File photo shows Cambodian workers at a building site in Phnom Penh. Cambodia's private sector Tuesday urged the government to allow foreign ownership of certain properties like apartments or factories, saying a liberalised real estate market would spur economic growth.
PHNOM PENH (AFP) — Cambodia's private sector Tuesday urged the government to allow foreign ownership of certain properties like apartments or factories, saying a liberalised real estate market would spur economic growth.
Under the current rules, foreign property investments must be made in the name of a Cambodian national, and many are unwilling to risk losing their assets to unscrupulous local partners.
While Cambodia's investment law was amended in 2005 to allow foreign ownership of permanent fixtures, the legislation has yet to be implemented and the initiative has floundered.
"There are several reasons for urgent action," said Bretton Sciaroni, an American lawyer who serves as the chairman of the International Business Club and was speaking Tuesday at a meeting between the private sector and government.
The measure would further develop Cambodia's real estate market, taking advantage of a current boom and making the country competitive with its neighbours, which allow foreigners to own apartments or condominiums.
Vast new building projects have bloomed in the past few years, including a number of sprawling satellite cities worth billions of dollars that when constructed will radically alter the face of the capital.
"This is already a sector of the economy that is dynamic, but foreign ownership of apartments, condominiums and other such structures on the land will help spur further economic growth," Sciaroni said.
"Such a regulatory development will provide a dramatic indication that Cambodia has an investor-friendly environment," he added.
After decades of turmoil, Cambodia has emerged as a rising economy in the region -- posting an average of 11 percent growth over the past three years on the back of strong tourism and garment sectors.
But officials warn that the country, which still relies on international aid for half of its annual budget, must diversify by seeking more varied foreign investments.
"There are other sectors we are trying to encourage, but we have to find out what are the sectors where we can be competitive," Commerce Minister Cham Prasidh told AFP in an interview last week.
"If we try to produce the same thing as Thailand or Malaysia, it will be very difficult," he added.
Source: http://afp.google.com/article/ALeqM5jl4G46zbEYLEDmiyTJaZbVmhyQtA
No comments:
Post a Comment