Investment Hightlights
Cambodia Weekly Financial News July 24~28, 2023
2023-07-29View Times｜ 1073
Cambodia Weekly Financial News
July 24~28, 2023
24 July 2023
Form e-mobility task force, ESCAP tells Cambodia
The Ministry of Public Works and Transport (MPWT) can establish a National e-Mobility Task Force to enhance the development of electric vehicles in Cambodia, according to ESCAP’s report on the National Policy Framework for Electric Mobility Development in Cambodia. The task force includes representation from different ministries at two levels including, senior and execution levels. The recent study, which was commissioned by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) for MPWT, was prepared under the overall guidance of Madan Bandhu Regmi of the Transport Research and Policy Section, Transport Division, ESCAP. The study said EVs hold great potential for Cambodia, as they can bring numerous benefits to the country.
Source : Khmer Time
24 July 2023
Cambodia-ASEAN trade dips 17% to $7.1B in H1
The volume of goods exchanged between Cambodia and the other nine ASEAN member states in the first half of 2023 reached $7.139 billion, down 17.2 per cent year-on-year and down 3.9 per cent half-on-half, according to statistics from the General Department of Customs and Excise of Cambodia (GDCE). The Southeast Asian bloc accounted for 30.13 per cent of the Kingdom’s $23.694 billion in international trade for the six-month period. These figures were nearly 31.7 per cent and $27.244 billion in the first half of 2022. The data, published by the GDCE and Ministry of Commerce, indicates that Cambodia’s exports to and imports from the nine countries during the period came in at $2.481 billion and $4.659 billion, respectively, up 36 per cent and down 31 per cent year-on-year, narrowing the Kingdom’s trade deficit with the region by 56 per cent on an annual basis to $2.18 billion.
Source : The Phnom Penh Post
24 July 2023
CSX prepares for construction firm’s Growth Board listing
An undisclosed construction-related company that wishes to list on the Cambodia Securities Exchange’s (CSX) secondary Growth Board and raise money to expand its operations is forging ahead with internal IPO (initial public offering) compliance work, with assistance from a “technical team” from the local bourse. CSX CEO Hong Sok Hour confirmed this to The Post on July 24, but declined to provide additional details. However, in an early-May interview, he disclosed that the local stock exchange was working with four SMEs from the construction and tech-related domains on listing requirements. “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 three other companies will require additional time to get ready.
Source : The Phnom Penh Post
25 July 2023
Germany to help Cambodia achieve green energy goals
Germany will continue to support the Kingdom to further develop its energy and mines sector apart from firmly backing Cambodia’s commitment to moving towards clean, green energy in the near future. This came as Dr Chistoph Hoffmann, Member of Parliament and Chairman of the Committee for Economic Cooperation and Development at the German Parliament, during a meeting with Sok Khavan, Secretary of State in the Ministry of Mines and Energy last week. The Secretary of State highlighted the Kingdom’s strides in the energy and mines sector while emphasising the fact that Cambodia requires more investments from Germany in the field. Dr Chistoph was also briefed on the detailed functioning of the Ministry of Mines and Energy. “Our ministry aims to cooperate with the German side, especially the Committee for Economic Cooperation and Development to further develop the ministry’s areas of functioning,” said Sok Khavan, in a statement issued.
Source : Khmer Time
25 July 2023
Investment products to grow in capital market, experts say
Rising number of foreign businesspeople are keen to invest in the financial sector, but mostly in the non-banking sector such as securities available at banks and financial institutions, especially investment products as Cambodia’s banking market seems to be saturated for them, said Phillip Bank CEO Chan Mach. He said, “I have met some businesspeople from other countries and discussed setting up firms [here] to raise funds to invest in local or overseas immovable properties or anything else. I believe this market will grow.” Sou Socheat, Director General of Securities and Exchanger Regulator of Cambodia (SERC), told Khmer Times on Thursday last week that a draft proclamation has been prepared to enable financial institutions in banking and non-banking sectors to register their new products that will be available for investors from Cambodia and the rest of the world.
Source : Khmer Time
26 July 2023
Cambodia’s energy supply increases nine-fold in 15 years
Cambodia’s energy supply has grown nine-fold in the past 15 years, from 490 MW in 2008 to 4,495 MW in 2022, thanks to the increasing investment in energy infrastructure development. Energy supply in 2022 increased by 12.6 percent from 3,990 megawatts a year earlier, according to a report from the Electricity Authority of Cambodia (EAC). “Investment in power and grid has been steadily increasing to strengthen stability, quality, efficiency and independence in the electricity sector in Cambodia,” the report said. Yem Piseth, Director-General of EAC, said that Cambodia produced nearly 80 percent of its electricity, while importing only 20 percent from Laos, Vietnam and Thailand.
Source : Khmer Time
26 July 2023
Cambodia-Australia bilateral trade volume nearly $260 million
The bilateral trade volume between Cambodia and Australia in the first half 2023, reached more than $258 million, which is a similar amount compared to 2022. This is according to the report of the General Department of Customs and Excise of Cambodia. In the first six months from January to June 2023, Cambodia’s export to Australia were worth more than $180 million and re-imports were worth more than $77 million, the report said. On the way to establishing a representative office of the Cambodian Chamber of Commerce in Australia, Vice President of the Cambodian Chamber of Commerce, Neak Okhna Lim Heng, said in May 2023 that Australia needed a wide range of products, including textiles, electrical appliances, and components, especially nine agricultural products, such as avocados, peppers, sesame seeds, sweet potatoes, mango, cashew, palm sugar, and dried banana slices studied by the Cambodia-Australia Agricultural Value Chain (CAVAC), which are opportunities for Cambodian traders to export to Australia, and Australia is also interested in exporting materials and food to Cambodia.
Source : Khmer Time
27 July 2023
Cambodia-Canada trade slips 24% in H1
The volume of merchandise traded between Cambodia and Canada stood at $444.608 million in the first half (H1) of 2023, down 23.74 per cent from $583.037 million in 2022H1 and down 22.19 per cent from $571.43 million in 2022H2, according to Customs (GDCE). Cambodia’s exports to the world’s ninth-largest economy accounted for 93.79 per cent of that, reaching $416.995 million, down 26.74 per cent year-on-year from $569.194 million and down 24.4 per cent half-on-half from $551.40 million, provisional GDCE data compiled in “International Merchandise Trade Statistics” bulletins indicate. Meanwhile, the Kingdom’s imports from the world’s second-largest country by total area came in at $27.613 million, up 99.5 per cent year-on-year from $13.843 million and up 37.8 per cent half-on-half from $20.03 million.
Source : The Phnom Penh Post
27 July 2023
Vietnam continues to be Cambodia’s largest trade partner within ASEAN
Vietnam remains Cambodia’s chief trading partner in ASEAN, accounting for nearly half of Cambodia’s goods trade with its fellow bloc members in the first six months of this year. The first half of 2023 marked the fourth consecutive six-month period Vietnam has held this position, trailing only China and the US in terms of global rankings. Data from the General Department of Customs and Excise of Cambodia (GDCE) published on July 10 provides some answers. According to GDCE, Cambodia exported goods worth $1.43 billion to Vietnam between January and June, an increase of 21.67 per cent from the same period a year ago. However, imports from Vietnam totaled $1.87 billion, marking a decrease of 10.25 per cent year on year. This translates to a combined trade volume of $3.3 billion, reflecting a slight annual increase of 1.25 per cent, compared to the significant growth of 22.33 per cent seen a year prior.
Source : The Phnom Penh Post
28 July 2023
NBFSA authorizes CIS issuances
Prospects are bright for a pickup in activity in the Cambodian securities market after the Non-Banking Financial Services Authority (NBFSA) issued a prakas that formally authorised the issuance of Collective Investment Scheme (CIS) fund units. The NBFSA’s Securities and Exchange Regulator of Cambodia (SERC) revealed this in a July 26 statement, noting that the prakas was signed by Minister of Economy and Finance Aun Pornmoniroth and dated July 20. A CIS is an arrangement that allows fund management companies to establish investment vehicles and raise money from investors to channel into specific projects, with profits or benefits distributed to the backers. SERC director-general Sou Socheat describes the formal CIS market as a long-awaited one, and reaffirmed that issuers must register projects with his agency. CIS categories include public and private equity funds along with real estate investment trusts (REIT), he said, indicating that at least some projects will be able to be listed on the Cambodia Securities Exchange (CSX) for trading. “This market is a resource that can supply money for any project that has the potential to be successful and rewarding for people who purchase these fund units,” he said.
Source : The Phnom Penh Post
28 July 2023
Cambodia needs to overcome constraints for inclusive growth
Cambodia, which aspires to become an upper middle-income country by 2030 and a high-income country by 2050, has to pursue inclusive growth that is also sustainable and resilient, according to the Cambodia Country Diagnostic Study by the ISEAS-Yusof Ishak Institute in Singapore. Presenting a report at the ADB headquarters on Tuesday, Jayant Menon, Senior Fellow with ISEAS-Yusof Ishak Institute in Singapore, said, “Cambodia has had above seven percent average growth since the turn of the century. The pandemic resulted in a sharp drop in growth. It is growing very rapidly, and now it is recovering quite strongly. However, the trend growth rate is much lower than 7.6 percent in the past. Cambodia has had very high growth because it had a strong export sector, driven mainly by trade preferences in garments essentially but also other textiles, footwear and travel goods, booming, tourism, large capital and aid influence.”
Source : Khmer Time
