After successful UN-monitored elections in 1993, Cambodia became a newly democratic country. Cambodia has witnessed remarkable economic, political, and judicial development since then. While Cambodia did rely substantially on foreign aid throughout its first decade as a democratic country, laws were being implemented to put the country on the road to self-sufficiency.
The Royal Government of Cambodia took landmark steps in legislation that has made Cambodia one of the world's most open market economies. The Law on Investment of the Kingdom of Cambodia (1994), which aimed to attract foreign direct investment (FDI) to Cambodia, was one of the most important legislation passed by Cambodian legislators.
In 1999, the Royal Government made further progress on economic reforms.
From 2001 to 2004, the economy increased at an average rate of 6.9%, owing mostly to expansion in the garment manufacturing industry. For the first time, Cambodian textile manufacturers were forced to compete directly with lower-cost manufacturing countries such as China and India after a WTO agreement on textiles and clothing expired in January 2005.
Over the next decade, Cambodia's greatest economic challenge will be to create the environment in which the private sector can provide enough jobs to accommodate Cambodia’s demographic imbalance. More than 50% of the population is under the age of 20, and Cambodian colleges are now producing around 2000 college graduates per year.
Since early 1999, the Royal Government of Cambodia has been intensifying its economic reform program, a process which international financial institutions and donors participate in and monitor closely.
Cambodia's major donors also have made a number of proposals to help the country's economy grow. One recommendation that the government is eager to implement is the Special Economic Zone (SEZ). CHHAY CHHAY INVESTMENT LTD (CCI) has acquired the rights to develop a SEZ in the Poipet, Banteay Meanchey area in the hopes of capitalizing on this new government plan. CCI believes that the Poipet O’Neang Special Economic Zone (POSEZ) will be the most effective, profitable and competitive SEZ in Cambodia.
Posez National Objective
- Boost foreign trade, particularly cross-border commerce with Thailand
- Increase national exports
- Attract foreign investors to Cambodia
- Improve the investment image of Cambodia
- Create jobs that will attract job-seekers from across the country
In order to strive for profit through the development of the POSEZ. CCI has set objectives that serve the interest of the nation as well as its own shareholders.
Posez Local Objective
- Develop the physical infrastructure by bringing reliable power and water to the area
- Develop social infrastructure by constructing schools, hospitals, and other institutions.
- Bring in additional social services
- Raise the local citizens' standard of living
- Provide more work opportunities
- Develop local human resources through training programs