WEEKLY ECONOMIC UPDATED
Updated: 07 Dec-13 Dec,2019

TRADE & COMMERCE | Japanese Firms Looking To Invest In The Kingdom

Seventeen Japanese companies from various sectors are seeking investment and business opportunities in Cambodia to tap the benefits of the country’s sound economic growth over the last two decades. The business matching between Cambodian partners and Japanese investors was held at Acleda Bank’s headquarters in Phnom Penh on Wednesday. It was jointly organised by Acleda bank and the Cambodia-Japan Association led by former Japanese Ambassador Fumiaki Takahashi. In Channy who led a group of potential local investors said the business matching was made to fulfil the commitment made by Prime Minister Hun Sen, who spoke with Japanese investors in Tokyo during his visit to Japan recently. “Prime Minister Hun Sen called for more Japanese investors to invest in Cambodia. Then, I met with former Japanese ambassador [Takahashi] in Cambodia in September when we discussed how to materialise the Prime Minister’s appeal. (Dec 12, 2019 | Phnom Penh Post)

TRADE & COMMERCE | Kingdom’s Trade With Vietnam Rises 13.8%

The two-way trade between Cambodia and Vietnam reached $4.4 billion, an increase of 13.8 percent from January to October, according to local media quoting a Vietnam trade body’s figures. The rise comes close to their joint target with the two governments committed to increasing trade volume by reaching $5 billion by 2020. Vietnam Chamber of Commerce and Industry and Cambodia Chamber of Commerce jointly organised a business forum in Phnom Penh on Saturday when the Vietnam trade body announced the trade volume figure. The forum is hailed as enhancing cooperation between companies in the two countries, where they discussed key issues including increasing the efficiency of trade exchange and protecting the legitimate interests of enterprises and experience in cross-border clearance. Vietnam reportedly noted that it so far has 214 investment projects in the Kingdom, with a combined capital investment amounting to $3 billion. This makes Vietnam businesses the fifth largest foreign direct investors in the Kingdom. (Dec 12, 2019 |Khmer Times)

TRADE & COMMERCE | Cambodia, Japan Bilateral Trade Reaches $1.9B In First 10 Months

Bilateral trade between Cambodia and Japan reached $1.9 billion, in the first 10 months of the year – a slight increase of 0.44 per cent compared to the same period last year, data from the Japan External Trade Organisation (Jetro) showed. Jetro’s data shows that in the first 10 months of last year, the two countries’ trade volume was worth $1.89 billion. Of which, exports of goods from Cambodia to Japan was worth $1.45 billion, an increase of 7.8 per cent, and imports of Japanese goods from Cambodia was worth $444.937 million, a 34.2 per cent increase. Cambodian Chamber of Commerce vice-president Lim Heng said the increase in trade volume shows Japan is a potential market for Cambodia. “The trade volume between the two countries will be much bigger in the future, as the Japanese government is now spending a lot of money to build infrastructure connecting with many countries in the region,” he said. (Dec 09, 2019 | Phnom Penh Post)

TOURISM | A Splash of Untapped Beauty at Oryas Waterfall in Ratanakkiri

The Oryas Waterfall of Ratanakkiri province is one of the few places in the Kingdom that has remained untouched and unexplored. Once tapped though, it has the potential of boosting the eco-tourism for two of Ratanakkiri’s ethnic minorities. Located in the Lam Av village of Koh Pang commune in Veun Sai district, the beautifully isolated falls cascade down 40m into the Sesan river. Aside from visiting the falls, tourists can enjoy the multi-day journey involving a boat ride, a trek, and sight-seeing in a village. Specialising in jungle treks and half-day excursions around Ratanakkiri, Green Jungle Trekking Tours-Cambodia co-founder Om Rithy has created many custom tours for guests who are up for the adventure. “Normally, we have three or four guides for tourists – one speaks English, two are minority peoples, and one acts as an assistant in charge of transportation and other assigned jobs. ( Dec 11, 2019/ Phnom Penh Post)

TOURISM | Sea Festival To Draw Half A Million Visitors: Minister

The Sea Festival, to be held this month in Kampot, is expected to draw at least half a million visitors, according to the Ministry of Tourism. The ministry called on service providers to strengthen the quality of their services and products to ensure these visitors enjoy their time at the festival and said the event is a perfect platform to promote the Kingdom’s tourism potential to locals and foreigners. In a meeting last week with Kampot authorities, Tourism Minister Thong Khon called on the provincial government and tourism service providers in Kampot to improve tourism products and services to attract as many visitors during the festival as possible. “The 8th Sea Festival in Kampot will attract at least 500,000 visitors,” Minister Khon said. This year’s Sea Festival, held under the theme ‘Clean City, Beautiful Bay, Healthy Tourism’, will be held in Kampot province on Dec 20-22. The annual festival is held every year in a different coastal province. Kampot, Kep, Preah Sihanouk and Koh Kong hold the event on a rotating basis. ( Dec 10, 2019/Khmer Times)

FINANCE AND BANKING | Canadia Bank Signs MoU to Provide Healthcare Packages

The Malaysian Healthcare Travel Council (MHTC) has signed a memorandum of understanding (MoU) with one of the Kingdom’s largest banks, Canadia Bank. The signing, which took place in Rosewood Phnom Penh, will provide Canadia Bank’s customers with a healthcare package tailor-made by MHTC. Chief commercial officer of MHTC, Nik Yazmin Nik Azman says the signing between both organisations will allow customers of the bank to experience a unique offering if they choose Malaysia as a destination for medical treatment. The package will include both medical screenings as well as tours. “Being awarded the best health system in the world for four years in a row proves that Malaysia’s healthcare is well-regarded by many,” said Ms Yazmin. She went on to say that in terms of Cambodian tourists coming to Malaysia for medical treatment, there has been a 150 percent increase as more and more Cambodians look for treatment for cardiology and for preventative health screenings. (Dec 13, 2019/Khmer Times)

FINANCE AND BANKING | ABA Bank Issues Bond On Cambodia’s Bourse

The Advanced Bank of Asia Limited (ABA Bank), a member of the National Bank of Canada Group and one of the leading commercial banks in Cambodia, traded its first bond earlier this week. The event opened a new chapter of bond trading on the Cambodia Securities Exchange (CSX). A CSX announcement said the ABA bond was traded at 100,000 riel ($25), and became the first traded bond to yield 8.783 per cent with the trading volume of 38 units, equivalent to 3.8 million riel ($950). “Today marked the first-ever bond trading in CSX since the first bond was listed on December 5, 2018,” the CSX said. CSX market operations department acting director Kim Sophanita told The Post on Wednesday that the first ABA bond was traded that on Dec 5. It was a retail trade between Cambodian individuals both at the buy and sell-side with the quantity of 38 bonds at 100,000 riel (yield 8.78 per cent). (Dec 11, 2019/Phnom Penh Post)

REAL ESTATE AND CONSTRUCTION| Is ASEM Summit 2020 Benefiting Cambodia’s Real Estate Industry?

Cambodia is hosting the 13th Asia-Europe summit in 2020, an inter-governmental meeting which will be held in Phnom Penh where leaders from Asia and Europe meet to discuss how countries from the two continents can improve ties in political, security, economic and cultural cooperation. Established in 1996, the Asia-Europe Meeting, widely known as ASEM, is composed of 51 member countries and two partner institutions, namely, the European Union and the ASEAN Secretariat. The ASEM Summit is held every two years and is a forum focusing on how the member countries can boost their cooperation based on its three pillars: political, economic & financial, and social, cultural & educational. Cambodia was chosen to be the host of the 13th ASEM summit during the last summit in 2018 held in Brussels,Belgium.(Dec 11, 2019| Khmer Times)

REAL ESTATE AND CONSTRUCTION| Expressway Construction Continuing As Planned: Ministry

Construction of the country’s first expressway, connecting Phnom Penh and Sihanoukville on the coast, is 7 percent complete almost a year after the groundbreaking. The construction of the thoroughfare is going according to schedule, according to the Ministry of Public Works and Transport, who recently said in a Facebook post that the expressway will be completed by early 2023. During a site visit on Sunday, Transport Minister Sun Chanthol was told by representatives of the project’s developer that progress on construction work has reached 7 percent and that work on the main road will begin early next year. Ministry spokesman Vasim Sorya confirmed the company’s remarks saying the main work will begin early 2020. “We are still at the very early stages of the process but that’s mainly because the developer has been busy importing machinery and building offices and accommodation for workers. The company is working non-stop, days and nights,” Mr Sorya 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.

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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