Investment Hightlights
Cambodia Weekly Financial News 02~06 Jan 2023
2023-01-07View Times｜ 1063
Cambodia Weekly Financial News
02~06 Jan 2023
02 January 2023
Cambodia sees new policy framework, ADB loan & BFC extension in 2022
Implementation of the National Policy Framework for Cambodia’s Economic Productivity 2022-35, a pact with Japan to make Sihanoukville a major port, a $50-million loan from the Asian Development Bank to back economic diversification and boost competitiveness, and an extension of the Better Factories Cambodia (BFC) program for five years marked the year 2022 in Cambodia. In November, the government announced the implementation of the National Policy Framework for Cambodia’s Economic Productivity 2022-35 to raise the potential of investment and trade and improve national economic productivity. The Asian Development Bank (ADB) in December approved a $50 million policy-based loan under sub-program 1 of the Trade and Competitiveness Program to support Cambodia in diversifying its economy and boosting global competitiveness.
Source: Khmer Time
02 January 2023
PM says Cambodia’s economy maintained 5.5 pct growth rate
Prime Minister Hun Sen expressed his happiness about the economic recovery and its growth of up to 5.5 percent in 2022. He stated that the revenue of more than $6 billion is just tax revenue, without other non-tax revenue, such as income from tourist visas, mining revenue, etc. The economy is now recovering at a rate of 5.5 percent by 2022, with 127 percent of the national budget collected, with customs revenue of $2.690 billion (104.94 percent) and tax revenue of $ 3.455 million (122 percent),” said the Premier. For 2023, the Prime Minister expects that Cambodia will have a surplus of the current budget.
Source： Khmer Time
02 January 2023
Cambodia’s goods export to the US rise nearly a quarter on-year to $8.2B
Cambodia and the US traded goods worth $8.510 billion in the first 11 months of 2022, marking gains of 21.79 percent on-year, with Cambodian exports to the world’s largest economy accounting for a 96.56 percent share, according to the General Department of Customs and Excise (GDCE). In the January-November period, Cambodian exports amounted to $8.218 billion, up 23.01 percent year-on-year, and imports $292.798 million, down 4.78 percent. The Kingdom’s trade surplus with the US for the 11-month period expanded by 24.35 percent, from $6.373 billion to $7.925 billion. The US remained the largest buyer of Cambodian goods, constituting a 40.17 percent market share of the total $20.458 billion, while its exports to the Kingdom accounted for a 1.06 percent share of the total $27.747 billion.
Source： The Phnom Penh Post
03 January 2023
Jan-Nov exports to Thailand grow by 35.4% on-year
Cambodian goods exports to Thailand witnessed a sharp 35.36 percent on-year increase in the first 11 months of 2022, reaching $756.107 million as shown by Customs data, which has been heralded as a reflection of the strong economic ties between the two ASEAN nations and as a payoff for Cambodia’s Economic Diplomacy Strategy (EDS) for 2021-2023. In the January-November period, the two-way merchandise trade amounted to $4.298 billion, up 18.31 percent year-on-year, and Cambodian imports $3.542 billion, up 15.22 percent, according to statistics from the General Department of Customs and Excise (GDCE). Cambodia’s trade deficit with Thailand for the 11-month period expanded by 10.75 percent, from $2.516 billion to $2.786 billion.
Source： The Phnom Penh Post
03 January 2023
CSX lists the second tranche of Royal Railway’s bond
The Cambodia Securities Exchange (CSX) and the monopoly in railway business Royal Railway Plc of the conglomerate Royal Group of Companies co-hosted an official bond listing ceremony for the latter’s second tranche after it issued and listed the guaranteed bond for qualified investors, according to a press release by CSX. After being officially listed in October last year, the Royal Railway successfully issued and listed the bond with a total offering size of approximately $24 million, which is divided into two series namely bond 1 or Royal Railway Guaranteed Bond 1 contains 492,000 units at coupon rate SOFR+3.5 percent or 5 percent per annum higher coupon rate will be taken. The Royal Railway Guaranteed Bond 1 will be paid on a semi-annual coupon payment method at a 5-year maturity date from 2022 to 2027, while the bond 2 or Royal Railway Guaranteed Bond 2 will be issued and listed with another 492,000 units at coupon rate SOFR+3.5 percent or 5 percent per annum from year 1 to year 5 and SOFR+3.75 percent or 5 percent per annum from year 6 to year 10 on the same payment method with 10-year maturity date from 2022 to 2032, said the release.
Source： Khmer Time
03 January 2023
GDP increase expected for 2023
GDP per capita is expected to reach nearly $2,000, while Cambodia’s economic growth is expected to reach 6.6 percent in 2023. The Kingdom will have a surplus of the current budget, especially if Chinese tourists enter the country as China is scheduled to reopen this month. The predicted influx of Chinese tourists will make the Cambodian economy. The Royal Government expects the Cambodian economy to grow by 6.6 percent, and the per capita gross domestic product (GDP) is expected to reach $1,924. The Premier said the revenue from taxes alone for the Kingdom is more than $6 billion.
Source： Khmer Time
04 January 2023
Business credit guarantee plan remains in place
The finance ministry has authorized the extension of the Credit Guarantee Corporation of Cambodia Plc’s (CGCC) $200 million Business Recovery Guarantee Scheme (BRGS) beyond December 31, 2022, until all funds have been utilized, according to the CGCC. The scheme aims to widen access to formal loans from participating financial institutions (PFI) for working capital, investment, and business expansions. The terms of the BRGS have also been updated, including the maximum guarantee amounts for differing categories of businesses, CGCC noted in a statement. “CGCC looks forward to working closely with all stakeholders to support the growth of businesses with the BRGS,” it added. “CGCC’s credit guarantee under BRGS will continue to act as collateral for 70-80 percent of the loan amount borrowed from the PFIs, thus, reducing the physical collateral required from the borrowers.”
Source： The Phnom Penh Post
04 January 2023
Acleda Bank dominates Cambodia’s stock exchange
The overall share price index and full market capitalization on the bourse operator Cambodia Securities Exchange (CSX) have been dominated by ABC which is the stock symbol of the first listed commercial bank Acleda Bank Plc, according to CSX’s latest report. However, senior officials in the industry said the stock’s domination has positive impacts on the market. The overall share price index at CSX has fallen 4.71 percent to 467.02 points in the third quarter of this year compared to the same period of last year, while the full market capitalization has declined 2.20 percent to nearly $4 billion as the total trading volume and value the number of shares traded on the stock exchange and the total trade value has slowed down by 11.90 percent and 4.57 percent respectively, said CSX’s quarterly statistic report.
Source： Khmer Time
04 January 2023
Implementation of new income and salary tax come into effect
All organizations and institutions associated with the Royal Government of Cambodia have started implementing the new taxes on the annual income of individuals and sole proprietorship businesses and monthly salaries of resident employees from January 1, 2023, following a new sub-decree issued on September 28, 2022. Individuals and sole proprietorship enterprises that generate from zero to 18 million riels shall be taxed at zero percent, while those who earn from 18,000,001 riels to 24,000,000 riels shall be taxed at 5 percent and those who earn between 24,000,001 riels and 102,000,000 riels shall be taxed at 10 percent, said the sub-decree. The sub-decree also states that individuals and sole proprietorship enterprises that earn from 102,000,001 riels to 150,000,000 riels will be taxed at 15 percent and those who generate more than 150,000,000 riels shall be taxed at 20 percent.
Source： Khmer Time
05 January 2023
Education firm seeks applications for listing review with CSX
The education firm Mengly J. Quach Education has obtained an application form from the bourse operator Cambodia Securities Exchange (CSX) to fill in to apply for listing eligibility review, according to a senior official in charge of market operations at the bourse. Mengly J. Quach Education has expressed its intentions to be listed at the main board the first market that establishes and operates for the securities listing of potential listed companies which are standardized and huge capital and allow all companies to bring their shares after listing to list and trade on the CSX’s platform, according to the official. To be listed on the main board of Cambodia’s stock exchange, the applying firm needs to have $7.5 million of shareholders’ equity and $0.5 million of net profit for the latest year and $0.75 million for the latest two years along with two-year audited financial report and at least 200 shareholders and 7 percent of the total voting shares, according to CSX’s requirements.
Source： Khmer Time
05 January 2023
RCEP will help Cambodia graduate from its least developed country (LDC) status by 2028
Cambodia’s trade with the Regional Comprehensive Economic Partnership (RCEP) member countries reached $28.4 billion in the first 11 months of 2022, a year-on-year increase of 7 percent, the Ministry of Commerce’s latest report showed on Tuesday. Cambodian Ministry of Commerce’s Undersecretary of State and Spokesman Penn Sovicheat said “The world’s largest free trade pact would help Cambodia to graduate from its least developed country (LDC) status likely by 2028 and to achieve its goals of becoming an upper-middle income country in 2030.” The report said the kingdom’s export to the RCEP member countries was valued at $5.67 billion during the January-November period last year, up 5 percent, while its import from the RCEP member countries totaled $22.73 billion, up 7 percent.
Source： Khmer Time
05 January 2023
Cambodia’s e-commerce market eyes $1.78B by 2025
With the growing reach of the Internet, better access to newer technologies, increasing digitization, and rise in income levels, the e-commerce sector in Cambodia is marching ahead on a firm growth path. Since 2020, the e-commerce sector has registered consistent growth. The market value of e-commerce in Cambodia is estimated to reach $1.11 billion in the year just gone by, $1.28 billion this year, $1.50 billion in the next year, and $1.78 billion in 2025. The e-commerce market in Cambodia is expected to expand by a compound annual growth rate of 13.51 percent during 2023-27 which may take the market volume to $2.10 billion in 2027, according to research by statista.com. By 2027, the number of e-commerce market users in Cambodia is expected to increase to 8.8 million and the user penetration to grow to 48.1 percent from 40.1 percent in 2023, as per the model calculation of the market trend. The average revenue per user could grow to $181.50 by 2027, according to the statista.com assessment. Between 2022 and 2027, the e-commerce sector in Cambodia is expected to grow at a compound annual growth rate of 14.5 percent, said a market participant.
Source： Khmer Time
06 January 2023
Cambodia reports $6.6M budget surplus in 11 months
The Royal Government of Cambodia has collected 22,302 billion riels or $5.44 billion as the total national revenue in the first 11 months of 2022, while the total national expenditures reached 22,275 billion riels or $5.43 billion, resulting in 27 billion riels or $6.6 million received as the surplus of the national budget, according to a report released by the Ministry of Economy and Finance (MEF). The government has generated a national revenue of 0.26 percent, 100.26 percent higher than the amount set as its target in the annual budget law for 2022 even though the figures for December or the whole year 2022 have not been updated, while the national expenditures have reached 71.62 percent compared to the law, the report said on Wednesday. The State Budget Implementation for November 2022 shows that the government has generated domestic revenue 25.57 percent higher than the amount it earned in the same period of 2021, of which tax revenue increased by 26.07 percent and non-tax revenue rose by 21.85 percent as the economic activities in Cambodia have recovered.
Source： Khmer Time
06 January 2023
Walmart eyes business expansion in Cambodia
The American multinational retail corporation Walmart has sought to work with the Ministry of Commerce (MOC) in studying the potential in Cambodia to expand its business operations in the market and to release more orders of international-standard goods from local suppliers in the Kingdom, according to a release by MOC. Anbinh Phan, a representative of Walmart, said during a video conference meeting with Pan Sorasak, Minister of MOC that the US-based chain-of-hypermarket operator has the intention to expand its business operations and strengthen cooperation with partners in doing business and investment to create more jobs in Cambodia, especially women to help boost the country’s economy and reduce poverty.
Source： Khmer Time
