Investment Hightlights

Cambodia Weekly Financial News
August 14~18, 2023

14 August 2023

Revenue up for PWSA, MJQE in second quarter of 2023

Two listed firms reported sound business performance in the second quarter of the year ended June 30, thanks to business growth despite the regional and global economic slowdown. State-owned Phnom Penh Water Supply Authority (PWSA), in its filing with the Cambodia Securities Exchange (CSX) on August 11, showed an increase of 24 per cent in revenue at 99.6 billion riel (around $24 million) while operating profit rose 51.8 per cent to 38.7 billion riels. “The decrease in net profit in the second quarter of 2023 is mainly due to the finance costs-net increased by 20.7 billion riels, or 394.7 per cent, and income tax by 7.1 billion riels, or 242.03 per cent,” the firm said. Meanwhile, Mengly J Quach Education Plc (MJQE) reported that operating profit has risen by 17.9 per cent, from 8.3 billion riels to more than 9.8 billion riels with net profit climbing 6.9 per cent from more than 5.2 billion riel to over 5.5 billion riels in the quarter ended June 30.

Source : The Phnom Penh Post 

14 August 2023

Investment opportunities in Cambodia unveiled

Top officials of Cambodia’s highest decision-making body for private and public investments on Friday presented key potential opportunities and challenges for investment in the country to Cambodian tycoons and foreign businesspeople. The guidance was made at a forum co-organized by the Council for the Development of Cambodia (CDC) and the Cambodian Oknha Association (COA). The event at Garden City Hotel in Phnom Penh was attended by approximately 300 participants who are mostly local tycoons and members of COA, foreign businesspeople, ambassadors and government officials. Chea Vuthy, CDC Deputy Secretary General, said during the event’s opening session that Cambodian businesspeople have stood first in the list of investors’ nationalities in the Kingdom, followed by the Chinese this year. The number of investment projects rose by 17 to 128 in the first six months of 2023 when compared with the same period in the previous year.

Source : Khmer Time  

15 August 2023 

Cambodia GFT exports at $6.27 billion in 7 months

Cambodia’s biggest export-earning segment of garments, footwear and travel (GFT) goods extended its lean patch into the seventh month of the year, as the exports recorded a decline of 20.44 percent in the January to July period of 2023. According to the latest trade data of the General Department of Customs and Excise (GDCE), Cambodia exported $6.27 billion worth of GFT goods during the first seven months of the year, a sharp decline from the $7.89 billion exported during the same period last year. The GFT goods exports for July 2023 alone showed a decline of 28.15 percent compared to the same period last year after a brief comeback in June when these exports gained one percent growth relative to June 2022. The July setback of GFT also caused the country’s overall exports to fall by 1.8 percent in the January to July period of the year.

Source : Khmer Time   

15 August 2023

China firm plans ‘$12B’ smart-agri investment

A Chinese agricultural company has announced plans to invest “$12.7 billion” in the agriculture sector on 750,000ha of land in four provinces along the Tonle Sap Lake: Battambang, Pursat, Siem Reap and Kampong Thom. During an August 14 joint press conference with senior government officials, Danong Development Group chairman Zhao Shujie described the provinces as having strong potential for both the growth and transportation of agricultural products. He said the agricultural investment project would be one of the most modern in Cambodia. “The company plans to invest around $12.7 billion, in a project that will focus on the construction and management of agricultural infrastructure, the operation of agro-industries and the establishment of agricultural banks. “This ‘smart’ agriculture project, which will be implemented soon, is expected to benefit the people and government of Cambodia,” he said.

Source : The Phnom Penh Post 

16 August 202

Exports to Vietnam grow to $1.6B in first 7 months

Exports from Cambodia to Vietnam have recorded steady growth, rising 20.6 per cent year-on-year to $1.6 billion in the first seven months of 2023 from $1.3 billion, although trade balance dipped one per cent to $3.8 billion from the year prior. Vietnam is Cambodia’s third largest trading partner after China and the US, according to the General Department of Customs and Excise of Cambodia (GDCE). Between January to July 2023, the Kingdom imported $2.1 billion worth of goods from Vietnam. However, the trade deficit for Cambodia reduced to $528.08 million compared to $1.1 billion in the corresponding period last year. For the month of July, bilateral trade volume amounted to $424.91 million, falling 15.8 per cent from $504.45 million in July 2022. Cambodia exported $170 million worth of goods to Vietnam, up 12.1 per cent, while imports from Vietnam fell 27.8 per cent to $255 million.

Source : The Phnom Penh Post    

16 August 2023

Thai Chamber of Commerce delegation explores Cambodian investment opportunities

A group of Thai Chamber of Commerce delegates has been visiting Cambodia to seek investment opportunities. During the important visit, the delegation also paid a courtesy call and received information from Pan Sorasak, Minister of Commerce. In a meeting at the Ministry of Commerce on August 15, Sorasak extended a warm welcome to the Thai Chamber of Commerce who came to Cambodia and especially to the Ministry of Commerce. Sorasak welcomed the Thai Chamber of Commerce delegation to explore business opportunities in Cambodia. He said the meeting would provide a good opportunity to exchange views on mutually beneficial business and investment opportunities to promote trade and investment between the two countries.

Source : Khmer Time   

17 August 2023

Cambodia asks IMF to review public debt mechanisms

The Minister of Economy and Finance (MEF) has requested the International Monetary Fund (IMF) to review the frameworks and mechanisms of sustainable public debt management in Cambodia, said an MEF official. The request was made during a meeting between MEF Minister Aun Pornmoniroth and IMF’s Resident Representative for Cambodia Yasuhisa Ojima at the ministry’s headquarters in Phnom Penh before the latter’s departure from the Kingdom after he completed his four-year tenure. “The IMF reviews would help improve all those mentioned tasks, especially keep the Cambodian financial sector healthy,” said Soksesan, when asked why Pornmoniroth requested the review of Cambodia’s frameworks and mechanisms of sustainable public debt management, adding that IMF also helps the government enhance the economic growth forecast modelling.

Source : Khmer Time   

17 August 2023 

ACLEDA expands cross-border QR payment to Laos

Locally-owned ACLEDA Bank launched the first phase of its cross-border payment via QR (Quick Response) code in Laos on August 18 to encourage the use of Khmer riel for payment settlement in ASEAN, support economic integration and contribute to financial inclusion in line with National Bank of Cambodia’s (NBC) vision. In Channy, president and group managing director of the public-listed bank, said the expansion of its cross-border QR payment to Laos comes after successfully launching a cross-border QR payment service in Thailand and Vietnam. The bank is a member of NBC’s Bakong blockchain payment system and has been assigned as a sponsoring bank by the central bank. In the first phase, ACLEDA customers would be able to scan the QR code and pay in Laos. Following that, customers of Bakong members would be able to pay in Khmer riel from their mobile app in Laos and vice versa. Lao people would be able to scan the KHQR in Cambodia in the near future.

Source : The Phnom Penh Post 

18 August 2023 

Acleda Bank to borrow $80M from Taiwanese bank

The stock exchange-listed commercial bank Acleda Bank Plc on Monday signed a loan agreement to borrow $80 million from the Taiwan-based Bank SinoPac Co Ltd to increase new loans to recovered micro, small and medium enterprises in Cambodia after the pandemic, said a statement released on the Cambodia Securities Exchange (CSX). The statement pointed out that Acleda Bank would borrow the amount of money from Bank SinoPac for four years from August 14, 2023, to August 13, 2027, at an interest rate ranging from 8.42 percent to 12.71 percent that includes interest and fees, which would be charged by based on the actual interest rates that may fluctuate in the international banking market.

Source : Khmer Time