Cambodia has a fast-developing legal market housing both local and regionally focused law firms, serving clients across a range of corporate transactions, land matters, dispute resolution and projects work, among other areas.

Chambers currently has a General Business Law ranking table for law firms and lawyers based in Cambodia, as well as a Cambodia General Business Law: Expertise Based Abroad table for law firms and lawyers based overseas. The rankings recognise providers of legal services who are helping to guide clients through a fast-changing economic landscape in the country.

Sources paint a positive picture of Cambodia’s market activity for transactions, with one noting that “post-covid, Cambodia reacted and reopened quickly, welcoming back investment projects that had seen delays. There is a steady flow of work, notwithstanding global headwinds.”

Reflecting the growing stature of Cambodia’s economy, an interviewee reflects that, “since Cambodia opened up, there has been a lot of FDI into Cambodia, and Cambodian companies are also looking out.” This source adds that this outbound activity by Cambodian companies “shows the growth of sophistication of companies (in Cambodia) and their confidence to get out.”

Another commentator opines that Cambodia’s legal market has “a healthy banking sector” and adds that “areas like TMT seem strong, and there have been a number of M&A matters with investors returning to the market.” Sources also mention the country’s active manufacturing facilities sector, with one adding that, “despite the import tax issue with Europe, we still run a good business.” Whilst the EU imposed some partial trade sanctions on Cambodia in recent years, there still appears to be an active investment environment.

The topic of capital markets (particularly equity capital markets) brings diverging sentiment among commentators, in terms of the future outlook. Whilst one source says that “ECM is still very thin in Cambodia and there are only a handful of listed companies,” another reports that “IPOs are very exciting in the Cambodian market” and that the number of listed companies in Cambodia is steadily growing from an initially low number in the recent past.

On the debt capital markets side, an interviewee suggests that “the Cambodian government has a focus on green energy playing a big role in its 20-year plan.” It was noted during our research that green bond issuances are a current market trend. This is supported by the recent launch of the Cambodia Sustainable Bond Accelerator, which will provide three selected Cambodian issuers with expert technical assistance and support towards their sustainable bond issuances in the near future.

There are interesting trends occurring in the energy sector more generally, with interviewees noting that renewable energy is seeing an uptick. Sources especially mention the solar area as an active one, as well as battery recharging stations and biomass projects.

“Infrastructure is crucial to the Cambodian economy,” says an interviewee, with sources noting that developments to the country’s infrastructure are going ahead at a steady pace, including the development of new international airports in Phnom Penh and Siem Reap. A commentator also mentions good activity involving infrastructure development in the healthcare and education sectors.

On a less positive note, a source remarked during research that, although there has been some market activity, “real estate and construction has suffered a lot.”  Real estate development and investment in cities such as Phnom Penh, Siem Reap and Sihanoukville have helped drive Cambodian economic growth in recent years, but there is a danger of over-reliance on this sector, as demonstrated by the bursting of the real estate bubble in recent years in Sihanoukville, which had been fuelled by Chinese tourism in the casino sector, as well as by the effects of covid.

However, the Cambodian real estate market still has good potential and should be boosted by the return en masse of tourists to the country, as reported by sources during Chambers research.

Another sign of Cambodia’s evolving legal market is the introduction in recent years of legislation aimed at areas such as e-commerce, competition, consumer protection and trust laws, mentioned by sources during the recent Chambers Cambodia research.

One interviewee asserts that “we see an expansion in regulatory affairs, which shows that the Cambodian economy is developing.” A further interesting area mentioned by interviewees is the recent legal matter involving the repatriation of Cambodian cultural antiquities back to the country from abroad.

As Cambodia’s economy continues to propel forward, it is interesting to see the country’s pursuit to restore its extensive cultural legacy and assert itself on an international stage in relation to the repatriation of artefacts.

Cambodia’s GDP has a projected growth rate of 5.3% in 2023 and 6% in 2024. This represents steady growth and Chambers will keep a keen eye on future developments in Cambodia’s legal market, with the aim to help clients looking for legal counsel within the country.

The Chambers 2024 Asia-Pacific Guide, including the General Business Law rankings for Cambodia, will be published on Chambers.com on 14 December, 2023.