More ICT investment needed: businessmen
March 22nd, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, News Source
CAMBODIA’S economy can “leapfrog” by developing its information and communications technology (ICT) industry, but the government is not spending enough on ICT infrastructure to attract private investments, business leaders said at a seminar in Phnom Penh yesterday.
“What has been seen over the last 20 years is that countries can leapfrog from a very low end of development to a very high end by using ICT, without going through the normal [development] process,” said India’s Ambassador to Cambodia, Dinesh Patnaik. …
Low Wei Xiang
http://www.phnompenhpost.com/2013032264620/Business/more-ict-investment-needed-businessmen.html
Export plans on hold
March 22nd, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Exports, Industry, News Source
Local instant noodle company Men Sarun failed in its plan to export canned noodles to US markets this year, and an official confirmed that failures stemmed from both the unstable market price and increasing costs of transportation.
Choun Kol, deputy general director of Men Sarun Investment, told the Post that the export plans were temporarily suspended, though producing machines have already been imported but not yet been installed.
According to information he received from his business partners in the US, the cost of transportation has increased to around $6,000 per container in recent months, from about $4,000 earlier in the year. The move stemmed from increasing gas prices. …
Rann Reuy
http://www.phnompenhpost.com/2013032264621/Business/export-plans-on-hold.html
Million-dollar machine sweetens outlook
March 21st, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Exports, Imports, News Source, Trade
Local food producer Ly Ly Food Industry had invested about $1 million for a Chinese-made machine to improve production and food quality as it prepared for the coming regional economic community, the company’s owner said yesterday.
Keo Mom said a tremendous amount of goods from neighbouring countries would flow into the Cambodian market in 2015, when the ASEAN Economic Community (AEC) is scheduled to be launched.
She said her company had imported the machine to increase efficiency. …
Meng Saktheara, director-general of the General Department of Industry at the Ministry of Industry, Mines and Energy, said many Cambodian-made products were superior in quality to imported goods. …
Rann Reuy
http://www.phnompenhpost.com/2013032164553/Business/million-dollar-machine-sweetens-outlook.html
Telecom revenue rose in 2012
March 20th, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, News Source
CAMBODIA Post (CP), which plans to list on the local bourse, earned 8.1 per cent more revenue year-on-year in 2012, driven in part by its recent transformation from a wholly state-owned delivery company into a semi-autonomous entity.
Revenues last year hit more than $4 million, compared with $3.7 million in 2011, CP director general Ork Bora said. The company was partially privatised by the Ministry of Posts and Telecommunications in 2011, a move intended to improve its services and management to compete with the numerous private delivery companies. …
The Post reported earlier this year that Telecom Cambodia, also under the Ministry of Posts and Telecommunications, lost about $14 million in 2011 and $10 million last year.
May Kunmakara
http://www.phnompenhpost.com/2013032062037/Business/telecom-revenue-rose-in-2012.html
Motorcycle lease firm plans to expand market share
March 19th, 2013, The Phnom Penh Post, Banking & Finance, Business & Commercial Development, Domestic Investment, Financial Services, News Source
CAMBODIA’S first financial leasing company plans to rev up its market share for motorcycle financing from 15 to 45 percent starting this year.
GL Finance plans to do so by increasing its number of branches here from 11 to 36, said Mitsuji Konoshita, chairman of Group Lease, the Thai-based parent of GL Finance.
The expansion will start in July this year, said GL Finance’s executive director, Christophe Forsinetti, and the branches will continue providing leases for motorcycles with partner Honda. …
Low Wei Xiang
http://www.phnompenhpost.com/2013031962005/Business/motorcycle-lease-firm-plans-to-expand-market-share.html
More SIM cards sold, providers to shrink
March 18th, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Foreign Investment, Industry, News Source, Telecommunications
Sales of SIM cards reached 19.7 million last year, a 21 per cent rise from the 16.2 million sold in 2011, data from the Ministry of Post and Telecommunication (MPTC) shows. …
In contrast to the use of SIM cards, the number of telco operators decreased.
In 2011, eight such companies operated in Cambodia. Only six were left at the beginning of this year after Hello Axiata bought Latelz, which owned Smart Mobile, and Mfone filed for bankruptcy. …
Hor Kimsay
http://www.phnompenhpost.com/2013031861984/Business/more-sim-cards-sold-providers-to-shrink.html
Sweet Prospects
March 13th, 2013, Southeast Asia Globe, Agriculture & Agri-business, Agro-Industry, Business & Commercial Development, Domestic Investment, News Source, Trade
The sugar palm is a national symbol for Cambodia. Harvested by the country’s poor for centuries, no part of the palm tree goes to waste in a process that fashions the tree into a range of products. The durable and strong leaves are weaved into baskets, the sap is collected and processed into a nutritious sugar and, to this day, villagers from local communities come together to use the wood from the tree’s bark to build homes for families in need.
Given palm sugar’s usefulness, it did not take long for businessmen and agriculture experts to see the potential of the product. Following Cambodia’s accession to the World Trade Organisation in 2004, palm sugar grown in Kampong Speu province was awarded Geographic Indicator status in 2010, putting it on the shortlist of the world’s best quality goods. …
Philip Heijmans
http://sea-globe.com/sweet-prospects/
Investment law to be revised
March 8th, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Economics, Foreign Investment, International Relations, Labor, News Source
The government is planning to revise the Kingdom’s investment laws this year to draw more foreign direct investment as the country adjusts to the fast-changing regional and global landscapes, according to Secretary General of the Council for the Development of Cambodia (CDC) Sok Chenda Sophea.
Speaking at a business networking dinner prepared by the Cambodian Federation of Employers and Business Associations on Wednesday, Sok Chenda told more than 100 private-sector attendees that the investment law revision requires their participation and input in order to boost economic activities. …
Hor Kimsay
http://www.phnompenhpost.com/2013030861826/Business/investment-law-to-be-revised.html
Bonna Reality inks deal with Malaysian real estate developer
March 8th, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Foreign Investment, Land Tenure, News Source, Real Estate
Bonna Realty Group yesterday signed an agreement with the National 6A Investment, a Malaysian real estate developer, to be an authorised sales agent for a 10-storey condominium that is currently being constructed and is expected to be finished by the end of 2014.
The National 6A Investment Co, Ltd had invested millions of dollars in building the 10-storey condo in the capital’s Chroy Changva district. Construction began about two years ago and is now 60 per cent complete. And Bonna Realty will begin finding tenants this month or next, said General Manager Nuon Ritty. …
May Kunmakara
http://www.phnompenhpost.com/2013030861822/Business/bonna-reality-inks-deal-with-malaysian-real-estate-developer.html
Extraction ahead of schedule
March 8th, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Extractive Industries, Foreign Investment, Mining, News Source
Mesco Gold has established drilling and exploration resources at the Phum Syrang prospect in Ratanakkiri province, targeting extraction by late 2014, three to six months ahead of schedule, according to a statement released by Angkor Gold, which holds the land concession.
The statement said Mesco had completed a resource estimate at the prospect and confirmed its economic viability. …
Daniel de Carteret
http://www.phnompenhpost.com/2013030861824/Business/extraction-ahead-of-schedule.html
Going black before going green
March 6th, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Energy, Environment & Natural Resources, Environmental change, Green Energy, News Source
HIDDEN in the labyrinth of Stung Meanchey province’s factories, the Sustainable Green Fuel Enterprise (SGFE) found a cleaner way to produce charcoal: from coconut shells and industry leftovers. It is still one of the principal sources of energy for cooking in urban areas.
Chief Executive Carlo Figà Talamanca runs his fingers through the black dust as he explains the production process. Resources – shells and burned wood from a neighbouring factory’s gasifiers – are numerous, but the output is still low due to the factory’s small capacity. …
The so-called char-briquettes, which cost 1,100 riel per kilogram, burn between two and five hours and produce less smoke.
According to Talamanca, they also contribute to the reduction of deforestation, saving “over 2,000 trees per year [or 10 hectares of natural rainforest] leading to a reduction of 1,250 tonnes per year of CO2 emissions.” …
Sarah Thust
http://www.phnompenhpost.com/2013030661774/Business/going-black-before-going-green.html
Cambodia launches arbitration body to deal with commercial disputes
March 5th, 2013, Xinhuanet News, Business & Commercial Development, Domestic Investment, Economics, Foreign Investment, International Relations
Cambodia officially launched the long-awaited National Arbitration Center (NAC) on Monday, aiming at enhancing business environment and attracting more local and foreign investors.
Speaking at the launching ceremony, Minister of Commerce Cham Prasidh said the government is committed to improving and enhancing Cambodia’s business environment and investment climate for both domestic and foreign investors. …
Xinhuanet Staff
http://news.xinhuanet.com/english/business/2013-03/04/c_132207640.htm
Japan to strengthen local SME’s capacities
March 5th, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Foreign Aid, News Source, Technical Assistance
The Japan International Cooperation Agency (JICA) announced yesterday that it will provide technical support for Cambodian small and medium-size enterprises (SMEs), strengthening their capacities through the establishment of a national policy, officials said.
Meng Saktheara, director-general of the General Department of Industry at the Ministry of Industry, Mines and Energy, said the Technical Cooperation Project (TCP), focusing on the strengthening of an SME support system, would increase small businesses’ competitiveness. …
Rann Reuy
http://www.phnompenhpost.com/2013030561745/Business/japan-to-strengthen-local-sme-s-capacities.html
The Snap Look at Software Business
March 4th, 2013, Business Circle Magazine, Business & Commercial Development, Domestic Investment, Foreign Investment, Industry, News Source, Telecommunications
IT businesspeople see the potential demand in business software. Ms. Sok Channda, CEO and President of ANANA Group, tells Business Circle Magazine that because most businesses need to be controlled and managed systematically, demand for software development is experiencing an upward trend, including Point of Sale (POS) systems, inventory management systems, and software for HR Management and Customer Relationship Management.
Software development companies have customers from a number of different business sectors, such as manufacturing and banking. Mr. Heng Chamroeun, president of T.O Group of software and hardware companies, says that almost every business is in great need of software for complex tasks such as HR and accounting. …
Business Circle Magazine
http://www.bcmagz.com/the-snap-look-at-software-business.html
Cambodia’s Public Debt
March 4th, 2013, Cambodian Business Review, Banking & Finance, Borrowing, Business & Commercial Development, Domestic Investment, Economics, Exports, Foreign Investment, Imports, Infrastructure, International Relations, Trade
According to the [inter]national Monetary Fund (IMF), at the end of 2011, the stock of Cambodia’s external public debt, including arrears, stood at around US 3.8 billion or 30 percent of GDP (24 percent in NPV terms). …
China remains the largest bilateral creditor, contributing to 40 percent of the total bilateral debt stock and 80 percent of bilateral debt disbursement during the past two years. In 1995, Cambodia concluded Paris Club agreements with France, Germany, Italy and Japan.
However, Cambodia remains in arrears to the Russian Federation and the United States (about 20 percent of total debt or 6 percent of GDP) and the status of negotiations of these negotiations of these arrears has remained unchanged since the last DSA. …
Cambodia has virtually no domestic public debt.
In early 2012, Cambodia adopted a new debt management strategy, aimed at managing debt risk, coordinating and implementing debt management policies, and developing debt management capacity. …
Despite the recent increase in global food prices, inflation would stay at 3-4 percent during 2012-13. …
The current account deficit including official transfers is projected to peak at 10 percent of GDP in 2012, reflecting moderating exports and large imports related to the power generation projects, but this deficit remains fully financed by FDI and official loans. …
The authorities also reiterated that new borrowing would be prioritized for investment sectors with high growth and social impact (e.g., roads bridges, ports and irrigation), and they would continue to monitor the concessionality of new loans.
Cambodian Business Review Staff, P.10
http://www.cambizreview.com/
Recent Development and Economic Outlook
March 4th, 2013, Cambodian Business Review, Banking & Finance, Business & Commercial Development, Construction, Domestic Investment, Economics, Electricity, Energy, Exports, Financial Services, Foreign Investment, Imports, Industry, Infrastructure, International Relations, Technical Assistance, Trade
The UN’s assessment suggests that Cambodia is one of the top five countries that have made significant progress toward meeting its MDGs by 2015. The poverty rate has dropped dramatically from 47.50 percent in 1993 to 34.70 percent in 2004 and 23 percent in 2011, due to ongoing reforms that promote inclusive growth and employment creation.
The recently published Doing Business 2013 also shows an improvement in the business climate as Cambodia moves to rank number 133 in 2013, up from 141 in 2012. …
The implementation of the 2012 Budget Law has been strong with the fiscal deficit projected to drop from 8.16 percent of GDP in 2011 to 5.79 percent GDP in 2012, due to a 3.20 percent increase in revenue collection and 1.86 percent decrease in expenditures. …
The Cambodia Economy continues to perform well in 2012 supported by the robust export and tourism growth, and rebound in construction activity.
While the medium-term outlook is favorable, more needs to be done to ensure the achievement of MDGs by 2015 and the improvement of the standard of living there. …
Der Jiun Chia and Sovannarith Kith, P.14
http://www.cambizreview.com/
Finance Minister Lauds Boeng Kak’s Tax Bill
February 28th, 2013, The Cambodia Daily, Business & Commercial Development, Disputed Land, Domestic Investment, Economics, Land Tenure, News Source, Real Estate
The Finance Ministry has sent a letter to well-known businesswoman Choeung Sopheap thanking her for paying her taxes on the highly controversial filling in of Phnom Penh’s Boeng Kak lake, and holding her firm up as an example of corporate professionalism.
Though Shukaku Inc., which is run by Ms. Sopheap and her husband, CPP Senator Lao Meng Khin, has been subjected to years of criticism and protests for its role in the forcible eviction of some 3,000 families from around the now filled-in lake, Finance Minister Keat Chhon said the firm was a good partner with the government in reducing poverty and developing the country. …
The minister made no mention in his letter of how much Shukaku paid in taxes for filling in the lake, and Finance Ministry officials declined to comment. …
Khuon Narim and Zsombor Peter
http://www.cambodiadaily.com/news/finance-minister-lauds-boeng-kaks-tax-bill-11863/
Thai Representative Meets With Koh Kong ‘Blood Sugar’ Families
February 28th, 2013, The Cambodia Daily, Agriculture & Agri-business, Agro-Industry, Business & Commercial Development, Disputed Land, Domestic Investment, Farming, Farmland, Foreign Investment, Land Tenure, News Source
Some 200 Koh Kong farmers locked in a long-running land dispute with two sugar plantations met Tuesday with a representative of the Thailand-based owners for the first time since the land dispute began in 2006.
Khamrom Phochai, a Thai national and representative of Thailand’s Khon Kaen Sugar Industry, the firm that holds a 70 percent stake in the two 10,000-hectare plantations, said he was appointed only recently to investigate the land dispute and had visited the area to follow up on a report from local government officials. …
“After today’s meeting, I realized that there are 200 families still in dispute and asking for their land back,” he said. …
Preah Vihear Families’ Land Issues Go Unheard
February 28th, 2013, The Cambodia Daily, Business & Commercial Development, Disputed Land, Domestic Investment, Land Tenure, News Source
About 50 families living on the site of the long-discussed Preah Vihear airport went to the provincial hall yesterday to request that local officials reconsider their earlier decision to refuse them land titles on the grounds that the airstrip would soon be rebuilt. …
Villagers attended a provincial council meeting yesterday in an attempt to persuade provincial governor Oum Mara to allow them to remain on the airport land – or compensate them fairly if they are forced to move, said Breah Chhorn, deputy chief of Bosen village in Pallhal commune. …
Mech Dara P.17
www.cambodiadaily.com
Regional Bank, IMF Note Risks to Government’s Dam Guarantee
February 21st, 2013, The Cambodia Daily, Business & Commercial Development, Construction, Disasters & Disaster Management, Domestic Investment, Economics, Electricity, Energy, Foreign Investment, Hydroelectricity, Infrastructure, News Source
The government’s guaranteed bailout of major infrastructure projects, such as the future 400-megawatt hydropower dam in Stung Treng province, requires a thorough assessment of forecasted risks – a capacity which the government currently does not possess, an Asian Development Bank (ADB) official said yesterday.
Speaking on the sidelines of the 2013 Cambodia Outlook conference in Phnom Penh, Eric Sidgwick, country director of ADB, declined to comment directly on the $781 million Lower Sesan 2 dam, but said that in regards to public-private partnership projects, he would advise for the government to start small in terms of projects and risks. …
Dene-Hern Chen and Kuch Naren
http://www.cambodiadaily.com/news/regional-bank-imf-note-risks-to-governments-dam-guarantee-11269/