WEEKLY ECONOMIC UPDATED

Updated: 08 Jun-14 Jun,2019

 

TRADE & COMMERCE | Kingdom Prepares First Fertilizer Shipment

In partnership with a Japanese firm, Bayon Heritage Holding Group plans to ship 600 tonnes of organic fertilizer to different Asian markets. Bayon Heritage will become the first local company to export the product, the company chairman and CEO, Sokheang Chan, told Khmer Times. Shipments will be made to Myanmar, Laos, Vietnam, Malaysia, the Philippines, and Japan starting this month, Mr Chan said. “There is big demand for the product in these countries,” he said. “After distributing this organic fertilizer in the local market for 13 years, we will soon officially become the first local company to export the product abroad.” The shipments will be made under the name Japanese Organic Fertilizer, a joint venture between Bayon Heritage and Japan’s Nangoku         Agriculture Development. (Jun 13, 2019 | Khmer Times)

TRADE & COMMERCE | Cambodia, France Trade Up 9 Percent Last Year

Trade between Cambodia and France grew by more than 9 percent last year, exceeding $1.2 billion in value and making France the Kingdom’s third largest export market in the European Union. According to a recent report from the Ministry of Commerce, bilateral trade rose by 9.2 percent year-on-year in 2018, with Cambodia’s exports to France worth more than $1.1 billion. France’s exports to Cambodia were valued at $111, the report shows. “France is the third largest importer of Cambodian goods in the EU and therefore it is a very important market,” said ministry spokesman Long Kemvichet. Mr Kemvichet told Khmer Times that Cambodia’s main exports to France are garments and footwear, and rice. Cambodia mostly imports medicines, wine and spirits, and machinery from France. (Jun 11, 2019 | Khmer Times)

TRADE & COMMERCE | CDC Approves $600m In Investments

The Council for the Development of Cambodia (CDC) last week approved 11 projects worth nearly $600 million. According to a post on CDC’s Facebook page yesterday, 11 projects were greenlighted on June 5-7, amounting to a total investment of $597 million. CDC estimates the projects will generate about 15,600 jobs. The approved developments include projects in manufacturing and agro-processing in Phnom Penh and Kampong Speu province, as well as four and five-star hotels in Sihanoukville, CDC said. The agency did not reveal the origin of the investment. In its Financial Stability Review, NBC said that last year China accounted for 41.3 percent of all foreign direct investment, making it the largest investor in the Kingdom. China was followed by Korea (8.1 percent), Singapore (7.3 percent), and Japan (6.4 percent). (Jun 11, 2019 | Khmer Times

TOURISM | Nesat Beach: A Magnet Drawing Tourists To The Kingdom’s Coastline

A white sandy beach lined by countless coconut trees awaits travellers off Cambodia’s southwest coast in Koh Kong province’s Srae Ambel district, about 170km from Phnom Penh. Over the past few years Nesat beach – a name inspired by a nearby fishing village – has seen more and more tourists surge to its shores after its popularity surged through pictures of its glorious scenery emerging on social media. “Recently, Nesat beach has seen a large number of tourists arrive due to social media. As Sihanoukville has become a major spot for Chinese tourists, Cambodians have started to look elsewhere for quieter beaches,” says Soeung Sopheap, a manager at a small, nameless resort sitting on the beach.( Jun 13, 2019 | Phnom Penh Post)

TOURISM | Cambodia, France Set To Boost Number Of Tourists

Cambodia and France anticipate a growth in the number of tourists travelling between the countries after a delegation from French travel agency Atout France visited the Kingdom on Tuesday and Wednesday, Cambodia Association of Travel Agents president Chhay Sivlin told The Post. Atout France, a government institution which works in partnership with public and private organisations in France to promote the country as a tourism destination, paid its first-ever visit to Cambodia this week. Sivlin told The Post on Wednesday that Atout France’s visit was very important for tourism development in Cambodia as it presents an opportunity for the Kingdom to be widely promoted as a holiday destination in France. (Jun 13, 2019 | Phnom Penh Post)

FINANCE AND BANKING | Ministry Announces Financial Stability Committee

The Cambodian government will establish a committee to ensure the stability of the Cambodian financial system and protect it against internal and external shocks, the Ministry of Economy and Finance said this week in a press release. The National Committee for Cambodian Financial Stability will play a critical role in managing financial crises in a timely and efficient manner, the ministry said. The committee will limit the effects of shocks to the system and stop them from spreading. The ministry added that creating such mechanisms is now the norm around the globe. “With the local financial sector ever more developed, diversified and integrated, each financial subsector is now interconnected, which requires a mechanism like this to respond to systematic risks,” it said. (Jun 13, 2019/ Khmer Times)

FINANCE AND BANKING | Ppcbank And IFC Team Up To Help SMEs

South Korea-based PPCBank on Friday entered into an agreement with the International Finance Corporation (IFC) to foster the growth of small businesses in Cambodia. According to a press release, the new collaboration is part of the bank’s strategy to enhance financial inclusion in Cambodia, facilitate growth, and create jobs. Under the new partnership, PPCBank will use IFC’s risk-sharing facility to help small and medium enterprises (SMEs). Through the risk-sharing facility, PPCBank will be able to provide a more inclusive service to existing customers, particularly SMEs and women-owned enterprises, the company said. The facility will be used to cover loans extended to SMEs, reducing the risk while, at the same time, allowing PPCBank to serve more customers and support their business growth, it added. (Jun 10, 2019 | Khmer Times)

REAL ESTATE AND CONSTRUCTION| Construction Stays Strong

Cambodia’s construction sector remained strong during the first four months of this year following a nearly 20 per cent drop last year, according to Ministry of Land Management, Urban Planning and Construction figures. According to the data, in the first four months of this year the Kingdom’s construction investment capital amounted to $2.742 billion, an increase of 67.37 per cent over the same period last year. Ministry of Land Management, Urban Planning and Construction secretary of state Lao Tip Seiha told The Post on Thursday that most of the construction projects in the Kingdom are office buildings and shared accommodation buildings. He added that the stability of macroeconomic growth and the confidence of both local and foreign investors has brought a lot of applications to the ministry from investors. (Jun 14, 2019| Phnom Penh Post)

REAL ESTATE AND CONSTRUCTION| Thai Boon Roong Tower’s Timetable Yet To Be Decided

The start of construction on the more than $3 billion and over 500m tall Thai Boon Roong Twin Tower has yet to be decided since its initial announcement in 2016, the project manager said. The project is a commercial centre comprising twin 133-storey buildings surrounded by six other high-rises and is set to be constructed on 5ha site opposite NagaWorld.  Thai Boon Roong Group project manager Tous Saphoeun told The Post that the company is ready for the project. However, it is currently unknown when construction will start. “So far, we have not set a timetable for the construction of the Thai Boon Roong twin towers as yet. As of now, we have merely built a wall to prevent landslides,” he said. (Jun 11, 2019| Phnom Penh Posts)

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.

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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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