WEEKLY ECONOMIC UPDATED
Updated: 16-22 February, 2019

TRADE & COMMERCE | EBA Suspension Not Fatal: Gov’t

Government, private sector and civil society representatives gathered on Friday to discuss the impact of a likely removal of Cambodia’s preferential trade status in the European Union and explore potential courses of action. At the roundtable meeting – which brought together representatives of the Ministry of Commerce, the Royal Academy of Cambodia, the Garment Manufacturers Association in Cambodia (GMAC) and the European Chamber of Commerce (Eurocham), among others – public officials claimed that Cambodia is prepared to survive without the Everything-but-arms (EBA) deal. (Febuary 18 , 2019 | Khmer Times)

TRADE & COMMERCE | Telecom Cambodia And Seatel Team Up To Boost Telco Sector

In a bid to bolster the local telecommunications sector, Telecom Cambodia, a state corporation, yesterday signed a memorandum of understanding with Chinese-owned Southeast Asia Telecommunications, or Seatel. The MoU aims to advance the development of the local ICT sector and help Cambodia come in line with regional standards. It also seeks to support TC’s growth locally and regionally and paves the way for future public-private partnerships to develop telecommunications infrastructure, said Sok Puthyvuth, secretary of state of the Ministry of Posts and TC chairman. (Febuary 22 , 2019 | Khmer Times)

TRADE & COMMERCE | Cambodia To Host RCEP Ministerial Meeting

Cambodia will host the Seventh Regional Comprehensive Economic Partnership Intersessional Ministerial Meeting next month to discuss negotiations over issues of market access for goods, services, and investment and provide guidance to negotiators. The ministers will resume discussions following the 25th round of negotiations for RCEP which is being held now in Bali, according to an announcement from the Cambodian Ministry of Commerce. (February 22, 2019 | Khmer Times)

TRADE & COMMERCE | Thai Companies To Build $200m Mixed-Use Project In Siem Reap

Thai companies will invest $200 million in a mixed-use development in Siem Reap that will comprise holiday homes, resorts, and a floating market. Tous Saphoeun, co-founder of Borei Angkor Landmark Banteay Srei, told Khmer Times that he has entered into a partnership with Thailand’s Sin Corp, Chang Siem Corporation and TPI Polene, one of the largest cement companies in Thailand, to develop a mixed-use project in Siem Reap. (February 22, 2019 | Khmer Times)

TOURISM | Temi Tourism Project Approved By The CDC

The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday, The project is part of Chinese-owned Union City Development Group Co Ltd’s (UDG) Dara Sakor Tourism Resort project. The CDC said it approved UDG’s proposal to invest in a five-star hotel with 800 rooms, a commercial centre, a golf course, bungalows, villas, amusement parks, and a naval park among other attractions. (Febuary 20 , 2019 | Phnom Penh Post

TOURISM | Kratie To Become A Priority Tourist Destination

The province of Kratie, in the country’s east, is poised to become a priority tourist destination and a national heritage site. Tourism Minister Thong Khon on Monday unveiled plans to turn the province’s capital into a “prime tourism destination” and a “heritage city”. Prime destinations are important attractions but are not as crucial to the tourism sector as the country’s main tourist draws – the Angkor Archaeological Park in Siem Reap and the coastal areas. (Febuary 20 , 2019 Khmer Times)

TOURISM | Runway Expansion Project In Sihanoukville Airport To Cost $21m

Cambodia Airports, the company that manages all international airports in the Kingdom, said it is investing $21 million to expand the runway in Sihanoukville International Airport to cope with the rapidly growing number of passengers.Norinda Khek, communications and public relations director at Cambodia Airports, told Khmer Times in an email that the company began construction work on the project earlier this year. (Febuary 20 , 2019 Khmer Times)

TOURISM | Construction Of National Park In Mondulkiri Begins

Construction of Mondulkiri’s first major national park began on Tuesday with a budget of $10 million. Sen Monorom Recreational Park will be located on a 20-hectare site that used to be an airport. Svay Sam Eang, the provincial governor, said it will be a Khmer-style park, with numerous plant species that represent the province’s climate, culture, identity, and indigenous peoples. (Febuary 21 , 2019 Khmer Times)

FINANCE AND BANKING | AMK To Offer Access To CBC’s Credit

AMK Microfinance has become the latest institution to partner with the Credit Bureau of Cambodia (CBC) to enhance customers’ access to their credit status. AMK Microfinance and CBC, an organisation that specialises in providing commercial credit insight, signed a memorandum of understanding on Friday, making CBC’s Financial Health Check service available to customers of five AMK branches located in Phnom Penh, Kandal, Kampong Cham, and Siem Reap. (Febuary 18 , 2019 | Khmer Times)

AGRICULTURE | UAE Investors Interested In Kingdom

UAE-based Mohammad Omar Bin Haider Holding Group PSC (MOBH) has shown interest in investing in the Kingdom’s main sectors. Cambodia should seek new investment partners as the Kingdom is facing market problems due to a change in its export policies to the EU, say insiders. During a meeting last week with Cambodian Minister of Commerce, Abdo Ali Kayali, director-general of Management and International Relations at MOBH said his company was keen on investing in several sectors such as real estate, agriculture, garments, tourism and hospitality. (Febuary 19 , 2019 | Phnom Penh Post)

AGRICULTURE | Cassava Farmers Rejoice As Going Organic Pays Off

With the country’s first-ever harvest of organic cassava having recently come to an end, farmers say they are happy with the price the crop is fetching, with some earning as much as $2,350 per hectare. Un Sokun, the leader of an agricultural community in Kampong Thom province, told Khmer Times that cassava farmers in her community are earning more this season after having gone organic. (Febuary 19 , 2019 | Khmer Times)

 

 

AGRICULTURE | Government Seeks To Boost Rice Exports

Prime Minister Hun Sen said the government will take more action to raise the Kingdom’s rice exports, including reducing production costs and boosting market competitiveness. Speaking at a meeting with garment workers in Kandal province on Wednesday, Prime Minister Hun Sen said Cambodia’s rice exports could not reach one million tonnes per annum due to strong international market competition. (Febuary 21 , 2019 | Phnom Penh Post)

 

REAL ESTATE AND CONSTRUCTION | Property, Cars, Tech And More

Realestate.com.kh is breaking new ground with its latest show, the Home & Lifestyle Expo 2019. Excitement is already building as the biggest names in Cambodia are signing up to take part. Cambodia’s biggest real estate website has done shows in the past. The next show is expected to be bigger than anything before it, however. It’s happening at Koh Pich Exhibition Center, the country’s biggest hall, on April 26 and 27. The lineup already has the biggest stars of Cambodia real estate. (Febuary 20, 2019 | Khmer Times)

 

REAL ESTATE AND CONSTRUCTION| Phnom Penh’s Land Prices Rise, Led By Fast-Developing Sen Sok District

Land prices in Phnom Penh continued to show signs of upward movement at the beginning of this year, led by Sen Sok district, while Chroy Changvar district remains stagnant, according to a real estate developer’s report. Key Real Estate’s land price research report said that with a 17.1 per cent growth rate from the beginning of the year, Sen Sok district had the fastest growing land prices early this year, followed by Meanchey district, with a growth rate of 16 per cent, Dangkor district (12.1 per cent), Prek Pnov (10.1 per cent) and Russey Keo district (9.6 per cent). (Febuary 21 , 2019 | Phnom Penh Post)

 

CAMBODIA  Selected  Indicators

2013

2014

2015

2016f

2017f

2018f

 

Real GDP growth, at constant market prices

7.4

7.1

7.0

7.0

6.9

6.9

 

Private  Consumption

5.8

4.5

5.9

2.4

2.3

2.2

 

Government   Consumption

5.2

2.4

4.4

3.8

10.3

14.5

 

Gross Fixed Capital Investment

15.3

9.1

10.6

8.1

9.7

16.8

 

Exports, Goods and Services

14.0

11.3

7.2

9.5

8.1

8.3

 

Imports, Goods and Services

15.1

10.1

6.5

5.9

5.8

7.9

 

Real GDP growth, at constant factor prices

7.4

6.9

6.9

6.9

6.9

6.9

 

Agriculture

1.6

0.3

0.2

0.4

0.3

0.7

 

Industry

11.0

9.8

11.7

11.4

9.0

7.7

 

Services

8.7

8.7

7.1

6.8

8.5

9.1

 

Inflation (Consumer Price Index)

2.2

1.7

1.3

3.2

3.4

3.5

 

Current Account Balance (% of GDP)

-9.5

-9.0

-8.5

-8.4

-8.5

-8.7

 

Financial and Capital Account (% of GDP)

15.2

14.6

14.1

13.4

12.0

10.8

 

Net Foreign Direct Investment (% of GDP)

11.8

10.0

9.1

8.5

8.2

7.0

 

Fiscal Balance (% of GDP)

-6.5

-3.8

-2.0

-2.9

-4.9

-4.9

 

Debt (% of GDP)

31.6

31.8

32.1

32.6

33.3

34.0

 

Primary Balance (% of GDP)

-5.8

-3.1

-1.7

-2.5

-4.6

-4.6

 

Sources: World Bank, Macroeconomics and Fiscal Management Global Practice, and Poverty Global Practice.

DISCLAIMER

The report is produced based on material compiled from data considered to be reliable at the time of writing. Information and opinions expressed, however, will be subjected to adjusted at short notice. We do not accept any liability directly or indirectly that may arise from investment decision-making based on this report while we tend share as your information only.

 

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