Significant challenges persist for businesses operating in Cambodia. Transparency International ranked Cambodia 158 out of 180 economies in its 2024 Corruption Perceptions Index, reflecting high levels of perceived public sector corruption. Additionally, the World Bank’s 2025 Business Ready report highlights Cambodia’s low scores in market competition and ease of business entry, further underscoring the difficulties faced by investors and entrepreneurs.

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 in 2020, enabling foreign investors to register businesses and pay fees electronically.

However, challenges remain 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.