Investment Hightlights
Cambodia Weekly Financial News August 21~25, 2023
2023-08-26View Times｜ 1078
Cambodia Weekly Financial News
August 21~25, 2023
21 August 2023
Cambodia-HK expo tipped to increase trade
Bilateral trade between Cambodia and China is expected to grow with the interest shown by traders and investors during the Cambodia-Hong Kong exhibition in Phnom Penh, which featured over 40 companies. At the opening of the exhibition on August 19, Reach Ra, secretary of state for the Ministry of Commerce, said the cooperation between both governments has evolved from “steel to diamond-level cooperation”. He was pleased with the ministry’s collaboration and facilitation of diverse proposals for trade exhibitions in Cambodia which would enhance bilateral trade and elevate it to new heights. The vision shared by both governments within the Silk Road Economic Belt framework and the 21st Century Maritime Silk Road is to collaborate closely in order to foster the development of a thriving Cambodian-Chinese community of common destiny. Both parties are also committed to strengthen bilateral trade and push up the value beyond $12 billion by the end of 2023, he said.
Source : The Phnom Penh Post
21 August 2023
Credit guarantees to SMEs reach nearly $140 million
The Credit Guarantee Corporation of Cambodia (CGCC) provided credit guarantees of $139.5 million to businesses for their working capital expansion as of July 2023. The credit guarantee has been provided to 1,648 businesses, according to a report on Friday. CGCC said in a statement that the total amount of outstanding guaranteed loans was $107.51 million, while the total amount of outstanding guaranteed amount was $77.48 million. There are 1,510 micro, small and medium-sized businesses (MSME) and 138 large businesses get their loan guaranteed, the report said, adding that about 677 were women-owned. The report stated that a significant portion of the loan guarantees were used for working capital, investment, business expansion, and capital expenditures.
Source : Khmer Time
22 August 2023
Cambodia’s exports $4.6B to RCEP markets in first 7 months
Cambodia has exported goods worth $4.59 billion to member countries of the Regional Comprehensive Economic Partnership (RCEP) in the first seven months of 2023, a 21 percent increase compared to the same period of the previous year, said a statement by the Ministry of Commerce (MoC). The trade figures were shown yesterday at the launch of RCEP Book Part 1 on geo-political, geo-economic and legal analysis held at the Cambodia University of Technology and Science, presided over by Pan Sorasak, Minister of MoC, and attended by some top government officials including Dith Tina, Minister of Agriculture, Forestry and Fisheries. Sorasak pointed out that RCEP has represented 30 percent of the global Gross Domestic Product (GDP), 28 percent in world trade and 32.5 percent in global investment, while the 15 country members have collectively GDP of $26.2 trillion since its initiative during the 21st of the Association of Southeast Asian Nations (ASEAN) summit.
Source : Khmer Time
22 August 2023
TR, ACLEDA join hands to boost human resources
The Trust Regulator (TR) and ACLEDA Institute of Business (AIB) on Friday signed the Memorandum of Understanding (MoU) to improve and develop human resources in the field of the trust sector across all learning institutions in Cambodia. The MoU signing ceremony was presided over by Sok Dara, Director General of the Trust Regulator, in the presence of Phon Narin, Managing Director of ACLEDA Institute of Business, along with professors and representatives from finance and relevant institutions. Addressing the opening ceremony, Dara said, “The government of Cambodia aimed to improve knowledge of non-banking finance management to all the students who are interested in the field. As such, the purpose of this MoU is to promote the understanding and dissemination information of about the trust sector as well as contribute to human resource development to reach out to all students across the Kingdom.”
Source : Khmer Time
23 August 2023
More investment anticipated following Fujian investors’ visit
Cambodia is optimistic of an increase in direct investment or joint ventures with Chinese investors following a successful visit by a delegation of entrepreneurs from Fujian province who specialise in sectors such as mining, energy, manufacturing, tourism, accommodation, and heating and air conditioning. Chea Vuthy, deputy secretary-general of the Council for the Development of Cambodia (CDC), met with Xu Shiwen, president of the Federation of Enterprises in Fuzhou who led the delegation on August 22. The investors were in Cambodia to study and understand the laws and regulations related to investment, as well as investment opportunities and environment. Vuthy said Cambodia has a lot of investment potential and that investors should take advantage of the incentives provided by the government.
Source : The Phnom Penh Post
23 August 2023
Cambodia, China target $12B trade this year
Trade between Cambodia and mainland China will reach over $12 billion by the end of this year and both sides are working hard to achieve this annual target, said Reach Ra, Secretary of State at the Ministry of Commerce, recently. Addressing the opening ceremony of the Cambodia-Hong Kong Expo at Factory Phnom Penh, Ra said that in the past seven months, trade between Cambodia and China reached over $7 billion, up 1.8 percent from the same period in 2022. China is the largest trading partner of Cambodia, followed by the US, Vietnam, Thailand and Japan in the January to July 2023 period. Currently, both countries are also implementing the Cambodia-China Free Trade Agreement, which entered into force in January 2022, and the ASEAN-Hong Kong Free Trade Agreement, which entered into force in 2019. In addition to this, the Regional Comprehensive Economic Partnership (RCEP) agreement has also played a key role in boosting the trade between the two countries.
Source : Khmer Time
24 August 2023
Private sector expects new gov’t to focus on economic growth
The new Royal Government of Cambodia in the Seventh Legislature of the National Assembly (NA) will officially assume office today evening under the leadership of Mr. Hun Manet who will succeed as the new Prime Minister. Lim Heng, Vice President of Cambodia Chamber of Commerce (CCC) which is the largest private institution to represent Cambodia’s private sector, yesterday told that CCC expects the new government to maintain the high growth of the Gross Domestic Product (GDP). Heng pointed out that the new government should keep implementing both bilateral and multilateral free trade agreements including Cambodia-China Free Trade Agreement, Cambodia-Korea Free Trade Agreement, Cambodia-United Arab Emirates Comprehensive Economic Partnership Agreement and the Regional Comprehensive Economic Partnership (RCEP).
Source : Khmer Time
24 August 2023
Wing Bank, CGCC, and FASMEC to Offer Guaranteed Loans and Market Accessibility to SMEs
Wing Bank (Cambodia) Plc, Credit Guarantee Corporation of Cambodia (CGCC), and Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC) have forged an impactful strategic partnership a visionary move aimed at boosting the growth of Small and Medium Enterprises (SMEs) in Cambodia. The collaboration is a strategic effort to address collateral challenges faced by SMEs when applying for bank loans and enhance financial literacy among the SMEs, exclusively for FASMEC members across the Kingdom. This will be achieved by providing financial solutions by Wing Bank on a collateral-free basis and secured with credit guarantees from the state-owned CGCC.
Source : The Phnom Penh Post
25 August 2023
CMA to boost MSME loans under new government
The Cambodia Microfinance Association (CMA) will extend the fullest cooperation to the Royal Government of Cambodia (RGC) of the 7th Legislature of the National Assembly (NA) in boosting the Micro, Small and Medium Enterprises (MSMEs) in achieving higher economic growth, said a top CMA official. The CMA represents more than 100 institutions in the microfinance industry across the country. “Under the new leadership, we expect to have resilience in microfinance, banking and financial sectors to achieve social and economic development. We are confident in the new young and energetic leadership who are highly educated. We believe the new government will continue to lead the country in peace, stability, democracy and development,” said Voeun.
Source : Khmer Time
25 August 2023
Cambodian, Indian ICT companies hold B2B meeting
A visiting delegation of Electronics and Computer Software Export Promotion Council (ESC) composed of 15 Indian ICT industry players had here on Aug. 24 an exclusive Business Alliance Meet with Cambodian counterparts to foster the cooperation in ICT between the two countries. According to a news release from the Embassy of India in Phnom Penh, the event provided the participating companies with opportunities to forge business and strategic alliances, strike market tie-ups, and create win-win propositions to take their businesses on a growth trajectory. To further strengthen the IT relations between India and Cambodia, a large Cambodian delegation was invited to visit India for INDIASOFT 2024, the largest IT global networking event in India, to be held in New Delhi, India from Jan. 17 to 19, 2024. INDIASOFT 2024, comprising of International Exhibition and Conference, is aimed to facilitate joint ventures, collaboration and strategic alliances for outsourcing with overseas buyers. The event will provide participants an opportunity to broaden their vision and forge business partnerships.
Source : Khmer Time
25 August 2023
US Department of Commerce issues final determination on Circumvention of
Solar Cells and Modules from Cambodia
On August 18, 2023, the Department of Commerce (“Commerce”) announced its final determination that certain solar cells and modules exported from Cambodia, Malaysia, Thailand, and Vietnam are circumventing the antidumping (“AD”) and countervailing (“CVD”) orders on imports from China after conducting its investigation for over 18 months. Any duties will only go into effect in June 2024, subject to available certifications and exemptions. Commerce’s final determination can be found here. The Presidential Proclamation issued on June 6, 2022, states that Customs and Border Protection (CBP) will not collect duties on any solar module and cell imports from these four countries until June 2024 provided that parties can certify that the imports will be “utilized” within six months of the termination of proclamation, which is currently December 3, 2024. Commerce specified that “utilized” means “used or installed” by the termination date. Simply selling solar modules, incorporating solar cells into a solar module in the U.S., dedicating these imports to a particular project, or delivering them to a project site do not constitute being “used” or “installed”.
Source : Khmer Time
