WEEKLY ECONOMIC UPDATED
Updated: 14 Dec-20 Dec,2019

TRADE & COMMERCE | Coconut Palm Planning To Invest In Fruit Juice Factory

Coconut Palm Group Co Ltd is planning to invest in coconut plantations and set up a factory in Cambodia to produce fruit juice, said its general manager Zhao Bo at a recent meeting with Minister of Agriculture, Forestry and Fisheries Veng Sakhon. The company is the biggest natural plant protein soft drink producer in China and specialises in processing tropical fruits such as coconuts. News of the meeting and Zhao’s visit was posted on the ministry’s Facebook page on Wednesday. During the meeting, Sakhon said the ministry is pleased to support the company’s investments in Cambodia. “If we incorporate suitable growing techniques for producers, it will help to boost coconut production with high prices and good demand,” Sakhon said, adding that the ministry estimates that the company will need some 14,000ha for the plantation. (Dec 19, 2019 | Phnom Penh Post)

TRADE & COMMERCE | Indonesia Trade Event Attracts 70 Firms

More than 70 representatives from Indonesian and Cambodian companies attended a business forum in Phnom Penh yesterday to explore business opportunities and seek new partnerships in the Kingdom. It was the second such forum hosted by the Embassy of the Republic of Indonesia. The first one was held in March. The forum was attended by representatives from several companies from Jepara Regency, in the northeast of the Indonesian province of Central Java. These companies operate in tourism, batik, furniture, beauty, fashion, and building materials, among other sectors. Sudirman Haseng, Ambassador of the Republic of Indonesia, said the goal of the event was to create a platform for Indonesian and Cambodian entrepreneurs to meet, create more business opportunities, and foster trade cooperation between the two countries. (Dec 18, 2019 |Khmer Times)

TRADE & COMMERCE | Three Mango Factories To Open Next Year: Ministry

At least three mango-processing factories will open in 2020, according to the Ministry of Agriculture. The new factories will encourage the production of mango in the Kingdom and help farmers find new markets for their products, Ngin Chhay, director-general of the General Directorate of Agriculture, said. Mr Chhay said interest in mango processing has grown recently. He said Cambodia now has eight factories that process mango, noting that their products are mostly exported. However, he said that the amount of exported mango products is still low. “At least three or four factories will open in 2020 to process mango,” Mr Chhay said. “The new factories are in line with the government’s goal of promoting investment in the mango sector.” (Dec 16, 2019 | Khmer Times)

TOURISM | LTI: Song Saa Resort Among Top Ten Hotels Of The Decade

Song Saa Private Island brought honour to the Kingdom after it was named one of the ten best luxury hotels built this decade. Luxury Travel Intelligence (LTI), a members-only organisation that has been described as the leading source of hotel information among luxury travelers, put Song Saa Private Island on the list, together with well-known names from other parts of Asia, Africa and Europe. LTI came up with top ten list this week after an evaluation performed by 12 of its researchers. The LTI research team evaluated nearly 300 properties from around the world that were built between 2010 and 2019 before coming up with the final list. Song Saa Private Island was the sole Cambodian hotel and the only one from Southeast Asia that made the list. The island nation of Maldives, which is known for luxury tourism, had the most number of hotels in the list at three, including Velaa Private Island, Soneva Jani and Cheval Blanc Randheli. ( Dec 20, 2019/ Khmer Times)

TOURISM | Best Foot Forward: Hiking In The Forests Of Kep National Park

Most tourists usually visit Kep province to stuff themselves with crabs, frolic on the shores of the beach and laze in the sun. But the Kingdom’s smallest province has one more gem to offer – the lush mountain ranges and tranquil atmosphere of the Kep National Park. Unbeknownst to many, the Kep National Park, located behind the Veranda Natural Resort, offers an off-the-beaten track that’s waiting to be explored. Established in 1993, the park covers an area of 66.65sq km and an 8km mountain trail circuit that’s easily travelled by foot, motorbike or mountain bike. “Most of the local tourists are students who wish to see the great outdoors, away from all the stress in school. Foreign tourists come here irregularly. “Sometimes, we see 30 people a day. Sometimes, no one comes. If it’s the rainy season, we usually won’t have any guests,” says a park ranger.  (Dec 18, 2019/Phnom Penh Post)

FINANCE AND BANKING | Canadia Bank Committed To Financial Inclusion

Canadia Bank last week hosted a workshop on credit and loan applications for members of the Cambodia Woman Entrepreneur Association (CWEA) at the Olympia Hotel in Phnom Penh . The workshop aimed to educate members on the factors that banks take into consideration in the loan-approval process. It boasted the presence of Eng Lykuong, CWEA President; Raymond Sia, Canadia Bank CEO; and Tan Jiak Hiang, Sovannaphum Life Assurance (SVL) CEO. Mr Sia highlighted the importance of financial literacy and financial inclusion in the Kingdom. “Canadia Bank is committed to these two causes and will be running a series of workshops for their business partners and SME customers to promote a better understanding of loan applications from both the bank and customer’s perspective,” said Mr Sia. (Dec 16, 2019/Khmer Times)

FINANCE AND BANKING | NBC Calls For Financial Products To Develop Agricultural Sector

The National Bank of Cambodia (NBC) has encouraged financial institutions to add new products and services to contribute to the development of the agricultural sector. Its deputy governor Neav Chanthana who said this was speaking at the 6th NBC Annual Macroeconomic Conference on the theme Agriculture Sector in a Rapid Structural Transformation and Uncertain Global Trade Environment which was held on Monday at its headquarters in the capital. She said over the last few years, agriculture in Cambodia had not showed remarkable growth. The sector used to grow at 6.2 per cent between 2004-2008 but fell to as low as one per cent in the 2014-2018 period. She said the financial sector’s involvement was very important in agriculture.  (Dec 16, 2019/Phnom Penh Post)

REAL ESTATE AND CONSTRUCTION| Real Estate Agency Plans Expansion

Century 21 Zillion Holding, a sub-franchise of real estate agency Century 21 Cambodia, is preparing an expansion across the Kingdom. Starting January, the company plans to open 38 branches in 14 districts in Phnom Penh. It will open an additional 24 branches across the country, each in a different province, although it is still looking for offices. Century 21 Zillion Holdings focuses on the land market, particularly sales, purchases, and leasing, according to Grace Rachny Fong, executive director of Century 21 Cambodia. Ms Rachny Fong said Century 21 Zillion Holdings helps investors find the right plot, assisting them in the purchase process. (Dec 20, 2019| Khmer Times)

REAL ESTATE AND CONSTRUCTION| Coal-Fired Power Plant Breaks Ground

Construction of two 350-megawatt coal-fired power units broke ground yesterday. The power generated is scheduled to be linked to the national grid in 2022. CIIDC Erdos Hongjun Electric Power invested about $1.2 billion in the plant in Preah Sihanouk province’s Stung Hav district. It is a joint venture between CIIDG Erdos Hongjun Electric Power and local firm Cambodia International Investment Development Group Co Ltd. As planned, a 350-MW coal-fired power plant will start to generate power to the national grid in 2022. The other is scheduled to go online in 2023, said Victor Jona, director-general of energy at the Ministry of Mines and Energy. The investment followed marathon talks over prices of power from the plant to Cambodia’s Electricity Authority (EDC), Mr Jona said. (Dec 09, 2019| Khmer Times)

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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