There are significant challenges to doing business in Cambodia.  The World Economic Forum’s Global Competitiveness Report ranked Cambodia at 106 out of 141 (2019) economies assessed, while Transparency International, which evaluates perceived levels of public sector corruption, ranked Cambodia 150 out of 180 economies (2022), a slight improvement from the year before.

Some of the major difficulties in the business environment include the time, costs, and procedures associated with starting a business, obtaining construction permits, registering property, and enforcing contracts.  Informal payments can be required for some procedures.  To address these challenges, Cambodia launched an Online Business Registration (OBR) system to allow foreign investors to register their businesses and pay registration fees electronically.  However, there are still remaining challenges, such as inadequate infrastructure, high-energy costs (Cambodia’s electricity costs are among the highest in ASEAN), under-developed human capital, systemic corruption, lack of transparency, and weak regulatory environment.  Disputes over land rights and little enforcement of intellectual property rights, especially regarding the sale of counterfeit and pirated products, also remain major concerns for U.S. companies.