Sector: Banking and Finance

January 4, 2021

On 1 December 2020, Cambodia’s public utility the Electricité du Cambodge (“EDC”) launched a tender for the second phase of its National Solar Park project. The first phase, 60MW, had been won by Prime Road Alternative of Thailand after a competitive tender in 2019. Highlights of this note Prime Road is the one to watch, […]

December 29, 2020

The Central Bank of Myanmar (“CBM”) has published a number of directives in the year 2020 many of which are aimed at supporting the banking sector in an economy that is going through complexities triggered by the pandemic. We have produced below brief summaries of each of those directives as part of our yearly roundup […]

December 4, 2020

Clients have been often raising queries relating to the process and actions required to arrange for a travel to Myanmar by an expatriate employee. There are many cases when people have been outside of Myanmar since the beginning of 2020. For many, their previously issued Myanmar visas are about to expire. Although modern technology allows […]

November 30, 2020

The efficacy of a country’s legislative framework in regulating and implementing secured transactions significantly influences credit accessibility in the domestic market, an essential factor in driving economic growth. In recent years, the government of the Lao PDR has made several changes to its legal regime to facilitate trade and investment growth and increase the efficiency […]

November 29, 2020

In response to several COVID incidents linked to international travel and foreign diplomats, the Cambodian Ministry of Health is sharpening the measures applicable to most international travelers arriving in the country.

September 22, 2020

Introduction   The banking system in Cambodia includes commercial banks, specialized banks, microfinance institutions (“MFIs”), rural credit institutions, financial leasing companies, third-party processors, credit bureaus, representative offices, payment service providers, and money changers. Of these entities, commercial banks play a crucial role in providing financial services to the general public and businesses, ensuring economic and social stability, and the sustainable growth of the economy. As of this writing, there are 51 licensed commercial banks in Cambodia; […]

August 31, 2020

Employers should be aware that 2021 labor compliance deadlines are approaching. The period to apply to the Ministry of Labor and Vocational Training (“MLVT”) for the 2021 quota approval for foreign employees is now open and runs from 1 September 2020 to 30 November 2020. Applications for work permit renewals for 2021 are to be […]

August 27, 2020

Today sees the entry into force of the new Law on Land No. 70/NA dated 21 June 2019 (the “2019 Land Law”), which among other things, includes new provisions concerning the limited ownership of land-use rights by foreigners under certain circumstances, and the limited ownership of individual units in a condominium or apartment building. This […]

August 25, 2020

The Law on Insurance (amended) No. 78/NA dated 29 November 2019, (the “Amended Insurance Law”) came into effect on 14 April 2020, after it was promulgated by the President of the Lao PDR on 10 January 2020 and published in the Official Gazette on 30 March 2020. The Amended Insurance Law has effectuated several major […]

July 30, 2020

The Corona Pandemic hits Myanmar nearly at the same time as the new Insolvency Law 2020 (“the IL” was enacted on 14 February 2020). We all hope that the damage to the Myanmar economy will be as limited as possible, but it does not hurt to prepare for tough times ahead. Highlights of this note […]

July 29, 2020

On 9 July 2020, the Central Bank of Myanmar (“CBM”) published Instruction no. 3/2020 (the “Instruction”), introducing new principles for regulating the non-bank financial institution (“NBFI”) sector. The Instruction has also been circulated to all NBFIs. The new rules seem to align the NBFI sector with the banking sector, including obligations for NBFIs to: Specify […]

May 28, 2020

On 20 May 2020, Cambodia’s State Secretariat of Civil Aviation issued new rules for international travelers arriving in Cambodia. The new regulation addresses the problem of Cambodian and overseas nationals coming (back) to the country during the pandemic. A Cambodian national who returned from the Philippines that very same day was discovered to have COVID-19. […]

May 8, 2020

The evolving pandemic has substantial implications on all sectors and forms of business. In this report VDB Loi banking and finance experts are looking in particular detail into possible impact on lending transactions taking into account the local practices and regulatory regime in several jurisdictions in Southeast Asia. There has been quite a surge in […]

April 3, 2020

With the recent drastic measures taken by the government of the Lao PDR to control the spread of COVID-19 in the community, the economy is in a precarious position as trade, investment, tourism, and growth have come to an indeterminate halt. As per the World Bank, the global economy could shrink by 1 per cent […]

April 2, 2020

In response to the current economic situation caused by the COVID-19 pandemic, and to relieve the burden on borrowers facing financial hardship, the National Bank of Cambodia (“NBC”) has issued Circular No. T7.020.001 directing banking and financial institutions (including microfinance institutions) in Cambodia (“Institutions”) to be flexible with regard to debt repayment by offering loan […]

April 1, 2020

On 29 March 2020, the Prime Minister of the Lao PDR issued Order No. 06/PM (“Order 06”) calling for suspension of all nonessential businesses effective from 30 March 2020 until 19 April 2020. The order prohibits all nonessential in-person communications and travel, and requires everyone, including government employees, business owners, and foreign workers, to stay […]

March 31, 2020

With new travel documentation requirements, flight cancelations, and closed borders, many have found themselves stranded in Myanmar. From tourists forced to extend their holidays, residents with stay permit to business visitors running close to expiry of their 70-day business visas, they all faced the same issue – how does one stay in Myanmar legally and […]

March 26, 2020

On 23 March 2020, in response to the spreading of COVID-19, the Ministry of Labor and Vocational Training (“MLVT”) issued notification 009/20 requiring all employers to provide an updated list of the contact telephone numbers of all employees to the Department of Labor Inspection of the MLVT by 26 March 2020. Lists are to be emailed to [email protected] […]

March 26, 2020

Sickness is a paid leave permitted by the Labor Law (Article 169). Therefore, during sickness, employer needs to pay the salary of his employee. Highlights of this note If an employee falls sick, who pay the salary? What if an employee wants to stay home to take care of children or school closed or child […]

March 23, 2020

With the emergence and spread of COVID-19, the sale of protective masks and antiseptic disinfectant have greatly increased to the extent that it has become difficult to buy them at a reasonable price.