Foreign Investment in Agriculture in Cambodia CDRI Working Paper ...

market access, the government has encouraged large-scale fishery investments by improving
infrastructure.
4.2. Forestry
Generally, the Forestry Administration (under MAFF) is in charge of the general
governance of forests and forest resources in Cambodia in accordance with National Forestry
Sector Policy and the Forestry Law (2002). The sector comes under two levels of management,
i.e. central and local government 7 . Prior to 2000, forest harvesting had been rampant, rapid and
widespread. The government’s cancellation of 40 percent of all forest concessions in the early
2000s, equivalent to almost half of the original area under concession, as well as its moratorium
in January 2002 on logging in concession areas and log transportation, has significantly reduced
rampant logging (World Bank 2004a:19, 76).
Another measure introduced to clamp down on illegal natural forest products export is
the sub-decree on forest and non-timber forest products allowed for export and import, dated 20
November 2006. This new rule allows the export of all kinds of processed and non-processed
timber products derived from sustainable tree plantations, which offers room for private/foreign
investors to engage in the sector through ELCs under the governance of MAFF (see discussion
on ELC in section 4.5). It should be noted that there is no specific rule to promote investment
in the forest sector.
In addition, the government has put efforts into forestry reform by establishing forestry
policies, including Law on Concessions and sub-decrees on Economic Land Concessions and
Forestry Concession Management, forming Forestry Communities fand other regulations
related to environment protection, such as Law on Environmental Protection and Natural
Resource Management and Sub-decree on Environmental Impact Assessment. These aim to
ensure the livelihoods of local communities, as a large number of people in rural communities
depend on forests. With the help from the international community, people are educated on how
to properly use and protect the forests. In this way, sustainable development can be achieved
and biodiversity protection guaranteed. Once forests are well protected, local communities
can benefit both economically and non-economically 8 from community forestry as they have
secured access to land and legal rights on forest use 9 . Across the country, forestry communities
have reported significant reduction in illegal activities within the forest areas under their
management. Protecting forests has direct impact on wildlife and biodiversity, which in turn is
conducive to sustainable development and poverty reduction.
Therefore, the government has shifted more focus to raising environmental awareness
by educating people and students on the conservation, protection and sustainable management
of natural resources. In addition, the severe penalties meted out to those involved in illegal
logging have been highly profiled in the media and offenders have been jailed. In spite of this
enforcement, illegal logging has been subsequently reported.
7 For detailed information on the function and structure of Forest Administration, see http://www.forestry.gov.
kh/AboutFA/MandateEng.html
8 Non-economic benefits include spiritual/customary values (for ethnic minorities) and training, social capital
and networking.
9 Ministry of Foreign Affairs of Denmark, Community-based Natural Resources Management: Lessons
Learned from Cambodia, Technical Advisory Services, December 2010
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