foreign ownership of property such as apartments and office buildings to
boost the country's economic growth, an official said Wednesday.
Under the current rules, foreign property investments can only be made
through the name of a Cambodian national, and many are unwilling to risk
losing their assets to unscrupulous local partners.
Information Minister Khieu Kanharith said the government is evaluating
the policy to ensure that foreigners will be allowed to own buildings
and apartments but not land.
"The important thing is that foreigners cannot own land... They can buy
things above the ground only," Khieu Kanharith told AFP.
He said that the plan would attract more foreign investment and more
skilled foreign workers to the impoverished nation.
"This policy will boost our economic growth," Khieu Kanharith added.
The move comes after the private sector last year urged the government
to allow foreign ownership of certain properties like apartments or
factories, saying a liberalised real estate market would spur the economy.
Cambodia's investment law was amended in 2005 to allow foreign ownership
of buildings, but the legislation has yet to be implemented and the
initiative has floundered.
Despite current restrictions, billion-dollar skyscraper projects and
sprawling satellite cities promising to radically alter Phnom Penh have
bloomed over the past few years.
They are mainly backed by South Korean companies working through local
partners.
After decades of turmoil, Cambodia has emerged as a rising economy in
the region -- posting average 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.
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