Legal and Tax Updates

Legal Update: Instruction on the Implementation of ILO-BFC Project in Cambodia and Export Requirement under GSP

Issue: No. 014P/21 – 4 March 2021

Covering Sector: Textile, Garment and Travel Goods Export Sector

On 22 February 2021, the Ministry of Labour and Vocational Training (“MLVT”) and Ministry of Commerce (“MOC”) released an Instruction No.021/21 on the Implementation of Better Factories Cambodia (“ILO-BFC”) project in Cambodia, with regard to the export of textile, garment and travel goods under Generalized System of Preferences (“GSP”). This Instruction is following a Joint Prakas between MLVT and the MOC which aims to put in place an additional requirement for the export of the above products under the GSP.


Pursuant with the Instruction, owners or directors of factories/enterprises, or sub-contractors in textile, garment and travel goods export sectors, who request the right to export goods under the GSP in accordance with Prakas No. 232 dated 26 November 2013 on the Modification of Procedures of Exporting Goods shall fulfil the following conditions:

1. Being member of ILO-BFC : The establishment/enterprise shall be registered with ILO-BFC and pay contribution fee to the project through Garment Manufacturers Association in Cambodia (“GMAC”) to support the project.
2. Obtaining Certificate of Labour Compliance

(Being applicable from 2022 onward)

: Certificate of Labour Compliance issued by MLVT’s Labour Inspector Team confirming the status working conditions of the establishment/enterprise shall be obtained.

We hope that the above legal update is helpful for your investment and help you to invest more confidently.


The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us:

SON Sokeng,


Managing Director

+855 12 885 870

Sokeng has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He advised and assisted various companies in various legal compliance issues, major investment projects and in conducting legal due diligence for major M&A and IPO projects. He has led many legal counsel teams to advise and assist ACLEDA Bank Plc., Phnom Penh Autonomous Port and other SMEs in the process of listing and proposed listing on the Cambodia Securities Exchange (CSX).
NOEUM Sokvichhai,


Head of Corporate, Commercial and Investment Practice Group

+855 12 826 785


Atty. Sokvichhai has more than 6 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, investment incentives & qualified investment project, and labour & employment related issues. Sokvichhai also assists major business in preparing various commercial agreements. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company.