Investment Hightlights
Cambodia Weekly Financial News May 08~12, 2023
2023-05-13View Times｜ 1085
Cambodia Weekly Financial News
May 08~12, 2023
08 May 2023
Four SMEs progress in journey to list on CSX, says CEO
At least four small- and medium-sized enterprises (SME) are working with the Cambodia Securities Exchange (CSX) to list on the local bourse to raise funds and expand operations, according to CSX CEO Hong Sok Hour. He told The Post that these companies are from the construction and tech-related domains. “We’ve been working with them, explaining some of the listing processes and what they should do to prepare … one of the four from the construction sector will be ready before year’s end. “They’ve prepared well for the listing, in terms of corporate governance and internal procurement. They’ll be listing on the Growth Board,” he confirmed, adding that the other three firms will need more time to prepare. “The addition of more companies to the bourse those seeking funds for business expansions or sustainability will highlight the capital market as a key source of funds,” he said.
Source : The Phnom Penh Post
08 May 2023
GDT set to collect capital gains taxes
The General Department of Taxation (GDT) under the Ministry of Economy and Finance has instructed its officials across the country to continue to educate the public about updates to the laws and regulations pertaining to capital gains tax. Officials should be preparing themselves to begin collecting these taxes early next year. In an online workshop organized by the GDT early last week, its deputy director Ken Sambath said that tax reforms have led the GDT to be considered a leading public institution. Through the development and implementation of information technology systems for data management and tax collection, the GDT has developed an “excellent” reputation, both domestically and abroad. “The GDT pays close attention to the government’s reform of the tax sector. In line with its public financial reform programmed and revenue collection strategies, we aim to meet the annual tax collection plan, and contribute to the operating expenses of the Kingdom’s ministries and other state institutions,” he said.
Source : The Phnom Penh Post
08 May 2023
Laos pledges to strengthen bilateral trade with Kingdom
Prime Minister Hun Sen and President Thongloun Sisoulith agreed to strengthen bilateral trade including transmitting electricity from Laos through Cambodia for Singapore’s market and negotiating the agreement on the avoidance of double taxation and prevention of fiscal evasion, a press release of the Ministry of Foreign Affairs and International Cooperation (MFAIC) said. On Friday, both leaders met at the Royal Palace and encouraged relevant ministries and institutions to effectively implement the Action Plan of 2023-2027 for a long-lasting and comprehensive strategic partnership as well as the treaty on the delimitation of the state border between the Kingdom of Cambodia and Laos People’s Democratic Republic, and other documents agreed by both sides for the benefit the people of both countries. Both sides agreed to continue to maintain regular visits and communication between the leaders, ministries and institutions as well as local authorities to enhance traditional friendship and close cooperation in fields, including politics, security, defense, economy, trade, investment, energy, education and connectivity.
Source : Khmer Time
09 May 2023
Cambodia’s Q1 export to US tops $2.5 billion
Cambodia exported $2,499 million worth of products to the United States in the first quarter of this year, an 11 percent decrease as compared to the same period last year, the US Census Bureau reported yesterday. The Kingdom imported $90 million worth of products from the world’s biggest economic power, a 10.9 percent decrease year-on-year. In March alone, Cambodia’s export to the US amounted to $856 million, while import was valued at $22 million. The GSP status, offered to Less Developing Countries by the US, expired last December and the US government is in the process of reactivating the status.
Source : Khmer Time
10 May 2023
Acleda achieves strong performance in Q1
The net profit of the first publicly listed Acleda Bank Plc has increased 9.58 percent to about $38.17 million in the first three months of this year from approximately $35.37 million in the same period of 2022 even though the bank has spent remarkably on interest, according to the bank’s latest report. Acleda Bank’s consolidated and separate interim financial statement released yesterday on the Cambodia Securities Exchange (CSX) the country’s stock market shows that the commercial bank has generated about $183.83 million and approximately $11.6 million of interest income and fee and commission income respectively in the first quarter of 2023. The interest income of the ACLEDA Bank Plc. and its subsidiaries has surged about 17 percent from approximately $157.11 million, while the fee and commission income has fallen slightly or nearly 1 percent from $11.70 million, according to the report, adding that net other income has increased about 16.66 percent to $7 million from about $6 million.
Source : Khmer Time
10 May 2023
CCC’s Australia offices to boost trade ties
The Cambodia Chamber of Commerce (CCC) has begun pursuing closer trade, commercial and economic relations and cooperation with the Australian business community after opening two representative offices in the country at the weekend one in Melbourne on May 6 and the other in Sydney the following day. The meeting was intended to provide the delegation led by CCC vice-president Lim Heng a better overview of: the city’s economic situation, the unique strengths of the region, and possible avenues of cooperation between Cambodian and Australian businesspeople, the statement noted. At the meeting, Heng affirmed that, with the two representative offices open, the CCC will embark on a new chapter in the development in bilateral relations between businesspeople, traders and other private sector players. He suggested that the Regional Comprehensive Economic Partnership (RCEP) could serve as a tool to this end, the statement added.
Source : The Phnom Penh Post
10 May 2023
Cambodia-Vietnam merchandise trade hits $2.43 billion Jan-Apr
The Cambodia-Vietnam merchandise trade volume amounted to more than $2.4 billion in the first four months of 2023, while Cambodian exports increased by nearly 21 per cent, according to provisional General Department of Customs and Excise of Cambodia (GDCE) statistics. In the January-April period, the total goods trade topped $2.430 billion, an increase of 5.6 per cent from the $2.303 billion registered in the same period in 2022. Of that amount, Cambodian exports to Vietnam passed $1.181 billion, up 20.9 per cent year-on-year from $977.270 million, while imports amounted to $1.249 billion, down 5.8 per cent from $1.325 billion. The Kingdom’s trade deficit with Vietnam stood at $67.524 million, narrowing 80.60 per cent from $347.995 million in the year-ago period. Vietnam accounted for 16.03 per cent of Cambodia’s international trade volume in the first four months of 2023.
Source : The Phnom Penh Post
11 May 2023
Chinese firm to invest $138 million in Kratie tire plant
Chinese tire company, Newbustar (Cambodia) Tire Co., Ltd., a subsidiary of Double Star Group, is investing $138 million to build the first tire factory in a special economic zone in Kratie province, about 250 kilometers northeast of Phnom Penh. “The company’s investment will promote friendly trade between China and Cambodia, promote the Kingdom’s industrial and economic development, and create more jobs for the people,” Newbustar said. The factory has an annual production capacity of 8.5 million high-performance radial tires. The governor also praised the achievements and development of the zone, which he said had contributed to the local economy. The company’s investment in the SEZ is contributing to the socio-economic development of Snuol district, Kratie province, and Cambodia as a whole. The investment is promoting economic growth by creating jobs.
Source : Khmer Time
11 May 2023
Cambodia’s international trade declines 14.1%
Cambodia’s international trade stood at $15.16 billion for January to April this year, a decline of 14.1 percent, compared to the same period last year, according to the trade data released by the General Department of Customs and Excise (GDCE) yesterday. While the total exports for the period were recorded as $7.23 billion, showing a decline of 4.9 percent, imports stood at $7.92 billion, a decline of 21.1 percent. For the first four months of the year, Cambodia has a trade deficit of $692.79 million. China is Cambodia’s biggest trade partner with a trade volume of $3.89 billion, followed by the US with $2.52 billion. Vietnam is the third biggest trade partner of the country with $2.43 billion.
Source : Khmer Time
12 May 2023
SME Bank released $53M for tourism business firms
Small and Medium Enterprise Bank of Cambodia Plc. has approved loans to 346 tourism-related firms totaling $53.46M or 35.64 percent of the $150M budget, said a top official of the bank. As of April 30, this year, the SME Bank has approved financing loans of 29 percent for hotels, 25 percent for guesthouses, 31 percent for restaurants and 15 percent for supporting other tourism businesses. Women entrepreneurs participated in the development of the tourism industry to the extent of 41 percent. In a statement made last week on May 4, Minister of Tourism Thong Khon expressed confidence that the successful hosting of the 32nd SEA Games and 12th ASEAN Para Games would help promote the Kingdom as a popular tourist destination and increase the number of foreign visitors in the future.
Source : Khmer Time
12 May 2023
$60M World Bank support for Cambodia’s solid waste and plastics management
The World Bank Board of Executive Directors on Wednesday approved a $60 million International Development Association credit to support Cambodia’s improvement of solid waste and plastic management. The project will be co-financed by a grant from the PROBLUE Trust Fund in the amount of $3 million, the bank said in a release. It said economic growth, urbanization, and tourism have led to a substantial increase in solid waste and plastics use in Cambodia over the years. As a result of low collection rates and inadequate treatment and disposal of waste, the dumping of waste and plastics in the environment and waterways, street littering, and the practice of burning have become widespread. In addition, inadequate regulatory frameworks, policies, and enabling conditions are limiting the effectiveness of waste management efforts, the bank pointed out.
Source : Khmer Time
12 May 2023
Cambodia loans from banks and microfinance institutions worth $47B
Banks and microfinance institutions provided credit loans worth $47 billion for 4.6 million Cambodians in 25 provincial and capital until 2022, said a report from Credit Bureau (CBC). CBC, a tech company offering credit reports and compliance solutions, said in the report that 60 percent of the loans were handed over to beneficiaries from Phnom Penh, Kandal, Siem Reap, and Banteay Meanchey, the top four provincial capitals. As per the report, more than 42 percent of all loans offered went to people as well as organizations based in Phnom Penh with the number of borrowers put at 6.17 million.
Source : Khmer Time
