Cambodia gets rolling
May 6th, 2013, Bangkok Post, Business & Commercial Development, Economics, Foreign Investment, Industry, International Relations, Production, Social Concerns, Trade
The small but sleek Angkor Car can easily navigate the narrow streets of Cambodia, while with an electric engine saves on expensive fuel costs. It may cost $10,000 per vehicle, a bit steep for most local people, but the vehicle is a welcome testimony to Cambodian ingenuity.
And it is well timed as well, as Cambodia’s automotive sector is just beginning to make some noise. The number of cars that are registered with the government more than doubled since 2006 to 231,352 at the end of last year, according to data from the Ministry of Public Works and Transport.
The tendency to buy high-end automobiles is also on the rise, growing 27% in 2011 compared to the year before, according to the World Bank. …
In fact, a number of distributors recorded growth in 2012 as Toyota Cambodia reportedly sold 800 units, up from 500 in 2011, while Ford recorded 15% growth in sales. …
Cambodia charges some of the highest import taxes on vehicles in the world. Whether you are a car distributor or somebody looking to ship in a vehicle from home, you will be will have to pay a 45% excise tax, a 35% import duty and a 10% added value tax on the value of any vehicle brought into the country. Those taxes compounded with logistics fees and other “informal costs” can bring the total cost of importing a car well over its original cost, making it almost impossible for some distributors of imported cars to turn a profit. …
Where the auto market has many dark corners, there is some light as high wage costs abroad have resulted in some manufactures establishing assembly plants in the country. Hyundai opened its $62-million assembly plant in Koh Kong’s special economic zone in January 2011, while Ford opened an assembly plant in Preah Sihanouk province last year able to produce 6,000 vehicles a year.
“When you look at China, the wages are far higher than they once were and if you look at neighbouring Thailand, the minimum wage is also higher, so in Cambodia, you are saving on wages between 75% and 80%, and those savings will go right into your bottom line,” Sharaf said.
Bangkok Post Staff
http://www.bangkokpost.com/business/marketing/348783/cambodia-gets-rolling
Bids called on Cambodia rail link
April 2nd, 2013, Bangkok Post, Business & Commercial Development, Construction, Foreign Aid, Industry, Infrastructure, International Relations, Technical Assistance
The State Railway of Thailand (SRT) will call an e-auction on April 10 on work to renovate damaged tracks connecting Thailand with Cambodia at the Aranyaprathet-Poipet crossing, Transport Minister Chadchat Suttipan said on Tuesday. …
The railway agency estimated the project will cost 2.8 billion baht. It will include rehabilitation of the six kilometres of tracks from Aranyaprathet station to Klong Luek, opposite Poipet district in Cambodia, and improvement of the existing tracks from Klong Sip Kao station to Aranyaprathet.
A bridge between Klong Luek and Poipet must be improved, and negotiations will take place with Cambodia on possible cost-sharing of the construction, the minister added. …
The one-metre gauge tracks will connect with the Cambodian railway to Phnom Penh and onward to Ho Chi Minh City, Vietnam.
Cambodia is improving its 337km line from Phnom Penh to Poipet, expected to be completed some time between next year and 2015, according to the Phnom Penh Post.
The project is financed by a loan from the Asian Development Bank, and also includes the 256km line linking Phnom Penh and Sihanoukville. The line was reopened in December last year.
Bangkok Post Staff
http://www.bangkokpost.com/breakingnews/343563/thailand-to-open-bid-to-rebuild-tracks-with-cambodia
PM to end missing link to Cambodia
March 30th, 2013, Bangkok Post, Business & Commercial Development, Construction, Infrastructure, International Relations
Prime Minister Yingluck Shinawatra promised on Saturday to complete a missing rail link with Cambodia to foster closer ties with the neighbouring country.
Ms Yingluck inspected the damaged tracks from Aranyaprathet district in Sa Kaeo to the border with Poipet in Cambodia and directed officials to speed up restoring the connection.
The six-kilometre section has been left unmaintained for years, making rail travel to and from Cambodia impossible. The link is part of the 10 Asean countries’ plan to build a regional railway network to connect with China. …
Bangkok Post Staff
http://www.bangkokpost.com/breakingnews/343138/yingluck-to-end-missing-link-to-cambodia
Rice trade zone to be set up in East
March 25th, 2013, Bangkok Post, Agriculture & Agri-business, Business & Commercial Development, Exports, Farming, Imports, International Relations, Rice, Trade
The Department of Foreign Trade plans to set up a “rice trade zone” project in the East to process Cambodian rice for export to other countries.
Tikhumporn Natvaratat, deputy director-general of the department, said his organisation plans to implement the project in Chanthaburi, Trat, Sa Kaeo and Chachoengsao provinces. …
The department will also decide on the types of rice that Thailand would import from Cambodia to process for export to other countries, with paddy and brown rice among the options being considered.
“If Thailand exports the rice to the European Union, it may benefit from the privileges under the Generalised System of Preferences that the EU offers to Cambodia because the origin of the rice is Cambodia,” Mr. Tikhumporn said. …
[Mr. Tikhumporn] said Thailand might initially import 100-1,000 tonnes of rice from Cambodia for the export project. …
Bangkok Post Staff
http://www.bangkokpost.com/news/local/342199/rice-trade-zone-to-be-set-up-in-east
World’s largest freshwater fish threatened
March 13th, 2013, Bangkok Post, Business & Commercial Development, Construction, Electricity, Energy, Environment & Natural Resources, Environmental change, Hydroelectricity, Infrastructure, International Relations, Lakes/Rivers, Social Concerns, Water
The 16th Conference of Parties of the Convention on International Trade in Endangered Species (Cites) has brought thousands of delegates from over 150 countries to Bangkok to discuss cross-border cooperation, sustainable use of biodiversity and transnational endangered species issues. …
Construction has already begun on the first mainstream dam on the lower Mekong, and without improved planning and cooperation between Mekong countries, mainstream dams will have serious transboundary environmental impacts.
The first of 11 dams planned for the mainstream of the lower Mekong River, the Xayaburi dam will likely have a negative impact on biodiversity, sediment and nutrient flow and fisheries production, undercutting the livelihoods of people living along the river in Thailand, Laos, Cambodia and Vietnam.
While many studies suggest serious negative environmental impacts of dams on large rivers, detailed studies of the ways in which Mekong dams will effect migratory fish are lacking, which makes effective mitigation nearly impossible.
As the governments of Cambodia and Vietnam have already suggested, a new transboundary environmental impact assessment of the Xayaburi dam is necessary and must include rigorous research into the life cycles and migration patterns of Mekong fish, a topic which – despite the importance of the Mekong’s fisheries – has largely been ignored. …
The Bangkok Post Staff
http://www.bangkokpost.com/opinion/opinion/340170/mekong-dams-threaten-world-largest-freshwater-fish
Hana plugs into Cambodian market
March 8th, 2013, Bangkok Post, Business & Commercial Development, Construction, Foreign Investment, Garment Industry, Industry, Infrastructure, International Relations, Production, Textiles
Hana Microelectronics Plc is investing 1.5 billion baht to build a new factory in Lamphun and another in Koh Kong, the latter marking a plunge into the Cambodian market.
Chief executive Richard Han also hinted yesterday that the SET-listed electronic-parts maker could relocate some production from Thailand to Cambodia if it cannot cope with rising wages here over the next 3-5 years.
Wages in Cambodia are one-third those in Thailand but will certainly rise as well, he said.
“But the wages will grow faster in Thailand and China,” said Mr Han.
“Shoes and textiles are now the major industries in Cambodia. We are the pioneer in electronics.”
Some 120 million baht has been allocated for buying a 60-rai plot of land in the Koh Kong special economic zone, while 360 million is slated for the factory. …
The company achieved flat revenue last year, rising by 4% in US-dollar terms to $555 million and 6% in baht terms to 17.2 billion amid a weak global electronics industry. Net earnings edged up 3% to 1.66 billion baht on a continued combination of flood issues. …
The Bangkok Post Staff
http://www.bangkokpost.com/business/economics/339371/hana-plugs-into-cambodian-market
Greener Pastures
February 11th, 2013, Bangkok Post, Agriculture & Agri-business, Business & Commercial Development, Exports, Imports, Industry, International Relations, Production, Rice, Trade
Market competition resulting from costly domestic rice remains a key factor driving Thai exporters to seek openings in neighbouring countries where the rice trade is more prosperous. …
Exporters say their performance was weak last year, mirroring the country’s overall decline in rice exports, which plunged by 35% to 6.9 million tonnes.
Mr [sic] Wanlop said Capital Rice will begin exporting rice from its venture in Cambodia this quarter after a test run went smoothly.
The company, the country’s second-biggest rice exporter, is among several Thai firms seeking to enter the rice industry in Cambodia. …
Cambodia recently announced it will produce 9.3 million tonnes of rice paddy this year, with 4.6 million tonnes earmarked for domestic consumption. The upshot is that 4.7 million tonnes of paddy or 3 million tonnes of milled rice are for export.
All of this gives Capital Rice a chance to process and export rice for Cambodia _ [sic] especially to Europe, where duties are waived on certain items from less-developed countries.
Besides Capital Rice, other market leaders such as Asia Golden Rice are making Cambodia a part of their strategy for improved risk management. …
Bangkok Post Staff
http://www.bangkokpost.com/business/economics/335303/greener-pastures
Cheap gas for Cambodians rationed
February 9th, 2013, Bangkok Post, Business & Commercial Development, Economics, Energy, Imports, International Relations, Oil, Trade
Heavily subsidized prices for liquefied petroleum gas (LPG) and natural gas for vehicles (NGV) in Thailand draw dozens of cars daily from Cambodia to refill their tanks in this Thai border town.
But complaints that too many Cambodians are getting a free ride, or rather a very cheap one, have led to authorities rationing gas to drivers from the neighboring country.
LPG, which accounts for most of the sales to Cambodian drivers, costs 18.13 baht a kilogram in Thailand. The price is scheduled to rise to 24.82 baht in April but that’s still far less than the 45 baht the fuel costs in Cambodia. …
The price of NGV is also subsidized to promote the use of natural gas. PTT, the national oil and gas conglomerate, sells NGV at 10.50 baht/kg while the actual cost is 15.14 baht. …
Bangkok Post Staff
http://www.bangkokpost.com/breakingnews/335137/curbs-placed-on-cambodian-cars-refilling-gas-in-thai-border-town
The great mobile shake-out
February 5th, 2013, Bangkok Post, Business & Commercial Development, Domestic Investment, Economics, Foreign Investment, Industry, International Relations, Telecommunications
Mobile phone subscribers in Cambodia have had little to complain about in recent years. With six new operators entering the market since 2006, the result was oversaturation and an all-out price war as eight operators fought for a foothold in a country with fewer than 15 million people. …
“Most of the telecom companies in Cambodia were backed by large, wealthy companies. The aim [at that point] became for operators to build up their subscriber bases and a pricing war was started,” said Atip Rittaporn, the former chief executive of the now-insolvent Thaicom Plc subsidiary Mfone.
But that model was not sustainable for operators, who have to pay a revenue tax of 7-10% to the government as well as absorb high operating costs as revenues continued to dwindle. …
Malaysia’s largest telecom company, Axiata Group Bhd, operating in Cambodia under the Hello banner, announced on Dec 13 that it had agreed in principle to acquire the local operator Latelz Co Ltd in a deal worth $155 million.
Lawsuit-plagued Mfone declared only a few weeks later that it was insolvent, having to liquidate all its subscribers to former competitor MobiTel. …
Simon Perkins, chief executive of Hello Axiata, said Hello’s acquisition of Latelz, which operated as Smart in Cambodia, would allow his company to double its network coverage as well as give it enough total subscribers to become the second largest operator behind CamGSM’s MobiTel. …
Indeed, mobile operators have skipped out on paying hundreds of thousands of dollars owed to one another in interconnection fees. Such was the case in July when Hello, Smart and Vietnamese-owned Viettel (Cambodia) Pte filed several complaints to the government claiming that CamGSM, which operates under the MobiTel brand, owed them collectively more than $1.5 million. …
Bangkok Post Staff
http://www.bangkokpost.com/business/telecom/334187/the-great-mobile-shake-out
Capital ideas for developers
January 28th, 2013, Bangkok Post, Business & Commercial Development, Construction, Economics, Industry, Infrastructure, International Relations, Land Tenure, Real Estate
Peering out over the Tonle Sap River in Phnom Penh from a sixteenth-storey private balcony at the new Bellevue Apartments, one could watch for hours as cranes swing back in forth over all the new developments on the west side of the water. …
“Phnom Penh has become very attractive for investors now and it is easy to open a business, unlike what many years ago. It’s a very different time,” said David Cordier, the sales and marketing manager for the 143-unit Bellevue. …
In fact, Phnom Penh’s total apartment supply grew 22% to 2,576 units in total through the first half of 2012 compared to the same time in 2011, according to Asia Real Estate Cambodia. Of those units, 2,423 represent Grade’s A and B level units, while at least another 30 apartment projects are set to bring in another 734 units before 2014. …
By comparison, vacancies in Bangkok’s more than 7,000 Grade A serviced apartment units are much higher, at 22.7%, while 16.8% of Ho Chi Minh’s nearly 1,000 Grade A serviced apartment units remain empty, according to data by the international property services firm CB Richard Ellis. …
Bangkok Post Staff
http://www.bangkokpost.com/business/economics/332995/capital-ideas-for-developers
Rice exporter turns to Cambodia
January 25th, 2013, Bangkok Post, Agriculture & Agri-business, Business & Commercial Development, Economics, Exports, Imports, Industry, International Relations, Production, Rice, Trade
Capital Rice Ltd, Thailand’s third-largest rice exporter, is shifting some of its business to Cambodia as the Thai market shrinks because of government intervention that has diverted grain into state stockpiles or made it too expensive to ship.
“We have built a medium-sized milling house in Cambodia, expecting to start processing rice and export by the first quarter of this year,” Wanlop Pichpongsa, the deputy managing director, told Reuters. …
“We can’t deny that the intervention scheme has forced us to move to Cambodia as rice there is much cheaper than at home,” Wallop said. …
Cambodian paddy is trading at around 6,000 baht a tonne, giving an export price of $390 per tonne, a level that allows it to compete with India, Vietnam and Pakistan. …
China, a big ally, is also providing support, helping Cambodia develop irrigations systems, for example, and building mills. …
Bangkok Post Staff
http://www.bangkokpost.com/breakingnews/332629/disillusioned-rice-exporter-turns-to-cambodia
Government okays maize imports
January 22nd, 2013, Bangkok Post, Agriculture & Agri-business, Business & Commercial Development, Corn, Economics, Exports, Farming, Industry, International Relations, Production, Trade
The cabinet approved a plan for the Public Warehouse Organisation to import 450,000 tonnes of tariff-free maize from Laos and Cambodia. …
Another 250,000 tonnes of maize would be imported from Cambodia, with 100,000 tonnes in August and another 150,000 tonnes between November and January 2014 for use as raw material for animal feed production.
The maize imports aim to ease the tight supply in the animal feed market due to global supply shortfalls as a result of droughts. …
Bangkok Post Staff
http://www.bangkokpost.com/business/economics/331949/government-okays-maize-imports
Xayaburi dam stirs debate on Mekong River Commission
January 14th, 2013, Bangkok Post, Construction, Electricity, Energy, Environment & Natural Resources, Environmental change, Hydroelectricity, Infrastructure, International Relations, Lakes/Rivers, Water
When ministers from the four member countries of the Mekong River Commission and donors meet in Luang Prabang, Laos this week, the future role of the agency will be on the table.
Questions about the effectiveness of the Mekong River Commission, set up in 1995 to jointly manage sustainable development, have been raised by Laos’ decision in November to go ahead with the US$3.5-billion (105 billion baht) Xayaburi dam project. …
Cambodia and Vietnam, two downstream countries that stand to suffer the most from the dam, have tempered their reaction to Xayaburi.
“We wish Laos would continue its study on environmental impacts and to work up the final design of Xayaburi dam, and work with Vietnam, Cambodia and Thailand on the comprehensive, in-depth study on accumulative environmental and socio-economic impacts of all the hydropower projects in the Mekong River mainstream,” the Vietnamese government said.
Cambodia has been similarly diplomatic. …
Member countries may be reluctant to question the Xayaburi dam, but donors whose contributions account for the lion’s share of the commission’s budget are expected to raise objections.
“If decision-making continues to occur outside of the MRC, the institution will soon lose its legitimacy and 300 million dollars of international donor support to the commission will be wasted,” said Jian-hua Meng, sustainable hydropower specialist at the World Wildlfie Fund.
Bangkok Post Staff
http://www.bangkokpost.com/news/asia/330603/xayaburi-dam-stirs-up-debate-on-mekong-river-commission
Energy security linked to firm borders
January 11th, 2013, Bangkok Post, Business & Commercial Development, Construction, Disputed Land, Disputed Waters, Energy, Extractive Industries, Industry, Infrastructure, International Relations, Land Tenure, Natural Gas, Oil
Energy supplies will be more secure once territorial disputes between Thailand and Cambodia are resolved, Department of Mineral Fuels director-general Songpob Polchan said on Friday.
Mr Songpob said that the sooner Thailand and Cambodia are able to work out their differences, the sooner they can exploit natural gas reserves and ensure energy security, especially with energy consumption rising in both countries every year.
He said the border dispute around the Preah Vihear temple is unrelated to a separate maritime dispute. Even if the border problem has been settled and drilling concession has been granted, it will be another 10 years before the gas could be extracted. He urged the government to consider public sentiment on the issue. …
Bangkok Post Staff
http://www.bangkokpost.com/breakingnews/330370/end-to-border-row-to-help-energy-sector
FTI invests in Saraburi biomass project
January 1st, 2013, Bangkok Post, Electricity, Energy, Environment & Natural Resources, Environmental change, Lakes/Rivers, Natural Gas, News Source, Water
The Federation of Thai Industries (FTI) is investing in a 120-million-baht pilot biomass gasification project in Saraburi.
“We have already chosen a company to jointly invest in the project. The construction will take around one year to complete,” said Pichai Tinsuntisook, chairman of the FTI’s renewable energy industry club.
“At present, there is no small-scale gasification plant that can sell power with the efficiency up to standard.” …
Nanchanok Wongsamuth
http://www.bangkokpost.com/business/economics/328705/fti-invests-in-saraburi-biomass-project
Shopping shapes up in Phnom Penh
December 17th, 2012, Bangkok Post, Business & Commercial Development, Construction, Foreign Investment, Industry, Infrastructure, International Relations, Labor, Trade
With demand for shopping space in Cambodia on the rise and investor interest growing, the Japanese developer Aeon Mall (Cambodia) Co Ltd last week broke ground on the construction of a US$205-million mall in Phnom Penh. …
“We are happy to contribute to the development of the local economy because it will create more than 2,000 jobs” … Motoya Okada, president and CEO of Aeon Group, was reported as saying at the groundbreaking ceremony by the Japanese media.
He added that the Japanese company was considering opening other locations in Cambodia. …
Cambodia’s property market is only now recovering from a bust three years ago that saw the construction of several projects come to a grinding halt. Today, developers are finding a demand for high-end retail projects that, according recent data by the property services company CB Richard Ellis, will triple in total space in the next five years. …
Japanese foreign direct investment in Cambodia reached $75 million last year, up from about $35 million in 2010, while the Japanese government has promised an additional 1.51 billion yen, or $242 million, to fund several infrastructure projects. With the construction of the Aeon mall, Japanese investments in Cambodia are expected to reach $300 million by the end of this year.
Bangkok Post Staff
http://www.bangkokpost.com/business/retail/326570/shopping-shapes-up-in-phnom-penh
Thai-Cambodia buses ready to roll
December 14th, 2012, Bangkok Post, Business & Commercial Development, Industry, International Relations, Tourism
Thailand and Cambodia will launch the first bus services linking Bangkok with Siem Reap and Phnom Penh in the next two weeks.
The first bus service between the two countries will debut on Dec 29, said The Transport Co, a state enterprise under the Transport Ministry.
The service includes the Bangkok-Siem Reap route, a 424-kilometre trip that takes about seven hours. The two countries will provide two trips a day. The fare will be 750 baht or US$25.
The Bangkok-Phnom Penh service, covering 719km and taking 11 hours, will run once a day with a fare of 900 baht or $30. …
Bangkok Post Staff
http://www.bangkokpost.com/breakingnews/326227/thailand-to-launch-bus-routes-to-cambodia
Trat businesses prepare for boon as Cambodian industrial estate opens
December 8th, 2012, Bangkok Post, Business & Commercial Development, Construction, Industry, Infrastructure, International Relations, Land Tenure, Real Estate
Businesses in Trat province have been told by officials to shape up and prepare for massive new opportunities when Cambodia opens the Koh Kong Industrial Estate later this month.
The industrial estate, close to the Trat border, will be inaugurated by Cambodian prime minister Hun Sen on Dec 17, a decade after construction began. It is operated by the LYP Group, led by Koh Kong senator Lee Yong Pat, who is also an economic adviser to Hun Sen.
Thitidet Thongpat, deputy executive chief of LYP Group’s Koh Kong International Resort Club, said conglomerates from Japan, South Korea and Thailand have invested in the new estate. …
By Bangkok Post Staff
http://www.bangkokpost.com/news/local/325257/trat-businesses-prepare-for-boon-as-cambodian-industrial-estate-opens
T.K. Garment Co moves across the border for cheaper wages
December 4th, 2012, Bangkok Post, Business & Commercial Development, Economics, Foreign Investment, Garment Industry, Industry, Labor, News Source
When the government decided to raise the daily minimum wage to 300 baht nationwide, labour-intensive industries knew sunset was descending on their businesses. …
As a leading original equipment manufacturer (OEM) for popular clothes lines in Thailand, the company is relocating its largest production site to northwest Cambodia to escape high wage costs. …
Soonya Vanichkorn
http://www.bangkokpost.com/business/economics/324412/sunrise-in-cambodia
Cambodian NGO: PTT entry would benefit consumers
November 29th, 2012, Bangkok Post, Construction, Energy, Extractive Industries, Industry, Infrastructure, International Relations, Natural Gas, Oil
A Cambodian NGO believes that investment by Thailand’s PTT oil conglomerate in petroleum projects in the region would promote competition and benefit consumers.
Thailand’s largest petroleum firm said lastThursday it is currently studying options for petrochemical and oil refinery projects in three Asean countries — Cambodia, Indonesia and Myanmar. …
Bangkok Post Staff
http://www.bangkokpost.com/business/news/323691/cambodia-ptt-entry-would-benefit-consumers