Cambodia's Financial Environment
Cambodia Weekly Financial News
2024-03-16View Times｜ 1060
Cambodia Weekly Financial News
March 08 ~ 15, 2024
08 March 2024
DPM highlights Cambodia’s investment potential
Cambodia provides tremendous investment opportunities, especially in key sectors such as infrastructure and energy and its open Investment Law is an added attraction, said Sun Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC), to a delegation of the Vietnam Cambodia Business Association (VCBA), recently. The Deputy Prime Minister also highlighted the peace, stability and economic growth of Cambodia, besides the progress the country made in infrastructure development that supports and facilitates transportation, including expressways and ports, according to a release. The VCBA delegation was led by Leng Rithy, its President and comprised representatives from 16 companies, most of them investors in Cambodia as well. Chanthol said Cambodia is also going ahead with a plan to increase the share of renewable energy in the total energy mix to 70 percent by 2030. The energy sector thus requires a boost through investments and this poses a golden opportunity for foreign investors as well. It may be noted that Cambodia’s ‘Power Development Plan (PDP) 2022-2040’ proposed to substantially raise the share of renewable energy in the total power mix. The policy was formulated in tune with Cambodia’s commitment to be carbon neutral by 2050.
Source : Khmer Times
08 March 2024
Cambodia exported 90,153 tons of milled rice worth $65.48 million
in the first two months of this year
In the first two months of 2024, Cambodia exported 90,153 tons of milled rice through 40 rice exporters to 50 destinations, this is according to the press release of the Cambodian Rice Federation. The 50 destinations include 22 EU countries, 51,333 metric tons of milled rice worth $38.37 million; 5 ASEAN countries, including East Timor, 18,753 metric tons of milled rice worth $13.36 million; China, including Hong Kong and Macau, 11,083 metric tons worth $6.81 million; and 13 other destinations in Africa, the Middle East, the United States, Canada, Australia, New Zealand, and so on, 8,984 metric tons worth $6.90 million. The types of milled rice exported included 84.72% fragrant rice, 11.53% white rice, 2.17% steamed rice, and 1.70% organic rice. Cambodia also exported 1,368,322 tons of paddy rice.
Source : Khmer Times
11 March 2024
Banks to renew focus on bancassurance
As high as 42 percent of insurance sales in Cambodia is via banks, as per data with the Insurance Regulator of Cambodia (IRC). This is followed by 24 percent direct sales by the insurer; and then sales by insurance agents, corporate brokers and other entities. In 2023, when ACLEDA and Prudential marked 10 years of their partnership, the bancassurance channel had more than 200,000 customers and approved over $14 million in claims. ABA Bank said, it has partnered with Manulife for giving its customers convenient access to life insurance products. “ABA customers can pay premiums for Manulife from their app, or consult with staff at ABA Bank branches for police renewal or new policies,” said the bank; which has insurance specialists of Manulife Cambodia at 85 branches of ABA Bank. Banks say that generating new business for an insurer is fairly easy, since the bank already has a captive customer base. “Majority of bancassurance products are bundled with the bank’s loan offerings. Since we have already performed a full KYC for loan applications or when opening a CASA account, no further e-KYC is required,” Chan Mach, CEO, Philip Bank, told Khmer Times.
Source : Khmer Times
11 March 2024
Cambodia attracts $1.3 billion in FDI inflows
Cambodia attracted investment of $1.3 billion in the first two-month period of this year, according to the Council for the Development of Cambodia (CDC). China was the leader in foreign direct investment (FDI) to the Kingdom, accounting for about 39 percent of total investment capital, said Chea Vuhty, Secretary-General of CDC’s Cambodia Investment Board (CIB). Lim Heng, Vice President of Cambodia Chamber of Commerce, attributed higher FDI inflow to strong investor confidence. He said investors view Cambodia favourably for its stability, peace and free trade agreements. Investors are also aware of the potential for growth in made-in-Cambodia products. Cambodia attracted fixed-asset investment of $4.92 billion in 2023, up 22 percent from $4.03 billion a year earlier, CDC’s report showed in January. Investment from China accounts for about two-thirds of total investment capital. Followed by investors from Singapore, Malaysia and other countries.
Source : Khmer Times
11 March 2024
International trade grows nearly 20% in Jan-Feb ‘24
The gradual recovery of global economic growth has bolstered the value of Cambodia's international trade in the first two months of 2024, surpassing $8 billion, as reported by the General Department of Customs and Excise (GDCE). Between January and February, the Kingdom's import-export activity with international trading partners totaled $8.12 billion, marking a 19.2% increase from $6.81 billion during the same period of 2023. Cambodia exported goods worth $3.98 billion, up by 22.7%, while imports reached $4.13 billion, a 16.1% increase. The country’s trade deficit stood at approximately $149.64 million for the period, considerably lower than the $313.33 million recorded during the corresponding period of 2023. Ky Sereyvath, an economics researcher at the Royal Academy of Cambodia said the rise in the value of both imports and exports is positive, as it suggests an increase in both domestic goods demand and exports. He cautioned that if only exports were to rise, it could indicate stagnation or a decline in domestic demand.
Source: The Phnom Penh Post
12 March 2024
Cambodia-EU investment is currently around $ 540m
Experts observe that the state of investment cooperation between Cambodia - EU seems to be still small, in the amount of about 540 million dollars from 62 qualified investment projects from 1994 to the present. At the same time, Cambodia will continue to attract investors from Europe to invest in Cambodia more. This figure was presented during a working meeting between Mr. Sun Chanthol, First Vice President of the Council for the Development of Cambodia, and Mr. Peteris Ustubs, Director for Middle East Asia and the Pacific of the General Department of International Partnership (DG INTPA), EU on the 11th. March 2024. Mr. Peteris Ustubs also mentioned that the visit to attract investors that Cambodia can organize in the 27-nation European Union, in which he encouraged Cambodia to select key priority areas to present to investors. Peteris Ustubs also stressed the EU's current focus on green and technology development projects.
Source: The Cambodia China Times
12 March 2024
Two private firms aim to launch IPO, bonds: CSX
Two private companies have applied to list shares on the Cambodia Securities Exchange (CSX) through initial public offerings (IPOs) and bonds in the forthcoming months to maintain and broaden their businesses. “We are reviewing two companies that are applying for an IPO, encompassing both securities and bonds. We expect the review to be completed by April, enabling them to proceed with their plans,” CSX CEO Hong Sok Hour stated. Sok Hour observed a growing interest in issuing securities among companies in recent years. Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC), remarked at a recent event that over the past decade, the bourse has listed 23 firms. He said these enterprises have collectively raised nearly $400 million from the market, adding that 11 are stock-listed and 12 are corporate bond-listed, which includes green and sustainable debt securities.
Source: The Phnom Penh Post
12 March 2024
Bakong payments differ in riel vs dollar usage
Bankers say that it is interesting to see how people spend in riels versus dollars on the Bakong platform. Going by data, Cambodians seem to prefer using riel for lower-value transactions like paying for food, petrol, tuktuk fares, etc. And using dollars for higher-value transactions like home rent, loan EMI payments, flight tickets and hotel room stays. As per data with the National Bank of Cambodia, the average Bakong transaction in KHR is 11,78,223.57 ($290). Whereas the average Bakong transaction in dollars is $406. For 2023, total transactions on Bakong was 200 million; of which 66 percent or 132 million was in dollars and the rest (69 million) was in riels. In terms of value, Bakong saw KHR 81.05 trillion ($20 billion) in riels and transactions worth $53.76 billion in US dollars.
Source: Khmer Times
13 March 2024
EU funds initiatives for green evolution
The EU has provided £89 million ($97 million) in grant funding to Cambodia to support development across four sectors: agriculture and food, energy, technical training and trade. The four new programs focus on promoting sustainable value chains, energy efficiency and renewable power, aiming to reduce dependence on fossil fuels, strengthen energy security and integrate Cambodian products into regional and international markets. Minister of Economy and Finance Aun Pornmoniroth and European Commissioner for International Partnerships Jutta Urpilainen signed the grant agreement on March 12 at the finance ministry in Phnom Penh. The EU Global Access, Trade Expertise (EU GATE) initiative aims to streamline customs procedures and cross-border trade facilitation, enhancing the country’s connectivity in the ASEAN region and access to global markets, particularly the EU. During the signing ceremony, Pornmoniroth stated that the four new programs were organized under the framework of a new EU strategy called Global Gateway through the Team Europe approach.
Source: The Phnom Penh Post
13 March 2024
ASEAN digital economy set to double to $2 trillion by 2030
Prime Minister Hun Manet said that the ASEAN digital economy is capable of doubling its current value of around $1 trillion to reach a market cap of $2 trillion by 2030. Addressing the ‘Digital Government Forum and Digital Technology Expo’ in Phnom Penh on Monday, Mr. Hun Manet said the rapid growth in the regional digital sector’s value will be supported by Cambodia’s participation with other ASEAN member countries in promoting the ‘ASEAN Digital Economy Framework Agreement’. Along with regional growth in the digital and technology sectors, the Prime Minister underlined the government’s commitment to implementing and improving the national digital policy agenda with a “proactive and open spirit” to achieve the national digital development goals. Mr. Hun Manet said that the ongoing digital revolution in Cambodia and the greater ASEAN region will achieve benefits for the advancement of information and communication technology. Meanwhile, digital technologies have the ability to significantly increase productivity and economic efficiency for businesses throughout the Kingdom, boosting national economic growth cumulatively and building a more civilized society, he said.
Source: Khmer Times
14 March 2024
Forum held to increase public confidence in capital markets
In an attempt to increase awareness among the public, the Cambodia Securities Exchange and listed companies held a seminar. In the meeting, the listed firms and CSX talked about the financial performance of companies and tried to increase public confidence in the capital market. Titled ‘Earnings Forum 2024’, the seminar was organized on Tuesday at the CSX. Guest speakers at the seminar were from six listed companies, Phnom Penh Water Supply Authority, Phnom Penh Autonomous Port, Acleda Bank Plc, CAMGSM Plc, MENGLY J QUACH EDUCATION Plc and DBD Engineering Plc. The seminar walked investors and potential investors through the business performance of companies, including their fourth-quarter and annual reports from 2023. CEO of CSX Hong Sok Hour talked about how CSX has been working with securities firms to produce an “Equity Report.” This equity report will have an analysis of the business and financial performance of listed companies. Such a report would help in guiding investors on what stocks to invest in.
Source: Khmer Times
14 March 2024
Japan to sign $ 150 million concessional loan for regional hospital development project
Japan will sign an exchange of letters and related documents on the provision of concessional loans worth about $ 150 million for a regional hospital development project and attend the ICC-Angkor / Sambo Prei Kuk meeting. He said that this cooperation is a model international cooperation in the field of conservation and protection of cultural heritage. This was confirmed by Mr. Komura Masahiro, Deputy Minister of Foreign Affairs of Japan during a working meeting with Samdech Hun Manet, Prime Minister of Cambodia on March 13. Samdech Hun Manet also highlighted that in the past six months, Cambodia and Japan have achieved many joint achievements, such as: the inauguration of National Road No. 5, the inauguration of a wastewater treatment plant, the expansion of the Sihanoukville Autonomous Port and the promotion Invest from Japan to Cambodia.
Source: The Cambodia China Times
14 March 2024
ACLEDA, KB Prasac, Sathapana Bank lead in deposits
ACLEDA Bank, KB Prasac Bank Plc and Sathapana Bank lead in deposits as of the third quarter 2023, as per data with the Cambodia Microfinance Association. When it comes to deposits, ACLEDA Bank has a clear lead above every other bank in the country with $6.71 billion in deposits. This was followed by KB Prasac Bank at $2.88 billion and Sathapana Bank having $1.94 billion in deposits as of third quarter of 2023. When it came to the number of depositors. ACLEDA Bank had 4 million depositors. This was followed by KB Prasac and Sathapana Bank having 808,537 and 889,018 depositors in the third quarter of 2023. For the banking industry as a whole, the National Bank of Cambodia (NBC) in its 2023 report said that deposits had grown 13 percent. NBC said that deposits had grown 13 percent to 197.2 trillion riels or $47.9 billion; compared to 2022 where the banking industry saw 174.4 trillion riels in deposits or $42.2 billion.
Source: Khmer Times
15 March 2024
More banks accept payment for trade licenses, certificates
Focusing on trade facilitation and promoting convenience in obtaining licences and certificates, the Ministry of Commerce (MoC) is connecting the payment platform with the Cambodian Public Bank and Prince Bank and further negotiating with ACLEDA, the Foreign Trade Bank of Cambodia (FTB Bank) and Phillip Bank, said MoC Secretary. Penn Sovicheat, Spokesperson and Secretary of State of MoC said, “The Department of Import and Export of MoC participated in the implementation of the Cambodia National Single Window (CNSW) system. He said that to facilitate electronic payment for the CNSW project, the import and export department has signed several memoranda of understanding (MoUs) with partner banks and officially accepted the payment through Wing Bank, Canadian Bank and Vattanac Bank. Sovicheat went on to add that to obtain the license and certification, the private sector has to pay fees to the government which generally accepted cash in the past, however, to reduce the time-consuming, travelling and documentation costs, MoC attempted to expand even further collaboration.
Source: Khmer Times
Lady Aegies Comment : To be continue...............
