WEEKLY ECONOMIC UPDATED
Updated: 30 Nov-06 Dec,2019

TRADE & COMMERCE | Thailand’s Big C Opens Outlet in Poipet

Big C Supercentre Poipet, the biggest and most high-profile shopping destination in the region of Cambodia bordering Thailand, had its grand opening on Wednesday. A ribbon-cutting ceremony attended by top Cambodian government officials and Big C executives was the highlight of the ceremony, according to local media reports. Those present included Big C CEO Aswin Techajareonviku and Cambodia’s Ambassador to Thailand Ouk Sorphorn. Ïn his message, Mr Techajareonviku said Cambodians will now have easy access to different kinds of products that are both affordable and of high quality. Big C has a reputation for being a favourite shopping destination for many low- to middle-income customers. It sells a wide array of products, including appliances and food. (Dec 06, 2019 | Khmer Times)

TRADE & COMMERCE | Chinese Firms Seek Investments in Coconut Farming in Cambodia

A group of investors from the Chinese province of Hainan is now in the Kingdom exploring opportunities in coconut farming. The delegation met yesterday with Minister of Agriculture Veng Sakhon in Phnom Penh to discuss the coconut sector in the Kingdom and announce their intention to invest here. Wang Yeqiao, director of Hainan State Farms Investment Holding Group, told the Cambodian minister that the Kingdom’s coconuts could be exported to China, noting that neighbouring Thailand already exports the product. He noted that coconuts in Cambodia and Thailand grow under similar soil and climate conditions. “Coconuts – like rice, mango, banana, and cassava – can also be exported to China. Cambodian coconuts have great potential, but the sector here remains undeveloped,” Mr Wang said. (Dec 05, 2019 | Khmer Times)

TRADE & COMMERCE | Cambodian Rice Set for Export to South Africa

Milled rice exporter Mekong Oryza Trading Co Ltd signed an export memorandum of understanding (MoU) with companies from Hong Kong and South Africa in Phnom Penh on Tuesday. The agreement was inked between Mekong Oryza Trading, Hong Kong-based Zhonghui Taifu International Co Ltd and South African-based Green Shield Africa Group. It was witnessed by Minister of Agriculture, Forestry and Fisheries Veng Sakhon. Sakhon said: “The MoU will help boost Cambodia’s milled rice exports to Chinese and European markets, and now South Africa, which is a new market.” Mekong Oryza Trading president Hun Lak told The Post on Tuesday that the MoU will last for three years, during which the company plans to export some 100,000 tonnes of milled rice to China, Africa and Europe. (Dec 03, 2019 | Phnom Penh Post)

TOURISM | Global Tourism Conferences to Be Held in Phnom Penh in February

Four days of the Tourism and MICE Biz Fair 2020 will kick off in February next year in Phnom Penh. MICE stands for meetings, incentives, conferences and incentives for the travel market. The Tourism and MICE Biz Fair 2020 is organised by B2B Park Mall, and endorsed by the Ministry of Tourism and the Ministry of Commerce. The Tourism and MICE Biz Fair 2020, effectively two separate events at the same time and in the same venue, is a gathering of both local and international sellers and buyers in Phnom Penh to enable them to meet and exchange ideas for creating new opportunities, renew relationships and, more importantly, bring tourism and industry stakeholders together to brainstorm about the industry. The event will run from Feb 29 to March 3 at B2B Park Mall on Phnom Penh’s Hanoi Road. Through this event, local and international sellers can promote their destinations, reach new markets and update current network partners about their products and services to international buyers, and about their specific markets. ( Dec 03, 2019/ Khmer Times)

TOURISM | Revenue, Visitors at Angkor Temples Down Again

Visitors to the world-famous Angkor Archaeological Park, Cambodia’s most important tourist draw, were down significantly during the first eleven months of the year. According to the latest report from Angkor Enterprise, who manages ticket sales at the temple complex, from January to November, revenue from the sale of entrance passes dropped by 14 percent ($1.99 million) compared with the same period last year, reaching just $89 million. In November only 193,260 foreign tourists bought entrance passes, 17 percent less than in 2018. Revenue was $8.8 million, a 16 percent drop compared with the same month last year. The Ministry of Tourism has attributed the decrease in revenue to a drop in the number of Chinese tourists to Siem Reap province, where the temples are located. To reverse the trend, the ministry has urged the relevant authorities and the private sector to improve and expand the province’s tourist offer. ( Dec 03, 2019/Khmer Times)

FINANCE AND BANKING | PPSP Reports Strong Revenue Growth Reaching $2M in Q3

The Cambodia Securities Exchange- (CSX-) listed Phnom Penh Special Economic Zone (PPSP) reported strong revenue growth reaching $2 million in the third quarter of this year – up 46.96 per cent from $1.4 million in the third quarter of last year. In its condensed financial statement filed to the CSX last week, the firm cited an increase in land sales as the main driver of the rise in its quarterly revenue. However, it reported just $762,665 in profit in the third quarter, down 30.49 per cent compared to $1.1 million during the same period last year. CSX Market Operations Department acting director Kim Sophanita told The Post that the net loss does not affect the company’s overall business performance as it is only periodic. She said PPSP’s business position remains firm. “I think investors will look more deeply into the details when it comes to business performance evaluation and not only at certain points in time. (Dec 03, 2019/Phnom Penh Posts)

FINANCE AND BANKING | Acleda to List On Local Bourse

Acleda Bank, the largest locally-owned commercial bank in the country, has announced that it is ready to list on the Cambodia Security Exchange (CSX). The bank was granted permission by the National Bank of Cambodia last week, according to a company statement issued yesterday.  Speaking to Khmer Times yesterday, Jong Weon Ha, CSX vice chairman, said Acleda Bank’s initial public offering is set to change companies’ perception of the local bourse and encourage them to consider the capital market as a source of funding. “Other companies will follow on Acleda’s footsteps, especially other big commercial banks in the country,” he said. “If they want to maintain their competitiveness in the industry, they need to find a cheaper source of funding to lower the interest rate,” he added. (Dec 03, 2019/Khmer Times)

REAL ESTATE AND CONSTRUCTION| Construction of New Phnom Penh Airport On Schedule

Construction of a new airport that will serve Phnom Penh is on track and could be completed as early as 2023, the developer said. Pung Kheav Se, chairman of the Overseas Cambodia Investment Corporation (OCIC), the company behind the project, said they are now building the foundations of the airport, conducting an environmental impact assessment, and negotiating with people affected by construction. Mr Kheav Se was speaking to reporters yesterday at the Cambodia International Construction Industry Expo in Phnom Penh’s Diamond Island. Mr Kheav Se, a renowned investor and chairman of the Board of Directors of Canadia Bank, said, “We are now laying the foundations and building the runway. If there are no issues with the land, I believe that the airport will be ready by 2023.” (Dec 06, 2019| Khmer Times)

REAL ESTATE AND CONSTRUCTION| Investment in Construction To Rise 78% Year-On-Year

Investment in construction will have risen up to 78 percent by the end of the year against last year’s figure, according to the Ministry of Land and Management, Urban Planning and Construction. That amounts to around $9.3 billion across the country. The figures were revealed at the 8th Cambodia-International Construction Industry Expo 2019 yesterday at Koh Pich by Chea Sophara, Deputy Prime Minister and the Minister of Land. Mr Sophara added: “The majority of the investment into Preah Sihanouk province is from China. The increase in the construction sector stems from the strong growth of the economy and political stability.” According to the report from the Land Ministry, in the first 11 months of this year, investment capital in construction was $8.75 billion, accounting for a 67.44 percent rise compared with the same period last year. (Dec 06, 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.

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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