Cambodia's Financial Environment
Cambodia Weekly Financial News
2024-04-06View Times｜ 1185
Cambodia Weekly Financial News
April 01 ~ 05, 2024
1 April 2024
Cambodia – ASEAN Business Summit to kickstart today
The Cambodia-ASEAN Business Summit 2024, to be held from April 1-2 at Sofitel Phnom Penh Phokeethra, will bring together key business leaders, policymakers, and thought leaders from across the region to explore ASEAN’s growing connectivity, its progress in technology innovation and digitization besides the challenges for inclusive growth. According to a concept note, the summit aims to be a catalyst for unlocking the enormous potential of the ASEAN region. The event will be structured around three key pillars – Unleashing the Power of ASEAN Connectivity, Cambodia – Gateway to ASEAN, and Leveraging Technology Innovation and Digitalization for Inclusive Growth. The event is organized by the ASEAN Business Advisory Council of Cambodia with the support of the Royal Government of Cambodia, in partnership with all international chambers and business associations in the country. The summit will feature keynote speeches and panel discussions on topics such as renewable energy, investment opportunities in Cambodia, and leveraging technology for growth. The summit is seen as a groundbreaking event for Cambodia, demonstrating its commitment to engaging with the private sector and attracting investment from the ASEAN region.
Source : Khmer times
1 April 2024
The National Bank of Cambodia ( NBC) calls for more salary payments in Riel
The National Bank of Cambodia ( NBC) Governor Chea Serey encouraged businesses in Cambodia to prioritize internal policies to pay staff salaries in Khmer Riel( KHR) as opposed to the US dollar ( USD), especially in regards to businesses involved in the garment, textile, and footwear industries. Speaking during the ‘44th Anniversary of the Riel’s Reintroduction: The Journey of the Riel and the Bakong System’ event recently, Serey regretted that despite the benefits of KHR salary payments to local staff, the majority of Cambodian workers are still paid in USD. Governor Chea Serey said that NBC recently partnered with the United Nations Development Program ( UNDP) in Cambodia to study the potential effect of increasing KHR use for salary payment instead of USD, with a focus on industries within the garment, textile, and footwear ( GTF) sector. According to the study, while workers have salaries paid in USD, their daily expenses and monetary transfers to their families in their hometown are largely in KHR. To bolster digital payments in KHR, NBC has also promoted the Bakong system with strong uptake from consumers in recent periods. The year 2023 saw a 44 percent increase in payments through Bakong compared to 2022, said Governor Chea Serey.
Source : Khmer times
2 April 2024
Cambodia supports investment and expansion of Japan- Cambodia labor cooperation
Minister of Labor and Vocational Training, said that Cambodia is ready to support Japanese investors who want to invest in Cambodia and expand labor cooperation between Cambodia and Japan. During the meeting on April 1, 2024, the Minister stated that “within the framework of Social Security and Vocational Training, Cambodia is ready to support the Japanese side who wish to invest in Cambodia to create more job opportunities for local people.” The Japanese side was interested in Heng Sour’s remarks and also highlighted the scope and potential of Asakuchi’s famous products for the production of wine and noodles that are produced by handicrafts and fisheries (oysters) and processing of products used in restaurants. In fruitful discussions between the two sides, the Minister has high expectations that Japanese investors will come to invest in Cambodia with human resources, skills, and raw materials to be able to process and support Japanese investment in Cambodia in the future to run smoothly.
Source : Khmer Times
2 April 2024
ASEAN – Cambodia Business Summit:
Cambodian Prime Minister ready to welcome investors
During the summit, Samdech Hun Manet emphasized that the Cambodian economy showed remarkable resilience, with the pre-epidemic of Kovid-19, Cambodia maintained an average economic growth rate of more than 7% per year for the period Two decades. Despite the recent setbacks, the Cambodian economy is recovering with a growth rate of 5.6% in 2023 and is projected to grow by 6.6% in 2024 Achieve a pre-epidemic growth rate of around 7% in 2028. According to Samdech Hun Manet, the Royal Government of Cambodia has been promoting the implementation of the " Plus-One Strategy" by attracting investment, especially in the medium-tech industry, to build factories in Cambodia to supply equipment. Replacement or semi-finished products to large factories in neighboring ASEAN countries. He said that Cambodia has adopted a new investment law to provide investors with attractive potential and strategic excellence, with many incentives for investment projects in key priority areas. The Royal Government has been implementing ambitious reforms to streamline procedures and increase investment attractiveness, promote an open dialogue environment by organizing private sector government forums, address challenges, and ensure the success of Doing business and investing in Cambodia.
Source : The Cambodian China times
2 April 2024
Cambodia Charts 1.8b Digital Payments, Valued at $492b in 2023
A growth of 600 million transactions were recorded between 2022 and 2023, which indicates increased confidence and trust in digital payment systems 1.8 billion Khmer riel and US dollar digital transactions valued at $492 billion were recorded in 2023, which rose over 600 million from 1.1 billion transactions in 2022, the National Bank of Cambodia (NBC) said on March 29. This significant increase, an economist opined, is a reflection of the growth in the digital economy, as well as awareness and trust among Cambodian users. According to the NBC, the total value of transactions, which grew from $400 billion in 2022, is equivalent to 16 times of gross domestic product (GDP). Among the payment systems, there are 27.6 million accounts using the Bakong system, which has grown notably. By the end of 2023, customers could use the service to make payments at more than 2.9 million shops and services. The central bank said in recent years, digital payment transactions in Cambodia have surged through the use of credit cards, debit cards, money transfers, and particularly barcode scanning for small to large payments throughout the country.
Source: Kiri post
3 April 2024
Forum charts course for Cambodia’s future economic development
The forum, jointly organized by the Ministry of Commerce of Cambodia, the Chinese Investment in Cambodia Association, and other authoritative institutions, aimed to discuss Cambodia's potential as a manufacturing hub and attract foreign investment. the government's commitment to promoting manufacturing and attracting foreign direct investment (FDI). Policy measures such as preferential tax systems and streamlined administrative procedures were mentioned to optimize the investment environment. forum covered Cambodia's potential for increasing the value of the industrial chain, promoting technology transfer and innovation, and integrating into the global industrial chain system.
Source: Khmer Times
3 April 2024
Cambodia ready to be a strategic partner of businessmen and investors
As clearly stay from the tittle above, Cambodia's commitment to becoming a strategic partner for businessmen and investors in seizing economic opportunities within the ASEAN region. Cambodia's readiness to work closely with ASEAN member states and dialogue partners to build a resilient, sustainable, and competitive ASEAN Economic Community (AEC) for the common interests of the region. With Cambodia strategic location provides seamless connectivity and fosters an ecosystem of collaboration focused on mutual benefits and common well-being throughout the region.
Source: Khmer times
4 April 2024
PM forms new committee to address private sector issues
The committee's primary objective is to tackle problems and provide suggestions from the private sector. It will address issues beyond the scope of existing committees such as the Economic and Financial Policy Committee and the Cambodian Investment Board. Additionally, it will work on monitoring, evaluating, and reporting to the Prime Minister on various matters concerning investment and business environment enhancement. the government aims to attract quality foreign investments, enhance technology transfer, modernize small and medium enterprises, and improve policy coordination.
Source: Khmer times
4 April 2024
Huawei to digitalize Kingdom’s financial, trade sectors
While Cambodia's fintech industry is in its early stages, the implementation of a solid legal framework for development is crucial for building a resilient financial and commerce system in the digital economy, amidst changing regional trade dynamics. Huawei aims to work closely with relevant institutions and bodies in Cambodia to accelerate the country's digital economic landscape. By introducing up-to-date financial technology. The initiative aims to support the implementation of Cambodia's digital economic and financial technology policies.
Source: Khmer Times
5 April 2024
Cambodia approves 106 new projects and
production expansion projects with an investment of $2.2 billion
The Council for the Development of Cambodia (CDC) approved a total of 106 new projects and production expansion projects in the first quarter of 2024. he total investment for these approved projects amounted to $2.2 billion, which projected to generate more than 107,000 jobs, indicating a positive impact on employment in the region. The surge in investment is attributed to the presence of new projects across various sectors including infrastructure, industry, tourism, and expansion of industrial activities within special economic zones.
Source: Khmer times
5 April 2024
Forbidden Crypto: NBC clarifies why it cannot allow
banks to handle transactions associated with cryptocurrencies
The NBC firmly stated that it does not allow banks or financial institutions to handle cryptocurrency transactions, clarifying that it does not intend to permit banks to deal with cryptocurrencies like Tether or USD Coin due to non-compliance with their criteria. NBC conducted consultations regarding a draft Prakas on cryptoassets, aiming to regulate certain activities while safeguarding financial stability.The draft Prakas distinguishes between different types of cryptoassets, allowing some activities for tokenized traditional assets and stablecoins while prohibiting exposure to others like Bitcoin and Ethereum. NBC will collaborate with the Securities and Exchange Regulator of Cambodia (SERC) in regulating cryptoasset services.
Source: Khmer Times
5 April 2024
CBC counts nearly 5 million borrowers in Cambodia
Around 4.89 million Cambodian individuals borrowed money from banks and financial institutions as of 2023, according to a recent CBC report, which indicates that credit growth in the banking and financial sector reached $57.6 billion in the past year, reflecting a 4.8% year-on-year increase. Phnom Penh residents accounted for the largest share of loans, totaling $28.5 billion, followed by individuals in Kandal and Siem Reap provinces. The Governor of the National Bank of Cambodia (NBC) advised people to use loans for specific purposes and only when necessary, emphasizing responsible borrowing for business and income generation.
Source: Khmer Times
Lady Aegies Comment : To be continue...............
