Research Report: Travel and Tourism in Cambodia

[FAST MARKET RESEARCH]

Description

Tourism in Cambodia showed signs of recovery in 2010. Tourism in Cambodia in 2009 was negatively impacted by the global economic recession and chaos in nearby Thailand, although their effects faded in 2010. The political chaos in Thailand had a direct impact on Cambodia as Bangkok is a regional hub for international tourists to Cambodia. It estimated around 30% of daily flights to Cambodia arrive from Bangkok. The turbulence in Thailand ended in May 2010 and the global economy started to...

Euromonitor International's Travel And Tourism in Cambodia report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest market size data 2006-2010, allowing you to identify the sectors driving growth. It identifies the leading companies and offers strategic analysis of key factors influencing the market - be they new legislative, technology or pricing issues. Background information on disposable income, annual leave and holiday taking habits is also included. Forecasts to 2015 illustrate how the market is set to change.

Product coverage: Car Rental, Demand Factors, Health and Wellness Tourism, Tourism Flows Domestic, Tourism Flows Inbound, Tourism Flows Outbound, Tourism Receipts and Expenditure, Tourist Attractions, Transportation, Travel Accommodation, Travel Retail.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?

• Get a detailed picture of the Travel And Tourism market;
• Pinpoint growth sectors and identify factors driving change;
• Understand the competitive environment, the market's major players and leading brands;
• Use five-year forecasts to assess how the market is predicted to develop.

Euromonitor International has over 30 years experience of publishing market research reports, business reference books and online information systems. With offices in London, Chicago, Singapore, Shanghai, Vilnius, Dubai, Cape Town, Santiago and Sydney and a network of over 600 analysts worldwide, Euromonitor International has a unique capability to develop reliable information resources to help drive informed strategic planning.

View "Table of Contents" and get the report here ........ >>>>

Vietnam, Cambodia open more border gates to traffic

[VOV NEWS]

Vietnam and Cambodia on July 29 held a ceremony to officially allow each other’s vehicles to go through the pair of international border gates at Hoa Lu-Trapeang Sre in the southern province of Binh Phuoc and the neighbouring Cambodian province of Kratie.

This is the fifth out of the seven pairs of border gates to be opened to each other’s vehicles under the June 1, 1998 Road Transport Agreement and the May 10, 2005 Protocol signed between the two countries.

Vehicles of the two countries are now allowed to go deep into the territories of each other, helping reduce transport cost and time as well as contributing to developing trade between Vietnam and Cambodia.

In the past, vehicles had to stop at the border for transshipment.

Speaking at the opening ceremony, Vietnamese Deputy Minister of Transport and Communication Nguyen Ngoc Dong asked relevant agencies of the two countries to closely coordinate and create favourable conditions for transportation of people and goods through the border while ensuring border security and order.

Trade and investment between Vietnam and Cambodia have seen positive developments, with two-way trade turnover hitting US$1.83 billion in 2010. The figure was US$626 million in the first quarter of this year, a 45 percent increase over the same period last year.

Cambodia currently ranks 16th among Vietnam’s export markets, while Vietnam is the fourth largest export market of Cambodia.

Smart Mobile offers internet deal

[PHNOM PENH POST]

CAMBODIA’S Smart Mobile has launched a new technology known as HPSA+, which it describes as the most advanced data transmission technology available for Universal Mobile Telecommunications Systems (UMTS) mobile networks.

Smart Mobile says the 3.75G technology allows faster and more convenient internet surfing whether from a mobile device or a laptop, and supports 3.75G technology at speeds of up to 21Mbit/sec for downlink access. In cases where the subscriber’s mobile phone is supporting only 3.5G or 3G only, the network will define the maximum possible transmission speed supported by the device, according to Smart Mobile CMO Kirill Mankovsky.

To promote this new technology among Smart Mobile subscribers, a new mobile internet service has been launched called SurfLikeCrazy. Users may dial the activation code *333# to activate the high speed mobile internet service at only 10 cents per day – including up to 100MB of daily internet traffic.

This internet package rolls out in addition to a variety of “fresh internet” packages already on offer for Smart Mobile subscribers, who can get 1GB of data for $3 or 2GB of data for $5. The packages are valid for 30 days and a standard rate of 1 cent for 500kB is charged.

Smart Mobile has a free SMS Facebook application that allows Smart Mobile customers to send free SMS directly from Facebook at facebook.com/SmartMobileKH, with three free SMS messages allowed per day.

Another Smart Mobile promotion is a joint campaign of Smart Mobile and Coca-Cola called “Open Happiness”. Everybody who buys a bottle of Coca-Cola can look under the cap and instantly win a top-up pin code for Smart Mobile.

Mobile internet drives prices down

[PHNOM PENH POST]

Cellcard/Mobitel CEO David Spriggs (left) with COO Kay Lot.

CAMBODIA’S largest mobile provider, Mobitel’s Cellcard brand, is growing rapidly in the supply of internet services – part of a larger trend of consumer demand to get on the internet with smaller, more portable devices such as smartphones and slate computers – to check email from anywhere, anytime.

“We have had a very high growth in the use of data,” said Cellcard/Mobitel CEO David Spriggs. “We believe we have the highest speed of a 3G network linked to fibre connectivity, a price for an unlimited data usage package goes from 50 cents a day to $5 a month and it is very easy to use,” Spriggs said.

The term 3G refers to a “third generation” in standards for mobile telephones and mobile telecommunication services as set by the International Telecommunications Union.

Cambodia’s embrace of 3G technology through mobile operators here, and the coming shift to its 4G successor, seems to be causing a paradigm shift in how most people connect to the internet, which no longer requires a telephone line or fibre optic cable, only a smartphone, mobile device or PC with a SIM card-capable modem stick.

DIGI offers $12 fibre internet for home

[PHNOM PENH POST]

DIGI, the first internet service provider in Phnom Penh to offer $12 per month internet prices for the home, agreed to answer a few questions about their services.

What are the products and services Digi offers that are attractive to Cambodians?
At present, Digi is providing broadband services in Phnom Penh, including internet, telephony and value added services over fibre optic technology including video services, file sharing, online and networking games, web hosting, VPN and other services.

How is Digi different from other ISPs in Cambodia?
Digi company stands for high quality service on fibre optic technology, product development and low price strategy that makes it attractive and available for users. For this purpose, Digi built its own fibre optic cable network covering Phnom Penh city. Digi tries to help Cambodians to become internet users by investing into users’ equipment and not requiring extra fees. Another huge advantage that definitely differentiates Digi is Digi World www.digi.com.kh/digiworld, www.digibox.ws, www.digimovie.ws, and www.p2push.net. Digi has packaged a number of services geared toward the youth segment, including access to certain social networking and local sites without it subtracting from a customer’s data-usage limits. Briefly, the users can find any content they look for using Digi internal resources that are free and fast to use at10Mbps speed and using fibre optic technology.

Hello shifts to profits

[PHNOM PENH POST]

ONE of Cambodia’s top mobile service providers, Hello Axiata, announced the company’s move into profitability during the first half of 2011.

“Hello is in the green and has turned a profit for the first time,” said Axiata Group CEO Dato’ Sri Jamaludin Ibrahim, who was on a visit from Malaysia earlier this month.

Jamaludin met with hello executives and distributors and then joined a group of high-achieving employees at a dinner at Sofitel Phnom Penh Phokeethra.

Jamaludin expressed his admiration for the exclusive group of achievers and reiterated the Axiata Group’s commitment to assisting such high-performing individuals from its operating companies to reach their full potential.

“Axiata’s Group’s vision is to be a regional mobile champion by 2015 and talent is a critical factor in this,” Jamaludin said. “Because of this aim, we have created critical tools to achieve our vision.

EZECOM becomes first international toll-free provider

[PHNOM PENH POST]

This Monday EZECOM will launch an international toll-free call service that offers local companies a way to expand their global presence without costing a lot of money.

The idea of ITFS is that a company is assigned a local prefix number that forwards calls to any chosen number at no cost for their clients.

“This gives a small business a very large presence and a makes large business more personalized, making it ideal for the growing business community in Cambodia.” said EZECOM marketing manager Inge Olde Rikkert .“For Cambodian companies increasing their global presence this technology EZECOM ITFS offers companies a way to enter and gain trust in new markets. By combining our experience as being the largest provider of VOIP services in Cambodia with our International partners, EZECOM is ideally placed to lead the introduction of the technology. Our Fiber Optic Backbone and our partnership in the international AAG cable ensure that we deliver the highest quality for the best price,” olde Rikkert said.

Software meets hardware at point of sale for Cambodia’s own T.O computer

[PHNOM PENH POST]

ONE of Cambodia’s home-grown software developers, T.O Computer, offers point-of-sale solutions for companies, from supermarkets to restaurants and retail shops.

At T.O computer, located at the northwest corner adjacent to Central Market, president Heng Chamroeun helps companies of all kinds set up their businesses for integrated point-of-sale laser scanning and develops the Khmer language software that controls inventory.

“We’re both a hardware vendor and a software developer,” Heng said.

He started the company six years ago after earning two master’s degrees from Hawaii Pacific University: one in information systems and the other an MBA in international business.

“T.O Computer actually grew from hardware sales and distribution and moving into software,” Heng said.

Technology CEO calls for effective ICT law

[PHNOM PENH POST]

Sor Sontheary, CEO of ITM International Corporation

SELF-MADE CEO in the technology services sector Sor Sontheary is calling on the Cambodian government to come up with an ICT law that best serves the entire Cambodian population so Cambodia won’t lag behind its neighbours in technological development.

“Government as the policy makers should have an ICT law which everyone puts above themselves. It should ensure fairness, competitiveness. From the government and donor point of view, they already recognise that ICT is very important for pubic and private sectors and development partners because everyone is using ICT now,” Sor said.

Born in Takeo province in 1971, Sor was a young Khmer Rouge survivor at age 7 – he was imprisoned because he escaped from the children’s camp to go see his parents.

“My father was a teacher, but he pretended to be a worker from the field.”

Today, at age 40 and with 62 employees at his company ITM International Corporation, a wife and three teenage daughters, Sor wants Cambodia to leapfrog into the high-technology sector to the benefit of the people.

Apple grows rapidly in Cambodia

[PHNOM PENH POST]

iOne CEO Julius Ling (left) and president & director Sok Sopheak (right)

MOBILE technology will play a leading role in bringing down the price of the internet in Cambodia says Julius Ling, managing director of Phnom Penh’s “premier reseller” of Apple computers, iOne, which is on the ground floor of the Canadia Bank tower.

Ling says reduced internet costs will dramatically increase sales of personal computers and related devices, as it has in neighbouring Vietnam.

“Our nearest neighbour Vietnam experienced IT products growth of 300 to 400 percent. We believe this will come to Cambodia if the internet cost is reduced to $10 to $20,” he said.

“Mobile technology will play the leading role in bringing down the price of the internet,” he said.

Although iOne sells all the Apple computers and iPads, they don’t sell the iPhone, which are often bought by resellers in neighboring countries and  sold through many hundreds of mobile phone shops.

Cambodia edges away from U.S. dollar

[MARKET WATCH]

Cambodia, one of Asia’s fastest-developing frontier economies, is gradually letting go of the U.S. dollar’s hand in favor of its own currency, the riel — and some investors welcome the shift.

The Asian Development Bank predicted Cambodia will grow 6.5% in 2011, as textile and garment industries boom in a country that spent decades of the past century ravaged by civil war. According to the ADB, 90% of currency in circulation is the greenback — which is not the most popular world currency at the moment.

“The U.S. dollar is losing its credibility from the reckless ‘quantitative easing’ programs of the U.S. Federal Reserve. It is becoming unsafe for Cambodia to delegate its monetary policy to the bankrupt U.S., which hopes to inflate its way out of its recession and huge debts,” said Douglas Clayton, managing partner of frontier markets investor Leopard Capital.

Leopard Capital already has $34 million equity fund investing in the country, and is launching a $75 million fund aimed at Cambodia and neighboring Laos.

“I am in favor of the riel being introduced as a more sound currency, even though this will initially be more cumbersome for investors like us,” Clayton said in an email interview with MarketWatch this month.

Cambodia to host GMS economic ministers' meeting next week

[XINHUA]

PHNOM PENH, July 29 -- The six participating countries in the Greater Mekong Subregion (GMS) Economic Cooperation Program will gather here on August 2-4 in the 17th GMS Ministerial Conference to review and agree on the new GMS Strategic Framework for 2012-2022, said a press release from the Asian Development Bank (ADB) on Friday.

The new Strategic Framework is a road map for moving the GMS Program forward in the light of changing global and regional context, as well as emerging issues such as climate change, changing social and demographic trends, and changing balance of economic activity in Asia, said the statement.

The framework will help the subregion through "second generation" cooperation, including infrastructure investment establishing the GMS economic corridors.

"This Ministerial Conference is particularly significant since the new Strategic Framework marks a generational gear shift for the GMS Program and will imply significant changes to the type of projects and initiatives pursued in the next phase," said Kunio Senga, Director General of ADB's Southeast Asia Department.

Cambodia eyes solar future for rural power

[PHNOM PENH POST]

Cambodian officials yesterday touted the potential for green energy to meet its goal of bringing electricity to 100 percent of households by 2020.

The Kingdom was looking to develop solar energy, small-scale hydropower and biomass-fuelled power to meet the target, said Ministry of Industry, Mines and Energy Secretary of State Sat Samy yesterday.

Although less than 2 percent of the Kingdom’s households now use solar power, the technology will be central to a goal of hooking up 70 percent of households with green energy by 2030.

“We’re looking for private partners to invest in Cambodia’s solar energy, to develop the country,” he said.

Laotian company Sunlabob won a tender to install 12,000 solar panel systems in eight Cambodian provinces over the next year, a previous release said.

“We’re trying to use all advantages from our energy natural resources in order to supply electricity to all villages in the Kingdom,” said Sat Samy.

Solar power had plenty of potential in Cambodia, perhaps even more than in developed countries, he said.

Some privately-owned firms, such as Standard Construction & Engineering Co and Apollo New Energy Corporation of Japan, say they are eager to expand in rural areas.

“We want to help people in rural areas,” said Standard’s President Yen Srorn at yesterday’s seminar.

Loran owners resolve disputes, end lawsuits

[PHNOM PENH POST]

Disputes between owners at prominent rice miller Loran Import Export Company have been resolved, with Chief Executive Officer Lim Bunheng set to buy the stake held by prominent media personality Soy Sopheap and his associates, company officials said yesterday.

“We have agreed to end all disputes between [Loran] and Soy Sopheap, with both parties agreeing to withdraw all lawsuits from the court,” Loran Vice President Lim Bunseng told The Post yesterday.

“We also agreed that from now on we will consider each other as family.”

Soy Sopheap and three others had become shareholders in Loran Import Export in July 2010. The dispute stems from November of that year, when Lim Bunheng set up Loran Group excluding Soy Sopheap and three others from the ownership. Soy Sopheap’s lawyer Kuoy Thunnas has said it was unfair to set up a potentially competing company, while Loran Import Export lawyer Khiev Sambo countered that Soy Sopheap’s group had not paid in full for its shares.

Silver screen setting up

[PHNOM PENH POST]

SABAY Company is set to open a cinema in Sorya Mall on August 4, aiming to become the second cinema in as many months to show licenced films in the Kingdom, Sabay Chief Commercial Officer Abhaya said yesterday.

Legend cinema began showing primarily Hollywood movies in City Mall last month, but Sabay is aiming to offer patrons a more diverse range of international and independent films, he said yesterday.

“We don’t want to compete with the other cinema, as the market is still very small. However, we will show a number of Hollywood films alongside Asian blockbusters and independent films from around the
world.”

Sabay received the green light to construct the theatre three months ago, at the same location as an existing cinema, and will comprise three screens, including one 3D.

Coffee beans are on the boil

[PHNOM PENH POST]

Coffee plantations in Cambodia’s northeast are struggling to keep up with rising international demand for the increasingly lucrative beans, farmers and traders said.

Orders for Cambodian-grown coffee beans from countries such as Japan and Korea as well as domestic demand has increased rapidly, while prices have jumped nearly 40 percent since 2009, traders said.

Higher prices are ushering more farmers into the market, but supply from Mondulkiri province’s roughly 30 hectares of coffee plantation is falling short.

Im Saroeun, a farmer at the Coffee Plantation Resort in Mondolkiri province, said his plantation is turning down contracts from foreign importers. It simply cannot fill the orders, he said.

“More and more companies are coming from abroad,” Im Saroeun said as he strolled through the arabica and robusta plants. “A Korean company came here a few weeks ago. They wanted to sign a contract with us, but we didn’t have enough space.”

Cambodia Struggling to Meet Asean Integration

[VOA]

Cambodia’s economy is lagging behind other Asean countries, making it hard to meet the level of other Asean countries, finance officials said Wednesday.

Cambodian and Asean economic officials were meeting in Phnom Penh to push for economic integration for 2015.

Hang Chhuon Narong, secretary of state for the Ministry of Finance, said Cambodia was facing inflation of 6.5 percent, which was curbing economic growth.

Cambodia’s per capita GDP of $830 is less than all other Asean countries except Burma’s $400, he said. By comparison, Singapore’s is $35,000; Thailand’s is $4,000; and Vietnam’s is $1,200.

Yem Ponharith, secretary-general of the Human Rights Party, said during the meeting that Cambodia lacked local markets for production and consumption.

Malaysia, Cambodia Looking At Cooperating In Producing Military Assets

[BERNAMA]

PHNOM PENH, July 28 -- Malaysia and Cambodia plan to forge cooperation in producing military assets, said Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said the details would be worked out by the top brass of the militaries of the two countries.

"As Cambodia has a peacekeeping force, several military equipment can be produced together initially. For example, when Malaysia makes the change to replace the M16 assault rifle to the M4 version, Malaysia is also given permission to share the intellectual rights for the assembly of the M4 with several other countries.

"Cambodia welcomes Malaysia's proposal to cooperate in joint production of military assets and maybe also with some other countries towards realising regional collaboration in the defence industry," he told Malaysian journalists after calling on Cambodia's deputy prime minister and defence minister Tea Banh at the latter's office here Thursday.

He said stressed that the cooperation was merely to advance the defence industry regionally and was not aimed at forming any military blocs.

Ahmad Zahid, who arrived here Wednesday for a three-day visit, paid a courtesy call on Cambodian Prime Minister Hun Sen following the meeting with Tea Banh.

Trade, tourism along Thai-Cambodian border active after World Court ruling

[PATTAYA MAIL]

Cross border trade at Chong Sa-ngam border crossing with neighboring Cambodia in Si Sa Ket on Sunday has reportedly been revived as many Cambodians queued up for the opening of the border crossing in the morning to exchange products with Thai traders.

Cambodians crossed the border to buy and sell large amounts of consumer products. Border trade activities were seen as active again amidst security provided by police officers from Phu Sing Police Station and local army rangers.

Apart from the trade, tourism along the Thai-Cambodian border was also boosted as many tourists have been visiting the area, asking for information about cross-border excursions to attractions such as Angkor Wat and Angkor Thom in Siem Reap, according to Hattachai Pengchaem, head of the trade and tourism operators association in Chong Sa-ngam.

Hattachai said that the return of the active trade and tourism can be attributed to the International Court of Justice (ICJ) or World Court July 18 rulings on the Thai-Cambodian border, adding that both Thai and Cambodian traders have expressed their confidence in the border situation.

The rulings applied to both Thailand and Cambodia, requiring that both countries withdraw troops from the disputed border area near Preah Vihear Temple.

Cambodia trade grows by 56.7%

[VIET NAM NEWS]

HCM CITY — Trade between Cambodia and Viet Nam was worth US$1.35 billion in the first half of the year, a year-on-year increase of 56.7 per cent, trade officials said.

Addressing the Vietnamese Business Forum organised by the Ministry of Industry and Trade and the Vietnamese embassy in Phnom Penh on Tuesday, Deputy Minister of Industry and Trade of Viet Nam Le Danh Vinh said trade and transit agreements signed between the two countries have helped promote their commercial links.

Trade between the two countries topped $1.82 billion last year, while Cambodia licensed 89 Vietnamese FDI projects worth nearly $2 billion.

Vinh praised the significant contributions of the Vietnamese community in the neighbouring country, saying they were a major factor in the close ties between Cambodia and Viet Nam.

The chairman of the Vietnamese Business Association in Cambodia, Nguyen Van Dinh, said most Vietnamese businesses operating in Cambodia were medium and small enterprises who wanted easier access to bank loans. Vinh wanted Vietnamese authorities to simplify import-export formalities, enabling temporary import and re-export of vehicles.

Cambodia’s construction approvals soar

[PHNOM PENH POST]

CONSTRUCTION approvals granted by government authorities have increased 93 percent in the first six months of the year, compared to the same period last year, figures show.

Some 1,079 potential projects worth US$637.7 million were given the go-ahead in the January to June period, compared with 1,094 construction projects worth $329.1 million approved last year, according to Ministry of Land Management, Urban Planning and Construction figures obtained on Tuesday.

The ministry’s Construction Department Director Lao Tip Seiha said that the ministry had approved a number of larger construction projects such as housing developments, apartments, factories, and tourist facilities in the first six months.

“The number of construction projects approved in the first half was less than the previous year, but we’re seeing lots of larger construction approvals for projects with bigger values,” he said.

National Sports Lottery gets approval for revival

[PHNOM PENH POST]

After a two-year hiatus, the National Sports Lottery was relaunched on Tuesday following an approval by Prime Minister Hun Sen and the Ministry of Economy and Finance. “Even though we lost over a hundred thousand dollars [previously], we still want to do it again and are ready to risk losses of US$5 million over the next two years with US$20 million of investment,” Lin Lun, a director of National Sport Lottery Co. Ltd, said at a press conference at the Sunway Hotel on Tuesday. The lottery sees 25 percent of its revenue from ticket sales go towardas funding the activities of the National Olympic Committee of Cambodia, while 65 percent is given out as cash prizes and 10 percent is taxed.

Cambodian rubber strides on

[PHNOM PENH POST]

Swift Resources, a rubber company with more than 3,800 hectares of rubber plantation in Kratie province, is preparing to raise funds with an initial public offering on the Hong Kong stock exchange. While the price of rubber remains high, the company is looking to fund further expansion of its plantations in Mondulkiri, Ratanakkiri and Steung Treng provinces, Kong Kimny, administrative manager of Swift Resources Snoul rubber plantation, said yesterday.

Investment accounts open

[PHNOM PENH POST]

The official opening of the Cambodia Securities Exchange

SEVERAL securities firms are opening accounts, even as the first listing on the Cambodia Securities Exchange are not expected until later this year, company officials said yesterday.

The CSX was launched on July 11 without any listed firms, though state-owned Telecom Cambodia, Phnom Penh Water Supply Authority and Sihanoukville Autonomous Port are expected to trade later this year by listing via Initial Public Offerings.

Sonatra Securities Operations Officer Sokhna Rachana said yesterday the firm had opened accounts for both foreigners and locals.

“Most of our clients have knowledge about the market, so it will not be difficult to explain [the market’s workings] to them,” she said.

Construction material imports on the increase

[PHNOM PENH POST]

A RETURN to work on larger construction projects in Cambodia is leading to an increase in the impartation of construction materials, experts said yesterday.

Cambodia’s construction materials are generally imported from China, Vietnam and Thailand, and also as far afield as Europe, said Khuon Savuth, Statistics Director at the Ministry of Commerce’s Camcontrol Department.

“We’ve noted the construction sector has improved this year, which has pushed up demand for construction materials,” he said.

Camcontrol figures show US$351.9 million worth of construction materials were given the go-ahead in the first six months of 2011, from $92.9 million in the same period last year.

The goods, including steel, tiles, and cement, totalled 365,302 tonnes during the period, from 254,839 tonnes for the same six months in 2010.

Cambodia's 'Aw, Shucks' Banker

[FORBES]

Many entrepreneurs develop a head for numbers in their teens. For In Channy, a 14-year-old city kid evacuated at gunpoint in April 1975 to labor in Cambodia's infamous Killing Fields, the only numbers that mattered were the 320 cows assigned to him. Losing a cow meant trouble. And under the Khmer Rouge regime, you didn't want any trouble.

Fortunately for Cambodia's stirring financial- services sector, Channy kept his nose clean. In 1981 he fled to a refugee camp in Thailand, where he became a teacher and won a scholarship to study business at a U.S. college. It would be another decade before he returned home. Today the former cowherd is president and CEO of ACLEDA Bank, Cambodia's largest bank, which he cofounded in 1993 as a nonprofit microfinance lender making $10 loans to demobilized soldiers.

Last year ACLEDA (Association of Cambodian Local Economic Development Agencies) reported net profit of $24.3 million, a sharp rebound from recession-hit 2009, and is on track for another bumper year: First-half net was $21.7 million, 130% higher than the year earlier. Foreign banks are starting to wake up to Cambodia's potential. Malaysia's CIMB and Maybank have opened branches and are said to be seeking acquisitions. ANZ Bank has a head start with its joint venture with Royal Group, while the Pung family-owned Canadia Bank, the second-largest lender, is courting strategic investors for a 30% stake.

Lion Forest to acquire land in Cambodia

[BUSINESS TIMES]

Lion Forest Industries Bhd has proposed to acquire 9,995 hectares of "economic land concession" (ELC) in Preah Vihear,
Cambodia, for US$3.9 million (RM11.77 million).

Lion Forest said its wholly-owned subsidiary, Harta Impiana Sdn Bhd, had issued an instruction notice to Seng Enterprise Co Ltd to identify the ELC and assist Harta Impiana's Cambodian incorporated wholly-owned subsidiary, Eminent Elite (Cambodia) Co Ltd, to procure from the Cambodian government the concession
rights to the ELC of the identified land for a concession period of not less than 70 years.

"The identified land is for the purposes of cultivation and planting of oil palm and/or rubber trees," the company said in a filing to Bursa Malaysia today.

The proposed acquisition is part of Lion Forest's effort to seek new business opportunities following its disposal of tyre operations both in Malaysia and China.

The company said it was also seeking to acquire lands in other Southeast Asia countries including Indonesia, Thailand, Vietnam, Myanmar and Laos for the purposes of cultivation of rubber and palm oil trees and other agro industrial crops.

Cambodia's oil imports up 72 pct in first half year

[XINHUA]

PHNOM PENH, July 26 -- Cambodia had imported 756,139 tonnes of petroleum in the first half of this year, up 72 percent from 440,607 tonnes in the same period a year ago, data from the Commerce Ministry's Camcontrol Department showed Tuesday.

About 692 million U.S. dollars had been used to purchase the petroleum during the first six months of this year, up 133 percent from 297 million U.S. dollars at the same time last year, it recorded.

It's estimated that Cambodia consumes more than one million tons of petroleum a year. The country has totally purchased it from Vietnam, Singapore and Thailand.

Cambodian Prime Minister Hun Sen publicly said on July 12 that the country would begin to produce its own oil from December 2012.

Currently, Cambodia's Petrochemical Company has been studying the feasibility to build an oil refinery with the annual capacity of 5 million tonnes per year in Preah Sihanouk province.

Cambodia's cassava exports increase 87 pct in first half

[XINHUA]

PHNOM PENH, July 26 -- Cambodia has seen a sharp rise in cassava exports in the first half of this year, compared with the same period last year, according to the statistics from the Commerce Ministry's Camcontrol Department on Tuesday.

The data showed that from January to June this year, the country had exported 212,018 tons of fresh and dry chip cassava, represented 87 percent rise from 113,068 tons in the same period last year.

The country earned the total revenues of 8.7 million U.S. dollars during the six months of this year, up 200 percent from only 2.9 million U.S. dollars at the same period last year, showed the data.

According to the report from the Ministry of Agriculture, the country grew 194,000 hectares of cassava crop and yielded 3.78 million tons in 2010-2011 harvest season.

Cambodia's Exports of Rubber Latex See Sharp Rise in First Half

[CRIENGLISH.COM]

Cambodia has seen 84 percent rise in the exports of rubber latex in the first half of this year, compared with the same period a year ago, according to the statistics from the Commerce Ministry's Camcontrol Department, which is the government's Import-Export Inspection Agent, on Wednesday.

The data recorded that from January to June this year, the country had exported a total 21,511 tons of rubber latex, 84 percent rise from 11,665 tons at the same period last year.

The country earned the total revenues of 102 million U.S. dollars during the first half of this year, 234 percent rise from 30.5 million U.S. dollars it earned within the same period last year, it added.

A ton of good quality rubber latex is about 4,475 U.S. dollars now, up from about 3,450 U.S. dollars at this time last year, Mok Kim Hong, the president of the Chub Rubber Plantation in Kampong Cham province, said Wednesday.

Cambodia's rubber latex has been exported to Malaysia, Vietnam, and Singapore.

Currently, the country has grown approximately 181,450 hectares of rubber plantations, most of them are young crops, which have not yet yielded.

Rubber plantations are found grown mostly in the provinces of Kampong Cham, Kampong Thom, Mondulkiri, Ratanakiri, Kratie and Preah Vihear.

Vietnam is the leading country investing in rubber plantations in Cambodia with up to 100,000 hectares of concessional land from Cambodian government for this crop.

Economics eyed: Revision in GDP growth

[PHNOM PENH POST]

The Economic Institute of Cambodia has revised upwards its prediction for GDP growth to 8.7 percent, from 7 percent previously.

Better than expected performance in areas such as tourism, garments and agriculture were highlighted as the reason for the increase.

“The main reason behind the GDP increase in Cambodia is the garment and textile exports have increased dramatically compared to last year,” said EIC Senior Researcher Khin Pisey on Monday.

The EIC projected Cambodia’s industry sector, not including garments, will increase by 15.8 percent this year, also on the back of increased food manufacturing and rubber processing.

Vietnam businesses eyeing the Kingdom

[PHNOM PENH POST]

Cambodia offers plenty of opportunity for Vietnamese investors, though challenges such as high transportation costs and a shortage of skilled labour remain, experts said yesterday.

Represents of about 100 Vietnamese firms met with Cambodian counterparts yesterday for a one-day Oversea Entrepreneur Forum in Phnom Penh, organised by the Vietnamese embassy, said Vietnam commercial attaché Tran Tu.

“I think Cambodia is making improvements to infrastructure, but it could be developed more as the cost of transportation is higher than Vietnam,” he said.

Increased intra-ASEAN linkages also stood to improve the human resources situation, he added.

Vietnam Rubber Group President Leng Rithy said that further cooperation among government officials could also benefit the economy.

“Lower-ranking officials should pay more attention to the country’s development rather than their own,” he said.

Vietnam Rubber Group operations in Cambodia comprise of 17 companies with 100,000 hectares of concession land, and aims to invest millionsof dollars in rubber plantations.

Court issues injunction to top rice milling firm

[PHNOM PENH POST]

BATTAMBANG provincial court has issued an injunction halting the sale of any part of Loran Import Export Company in a dispute over ownership of the prominent rice milling firm, according to a statement.

The plaintiffs, including prominent media personality Soy Sopheap as well as Uy Ang Eng, and Dy Borima, had become shareholders in Loran in July 2010, the injunction said.

The dispute stems from a decision by Loran Import Export President and CEO Lim Bunheng to set up Loran Group in November last year, which excluded the plaintiffs in its ownership structure, Soy Sopheap’s lawyer Kuoy Thunna said yesterday.

“The new company is a rice company, same as the old one. It’s not right to be shareholders in one company and opening a second company in the same business,” he said.

Loran Group had no assets, and the injunction would prevent any transfer of assets such as machinery to the company from Loran Import Export, he claimed.

The injunction, handed down by judge Saoeun Kosal Mony on July 18, halted any attempt by Loran Import Export to sell, rent or mortgage the company’s property. However, he denied three further requests by the plaintiffs, who had also asked to share in profits, for the court to make records of the company’s property, and halt activity at the mill.

Loran Import Export, represented by lawyer Khiev Sambo, had previously filed a complaint to the Phnom Penh Municipal Court to invalidate the contract between Loran and Soy Sopheap’s group.

N. Korea wants to buy Cambodian rice, invest in mining

[REUTERS]

PHNOM PENH, July 27 -- North Korea wants to import Cambodian rice to try to ease food shortages and has offered in return to provide machinery and expertise to develop Cambodia's fledgling mining and energy sectors, a Cambodian official said on Wednesday.

A North Korean delegation led by Deputy Trade Minister Ri Myong-san visited Cambodia this week and the country is keen to import rice as soon as possible, said Ouch Borith, Cambodia's secretary of state for foreign affairs.

It would help Cambodia develop its mining sector and invest in hydropower dams.

The amount of rice North Korea wanted to import was not disclosed, he said. Further specific details, such as how North Korea would fund its purchases and investments, were not available.

Cambodia is the world's 15th biggest producer of rice and has set a target of exporting 1 million tonnes of the grain within the next four years.

According to the Economic Institute of Cambodia (EIC), an independent think tank, the country is expected to ship about 100,000 tonnes of milled rice this year, up from 50,000 tonnes in 2010. More goes to Vietnam to be milled and shipped from there.

Cambodia, DPRK sign deal to speed up implementation of economic, trade cooperation

[XINHUA]

PHNOM PENH, July 27 -- Cambodia and Democratic People's Republic of Korea (DPRK) on Wednesday signed an agreement to boost the implementation of economic and trade cooperation.

The deal was inked between Ouch Borith, secretary of state for the Ministry of Foreign Affairs and International Cooperation, and Ri Myong San, visiting DPRK's vice-minister of foreign trade, after the first Cambodia-DPRK Joint Commission meeting on economic, trade, scientific and technical cooperation. After the signing ceremony, Ouch Borith told reporters Cambodia and DPRK have signed seven cooperation agreements since 1993.

They include the agreement on economic, trade, cultural and technical cooperation, trade exchange deal, investment protection deal, Memorandum of Understanding on cooperation between Cambodia and DPRK foreign ministries, IT joint committee establishment agreement, cultural exchange cooperation, and water way transportation agreement.

"Even though all these agreements have been in place for nearly 20 years, the implementation of the agreements has not been materialized," he said. "Therefore, the deal we signed today is to boost the implementation of these agreements for the interests of the two countries' peoples."

Ouch Borith said that Cambodia has also seen DPRK as a potential market for Cambodian rice, corn, cassava and bean; in exchange, Cambodia expects to import agricultural machinery from DPRK.

On the investment side, Cambodia wants to see DPRK investors in small hydroelectric dams, agriculture, industry and mineral resources, he added.

Pyongyang trade push

[PHNOM PENH POST]

High-ranking North Korean officials have arrived in the Kingdom for talks to establish a robust trading relationship, particularly in agriculture.

The delegation, led by Deputy Trade Minister Ri Myong San, had met with  Foreign Affairs Minister Hor Namhong yesterday to explore economic and trade co-operation for the national development of the two countries, Ministry of Foreign Affairs Secretary of State Ouch Borith said.

“This visit is to strengthen relations as well as economic and trade relat-ions, particularly in the agricultural sector. We’re not talking about politics or the military sector,” he said.

Discussion on the Joint Committee agreement signed by the two countries in 1993 would continue today at the Ministry of Foreign Affairs, Ouch Borith said, with the aim of cultivating long-dormant trade
ties.

Travelling by riverboat in Cambodia

[Stuff.co.nz]

By Bob Maysmor

I watch as a car crawls to the roadside. The driver calls out "Mr Bob, are you Mr Bob?"

It is 7am and the streets of Siem Reap are just starting to stir. A young woman wearing a garish-pink jacket and carrying a large basket of French bread rides sedately past on her bicycle. A little further down the road a woman is kicking up the dust into the cool air as she sweeps the pavement in front of a cafe. I have been sitting patiently with my wife, Alison, outside the Mandalay Inn, waiting for a van to arrive to drive us to Phnom Krom, the nearby point of departure for boats heading to Phnom Penh and Battambang.

For the past three days we have clambered over and around the multitude of block-tumbled temples that laze, as they have for centuries, within the Ankor Archaeological Park. We set off early each morning to avoid the oppressive heat and humidity that seems to increase at the same pace as our energy expires. By mid-afternoon as convoys of buses disgorged camera-swagging hordes at Ankor Wat, we would already be heading back to the guesthouse for a shower and a cold beer.

Having reached temple burnout, we are about to head west by boat across Cambodia's vast lake, Tonle Sap, and then meander along Stung Sangker, an inland waterway that passes through protected wetlands. Guidebooks and travellers alike proclaim the boat trip as being one of the highlights during a visit to Cambodia, if not all of Southeast Asia.

China to pay most of 257km Cambodia-Viet Nam rail link

[Viet Nam News]

HA NOI — A feasibility study on the construction of a 257-km railway linking Cambodia and Viet Nam shows it will cost at least US$686 million, according to the Phnom Penh Post.

The railway will be part of an intra-Asian railway that runs from Singapore to China via Malaysia, Myanmar, Thailand, Laos, Cambodia and Viet Nam.

Under a scheme announced in 2008 to develop an intra-Asian railway, China has offered to contribute $500 million to build the Cambodia-Viet Nam stretch of the railway.

The overall cost estimate was announced on Wednesday by the Third Railway Survey and Design Institute from the Chinese Railway Ministry which began the study in July, 2009. The study results will be submitted to Cambodian Prime Minister Hun Sen for his approval.

The 275-km railway will start in Kampong Speu Province's Oudong District, pass by Kratie Province's Snuol District and end at Viet Nam's Loc Ninh District in the southern border province of Binh Phuoc.

The $686 million cost does not include resettlement compensation to residents who have to leave their homes to make way for the line.

Experts said the railway could bring huge economic benefits to Cambodia, especially in agriculture and mineral exploitation. At present, Cambodia is revamping the country's existing rail links, including the 254-km southern line from the capital to Sihanoukville, and the north line 388 from Phnom Penh to the border with Thailand thanks to an Asian Development Bank loan worth $73 million.

CAMBODIA: Garment exports rise 32% in H1

[Just-style.com]

Cambodia's garment exports in the first half of this year rose 32% on last year to reach US$1.858bn, according to the latest figures from the Cambodian Ministry of Commerce (MOC).

The data shows the US remained the largest export market during the period, accounting for 51.66% of total export turnover. Shipments to the country rose 17% to US$960m.

Mr Ken Loo, secretary general of the Garment Manufacturers Association in Cambodia (GMAC), told just-style this growth is due to a combination of factors, including "relaxed EU rules of origin, the global economic recovery, and a shift in business away from China and other countries due to labour shortages."

Helped by their duty-free status, exports to the European Union rose 54% to US$532m in the first six months of 2011.

Trading and consolidation will boost penetration rates in Laos and Cambodia

[DEVELOPING TELECOMS]

The advent of stock exchanges in Laos and Cambodia could be a defining factor for the economic development of the Southeast Asian countries. Operator consolidation in both markets will likely drive growth, according to Business Monitor International.

Cambodia’s Ministry of Posts and Telecommunications announced in January 2011 that there were 9.8mn mobile subscribers in the country, representing a penetration rate of 66%. This figure suggests that there is significant room for further growth, and it is likely that the sector’s actual potential is higher because of number distortions by inactive mobile subscriptions which operators are hesitant to remove.

The industry also saw a consolidation between TeliaSonera-owned Star-Cell and Smart Mobile. The two companies announced in December 2010 that they had agreed to merge their operations under the Smart Mobile brand. In a joint press release, Star-Cell and Smart Mobile announced they would have a combined subscriber base of 850,000. At the time of writing, the deal was still pending approval from the Cambodian regulatory authorities.

Architectural Amazement in Compelling Cambodia

[Associatedcontent.com]

The capital and the largest city in Cambodia, Phnom Penh is located along the banks of the Mekong River. For so long, Phnom Penh has remained the center of security, politics, economics and cultural heritage of Cambodia. This wonderful city is noted amongst travelers for its beautiful architectural attractions which are teeming with history and charm. Phnom Penh is also known as the loveliest French-built city in all of Indochina. Founded in 1434, Phnom Penh has its own dialect of Khmer, the language of Cambodia and the city is home to many architectural wonders like Wat Phnom, The National Museum and the Royal Palace.

Speaking in the sense of architecture, Phnom Penh is a new city. It was the royal capital from 1432 to 1505; however it was abandoned for 360 years due to conflict and war. Almost every structure that exists today in the city was built during the French colonial period, 1863 onwards. The city is dotted with Chinese "shop-house" style buildings, dominating the architecture types. There are also old European influenced colonial period structures to be found. At the peak of the colonial period, Phnom Penh was regarded wonderfully elegant with its well manicured parks and gardens and domineering, ornate villas and picturesque boulevards alight with colour.

DPRK trade delegation visits Cambodia to start economic ties

[XINHUA]

PHNOM PENH, July 26 -- A trade delegation of Democratic People's Republic of Korea (DPRK) led by Vice Minister of Foreign Trade Ri Myong San on Tuesday started a visit in Cambodia in order to commence trade and investment ties with the country.

During a meeting with Cambodian Deputy Prime Minister Hor Namhong, who is also the Minister of Foreign Affairs and International Cooperation, on Tuesday, Ri Myong San said the visit was to find possibility to start economic relations with Cambodia, especially on the development of agriculture, trade and investment.

Meanwhile, Hor Namhong said that Cambodia welcomed DPRK in starting trade ties with Cambodia for mutual interests of the two peoples.

Bilateral benefits: China trade on the up

[PHNOM PENH POST]

CAMBODIA’S bilateral trade with China increased by 82 percent in the first half of the year, compared to the period in 2010, according to Ministry of Commerce statistics obtained yesterday.

The two countries’ bilateral totalled US$912.76 million in the first six months, from $501 million in the same period last year. Cambodia exported goods worth $66million to the People’s Republic, a 275 percent increase, while China’s exports to the Kingdom increased 75 percent to $846 million, statistics show. Ministry of Commerce officials could not be reached yesterday. In May, Minister of Commerce Cham Prasidh said bilateral trade was gradually increased from year to year.

Double-digit rise in tourist arrivals

[PHNOM PENH POST]

ARRIVALS to Cambodia increased by 13 percent to 1,385,029 during the first six months compared year on year, with Vietnam as the largest source of tourists, according to Ministry of Tourism statistics.

However, visitors from Japan barely increased, while Thai tourists declined by over a third during the six months, the statistics show.

Minister of Tourism Thong Khon said that increased direct flights to Cambodia were one of the main reasons behind the overall increase in arrivals.

“We saw that tourists increase because Cambodia … is making it easier for large number of foreigners to visit our country,” he said.

Vietnam was the largest source of tourists, with 289,736 visitors to the Kingdom in the first half, an 18.5 percent increase on the first six months last year.

Some 172,568 visitors arrived from South Korea, a 19.5 percent increase, while China came third with 133,775 tourists, a 34.9 percent increase.

Meanwhile, Thai visitors decreased by 36.4 percent to 48,136 visitors, while Japanese visitors climbed 1.7 percent to 76,278 during the period.

The Ministry has forecast a total of 2.73 million visitors to Cambodia for 2011, and claimed revenue from the sector ought to total $1.91 billion during the year.

Work on Canadia rice mills begins

[PHNOM PENH POST]

CANADIA Bank Plc has begun construction on an US$8 million rice processing facility in Takeo province, aiming to process rice for export to the international market, company officials said.

Set up in the province’s Doun Keo district, the mill will be capable of processing up to 500 tonnes of paddy per day, Canadia Investment Department Manager Rien Samrith said.

“We want to invest in this province because of its potential for agriculture, and we want to push people to produce more rice,” he said.

Construction on the facility began earlier this month, and will be finished by September this year.

The firm claims to have a three-month timeline to complete the factory, as operations are to begin in October to meet demand from China, he said.

“We have already connected with business partners from China to export rice to them,” he said.

Takeo Governor Srey Ban said on Sunday that the province had nearly 100 rice mills, but most were not able to process the agricultural staple at international quality.

“We welcome the new investment project,” he said, adding the province had enough agricultural land to eventually produce 600,000 tonnes of milled rice yearly.

Canadia is also setting up a rice mill in Battambang province with capacity of 60 tonnes per day, with work on the $400,000 facility expected to begin next month.

Prime Minister Hun Sen has set a target of exporting 1 million tonnes of milled rice by 2015.

Property sector recovery highlighted

[PHNOM PENH POST]

SIEM REAP -- THE Kingdom’s property sector is beginning to emerge from the global financial crisis, but could further improve with the implementation of anti-corruption laws and enforcement of property rights, according to industry experts.

Although the sector is some ways off the pre-crisis peaks experienced in 2007, the number of transactions are on pace for a 10 percent increase this year on 2009, said Cambodian Valuers Association President Sung Bonna.

“Cambodia’s real estate market remains on track for a robust recovery and we expect foreign investment to continue to be a key driver of growth for the sector in 2011,” he said at the 17th annual ASEAN Valuers Association seminar held in Siem Reap on Friday.

Government tax revenue from property related transactions surged 60 percent from US$12.2 million in 2009 to $19.5 million the following year, according to the Ministry of Urban Planning and Construction figures presented by Sung Bonna at the seminar.

However, some impediments remain to the sector’s growth, such as corruption and poor enforcement of property rights still remain, he added.

THIBIDI keen to bring about a transformation

[PHNOM PENH POST]

Ground-breaking ceremony

WORK had begun  on Cambodia’s first factory to manufacture transformers, THIBIDI Cambodia country director Nguyen Van Hong said yesterday.

The firm has been importing transformers from Vietnam, but the US$2.5 million plant in the Phnom Penh Special Economic Zone will be able to produce transformers, which alter voltage for electricity transmission.

“This will be the first plant to manufacture transformers in Cambodia, and comes in response to the increasing demand and development of the Kingdom’s electricity sector,” he said.

“It will significantly contribute towards electricity used to serve the country’s production line and enhance the economy and standard of living in Cambodia.”

Cambodia, Laos and Myanmar Business Forecast Report Q3 2011

[Companiesandmarkets.com]

View Table of Contents
Cambodia, Laos and Myanmar Business Forecast Report Q3 2011

South East Asia's frontier economies have held up relatively well in spite of a weak economic recovery in the US , fiscal austerity in the eurozone and negative spillover effects from the Japan earthquake.

The Association of Southeast Asian Nations (ASEAN )'s drive to establish an ASEAN Community by 2015 is expected to support economic growth for Cambodia, Myanmar and Laos through increased trade and foreign direct investments (FDI ) over the coming years. China is also becoming a key source of FDI for Myanmar, Cambodia and Laos in recent years and we expect this to continue. Accordingly, we have upgraded our economic growth outlook on Cambodia and Myanmar to reflect resilient momentum behind these economies.

We are seeing encouraging evidence that Cambodia's economic recovery remains on track and real GDP growth could soon return to long-term trend growth of around 6.0-7.0%. The government's new rice production and export policy is expected to support growth in the agricultural sector, while a positive outlook for the country's key trading partners suggests that demand for exports should remain resilient. Latest trade figures and economic data published by the Ministry of Commerce and the Ministry of Economy and Finance also point towards a steady recovery in economic activity this year. Accordingly, we have revised Cambodia's real GDP growth upwards from 3.4% to 4.5% for 2011.

Second fainting incident at Puma factory in Cambodia sparks alarm

[Monster and Critics]

Phnom Penh - German sportswear manufacturer Puma AG has said the hospitalization of 49 workers who fainted at the factory of a Cambodian subcontractor was being taken 'very seriously.'

Monday's incident came weeks after more than 200 workers fainted over a two-day period in April at the same Huey Chuen factory in Phnom Penh, prompting Puma to commission an independent report into working conditions.

A report into the April faintings by US-based non-profit group Fair Labor Association (FLA), found an array of violations of national law, international practices and Puma's own rules.

The investigation found 'multiple hazardous chemicals' in use at Huey Chen, including toluene, which Puma explicitly bans its subcontractors from using.

The US government's Environmental Protection Agency says the solvent damages the central nervous system and may cause miscarriages or developmental problems for unborn children.

Vietnam, Cambodia, Laos, Myanmar seeking further economic integration

[XINHUA]

HANOI, July 25 -- A seminar was held here on Monday among senior officials and delegates from Cambodia, Laos, Myanmar and Vietnam who shared their experience in devising and implementing international economic integration policies to serve their countries' sustainable development.

According to Vietnam News Agency (VNA), participants agreed that their countries should promote cooperation in the sub-regional, regional and inter-regional frameworks to make the best use of opportunities and minimize challenges from international economic integration.

Vietnamese Deputy Foreign Minister Doan Xuan Hung suggested the four countries continue to actively take part in international economic integration and closely coordinate to contribute to building the ASEAN community.

Asian Development Bank (ADB) Country Director Tomoyumi Kimura spoke highly of prospects for cooperation in the Greater Mekong Sub-region (GMS), saying that 55 projects worth 14 billion U.S. dollars in total have been carried out in the GMS framework.

ADB will further cooperate with the four countries and assist existing sub-regional cooperation mechanisms to help them in their international economic integration and maintaining sustainable development, said Kimura.

The seminar is part of a cooperation project between the Vietnamese Ministry of Foreign Affairs and Germany's Hanns Seidel Foundation to help Vietnam and regional countries in international economic integration, VNA reported.

Vietnam expands electricity equipment investment in Cambodia

[VOV]

The Vietnam Electrical Equipment Corporation began construction of a transformer factory in the Phnom Penh Special Economic Zone in Cambodia on July 25.

Covering an area of two hectares, the factory has a total investment capital of US$2.5 million. After completion, it will produce about 4,000 transformers every year.

Addressing the event, Nguyen Van Cuong, CEO of the corporation, said this construction is the corporation’s first investment project in a foreign country and it expects to build good neighbourly relations, friendship, solidarity and contribute to long-term, sustainable and comprehensive cooperation between Vietnam and Cambodia.

The factory is scheduled to be put into operation later this year and employ about 150 technical workers, half of whom will be Cambodians.

Vietnam – Cambodia railroad to be built

[SAIGON GP DAILY]

It is part of the Singapore-Kunming railroad project, so it will be a key railroad for Cambodia to transport commodities to regional and global markets, especially in the framework of ASEAN-China Free Trade Area.

The feasibility study for the construction was implemented by the Chinese Railway Ministry's Third Railway Survey and Design Institute since July 2009 with a cost about 3 million USD funded by China.

As planned, the railroad is 257 kilometers in length, starting in Kampong Speu Province’s Oudong district, pass by Kratie province’s Snuol district and end at Vietnam’s Loc Ninh district in the southern border province of Binh Phuoc.

Experts have finalized the total cost for the construction of the Vietnam – Cambodia is about 686 million USD, according to a feasibility study for the construction begining from Kampong Speu province (Cambodia) to the southern border province of Binh Phuoc (Vietnam).

However, this money is not including the settlement compensations for residents affected by the project.

"The project will provide huge economic benefits to Cambodia, especially on the development of agriculture and mineral resources, as well as tourism sector", experts said. The study result will be submitted to Prime Minister Hun Sen to make decision.

The railway will be part of an intra-Asian railway that runs from Singapore to China via Malaysia, Myanmar, Thailand, Laos, Cambodia and Vietnam. It is expected to be complete within 30 months.

Plan to resume tourism at P.Vihear

[BANGKOK POST]

The governor of Si Sa Ket province says he plans to approach his Cambodian counterpart for talks on reopening the Preah Vihear temple site to tourists, a Thai news report said.

Governor Somsak Suwansucharit said he plans to discuss the matter with the governor of Cambodia's adjoining Preah Vihear province, which encompasses the ancient ruins, the report said.

The only normal tourist access is through Thailand.

Since July 23, Si Sa Ket provincial authorities have allowed tourists to visit the Pha Mor I Daeng cliff, close to the Preah Vihear temple, and Thai tourists are arriving at the cliff observation point to admire the carvings there as well as the twin pagodas on Khao Phra Viharn mountain, he said.

The attractions had been closed for over five months becausder of the border clashes between Thai and Cambodian troops.

Visitors can enter the cliff area, which is part of the Khao Phra Viharn National Park, free of charge for the time being. Their presence is under heavy protection by Thai soldiers.

Visitors must leave their ID cards at the gate of the national park. Motorists must park their vehicles, including motorcycles, at the entrance of the park.

Administrators of Kantharalak district, which directly connects with the disputed area, had talks with officials of the Khao Phra Viharn National Park on Monday afternoon about measures to supervise local operators and attract more visitors to the Pha Mor I Daeng cliff.

ICT agreement signed

[PHNOM PENH POST]

MALAYSIAN Minister for Science, Technology and Innovation Maximus Ongkili highlighted Malaysia’s experience in Information and Communication Technology during meetings with Cambodian officials in Phnom Penh.

MIMOS, an agency of the Malaysian ministry, signed a memorandum of understanding with Cambodia’s National ICT Development Authority on Friday, aiming to cooperate with ICT development in sectors such as health, government, and logistics.

Malaysia could offer expertise in areas such as cloud computer, cyber security, wireless communications and software applications, said Ongkili.

“We hope to foster better relationships between both countries’ governments and private sectors to collaborate in the areas of technology sharing and technology transfers,” he said.

Speaking on Friday, Deputy Prime Minister Sok An said Cambodia’s ICT sector had made significant progress in recent years.

“[It is] reflected in both the brisk adoption of ICT services by the population and the rapid expansion of infrastructure and significant increase in the size of the ICT market,” he said.

“The ICT sector has leapfrogged from Analog to GSM to 3G systems and next year, we might have 4G systems.”

Digital Star Media, which operates under the name Emaxx, has announced plans to begin operating a 4G network in 2012.

Block A oil partner inks finance deal

[PHNOM PENH POST]

KRISENERGY Holding Company, a partner with Chevron in Cambodia’s offshore petroleum Block A, has secured US$115 million in bond and credit facility to fund its projects, a statement on Friday said.

The funding comes through a five-year, $85 million bond issue and three-year $30 million credit facility, would repay its existing $58.5 million facility, and “fund development of its asset portfolio, including near-term oil development projects offshore Cambodia and Thailand”, it said.

Singapore-based KrisEnergy holds a 25 percent stake in Cambodia’s Block A. Chevron Overseas Petroleum Cambodia Limited is the operator of Block A and holds a 30 percent interest, while a subsidiary of Mitsui Oil Exploration Company holds 30 percent, and GS Caltex the remaining 15 percent, according to the Cambodian National Petroleum Authority's website.

Block A is thought to be the most advanced area undergoing oil exploration in Cambodia, and government officials have said they hope extraction will begin by December 2012.

KrisEnergy Chief Financial Officer Stephen Clifford said the partners in Block A continue working toward realising development of the oil discoveries and reaching production. “The plan of development is currently with the Cambodian authorities awaiting appropriate approvals,” he said on Friday.

“In Cambodia, we believe there is excellent potential for hydrocarbon reserves and we would welcome bringing our technical and operational expertise to other projects and areas,” said Clifford, who directed further Block A operational inquires to Chevron.

Chevron’s Singapore-based spokesman Gareth Johnstone confirmed Friday that the firm aimed to make an investment decision on Block A this year.

KrisEnergy is involved in ten contract areas, all in Southeast Asia. Its latest financing arrangement comes through a five-year U$85 million bond, with Pareto Securities as Lead Manager. Standard Bank Plc and Sumitomo Mitsui Banking Corp were lead arrangers for the three-year $30 million revolving credit facility, it said.

Garment growth led by EU and Asia

[PHNOM PENH POST]

GROWING demand from European and Asian buyers has driven up Cambodia’s garment exports during the first half of 2011, according to experts.

Eased country of origin requirements for duty-free exports to the European Union, and emerging demand from Asian countries had sped the industry’s growth, said Garment Manufacturers Association in Cambodia official Cheat Khemera.

“The demand from European markets is picking up. Although some countries are facing economic problems, the demand is still there,” he said.

Garment exports increased by 32 percent in the first half of 2011 compared year on year, reaching US$1.858 billion, according to statistics from the Ministry of Commerce’s Camcontrol Department.

The United States was the largest export market during the first half, receiving garment exports worth $960 million, a 17 percent increase on the period last year. Exports to Europe increased 54 percent to $532 million during the period, while exports to other markets such as Canada, Japan and Korea increase by 49 percent to $366 million.

June Textile to pay workers

[PHNOM PENH POST]

Former June Textile employees listening to a press conference.

June Textile Factory declared on Saturday that it would pay remuneration to about 4,000 workers in accordance with an Arbitration Council ruling, following months of protests from workers seeking severance payments after the factory burned down in March.

Albert Teoh, administration director of June Textile Factory in the capital’s Sen Sok district, said at a press conference in the capital that all workers would receive remuneration.

“We decided to pay the remuneration to the workers according to the Arbitration Council’s decision,” he said.

In a ruling issued last month, the Arbitration Council called on June Textile to compensate workers for a “pre-notice” period ahead of their dismissal of up to three months salary.

Beer girls brew Angkor strike

[PHNOM PENH POST]

About 60 Angkor beer promoters plan to strike today outside the company’s head office on Norodom Boulevard to draw attention to what they say are violations of labour law, as well as discrimination against them.

Cham Rong, a representative of the women, promised the strike, planned to begin at 8am, would be loud and colourful. The women will raise banners and beat drums to draw attention from passers-by, including tourists, she said.

The decision to strike was made after the company rejected a decision by the Arbitration Council to double the wages they receive on Sundays to US$4, she said.

Cham Rong also said that the company threatened to fire the women if they tried to join a union.

Neub Sros, 36, said she had worked as a beer promoter for the company for more than 10 years but was paid only $50 a month.

“I can’t survive on this because my expenses are even higher, so I work overtime on Sunday night but that only adds up to [an extra] $8 a month,” she said.

Temple adventures in Siem Reap

[CEI]

The Cambodian city offers a wealth of activities for incentive groups

A decade makes a world of difference. While Laos, its neighbour to the north, remains a well-kept secret for intrepid travellers, Cambodia has grown by leaps and bounds over the past 10 years to become a good MICE destination. More direct flights, the convenience of obtaining a visa upon arrival at Siem Reap or Phnom Penh international airports, plus Cambodia’s inherent laid-back and friendly attitude, have all contributed to its reputation as a good choice for mid-size groups.

 

Games arena

“Siem Reap is really looking towards the future,” says Chloe Chomienne, MICE manager with Exotissimo Travel. “There is finally peace and stable economic development. People see it as a good value for money destination. It has a lot of authenticity. And it is like a giant games arena – if you have an idea, you can do it here.” Gregory Anderson, general manager at Le Meridien Angkor, says: “It’s all on the upside. You can’t do anything on the scale of Las Vegas, but people coming here don’t have those expectations.” Topping the list of incentive outings is a temple dinner at one of the ancient complexes. “It is a very emotional experience,” says Anderson. “I’ve seen delegates cry or at the very least get goose bumps.”

 

Japan Pledges Over US$5 Billion To Mekong Nations

[BERNAMA]

VIENTIANE, July 25-- Japan pledged to provide 500 billion JPY (over US$5 billion) to Mekong nations over three years in implementing projects in all fields within the Mekong-Japan cooperation framework, Lao news agency (KPL), reported.

This announcement was made at the 4 th Meeting of Mekong-Japan Foreign Ministers in Bali, Indonesia on July 21.

At the meeting, Japan also pledged to give about US$20 million to assist the Cambodia-Laos-Vietnam Development Triangle.

Mekong and Japanese FMs discussed a plan to boost cooperation between the two sides and some regional and international issues of mutual concerns.

They agreed to approve the Chairman's Declaration on the spirit of "New Partnership for a Future of Common Prosperity" and committed to boosting cooperation and multifaceted relations, not only in the economic sector, but also in politics, culture and other fields, with a final target to build fine relations among nations.

The third Mekong-Japan Summit will be organised on the sidelines of the Asean Summit, scheduled for November in Indonesia.

The Meeting of Mekong-Japan Foreign Ministers was attended by the FMs from Vietnam, Japan, Cambodia, Laos, Myanmar and Thailand under the Chair of Japanese FM Takeaki Matsumoto.

Trade, tourism along Thai-Cambodian border active after World Court ruling

[MCOT ONLINE NEWS]

SI SA KET, July 24 – Cross border trade at Chong Sa-ngam border crossing with neighbouring Cambodia in Si Sa Ket on Sunday has reportedly been revived as many Cambodians queued up for the opening of the border crossing in the morning to exchange products with Thai traders.

Cambodians crossed the border to buy and sell large amounts of consumer products. Border trade activities was seen as active again amidst security provided by police officers of Phu Sing Police Station and local army rangers.

Apart from the trade, tourism along the Thai-Cambodian border was also boosted as many tourists have been visiting the area, asking for information about cross-border excursions to attractions such as Angkor Wat and Angkor Thom in Siem Riap, according to Hattachai Pengchaem, head of the trade and tourism operators association in Chong Sa-ngam.

Mr Hattachai said that the return of the active trade and tourism can be attributed to the July 18’s International Court of Justice (ICJ) or World Court rulings on the Thai-Cambodian border, adding that both Thai and Cambodian traders have expressed their confidence in the border situation.

The rulings applied to both Thailand and Cambodia, requiring that both countries withdraw troops from the disputed border area near Preah Vihear Temple.

Meanwhile, the overall Thai political situation in Thailand is becoming clearer, as a new coalition government led by Pheu Thai Party will be formed after the July 3 general election. 

ICT: Cambodia Keen To Learn From Malaysia

[BERNAMA]

KUALA LUMPUR, July 23 -- Cambodia is keen to learn from Malaysia in the fields of cyberlaw, cybersecurity, e-commerce and e-government.

This was stated by Cambodian Deputy Prime Minister Dr Sok An during his meeting with Malaysia's Science, Technology and Innovation Minister Datuk Seri Dr Maximus Ongkili in Phnom Penh yesterday.

According to a statement issued by Dr Ongkili's office today, Cambodia, which joined Asean in 1999, was seen as new in ICT development and held high regard for Malaysia particularly in its ICT development.

The country looked forward to gaining benefits from its Asean membership and working with its neighbours, it said.

Dr Ongkili was in Phnom Penh, leading a week-long specialised ICT trade mission to Indochina which also covered Hanoi and Vientiane.

While in Phnom Penh, Dr Ongkili also met Cambodian Commerce Minister Cham Prasidh who gave an assurance that his country "will always open its doors to Malaysia because you are very important to us".

Cambodia approves nearly 3 bln USD investment in 1st half

[XINHUA]

PHNOM PENH, July 21 -- The Council for the Development of Cambodia (CDC) on Thursday reported that the domestic and foreign investment in Cambodia in the first half of this year stood at 2.92 billion U.S. dollars, 172 percent increase from 1.07 billion U.S. dollars in the same period last year.

From January to June, investment in tourism have jumped to 2.23 billion U.S. dollars, up from just 17.7 million U.S. dollars in the same period a year ago.

The country approved 331 million U.S. dollars investment in garment factory, 192 million U.S. dollars in telecommunication services, 160 million U.S. dollars in agriculture.

The statistics showed domestic investors topped the rank with 1. 23 billion U.S. dollars, followed by China as the second largest investor with 1.1 billion U.S. dollars and Vietnam as the third with 156 million U.S. dollars.

In 2010, Cambodia approved the investment projects worth 2.69 billion U.S. dollars.

Cambodia factory faintings put big brands under pressure

[REUTERS]

One by one, Yan Chornai's co-workers slumped to the floor of their garment factory in Cambodia's capital, overcome by the sweltering heat, long shifts and choking stench of chemicals.

The exact cause of the sudden illness overcoming about 300 workers at the Hung Wah textiles factory this week is unclear. The factory owners have said nothing as dozens of employees like Yan Chornai were being treated in hospital.

"I looked around me and everyone was collapsing, everyone was scared and crying," Yan Chornai, 23, said from her hospital bed, hooked to an intravenous drip.

The faintings at Hung Wah, which produces clothing for Western brands including H&M Hennes & Mauritz AB (HMb.ST), were not isolated incidents, but part of a growing trend in the "sweat shops" that provide vital revenue for one of Asia's poorest countries.

In another Phnom Penh factory, King Fashion Garment, around 300 people fell ill over two days early last month for reasons still unknown.

Report finds widespread violations at Puma factory in Cambodia

[Monster & Critics]

Phnom Penh - An independent report commissioned by German sportswear giant Puma AG has uncovered an array of violations of national law, international practices and the company's own rules at a Cambodian subcontractor.

Fair Labor Association (FLA), a US-based non-profit group, was asked to investigate conditions at the Huey Chuen factory in Phnom Penh after more than 200 workers apparently fainted over a two-day period in April.

Huey Chuen, which employs 3,300 workers, has since 2006 made shoes for Puma, the world's third-biggest sporting goods maker after US-based Nike and Germany's Adidas.

The report, which was released July 18, said there was 'a strong possibility' that fainting and illness were due to chemicals, adding that excessive overtime also was likely a contributing factor.

Among a litany of breaches, the investigation found Huey Chuen used 'multiple hazardous chemicals.'

One such chemical was toluene, which Puma explicitly bans its subcontractors from using. The US government's Environmental Protection Agency says the solvent damages the central nervous system and may cause miscarriages or developmental problems for unborn children.

No bank, no improvement

[PHNOM PENH POST]

A worker mills rice at Chhoeung Kam’s mill

Local rice traders have been able to build their businesses over the past three years by after working with ACLEDA Bank to access more working capital.

Chhoeurng Kam, 44, a rice-mill owner in Kandal Khanglech vill-age, in the Phnom Srok district of Banteay Meanchey province, said his family began a  small-scale rice-milling operation in 1993 with about US$30,000 in capital.

In 1997, however, Chhoeurng Kam decided to suspend operat-ions, as a civil war seemed likely. In 2005, he opened a larger rice-milling operation with the financial support of relatives.

But he lacked the capital to buy enough rice, so in 2008 he sought a loan from ACLEDA Bank to expand production so he could meet the demand for milled rice in Cambodia and neighbouring countries.