Op-Ed: A Decade of Dialogue, Yet Many Challenges Remain

Over the past decade, Cambodia has changed dramatically on the surface. New highways now connect major economic corridors, modern skyscrapers dominate Phnom Penh’s skyline, airports are expanding, and digital payments have become part of everyday life.

The country has become far more integrated into regional and global trade networks than it was ten years ago. Anyone returning to Cambodia after a decade away would immediately notice the transformation.

Yet beneath this visible progress, a different story quietly continues.

A comparison between EuroCham’s White Book 2017 and the recently released White Book 2027 reveals something both striking and uncomfortable: many of the same issues raised ten years ago remain unresolved today.

The wording may have evolved, the technology may have improved, and the institutions may appear more modern, but the core frustrations voiced by the business community remain remarkably similar.

This does not mean Cambodia has failed to reform. In fact, considerable efforts have been made by the Royal Government over the years. Ministries have introduced online business registration systems, digital customs platforms, tax reforms, and new investment frameworks. Policymakers increasingly speak about digital transformation, ESG standards, sustainability, and economic modernization.

However, the deeper problem is not the absence of reforms. It is the gap between reform announcements and practical implementation.

Reading the White Book 2027 often feels less like a new policy document and more like a continuation of unfinished discussions from the previous decade.

Businesses are still talking about red tape, overlapping regulations, unclear procedures, inconsistent enforcement, tax unpredictability, customs inefficiencies, and weak coordination between ministries. The same structural complaints continue resurfacing because many reforms have only been partially implemented or implemented unevenly.

Perhaps the clearest example is bureaucracy itself.

Ten years ago, businesses were already asking for streamlined procedures and less administrative duplication. Today, despite digital platforms and modernization initiatives, companies still find themselves repeatedly submitting the same documents to different institutions.

One ministry accepts digital files while another still asks for physical copies. Businesses upload information online, only to later carry printed versions from office to office for verification.

The problem is no longer simply about digitization. Cambodia already has digital systems. The problem is that too many systems do not communicate effectively with one another.

The White Book’s “Red Tape” section highlights how ministries continue operating in separate silos. Investment approvals, licensing procedures, customs clearance, and sectoral permits frequently overlap.

Instead of one seamless process, businesses often navigate several disconnected systems at once. In practice, this increases costs, delays operations, and creates unnecessary uncertainty.

Customs and logistics tell a very similar story.

Back in 2017, businesses were already complaining about slow clearance procedures, inconsistent implementation, high shipping costs, and cumbersome paperwork. Fast forward to 2027, and many of the recommendations remain almost identical: simplify customs procedures, expand digitalization, improve the National Single Window, and reduce administrative bottlenecks.

This repetition matters because it reveals a deeper institutional challenge. Cambodia has introduced reforms on paper, but implementation on the ground often moves much more slowly. A regulation may exist, but enforcement differs between departments.

A digital platform may be operational, but officials may still request manual submissions. Consultation with the private sector may occur regularly, but practical outcomes often take years to materialize.

Taxation is another area where businesses continue to express concern.

Over the past decade, Cambodia’s tax administration has become more sophisticated and more efficient in revenue collection. But businesses today are not only asking for stronger tax systems. They are asking for predictability and consistency.

The concerns raised in 2017 over VAT, withholding taxes, transfer pricing, and unpredictable enforcement have now evolved into newer anxieties surrounding voluntary disclosure schemes, tax database inconsistencies, retroactive liabilities, and prepayment taxes. Yet the underlying issue remains unchanged: uncertainty.

Most investors can adapt to regulations, even strict ones, as long as the rules are clear and consistently applied. What creates anxiety is not necessarily the level of taxation itself, but the unpredictability surrounding how laws are interpreted and enforced.

Legal certainty remains another unresolved issue.

A decade ago, businesses were already calling for clearer legal frameworks and independent review mechanisms. Ten years later, EuroCham continues to advocate for stronger dispute resolution systems and the establishment of a Supreme Administrative Court. The persistence of this recommendation reflects a broader concern within the business community about regulatory predictability.

In Cambodia, the challenge is often not the absence of laws but the inconsistency of interpretation. Different ministries may issue overlapping guidance. Local authorities may apply rules differently from national agencies.

Informal clarifications sometimes carry more practical weight than formal written regulations. Businesses can function within strict systems if the rules remain stable. What damages confidence is ambiguity.

One recent example involves the Corporate Secretary requirements introduced under Prakas No.117. Although consultations were held and some clarifications provided by the Ministry of Commerce, businesses remain concerned because certain practical interpretations have not yet been formally reflected in legally binding text. As a result, uncertainty continues over how the rules will ultimately be enforced in practice.

Real estate and construction show similar patterns.

Despite Cambodia’s rapidly changing skyline, businesses continue to raise concerns about zoning regulations, property transfer procedures, measurement standards, financial oversight, and governance structures for co-owned buildings. The physical infrastructure may look modern, but the regulatory systems supporting that growth are still evolving.

This matters because investors do not only evaluate visible development. They also assess institutional reliability. Modern office towers and luxury condominiums alone cannot compensate for unclear legal frameworks or inconsistent administrative practices.

The same challenge applies to workforce development.

Even in 2017, businesses were discussing skills shortages, apprenticeship programs, and workforce readiness. Those conversations continue today. As Cambodia moves closer toward graduation from Least Developed Country status, the economy can no longer rely solely on low-cost labor.

The next phase of growth will require stronger technical skills, vocational training, and closer coordination between government, education institutions, and industry.

In many ways, Cambodia today stands between two realities.

On one side is a fast-growing country with ambitious modernization goals, improving infrastructure, and increasing regional relevance. On the other side is an administrative system still struggling with coordination, implementation discipline, and regulatory consistency.

To be fair, progress has occurred. Some ministries have become more proactive and reform-oriented. Certain recommendations from previous White Books have been resolved or partially addressed. The government has also become more willing to engage with the private sector through consultations and dialogue platforms.

But acknowledgement is not the same as resolution.

That may ultimately be Cambodia’s biggest challenge entering the next decade. The country no longer lacks policy recommendations, technical expertise, or reform ideas. Those recommendations have already been repeated for years. What Cambodia now needs most is consistent institutional execution.

Businesses today are not asking for perfection. They are asking for clarity, predictability, coordination, and confidence that announced reforms will actually be implemented consistently across the system.

Cambodia has already demonstrated that it can grow rapidly. The more important question now is whether its institutions can modernize at the same pace as its economy.

Because in the long run, infrastructure alone will not determine Cambodia’s competitiveness. Institutional trust will.

By David Van, a veteran Cambodian business strategist and public policy advisor. The views expressed in this article are solely his own and do not represent those of KPT English.