Investment Hightlights
Cambodia Weekly Financial News July 31~ August 04, 2023
2023-08-05View Times｜ 1072
Cambodia Weekly Financial News
July 31~ August 04, 2023
31 July 2023
Avoid unlicensed tax agents, says GDT
The General Department of Taxation (GDT) under the Ministry of Economy and Finance has updated a list of licensed tax agents and urged taxpayers to avoid the services from unlicensed tax agents. In a statement issued last week, GDT said there are 387 tax agents that are licensed to serve tax-related services in Cambodia including completing tax forms, filing tax returns, tax payment monthly and annually. The establishment of this agency is to avoid the use of tax-related services by unlicensed individuals, it said. “The licensed companies or enterprises that are tax agents are contributing to facilitate the use of tax-related services to improve the efficiency of tax collection,” GDT said.
Source : Khmer Time
31 July 2023
Cambodia’s tech skills to improve through ADB’s $100M package
Cambodia has received a $100 million loan from Asian Development Bank (ADB) to boost productivity by bridging the skills gap via reforms and investments in technical and vocational education and training (TVET) as well as private sector participation. The new loan was approved by ADB on August 1, 2023 for the first subprogram of the Skills for Future Economy Sector Development Program, ADB said in its latest statement. Accordingly, this would strengthen human capital resources, thereby transforming the country into a technology-driven, knowledge-based industrial economy. The skills development environment would be further enhanced through industry-led inclusive training along with the use of additional funds to mobilize demand-driven skills development. The large young population make-up presents a unique opportunity to raise investment in human capital development and enhance the skills of new entrants to the labor market, while also upgrading the skills of existing workers to match industry demand.
Source : The Phnom Penh Post
01 August 2023
Investment law, FTAs help attract more FDIs to Cambodia
The new investment law and investment, free trade pacts with China, South Korea and the Regional Comprehensive Economic Partnership (RCEP) are playing important roles in attracting more foreign direct investment (FDI) to Cambodia, said a senior official. The inflow of new FDIs will boost the industry sector and economy, said Heng Sokkung, Secretary of State and spokesman at the Ministry of Industry, Science, Technology, and Innovation. Cambodia promulgated the Law on Investment on 15 October 2021 to establish an open, transparent, and predictable legal framework to attract and promote quality, effective and efficient investments in the Kingdom.
Source : Khmer Time
01 August 2023
Cambodia’s banking, financial industry stays healthy in H1, with outstanding loans rising to $58.6 billion
Cambodia’s banking and financial industry continued to enjoy healthy growth in both loans and deposits in the first half of 2023, said the biannual report of the National Bank of Cambodia (NBC) released on Monday. Outstanding loans rose by 13.8 percent year on year to $58.6 billion by June this year, while customers’ deposits increased by 6.4 percent to $44.4 billion, the report said. The loans had been given to main sectors such as trade, housing, construction and real estate, agriculture, hotels and restaurants, and manufacturing, among others, it said. Non-Performing Loans at the banks and the microfinance institutions were at controllable rates of 4 percent and 3.3 percent, respectively, it added. The report said the current assets in the country’s banking and financial system rose to $82.2 billion by June 2023, up 9.9 percent from June 2022.
Source : Khmer Time
01 August 2023
Cambodia’s central bank says foreign reserves increased to $18.4 billion as of June
Cambodia’s international reserves had risen to $18.4 billion as of June 2023, up 3.2 percent from $17.82 billion at the end of 2022, said a report of the National Bank of Cambodia (NBC) on Monday. International reserves under the NBC’s control include foreign currencies, gold and SDR (Special Drawing Right). “The international reserves can secure the imports of goods and services for the next seven months,” said the NBC’s report released at the end of the bank’s biannual meeting. Speaking at the meeting, NBC’s director general Kimty Kormoly said the country’s economy is predicted to grow by 5.6 percent in 2023, up from 5.2 percent in 2022, driven by exports of garment and non-garment manufacturing products, fast recovery in tourism, agriculture, and recovery in construction and real estate.
Source : Khmer Time
02 August 2023
Singaporean business delegation eye market potential in Cambodia
Minister of Economy and Finance Aun Pornmoniroth recently welcomed delegates from the Singapore Business Federation (SBF) for talks aiming to explore the market potential and investment opportunities in Cambodia. Pornmoniroth, who is also a deputy prime minister, was upbeat, confident that the Cambodian economy would continue to grow. The delegation, led by SBF country director Gary Lim, comprised 23 members representing various companies. The goal of their meeting with Pornmoniroth was to deepen their understanding of the market potential and investment landscape in Cambodia. They were especially interested in business cooperation and opportunities within the Kingdom. On August 2 ministry press release said the delegates’ visit following Cambodia’s July 23 general election symbolized their trust in the country’s political maturity. This trust, it said, extended to the Cambodian people, who are committed to safeguarding the Kingdom’s hard-won peace, development and sovereignty.
Source : The Phnom Pehn Post
02 August 2023
Cambodia issues Government Bond of $27 million in H1
The government has raised funds through government bond issuance with a total of $27 million in the first six months of this year, accounting for 13.5 percent of the $200 million target. The government issues its bonds in the first primary market through the National Bank of Cambodia Auction Platform (NBCP). “In the first semester of 2023, the bidding for government bonds on the NBCP was made six times with a total capital of 112 billion Riel (approximately $27 million),” the central bank report showed. In 2023, the government plans to raise $200 million from bonds, which can bring it direct revenues, and ensure investment efficiency and sustainability of debt management and the national budget, according to the Ministry of Economy and Finance.
Source : Khmer Time
02 August 2023
MoUs signed to boost investment in agri-businesses
The Innovation and Development Investors Association (IDI) and ID Capital Plc. (IDC) will connect more local and international investors with agri-business operators in Cambodia and Memorandums of Understanding (MoUs) were signed yesterday for the purpose with the Royal Group Securities (RGS), the Cashew Nut Association of Cambodia (CAC), and the Khmer Swiftlet Association (KSA). The signing ceremony was presided over by Hor Sereyvath, Chairman of IDI and IDC. Sok Vatanak, Chief Investment and Business Officer of IDC, Uon Silot, President of CAC, and Suy Kokthean, President of KSA and Vice-President of CAC, along with the representatives of Kith Meng, CEO of the Royal Group, and members of Wing Bank were present at Flatiron by Meridian, in Phnom Penh on the occasion. “The purpose is to connect the investors with the business operators in agriculture, real estate, and other services in the Kingdom,” Sereyvath said.
Source : Khmer Time
03 August 2023
NBC raises Cambodia’s 2023 growth forecast to 5.5%
The National Bank of Cambodia has raised its growth forecast of Cambodia to 5.5 percent in 2023, driven by a return of foreign tourists, agriculture, construction and garment sector. Tourism sector is expected to grow at 19.9 percent due to better tourism in the region and better control over the Covid-19 pandemic, NBC said in a report. The agriculture sector is expected to grow at a slower rate of 1.1 percent. The favorable factors include climate, the Regional Comprehensive Economic Partnership and free trade agreements, the report said. The garment sector is forecast to grow at a slower pace of 5.6 percent due to a slowdown in external demand from the US, EU, and Britain, it said, adding that the non-garment manufacturing sector is projected to grow by 10.1 percent. The country’s economy mainly relies on garment export, tourism, agriculture and real estate and construction.
Source : Khmer Time
03 August 2023
China’s Ningbo investors seek opportunities in Cambodia
Around 40 companies are expected to explore investment opportunities in Cambodia this month, thanks to the optimism felt by a delegation of Chinese investors who met with the Council for the Development of Cambodia (CDC) yesterday. This could be through direct investment or by joint ventures with local enterprises or public-private partnerships to capture the dynamic market. In turn, it would strengthen the Cambodia-China relationship, where leaders of both countries have agreed to engage in a diamond cooperation framework, added Vuthy, who discussed this with Boris Xue, president of the Ningbo Chamber of Commerce on August 2. Xue, who led a team of 15 Chinese companies, congratulated Cambodia on its seventh National Assembly election in July, noting that he would encourage Chinese investors from Ningbo, an eastern Chinese port city, to consider investing here. It is understood that Xue would ask investors to visit Cambodia to learn more about the investment laws and incentives, and opportunities, particularly in fabric and yarn manufacturing, technology, commerce and real estate.
Source : The Phnom Penh Post
03 August 2023
NBC to increase reserve requirements in foreign currency to 12.5%
The National Bank of Cambodia (NBC) will increase the reserve requirements in foreign currency, especially US dollars of banks and financial institutions in the country to 12.5 percent in 2024 after this monetary policy instrument has been raised to nine percent since January 1, 2023 from seven percent during the pre-pandemic period, said an NBC report. However, the Semi-Annual Report 2023 released on Monday by NBC Cambodia’s central bank and monetary authority pointed out that the reserve requirements in riel would be kept unchanged at seven percent to encourage consumers to use the national currency more in the economy through higher possibility in releasing loans in riel to businesses and individuals. Chea Chanto, former Governor of NBC, said in the report that NBC has increased the reserve requirements a part of deposits that all banks and financial institutions are required to keep to be ready in response to any case that a number of depositors withdraw cash from the bank in a remarkable speed and/or at the same thanks to improved economic activities in the country.
Source : Khmer Time
04 August 2023
Exploring Cambodia’s energy market, challenges and opportunities
Cambodia’s energy market, like many emerging economies, is a fascinating blend of challenges and opportunities. The country’s rapid economic growth over the past decade has significantly increased its energy demand, necessitating a comprehensive analysis of its energy market dynamics. One of the primary challenges in Cambodia’s energy market is the lack of a robust and reliable energy infrastructure. The national grid does not cover the entire country, leaving many rural areas without access to electricity. This is a significant hurdle for Cambodia’s economic development, as it hampers the growth of industries and businesses in these areas. Moreover, the existing energy infrastructure is heavily reliant on imported fossil fuels and hydropower, making the country vulnerable to fluctuations in global energy prices and seasonal variations in water levels.
Source : Khmer Time
