In 1993, Cambodia emerged a newly democratic nation after successful UN monitored elections. Since then, Cambodia has experienced rapid growth economically as well as politically and judicially. While it is true that Cambodia relied heavily on foreign aid during its first decade as a democratic nation, laws were being implemented which would put Cambodia on the road to self sufficiency.
The Royal Government of Cambodia took landmark steps in legislation that has made Cambodia one of the freest market economies in the world. One of the most important laws passed by Cambodian lawmakers was the Law on Investment of the Kingdom of Cambodia (1994) which aimed at attracting foreign direct investment (FDI) to Cambodia.
In 1999, the Royal Government made further progress on economic reforms.
From 2001 to 2004, the economy grew at an average rate of 6.9%, driven largely by expansion in the garment manufacturing sector. With the January 2005 expiration of a WTO Agreement on Textiles and Clothing, Cambodia-based textile producers were forced to compete directly with lower priced producing countries such as China and India or the first time.
The major economic challenge for Cambodia over the next decade will be fostering an economic environment in which the private sector can create enough jobs to support Cambodia’s demographic imbalance.More than 50% of the population is 20 years old or younger and Cambodian universities are beginning to produce approximately 2000 college graduates per year.
Since early 1999, the Royal Government of Cambodia has intensified its economic reform program, a process which international financial institutions and donors participate in and monitor closely.
In addition, Cambodia’s main donors have offered several recommendations to boost the local economy. Of those, the Special Economic Zone (SEZ) is one recommendation that the government is eager to implement.In hopes of capitalizing on this new government strategy, CHHAY CHHAY INVESTMENT LTD (CCI) has obtained the rights to develop an SEZ in the Poipet, Banteay Meanchey area. CCI believes that the Poipet O’Neang Special Economic Zone (POSEZ) will be the most effective, profitable and competitive SEZ in Cambodia.