THERE is a mood of optimism in Cambodia following the signing of a constitution by the new Government and the restoration of King Norodom Sihanouk.
Although the stage is set for a climate of political stability, no one, least of all the Cambodians, expects any immediate rush of overseas investors.
Australian Trade Commission (Austrade) manager Seng Lo said there was ''huge potential'' in Cambodia once the Government set up the revised foreign investment law and was able to offer investors assurances and guarantees.
''I think it's still early to invest in Cambodia because to talk about investment there needs to be security and protection by the law and stable government policy,'' Mr Lo said.
Cambodian Finance Minister Sam Rainsy has promised to revamp and update the country's foreign investment law and hopes to attract big-league investors with tax holidays, cost incentives and government-backed guarantees.
Mr Rainsy said there was potential for foreign investors to help restore and build infrastructure, establish a tourism industry or invest in agricultural and aquaculture, two of Cambodia's biggest natural resources.