Cambodia Weekly Financial News
Cambodia Weekly Financial News
2024-09-13View Times｜ 1078
Cambodia Weekly Financial News
September 06 ~ 12 , 2024
06 September 2024
$140M tyre plant opens in Kratie SEZ
The $140 million Newbustar (Cambodia) Tire Co Ltd plant was inaugurated on September 6 in the UBE Snoul SEZ, Kratie province. Chea Vuthy, secretary-general of the CDC, highlighted the investment's role in boosting Cambodia’s economic diversification, job creation, and socio-economic development.
The factory, a subsidiary of China's Doublestar Group, can produce up to 8.5 million tires annually and is one of five tire manufacturing projects in Cambodia's SEZs. Vuthy credited former PM Hun Sen for launching the SEZ program in 2006, which now hosts 775 projects worth $10 billion and employs 180,000 workers.
Source : The Phnom Penh Post
06 September 2024
Japanese envoy trusts improved grid will attract investors
Japanese ambassador to Cambodia Ueno Atsushi expressed hopes that a stronger electricity transmission network in Phnom Penh would attract more foreign investment. He co-signed a $55 million loan agreement with Minister of Foreign Affairs Sok Chenda Sophea for phase two of the “Phnom Penh City Transmission and Distribution System Expansion Project.”
The project, launched in 2015, aims to enhance the capital’s electricity supply, with a focus on renewable energy and grid flexibility. Ueno emphasized the importance of stable electricity for economic growth and achieving Sustainable Development Goal 7. Japan’s loans and technical support will help modernize Cambodia’s energy infrastructure, addressing concerns about energy costs and supporting Phnom Penh’s development as a smart city.
Source : The Phnom Penh Post
09 September 2024
Cambodia’s youth poised to seize opportunities in growing cloud market
Cambodia is positioning itself for leadership in the digital economy through key international partnerships and a focus on workforce development. USAID's Digital Workforce Development (DWD) project, in collaboration with Amazon Web Services (AWS), recently graduated 113 students from its cloud computing certification program, Cloud4Cambodia, with 34 becoming AWS-certified cloud practitioners.
This initiative aims to equip Cambodian students with in-demand ICT skills like cloud computing, preparing them for opportunities in the fast-growing global cloud market, projected to reach over $1.2 trillion by 2028. The program also integrates cloud computing skills into university curricula, fostering public-private partnerships that provide internships, scholarships, and certifications.
The collaboration with global companies like AWS highlights the importance of private-sector involvement in Cambodia’s digital transformation, contributing to economic growth and expanding the country’s participation in the global digital economy.
Source : The Phnom Penh Post
10 September 2024
Investment projects worth over $1.2B approved in August
In August, Cambodia approved 53 new and expansion investment projects worth over $1.2 billion, creating approximately 33,000 jobs, according to the Council for the Development of Cambodia (CDC). The majority of financing came from Chinese investors, contributing around 84.72% of the total. Other investors included local financiers and investors from Singapore, Samoa, the Netherlands, Malaysia, and the US.
The projects, both inside and outside special economic zones (SEZs), span a range of industries, including car tire factories, beverage plants, hotels, and animal feed production. They are mainly concentrated in Phnom Penh and provinces like Preah Sihanouk, Kampong Speu, and Svay Rieng.
Economist Hong Vanak attributed the continued investment growth to Cambodia’s political stability and strong international market connections, particularly with China under the "Diamond Cooperation" framework. In 2023, China accounted for 88% of Cambodia's foreign investment, significantly boosting industrial linkages and reducing reliance on raw material imports. From January to August 2024, Cambodia's international trade reached $36.48 billion, with exports up 16.7% to $17.58 billion, and imports rising by 16.2% to $18.9 billion.
Source : Phnom Penh Post
10 September 2024
Hun Sen urges increased South Korean investment
Senate president Hun Sen urged South Korea to encourage more investment in Cambodia, assuring protection for foreign investors during a meeting with South Korean National Assembly speaker Woo Won-Shik at the 25th World Knowledge Forum. He praised growing trade relations, highlighted the recent free trade agreement, and discussed plans for a special economic zone (SEZ) for Korean companies. Woo acknowledged the positive impact of the FTA, which has attracted over 200 Korean firms to Cambodia. Trade between the two countries reached $556 million in the first eight months of 2024, a 10% increase.
Source: Phnom Penh Post
11 September 2024
NBC discusses QR cross-border payment progress with Japanese bank
Chea Serey, Governor of the National Bank of Cambodia (NBC), met with Katsufumi Uchida, Co-Head for Asia-Pacific at Sumitomo Mitsui Banking Corporation (SMBC), to discuss the progress of connecting Cambodia's QR Code cross-border payment system with Japan. They also explored NBC's cooperation on green bond investments.
Katsufumi highlighted SMBC’s contributions to Cambodia’s banking sector through its investments in ACLEDA Bank and its representative office. Serey encouraged SMBC to expand its direct operations in Cambodia to further boost trade and investment between the two countries.
Lor Vichet from the Cambodia Chinese Commerce Association noted that NBC’s green bond initiatives will promote sustainable business practices in Cambodia.
Source: Khmer Times
12 September 2024
Visa partnership to reap dividends for Kingdom’s tourism
Sok Soken, Cambodia's Minister of Tourism, and Arturo Planell, Visa’s Group Country Manager for Southeast Asia, signed a Memorandum of Understanding (MoU) focused on digital transformation, data sharing, and enhancing digital payments in the tourism sector. The partnership aims to integrate advanced payment systems, benefiting both tourists and local businesses.
Soken highlighted the collaboration's role in creating a seamless payment experience and fostering economic growth. Visa’s involvement will support Cambodia’s tourism recovery, aligning with Prime Minister Hun Manet’s vision for boosting tourism strategies.
Experts emphasized the importance of digital payments in attracting tech-savvy tourists and enhancing overall convenience for travelers.
Source: Khmer Times
12 September 2024
NBC, VISA to further strengthen financial security
The National Bank of Cambodia (NBC) and Visa Inc. have agreed to continue their collaboration to enhance the security of financial transactions, focusing on expanding financial and digital skills in response to technological advancements. During a meeting between NBC Governor Chea Serey and Visa’s senior management, both parties emphasized the importance of improving transaction security and promoting digital payments.
Visa's Arturo Planell praised NBC’s payment innovations, particularly the Bakong system and its tourist-focused app. Serey highlighted the potential use of transaction data to better understand tourist spending behavior and attract more visitors to Cambodia.
Source: Khmer Times
12 September 2024
China’s powerful NDRC steps in to speed up the Funan Techo Canal work
The National Development and Reform Commission (NDRC) of China is focused on expediting the construction of the Funan Techo Canal (FTC) in Cambodia, aiming to meet the 2028 deadline set by the Royal Government of Cambodia (RGC). This commitment was highlighted during a meeting between Cambodia's Deputy Prime Minister Sun Chanthol and NDRC Chairman Zheng Shanjie on September 9.
The NDRC will push Chinese companies to adhere to the project timeline and ensure timely completion. The meeting also involved discussions about enhancing cooperation in transport and logistics, with Li Xiaopeng, China's Minister of Transport, expressing support for Cambodian infrastructure developments.
The FTC, a $1.7 billion project, will connect the Mekong River to the coastal province of Kep, significantly improving Cambodia’s international connectivity. The project includes two sections, with the first 21 km involving a joint venture between Cambodian ports and local conglomerates, while the second section will be jointly invested by the two ports and the China Road and Bridge Cooperation.
Source: Khmer Times
Lady Aegies Comment: To be continue...............
