Investment Hightlights
Cambodia Weekly Financial News June 05~09, 2023
2023-06-10View Times｜ 1068
Cambodia Weekly Financial News
June 05~09, 2023
05 June 2023
Cashew association members negotiate lower interest rates
Members of the Cashew Nut Association of Cambodia (CAC) will soon benefit from a preferential interest rate of 5.5 per cent, a marked reduction from the previous 9-12 per cent. The new rate follows a memorandum of understanding between the Small and Medium Enterprise Bank of Cambodia (SME Bank) and the CAC, aiming to enhance finance accessibility for small and medium cashew processing enterprises. Lim Aun, CEO of the SME Bank, viewed this collaboration as a strategic move towards fostering the Cambodian cashew sector’s growth. “The signing of this memorandum of understanding will address the cashew production chain’s challenges, enhancing the cashew processing industry,” he said. According to data from the Cashew Nut Association of Cambodia, from January to March, Cambodia generated 260,000 tons of raw cashew nuts. However, exports to Vietnam, amounting to 233,050 tons worth $320 million, fell by 12.95 per cent compared to the same period in 2022.
Source : The Phnom Penh Post
05 June 2023
ADB says Cambodia about to graduate from least developed country status
Two decades after its inclusion on the list of the least developed countries, Cambodia met the graduation criteria for the first time in 2021, with plans to graduate as early as 2027, said an Asian Development Bank (ADB) report on Friday. “This is a major achievement, as graduation from the least developed country status means that a country has achieved significant economic and social development goals,” the report said. However, the least developed country graduation also presents challenges, it said, adding that graduation means the loss of preferential trade benefits, including duty-free status and favorable “rules of origin.” The report said Cambodia is one of the few least developed countries that has dramatically increased its exports to the European Union through preferential treatment and lenient rules of origin, allowing its products to enter Europe duty-free.
Source : Khmer Time
05 June 2023
Cambodia receives 64 investment projects with a total capital of over $540 million in five months of 2023
In the first five months of 2023, 64 investment projects with a total investment of $540.74 million were approved by the Council for the Development of Cambodia (CDC), creating 78,292 jobs. This number compared to the same period in 2022 saw a significant decrease, while in the first five months of 2022, the CDC approved 72 investment projects with a total investment of more than $2.648 billion and provided employment opportunities to 44,659 people. According to the report of the CDC, out of 64 investment projects, in January, 10 investment projects with a total investment of $99.4 million provided 17,129 job opportunities, in February, there are 17 investment projects with an investment capital of $98.8 million provide 22,784 job opportunities.
Source : Khmer Time
05 June 2023
Banks now create special teams to deal with HNWIs
Many banking institutions in Phnom Penh have begun creating special teams or divisions to deal with High-Net-Worth Individuals (HNWIs) – both citizens and expatriates, reveal sources within the banking industry. As per the existing definitions within the financial sector, HNWIs are individuals with more than $1 million in investible assets and Ultra High Net Worth Individuals (UHNWIs) are those possessing over $30 million in investible assets. According to sources, the formation of these teams is in light of heavy competition between the private banks here to generate more businesses and profits along with the recent rise of the millionaire population in Phnom Penh and other Cambodian cities.
Source : Khmer Time
06 June 2023
Cambodia, Vietnam sign trade enhancement pact
Cambodia and Vietnam signed a trade enhancement agreement to increase economic cooperation between the two countries. On June 2, Pan Sorasak, Minister of Commerce, and Nguyen Hong Dien, Minister of Industry and Commerce of Vietnam, virtually signed MoU on trade and economic cooperation. The signing ceremony was attended by relevant officials from both ministries. “The bilateral trade enhancement agreement between the two governments for 2023-2024, which has now been signed, is an important document for businesses and exporters and importers, and will also help boost the import and export of goods between countries in addition to the agreement within the framework of the ASEAN Trade in Goods Agreement,” Nguyen Hong Dien said. The two sides expressed great optimism about the bilateral trade facilitation coordination, stating that the Ministry of Commerce and the Ministry of Industry and Trade of Vietnam will actively work together to promote to producers and export and import companies for boosting the implementation and maximize the benefits of the bilateral trade enhancement agreement.
Source : Khmer Time
06 June 2023
Cambodia’s 99.3% job rate among world’s best
Cambodia’s employment rate continued to be strong at 99.3 percent and remained one of the best in the world. This was recently disclosed by Ith Samheng, Minister of Labor and Vocational Training, as he hailed the role of the National Employment Agency (NEA) for this achievement. Presiding over a lecture on ‘Labor Market and Economic Development,’ at the Royal School of Administration, the minister described the vision, mission and success of the ministry in developing the labor market in Cambodia and thereby contributing to the development of the national economy. According to a release, Samheng stated that the ministry paid close attention to the development of the labor market by responding to changes in the socio-economic and technological structure. It also strengthens social welfare through active participation in the implementation of important national strategies and policies set by the Royal Government.
Source : Khmer Time
06 June 2023
Cambodia to become higher-middle-income country by 2030
Prime Minister Hun Sen expressed confidence that Cambodia will become a high-middle-income country by 2030, despite the challenges posed by the global economy, the war between Ukraine and Russia, and the climate change crisis. He said despite the uncertainty of the global economy, geographical issues, the Covid-19 pandemic, and the climate change crisis, Cambodia can achieve its goal of becoming a higher-middle-income country. “Despite the challenges of climate change, epidemics and geopolitical uncertainty, I am confident that Cambodia will leave the status of a least developed country by 2027 and reach its goal of becoming a high-middle-income country by 2030,” he said, adding, “As set out as the goal of sustainable development, the economic growth we have today gives us the opportunity to reach our goals.” The government has set a goal of transforming Cambodia into a higher-middle-income country by 2030 and a high-income country by 2050.
Source : Khmer Time
07 June 2023
Kingdoms level up QR code payments
Cambodia and Thailand on June 6 formally rolled out Phase II of their transnational QR (Quick Response) code payment system. Through this initiative, the two ASEAN kingdoms seek to promote financial inclusion and the use of local currencies as well as cross-border trade and tourism flows. The system currently enables KHQR payments to 7.6 million merchants in Thailand and ThaiQR payments to 1.5 million merchants in Cambodia, according to a statement posted on National Bank of Cambodia (NBC) deputy governor Chea Serey’s official Facebook page. KHQR and ThaiQR are universal QR code standards for retail payments in Cambodia and Thailand, respectively. The launch came during a bilateral meeting in Phnom Penh between NBC governor Chea Chanto and his Bank of Thailand (BoT) counterpart Sethaput Suthiwartnarueput, the NBC noted in a press release. The meeting also sought to strengthen collaboration in banking sector development, financial technology (fintech) and other economic areas, the NBC said.
Source : The Phnom Penh Post
07 June 2023
Cambodia’s insurance industry records 5.6 pct growth in Q1
Cambodia’s insurance industry recorded a total premium of 93.3 million U.S. dollars in the first quarter (Q1) of 2023, up 5.6 percent from 88.3 million dollars in the same period last year, a report showed on Tuesday. The growth was generated from 18 general insurers, 14 life insurers, seven micro-insurance companies and one reinsurance firm, the report of the Insurance Regulator of Cambodia (IRC) said. The gross premium of general insurance market during the January-March period this year was 42.7 million dollars, a year-on-year increase of 6.5 percent, while life insurance premium totaled 48.7 million dollars, up 3.5 percent, and micro-insurance premium amounted to 1.83 million dollars, up 45 percent, the report added. It said the total amount of claims paid out by the insurers was 5.85 million dollars in the cited period, up 20.6 percent from 4.85 million dollars a year earlier. According to the report, Cambodia’s insurance sector had 1 billion dollars in total assets as of Q1 this year, a year-on-year increase of 9.6 percent.
Source : Khmer Time
08 June 2023
CSX-listed garment maker posts first-quarter results
Cambodian-listed Taiwanese garment manufacturer Grand Twins International (Cambodia) Plc (GTI) reported an overall decline in business performance in the first quarter of the year ended March 31 amid a global slowdown in demand fueled by the prolonged Ukraine conflict. In a June 6 filing to the Cambodia Securities Exchange (CSX), GTI posted revenue and profit before income tax of 64.667 billion riel ($15.8 million) and 550.090 million riels for the January-March quarter, down 42.25 per cent and down 73.19 per cent year-on-year from 111.978 billion riel and 2.051 billion riels. The firm reported negative comprehensive income of 96.583 million riel for the quarter, compared to a positive 1.117 billion riel in the year-ago period.
Source : The Phnom Penh Post
08 June 2023
AFD to support Cambodia’s digitalization drive
French Development Agency (AFD) recently affirmed its commitment to support Cambodia’s digitalization efforts in tune with the government’s Digital Economy and Society Policy Framework 2021-2035. The affirmation came when visiting AFD President Philippe Le Houérou met Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, on Tuesday, said a press release. He was accompanied by Jacques Pellet, Ambassador of France to Cambodia. During the meeting, the minister appreciated the contributions of AFD to the development of Cambodia. As an important development partner, AFD supported Cambodia in various sectors such as agriculture, microfinance, tourism, water, education, culture and energy, he pointed out.
Source : Khmer Time
09 June 2023
Cambodia, UAE sign economic partnership
Cambodia and the United Arab Emirates (UAE) signed a Comprehensive Economic Partnership Agreement on June 8 in Phnom Penh, with the foreign ministers of both nations hoping the agreement will elevate bilateral relations to new heights. A Ministry of Foreign Affairs and International Cooperation’s June 8 press statement said that after signing of the agreement, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Prak Sokhonn and Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade met for talk to strengthen bilateral relation between the two countries. The ministry said both sides expressed deep satisfaction at the flourishing bilateral relationship and shared optimism at the potential for a further expansion of exchanges between the two nations. They also reviewed opportunities in trade, investment, tourism, connectivity, energy, agriculture, logistics and human resources.
Source : The Phnom Penh Post
09 June 2023
ACLEDA Bank, Credit Bureau ink financial health check services pact
ACLEDA Bank Plc, the first listed commercial bank in Cambodia, signed an agreement with Credit Bureau (Cambodia) Co., Ltd. (CBC), a leading credit reporting service provider, for cooperation on financial health check service via the ACLEDA mobile app. “It is important for clients to have a financial health check before applying for a loan, as this condition is also required by law and helps protect the client and the financial sectors from risks. It is now the second step for ACLEDA Bank and CBC to sign an agreement for cooperation on financial health check service via ACLEDA mobile app to provide a faster, easier way for customers to request their credit report anytime, anywhere from their smartphones with moderate fees,” Channy added. The CBC function in ACLEDA Mobile will show the history of borrowing and repayment of customers with ACLEDA Bank or other banks and financial institutions.
Source : Khmer Time
09 June 2023
World Bank to support Cambodia’s skills initiative
Cambodia will likely start implementing a massive reskilling and upskilling project with the support of the World Bank in 2024 for which the bank has proposed an allocation of $40 million. A number of training institutions (TIs) and job centers (JCs) will be set up across the country under the project. Named Cambodia Skills for Better Jobs Project (SBJP), it is expected to benefit the poor and bottom 40 percent of society in building capabilities and skills, allowing them to obtain better jobs with higher earnings, according to documents released by the Ministry of Labor and Vocational Training (MLVT) on Wednesday. The project is set to be appraised by World Bank on June 27. The primary project beneficiaries are individuals in the upcoming and existing workforce in Cambodia who enroll or complete vocational training and seek opportunities for better jobs, said the draft ‘Stakeholder Engagement Plan,’ released by MLVT.
Source : Khmer Time
