Cambodia's Financial Environment
Cambodia Weekly Financial News
2024-03-23View Times｜ 1092
Cambodia Weekly Financial News
March 18 ~ 22, 2024
18 March 2024
Cambodia’s public debt stands at $11.24 billion’
Cambodia’s public debt stood at $11.24 billion by the end of last year and the risk from the debt is at a low level, according to a report of the Cambodia Public Debt Statistical Bulletin released by the Ministry of Economy and Finance last week. As much as 46 percent of the public debt is in US dollars while Special Drawing Rights (SDR) constituted 19 percent, Chinese yuan 11 percent, Japanese yen 11 percent, euro seven percent, and local/ other currencies six percent, read the bulletin. Of that, 99.5 percent or $11.19 billion is public external debt and the rest is domestic public debt, it said. The bulletin stated that 64 percent of the public debt is borrowings from bilateral development partners, while 36 percent came from multilateral development partners. Public domestic debt accounted for 0.5 percent. In 2024, the government is set to issue sovereign bonds totaling KHR 440 billion, equating to about $108 million, which will be used to provide direct revenue and ensure investment efficiency and sustainability of debt management, according to the ministry’s budget bill for 2024.
Source : Khmer Times
18 March 2024
NBC to launch Rwanda QR payments
Cambodia and Rwanda have committed to collaborating on cross-border payments, a move aimed at boosting trade and investment flows between the two nations. The pledge was made during a meeting between Chea Serey, governor of the National Bank of Cambodia (NBC) and newly-appointed Rwandan ambassador to Cambodia Nkubito Manzi Bakuramutsa, on March 13 at the central bank’s headquarters in Phnom Penh. A local delegation attended a financial technology (fintech) event in Rwanda from June 20-26 last year to showcase the revolutionary potential of Cambodian fintech innovations, foster cross-border collaboration and elevate the Kingdom’s fintech scene. At the event, CAFT chairman Remi Pell discussed the growth of mobile wallets and payment firms in Cambodia and the expected emergence of new players in regulatory technology (regtech), insurance technology (insurtech) and digital-only banking platforms, known as “neobanks”.
Source : The Phnom Penh Post
18 March 2024
Cambodia-South Korea bilateral trade marks slight increase
Bilateral trade between Cambodia and South Korea in the first two months of 2024 marked a slight increase compared to the same period last year, according to the General Department of Customs and Excise (GDCE). From January to February, trade between the two nations rose slightly by 2.3% to $126.9 million, up from $124 million in the corresponding period of 2023. Imports from Korea were over $73 million, down 4% from $76 million, and exports were $53.85 million, an increase of 12.2% from more than $48 million. Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on March 18 that the Cambodia-Korea Bilateral Free Trade Agreement (CKFTA), which took effect at the end of 2022, plays a crucial role in boosting exports. Heng said that in addition to trade, some Korean investors are active in sectors like Cambodian finance, construction and agriculture. He also noted a significant number of Cambodian workers employed in Korea.
Source : The Phnom Penh Post
19 March 2024
Cambodians increase savings in deposit-taking microfinance players
Cambodians seem to be increasing their savings in deposit-taking microfinance institutions (MFIs). For 2023, deposit balance at the four deposit-taking MFIs – namely AMK Plc, Amret Plc, LOLC (Cambodia) Plc, Mohanokor Plc – was $2.22 billion. This was 11 percent increase from 2022, when the deposit balance was $2 billion, as per data with the Cambodia Microfinance Association (CMA). Industry observers say the increase in deposit balance is an indicator of public trust in deposit-taking MFIs. “The MFI sector is strong and the public reposes trust in it. This is why you can see that the deposit balance has increased 11 percent,” Kaing Tongngy, Head of Communication, CMA, told Khmer Times.
Source : Khmer Times
19 March 2024
Kingdom raises $58 million from government bond issuance in 2023
The Royal Government of Cambodia has raised $58.26 million in funds through government bond issuance in 2023. As per current regulations, the country can raise bonds for up to $200 million. The current bond issuance takes up 29 percent of the limit. The government has issued its bonds in the first primary market through the issuance agent National Bank of Cambodia Auction Platform (NBCP). RGC raises funds from domestic sources as direct funds for use in public investment, according to the Ministry of Economy and Finance. The government bond is not only to meet the annual expenditure but also promote the securities sector, it said. The Ministry of Economy and Finance started issuing government bonds in September 2022 as a new financial instrument, enabling the government to augment domestic revenue, thereby reducing the need to borrow from foreign sources for infrastructure development.
Source: Khmer Times
19 March 2024
CGCC provides $174 million credit guarantees to 2,070 businesses as of February
The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $174 million as of February this year to 2,070 businesses as their working capital for expansion. In a factsheet issued on Monday, CGCC said as of February 29, 2024, the outstanding guaranteed loan was $120 million while the outstanding guaranteed amount was $86.9 million. There are 1,918 micro, small and medium enterprises (MSMEs) and 152 large businesses in Cambodia, the report said, adding that 881 of businesses were women-owned. Smooth loan distribution has boosted entrepreneurship and financial inclusion, said Mey Vann, Secretary of State at the Ministry of Economy and Finance. “The CGCC has played a key role in serving the needs of SMEs in Cambodia, which are struggling in the wake of the Covid-19 pandemic and the inflation crisis, and need credits from banks for their businesses,” he said.
Source: Khmer Times
20 March 2024
NBC reports 44% surge in electronic riel transactions
National Bank of Cambodia (NBC) governor Chea Serey announced an increase in electronic transactions and payments in Cambodian riel for 2023, noting that they were 44% higher than in 2022. She shared the figure while presiding over a March 20 event marking the 44th anniversary of the circulation of Cambodian riel, and its journey towards the blockchain-based Bakong interbank payment system, held at the Centre for Banking Studies in Phnom Penh. The central bank chief explained that in order to promote the use of the national currency, the NBC has implemented electronic systems which facilitate its use, most notably through the Bakong platform, which means riel transactions are modern, faster and feature reduced fees. “As a result, the electronic use of riel has increased. In 2023, they jumped by 44 per cent over 2022. The increase in electronic riel transactions was far higher than the increase in those that used USD, which increased just 3.1%,” she noted. “In addition, the NBC pushed for payment links with neighboring countries and others in the region, so Cambodian people can use their riel accounts to pay via QR code,” she added.
Source: The Phnom Penh Post
20 March 2024
Cambodia-China trade up almost 30% Jan-Feb
Bilateral trade between Cambodia and China saw a year-on-year increase of nearly 30% in the first two months of 2024, according to the General Department of Customs and Excise (GDCE). Between January and February, trade between the two nations totaled $2.2 billion, up by 29% compared to $1.7 million in the same period of 2023. Cambodia exported goods worth $227.75 million to China, marking a 15% increase, while imports were valued at $1.97 billion, a 30.8% rise and accounting for almost 90% of total trade. The Kingdom’s deficit for the period was $1.74 billion, an increase from the $1.31 billion logged during the same period last year. Hong Vanak, director of International Economics at the Royal Academy of Cambodia, attributed the consistent growth in trade volume between the two countries to strengthened diplomatic relations. He also noted the significance of the Cambodia-China Free Trade Agreement (CCFTA) and both countries’ membership in the Regional Comprehensive Economic Partnership Agreement (RCEP). Vanak highlighted China’s role as a principal supplier of raw materials and goods globally, stating that the world’s second-largest economy would continue to be a vital source for the Kingdom.
Source: The Phnom Penh Post
20 March 2024
PM announces 617 PIPs worth $11.7 billion
In a major push for socioeconomic development and generating more job opportunities, the Royal Government of Cambodia (RGC) earmarked a three-year rolling plan for the Public Investment Program (PIP) to complete 617 projects at the cost of $11.69 billion. Presiding over the 6th Plenary Meeting of the Council of Ministers, Prime Minister Hun Manet said, “In the last six months, the Kingdom has received about 173 investment projects registered in the Council for the Development of Cambodia (CDC) – including new, existing and expanding projects – with a total budget worth over $4 billion, creating 177,000 job opportunities.” According to the Cambodian National Budget, PIP is a three-year rolling plan prepared annually to reflect the priorities aimed at achieving the National Strategic Development Plan for 2024 to 2028. The project began in 1996 during the implementation of the First Socio-Economic Development Plan.
Source: Khmer Times
21 March 2024
Cambodia-Vietnam trade hits $1.4B Jan-Feb
The first two months of 2024 witnessed a significant surge in cross-border trade between Cambodia and Vietnam, according to the General Department of Customs and Excise (GDCE). Between January and February, trade between the two nations reached $1.41 billion, a 30.4% increase from $1.08 billion in the same period of 2023. The Kingdom’s exports to Vietnam totaled $801.6 million, an appreciable 63.2% increase from $491.18 million, while imports were valued at $612.66 million, a 3.2% rise from $593.56 million. Cambodia’s trade surplus expanded to $188.94 million, moving out of a deficit which stood at $102.38 million during the same period of 2023. Lim Heng, vice-president of the Cambodia Chamber of Commerce, told The Post that bilateral trade between the two ASEAN neighbors has been positive since late 2023, largely due to the Kingdom’s agricultural exports.
Source: The Phnom Penh Post
21 March 2024
Promotion of Cambodia-Hong Kong trade and investment relations discussed
Cambodia and the Hong Kong Special Administrative Region (SAR) will promote their relationship, particularly in terms of trade and investment. This was the topic of discussion in Hong Kong on March 19 between Sok Sopheak, Secretary of State at the Ministry of Commerce, and Ms. Agnes Chan, Deputy Chairman of Hong Kong General Chamber of Commerce (HKGCC), with participation of leaders of private enterprises of Hong Kong, according to the Cambodian Ministry of Commerce. Besides, both parties discussed the possibility of forging closer relation between the HKGCC and Cambodia Chamber of Commerce via any specific platform on realistic basis. Earlier, on March 18, Sok Sopheak also met with Stephen Wong, Head of Chief Executive’s Policy Unit (CEPU), to comprehend the crucial contributions of think tanks in the development of Hong Kong SAR’s public policy. On the occasion, both counterparts discussed the benefits that Cambodia and Hong Kong SAR have reaped under the Belt and Road Initiative (BRI), the promotion of startups via research and development (R&D), as well as the success story of Hong Kong SAR’s theoretical transformation of ‘Made in Hong Kong’ into ‘Made by Hong Kong’.
Source: Khmer Times
22 March 2024
Cambodia to host Asia-Pacific Financial Development Meeting in May
The state-run Agricultural and Rural Development Bank (ARDB) will host the 47th ADFIAP (Association of Development Financing Institutions in Asia and the Pacific) annual meeting in May this year. The 47th ADFIAP annual meeting will be organized under the theme of ‘Development Financing Institutions (DFIs) Role in Sustainable Finance Ecosystem: Cultivating A Climate-Smart and Sustainable Future’. Some 93 institutions from 41 countries as ADFIAP members and other relevant stakeholders in Cambodia are expected to take part in the meeting. ADFIAP’s mission is to promote sustainable development through the strengthening of institutions and financial functions for development, capacity building of members, and advocacy for financial innovation for development. ARDB has been actively involved in implementing the Cambodian government’s policy of providing special financing to support all actors in the agricultural, agro-industrial and socio-economic development chain.
Source: Khmer Times
22 March 2024
GDT’s e-Administration platform to facilitate tax monitoring
The General Department of Taxation launched its e-Administration, the smartphone-based app application where taxpayers can check and track their tax payment documents. GDT e-Administration will facilitate taxpayers in applying and monitoring documents after their transactions, said GDT Director-General Kong Vibol. This program has the functions of application for enterprise to update, application for stamp tax, transfer of ownership of real estate, application for payment in stages, application for certificates or permits, and application for administrative documents and other documents. The documents submitted in this program will not be lost as long as they are already included in this program and all documents are received via this program and have no chance of losing documents, Vibol said. All applications to this program do not need taxpayers to come to the General Department of Taxation or the Tax Administration. This is part of GDT’s digital transformation initiative to collect income with efficiency. Now, e-Document Submission System and e-Tax Services have been made possible.
Source: Khmer Times
Lady Aegies Comment: To be continue...............
