Cambodia's Financial Environment
Cambodia Weekly Financial News
2024-02-03View Times｜ 1086
Cambodia Weekly Financial News
January 29~ February 02, 202
29 January 2024
PPSEZ hits record exports, attracts investors
The Royal Group Phnom Penh Special Economic Zone (PPSEZ), listed on the Cambodia Securities Exchange (CSX), achieved a record export value of $1.621 billion in 2023, marking an important milestone for the zone’s growth, it said in a recent filing. According to the zone’s data, export value from the electrical and electronics sector rose by 71% from $234 million in 2019 to $399 million in 2023. The automobile parts industry saw an even more significant increase of 156%, from $113 million in 2019 to $289 million in 2023. “This significant development and growth are also evidenced in the export value of the zone. We are more than proud to contribute about 7% to the total export value of the country,” stated PPSEZ CEO Hiroshi Uematsu. “The dramatic increase occurred despite the horrific Covid-19 situation, thanks to the expansion and steady growth of productions of all investors, especially in the electrical and electronics sector and automobile parts sector,” he added.
Source : The Phnom Penh Post
29 January 2024
Cambodia shines in ASEAN braving global challenges
Braving global headwinds, Cambodia’s economy grew by 5.5 percent in 2023 as against 5.2 percent in 2022 and inflation declined to 2.1 percent compared to 5.4 percent over the same period. The economy is also predicted to grow by 6.4 percent in 2024. The Kingdom’s economy achieved this remarkable feat last year even as the ASEAN economic growth went down to 4.4 percent and the global economic growth to three percent, according to the Annual Report 2023 and Action Plan 2024 of the National Bank of Cambodia (NBC), released recently. The country attracted investment worth $6 billion in 2023 from $3 billion in 2022. International reserves increased to $20 billion by the end of 2023, rising from $17.8 billion in 2022. According to the NBC report, the banking system continued to grow in Cambodia in 2023 with assets of financial institutions increasing by 8.6 percent to $84.3 billion from $77.5 billion (to KHR 346.7 trillion from KHR 319.2 trillion in 2022.)
Source : Khmer Times
29 January 2024
PPAP net profit down 36% to $9 million
State-owned Phnom Penh Autonomous Port (PPAP) reported a 36-year-over-year decline in net profit for 2023 of $9.13 million as Cambodia’s second largest port saw a decline in revenue. The previous year, PPAP had reported a profit of $14.3 million, as per filings with the Cambodia Securities Exchange (CSX). The port authority and port operator, PPAP saw its revenue fall 9 percent to $38 million due to lower income from port operations. Revenue from port operations, which contributes a lion’s share (84 percent) to total revenue fell by as much as 8 percent to $29.2 million. However, PPAP – which is the only river port in Cambodia handling large vessels between 3,000 tons and 5,000 tons – saw its revenue from the port authority division go up 11 percent to $4.8 million. And revenue from other services provided nearly doubled to $569,785 from the previous year.
Source : Khmer Times
30 January 2024
NBC injected $139 million to stabilize riel in 2023
The National Bank of Cambodia (NBC) sold $139.1 million through auction last year to stabilize the riel exchange rate and to rebound the economy, according to the central bank’s report released on Monday. The NBC has held several US dollar auctions for banks, microfinance institutions and money changers to curb the rising exchange rate of Khmer Riel against US dollar. The average exchange rate of riel for dollar was 4,110 last year and in December alone, the rate dropped to 4,081, reflecting that the price of riel rose by 0.87 percent compared to 2022. “Stabilization of riel has contributed vitally in stabilizing the buying power of riel as well as protecting the users’ income,” read the report. These disbursements are one of NBC’s measures to implement its monetary policy effectively by absorbing riel from the market to balance the exchange rate. The NBC decided to implement this rule because the riel has depreciated steadily due to seasonal factors and the pressure of the US dollar in international markets.
Source : Khmer Times
30 January 2024
"Electronic" payments in Cambodia increase by almost 80%
The amount of electronic payments increased by 78%, equivalent to more than 7 times of GDP, of which payments in the Bakong system in riel increased 3.4 times and in US dollars increased by 2, According to a report by the National Bank of Cambodia, the payment is widely linked to countries such as Thailand, Laos, Malaysia and Vietnam. According to the National Bank of Cambodia, the advancement of financial technology contributes to the digitalization of Cambodia's socio-economic development, payment system has been modernized and through the enhancement of efficiency, security and integration into the region and the world. Important in promoting trade, investment and tourism activities.
Source: The Cambodia China Times
30 January 2024
Steel imports exceed $372 million in 2023, modest 3% increase
Cambodia imported iron and steel worth over $372 million in 2023, marking a more than 3% increase compared to the previous year, despite a slowdown in the construction sector, as reported by the General Department of Customs and Excise (GDCE). The import value of iron and steel, categorized under tariff classification Harmonized System (HS) Code 72, reached $372.47 million, a 3.5% increase from $359.82 million year-on-year. The figure represents 1.5% of the country’s total imports, which amounted to $24.18 billion in 2023. Chiv Sivpheng, general manager of the Cambodia Constructors Association (CCA), told The Post about the recent recovery of the country’s construction sector following a period of stagnation amid the Covid-19 epidemic. He noted that as construction activities increased, so did the demand for steel and other building materials. However, Sivpheng also pointed out that the sector’s recovery is inherently slower due to its extensive capital investment requirements and longer timelines, emphasizing that it would need more time to fully rebound.
Source: The Phnom Penh Post
31 January 2024
Cambodians saved 13% more in 2023
Cambodians increased their savings in banks with deposits growing 13.1 percent in 2023, as per data with the National Bank of Cambodia (NBC). Outstanding loans also grew by 4.8 percent year-on-year to 237.2 trillion riels ($57.6 billion) last year. Along with the economic recovery, the banking system continued to dominate the financial sector. Banking supported activity in key economic sectors despite sluggish credit growth, said the report. Non-performing loans (NPL) at the banking sector and the microfinance sector increased by 5.4 percent and 6.7 percent, respectively, read the report, citing that the NPL rates were still at a controllable level. Banking and financial institutions have continued to improve the financial inclusion, which is reflected through the increase in the number of customer deposit accounts to 18.9 million and consumer credit accounts to 3.9 million as of last year. The current assets in the banking system rose to $84.3 billion in 2023, an increase of 8.6%, read the report, adding the country has 58 commercial banks, nine specialized banks and 87 microfinance institutions.
Source: Khmer Times
31 January 2024
SSEZ sees 35 percent trade growth last year
The Sihanoukville Special Economic Zone (SSEZ) has announced strong turnover in 2023, according to recent financial reports released by the firm. The combined export-import value of all factories and enterprises in the SSEZ totaled $3.362 billion in 2023, which represents a 34.86 percent year-on-year increase from 2022 earnings. Trade value of the special economic zone contributed to around 7.18 percent of Cambodia’s total trade in 2023, encompassing both imports and exports, which recorded a sum total of $46.83 billion for the year. According to Ministry of Commerce spokesperson Penn Sovicheat, 231 companies from 10 countries are operating in the SSEZ to date, with a capital investment exceeding $1.2 billion. The zone is responsible for more than 25,000 jobs.
Source: Khmer Times
31 January 2024
Construction investment soars Jan-Nov ‘23
Cambodia approved more than 3,000 construction projects with a total capital investment of over $5.2 billion in the first 11 months of 2023, representing an almost 100% increase in financing year-on-year, as reported by the Ministry of Economy and Finance. From January to November 2023, the government, through the Ministry of Land Management, Urban Planning and Construction, approved 3,142 projects covering an area of 12.69 million square meters with an investment of $5.255 billion, according to the finance ministry’s 2023 Socio-Economic Trends Report. Although the number of ventures decreased by 684 over the same period of 2022, the total development area and capital investment saw increases of 92.8% and 99.7%, respectively. In November alone, 218 projects were approved, encompassing an area of 362,517sqm and an investment of $145.7 million.
Source: The Phnom Penh Post
01 February 2024
Cambodia to strengthen economic cooperation with EU, ASEAN
The Royal Government of Cambodia (RGC) is invigorating cooperation and partnership between ASEAN and European Union (EU) member states through shared prosperity, economic resilience and investment connectivity. Cambodia is taking part on the invitation from Josep Borrrell Fontelles, High Representative of the European Union for Foreign Affairs and Security Policy and also Vice-President of the European Commission. Based on the Department of Information of MFAIC, Sok Chenda Sophea, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation (MFAIC) will speak about shared prosperity, economic resilience and investment with the aim of invigorating cooperation and partnerships between the regions as well as capitalizing on strengths to inject new impetus into inclusive growth and sustainable development. The ministers will also review progress in implementing the ASEAN-EU Plan of Action 2023-2027 and exchange views on future directions as well as regional and international issues of common concern and interest to advance the ASEAN-EU Strategic Partnership, a press release said. The leaders emphasized the importance of reinforcing cooperation within the framework of EU-Cambodia and EU-ASEAN relations as well as bringing mutual support on the international stage.
Source: Khmer Times
01 February 2024
32 investment projects worth nearly $190 million approved by the CDC
The Council for the Development of Cambodia (CDC) on February 1, 2024 issued a press release stating that in January 2024, the CDC approved 32 new projects and production expansion projects with a total investment of over $187 million, which can create nearly 29,000 jobs. According to the Council for the Development of Cambodia in January 2024, more than 78% of investment came from China, 9.65% from Singapore, 5.34% from the United States, 3.55% from the Republic of Korea, and 2.73% from local sources.
Source: Khmer Times
02 February 2024
73 percent of CSX trade in 2023 Q4 brokered by ACLEDA Securities Plc
ACLEDA Securities Plc carried out 73.82 percent of the trading brokerage at the Cambodian Securities Exchange (CSX) during the last quarter of 2023, making it the winner of the CSX Best Security Broker Award. The exchange said that investors from the part of ACLEDA Securities Plc carried out securities trade valued at nearly KHR 57 billion, which is approximately 73.82 percent of the total securities trading volume. “There were nearly 1,600 new trading accounts that have been created by the company. While the number of trading accounts created by the company shot up from 1,200 to 1,600 during the last quarter of 2023, the volume of trade brokered came down from KHR 94 billion to KHR 57 billion. “ACLEDA Securities Plc along with its partners organized public events with the presence of many participants and also offered special programs to new customers; all of which is to educate, promote and enhance the securities trading activities,” CSX said in a statement issued.
Source: Khmer Times
02 February 2024
CGCC guarantees loans worth $164 million to MSMEs
The Credit Guarantee Corporation of Cambodia (CGCC) on Wednesday said it has guaranteed loans amounting to $164 million to 1,928 micros, small and medium enterprises (MSMEs) as it marked three years of operation. “SMEs represent 70 percent of employment opportunities in the country and contribute 58 percent to our country’s GDP; SMEs from diverse fields like agriculture, industry and services. But still many are unable to get bank loans, so the government to address this problem created CGCC,” said NBC Deputy Director Bombakara. For SMEs, there are many hurdles to accessing credit. “One is the lack of credible financial records like credit scores and collateral. They’re also impeded by a lack of financial literacy; and good corporate governance models. But with CGCC, deserving SMEs are now able to access much-needed credit to expand their business or get fresh capital for new ventures,” said Bombakara. “We saw the highest loan guarantee activity in March 2022 – when we guaranteed as much as 91 businesses for $8.3 million in loans. We were proactive in 2022 – we guaranteed loans amounting to $71.4 million to 791 businesses, compared to guaranteeing loans amounting to $21.3 million for 194 accounts. We kept up this pace in 2023 and guaranteed $72 million in loan amount for 943 accounts,” said Ros Seilava, Secretary of State of the Ministry of Economy and Finance.
Source: Khmer Times
Lady Aegies Comment : To be continue...............
