AEON Microfinance (Cambodia) Co, part of Japan-based AEON Group, said sales by instalment for electrical appliances and motorbikes increased by 715 per cent in the first quarter of 2013 year on year, a trend industry experts say will grow further with increasing demand for electronics.
Started in December 2011, loan disbursement... continue
After reaching agreement late last month, the contract for a $90 million concession loan from Japan to Cambodia was officially signed in Phnom Penh yesterday to improve 83.5 kilometres of National Road 5. …
The construction is scheduled to start in June 2015 and will be completed by May 2018. The loan’s interest rate is 0.01 per cent per annum with a repayment period of 40 years including a 10-year grace period. …
Prime Minister Hun Sen said Wednesday that he hoped land being registered to rural families as part of the government’s nationwide land-titling program would be used to cultivate rubber trees in order to help the country compete with Vietnam as the world’s third-largest rubber exporter. …
Speaking at the opening of a $26 million rubber plantation and processing factory in Stung Treng province, Mr. Hun Sen said that by utilizing some of the 2 million hectares of land that has been registered under his titling program, Cambodia could reach its target of 840,000 hectares of rubber plantations within five years. …
Presently, there are 280,000 hectares of land planted with rubber trees, 118,000 of which is inside ELCs, while another 107,600 is on small-scale farms, Mr. Hun Sen said, adding that about 1 million of the approximately 1.5 million hectares of land that has been leased to private companies as ELCs are registered as rubber plantations. …
Despite its growing rubber industry, much of Cambodia’s rubber is transported as liquid resin over the border to Vietnam to be processed, meaning Cambodia looses out on much of the value-added exports once the rubber has been processed.
A recent string of disasters rocking Bangladesh’s garment industry has highlighted its factories’ shocking safety record, and stoked optimism that giant fashion brands will flock to move their orders to countries like Cambodia.
But Cambodia’s garment industry has not experienced any major deluge of business so far, industry insiders said, and some even believe this may remain so for the long term, as Bangladesh tries to refurbish it image.
“So far, there have been no positive effects on Cambodia,” said the Garment Manufacturers Association in Cambodia’s (GMAC) chairman, Van Sou Ieng. “There is just an increase in short-term orders to replace the non-delivery from Bangladesh [due to the recent disasters], but our factories have no capacity to take these up.” …
The beauty business in the Kingdom is growing rapidly as incomes are rising and the middle-class is growing, industry insiders told the Post yesterday.
In the first three months of this year, the Kingdom imported cosmetic products worth $9.9 million, an increase of 130 per cent compared with the same period last year, import data from the Ministry of Commerce showed. …
According to industry insiders, young Cambodians open to Korean culture and lifestyle are a main driver for the development of the industry. …
Prime Minister Hun Sen yesterday lashed out at the opposition party’s concerns over the interest rates charged by commercial banks to farmers.
SRP lawmaker Yim Sovann said commercial banks in Cambodia charge customers very high interest rates, and said it is much higher than in other countries. …
However, the premier, speaking at the opening of a new rubber processing plant in Stung Treng province said Sovann’s words do not apply with the market practice and the real situation in Cambodia’s economy. …
“Based on the market economy, they don’t allow the state to handle commercial bank. We have a national bank which cannot provide that serivce to customers. If people have money to deposit at the bank, they will get five per cent, some give four per cent and other 5.6 per cent [interest rate],” said Hun Sen. …
“To lower the interest rate to one per cent, it would kill the bank … They are against the political protectionism,” he said. …
According to the statistics from the National Bank of Cambodia, the Kingdom’s 32 commercial banks have lent $5.49 billion to about 1.6 million borrowers by November 2012, up 30 per cent year-on-year. …
With the potential for vast state revenues from oil extraction and mining in coming years, Cambodia is currently failing to manage its nascent extractive industries according to a think tank.
New York-based Revenue Watch Institute yesterday launched its 2013 Resource Governance Index, which included Cambodia for the first time. It looked at 58 countries, assessing governments’ reporting practices, control of corruption and rule of law in the oil, gas and mineral sectors. …
“While Cambodia received a fairly high score for its institutional and legal settings, the nation’s very low scores in its reporting practices and enabling environment accounted for its low ranking in resource governance,” a statement from Cambodians for Revenue Resource Transparency, a local Partner of Revenue Watch says. …
Cambodia’s cassava exports reached 245,438 tonnes in the first quarter this year, a 47 per cent decline quarter-on-quarter, from 465,640 tonnes in the final quarter of last year, according to statistics from the Ministry of Commerce released early this month.
While most exports went to Thailand, Vietnam and China, where processing takes place, Thailand also is a major market for Cambodian cassava. Officials in border provinces and traders said Thailand’s restriction on cassava imports early this year and informal exports that have not been recorded are the reasons for the decline.
In Sovanmony, director of the agronomy, soil and improvement of agricultural department in Battambang province, a major cassava plantation area in Cambodia, told the Post yesterday that it is estimated that 30 to 35 per cent of the total exports go to Thailand without being officially recorded. …
During the first three months, the total value of Cambodia’s cassava exports reached $11.7 million, about 30 per cent of the total export value last year. However, the figure from the Ministry of Commerce shows that the export volume is only high during the first few months of the year.
The Kingdom imported 412,190 tonnes of petroleum in the first quarter of 2013, compared with 471,000 tonnes in the same period the previous year, a decline of 12 per cent, according to the Ministry of Commerce.
A private sector representative said the drop does not mean a slowdown in production but came as a result of more stock being kept over from 2012 because of price fluctuations.
The data showed that between January and March of this year the country spent $397 million on petroleum, down 15 per cent from $469 million during the same period last year. …
Bilateral trade volume between Cambodia and Japan had amounted to 180 million U.S. dollars in the first three months of this year, up 14 percent compared with the 158 million U.S. dollars at the same period last year, a report of the Japan External Trade Organization (Jetro) showed Tuesday. …
During the January-March period this year, Cambodia’s exports to Japan was worth about 128 million U.S. dollars, up 24 percent from 103 million U.S. dollars at the same period last year, while Japan’s exports to Cambodia valued at 52 million U.S. dollars, down 5 percent from 55 million U.S. dollars, the report said. …
Japan is one of the largest aid providers to Cambodia, but trade and investment ties between the two nations remain low. …
On the investment side, Japanese investors had invested about 300 million U.S. dollars in Cambodia in the last 3 years, according to a record released by Japanese Embassy to Cambodia in January.
Private car owners could soon be required to buy motor insurance if a planned law amendment gets the green light, stoking optimism that such a bill could put the brakes on Cambodia’s high rate of hit-and-run accidents.
Currently, only commercial vehicles, such as buses, legally require motor insurance. However, the Ministry of Economy and Finance – which oversees the insurance industry – has proposed that private car owners be forced to take out third-party liability insurance, which covers damages in an accident caused by the insured. …
The proposed amendment excludes motorbike owners because “they may not have enough money”, he said. The IAC also has to discuss premiums with the Ministry of Economy and Finance, although costs would, “of course, be cheaper” than current rates for commercial vehicles, to keep the proposed insurance affordable, he said. …
The new 100,000 riel banknote depicting the late King Father Norodom Sihanouk is not just a pretty historical token. It will also help inject much needed cash into the economy, according to the National Bank of Cambodia.
Although take-up will occur as older banknotes of other denominations deteriorate, the introduction of the new denomination will provide additional liquidity that is demanded by Cambodia’s rapid growth, NBC director-general Nguon Sokha said. …
Kang Chandararot, president of the Cambodian Institute for Development Study, is concerned that now is not the right time for increasing the liquidity volume in Cambodia. A strengthening dollar, “seasonal riel demand”, a lack of long-term growth and inflationary pressures from the Kingdom’s neighbours are all reasons increasing liquidity was “dangerous”, he said. …
The first three-day Koh Kong Investment and Trade Fair 2013 kicked off on Saturday, promoting trade and investment in the southern provinces of Cambodia with neighbours Thailand and Vietnam. …
“The [fair] is aimed at promoting trade and development in Koh Kong province and other border provinces in the southern region of the country, which is to further enlarge trade and the economy between Cambodian provinces, and with the provinces of Thailand and Vietnam that are boardering Cambodia in this southern region,” said Cham Prasidh, Cambodia’s Minister of Commerce. …
Cambodia’s promising animal feed sector will soon see support from a big pharmaceutical manufacturer which is now studying local demand for animal healthcare – a nearly untapped market.
“We intend to introduce animal health business in Cambodia for our farm products and feed mills,” Khalid Baig, Bayer’s country group head Southeast Asia, told the Post. …
According to animal welfare and production expert Ros Limhy, several thousand veterinarians are working in the Kingdom, mostly at the village or commune level. However, the key players in improving animal health in Cambodia would be the Village Animal Health Workers, who have been trained by non-governmental organisations (NGOs) and the public sector.
The International Fund for Agricultural Development (IFAD) is one of those NGOs. According to IFAD’s Country Operations Officer Meng Sakphouseth, 80 per cent of the villages in the Kingdom have at least one animal health worker. …
Following a considerable increase in Cambodia’s milled rice exports in the first four months of the year, Minister of Commerce Cham Prasidh said he was optimistic the Kingdom’s rice exports would reach the 2015 target of one million tonnes.
With this year’s export figures notably higher than those of the same period last year, Prasidh said he believed exports of milled rice would reach more than 300,000 tonnes in the first six months of the year, mostly absorbed by European markets. …
According to data from the Secretariat of One Window Service for Rice Export Formality, Cambodian milled rice exports reached 118,500 tonnes in the first four months of this year compared with 51,466 tonnes in the same period last year. …
The National Assembly of Cambodia on Friday ratified the agreement on maritime transport between the Association of Southeast Asian Nations (ASEAN) and China, saying the agreement is essential to develop trade and economic ties between ASEAN and China. …
“The agreement aims to facilitate and foster cooperation in passenger and cargo transport by sea among the signatories,” Nin Saphon, Chairwoman of the National Assembly’s Commission on Public Work, Industry, Mines, Energy, Commerce, and Land Management, said during the session. …
The steady growth of franchises from overseas is likely to continue as young, moneyed Cambodians seize the opportunity to bring name brands into the country, a bank official said yesterday. …
Hoping to help its customers and others invest in franchises, Malaysia-based CIMB Bank yesterday organized a talk on franchising at the Malaysian Embassy in Phnom Penh. …
Thida Heng, CIMB head of retail financial services, said franchises were a reliable investment for young Cambodians looking to get into business and move away from property investments following the 2008 property crisis. …
Food and drink franchises are gradually setting up in Cambodia, taking advantage of the market provided by an increasingly wealthy urban population. …
Cambodian Confederation of Unions president Rong Chhun yesterday appealed to landlords with properties close to garment factories not to take advantage of the industry’s minimum wage increase by raising rent prices.
The minimum monthly salary in the garment sector – Cambodia’s biggest export industry – officially climbed from $61 to $75 this month, and Chhun said rent prices were already showing signs of following suit. …
Some workers had been told their rent will increase by 15 per cent at the end of this month, Chhun said. …
Moeun Tola, head of the labour program at the Community Legal Education Center, said he had heard similar stories from garment workers in Phnom Penh, Kandal and Kampong Speu. …
Delta Electronics (Thailand), one of the world’s leading producers of power supplies and electronic components, plans to expand to Cambodia and Myanmar, the Bangkok Post reported on Wednesday.
“There is no indication of a specific timeframe for the expansion, but the company sees these countries . . . as distributing channels of supply chain to other Asian and European countries,” the report said.
Asian Development Bank deputy country director Peter Brimble said, while he cannot speak for Delta about their reasons for moving to Cambodia, generally “regional automotive and electronics firms are looking to expand and spread their operational risk, including firms based in Thailand.” …
Cambodia saw a slow rise in trade volume with Vietnam and a slight decrease with Thailand in the first quarter of this year, according to the figures provided on Wednesday. …
The figures said Cambodia’s total exports to Vietnam was worth 221 million U.S. dollars during the period, up 10 percent, while the country’s imports from Vietnam valued at 791 million U.S. dollars, up 10 percent. …
On the bilateral trade ties with Thailand, the total trade volume between Cambodia and Thailand had amounted to 1.1 billion U. S. dollars during the first quarter of this year, down 2.3 percent from 1.13 billion U.S. dollars at the same period last year, according to the reports released by Thai embassy to Cambodia.
Cambodia’s export to Thailand was 101 million U.S. dollars, up 19 percent, while Thailand’s export to Cambodia was 1 billion U.S. dollars, down 4 percent, it said.
