Recognizing that the real economic growth necessary to achieve the country’s developmental goals lies in the development of a healthy private sector, the government undertook a program of reform to promote private sector investment. As part of this reform program, the Law on Foreign Investment in the Kingdom of Cambodia of 1994 established the Council for the Development of Cambodia (CDC). This law made the CDC the highest decision-making level of the government for private and public sector investment. It is chaired by the Prime Minister and composed of senior ministers from related government agencies.

The Cambodian Investment Board (CIB) and the Cambodian Special Economic Zone Board (CSEZB) are the CDC’s operational arms for private sector investment. CIB deals with investment projects out of special economic zones (SEZs) and CSEZB takes charge of investment projects in SEZs. They review investment applications and grants incentives to investment projects meeting the requirements laid out in the 1994 Investment Law. This law streamlined the foreign investment regime and provided generous and competitive incentives for direct private sector investment.