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 reached $2.5 million with 5,000 new customers in the first quarter of this year, compared to $343,000 in the same period of 2012, managing director Daisuke Maeda told the Post yesterday.
“Smartphones and PCs are the most popular, followed by motorbikes,” he said. …
The total loan portfolio of AEON Microfinance (Cambodia) at the end of the first quarter this year was about $4 million, with 6,500 customers, Daisuke Maeda said. …
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. …
The deaths of at least two Cambodian workers and injuries sustained by 10 colleagues at a shoe factory southwest of Phnom Penh once more shine a light on conditions in the global garment manufacturing industry.
Thursday’s accident at the Wing Star Shoe factory in the Cambodian capital took place when a section of ceiling collapsed onto a group of several dozen workers. The factory, which has 7,000 staff, is contracted to manufacture shoes for Japanese athletics brand ASICS. …
Dave Welsh, the country director at the American Center for International Labor Solidarity, a labour group, visited Wing Star on Thursday and said it looked as though the ceiling at the Taiwanese-owned factory had been “badly overloaded” with materials. …
Garment and shoe manufacturing is now a pillar of Cambodia’s economy: Exports last year, most of which went to the European Union and the United States, brought in 4.6 billion US dollars.
The industry is also the largest formal employer with more than 350,000 workers. …
[Secretary-general of Garment Manufacturers' Association in Cambodia Ken Loo] was quick to separate what happened in Cambodia with the disaster in Bangladesh, and said the ceiling collapse was not indicative of a systemic problem: instead the deaths and injuries at Wing Star, which is a GMAC member, looked more like the consequence of shoddy construction. …
Jill Tucker, the BFC’s chief technical adviser, said although Thursday’s accident was uncommon it had highlighted the need for factories to adhere to building standards too. …
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. …
Cambodian Prime Minister Hun Sen on Wednesday inaugurated a rubber processing plant here, saying the factory would contribute to developing the country’s fast-growing rubber sector.
The 7 million U.S. dollar plant, invested by Cambodia’s Sopheak Nika Investment Agro-Industry Company, was built on the area of 9 hectares in Sesan district of Stung Treng province, about 455 kilometers from Phnom Penh, the capital of Cambodia, according the company’s report. …
The report said the company received economic concessional land of 10,000 hectares from the government in March 2005 in order to grow rubber trees, and to date, the firm has invested 19 million U. S. dollars for rubber plantation. …
As of last year, the government had granted about 1.2 million hectares of economic concession land to companies for rubber plantation, the premier said, adding that so far, the country has planted rubber trees on the area of 280,350 hectares, and about 55, 000 hectares of them are old enough to be yielded.
Koh Kong province’s mangrove forests have changed from being a source of charcoal to serving tourists who help to protect their biodiversity. The forests have now become a popular destination for Cambodian tourists. …
Yem Yan, Peam Krasorb commune chief in Koh Kong, said gradually visitors have been coming from different provinces in the country.
He said Peam Krasorb community earned about 140 million riel ($35,000) from selling tickets to 40,000 visitors – Cambodian visitors pay 3,000 riel and foreigners pay 5,000 riel per day – per year in the last few years. …
Yem Yan said mangrove forests were being destroyed in the 1990s because villagers made charcoal, but since the year 2000 there has been strict protection of mangrove forests. …
In the wake of a new report from environmental rights group Global Witness rebuking the World Bank’s International Finance Corporation (IFC) and Deutsche Bank for investing in rubber plantations accused of illegal logging and forced evictions, both institutions have denied responsibility and deflected the blame elsewhere.
But the investments targeted in the new report are not the first projects for which both the IFC and Deutsche Bank have received criticism in Cambodia.
Local NGOs filed a complaint with the IFC’s compliance ombudsman in 2009 on behalf of 79 families worried that the expansion of Sihanoukville airport was moving forward without their consultation or guarantees of compensation should they be evicted.
Since 2003, the IFC has helped finance Cambodia Airports, which is owned by French construction giant Vinci Group, for projects involving runway expansions at Phnom Penh and Sihanoukville airports.
In July, 387 families living along the outskirts of the Phnom Penh International Airport were served with eviction letters due to expansion plans to the runway. The families insist they have legal tenure to their homes, but the government disagrees and has refused their demands for compensation.
Though the evictions have yet to take place, families have been told by local authorities that the eviction will take place. It was not known yesterday if the ombudsman is monitoring the Phnom Penh airport expansion plan. …
According to Equitable Cambodia, a land rights NGO, Deutsche Bank through DWS [Vietnam Fund] was also invested in KSL—a Thai firm that owns two sugar plantations in Cambodia, which are accused of causing the eviction of hundreds of local villagers. DWS divested from KSL in 2011. …
Chief Cambodia Holding, a Hong Kong-based brokerage firm, started its operations in Phnom Penh yesterday. The company aims to strengthen Cambodian agricultural products, a company official said.
The company reserved $100 million investment capital to connect domestic agricultural producers to the market, Director of Chief Cambodia Holding Te Tea Sieng said. …
Agricultural experts say there are several obstacles hindering growth in the agricultural sector: limited budgets, lack of knowledge about how to improve yields’ quality, and how to access markets. …
Around 30 residents from Boeung Kok, Borei Kei and Thmor kol communities gathered and knelt down Monday in front of the Royal Palace to seek intervention from the King to release jailed land activist Yorm Bopha. …
In the petition, they asked him to intervene the Ministry of Justice to release Yorm Bopha and find solutions for the land disputes in their communities. …
There were no clashes between authorities and the residents. …
Prime Minister Hun Sen said Saturday that he had ordered a Phnom Penh ice-making factory to shut down, after pungent chemical emissions from the plant in Russei Keo district caused more than 100 nearby residents to be hospitalized with breathing problems on Friday.
At least 20 of those hospitalized had to spend the night in the hospital, while 100 more were prescribed medication and told to return on Saturday to check ammonia-absorption levels, according to district health chief Phan Phearath. Ammonia is used in the ice freezing process. …
Mr. Hun Sen, speaking at the inauguration ceremony of a pagoda in Kompong Chhang province on Saturday, blamed the Ministry of Industry, Mines and Energy for allowing the factory to pollute the area with toxic chemical gases, and for refusing to act on on-going complaints by the community. …
The government on Friday awarded CPP Senator Ly Yong Phat a $92.21 million contract to install power lines in Cambodia’s eastern provinces, the Council of Ministers said in a statement.
During the weekly Cabinet meeting, senior officials including Prime Minister Hun Sen signed off on the deal to extend the national grid by connecting Phnom Penh with Kompong Cham, Kratie, Stung Treng, Ratanakkiri and Mondolkiri provinces. …
Recurring power cuts and power shortages draw sharp complaints from Cambodia’s public, the political opposition and business owners. Keo Ratanak, director-general of Electricite du Cambodge (EDC), talked to the Post’s Sarah Thust.
What is EDC doing to reduce electricity cuts here?
The issue of power shortage is not a surprise to the Royal Government of Cambodia and EDC. We had forecasted many years ago that Cambodia would be precisely in the situation that it is in today.
That is the reason why EDC and the government had been working very, very hard to attract investment for [power] generation projects in hydropower, in coal-fire plants, in biomass power plants, and importing power from Thailand, Vietnam and Laos. …
What is the reason for the electricity shortages, then?
Investment needs time and construction of projects needs time. Each construction usually takes four to five years, [not including] the time to negotiate, to close the financing.
Part of the problem also is that under the agreement we reached with Vietnam they are supposed to give us 200 megawatts at least, up to now, but they only gave us 170 megawatts, because Vietnam itself faces shortages.
The problem with the power from Thailand is a little bit different from Vietnam. It’s about technical constraints. The line that comes to our border is of small capacity, so to transmit more than 100 megawatts to Cambodia is difficult. …
Since 1998, Phnom Penh’s population has doubled to more than 2 million. High-rise buildings have popped up in the city’s center and housing developments have been hastily erected.
Yet the city’s antiquated, decades-old drainage system has undergone little improvement in that time and experts say the rapid urban growth currently underway could outpace the drainage system’s ability to channel rain and the increasing amount of water out of Phnom Penh.
Although the Japan International Cooperation Agency (JICA) has been working with City Hall since 1999 to improve the drainage system, there is still no plan to install a wastewater treatment plant in order to prevent the vast amounts of raw sewage being pumped into the city’s lakes and waterways.
Adding further complications, City Hall has no complete underground plans of the drainage network and possesses limited means to ensure that piping is properly maintained. Authorities have no data on how much sewage the city currently produces.
…
JICA is currently constructing 20 km of additional piping in central Phnom Penh. Once a toilet is flushed, the wastewater travels down the pipes, through open canals or the underground drainage system and eventually arrives in Boeng Trabek, where morning glory and lotus plants partially purify the sewage through natural process.
Plants in the reservoir absorb the discarded water’s bacterial nutrients and break down the waste before it is funneled, black and fetid, through the Boeng Trabek pumping station. The Contents are then emptied into Boeng Tampoun and finally ejected into the Tonle Bassac and Tonle Sap rivers. …
“Phnom Penh City has been developing very fast and many commercial and industrial activities have been located in the downtown and peri-urban areas and the wastewater from these activates is generally high contamination,” said Seng Solsdy, a program officer from JICA, in an email. “With this situation, the construction of a waste-water treatment plant is very important for treating the wastewater from the city before discharging it to the river and to avoid impacts on the environment and people’s health.” …
Last year, alone the total value of approved construction projects nationwide increased by 72 percent to 2.11 billion, compared to 1.23 billion in 2011. …
Noun Rithy, CEO of Bonna Realty Group, agreed that many private developments often leave the issue of drainage as an afterthought. This is coupled with the fact that municipal authorities do very few of their own checks on the drainage provisions of new projects. …
About 100 people protested Wednesday evening outside a Phnom Penh ice-making factory owned by the daughter of deputy Kompong Spue governor Tong Seng, complaining that the factory causes a bad smell and that the health of residents in Russei Keo district’s Kilometer 6 commune was suffering as a result. …
Residents say they want they want the factory moved out of the commune altogether. [District Governor] Mr. [Klaing] Hout said officials from the ministries of environment and industry mines and energy had visited yesterday to inspect the factory and promised that the bad smell and noise levels from the factory would be addressed. …
However, it is not the first time that complaints have been brought against the factory. In November, about 70 families met with factory representatives and deputy district governor Ly Rosamy, with Rosamy saying further action would be taken if the owner failed to build a wall around the factory, but no wall has been constructed. …
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.” …
Mark Moorstein knew little about Cambodia before he got involved in a lawsuit on behalf of land owners there. But as it’s turning out, the suit could end up affecting most every country in Asia.
Moorstein is a land-use lawyer in Northern Virginia who, like many lawyers, was looking for some pro-bono, charitable work to do on the side. …
Across Asia, almost every country is guilty of baldly seizing its citizens’ land without significant compensation and then selling it to corporations or developers, leaving the owners homeless and often destitute. …
Finally in 2001, Cambodia enacted a Land Law intended to curb these seizures. But like so many measures passed to mollify the Western donors who keep the government afloat, the government immediately began ignoring its own law. Now, as one major Cambodian human rights organization put it: “In Phnom Penh and the 12 provinces” around it “land-grabbing has affected an estimated 400,000 Cambodians since 2003, helping to create a sizable underclass of landless villagers with no means for self-sustenance.” …
It turned out that the land he [Mark Moorstein] focused on — two plots of about 25,000 acres each — is used to grow sugar cane, primarily. A wealthy and powerful Cambodian senator took possession of it after evicting residents from about 200 individual plots. Many of the evictees held identification cards the United Nations had given them when it set up a protectorate in Cambodia 20 years ago. Under the Land Law, that meant they held legal title to the property. …
Once the suit was filed, Tate & Lyle seemed to panic. Very quickly, it sold its entire sugar unit to American Sugar Refining, better known here in the United States for its name-brand product: Domino Sugar. That company is now the defendant, and when contacted for comment, the company declined.
But last Thursday, the company did file its response to the suit. It said Tate & Lyle had no knowledge of any prior ownership of the land in question. The villagers had no claim to the sugar cane grown on the land, even if they did previously own it, because they had not paid for the seeds or production costs. And finally, the defendants claimed, “The English court cannot adjudicate or call into question” matters of Cambodian law dealing with land concessions.
Nonetheless, the British court had already accepted the suit. The case is moving forward, and that all by itself is already encouraging many people. …
Cambodian Prime Minister Hun Sen will visit Macau in September to participate in the Second Global Tourism Economy Forum. Prime Minister Hun Sen called for more investment in the country by Chinese and Macau entrepreneurs, and direct flights between Cambodia and Macau.
According to Xinhua, the Prime Minister met with Edmund Ho Monday in the Cambodian capital Phnom Penh, to discuss further expansion of bilateral ties in economics, trade and tourism. Ho is the former Macau Chief Executive and also a vice-chairman of the National Committee of the Chinese People’s Political Consultative Conference,
Speaking at the meeting at the Peace Palace, Edmund Ho, who is also chairman of the Global Tourism Economy Forum, said his visit to Cambodia was to further promote China-Cambodia relations and cooperation, particularly between Cambodia and Macau …
[Deputy Prime Minister and Minister of Finance] Keat Chhon noted that from 1992 to present, China has provided USD2.7 billion in soft loans and grants to Cambodia for rehabilitating and building infrastructure. Keat Chhon and Edmund Ho also discussed ways to promote tourism.
Bilateral trade between Cambodia and neighbouring Vietnam rose more than 10 per cent year-on-year in the first quarter of this year, data from the Vietnam Embassy in Phnom Penh showed.
Officials said cross-border trade facilitation by both countries significantly contributed to the growth. But they said the growth rate slowed down a little, as more competition developed from other importing countries.
The data showed total two-way-trade was worth $1.013 billion in the first quarter of the year, a 10.26 per cent increase from $918.694 million in the same period last year. …
The breakdown figure showed that in the first quarter of 2013, Cambodia’s total exports to Vietnam were valued at $221,153,942, a 9.9 per cent increase from $201,198,500 in the same period of 2012. The value of Vietnam’s exports to Cambodia reached $791,857,900, up 10.36 per cent from $717,495,323 in the same period last year. …
Cambodia mainly exported aquatic products and seafood, corn, dried tobacco, rubber latex, paddy rice and cashew nuts to Vietnam. The main products from Vietnam were all kinds of steel and made-from-steel products, confectionery, cereal products, garments, rubber products, vegetables and fruits, paper, metal products, machinery products, transportation vehicles and spare parts. …
I am really optimistic about the rise in bilateral trade volume which will certainly pave the way for the target of $5 billion set by the two governments by 2015.” [per Ministry of Industry Mines and Energy director general Meng Saktheara]
The data showed that total bilateral trade between both countries was worth $3.316 billion last year compared to $2.836 billion in the same period of 2011 – an increase of 17 per cent. …
