Cambodia Weekly Financial News
Cambodia Weekly Financial News
2024-05-04View Times｜ 1098
Cambodia Weekly Financial News
April 29 ~ May 03, 2024
29 April 2024
NBC and ERIA join hands to develop a strategy for green digital finance
The National Bank of Cambodia ( NBC ) and the Economic Research Institution for ASEAN and East Asia have recently entered cooperation to develop a strategy for green digital finance in Cambodia. The framework of cooperation will help build the capacity of stakeholders through workshops to discuss and consult on issues related to green and digital innovation and seek opportunities in the development of environmental, social, and governance ( ESG) principles and green digital financing in Cambodia, read an NBC press release. Cambodia has so far participated in international frameworks such as the Inclusive Green Finance Working Group, the Network for Greening the Financial System, and ASEAN Taskforce on Sustainable Finance, UNESCAP, the Alliance for Financial Inclusion, and International Finance Corporations in strengthening green financing participation. It may be recalled that NBC has also invested part of its international reserves in green bonds and became a member of the advisory committee of the Asian Green Bond fund in 2022.
Source : Khmer times
29 April 2024
Cambodia’s investment policy preserves the existing investments while fostering new ones:
peace and stability are crucial, the Prime Minister says
Prime Minister Hun Manet stated that the investment policy of the Royal Government of Cambodia is to preserves existing investments while also fostering new ones. The premier underscored, “All factory enterprises must be maintained to ensure sustainability, with equal attention given to the informal economy.” Prime Minister Hun Manet expressed his belief that all investors thriving in Cambodia will contribute to the welfare of Cambodians by raising salaries and expanding their enterprises as they grow. On the occasion, the premier also asserted that attracting new investors is essential in addition to maintaining existing investments. He stated that effectively recruiting new investors also requires the involvement of existing investors in the country, which he deems highly effective.
Source : Khmer times
29 April 2024
Phnom Penh SEZ Announces Increase in Assets
At a forum held by Cambodia Securities Exchange (CSX), the CFO of Royal Group Phnom Penh SEZ Plc gave an update on its financial results to investors within a year, public-listed Royal Group Phnom Penh SEZ Plc’s (stock ticker PPSP) total assets increased from $107.9 million in 2022 to $114.3 million in 2023, mainly due to a $5.9 million increase in investment properties. During an Earnings Forum organized by Cambodia Securities Exchange (CSX), PPSP Chief Financial Officer Fong Nee Wai said the group transferred property, plant and equipment to “investment in properties” in the financial year ended 2023.The transfer was reflected in the balance sheet as a decrease in property, plant and equipment of $3 million and an increase in investment properties of $5.9 million.
Source : The Cambodia China times
30 April 2024
Frozen projects in Sihanouk Ville lure new investors
Eighteen private companies have already applied to invest in frozen construction projects in Sihanoukville province under the Royal Government of Cambodia’s recently-implemented ‘Special Investment Promotion Program in Sihanoukville 2024’, said Kouch Chamroeun, Governor of Sihanoukville Province. The ‘Special Investment Promotion Program in Sihanoukville 2024’ was officially inaugurated in January this year, with the purpose of assisting various types of incoming investments into the province. The program covers not only investment projects or business activities linked to stalled construction projects set to commence in 2024 but also investment projects or business activities unrelated to frozen constructions but slated for an immediate start in 2024. The program also ensures investment and business procedures for investors of stalled projects, encompassing all necessary license, certificate and permit applications. As part of the initiative, Sihanoukville real estate market assistance for new investors is also now available, including investor matching services and reference valuation prices for real estate in Sihanoukville
Source : Khmer Times
02 May 2024
Tracking The “ Moodswings” of The CSX Index- An Analyst’s View
Last week, the Cambodia Securities Index ( CSX) fell to a five-year low at 422.9 points as sellers overtook buyers amid Acelda Bank Plc’s announcement to lower the dividend payout ratio for its 2023 fiscal year. The index descended even lower this week after opening at 420.43 points and ending Monday’s trade at 410.49 points. According to Chakara Sisowath, executive director of the Ratings Agency of (Cambodia) Plc, he has shared that, Typically, three main factors drive stock prices: fundamentals valuation, and sentiment. The performance of an index is subject to the same as it is an average of the performances of its component stock. Looking specifically at the case of Cambodia the CSX fundamentals have been relatively resilient.
Source: Kiripost
02 May 2024
Cambodia to have five more vehicle assembly factories
According to the Ministry of Commerce, five automobile manufacturers are reportedly building production facilities in Cambodia. The first car companies, including HGB Motors Assembly, Em Automotive, GTV Motor, Toyota, and China Matrix Technology, are structuring their production in preparation for opening their assembly plants in Cambodia Ms.Cham Numul, Minister of Commerce, said in the 1st Auto Show 2024 held here last Saturday. The minister encouraged businesses and investment partners to consider expanding their business ventures and establishing production bases in Cambodia to benefit from the ASEAN Plus trade agreement trade preferences, national trade and investment facilitation framework, as well as investing in car factories, especially EVs, to supply the domestic market and for export. The new factories will bring the total number of vehicle assembly plants in Cambodia to nine. Other operational vehicle assembly factories include Hyundai in Koh Kong province, SsangYong in Svay Rieng province, FORD in Pursat province, and Isuzu in Kampong Speu province.
Source: Khmer Times
02 April 2024
Sihanoukville Autonomous Port to be transformed into regional port and logistics hub
The Royal Government of Cambodia has an ambition to develop Sihanoukville Autonomous Port in Preah Sihanouk province into not only a deep seaport in Cambodia, but also a regional port and logistics hub by 2050. The Premier added that the port sector is one of the priority sectors to which the Royal Government pays attention by increasing investment funds and mobilizing financing to further develop the port infrastructure. Sihanoukville Autonomous Port is considered a national economic gateway with character as a strategic entity in supporting international trade activities for economic growth in the past, at present, and in the future, he said, stressing that this port not only increases revenue on the spot but can also be a driving force for economic growth in Sihanoukville as well as the country’s whole coastal region.
Source: Khmer times
02 May 2024
14 projects worth $213M approved in Sihanoukville
Another 14 projects worth $213 million received approval in Cambodia’s coastal city Sihanoukville recently which included 10 projects for reviving the construction of stalled buildings under the ‘Special Investment Promotion Program’ for the city, launched by Prime Minister Hun Manet earlier in January. The approved projects include five-star hotels, casinos, resort complexes, condominiums, multifunctional buildings for office and accommodation, a concrete mixing plant, a cardboard manufacturing facility and a project for interior decoration. These projects are a mix of Cambodian and foreign ownership across small, medium, and large-scale investments. It has been learned that the Investment Promotion Working Group will soon review the special incentive proposals for 12 more projects.
Source: Khmer times
02 May 2024
Business forum to scales up Cambodia- Mexico trade,investment ties
Trade and investment cooperation between Cambodia and Mexico are expected to increase after a business forum which is planned to be organized in Phnom Penh soon. The remarks were made during a meeting on Monday between Kith Meng, President of the Cambodia Chamber of Commerce and Liliana Ferrer, Ambassador of Mexico to Cambodia. Both discussed the existing business ties and promoting trade and investment between the two countries. Meng said Mexico and Cambodia have had diplomatic relations for a long time, but bilateral trade and economic ties have not been explored adequately. He also asked the Mexican ambassador to consider and push the establishment of a Mexican trade liaison in Cambodia that can work directly to connect with Cambodian businesses and work towards promoting trade and investment. The main products that Cambodia exports to Mexico are trunks and cases, non-knit women’s suits, and knit sweaters. Imported from Mexico are delivery trucks and cars.
Source: Khmer Times
02 May 2024
Government asks investors to build EV production
The Ministry of Commerce (MoC) encouraged investors and businessmen to invest in car factories, especially the electric vehicles (EVs) and reap benefits from the FTAs that Cambodia has with many partners and the preferential tariffs received from developed countries. The announcement was made on Saturday during the inauguration ceremony of the ‘First Auto Show 2024’ which was presided over by Hun Many, Deputy Prime Minister and Minister of Civil Service (MCS) and Cham Nimul, Minister of MoC at The Premier Center Sen Sok in Phnom Penh. Ms Cham Nimul have encouraged investors to invest in establishing more production bases and car factories, especially in the electric vehicles (EVs) to reap benefits from the FTAs and other the preferential tariffs received from developed countries.
Source: Khmer Times
03 May 2024
Working capital loans form 54% of small business needs
Cambodians running small businesses are continuing to find the need for working capital as their most pressing need,as per data. As high as 54 percent of 11.89 million loans issued were for working capital,as per the first quarter report of the Small Business Credit Index by the Credit Bureau Cambodia ( CBC). When it came to loan balance or loans outstanding, the share of working capital loans was the highest at 68 percent. This was followed by agriculture loans at 11 percent, construction at 2 percent, and others at 12 percent. As high as 62% of laon applications were for a working capital of 590,000 loan applications. This was followed by 24.2 percent loan application for agriculture, 5.5% for asset finance, and 7.9% for other purposes.
Source: Khmer times
03 May 2024
29,000 skilled workers benefit from MEF- funded projects
Nearly 28,985 Cambodians benefited from the Skills Development Fund (SDF), a programme initiated by the Ministry of Economy and Finance (MEF) from 2018 to 2024, said a senior SDF official. The official also said the SDF approved 134 projects out of 297 proposals, funding about $22.05 million to train 28,985 Cambodians, of whom 33 percent are female. On the evaluation of training outcomes, 88 percent of trainees who completed the course earned an average salary of $246 per month, an increase of 20.5 percent compared to the minimum wageof $204 per month approved by the Royal Government of Cambodia (RGC) in early this year.Based on the report, 29 percent of the funding budget was injected into the digital sector, 22 percent went to tourism, 15 percent was used for construction, 14 percent for manufacturing, and 20 percent for others.
Source: Khmer times
03 May 2024
A New Base year for GDP could Augment Cambodia’s Economy up to 50%
An analysis by Mekong Strategic Capital draws up several positive impacts that they perceive could happen if Cambodia applied an up-to-date base year to measure GDP as it better reflects the latest economic transformations; offering more accurate estimates and could see Cambodia achieve high middle-income status faster an up-to-date base year to calculate gross domestic product (GDP) could see Cambodia's economy bigger at 45 percent to 50 percent, rather than 35 percent, said investment and advisory firm Mekong Strategic Capital (MSC). The findings were made in a brief analysis following the base year revision by NIS, which is reflected in the International Monetary Fund (IMF)’s GDP growth projection of six percent for Cambodia for 2024 in April.
Source: Kiripost
Lady Aegies Comment : To be continue...............
