Cambodia's Financial Environment
Cambodia Weekly Financial News
2024-01-20View Times｜ 1060
Cambodia Weekly Financial News
January 15~19, 2024
15 January 2024
MFI outstanding loans stood at $5.13 billion in 2023 Q3
Total outstanding loans in the microfinance sector stood at $5.13 billion during the end of the third quarter of the last year, according to the latest data published by the Cambodia Microfinance Association (CMA). The number of borrowers reached 1.60 million with 55 percent of them being female and the number of depositors stood at 1.92 million. The deposit balance across all microfinance institutions in the country was estimated to be $2.24 billion. Cambodia’s microfinance sector recorded over 20 percent growth both in terms of loans and deposits by the end of 2022. The loan portfolio grew to $9.135 billion (a 23.8 percent increase) with a little over two million client accounts. Deposit at the five Microfinance Deposit-taking Institutions (MDIs) also increased to $4.686 billion (a 20.1 percent rise) with 2.66 million depositors.
Source : Khmer Times
15 January 2024
Cambodia’s exports to RCEP nations up 28 percent in 2023
Cambodia’s exports to the Regional Comprehensive Economic Partnership (RCEP) countries continued to increase last year, indicating the emergence of a growing market for the Kingdom’s products. Cambodia exported $8.17 billion worth of goods to RCEP countries in 2023, an increase of 28.8 percent compared to $6.34 billion in 2022, a report from the General Department of Customs and Excise showed. The country’s RCEP exports accounted for 34.62 percent of the Kingdom’s total trade of $23.6 billion in 2023, the report said. The two-way trade between Cambodia and RCEP countries, however, decreased by 5.07 percent to $29.45 billion, the report pointed out, adding that the trade figures accounted for 61.3 percent of Cambodia’s total trade of $48.01 billion. “The RCEP agreement has boosted Cambodia’s exports. The exports are expected to grow further as local exporters and firms are gradually getting to know the potential export product patterns based on demand from a specific country,” Penn Sovicheat, Spokesman at the Ministry of Commerce told Khmer Times.
Source : Khmer Times
15 January 2024
Oil imports dip amidst economical green shift
Cambodia spent over $2.17 billion on diesel and petroleum imports in 2023, marking a 7.6% decrease from the previous year. According to the General Department of Customs and Excise (GDCE), diesel imports accounted for $1.32 billion, a 12.2% increase, while petroleum imports dropped slightly by 0.26% to $850 million. On the other hand, Ky Sereyvath, an economic researcher at the Royal Academy of Cambodia, linked the decrease in fuel imports in 2023 to the rise in oil prices following the armed conflict between Russia and Ukraine, leading to reduced domestic demand from the production sector, including factories and enterprises using generators. He noted the growing trend towards electric vehicles and an increase in renewable energy. "The decline in fuel imports last year does not imply a drop in our production capacity. Some factories and enterprises have shifted to alternative energy sources, like clean energy or solar power, to support their production and reduce costs," he explained.
Source : The Phnom Penh Post
15 January 2024
SME Bank expands support with $100M for local enterprise growth
The state-owned Small and Medium Enterprise Bank of Cambodia (SME Bank) has allocated an additional budget of approximately $100 million to provide financing for small and medium-sized enterprises (SMEs) in a move aimed at stimulating growth and augmenting local economic activity. Lim Aun, CEO of SME Bank, said that by the end of 2023, the bank had disbursed around $490 million in loans to over 3,200 enterprises. He said the financing was facilitated through two key mechanisms: direct financing and co-financing schemes, the latter in partnership with participating financial institutions. “The SME sector is significantly contributing to the socio-economic development of Cambodia. The policy and support programs of the government, channeled through SME Bank, are designed to enhance the Cambodian SME sector. The initiative aims at bolstering economic resilience and promoting sustainable and inclusive development, in alignment with the vision of the government,” he explained. He said SMEs represent about 98% of all business enterprises in the country, contribute around 58% to the gross domestic product (GDP).
Source : The Phnom Penh Post
16 January 2024
Total Energies plans to invest in "renewable energy" in Cambodia
The Chairman of TotalEnergies has expressed his desire to seek investment opportunities in the renewable energy sector. TotalEnergies currently seeking investment opportunities in the renewable energy sector in Singapore, and the success of this project will boost to invest in renewable energy in Cambodia, which will make Cambodia more alternative energy sources. Samdech Hun Manet welcomed Mr. Patrick POUYANNÉ and his colleagues and expressed his pleasure and support for the company's plan to invest in Cambodia in the renewable energy sector, as Cambodia has a clear policy to promote the development of renewable energy sources. The Prime Minister of Cambodia expressed his support and cooperation on investment in the connection of the submarine power grid from Cambodia to Singapore and urged the company to continue cooperation with relevant ministries and institutions, especially the Ministry of Mines and Energy.
Source: The Cambodia China Times
16 January 2024
CSX introduces dollar settlement mechanism
In one of its latest offerings, Cambodia Stock Exchange (CSX) has introduced a new trading mechanism, that will allow stock market investors and traders to trade in Khmer riel and settle in US dollars based on the pre-disclosed exchange rate fixed by the stock exchange. As per the new system, all investors who are buyers shall have cash balance in US dollars in their respective trading accounts. The general trading rules, price limit, tick size and other norms would remain the same as trading with Khmer riel settlement option. The introduction of the new initiative aims to attract more investors into the CSX amid the Kingdom’s stock market and investment climate entering a transformational phase.
Source: Khmer Times
17 January 2024
Cementing trade ties: Cambodian and
French firms ink six MoUs to give fillip to the economic ties
Promoting economic development between the Kingdom and French-speaking countries took center stage on Monday as six memoranda of understanding (MoUs) were signed between Cambodia business organizations and French international firms. The MoUs were signed in the presence of Prime Minister Hun Manet at the ‘French-Cambodian Business Forum’ in Paris coordinated and organized by Kith Meng, President of the Cambodian Chamber of Commerce (CCC) and Chairman of the ASEAN Business Advisory Council for Cambodia. The MoUs were inked between the CCC and the Alliance des Patronats Francophones (APF), the Royal Group and Blue Circle, the L.Y.P. Group and SEMMARIS while Techo International Airport run by Overseas Cambodian Investment Corporation (OCIC) signed three MoUs with Lagardére Travel Retail, Aloest Productions and Platform Import which was represented by Ecole 42. These MoUs are aimed at promoting economic development between Cambodia and French-speaking countries and help facilitate their investment in the Kingdom through the arrangement of business meetings, conferences, seminars, and other trades.
Source: Khmer Times
17 January 2024
EU plans to provide 86 million in grant funding to Cambodia
The EU plans to provide a total of 86 million in grant funding to Cambodia for four new programs aimed at further strengthening and deepening Cambodia-EU cooperation and growth in all areas. The funding is part of the Global Gateway Framework, a new EU strategy aimed at mobilizing additional investment for partner countries to increase the scope, efficiency and effectiveness of their interventions. Under the Global Gateway, the EU plans to provide a total of 86 million in grant funding to Cambodia for four new programs, including: (1) the Cambodia Partnership Program for Agriculture; And Sustainable Food, (2) EU Partnership Program for Sustainable Energy Practices in the Garment, Footwear and Travel Products Industry (3) EU-Cambodia Partnership Program for Technical Education Training - 2024-2027 and (4) trade and private sector programs.
Source: The Cambodia China Times
17 January 2024
CSX targets growth amid challenges
The Cambodia Securities Exchange (CSX) expects the number of trading accounts to reach 100,000 this year and anticipates an increase in daily trading value, aiming to reach $100 million by 2030. As of November 2023, the average daily trading volume was around 130,000 shares, with a daily trading value of about $210,000. “The number of trading accounts has also shown substantial growth, increasing from approximately 35,000 to 47,000 accounts. CSX’s ambition is to increase the number of trading accounts to 100,000 by 2024, with an average daily trading value of $100 million by 2030. We urge participation and support from all stakeholders to elevate the market,” Hong Sok Hour, CEO of CSX said. “The market continuously welcomes new local firm listings. This underscores the companies’ recognition of the potential benefits of listing, enabling them to raise more funds for their business expansion,” Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC) explained.
Source: The Phnom Penh Post
18 January 2024
PwC to prepare key economy document for Cambodia
PricewaterhouseCoopers (PwC), one of the world’s leading accounting firms, is on track to draft the Financial Development Strategy Document (FDSD), which will encompass in-depth details on different economic sectors in the Kingdom and the strategies to be devised for further economic development and growth. Appreciating the PwC expert team, the NBC Deputy Governor, highlighted the importance of the FDSD in implementing successful economic policies. Sum Sannisith also emphasized the need to have a sectoral analysis within the economic document that would offer policymakers input while drafting and implementing future policy decisions. The document should reflect on the realities within each sector of the economy and it should also make recommendations and suggest action plans towards formulating policies and initiatives for the nation’s further development as well as economic growth.
Source: Khmer Times
18 January 2024
Cambodia exports rubber worth $490.6 million in 2023
Cambodia exported 368,048 tons of dry rubber in 2023, a slight decrease of 1.3 percent from 372,903 tons in a year earlier, said a report from the General Directorate of Rubber on Wednesday. The country made $490.6 million in revenue from exports of the commodity last year, down 7 percent from $527.6 million in the year before, the report said. The report attributed the plunge in rubber exports to a rise in domestic demand from car tire factories. “A ton of dry rubber averagely costs $1,333 in 2023, about $82 lower than that of 2022,” Him Oun, the head of the General Directorate of Rubber, said in the report.
Source: Khmer Times
18 January 2024
Cambodia’s exports to EU down 9.3% in 2023
Cambodia’s exports to the European Union (EU) last year were worth $3.66 billion – a more than nine percent decrease from the $4.04 billion registered in 2022, according to the Ministry of Commerce. The Cambodia-EU total trade was worth $4.61 billion, a drop by nearly five percent from $4.85 billion in 2022, read the report. The Kingdom’s imports from the EU bloc were worth $949 million, rising by 16.9 percent year-on-year from $811 million in 2022. The country’s trade surplus with the EU shrunk to $2.71 billion from $3.23 billion in 2023. Lim Heng, Vice President of the Cambodia Chamber of Commerce said the decrease in exports was largely due to the economic slowdown in the European Union and US, which are the two biggest markets for Cambodia-made products. “The slowdown in economic growth in the EU and the US caused by the war in Ukraine has affected the purchase orders from Cambodia,” Heng said.
Source: Khmer Times
19 January 2024
The first 15 days of 2024, 10 companies registered to invest in
Cambodia with a total capital of more than 60 million dollars
According to the investment request of the company, the Council for the Development of Cambodia (CDC) has decided to issue 10 investment project registration certificates with a total investment capital of more than 60 million US dollars and can create 12,695 jobs. It should also be noted that the investment projects approved as of January 15, 2024 include: Investment projects to establish many factories such as a garment and sewing factory, bag, and footwear factory, electronics factory, a factory to produce plastic products (ice buckets, containers and heat storage boxes, and kayaks), and a shoe and shoe accessories factory.
Source: The Cambodia China Times
19 January 2024
AMRO maintains 6.2 percent GDP growth for Cambodia
The ASEAN+3 Macroeconomic Research Office (AMRO) has maintained a 6.2 percent growth for Cambodia in the current year in its January 2024 Quarterly Update. The Kingdom’s projected growth rate is the second highest in the region, trailing by a very low margin behind the Philippines, which is expected to clock 6.3 percent growth in the current year. At 3.1 percent, Cambodia’s inflation is also set to remain within stable limits in 2024, according to the leading economic research and analysis organization. “To sustain economic growth, Cambodia needs to support the private sector as the engine of growth, and this can be achieved by prompt actions to improve public sector performance,” World Bank country manager for Cambodia Maryam Salim said at the launch of the report in Phnom Penh. “Maintaining financial stability is also a priority and more efforts are needed to restore fiscal space,” she added.
Source: Khmer Times
Lady Aegies Comment : To be continue...............
