Investment Hightlights
Cambodia Weekly Financial News
2023-12-09View Times｜ 1134
Cambodia Weekly Financial News
December 04~08, 2023
04 December 2023
CSX reports strong growth in listing and trading activity
The Cambodia Securities Exchange (CSX) is witnessing a surge in new companies listing both equity and bond securities, despite the tense global economic situation. Hong Sok Hour, CEO of the CSX, noted recently that there are 21 firms listed on the exchange, including 11 stocks and 10 corporate bonds, collectively raising $349 million. In October 2023, the average daily trading volume for shares reached approximately 130,000 per day, with an average daily trading value of about $210,000 and approximately 11,000 active investors participating. “We also anticipate a significant number of firms listing equity and corporate bonds, along with a series of sector-specific bonds [next year],” Sok Hour stated. Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC), noted that the stock market has been making progress, especially with the increasing number of securities listed by local firms.
Source : The Phnom Penh Post
04 December 2023
Cambodia, Vietnam launch cross-border QR code payment
The National Bank of Cambodia (NBC) and the State Bank of Vietnam yesterday launched the cross-border QR code payment linkage in a boost to business and tourism in both countries. The launching ceremony was held in Siem Reap in the presence of Chea Serey, Governor of NBC, Nguyen Thi Hong, Governor of the State Bank of Vietnam and representatives of various partner banks. The launch marked yet another milestone for NBC and the State Bank of Vietnam in the areas of financial innovations, payment systems and cross-border QR payment linkages, the NBC said. It enables people of both countries to make safe, secure, convenient and affordable cross-border payments using their local currencies. With this, NBC’s Bakong payment system is currently used for making cross-border transactions with Thailand, Laos, and Vietnam.
Source : Khmer Times
05 December 2023
Cambodia’s exports to Indonesia, India rise sharply
Cambodia’s exports to Indonesia rose by 65.5 percent and to India by 57.7 percent in the first 10 months of this year – the sharpest growth among the top 20 export destinations of the country, revealed the latest trade data of the General Department of Customs and Excise (GDCE). India accounted for 1.3 percent of Cambodia’s total exports in the first 10 months, the GDCE data showed. Indonesia has a share of 0.3 percent. Exports to India reached $233 million and to Indonesia $48.5 million during the period. Cambodia’s imports from India, however, declined by 20.2 percent and reached $167.52 million during the January to October period of 2023, compared to the same period last year, giving the Kingdom a surplus of $65.87 million in bilateral trade for the period. Cambodia’s imports from Indonesia, however, registered an increase of 9.6 percent, giving Indonesia a surplus of $765 million in the first 10 months, the data showed.
Source : Khmer Times
05 December 2023
Online registration soars; capital surpasses $9B
The number of companies that have successfully listed their ventures on the Online Business Registration System (OBRS) via IT Platform Phase I has risen to more than 317,000, with a total capital exceeding $9 billion. This marks a significant increase from nearly $6 billion at the beginning of 2023, as reported by OBRS. Phase III was introduced on June 22, 2023, including additional institutions. As of December 3, the number of companies successfully listed through the Single Portal platform stood at 31,703, with a total registered share capital of $9.36 billion. This includes 38% female-owned businesses. Chhin Ken, president of the Cambodia Digital Tech Association (CDTA) stated that “Law enforcement by the GDT and the ease of filing have motivated more business owners to register, while the use of technology in Cambodian society is also showing better progress,”. He believes accountable business practices can also attract more foreign investors to the Kingdom.
Source : The Phnom Penh Post
06 December 2023
Microfinance growth boosts financial stability
One of Cambodia's prominent microfinance institutions (MFIs) released its sustainability report, showing that 90% of respondents expressed satisfaction with its contribution to their enhanced well-being over the previous 12 months. Among 549 respondents who disclosed an increase in income during the period, 94% attributed the growth to the MFI's support and customized financial solutions. Of the 409 clients with savings, 80% saw an increase in their reserve portfolio over the past year. “This underscores LOLC’s ability to instill financial discipline and cultivate long-term financial stability among its clients,” said the report. According to the Cambodia Microfinance Association (CMA), at the end of Q3 2023, the sector had a total loan balance exceeding $5 billion and more than 1.5 million loan customers. Deposit-taking MFIs held over $2 billion in deposits with nearly 2 million depositors.
Source: The Phnom Penh Post
06 December 2023
Cambodia’s exports to RCEP countries up 26 percent
Cambodia exported $6.45 billion worth of goods to RCEP countries in the first ten months of this year, an increase of 26.4 percent compared to $5.1 billion in the same period last year, a report from the Ministry of Commerce showed yesterday. The two-way trade between Cambodia and RCEP countries, however, decreased by 7.6 percent to $24.12 billion, read the report. The country’s RCEP exports accounted for 33 percent of the Kingdom’s total trade of $19.33 billion during the January-October period, stated the report. “RCEP has given a big market access to Cambodia’s products and is the source of the country’s sustainable economic development in years to come,” said Sok Siphana, Senior Minister in Charge of International and Multilateral Trade and Economic Relations. The agreement has played an important role in promoting Cambodia-made products and contributed to attracting new foreign investment, said Penn Sovicheat, spokesman at the Ministry of Commerce.
Source: Khmer Times
06 December 2023
TAFTAC urges easier tax rules for garment sector
Tax issues in the garment sector persist as a complex challenge for investors, necessitating process simplification to preserve the industry’s appeal and boost exports, according to the Textile, Apparel, Footwear and Travel Goods Association (TAFTAC). TAFTAC president Kong Sang said during the 2023 Tax Forum stated that “In principle, the law is simple, but in practice, there are many factors contributing to the complexities of our compliance environment. According to a previous survey, some factory taxpayers and tax officers, both Cambodian and foreign, have limited knowledge and, in some instances, have not received comprehensive and timely law updates on relevant legal and tax issues. Sometimes, there is also negligence or lack of attention,”. “I recognize the challenges faced by taxpayers in the garment and textile sector in filing tax documents. Over the past decade, the GDT has been committed to organizing seminars, training and publications to enhance taxpayers’ understanding of their obligations,” he stated.
Source: The Phnom Penh Post
07 December 2023
SME Bank, Cambodia Cashew Federation sign MoU on affordable financial schemes
The SME Bank of Cambodia and the Cambodia Cashew Federation have signed a Memorandum of Understanding to promote the cashew processing sector and boost the export of Cambodian processed cashew nuts to international markets. Through this MoU, enterprises that are members of Cambodia Cashew Federation can apply for affordable financial schemes from SME Bank of Cambodia to expand their businesses. Dr. Aun stated that the bank’s collaboration is a strategic initiative to bolster the growth of Cambodia’s cashew sector. “SME Bank of Cambodia views this MoU as a significant step towards addressing the challenges faced by the cashew industry, including processors and exporters, and propelling the cashew processing industry in Cambodia to new heights,” he emphasized. Furthermore, it aims to increase the export of processed cashew nuts successfully and sustainably to global markets, he added.
Source: Khmer Times
07 December 2023
Cambodia, UAE chambers strengthen ties
The Cambodia Chamber of Commerce and Dubai Chambers of the United Arab Emirates (UAE) will step up cooperation in trade and investment and sign a memorandum of understanding (MoU). The meeting agreed to sign an MoU between the chambers of commerce of the two countries aiming to foster cooperation on investment and trade and to push for direct flights connecting the two countries, said Lim Heng, CCC Vice President. The discussions mainly focused on the potential for investment in the agricultural sector of Cambodia especially in rice production, tourism, and food safety as well. Bilateral trade between the UAE and Cambodia reached $407 million in 2022, according to a report by the Ministry of Commerce. Main traded items include clothes, footwear, bicycles, travel goods, tobacco, milled rice, electrical appliances, vehicle components, asphalt, tuber sugars, animal feed, plastics, vehicles and paper.
Source: Khmer Times
07 December 2023
Gov’t revenue $4.9B, spending $6.3B
The government’s national revenue collection in the first 10 months of 2023 reached nearly $4.9 billion, equating to almost 78% of the target set by the 2023 Law on Financial Management, while total expenditures stood at over $6.3 billion, as reported by the Ministry of Economy and Finance. The figure marks a 2.02% decrease compared to the same period in 2022. The report highlighted that, considering revenue performance trends over recent years and the recovery of the country’s socio-economic activities, the collection is on track to meet the objectives outlined in the budget law. The report indicated that total spending in the first 1- months of 2023 amounted to $6.33 billion, or 74.95% of the budget target, a 19.49% increase from the same period last year. Capital expenditure was $2.169 billion, rising by 12.32% and current expenditure reached $4.159 billion, up by 23.6%. The ministry emphasized the ongoing principle of restricting unnecessary spending and prioritizing essential sectors.
Source: The Phnom Penh Post
07 December 2023
Thailand’s PRIME to expand investment in renewable energy
Thailand-based Prime Road Power Public Co Ltd (PRIME), the parent company of Prime Road Alternative (Cambodia) Co Ltd (PRAC), plans to significantly expand their clean energy investments Cambodia. This aligns with the government’s strategy to attract more financing in the sector. PRIME chief financial officer Piroon Shinawatra sought further support from Cambodian ministries and institutions during a meeting with Sun Chanthol, deputy prime minister and first vice-president of the Council for the Development of Cambodia (CDC), in Phnom Penh on December 6. Chanthol endorsed the firm’s expansion plans, urging collaboration with relevant ministries and institutions to explore potential investment areas. He emphasized the government’s openness to investors in clean energy, in line with its vision to export energy regionally, particularly to promote clean energy. According to the chairman, the company’s total revenue for Q3 2023 reached 282.63 million Thai baht (about $7.997 million), a 54.48% increase compared to Q3 2022. From January to September, revenue climbed to 1.454 billion Thai baht ($41.14 million), up by 124.44% year-on-year, with solar power plant operations contributing 46.69% to the group’s total operating income.
Source: The Phnom Penh Post
07 December 2023
SERC invited the CEO of Aegies Fund Management Plc., to share insights about CIS
The Securities and Exchange Regulator of Cambodia (SERC) is pleased to share the 4th day of the 26th Training and Examination and Continuing Professional Education in Securities Sector for Group 1: Training for Securities Firms, Issuers and Firms Providing Services in Securities Sector, Group 2: Training for Firms Doing CIS Businesses and Group 5: Continuing Professional Education for Firms Doing CIS Business at Business Development Center Building, 15th Floor. H.E. Dr. Vin Pheakdey, Deputy Director General of SERC had fireside chat with Dr. Sarah, the CEO of Aegies Fund Management Plc., under the topic of opportunities, readiness, and potential of Collective Investment Scheme (CIS) in Cambodia. Dr. Sarah has shared her insightful knowledge and experience with the training participants.
Source: SERC Facebook Page
08 December 2023
H.E. Yim Leat, Deputy Governor of the National Bank of Cambodia presided over
Maybank Regional Financial Education Excellence Award 2023 of Maybank (Cambodia) Plc.
H.E. Yim Leat, Deputy Governor of the National Bank of Cambodia presided over Maybank Regional Financial Education Excellence Award 2023 of Maybank (Cambodia) Plc. on 7th December 2023 at Hyatt Regency Phnom Penh for nominees from Cambodia, Malaysia, Indonesia, Philippines and Vietnam. This event aims to: 1/-address the need for financial education for students aged 9 to 12 in schools across ASEAN via animated series 2/-recognize and celebrate individuals and related parties including, schools, educators, students and families who have displayed dedication and extraordinary effort in promoting or championing financial literacy and 3/-foster a deeper awareness of the importance of money management among students and their families.
Source: NBC Facebook Page
Lady Aegies Comment : To be continue...............
