Investment needed to reach rice goal: experts
October 10th, 2012, Economics Today, Agriculture & Agri-business, Banking & Finance, Borrowing, Business & Commercial Development, Economics, Exports, Farming, Labor, News Source, Production, Rice
More investment is needed as well as additional assistance for farmers if the government wants to meet its export goal of 1 million tons of rice a year by 2015, according to experts at a recent rice sector meeting in Phnom Penh.
Participants said rice millers would need substantial access to financing to update their machinery to bring their rice up to international standards and boost efficiency. …
But in the 2012 budget, the government allocated US$231 million to the entire agriculture sector and Mey Kaylan, a senior government adviser said the government does not have the means to offer loans to farmers.
Only about 40 of Cambodia’s more than 200 rice mills can process rice that meets international export standards.
Economics Today Staff
http://etmcambodia.com
Signs point to more diverse investment projects in Cambodia
October 9th, 2012, Economics Today, Business & Commercial Development, Economics, News Source, Production
The effects of the global financial crisis in 2008 and 2009 on the Cambodian economy showed how perilous having a narrow economic base can be. Since the Kingdom’s economy is dependent on a few “pillars”-garments, construction, tourism and agriculture-downturns in any of those sectors can have serious consequences.
While GDP from 2003 to 2007 grew at above nine percent a year, during the global crisis in 2008 growth slowed to 6.7 percent and then almost stopped in 2009, the economy expanded just 0.1 percent. The rapid downshift demonstrated more acutely than ever the need to broaden the economic foundation. Now economic diversification is at the heart of the government’s sustainable growth plan. …
But economists say further diversification is necessary and for that, the country needs the investment to keep coming. The government’s strategy to achieve this is to expand its network of special economic zones (SEZs), geographic areas with business-friendly regulations. …
The Council for Development of Cambodia has approved 21 SEZs across the country. However, just eight of these are fully operational. The Phnom Penh Special Economic Zone (PPSEZ) is the most active-it has 47 companies on its campus, including 24 Japanese firms. …
Hor Kimsay, P. 20
http://etmcambodia.com
The Week at the CSX: September 28-October 3
October 8th, 2012, Economics Today, Banking & Finance, Business & Commercial Development, Economics, News Source, Stock Exchange, Trade
The price of Phnom Penh Water Supply Authority stock over the Sept. 27- Oct. 3 period was only KHR 6,200 (US$1.54), under the IPO price of KHR 6,300 (US$1.56), for nearly the whole week.
But on Oct. 3, the price rose to the IPO price again, while trading volumes varied widely from around 1,400 to 37,400 shares, according to data from the Cambodia Securities Exchange (CSX) website. …
The main players of the week were Golden Fortune Securities, Acleda Securities and Tong Yang Securities.
Sann Sethvitou, P. 35
http://etmcambodia.com
Thai flood: thousands may evacuate in Northwestern Cambodia
October 2nd, 2012, Economics Today, Disasters & Disaster Management, Environment & Natural Resources, Hydroelectricity, Infrastructure, International Relations, Social Concerns, Water
Due to rising water level in Thailand’s reservoirs caused by heavy rainfall, the Thai government announced the opening of a dam in Sa Kaeo province, located about 20 km from the Cambodian border. This decision will potentially affect 10,000 Cambodian families in Poipet, Serei Sophorn cities and other provinces in the Northwestern part of Cambodia, provincial officials in Banteay Meanchey said on Sept. 30….
Economics Today Staff
http://www.etmcambodia.com/viewlatestnews.php?newsid=92
Rice Exports Increases Two Percent
October 2nd, 2012, Economics Today, Agriculture & Agri-business, Business & Commercial Development, Exports, International Relations, Rice, Trade
Cambodia’s total milled rice exports increased just two percent to 131,064 tons over the first nine months of this year in comparison to the same period last year, according to data released from the Ministry of Agriculture…
Economics Today Staff
http://www.etmcambodia.com/viewlatestnews.php?newsid=90
Kenya eyes Cambodia’s rice and flight sectors
October 1st, 2012, Economics Today, Agriculture & Agri-business, Business & Commercial Development, Exports, International Relations, Rice, Trade
Cambodia’s Deputy Prime Minister…and Ambassador of Kenya…discussed…an initiative to connect Phnom Penh and Nairobi through a direct flight to boost tourism and economic activities …as well as the conclusion of a rice export deal…
Economics Today Staff
http://www.etmcambodia.com/viewlatestnews.php?newsid=85
The arrival of the ASEAN Economic Community will likely be delayed
September 30th, 2012, Economics Today, Business & Commercial Development, Economics, International Relations, News Source, Production
ASEAN leaders have proposed putting off the planned launch of the ASEAN Economic Community (AEC) until the end of 2015, instead of the beginning of that year, so each member state will have more time to prepare for the single market, according to Cambodian Commerce Minister Cham Prasidh, who spoke at a Sept. 18 luncheon organized by the European Chamber of Commerce in Cambodia, Eurocham. …
[I]t was the finance experts, perhaps closer to the realities of economic integration, who recently proposed the delay. Their suggestion will be submitted for approval at the big ASEAN summit in November. …
Many local observers have been concerned about the effects of the AEC on business in Cambodia, especially small and medium-sized enterprises (SMEs). …
Despite the delay, ASEAN is still looking economically robust. While the US is experiencing sclerotic economy growth and the EU wrestles with its debt crisis, ASEAN’s economy grew at 4.7 percent in 2011. …
Heng Socheat, P. 13
Cambodia’s highly competitive mobile phone industry poised for change
September 29th, 2012, Economics Today, Business & Commercial Development, Economics, Industry, News Source, Telecommunications
…
The nation is awash with SIM cards, and that is indicative of an industry that, as most observers see it, is simply overcrowded. …
But [mobile phone] operators, despite their special promotions and a young population in love with phones, are finding themselves squeezed as margins shrink and growth doesn’t turn out to be as robust as once forecast. Profits are getting harder to come by and change is in the air.
Experts say at the end of the day the mobile herd will have to be thinned and it’s likely that some operators will leave the market or consolidate. …
In fact, according to reliable industry observers, operator shareholders are already talking among themselves and with potential buyers about a possible market exit or merges. …
Khlem Chanreatrey, P. 16
Meeting sets out action plan for women’s economic empowerment
September 29th, 2012, Economics Today, Business & Commercial Development, Domestic Investment, Economics, International Relations, Labor, News Source, Social Concerns, Technical Assistance
Poor education and a lack of skills are still major challenges for Cambodian women and a recent meeting in Phnom Penh with the Ministry of Women’s Affairs and the United Nations Development Program set out to validate an action plan on women’s economic empowerment that would help the Kingdom meet UN Millennium Development Goal 3, which focuses on improving gender equality. …
A report by the Millennium Development Goal Acceleration Framework (MAF), which is specially focused on women’s economic empowerment, has highlighted several key interventions to boost opportunities for women. Among them is a focus on education, including technical and vocational training as well as instruction in business skills and management techniques. …
Women already play a central role in Cambodia’s economy. They are more active in business than men when it comes to micro as well as small and midsize enterprises According to the 2011 Economic Census of Cambodia, among the nation’s 505,134 business establishment, just over 61 percent of employees were women. The survey also found that among the 182,439 businesses established between Jan 2009 to March 2011, nearly 40 percent consisted of one person- a woman. …
Hor Kimsay, P. 14
http://etmcambodia.com
China is promoting the yuan for settling trade deals with the Kingdom
September 27th, 2012, Economics Today, Banking & Finance, Business & Commercial Development, Economics, International Relations, News Source, Trade
Due to the expansion of economic and business activities between Cambodia and China, since early August the Bank of China has been negotiation with National Bank of Cambodia (NBC) on the promotion of business transactions in Chinese yuan.
It is part of a larger but quiet campaign by Chinese officials to boost the settling of international trade deals in yuan, and experts say China would like to see it become a reserve currency and alternative to other major currencies, such as US dollar and euro.
[T]he settlement change would boost the demand for local currencies, which would dovetail with Cambodia’s de-dollarization policy. It could boost the value of the riel, which has remained relatively weak since the civil war era of the 1970s. …
While there are exchange rate benefits, according to Hiroshi Suzuki, chief economist at the Business Research Institute for Cambodia (BRIC), they almost all go to China. He says Cambodian business will still be exposed to fluctuations between the dollar and yuan, or renminbi (RMB), which is the Chinese government’s official name of the currency. …
Sann Sethvitou, P. 20
The Week at the CSX – Sept 12-19, 2012
September 27th, 2012, Economics Today, Stock Exchange
The price of Phnom Penh Water Supply Authority stock over the Sept 12-19 period remained very stable, falling early on from KHR 6,350 (US $1.57) to KHR 6,300 (US $1.56) where it stayed.
Trading volumes over the five days varied from around 4200 to 13,600 shares, according to data from the Cambodia Securities Exchange (CSX) website. …
After the weekend the trading volume rose slightly to 5,065, creating KHR 31.9 million (US $7,906). On the next trading day, the volume doubled to 11,329 shares, which generated KHR 71.3 million (US $17,651). The executed volume continued rising on Sept. 19 to 12,750 shares, producing KHR 80.3 million (US $19,867).
The main players of the week were Golden Fortune Securities, Acleda Securities, Tong Yang Securities and Cana Securities.
Economics Today Staff
http://etmcambodia.com
Bokor development harms biodiversity
September 26th, 2012, Economics Today, Construction, Economic Land Concessions, Environment & Natural Resources, Environmental change, Infrastructure, Land Tenure, News Source, Protected Areas, Real Estate, Social Concerns
Two studies have found that development on Bokor Mountain in Kampot province is threatening some of the area’s plant and animal species. The Sokimex Group has been granted development rights for the entire mountain and in May, the first of three hotels to be built was opened.
Concerns have been raised in the past about the effects on other wildlife, including tigers and elephants, which live on or near the mountain Sokimex in the past has said it will work to limit the development’s impact on the environment. …
Economics Today Staff
http://etmcambodia.com
Number of outbound travelers jumps
September 23rd, 2012, Economics Today, Business & Commercial Development, Economics, Industry, International Relations, News Source, Social Concerns, Tourism
The number of Cambodian outbound travelers increased by 27 percent to 445,020 in the first seven months of this year from 357,050 during the same period last year, according to data from the Tourism Ministry.
Ang Kim Eang, president of the Cambodia Association of Travel Agents, said that most of the Cambodian visitors had travelled to ASEAN countries thanks to visa exemption agreements and direct flight connections.
Among ASEAN states, Cambodians preferred to go to Vietnam, Thailand, Laos, Singapore and Malaysia, he added, saying the rise in outbound travelers reflects a rise in living standards.
Economics Today Staff
http://etmcambodia.com
Chinese language study surging in Cambodia
September 22nd, 2012, Economics Today, Business & Commercial Development, Foreign Aid, Foreign Investment, International Relations, News Source, Social Concerns, Technical Assistance
…As China has risen to become the world’s second-largest economy and cemented close political and economic ties with the Kingdom, many people see advantages in speaking the language of their powerful northern benefactor. …
From 1994 to 2011, data from the Council for the Development of Cambodia show that investment from China totaled US$8.91 billion, making it the Kingdom’s biggest foreign investor. …
In terms of media, Chinese is also booming. There are four Chinese-language newspapers in the country; …
But to become a real world language, according to Jeffrey Gil, a lecturer in the Department of Language studies at Australia’s Flinders University, the language will need to become appealing to even more people and be used in an international context in a variety of fields. …
Heng Socheat, P. 16
http://etmcambodia.com
The Week at the CSX – Sept 6-12, 2012
September 21st, 2012, Economics Today, Stock Exchange
The price of Phnom Penh Water Supply Authority stock over the Sept 6-12 period fluctuated between KHR 6,350 (US $1.57 and KHR 6,300 (US $1.55). The price on Sept. 6, KHR 6,350 fell to KHR 6,300 (US $1.58) on Sept 7 and remained there until climbing to KHR 6,350 again on Sept 12, according to data from the Cambodia Securities Exchange (CSX) website.
With the price at KHR 6,350 on Sept 6, a trading volume of 2,898 share generated about KHR 18.4 million (US $4,550). Then, on Sept. 7, volume climbed dramatically to 21,971 shares, generating about KHR 138.4 million (US $34,230). …
The main players were Tong Yang Securities, Cana Securities, Golden Fortune Securities, Phnom Penh Securities and Acleda Securities. According to a report from Phnom Penh Securities, local investors showed their interest in buying when the price was at the IPO price, KHR 6,300.
Economics Today Staff
http://etmcambodia.com
Phnom Penh sees rise in shipments in 2012
September 21st, 2012, Economics Today, Business & Commercial Development, Economics, Exports, Imports, Infrastructure, News Source, Trade
Container traffic through the Phnom Penh Autonomous Port increased by 7.5 percent in the first eight months of this year compared to the sme period last year, according to port figures.
In the January through August period, the port received 57,000 twenty-foot-equivalent units, or TEUs, up 7.5 percent from 53,000.
The port’s director-general, Hei Bavy, said the rise in numbers was due to increasing import and export activities resulting from the positive economic climate. …
Economics Today Staff
http://etmcambodia.com
ADB presents progress on its flood rehabilitation project
September 20th, 2012, Economics Today, Banking & Finance, Construction, Disasters & Disaster Management, Infrastructure, News Source, Social Concerns, Technical Assistance
The Asian Development Bank (ADB) is pushing forward with the US$67 million flood reconstruction project aimed at rebuilding roads,bridges and irrigation systems hit by the devastating high waters of 2011, improving the nation’s infrastructure and providing livelihoods to people in six severely affected provinces, according to ADB officials who presented a progress report of the project earlier this month. …
The project will rebuild or repair 524 kilometers of roads, six bridges and 26 irrigation systems in the six targeted provinces. …
Total losses and damages from the 2011 floods amounted to more than US$600 million, according to ADB data.
Tim Vutha, P. 14
http://etmcambodia.com
Experts say ASEAN connectivity needs private sector involvemnt
September 20th, 2012, Economics Today, Banking & Finance, Business & Commercial Development, Construction, Infrastructure, International Relations, News Source, Technical Assistance
While the planned launch of the ASEAN Economic Community is fast approaching, establishing good connectivity between member states to ensure a free flow of goods and services is a real challenge and needs more involvement from the private sector. That was the message delivered by Cambodian Foreign Minister Hor Namhong, who is also deputy prime minister, during the ASEAN Connectivity Symposium earlier this month in Phnom Penh. …
The Asian Development Bank estimates that ASEAN will require infrastructure investment of approximately US$600 billion over the next 10 years, or about US$60 billion a year.
Surin Pitsuwan, ASEAN secretary-general, said connectivity would never fully achieved if the bloc relied on government efforts alone. He said the private sector has an immense role to play. …
Heng Socheat, P. 13
http://etmcambodia.com
Construction sector investment soars
September 19th, 2012, Economics Today, Business & Commercial Development, Construction, Domestic Investment, Economic Land Concessions, Foreign Investment, Infrastructure, Land Tenure, News Source, Real Estate
Investment in the Cambodian construction sector reached US$1.38 billion in the first seven months of 2012, an 85-percent rise over the same period last year, according to figures from the Ministry of Land Management, Urban Planning and Construction.
During the January to July period this year, the ministry issued licenses to 1,083 construction projects, down 15 percent from 1,279 projects in the same period last year.
The jump in investment value despite the decrease in the number of projects is explained by the fact that projects this year are bigger than those in 2011, according to the ministry. …
Economics Today Staff
http://etmcambodia.com
Inflation rises 1.3 percent
September 19th, 2012, Economics Today, Banking & Finance, Business & Commercial Development, Economics, Imports, International Relations, News Source, Production, Social Concerns
Cambodia’s consumer price index rose by 1.3 percent in July compared to a year earlier on the back of higher food and fuel prices, according to data from the National Institute of Statistics.
The increase was also due to non-alcohol beverages, clothing and footwear, housing, water, household maintenance, restaurants and other services.
Cambodia imports many products to meet domestic demand, but because the infation rates of countries the Kingdom imports from is low, the rate in Cambodia has also stayed relatively low. …
Economics Today Staff
http://etmcambodia.com