Cambodia has taken another major step toward strengthening its aviation industry after the National Assembly approved the country’s accession to the Cape Town Convention and Aircraft Protocol. The decision, made during a plenary session in Phnom Penh attended by Prime Minister Hun Manet, is expected to make aircraft financing more accessible, reduce leasing costs, and provide stronger legal protection for international investors and financial institutions. The move reflects Cambodia’s commitment to aligning its aviation sector with globally recognized legal standards while supporting long term economic growth.
The newly approved legislation allows Cambodia to join one of the world’s most important international legal frameworks governing aircraft financing and leasing. Government officials believe the treaty will improve investor confidence, attract more aviation related investment, and help Cambodian airlines secure aircraft under better financial terms. It also supports the country’s broader vision of expanding its civil aviation sector as tourism and international connectivity continue to grow.
National Assembly Gives Unanimous Approval
Cambodia’s National Assembly unanimously approved the draft law authorizing the Kingdom to accede to the Convention on International Interests in Mobile Equipment, commonly known as the Cape Town Convention, along with its Aircraft Protocol. All 110 lawmakers voted in favor of the proposal presented by Minister in charge of the State Secretariat of Civil Aviation Mao Havannall.
The plenary session was chaired by National Assembly President Khuon Sudary in the presence of Prime Minister Hun Manet. The unanimous vote demonstrates broad political support for strengthening Cambodia’s legal framework governing aircraft ownership, financing, and leasing while making the country’s aviation sector more competitive on the global stage.
A Stronger Legal Framework for Aircraft Financing
According to Minister Mao Havannall, joining the Cape Town Convention will establish an internationally recognized legal framework that governs aircraft financing, leasing, and secured transactions involving valuable aviation assets. The convention creates greater legal certainty for airlines, financial institutions, leasing companies, and investors operating across international borders.
“The convention establishes an international electronic registry where legal interests in aircraft assets can be registered and recognised by all member states, reducing legal uncertainty in cross border financing and leasing transactions.”
The minister explained that the agreement applies to aircraft, aircraft engines, and helicopters while protecting the rights of creditors, financiers, and lessors involved in commercial aviation transactions.
What the Convention Does and Does Not Cover?
Havannall clarified that the convention is designed exclusively for commercial aviation financing and has no connection with Cambodia’s sovereign debt or government borrowing. It also does not apply to state owned aircraft or unmanned aerial vehicles.
Instead, the agreement regulates legal relationships between private sector participants involved in aircraft financing. Any disputes arising within Cambodia will remain under the jurisdiction of Cambodian courts, with the Phnom Penh Municipal Court designated to hear relevant cases.
Years of Preparation Led to the Decision
The approval follows years of legal research and consultation conducted by the State Secretariat of Civil Aviation together with government institutions, private sector stakeholders, and international aviation experts.
According to Havannall, detailed studies carried out in 2019 and again in 2025, with technical support from Boeing and international civil aviation specialists, concluded that joining the convention would bring significant legal and economic advantages for Cambodia’s aviation industry.
The accession also aligns with recommendations adopted by the 42nd Assembly of the International Civil Aviation Organization, which encourages member states to ratify the Cape Town Convention and Aircraft Protocol to improve legal certainty and facilitate international aircraft financing.
Cambodian Airlines Expected to Benefit
Government officials expect Cambodian airlines to gain significant advantages once the convention takes effect. Stronger legal protections will make lenders and leasing companies more willing to finance aircraft purchases while offering more competitive financing terms.
Havannall said Air Cambodia is expected to benefit from improved financing conditions when negotiating aircraft purchases or leases from manufacturers including Boeing in the United States and COMAC in China.
“Stronger legal protection for creditors and lessors will increase confidence among aircraft manufacturers, financing institutions and leasing companies in conducting business with Cambodian airlines,” he said.
Lower financing costs could ultimately help airlines expand their fleets, improve regional connectivity, and support Cambodia’s rapidly growing tourism and business sectors.
Cambodia Joins a Growing International Network
The Cape Town Convention has become the global standard for aircraft financing since entering into force in 2006. As of June 2026, 124 countries have joined the convention, while 104 countries have adopted the Aircraft Protocol.
Within ASEAN, Malaysia, Indonesia, Singapore, Myanmar, and Vietnam are already members. Cambodia’s accession places the Kingdom alongside regional neighbors that have embraced internationally accepted legal standards for aviation financing.
What This Means for Cambodia’s Economy?
Joining the Cape Town Convention is expected to improve Cambodia’s investment environment by reducing legal risks for international lenders and leasing companies. With greater confidence in Cambodia’s legal protections, financial institutions are more likely to provide funding under favorable terms, making aircraft acquisition more affordable for local airlines.
The agreement also supports Cambodia’s long term strategy of developing a stronger aviation sector capable of supporting tourism, international trade, foreign investment, and economic growth. As air travel demand continues to rise across Southeast Asia, a modern legal framework could give Cambodia an important competitive advantage.
Conclusion
Cambodia’s approval of the Cape Town Convention and Aircraft Protocol marks a significant milestone in the country’s aviation development. By adopting internationally recognized legal standards, the Kingdom is creating a more secure and attractive environment for aircraft financing, leasing, and investment. The decision is expected to strengthen investor confidence, reduce financing costs for airlines, and support the long term expansion of Cambodia’s aviation industry, positioning the country for greater regional and global connectivity.