Introduction
The Royal Government of Cambodia adopted Sub-Decree No. 139 ANKr.BK on the Implementation of Law on Investment (“Sub-Decree 139“) on 26 June 2023, aiming to implement the Law on Investment, which was earlier promulgated on 15 October 2021. Sub-Decree 139 covers investment projects registration, obligations, incentives, after-care services, and acquisition/sale or merger/nullification of the projects, with ten annexes including a negative list of ineligible activities (“Negative List“). For more information on Sub-Decree 139, please see the July 2023 Legal Update titled “Sub-Decree on the Implementation of Law on Investment“.
On 6 June 2025, Sub-Decree No. 86 ANKr.BK (“Sub-Decree 86“) was issued, amending the Negative List to include the manufacturing and/or assembly or installation of electronic cigarettes and other similar devices.
This Update sets out a high-level summary of the key features outlined in Sub-Decree 86.
Key Features
Sub-Decree 86 aims to amend point C.12 (Manufacturing and/or assembly or installation of electronic equipment or optical products) in Section C (Investment Activities or Investment Activity Categories in the Industrial Sector) of Annex I of Sub-Decree 139, which forms part of the Negative List. This amendment introduces point C.12.15, which pertains to the manufacturing and/or assembly or installation of electronic cigarettes and other similar devices.
This inclusion entails that all manufacturing and/or assembly or installation of electronic cigarettes and other similar devices in Cambodia will not be eligible for registration as a qualified investment project with the Council for the Development of Cambodia. Hence, these activities will not be eligible for the investment incentives provided under the Law on Investment.
If you have any queries on the above, please feel free to contact our team members, who will be happy to assist.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
