation, outdated regulations, overlapping institutional mandates and jurisdictional conflicts. He also highlighted concerns frequently raised by the private sector, including cumbersome business registration and licensing procedures, inconsistencies between laws and subordinate regulations, and legal uncertainty surrounding digital public services. “The world is changing rapidly. Trade is evolving from traditional forms to digital commerce and green trade, while global, regional and bilateral trade relations are becoming increasingly diverse and complex. Cambodia cannot avoid the impact of these transformations,” Vissoth said. He noted that some laws have become obsolete or difficult to implement, while gaps remain in legal provisions governing emerging areas, particularly the digitalisation of public services. In addition, confidence in the judicial system and mechanisms for resolving commercial disputes remains a challenge that requires continued reform, he said. According to Vissoth, these issues have become significant barriers to efficiency, economic growth and Cambodia’s broader development agenda. To address them, the government is proposing to compile essential legal rules governing commerce into a single code that would provide greater legal certainty and establish what he described as a “level playing field” for all economic actors. He said such a framework is essential in a market economy because businesses require clear, transparent and consistent rules to operate efficiently and compete fairly. The Commercial Code has been identified as one of the core priorities under the government’s legal reform strategy, which was formally adopted in 2025 following the establishment of the Steering Committee for Legal Reform in 2024. Vissoth stressed, however, that the initiative is a long-term project requiring extensive study, consultations and participation from all stakeholders. At the same time, he argued that Cambodia cannot afford to delay the process. “If we truly want to solve the problems Cambodia is facing and pave the way for stronger economic growth, investment and business development, while improving people’s livelihoods, we cannot wait another 10 or 20 years to complete this Commercial Code,” he said. “We must treat this as a priority and move forward as quickly as possible, while ensuring the process is comprehensive, effective, practical and beneficial,” he added. He urged participants in the seminar to contribute actively and constructively, particularly in discussing the methodology for drafting the code and determining its scope, drawing lessons from international experiences while ensuring the new framework reflects Cambodia’s own legal traditions, context and development needs. The initiative comes as Cambodia seeks to modernise its legal and regulatory framework amid rapid changes in global commerce, with policymakers increasingly emphasising legal certainty, regulatory efficiency and investor confidence as key factors in sustaining long-term economic growth.