A massive power outage Wednesday in Southern Vietnam brought rolling blackouts that lasted for hours to Ho Chi Minh City, the entire south eastern region of Vietnam and large sections of Phnom Penh.
Vietnam’s state-owned Southern Power Corporation said Wednesday that the problem occurred around 2 p.m. following the breakdown of a 500-kilovolt transmission line that also supplies Cambodia with much-needed electricity. …
“We have only about 30 percent of our normal supply of electricity to distribute to important areas of the city, but we are trying to fix the problem,” the [Eletricite du Cambodge] official said yesterday afternoon, adding that Vietnam provides Cambodia with about 40 percent of its national electricity supply.
Keo Sovannarith, deputy director of the Phnom Penh Water Supply Authority, confirmed the city’s water supply had been hit by the outage.
“When the water supply factory looses electricity from the EdC, the machine-which uses electricity to work-can’t pump water to the pipes,” he said. …
Opposition lawmaker Son Chhay said yesterday that he would ask the government to cancel the land concession of a Vietnamese rubber firm in Ratanakkiri province he accused of logging and exporting wood illegally.
Mr. Chay, a candidate in July’s national election for the Cambodia National Rescue Party, wrapped up a three-day visit to Company 72’s rubber plantation in O’Yadaw district yesterday, during which he said he saw the firm’s employees logging inside thick, healthy forest. The country’s forest laws only allow concessionaires to fell forests inside their boundaries if degraded. …
Human rights groups and local communities have long accused rubber firms operating in Ratanakkiri of illegally encroaching on ethnic minority land and clearing community forests vital to the province’s minority groups. …
Their stories have become all too familiar – Cambodian fishermen enslaved on fishing boats after being promised lucrative jobs overseas. They’re also becoming increasingly common.
Anti-trafficking NGOs told the Post this week that they have noticed an exponential increase in the number of trafficking complaints from fishermen trapped abroad.
In the past two years, the International Organization for Migration (IOM) aided in the repatriation of just over 100 Cambodians. But in just the first five months of 2013, the IOM has assisted in the return of 63 Cambodians – mostly from Malaysia, Indonesia and Mauritius. …
Two weeks ago, Taiwanese national Lin Yu Shin, 53, was arrested in Siem Reap on charges of trafficking Cambodians onto Taiwanese fishing trawlers off the coast of Africa.
According to the Association of Cambodian Recruitment Agencies, Lin’s company – Giant Ocean International Fishery – had already been operating for several years before it obtained its Ministry of Labour licence in 2009, and was part of a bigger network that dealt with partners in Singapore, Hong Kong and Taiwan.
The Community Legal Education Centre (CLEC), estimates the company trafficked some 1,000 Cambodians. …
Cambodia launched Tuesday the second phase of cassava development project under the support of China and the United Nations Development Program (UNDP). …
Cambodia and China signed a Protocol on the Exports of Cambodian Cassava to Chinese Market in December 2010, under which China allowed Cambodia to export its standardized cassava chips to China.
Teng Lao said cassava is the second agricultural crop in Cambodia and plays a very important role in Cambodia’s agriculture and economic development.
He said last year, the country grew cassava crop on an area of 337,440 hectares, producing about 8 million tons of fresh cassava. “About 50 percent of fresh cassava, 40 percent of dry cassava and 10 percent of cassava powder were sold to Vietnam and Thailand, “he said.”And Vietnam and Thailand re-sell those cassava products to international markets, particularly China.” …
Setsuko Yamazaki, country director of UNDP to Cambodia, said that currently, Cambodian cassava farmers, processors and exporters are facing enormous constraints such as price distortions in neighboring countries, lack of information on price and quality criteria of importing markets and lack of access to technology. “Though cassava has become the second largest agricultural crop in term of income, employment, hectares cultivated and exports, there is very little technical assistance support provided to the sector,”she said. …
Cambodian imports of packaged monosodium glutamate (MSG) totalled just 2,086 tonnes last year, the lowest amount since 2002, according to import figures from the customs department of the Ministry of Economy and Finance.
The import figures showed that from 2002 to 2010, Cambodia had imported a total of 137,908 tonnes of MSG, an average of about 15,323 tonnes annually.
While domestic MSG consumption is said to be on the rise, industry insiders say the decline of imports is not because Cambodians are turning away from the popular taste enhancer, but because a local packaging factory is feeding domestic demand. …
Two-way trade between Vietnam and Cambodia in the first four months of the year reached nearly US$1.3 billion, a 10 per cent rise over the same period last year.
According to the Vietnam Trade Office in Cambodia, Vietnam’s exports to Cambodia fetched over $1 billion while its imports were $253 million in the four-month period. …
Trade between Thailand and Cambodia went off in a wild divergence in the first quarter of this year.
Exports from Cambodia rose 19% to US$102 million (2.9 billion baht) year-on-year, while Thailand’s imports recorded a 4% decline to $1 billion, the Phnom Penh Post reported on Monday, citing figures from the Cambodian Commerce Ministry. …
“A lot of Cambodian agricultural products are being exported to Thailand as some barriers have been [adjusted] and that’s why we are seeing imports from Cambodia to Thailand increasing quite a lot,” Thai trade counselor Jiranun Wongmongkol told the newspaper. …
Rising exports from Cambodia to Thailand are following a similar trend overall. Cambodian exports to other countries jumped more than 20% in the first quarter of this year compared with the same period last year, according to the ministry. …
Vietnam’s investment in Cambodia has increased significantly in the last three years, but a mechanism to encourage and oversee investments in prioritized sectors is needed, according to diplomatic sources.
Tan Nguyen Tien, head of the economic section at the Vietnamese embassy in Phnom Penh, said Vietnam’s investments in Cambodia quadrupled from $566 million in 41 projects in 2010 to $2.5 billion last year. …
Tien said Vietnam Airlines’ direct services between the two countries and Viettel’s telecom service in Cambodia have helped boost Vietnamese investment in that country. …
There are also four projects in the energy sector with a total investment of nearly $800 million, five in finance-banking with $250 million, one telecom project capitalized at $150 million, and a civil aviation project worth $100 million.
Vietnamese FDI in Cambodia is expected to top $4 billion by 2015, and trade between the countries to increase from $3 billion last year to $5 billion by 2015. …
Cambodia’s total exports to Thailand sharply increased in the first quarter of the year, according to official data from Ministry of Commerce received by the Post last week.
Officials said the rise is the result of efforts by both countries to improve trade facilitation and economic relations.
According to the data, total exports from Cambodia totalled $102 million in the first quarter of the year, compared with $85.43 million in the first quarter of last year, an increase of 19.4 per cent. However, total imports from Thailand declined more than 4 per cent, to $1.005 billion from $1.048 billion. …
Labor rights activists and a government official accused the International Labor Organization’s Better Factories Cambodia program of ineffectiveness in its monitoring of factory conditions following a deadly ceiling collapse on Thursday at a shoe factory in Kompong Speu province.
Moeun Tola, labor program head of the Community Legal Education Center, a labor rights group, said that Better Factories Cambodia had failed workers by not disclosing the names of factories that flout the country’s laws on factory health and safety. …
In February, a team of Stanford University Law School researchers published a report titled Monitoring in the Dark, charging that the lack of transparency in the Better Factories program had actually set back garment industry standards for Cambodian workers, compared to their counterparts in China, Indonesia and Vietnam.
The researchers also said that the ILO’s “confidential reporting practice” reduces incentives for factory owners and international brands to improve working conditions in Cambodian factories. …
Authorities yesterday said the ceiling collapse in the Wing Star Factory-which produces running shoes for the Japanese spots brand Asics-was due to dangerous building practices. …
Jill Tucker, technical adviser for Better Factories Cambodia, said her program did not monitor the Wing Star factory “in any capacity,” as the monitoring of footwear factories by the ILO program only started last year. …
Regarding the ILO’s decision not to name factories that flout safety regulations, Ms. Tucker defended the way the program operates.
“We are in the process [of] taking programmatic steps toward publicly releasing some non-compliance information and the name of the factory it is connected to,” she said.
The Better Factories program also does not monitor factory construction standards, although Ms. Tucker said that issues such as electrical wiring, overloading on platforms and pathway obstructions are recorded. …
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. …
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.
The Ratanakkiri Provincial Court yesterday charged two staffers of Vietnamese rubber concessionaire Hoang Anh Ratanakkiri (CRD) with causing intentional damage for allegedly setting fire to several homes belonging to a landowner with whom they were embroiled in a land dispute, deputy prosecutor Mom Vanda said. …
Ly Sok Ngim, owner of the plantation where the buildings were set ablaze, said she had filed a complaint with police seeking $200,000 in damages from Hoang Anh Ratanakkiri, which she said was the parent company of CRD. …
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. …
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.
Ratanakkiri provincial police on Monday arrested the chief of staff of a Vietnamese rubber concessionaire and his Cambodian translator who are believed to have burned down more than $5,000 worth of property related to a land dispute in O’Chum district, police said.
Meas Pov Bora, chief of the provincial minor crimes office, said that Vietnamese national Ngvieng Hong Fou, 30, chief of staff for a company called CRD, and his translator Sim Borin, 31, were arrested for allegedly setting fire to one house and four huts, and destroying some 200 bunches of cassava plants – alone worth $5,650 – belonging to local landowner Ly Sok Ngim. …
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.
A Vietnamese rubber tycoon has rejected accusations by Global Witness, a group that campaigns on resource issues, that it was involved in a land grabbing crisis in Southeast Asia.
Doan Nguyen Duc, the chairman of Hoang Anh Gia Lai (HAGL) Group, told Vietnamese media the information provided by London-based Global Witness in its report was total fabrication. …
According to the report, the two firms have caused widespread evictions, illegal logging and food insecurity in the countries. …
It alleges the IFC invested US$14.95 million in a Vietnamese fund that holds 5 percent equity in HAGL, while Deutsche Bank owns some $4.5-million-worth of HAGL shares. Deutsche Bank is also said to have 1.2-million shares in a subsidiary company of VRG amounting to more than $3 million.
As news of the accusation spread in Vietnam, HAGL shares fall around 6 percent to VND21,400 on Tuesday.
Duc lost VND436.25 billion (US$20.83 million) on over 311 million shares, nearly half the company’s shares, he holds.
After the accusations were made public, HAGL released a statement confirming that the company’s subsidiaries invested in rubber plantations in each country but the firm “denies seizing land, illegally exploiting wood and other corruption behaviors in Laos and Cambodia.” …
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. …
