Investment Hightlights
Cambodia Weekly Financial News May 22~26, 2023
2023-05-27View Times｜ 1093
Cambodia Weekly Financial News
May 22~26, 2023
22 May 2023
PPC Bank, PRASAC post first-quarter financials
Two financial institutions with corporate bonds on the Cambodia Securities Exchange (CSX) reported mixed results for the first quarter of the year ended March 31 amid a worldwide economic downturn tied to growing inflation and the protracted Ukraine crisis. In its May 18 filing to the CSX, Phnom Penh Commercial Bank Plc (PPC Bank) reported profit before tax, net profit, and net interest income of 27.078 billion riel ($6.7 million), 21.226 billion riel, and 47.484 billion riels in the January-March quarter, respectively, down 22 per cent, 23 per cent, and 9.3 per cent year-on-year. “The [decrease in] the profit is mainly from increasing of interest expense on customer deposits,” the report said, noting that revenues were also lower in the three-month period.
Source : The Phnom Penh Post
22 May 2023
Cambodia's apparel exports dip 28% on-year in Jan-Apr
Cambodia earned $1.395 billion from the export of “articles of apparel and clothing accessories, knitted or crocheted” in the first four months of 2023, down 28.49 per cent year-on-year and down 40.80 per cent half-on-half (compared to July-October 2022), according to provisional Customs (GDCE) data compiled in “International Merchandise Trade Statistics” bulletins. This category of items, corresponding to Chapter 61 of the Harmonized System (HS) of Tariff Nomenclature, accounted for 19.28 per cent of the $7.234 billion value of the Kingdom’s total merchandise exports over the four months compared to 25.64 per cent and $7.606 billion in January-April 2022, as well as 31.97 per cent and $7.368 billion in July-October 2022.
Source : The Phnom Penh Post
22 May 2023
Cambodia’s FDI strategies right on track
Cambodia’s strategies to attract Foreign Direct Investments (FDIs) are right on track amid increasing regional competition, according to an industry veteran. Speaking to Khmer Times yesterday, Vichet Lor, Vice-President (Cambodia Chapter) of Cambodia Chinese Commerce Association, said that open trade policies being implemented by the national government will make Cambodia an ideal investment destination for foreign investors. “The political stability of Cambodia along with its liberal and open trade policies are making it an ideal investment location,” the industry veteran says.
Source : Khmer Time
22 May 2023
Kingdom, China to deepen trade, investment, tourism ties
Cambodia and China will jointly hold a series of events this year to boost trade, investment, tourism, and other key areas of cooperation. “The two countries will co-organize various events to strengthen and expand cooperation in areas such as trade, investment, and tourism, as well as other priority areas,” Mr. Dara Secretary of State at the Ministry of Commerce, said. According to the ministry’s report, Cambodia’s trade with China increased by five percent to $11.686 billion in 2022. Cambodia exported $1.240 billion worth of goods to China and imported $10.445 billion worth of goods from the country.
Source : Khmer Time
23 May 2023
$588M investment projects approved in four months
The Council for the Development of Cambodia (CDC) approved 65 fixed asset investment projects worth more than $588 million in the first four months of this year. Chinese investors are the largest source of foreign direct investment (FDI) in Cambodia. FDI from China accounted for 73.5 percent of total FDI in the country. Chea Vuthy, deputy secretary-general at CDC, said that FDI played a significant role in developing Cambodia’s socio-economic development. “Foreign direct investment, particularly from China, has played an important role in contributing to economic development, enhancing people’s lives through capital flows, generating jobs for local people, and increasing exports,” he said during a Cambodia-China business forum on Friday. Vuthy also said that the growing Chinese investment is a reflection of investors’ confidence in the country. He attributed this confidence to the cooperation between the governments, favorable investment environment, and the country’s positive economic outlook.
Source : Khmer Time
23 May 2023
ABA, Acleda, Canadia dominate Cambodia’s banking market
The Advanced Bank of Asia Limited (ABA), Acleda Bank Plc and Canadia Bank Plc dominated the banking market in Cambodia with their largest shares of total assets, market share, profits, deposits and loans last year, according to the latest banking supervision report for 2022 issued by National Bank of Cambodia (NBC). ABA and Acleda Bank are at the forefront in lending to borrowers among all commercial banks in the country as the two commercial banks have released $6.5 billion and $6.3 billion respectively, followed by Canadia Bank has released nearly $5 billion to their customers in different sectors such as financial institutions, agriculture, forestry, fishing and mining. Commercial banks also provided loans to borrowers in quarrying, manufacturing, utilities, construction, wholesale trade, retail trade, hotels, restaurants, transport, storage, information media, telecommunications, rental, operational leasing activities, real estate activities, non-financial services, personal essentials and other lending, said the report.
Source : Khmer Time
23 May 2023
2C2P, AMK to expand remittance coverage between Thailand and Cambodia
2C2P, a payment gateway service provider founded in Thailand, has partnered with Cambodia’s AMK Microfinance Institution to expand its international remittance service “easy2send” between Thailand and Cambodia. easy2send by 2C2P was launched in 2019, supporting real-time money transfers from Thailand to Myanmar, Singapore, Vietnam, Cambodia, and UnionPay cardholders in China and worldwide at a starting fee of 99 baht. Through this new partnership, customers can transfer funds through easyWallet, 2C2P’s proprietary mobile wallet, to over 10,000 payment points in Thailand to AMK users in Cambodia. Chief Executive Officer of 2C2P Thailand said, “This collaboration between 2C2P and AMK expands the coverage of Cambodia’s money-receiving network. Cambodian migrant workers and import businesses in Thailand can now send money using digital payment methods such as e-wallets instantly.
Source : Khmer Time
23 May 2023
Wing Bank and UnionPay International team up to Enhance Outbound Money Transfer and Digital Payment Experience
Wing Bank (Cambodia) Plc, the bank for every Cambodian, has announced its strategic partnership with UnionPay International (UPI), a leading global payment network. The partnership aims to broaden international money transfer services and explore future collaborations in digital payment. This significant milestone was commemorated by the signing of a Memorandum of Understanding (MoU) under the distinguished presence of Neak Oknha Kith Meng, Chairman of Wing Bank, and Chairman and CEO of the Royal Group of Companies, and Mr Huiming Cai, General Manager of UnionPay International Southeast Asia.
Source : Khmer Time
24 May 2023
Kingdom due to host Asia-Pacific financial development forum
Cambodia is set to host the 47th Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) Annual Meetings from May 14-16, 2024. Centered on regional financial development, the meetings are expected to bring together delegates from some 40 countries to share their knowledge and expertise in the domain. Kao Thach, CEO of the state-owned Agricultural and Rural Development Bank (ARDB), was selected as the vice-chairman of the ADFIAP Board of Directors on May 16 at the 46th edition of the event in Almaty, Kazakhstan. Thach confirmed to The Post on May 24 that the ARDB was chosen by the ADFIAP to host the 47th edition of the annual meetings next year. “The Annual Meetings will enhance cooperation and partnerships among institutions that finance development in the Asia-Pacific region. This is a great opportunity for Cambodia to share its knowledge and experiences concerning financing implementation programs with all the Asia-Pacific financial institutions,” he said.
Source : The Phnom Penh Post
24 May 2023
Cellcard IPO roadshow extends to Taiwan, Hong Kong
The conglomerate Royal Group’s telecommunications portfolio CamGSM Plc known as Cellcard has recently conducted a successful Initial Public Offering (IPO) roadshow in Taiwan and Hong Kong, according to a release by the telecommunications operator. The release pointed out that the roadshow has attracted more than 40 investors in Taiwan for a briefing held at the Okura Prestige Hotel in Taipei, generating a lot of interest and excitement in the Taiwanese financial market. “The roadshow was led by members of the senior management, who presented the company’s strong financial operational performance as well as its future growth plans,” the release pointed out, adding that another IPO briefing was also conducted across three investment firms at Cinda International Asset Management Ltd in the Cosco Tower in Hong Kong.
Source : Khmer Time
25 May 2023
Number of trading accounts on CSX rises
The number of trading accounts on the Cambodia Securities Exchange (CSX) is increasing, with most of the trades being small in size, reflecting the growing interest of the public and new investors in the local stock market, a senior official said. Despite a decrease in trade volume to around $300,000 per day, the number of trading accounts on CSX increased to an average of 40,000 in the first four months of this year, said Hong Sok Hour, CEO of the Cambodia Securities Exchange. “Despite the global economic uncertainty, CSX is still on track for positive growth. The CEO said that the average trading account is expected to increase to 50,000 accounts by the end of 2023. “The increasing number of trading accounts, even with small investment sizes, reflects the growing public interest in the stock market. We expect the trading volume to increase in the future,” he said.
Source : Khmer Time
25 May 2023
Kingdom sees ASEAN Trade in Services Agreement benefits
Cambodia is expected to benefit economically from the ASEAN Trade in Services Agreement (ATISA), a comprehensive agreement that aims to liberalize trade in services within the 10 ASEAN member states. Pan Sorasak, Minister of Commerce, said that ATISA was negotiated to strengthen economic connectivity and provide better opportunities for economic development in the ASEAN Economic Community. ATISA is expected to increase trade and investment by easing restrictions on trade in services, creating a wider market and economy. “The agreement will strengthen economic relations between all ASEAN member countries by promoting and facilitating the better utilization of opportunities, enhance regulatory cooperation, establish cooperation in the field of human resource development, and increase the participation of small and medium enterprises in trade and services activities,” Sorasak said.
Source : Khmer Time
26 May 2023
Cambodia rides RCEP wave with growth in exports
Cambodia’s exports to countries participating in the Regional Comprehensive Economic Partnership (RCEP) grew by seven percent in the first year of the implementation of the mega agreement in 2022, compared to the previous year, and by 16 percent in the first quarter of 2023 compared to the same period last year. According to Cambodia’s Ministry of Commerce’s assessment, the trade pact involving 15 countries could raise the Kingdom’s GDP anywhere from two percent to 3.8 percent in the future. This was disclosed by Sokheng Sim, Secretary of State at the Ministry of Commerce and Cambodia’s Chief Negotiator at RCEP, recently. Cambodia implemented RCEP on January 1, 2022, and in one year its total trade with RCEP countries reached $31 billion, comprising $24.6 billion in imports and $6.34 billion in exports. For the first quarter of 2023, the total trade went to $9.8 billion, with imports accounting for $6.93 billion and exports $2.89 billion.
Source : Khmer Time
26 May 2023
Cambodia’s Sathapana Bank and Singapore based Finbots.ai link up
Accel-backed finbots.ai, a Singapore headquartered B2B SaaS FinTech today announced signing Cambodia’s leading commercial bank—as their latest client. With this, finbots.ai’s fast growing client case has extended to 9 countries across APAC and MEA markets. Sathapana Bank is one of the leading commercial banks in Cambodia with the second largest branch network in the country of over 170 branches across Cambodia. Sathapana Bank offers a wide range of banking and financial services for consumers, businesses, and SMEs. With this move, Sathapana Bank will be one of the pioneer banks in Cambodia to migrate their credit risk management to an advanced AI-led solution. The pivot to finbots.ai is part of the Bank’s strategic investments in digital and business transformation. With finbots.ai’s AI- led credit modelling platform credit, Sathapana Bank will be able to better assess credit worthiness of applicants for personal, home, agriculture, and SME loans, thereby accelerating business growth without increasing risk.
Source : Khmer Time
