[XINHUA]
PHNOM PENH, Feb. 1 -- Cambodia's Special Economic Zones (SEZs) have attracted a total investment capital of 1.15 billion U.S. dollars since their operational inception in 2006, according to a government report on Wednesday.
Since 2006 to 2011, the zones have received 96 investment projects with the total capital of 1.15 billion U.S. dollars, according to the record of the Council for the Development of Cambodia (CDC).
It added that the zones had created 61,400 jobs.
Sok Chenda Sophea, the CDC's Secretary General, attributed the investment growth into the SEZs to the country's preferential investment law and low labor cost. "Cambodia's law is very open and gives a lot of fringe benefits to investors," he told a seminar Wednesday.
SEZs have been firstly established in Cambodia in December, 2005 in order to attract investors to build factories inside and manufacture goods for exports. To date, the CDC has granted licenses to 21 SEZs, however, less than a dozen of them are operational.
February 3, 2012
Linehaul, logistically speaking
[PHNOM PENH POST]
A strengthening economy and increasing demands from both domestic and foreign markets have pushed trade growth in the Kingdom, further driving the shipping industry. Linehaul Express president Sin Chanthy, who also serves as secretary-general of Cambodia Freight Forwarders, founded his company in 2000 as a joint venture with partners from Thailand and Hong Kong to capitalise on that growth. Phnom Penh Post reporter Rann Reuy met with Sin Chanthy to discuss the sector in detail.
Exporters often complain that shipping prices in Cambodia are higher than those in neighbouring countries. Is this true?
I always hear this, both in radio and print. But I think some of Cambodia’s shipping costs are relatively similar to those in nearby countries.
Compared with Vietnam, for instance, our price is 10 per cent higher. Vietnam’s shipping sector is busier than ours, so prices are cheaper.
The government issued a policy to help facilitate the export of one million tonnes of milled rice to international markets by 2015. What is your opinion on this move?
We appreciate the policy so much. The government has really made the paperwork easier. Before, we had to ask permission from places before our products were all-owed to be delivered.
A strengthening economy and increasing demands from both domestic and foreign markets have pushed trade growth in the Kingdom, further driving the shipping industry. Linehaul Express president Sin Chanthy, who also serves as secretary-general of Cambodia Freight Forwarders, founded his company in 2000 as a joint venture with partners from Thailand and Hong Kong to capitalise on that growth. Phnom Penh Post reporter Rann Reuy met with Sin Chanthy to discuss the sector in detail.
I always hear this, both in radio and print. But I think some of Cambodia’s shipping costs are relatively similar to those in nearby countries.
Compared with Vietnam, for instance, our price is 10 per cent higher. Vietnam’s shipping sector is busier than ours, so prices are cheaper.
The government issued a policy to help facilitate the export of one million tonnes of milled rice to international markets by 2015. What is your opinion on this move?
We appreciate the policy so much. The government has really made the paperwork easier. Before, we had to ask permission from places before our products were all-owed to be delivered.
4G claims seen as still 'way too early'
[PHNOM PENH POST]
The Kingdom’s newest telecom firms have touted fourth-generation wireless services to set themselves apart from the crowded sector, but experts have said Cambodia is not yet ready to adopt the technology.
Both Emaxx and China’s Xinwei Technologies, which received its license from the Ministry of Posts and Telecommunications (MPTC) last August, claim they plan to deliver 4G capabilities to consumers.
And there’s speculation a third company, Alltech Telecom of Russia, which would be Cambodia’s 11th mobile provider, will utilise 4G speeds as well. However, experts have pushed back against the claims, saying most Cambodians could not yet afford the service, and that these companies are not technologically equipped to offer it.
“The business case for LTE [a 4G standard] in an emerging market like Cambodia is difficult, particularly for operations like Emaxx and Alltech who will have to spend heavily to build a nationwide network,” Shiv Putcha, a Melbourne-based telecoms analyst at international research firm Ovum, said in an email.
The Kingdom’s newest telecom firms have touted fourth-generation wireless services to set themselves apart from the crowded sector, but experts have said Cambodia is not yet ready to adopt the technology.
Both Emaxx and China’s Xinwei Technologies, which received its license from the Ministry of Posts and Telecommunications (MPTC) last August, claim they plan to deliver 4G capabilities to consumers.
And there’s speculation a third company, Alltech Telecom of Russia, which would be Cambodia’s 11th mobile provider, will utilise 4G speeds as well. However, experts have pushed back against the claims, saying most Cambodians could not yet afford the service, and that these companies are not technologically equipped to offer it.
“The business case for LTE [a 4G standard] in an emerging market like Cambodia is difficult, particularly for operations like Emaxx and Alltech who will have to spend heavily to build a nationwide network,” Shiv Putcha, a Melbourne-based telecoms analyst at international research firm Ovum, said in an email.
February 2, 2012
MFIs still seeing significant growth
[PHNOM PENH POST]
Outstanding loans and deposits in 28 of Cambodia’s microfinance institutions rose between 30 and 40 per cent year-on-year in 2011, official data from the Cambodian Microfinance Association indicated.
The CMA’s data showed outstanding loans rose 41.5 per cent from US$916.3 million with 1.3 million borrowers in 2011, compared to $647.8 million with 1.22 million borrowers a year earlier.
Deposits grew by 32 per cent to $1.26 billion with 1.1 million depositors, compared to $952.2 million with 36,776 borrowers in 2010. MFIs in the Kingdom first began to take deposits in early 2010.
Non-performing loans (NPL) declined from 1.3 per cent of the loan total to 0.4 per cent. Officials and insiders said a strong macro-economy performance and clear regulations were responsible for the shift.
National Bank of Cambodia director general and spokeswoman Ngoun Sokha recognised the favourable direction the economy was heading, especially in the agricultural sector, which she believed was responsible for the rising demand for loans.
Outstanding loans and deposits in 28 of Cambodia’s microfinance institutions rose between 30 and 40 per cent year-on-year in 2011, official data from the Cambodian Microfinance Association indicated.
The CMA’s data showed outstanding loans rose 41.5 per cent from US$916.3 million with 1.3 million borrowers in 2011, compared to $647.8 million with 1.22 million borrowers a year earlier.
Deposits grew by 32 per cent to $1.26 billion with 1.1 million depositors, compared to $952.2 million with 36,776 borrowers in 2010. MFIs in the Kingdom first began to take deposits in early 2010.
Non-performing loans (NPL) declined from 1.3 per cent of the loan total to 0.4 per cent. Officials and insiders said a strong macro-economy performance and clear regulations were responsible for the shift.
National Bank of Cambodia director general and spokeswoman Ngoun Sokha recognised the favourable direction the economy was heading, especially in the agricultural sector, which she believed was responsible for the rising demand for loans.
February 1, 2012
Japan's firm launches onshore oil, gas exploration in Cambodia
[XINHUA]
PHNOM PENH, Jan. 31 -- Japan's state-affiliated Japanese Oil, Gas and Metals National Corporation (JOGMEC) on Tuesday started the seismic acquisition operation for oil and gas exploration in Cambodia's Preah Vihear province, said a government official.
Phay Siphan, spokesman for the Council of Ministers, said the JOGMEC would drill 6,000 holes, each has a 6-milimeter diameter and up to a depth of 20 meters for the four-month seismic survey in the province.
Preah Vihear province, situated some 500 kilometers northwest of Phnom Penh, is home to more than 200 ancient temples including Preah Vihear temple, one of the world heritage sites.
Ho Vichit, vice-chairman of Cambodian National Petroleum Authority, said the seismic acquisition operation is one of the first steps of oil and gas exploration study and the operation will not have any impact on the environment and natural cultural sites.
"The start of the seismic survey in block 17 reflects foreign trust on Cambodia's investment environment and it is a new success for Cambodia towards the development of oil and gas sector," he said in a speech during the launching of the seismic study in the province's Tbeng Meanchey district on Tuesday.
PHNOM PENH, Jan. 31 -- Japan's state-affiliated Japanese Oil, Gas and Metals National Corporation (JOGMEC) on Tuesday started the seismic acquisition operation for oil and gas exploration in Cambodia's Preah Vihear province, said a government official.
Phay Siphan, spokesman for the Council of Ministers, said the JOGMEC would drill 6,000 holes, each has a 6-milimeter diameter and up to a depth of 20 meters for the four-month seismic survey in the province.
Preah Vihear province, situated some 500 kilometers northwest of Phnom Penh, is home to more than 200 ancient temples including Preah Vihear temple, one of the world heritage sites.
Ho Vichit, vice-chairman of Cambodian National Petroleum Authority, said the seismic acquisition operation is one of the first steps of oil and gas exploration study and the operation will not have any impact on the environment and natural cultural sites.
"The start of the seismic survey in block 17 reflects foreign trust on Cambodia's investment environment and it is a new success for Cambodia towards the development of oil and gas sector," he said in a speech during the launching of the seismic study in the province's Tbeng Meanchey district on Tuesday.
Cambodia’s garment sector continues to grow: BFC
[Fibre2fashion.com]
The International Labour Organization’s (ILO) Better Factories Cambodia (BFC) has released its “27th Synthesis Report on Working Conditions in Cambodia’s Garment Sector”, which assesses compliance with Cambodian Labour Law and international
labour standards in garment exporting factories.
The 27th Synthesis Report reflects compliance data from monitoring reports completed between May 1 and October 31, 2011. During this six-month period, BFC produced monitoring reports for 169 of the 300 factories registered with the programme.
The 27th Synthesis Report contains a range of information drawn from these reports, including information on factory size across the industry, as well as comparative data on compliance with fundamental rights and selected working conditions to facilitate tracking of compliance levels over time.
This report shows employment in garment export factories reaching its highest level since that seen in the 21st synthesis report dated 31st October 2008, with 345,364 workers employed in the 300 active factories registered with the project.
The International Labour Organization’s (ILO) Better Factories Cambodia (BFC) has released its “27th Synthesis Report on Working Conditions in Cambodia’s Garment Sector”, which assesses compliance with Cambodian Labour Law and international
labour standards in garment exporting factories.
The 27th Synthesis Report reflects compliance data from monitoring reports completed between May 1 and October 31, 2011. During this six-month period, BFC produced monitoring reports for 169 of the 300 factories registered with the programme.
The 27th Synthesis Report contains a range of information drawn from these reports, including information on factory size across the industry, as well as comparative data on compliance with fundamental rights and selected working conditions to facilitate tracking of compliance levels over time.
This report shows employment in garment export factories reaching its highest level since that seen in the 21st synthesis report dated 31st October 2008, with 345,364 workers employed in the 300 active factories registered with the project.
Indonesia eyes Kingdom's rice, telco, tourism sectors
Indonesian Ambassador to Cambodia Soehardjono Sastromihardjo discussed agriculture, tourism and telecom investments with Deputy Prime Minister Sok An, Council of Ministers spokesman Ek Tha said.
“They are seeking investments in rice production because we have high potential in agriculture, especially in rice,” he said.
Ek Tha said Indonesian investors were interested in purchasing rice from Cambodia.
Indonesia has also considered starting direct flights between the island of Bali to Siem Reap province and Phnom Penh, Ek Tha said.
“We welcome any investment and exports of our milled rice and rice paddy to their country, as well as [investments in] direct flight and telecoms in our country,” said he said.
Kingdom expects 15% economic growth in 2014
He said the official figures had come from the Ministry of Planning.
To achieve such growth, the ministry predicted that US$11.51 billion would need to be invested in public works over the next three years.
“The GDP cannot increase itself,” Phay Siphan said.
“We need road building, bridges and other travel channels in order to obtain this big increase.”
Market trends indicated that Cambodia would require an additional $2.76 billion from offshore aid, loans or the oil and gas industry in order to meet the $11 billion mark, he added.
The figure would be a substantial increase over the government’s prediction for 2012 growth, which is now set at 6.5 per cent.
University of Cambodia business and economics lecturer Chheng Kimlong said: “I think that’s a bit ambitious. It’s probably closer to 8 or 9 per cent, or a maximum of 10 per cent, based on current rates of investment and growth.”
Ministry ends unpopular fee for Cambodia business
Industry, Mines and Energy Minister Suy Sem signed the prakas on January 24.
Meng Saktheara, director-general of the general department of industry at MIME, said the prakas would encourage producers to register their products now that the ministry had eliminated some expensive application forms and fees.
He said producers previously had to pay between US$180 and $200 to the ministry before their products hit the shelves.
The prakas will retain two of the previous stipulations requiring payments for initial establishment and to start operations, but will do away with the unpopular distribution permission fee.
According to the Ministry of Fin-ance and Economy and MIME, current registration fees will remain 50,000 riel ($12.50) for capital less than $50,000, and 100,000 riel for capital between $50,000 and $250,000.
Oil production delayed
Chevron Overseas Petroleum (Cambodia) Ltd, which is now exploring the Kingdom’s offshore Block A in the Gulf of Thailand, has notified the Cambodian government that no oil extraction would take place this year, the spokesman said.
“2012 is not possible,” Ek Tha, spokesman for the Council of Ministers, said yesterday by phone.
A representative from Chevron early this month met with the Cambodian National Petroleum Authority to deliver the news, he said, though the reasons for the decision were not discussed.
Ek Tha would not disclose the name of the Chevron representative, although Chevron Overseas Petroleum (Cambodia)’s current president is Steve Glick, who arrived in Phnom Penh last April.
While a new tentative schedule was raised at the meeting, neither party was ready to announce a new deadline for oil production in the Kingdom, Ek Tha said.
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