Cambodia Confronts Legal Fragmentation as Commercial Code Reform Gains Urgency

PHNOM PENH, June 24, 2026 (KPT) – Fragmented legislation, overlapping mandates and outdated provisions continue to weigh on Cambodia’s business climate, officials warned Wednesday, as the government accelerates drafting of its first comprehensive Commercial Code to strengthen legal certainty and sustain economic growth.

Deputy Prime Minister Vongsey Vissoth, who chairs the Legal Reform Steering Committee, said the new code will consolidate commercial laws into a unified framework that promotes efficiency, transparency and equal treatment for businesses.

“This is a strategic legal reform that will strengthen Cambodia’s market economy and improve investor confidence,” he told a national seminar in Phnom Penh attended by about 400 participants from government, the judiciary, private sector, diplomatic missions and international organizations.

Despite three decades of progress in legal reform, Vissoth acknowledged persistent challenges: inconsistencies between laws and regulations, gaps between policy and implementation, overlapping institutional mandates and complex administrative procedures. Businesses continue to face overlapping requirements, complicated registration and licensing processes, unclear digital regulations and concerns over commercial dispute resolution.

He stressed that addressing these issues is critical for competitiveness in a global trading landscape increasingly shaped by digitalization, green commerce and complex international trade rules.

“The Commercial Code will become an important pillar in strengthening Cambodia’s legal system while supporting a more efficient and competitive business environment,” he said.

Drafting the code is a long-term undertaking requiring extensive research and consultation, but the government intends to prioritize the work to ensure the framework is comprehensive, practical and enforceable. Vissoth called on legal experts, government institutions, the private sector and development partners to contribute ideas and international best practices to help shape a code that reflects both global standards and Cambodia’s own realities.

The initiative forms part of the Royal Government’s broader governance reform agenda under its seventh mandate, which established the Legal Reform Steering Committee in 2024 and adopted a Strategic Framework for Legal Reform in 2025 to modernize Cambodia’s regulatory system and strengthen the country’s investment climate.