Cambodia Launches Preparations for a Unified Commerce Code
Cambodia has entered a new phase of legal reform with the formal launch of discussions to prepare a national Commerce Code, a move aimed at modernising and unifying the country’s commercial legal framework. The high level meeting, chaired by Permanent Deputy Prime Minister Vongsey Vissoth in his capacity as Minister in charge of the Office of the Council of Ministers and Chairman of the Legal Reform Steering Committee, signals the Royal Government’s determination to strengthen the legal foundations that support trade, investment and long term economic growth. By initiating this process, the government is seeking to create a coherent commercial code that can simplify procedures, reduce costs and time for businesses, promote fair competition, generate employment and ultimately enhance Cambodia’s overall economic performance.
Strong Institutional Participation Reflects National Priority
The discussion was organised by the Steering Committee for Legal Reform and brought together a broad range of key institutions, including the Ministry of Commerce, Ministry of Justice, Ministry of Economy and Finance, the Council for the Development of Cambodia, the Council of Lawyers and other relevant ministries and agencies. This wide participation underscores the national importance of the Commerce Code and highlights the government’s intent to ensure that the new legal framework is comprehensive, inclusive and responsive to the needs of both the public and private sectors. The collaborative approach also reflects an understanding that commercial law reform must align policy objectives, institutional capacity and real world business practices.
Legal Reform as a Foundation for Economic Growth
Addressing participants, Vongsey Vissoth emphasised that the Commerce Code is a strategic component of the Royal Government’s broader legal reform agenda, designed to consolidate existing commercial laws into a modern and consistent legal structure. He stressed the direct link between law and economic development, stating, “When we talk about the economy, we must also talk about the law.” He warned that gaps or inconsistencies between policy and legal frameworks could slow growth and impose unnecessary burdens on businesses and citizens, reinforcing the need for a clear, predictable and well aligned commercial legal environment.
A Comprehensive and Context Driven Approach
Vissoth highlighted that the preparation of the Commerce Code must be treated as a comprehensive package that addresses economic, social, development and human resource considerations. This includes studying international theories and best practices, identifying implementation challenges and actively gathering feedback from those who will be directly affected by the new code. He also called for a thorough review of outdated, fragmented or unenforceable legal provisions, as well as inconsistencies and translation issues, while ensuring that gaps and overlaps in the current system are addressed through new and carefully drafted provisions.
Designing a Practical and Transparent Commercial Framework
Participants engaged in detailed discussions on the scope, structure and design of the proposed Commerce Code, including the technical process of codification. According to the Office of the Council of Ministers, the objective is to develop a logical and practical code tailored to Cambodia’s specific context, while remaining aligned with international legal principles. The Commerce Code is intended to enhance transparency, efficiency, accountability and legal certainty in the commercial sector, reduce complexity for businesses and build trust among traders, investors and the broader business community in an increasingly globalised economy.
Expected Benefits for Businesses and Investors
The proposed Commerce Code is expected to unify existing and future commercial laws under a single framework, clarify legal procedures from drafting to dispute resolution and establish rules that are simple, accessible and consistent with international legal logic. Officials believe this will strengthen Cambodia’s commercial legal system, improve the investment climate, boost business competitiveness, reduce trade barriers and support more inclusive and sustainable economic growth. The initiative is also expected to contribute to human resource development by strengthening expertise among judges, lawyers, legal professionals and law students specialising in commercial law.
Business Community Welcomes the Reform
The private sector has responded positively to the initiative. Speaking to Khmer Times, Lim Heng, Vice President of the Cambodia Chamber of Commerce, expressed strong support for the Commerce Code, noting its potential to drive growth across multiple business sectors. However, he stressed that successful implementation would depend on effective enforcement and broad participation from relevant institutions and stakeholders. “We have established a commercial court, so the Commerce Code can be implemented effectively,” he said. “The commercial court will play an important role in enforcing the code and supporting the development of the commercial sector.” Lim also urged the Ministry of Commerce to accelerate the full establishment and operation of the commercial court, highlighting its importance in resolving disputes through a clear and predictable legal framework that builds investor confidence.
Aligning with Global Trade Standards
Lor Vichet, Vice President of the Cambodia Chinese Commerce Association, also voiced strong support, describing the Commerce Code as a necessary step in line with Cambodia’s obligations as a member of the World Trade Organization. He noted that the lack of a specialised court for commercial disputes has long complicated risk assessment for investors. “This is a good time for the Royal Government to send a clear message to both national and international investors that Cambodia is governed by the rule of law,” Vichet said. He added that while Cambodia already offers a favourable business environment, greater legal certainty is essential to further strengthen investor confidence and transparency.
Building Legal Certainty for Long Term Growth
Vichet emphasised that a Commerce Code would simplify legal interpretation and dispute resolution, helping investors operate more efficiently and profitably. “When we have a Commercial Code, it makes the interpretation of laws and the resolution of disputes easier,” he said. “When disputes are reduced, it ultimately allows investors in our country to operate more profitably.” He described the initiative as a key milestone in Cambodia’s judicial reform efforts, noting that a standardised legal language for trade would reduce misinterpretation and lay a solid foundation for the future establishment of a fully functioning Cambodian Commercial Court aligned with international standards.
Conclusion
The launch of preparations for Cambodia’s national Commerce Code marks a decisive step in strengthening the country’s legal and economic architecture. By unifying commercial laws, enhancing legal certainty and aligning with international standards, the initiative has the potential to improve the investment climate, support sustainable growth and reinforce confidence among domestic and international businesses. If effectively implemented, the Commerce Code could become a cornerstone of Cambodia’s long term economic development and legal reform agenda.