Investment Hightlights
Cambodia Weekly Financial News August 28~ September 01, 2023
2023-09-02View Times｜ 1085
Cambodia Weekly Financial News
August 28~ September 01, 2023
28 August 2023
PPC Bank reports 43% growth in Q2 in net profit
According to the bank’s filing with Cambodia Securities Exchange (CSX) last week, PPCB’s total revenue for the quarter was more than 104 billion riels, rising 33.4 per cent year-on-year, while net profit grew 43.1 per cent to over 31 billion riels compared to the second quarter in 2022. PPCB chairman Yim Yong said Cambodian Economy is on the path of recovery and stated that “The revival is also boosted by easing domestic prices as global oil and food prices stabilized. With the agriculture sector expanding due to improved access to regional markets following newly ratified trade agreements, economic growth is forecast to accelerate to 5.5 per cent in 2023”. A latest report by Mekong Strategic Capital revealed that Cambodia’s finance sector presented a reasonable performance in 2022 with strong balance sheet growth, offset by higher expenses and credit costs. The banking industry has played an important role as a major source of funds to power economic activities, Yim Yong added.
Source : The Phnom Penh Post
28 August 2023
CDC approves investment projects worth $430 million
The Cambodian Investment Board (CIB) of the Council for the Development of Cambodia (CDC) has approved the issuance of the registration certificates for 13 investment projects worth nearly $430 million to build factories to produce different types of goods with a plan to recruit more than 18,300 employees, said a CDC statement on Friday. The CIB has sanctioned the issuance of the registration certificates for four investment projects in Kampong Speu province, three in Phnom Penh, three in Kandal province and each one in Kampong Cham, Pursat and Kampong Chhnang provinces. The statement further pointed out that the five-star hotel investment project will be located on the corner between Preah Monivong Blvd or Street 93 and Street 88, adding that the hotel developer Khou Tower also plans to recruit 855 workers to fulfill available positions to operate the hotel that will serve tourists and businesspeople.
Source : Khmer Times
28 August 2023
ASEAN finance leaders reaffirm commitment to continued fiscal stability
ASEAN finance ministers and central bank governors have reaffirmed their commitment to upholding the bloc’s financial stability and fostering greater financial integration. They issued a statement following the 10th joint meeting of ASEAN finance ministers and central bank governors, held in Indonesia on August 25. The statement commended Indonesia’s significant progress in its 2023 economic priorities, which focused on four themes: finance and health cooperation, food security, local currency transactions, and regional payment connectivity. The meeting further reiterated its commitment to maintaining financial stability and promoting deeper financial integration in ASEAN. They also examined a study on national and regional financial architecture for strengthening post-Covid-19 pandemic prevention, preparedness and response, while acknowledging that the financial sector’s support is crucial to guaranteeing food security.
Source : The Phnom Penh Post
29 August 2023
Standard contract for all loans takes effect November 1
The difference in financial institution loan agreement terms would be eliminated following the introduction of the Standard Loan Contract and Standard Text of Contractual Terms for Banking and Financial Institutions. The new standard loan agreement, which was launched by the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) at an event attended by National Bank of Cambodia (NBC) governor Chea Serey on August 29, would apply to new loans beginning November 1, 2023. Thus, existing loan agreements and conditions would remain unchanged, ABC vice president Rath Sophoan said, adding that the agreement was designed in accordance with the requirements of the Prakas on Unfair Contractual Clauses and the Law on Consumer Protection. The joint standard loan contract would also contribute to strengthening the mechanism for resolving customer complaints and the promotion of transparent competition, promote customer protection as well as the development of the banking and financial sector in Cambodia in a stable, sustainable and inclusive manner.
Source : The Phnom Penh Post
29 August 2023
Falling demand sees footwear exports fall 23% Jan-Jul
Exports of footwear, gaiters and related items in the first seven months of 2023 stood at $808.5 million, down 22.7 per cent from $1 billion in the same period last year, according to the General Department of Customs and Excise of Cambodia (GDCE). From January to July 2023, export goods (HS Code 64) accounted for six per cent of the total export value of $13.5 billion. In July 2023, these exports fell 45.7 per cent to $107.9 million from $198.6 million in July 2022, according to GDCE. Cambodia Footwear Association president Ly Kunthai told The Post that the decline in export revenue started more than a year ago due to lower international orders although Cambodia’s production capacity remained the same. The decline is a result of the Russia-Ukraine war crisis affecting global economic growth, which saw people in Western countries cut spending. Hong Vanak, an economics researcher at the Royal Academy of Cambodia, opined those declining earnings in this segment is linked to the international market where a series of crises has prolonged for over three years.
Source : The Phnom Penh Post
29 August 2023
CSX mulls overseas roadshows for listed firms
The Cambodia Securities Exchange (CSX) plans to organize events in other countries for locally listed firms to promote their stocks to potential investors in targeted destinations. According to a senior CSX official, the plan shall be executed from the fourth quarter of this year to increase both short- and long-term investments on the bourse. “Documentation for overseas investors would not be the challenge because the roadshows would focus on corporate investors rather than individuals as all these things like documents for registration as investors are simple or normal for investors who are enterprises. We also have a custodian to serve them and they normally invest in a big amount,” said Sophanita. Hong Sok Hour, CEO of Cambodia Securities Exchange (CSX), told Khmer Times that Acleda Bank as the custodian agent that has already been registered with Cambodia’s Trust Regulator in June last year, would be able to attract more investors into the securities market, especially large-scale investors in Asia.
Source : Khmer Times
30 August 2023
UK Exports decline 15% Jan-July as orders drop
Bilateral trade between Cambodia and the UK in the first seven months of 2023 fell 14.6 per cent year-on-year to $496.3 million from $581.4 million, with nearly 90 per cent of the value consisting of exports from Cambodia, according to the General Department of Customs and Excise (GDCE). “Declining orders from the UK were a result of the ongoing global economic crisis, which forced individuals to tighten spending. Cambodia’s exports would be able to recover once the global economy grows, as people would spend and travel more,” he told The Post on Aug 30. However, the production chain in Cambodia remains strong, if international orders increase, Cambodia’s international trade volume would meet all targets. Hong Vanak, an economics researcher at the Royal Academy of Cambodia, opined that slow economic growth mainly pulled down the bilateral trade volume in the last seven months.
Source : The Phnom Penh Post
31 August 2023
Cambodia’s rubber exports up 3 pct in first 7 months to earn $228.5 million
Cambodia exported 170,968 tons of dry rubber in the first seven months of 2023, up 3 percent from the same period last year, said a General Directorate of Rubber report on Wednesday. The country earned $228.5 million in revenue from exports of the commodity during the January-July period this year, down 12.8 percent from $262.2 million over the same period last year, the report said. “A ton of dry rubber averagely cost 1,337 U.S. dollars in the first seven months of 2023, about 244 dollars lower than that of the same period last year,” Him Oun, director general of the General Directorate of Rubber, said in the report. According to the report, Cambodia has planted rubber trees in a total area of 404,578 hectares, in which the trees on 315,332 hectares, or 78 percent, are old enough to be tapped.
Source : Khmer Times
31 August 2023
Imports from China, Vietnam, Thailand up for beginning of year
China, Vietnam and Thailand are Cambodia’s largest suppliers of goods, with imports of $10 billion in the first seven months of 2023, according to the General Department of Customs and Excise of Cambodia (GDCE). According to GDCE, imports from China amounted to over $6 billion, or 44.3 per cent of total imports, Vietnam $2 billion or 15 per cent, and while Thailand was $1.7 billion (11.9 per cent). “Given the cooperation between our government and the private sector, plus our geographical location, I believe that Cambodia’s trade with the three countries would continue to show positive signs. “This is further expected, thanks to the bilateral and multilateral free trade agreements with China, and the Regional Comprehensive Economic Partnership Agreement (RCEP),” he said. Senior economist Ky Sereyvath, director-general of the Institute of China Studies at the Royal Academy of Cambodia, said trade between Cambodia, China, Vietnam and Thailand has been good, especially with the four countries being members of the RCEP.
Source : The Phnom Penh Post
31 September 2023
Chamber discusses food export procedures to US
The Cambodia Chamber of Commerce in collaboration with Cambodia’s general consul in Long Beach of the US held a workshop on the procedures for exporting food products and goods to the US market. “The purpose of this workshop is to strengthen and expand the businesses of the two countries’ businesses and to disseminate the procedures and requirements for export food products to the United States,” the CCC statement said. The workshop featured presentations from the officials in charge of the international trade service of the Ministry of Commerce and officials in charge of sanitary and phytosanitary of the Ministry of Agriculture, Forestry, and Fisheries. The two parties agreed to jointly hold a trade fair in November this year in Long Beach, US. The US continued to be the biggest export destination for Cambodian products. Cambodia’s exports to the US reached $4.24 billion in the first half of this year, a drop of 8.9 percent from $4.65 billion for the same period in 2022, a report from the Ministry of Commerce showed.
Source : Khmer Times
01 September 2023
Cambodia-China trade likely to touch $15 billion by 2025
The bilateral trade between Cambodia and China is expected to reach $15 billion by 2025, a top official said. The trade figure between both nations touched $11 billion in 2022. Vongsey Vissoth, Deputy Prime Minister and Minister in Charge of the Office of the Council of Ministers, talked about the expectations from trade between Cambodia and China during a cultural show in Phnom Penh on Monday. “The Cambodia-China Free Trade Agreement is expected to boost Cambodia’s exports, especially its agricultural products to Beijing,” Vissoth said at the event to celebrate the 65th anniversary of the Cambodia-China diplomatic relations. The projection was based on trade trends between both nations. China, which invested around $20 billion in the Kingdom last year, is the largest trading partner of Cambodia, followed by the US, Vietnam, Thailand and Japan in the January to July 2023 period.
Source : Khmer Times
01 September 2023
PM pushes industrial sector development for economic growth
Prime Minister Hun Manet has prioritized industrial sector development for further economic growth and workers’ benefits. The Prime Minister made these remarks during a get-together with factory workers and employees in Prey Speu area in Phnom Penh. The government has attracted investments not only in the garment sector, but also non-garment manufacturing sectors, including vehicle assembly and electronic components, he said. “The government will place reforms and policies to attract investment which will create jobs, enhance people’s living and contribute to economic growth,” the Prime Minister said. Last year, the industry sector shared the largest composition of the country’s GDP with 38 percent, followed by the service and agricultural sectors with 35 percent and 21 percent, respectively.
Source : Khmer Times
