Thursday, September 4, 2008

December 2007-March 2008 news

QSR in joint venture to open KFC Cambodia

KUALA LUMPUR: QSR Brands Bhd has signed an agreement with Royal Group of Companies Ltd (RGC) and Rightlink Corp Ltd Hong Kong (RCL) to form a joint venture company to operate the Kentucky Fried Chicken Restaurant (KFC Cambodia) business in Cambodia.

In a filing with Bursa Malaysia, QSR said the new joint venture company; Kampuchea Food Corp Ltd (KFCL) would be responsible for the operations of KFC Cambodia.
It said the new company would have an initial paid-up capital of $1.6 million with QSR holding 55% equity, RGC 35% and RCL the remaining 10%.
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Treaty Reduces Procedures for Regional Transport
The National Assembly ratified Wednesday a treaty that will by 2010 reduce procedures for people traveling and goods being transported between Cambodia, China, Laos, Burma, Thailand, and Vietnam.
Current border checks involve seven steps by custom officials, which slow down cross-border transportation. The agreement will reduce the process to a single procedure.
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Details released about Sihanoukville islands development lease

The government has released the details of two private companies that have been given permission to develop two of the 22 islands of Sihanoukville. The 99-year lease agreements were inked yesterday by representatives of the government and private firms.

Commerce Minister and Deputy Chairman of the Council for the Development of Cambodia (CDC) Cham Prasidh signed one agreement with Kith Meng, CEO of the Royal Group, to lease the 7,826 hectare Koh Rong island as an ecotourism resort which will include an airport, roads, a water system, a hotel and other infrastructure.

Koh Russey is owned by the Singapore-based holding City Star Private Equity Asia company signed another lease on a 76 hectare portion of the 137 hectare Koh Russey island. The company also won rights last year to develop a portion of Takeav Island.

Suon Sithy, secretary-general of the CDC, said the Koh Rong plan is the bigger development, estimating its value at over a billion dollars.

Plans for the development of Koh Rong must be submitted to the CDC for approval within 18 months of the signing date, Suon Sithy said. The US$48 million Koh Russey development plan must be submitted within on year, he added.

Both developments will be subject to stringent environmental protection requirements, Suon Sithy assured.
“Investment and protected areas must be clearly identified in the master-plans to avoid any deforestation on the islands,” he said.

So far, the ten islands have been leased for ecotourism. In July 2007 the government agreed to lease five islands in the Gulf of Thailand for US$627 million.

No more double digit growth in 2008? [-Cambodia yearly trade deficit: $1.5 billion]
Cambodia expects 2008 growth of 7.3 percent - PM
PHNOM PENH, Feb 28 (Reuters) -
Cambodia's economy is expected to expand by 7.3 percent this year, a slower rate than in 2007 due to the pressure of high world oil prices, Prime Minister Hun Sen said on Thursday.

However, a blossoming private sector, overseas aid, sustained foreign investment and continued political stability should ensure healthy growth in the key garment, tourism, construction and agriculture sectors, he said.

"Cambodia needs to sustain this growth to catch up with and keep pace with neighbouring countries," Hun Sen said at a economic conference for international investors.Cambodia's economy struggled during the 1990s to shake off the legacy of decades of civil war and upheaval, including the atrocities of the Khmer Rouge "Killing Fields".

However, it has taken off in the last few years, and expanded at an estimated 9.6 percent last year, making it one of the fastest-growing economies in the world.Its gross domestic product is $8.4 billion, giving a per- capita annual income of more than $500.

The garment sector, valued at $3.8 billion last year, represents the lion's share of exports, a government report showed.The Southeast Asian nation also received 1.7 million tourists last year and expects a 25 percent increase in 2008.

The report said reserves had increased by $600 million last year to $1.7 billion, but said the country ran a trade deficit of $1.5 billion, mainly due to the increase in value of petroleum imports.

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Special Economic Zones need more customers
Special Economic Zone (SEZ)s may have to wait for more customers before they can be fully operational, says the Council for the Development of Cambodia (CDC).

“SEZ infrastructure cannot be built too extensively because all the companies with licenses for SEZs are still looking for customers,” CDC Secretary General Sok Chenda said Wednesday in Phnom Penh at a Cambodian Club of Journalists forum on the direction imports are taking.

Since 2006, the government has been licensing companies to invest in SEZs across Cambodia, in order to promote industry and create more jobs. However only one SEZ, in Svay Rieng province, is officially operational; the others are being developed.

“We are pushing for the creation of SEZs because we need to diversify our basic industries,” said Prime Minister Hun Sen, who has personally been behind the creation of SEZs, believing they will help create a healthy economy in the future. “The zones create many jobs,” he said.

Sok Sina, independent economic analyst, said SEZs are a large investment project so investors will need time to develop projects which are going to be competitive in the market.
“It’s OK to take time with SEZs,” he said.

The government has licensed companies to develop in 19 SEZs-in Phnom Penh, Poipet and Sihanoukville; and in the provinces of Koh Kong, Kompong Cham, Kampot, Takeo, Kandal and Svay Rieng. Last weekend the country’s largest SEZ to date was created in Sihanoukville, potentially worth $US 3 billion.

“We hope the SEZ project will run when there are many customers; companies cannot develop SEZs before they have customers,” said Sok Chenda.

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Asian nations top investors for 2007
China overtook South Korea as Cambodia’s largest foreign investor last year, but Japan showed increased interest in investment as opposed to aid, a senior Cambodian economist said yesterday.

Speaking at a press conference in the capital, the secretary-general for the government’s Council for the Development of Cambodia (CDC), Sok Chenda, gently chided Western nations for lagging behind Asian nations in foreign direct investment.

He said between 1994 and 2003 investment from Western nations made up just 15 percent of the country’s total, with 60 percent coming from Asian nations such as Malaysia, China and Korea.

“I can’t predict foreign investment figures for 2008 but I hope for even more. Prime Minister Hun Sen just returned from a visit to South Korea yesterday and we are hopeful that will generate renewed investment interest there,” Chenda said.

“There is also new interest from other quarters, and especially Japan. Japanese investors have certainly now entered the doors of our home.”

Approved foreign investments from 1994 to 2007 totaled US$14.83 billion, he said, with China accounting for US$1.76 billion of that total, South Korea US$1.5 billion and Japan US$135 million. Domestic investment increased by 49 % (45% in 2006), Chinese by 17%, and Korean by 5%.

Industrial investments (garment, shoes, cement…) made up 34 percent of that total, followed by the service industry with 32 percent.

Agriculture made up just 7 percent, but Chenda said that was a promising area of growth, and with a boom in global bio-fuel demand and the recent launch of several food processing factories in Cambodia, it was expected to continue to grow.

However he admitted the developing nation still faced obstacles, such as Cambodia’s terrible trade balance and lack of secondary industries, which meant container ships arrived full but often left with room to spare.

He also appealed to foreign governments to help Cambodia strengthen its ability to curb money laundering, pointing out that the country lacked an investment board to investigate potential investors thoroughly, such as the boards set up in Thailand and Japan.

“Competing regionally remains less than easy. Trading partners use the words ‘friendly’ and ‘cooperation, but of course they always look after their own interests,” he said.
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Expressway to link Phnom Penh with VN
A six-lane expressway linking Phnom Penh with the center of Vietnam’s Mekong Delta “rice bowl” is in the wind.
Vietnamese and Cambodian authorities met Feb 26 to discuss the proposed highway from Phnom Penh to Can Tho city, said Kem Borey, director of the Transport Ministry’s Road Infrastructure Department yesterday.
Can Tho-with a population of over a million- is the thriving capital of Vietnam’s fertile Mekong Delta, about 170 km southwest of Ho Chi-Minh City.

“Our Vietnamese counterparts have said that two US companies—from Los Angeles and San Francisco—intend to build the 230 km highway,” said Kem Borey. “It’s estimated it will cost US$20 million per kilometer [US$4.6 billion in total].” He said the road will be BOT (Built-Operate-Transfer), which means the company will receive toll fees from drivers who use the road, until they hand it over to the two governments after 30 years of use.

Kem Borey said the highway will run from Can Tho, through An Giang province before the final stretch of approximately 120 km from the border to Phnom Penh. He added that the final route of this last stretch has not been finalized but would either follow National Road 2 through Takeo province, National Road 21 through Takeo province, or comprise a new road traversing Kampot province.

The two sides are preparing reports and will meet in mid-March with the aim of making a memorandum of understanding, Kem Boray said, adding that construction should be completed by 2015. The six-land road will have a width of 35 meters, with two more lanes likely to be added in a later phase.

He said that, because the Can Tho-Phnom Penh expressway will ultimately link Vietnam’s “rice bowl” to Bangkok via Phnom Penh, it will promote socio-economic development in the whole Mekong delta region, as well as in the two cities.

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Fast Food Chain KFC Delays Official Opening
The opening of Cambodia’s first international fast food chain KFC has been delayed until next week, a company official said Tuesday.
The KFC was scheduled to open today with dry runs Monday and Tuesday but ran into construction delays at its Monivong Boulevard location, said Debasish Pattnaik, director of business development, project and investment for the Royal Group, a co-owner of the franchise rights in Cambodia.
Pattnaik said a dry run for employees of the parent companies will begin today. “It’s just to make sure that everything is OK and is run properly,” he said.

Royal Group and its partners have five other KFCs planned for Cambodia,” he said.

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NagaCorp Reports 2007 Most Profitable Year Yet
By Douglas Gillison
and Kay Kimsong
Net gains at Phnom Penh’s only licensed casino skyrocketed in 2007, rising 54 percent over 2006 in the 12-year-old company’s best year to date, NagaCorp, operator of the Naga World casino, announced.
The banner profits, which the company says are partly due to an increase in clientele from around the region, come as industry experts forecast slowing growth for the casino industry nationwide.
NagaCorp’s casino revenues in 2007 rose to $144 million, a 68.6 percent increase over 2006, while net profits rose from $32.6 million to $50.2 million, according to an annual financial statement released Friday, the company’s second since listing on the Hong Kong stock exchange in October 2006.
“We attribute it to our marketing efforts and have had an increase in local business from people with international passports,” Paul Simmons, senior vice president for operations at Naga World, said Tuesday.

The company in 2007 launched its Premium Players Program to attract local foreign passport holders who are permitted to gamble despite a prohibition on casino gambling by Cambodians. They accounted for 81 percent of revenues at the casino’s “public floor tables,” where walk-in gamblers, who are not part of tour groups, can bet.
Such tables also accounted for more than half of 2007 revenues, according to the statement.
The company, which is incorporated in the Cayman Islands, reported tax payments to the Cambodian government of $1.7 million in 2007.
Simmons said that while many other Cambodian casinos depend on cross-border clientele, NagaCorp draws gamblers from China, Malaysia, Singapore and elsewhere.
Mey Vann, director of the Finance Ministry’s financial industry department, said Tuesday that NagaWorld’s monopoly in the capital helped make it profitable.
Under a 1995 agreement, NagaCorp has until 2035 sole rights to operate a casino within 200 km of Phnom Penh with the exceptions of Sihanoukville, the Vietnam border area, as well as Kirirom and Bokor mountains.
Mey Vann also said that to avoid market saturation and attract more gamblers, Cambodia’s rising number of casinos, forecast to generate $20 million in tax revenues this year, should also offer entertainment and shopping.
“Gamblers may get bored if they only come to gamble,” he said.

CPP Senator Phu Kok An, owner of the Golden Crown casinos in Poipet and Kandal province, said NagaWorld is in a different league to the country’s other casinos.
Golden Crown casinos earned between $3 million and $4 million each last year, he said.
Gamblers in Poipet must contend with the frustrations of border crossings, he said, adding that if NagaWorld had competition in the capital, its margins might be thinner.
“If Phnom Penh had two to three casinos, Naga wouldn’t be making so much profit,” he said.
Political commentator Chea Vannath said Tuesday that Cambodia should find a way to ensure that gambling, a religious sin on the order of drink and womanizing, is not thrust in the public’s face.
“In Buddhism, as well as in Cambodian saying, gambling is one of the three deadly sins,” she said.

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$3 Billion Coastal Economic Zone to OpenBy Mean Veasna,

VOA Khmer Original report from Phnom Penh26 February 2008
China's Gainxu Taixu company and Cambodia International Economic Cooperation Investment announced the opening of the Sihanoukville Special Economic Zone Saturday, which could employ as many as 80,000 workers.

The investment was seen as a significant step to reduce widespread unemployment and boost economic growth in Cambodia.
"One hundred percent of the products from this special economic zone will have to be exported," Prime Minister Hun Sen said during an opening ceremony. "I am convinced that the Cambodian economy will rise, finally employing more than 80,000 workers, as China has a lot of investments. And with the export, our economic value is high and increasing." Not all are optimistic Chinese investment will benefit Cambodia in the long run.

"What China cares most about is land, which can be rented or sold to investors from other countries, and such a thing is not going to help our economy," said opposition lawmaker Son Chhay. "Thus, the government has to encourage investment from other countries, with honest investment and that have developed industry, such as Japan or the US."
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S Korean President to visit Cambodia this year
PHNOM PENH, Feb. 26 (Xinhua) -- South Korean President Lee Myung Bak will visit Cambodia sometime this year, at the invitation by Cambodian Prime Minister Hun Sen during their Monday meeting in Seoul, a senior official said here Tuesday.
Lee will visit Cambodia to strengthen the cooperation in the fields of trade, investment, economy and personal relations, Hor Namhong, Cambodian Deputy Prime Minister and Foreign Minister, told a press conference.
Meeting with Cambodian Prime Minister Hun Sen, Lee stressed the need to enhance bilateral ties and asked for greater support of South Korean firms wishing to enter Cambodia's resource and construction markets. Since Lee was former economic advisor for Hun Sen in 2000, the two men have had deep personal relations, Hor said, adding that this year is also the 11th anniversary of the establishment of the diplomatic relations between the two countries.
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February 24, 2008
French Colonial Class Stirs Property Investment in Cambodia
NOTTINGHAM, UK, February 24, 2008 - Available with a guaranteed 10% net return for the first 2 years and an expected 15%-20% capital growth to follow in light of Cambodia's thriving economy, this opportunity is one that's certainly not to be missed.
With just a 1000 reservation fee to secure the property and the 65% 'pay upon satisfactory completion' offer that's attached, the fail-safe purchase of a high demand apartment in the Cambodian capital is a whole lot more affordable and obtainable than you might imagine.

Foreign investment in Cambodia between 2004 and 2005 increased by an astounding 450% and when combined with Cambodia's already strong tourism industry and its expected increase of 20% per year for the coming 5 years, tenancy is surely rewarding as well as being as good as guaranteed.

With Cambodia's future and all investments made in it looking so promising, the financial benefits are clear but, what do you get for your money?There's more to Cambodia than its cascading waterfalls, exotic tropical life and ancient relics from an austere but nonetheless auspicious cultural heritage.

Modern day Cambodia enjoys a lifestyle not too dissimilar to any enjoyed in the developed western world and cinema, nightclubs, wining and dining are commonplace. A handful of annual festivals and celebrations are also held, with anything from ploughing, paying respects to loved ones passed and performing arts being the featured theme, reflecting Cambodia's contrasting and simplistic sense of tradition.

Understandably a popular tourist destination being the location of the auspicious Royal Palace, Phnom Penh is Cambodia's capital city and host to a number of accommodating local amenities that include restaurants, shops and various other attractions, so to hear that the only thing missing from the Cambodian property landscape are the highly sought after 'western' style apartments like the ones offered with this opportunity, is not only good news, it's time sensitive news.

Assertive and shrewd investors out there are sure to take advantage of these remaining apartments and so if this could be for you, you at least owe to yourself to contact David Stanley Redfern Ltd for an obligation-free chat about the varying specifications and services on offer, as well as any other queries or concerns you might have.
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Cambodia’s largest SEZ laid foundation stone in Sihanoukville

During the ground breaking for a Sihanoukville Special Economic Zone (SEZ) Prime Minister Hun Sen said the Sihanoukville project would be the kingdoms largest with investment capital of up to US$3 billion and the creation of employment opportunities for 80,000 by 2015,” Prime Minister Hun Sen said during the groundbreaking for a Sihanoukville SEZ on Saturday.

The Sihanoukville SEZ, a Cambodia-China joint-venture between the Cambodia International Investment Development Group Co, Ltd. and the Jiangsu Taihu Cambodia International Economic Cooperation Investment Co, Ltd from China’s Wuxi, covers more than 30 square km in Bith Traing commune, Sihanoukville.

The SEZ will be the largest in Cambodia and can be a port city rivaling Sihanoukville itself, said the premier, adding that the zone will cut labor migration.

Hun Sen added this year is the 50th anniversary of the establishment of diplomatic ties between Cambodia and China, adding that “the event today is a result of fruitful cooperation between Cambodia and China, and a symbol of new economic ties between the leaders of both countries.”

The premier also said, “China is the country that has built the most roads and bridges in Cambodia,” he added.

Yang Weize, a member of the Chinese Communist Party for the nation’s Jiangsu province said that Cambodia is a close friend and Cambodia-China partnership relations are getting closer and closer.
Zhoh Haijiang, President of the Sihanoukville SEZ, said that the first phase of development will take eight years and cost US$320 million to complete.
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China invest $ 3 billion in Sihanoukville

China plans to invest $ 3 billion in Sihanoukville Special Economic Zone of 100 hectares within 8 years providing 80,000 jobs.

The first two year project plans to build 30 factories and has attracted 6 companies so far, said Mr. Yang Wei Ze, provincial permanent party member of Wuxi province and leader of 79 Chinese investors.
Debate over Customs Tariffs

Pen Siman, director of Cambodia’s Customs and Excise Department, said Wednesday that Cambodia would request that current customs tariffs, planned to be axed by 2010, be extended until 2011. The planned elimination of customs tariffs is a requisite of Asean membership.

Cambodia became an Asean member in 1999 and was allowed to keep its current tax tariffs in place until 2010 in the hope of making Cambodian industry more competitive. Under Asean regulations, Cambodia can ask for the implementation of tax cuts to be delayed. “We know that it is not good if we remove the tax barrier too soon because Asean countries have not reached an agreement yet,” Pen Siman said. “I think that it is good if we can delay the implementation of the tax tariff until 2011.”

Cambodia has had 12 import tax rates in the past 10 years, with the highest at 120 percent although the Kingdom currently has only four, with the highest at 35 %.
Pen Siman said that by 2012 or 2015 Cambodia should have only two import tax rates, the highest standing at just 5%.
“We must be flexible in the change and substitute [import] tax for local taxation, indirect taxation,” he stressed. The Customs and Excise Department collects around US$500 million a year in tax revenues, he added.
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[Malaysia's] NV Multi to build memorial park [cemetery] in Cambodia
22-02-2008By Yantoultra Ngui Yichen The Edge Daily (Malaysia)

KUALA LUMPUR: NV Multi Corporation Bhd’s unit NV Multi Resources Sdn Bhd has teamed up with an individual, Kau Kim Bac, to undertake the development, operation and management of a memorial park in Thloeuk Village, Ang Snoul District in Cambodia.

The bereavement care services provider told Bursa Malaysia yesterday that the joint venture (JV) was in line with its objectives of expanding its business activities to other Asian countries.It said the project would be funded by internal funds and external borrowings.

NV Multi will hold a 49% stake in the JV company.The project, which includes the acquisition of land measuring some 10ha, would involve the construction and eventual sale of a memorial park with columbarium, burial lots, temples, chapel, funeral parlour, crematorium, and leisure park with related infrastructure.
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Samak's Mekong plan could hurt trade ties
Jingjai: Vietnam and Cambodia at risk
Friday February 22, 2008PHUSADEE ARUNMASBangkok Post

Prime Minister Samak Sundaravej's ambitious plan to divert water from the Mekong River to feed the water-starved Northeast faces opposition from business leaders who warn that it might affect future trade and investment expansion in the region.

Jingjai Hanchanlash, chairman of the Greater Mekong Subregion Committee and an executive member of the Thai Chamber of Commerce, strongly disagrees with the plan since the Mekong is an international river.Mr Jingjai, also the director of the trading company Loxley Plc, said

Vietnam and Cambodia would definitely be the hardest hit if the scheme materialised as the two countries are downstream from Thailand. The Mekong starts in China and flows through Burma, Thailand, Cambodia and Vietnam. Water use for the lower basin, comprising Burma, Laos, Thailand, Cambodia and Vietnam, is regulated by the Mekong River Commission (MRC).

The newly appointed premier has floated the idea of building an underground pipeline to divert water from the Mekong River to reservoirs in the northeastern region. Water pipelines would then transport water to farmland.Mr Samak's proposal is not new.

The Irrigation Department had conducted a feasibility study for the Mekong water diversion project years ago, but it never materialised because it carried a high cost and was unlikely to be economically viable.Mr Jingjai said the issue would likely be highlighted at a March 31 meeting between leaders of China, Thailand, Vietnam, Cambodia, Burma and Laos.

He said the leaders would also discuss how to expand trade and investment in the region, particularly in the sectors of communication, tourism, energy, environment, agro-industry and logistics.

The meeting would also focus on the joint development of cultural tourism destinations, including Luang Prabang in Laos, Bagan in Burma, Sukhothai in Thailand, Hue in Vietnam, Lijiang in China and Angkor Wat in Cambodia.

Thailand could play a key role as it has liberalised trade the most among the various countries, he said.Loxley itself has been relatively active in investments in those countries, he added. Loxley Plc, the 69-year-old trading firm better known for its high-technology, communications and construction businesses, has invested in fibre-optic projects in Laos and agro-industry in Vietnam.
Mr Jingjai said the company was also interested in expanding into construction materials and consumer products, notably in Vietnam. Loxley has already had a strong network in Vietnam after exporting shrimp feed and fibre products there for almost five years. Sales hit 300 million baht last year.This year Loxley planned to expand further in Vietnam as it has strong growth potential. Plans are also afoot to set up a shrimp feed manufacturing facility in Vietnam, Mr Jingjai said.Apart from Vietnam, Loxley is also looking to expand into Laos, particularly in the cable TV business. The company is also looking for a sourcing business for chain stores in Burma.
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Friday, February 22, 2008
Vietnam Focuses On Building Infrastructure With Laos, Cambodia [at the Indochinese Triangle]
PHNOM PENH, Feb 21 (Bernama) -- Vietnam will continue developing infrastructure at the Development Triangle region and foster human resources training cooperation with Laos and Cambodia, Minister of Planning and Investment Vo Hong Phuc said.Quoting Vo, the Vietnam news agency (VNA) reported that Vietnam will build a boarding school in Cambodia's eastern province of Mondulkiri and provide vocational training for Cambodian and Laos students.The Development Triangle, which covers 10 border provinces of Cambodia, Laos and Vietnam, is an area with huge potential for the development of hydro-electric power and mining, the cultivation of industrial crops and tourism.During the conference, representatives from the three countries affirmed their determination to make the Development Triangle an area with high economic growth.More efforts should be made to quickly turn the area into an economic hub, linking the three countries based on the production of exports, they said.They agreed to quickly introduce policies with preferential treatment for the Development Triangle and put forth a roadmap for promoting cooperation with China, Japan and the Republic of Korea.They decided to organise their third conference in Laos early next year.

Tuesday, February 19, 2008
VN Kova paint opens $3 million factory in Svay Rieng
Viet Nam-based Kova Paint Group’s new factory in Svayrieng Province, Cambodia. — VNS Photo Ngoc Hai
VN’s Kova paint opens $3m factory in Cambodia19-02-2008VNS (Hanoi)
SVAYRIENG, CAMBODIA — Viet Nam-based Kova Paint Group opened its first manufacturing facility in Cambodia on Saturday after two years of construction.

The paint factory, built on 1ha in Bavet Commune in the border province of Svayrieng’s Chantrea District, can turn out 60 tonnes of paint per day.The factory employs some 100 people, two-thirds of whom are Cambodians.

The president of Kova Paint group, Dr Nguyen Thi Hoe, said the Kova Investment International Cambodia Co, a subsidiary of Kova group, had invested US$3 million in the new factory.The Vietnamese group contributed 70 per cent of the company’s capital and Singaporean companies the remaining 30 per cent.

Hoe also announced the opening of Soma Kova Holding Ltd, a joint venture between Kova group and a Cambodia company that specialises in selling products manufactured at the Kova’s Cambodian factory in local and overseas markets.

Kova’s products, such as stone-like paint, metallic paint, water – based paint for floors, and heat-insulating paint, among others, made in the Cambodian factory would be exported to Malaysia and Cambodia later this year.According to Rajeev Vaidya, managing director of DuPont Titanium Technologies, Asia Pacific, Kova began operation in a small unit in the yard of HCM City’s University of Technology in 1992, and now has eight subsidiaries and five plants today."

In 16 years, the growth of the Kova group under the leadership of Madame Hoe has been phenomenal," said Vaidya.He said Kova and Dupont had enhanced their co-operation over the last 14 years."As Kova has grown, so has the partnership.

There are many things that connect Kova and Dupont," said Vaidya.Speaking at the opening ceremony, Paul Keng, the CEO of Kova International Singapore Pte, a subsidiary of Kova group, said the presence of Kova in Cambodia and Singapore would create a gateway for the Kova group to ASEAN countries as well as global markets.

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Tuesday, February 19, 2008
Hun Sen's reminder: Cambodia needs $500 million to build the railroad line between Cambodia and Vietnam
$500 million needed to link Cambodia to Vietnam?Cambodia's Prime Minister Hun Sen speaks at the ground breaking ceremony of a new railway at Serey Sophon town in Banthey Meachey province, 469km (291 miles) northwest of Phnom Penh, February 18, 2008. Cambodia launched on Monday a $73 million project for the restoration and reconstruction of over 600 km of railway track which will become part of the rail transportation route linking Singapore, Malaysia, Thailand and Vietnam to Kunming, China. REUTERS/Chor Sokunthea
Railway gets a new life18 Feb 2008By Ky SoklimCambodge SoirTranslated from French by Luc Sâr
On Monday morning, the authorities have officially inaugurated the restoration site for a railroad line.
The restoration will involve 552 km of railway, and will cost $73 million. The Asian Development Bank (ADB), OPEC, Malaysia, and the Cambodian government will finance this ambitious project.Seriously damaged by the civil war, railways in the kingdom will find a new youth.

On Monday 18 February, in the province of Banteay Meanchey, the government has officially proceeded to the launch of the restoration work for a portion of the network, covering a distance of 552 km. These railways will connect Phnom Penh to Poipet (386 km) and Phnom Penh to Sihanoukville (266 km).

The restoration of the Phnom Penh-Sihanoukville line will take 23 months, whereas the Phnom Penh-Poipet line will take 22 months.The total cost will be $73 million. The Cambodian government will finance $15.2 million, the ADB $42 million, OPEC $13 million, and Malaysia $2.8 million.

Haruhiko Kuroda, ADB president, is satisfied about this project: “This even shows the importance of the government policy for the return to prosperity in the kingdom.”The Australian company Toll Holding obtained a 32-year concession for the railway network in Cambodia [KI-Media: Could this explain the presence of Kith Meng at the inauguration?].

A French-Belgium-Thai consortium will take care of the restoration project. The authorities hope that these improvements will lead to development of the transport of goods.

“The railways play an important role in the trade between our country and Thailand. They are of main importance as part of the trans-border railroad system,” Sun Chanthol, the minister of public works and transport, explained.

This line will link, in 2015, Singapore to Kunming in China, crossing Thailand, Cambodia, Vietnam, Burma and Laos. Hun Sen took care to remind during the inauguration that: “$500 million is needed to build the railway line between Cambodia and Vietnam.”

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Monday, February 18, 2008
Cambodia To Form Business Dispute Court By 2009
PHNOM PENH, Feb 18 (Bernama) -- The Cambodian Ministry of Commerce has finalised a 40-article draft law creating an independent commercial court and arbitration body, said China's Xinhua news agency quoting a local media report Monday.

Mao Thora, Under-secretary of State for the Commerce Ministry, has said that it is hoped that the specialized court for business disputes will be formed by 2009, the Cambodia Daily newspaper said.

Many are hoping that a commercial court would improve Cambodia's capacity to fairly judge disputes in the business sector, and thus move the country further on the road toward a sound market economy, it said.

In a country where the justice system is weak, Mao Thora said the specialized commercial court is needed to ensure investor confidence."Investors do not want to filed complaints about business in the civil court.

They need a specific court," he was quoted as saying.The new court could reduce the number of cases clogging provincial courts, impacting the entire justice system, he said.

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Monday, February 18, 2008
Cambodia begins restoration of decades-old railway
PHNOM PENH, Feb. 18-(Kyodo), Cambodia began Monday restoring a 652-kilometer stretch of its decades-old railway system to enhance domestic and international trade, reduce transport costs and ease road traffic.The $73 million rehabilitation project is expected to be completed in 23 months, according to Sun Chanthol, Cambodia's minister of Public Works and Transportation.Of the outlay, the Asian Development Bank has provided $42 million in concessional loans, $13 million came from the Organization of Petroleum Exporting Countries as a grant, $2.8 million from Malaysia for iron materials and $15.2 million from the Cambodian government, he said.

The launch was presided over by Prime Minister Hun Sen and Haruhiko Kuroda, president of the ADB."This is one of the last steps in the creation of a regional railway that will stretch from Singapore to Beijing," Kuroda said at the inauguration ceremony in Sisophon near Cambodia's border with Thailand.

"Soon, trains will be running from Singapore to Sihanoukville."The project will rehabilitate two existing railways, 386 km from Phnom Penh to Poipet on the border with Thailand and another 266 km from Phnom Penh to Sihanoukville on the southwest coast.

The two routes were built in 1931 and 1960, respectively.Railway services in Cambodia are now intermittent and unofficial trolleys with bamboo floors operate along portions of the railway.The new project will rehabilitate 604 km of track and reconstruct another 48 km near the Thai border that was destroyed during wartime.

A statement by the ADB said in addition to supporting the repair of tracks and bridges, the bank is providing technical assistance to Cambodia to restructure the railway by appointing an international railway firm to operate, maintain and invest in the railway over the next 30 years.

"Investing in rail upgrade, maintenance, and better service delivery will help revitalize Cambodia's railways, enhance internal commerce and international trade, reduce transport costs, and ease road traffic," the ADB said.

The railway project is a vital component of the Greater Mekong Subregion's southern corridor that links Thailand, Cambodia and Vietnam.

Sun Chanthol said that once rehabilitation is completed, trains will operate with a speed of at least 50 km per hour.Currently, Cambodian trains operate at speeds as low as 15 kmph.

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Monday, February 18, 2008
[Malaysia's] SAAG eyes maiden O&G deal in Cambodia
18-02-2008By Chong Jin HunThe Edge Daily (Malaysia)
PETALING JAYA: SAAG Consolidated (M) Bhd, an oil and gas (O&G) services firm, hopes to win its maiden O&G deal in Cambodia in two years, as the group attempts to capitalise on its existing power plant operations and an emerging petroleum sector in the fast-growing Indochina nation.

“We hope to secure our first deal in two to three years,” SAAG group chief executive officer Anand Subramaniam told The Edge Financial Daily. “Our power plants give us a foothold in Cambodia to tap the nation’s emerging oil and gas sector,” he said.

Petaling Jaya-based SAAG has existing foreign oil and gas projects in Brunei, Thailand and India, according to its website.

In Cambodia, the company has three power plants with a combined capacity of 20 megawatts. The first generator, capable of 7.5MW, was due to start running in Nov 2007, SAAG said in its filings to Bursa Malaysia.

SAAG’s planned O&G undertakings in Cambodia comes at a time when that nation’s economy is projected to expand about 8% this year, based on the International Monetary Fund’s (IMF) estimates.

IMF expects Cambodia’s annual income from oil, with a potential 700 million barrels of petroleum reserves, to rise to US$1.7 billion (RM5.56 billion) by 2021 from US$174 million in 2011.The oil income forecast is based on on-going exploration off the coast of southern Cambodia by US-based Chevron Corp.

To boost its capital base, SAAG had last month proposed a private placement of up to a tenth of its enlarged issued and paid-up share capital to raise up to RM35.5 million to fund its working capital needs.“It’s for the expansion of our ongoing and new oil and gas projects,” Anand said.

SAAG’s net profit in the third quarter to Sept 30, 2007 rose more than fivefold to RM7.8 million while revenue grew 53% to RM97.7 million.

Cumulative net profit for the nine-month period more than tripled to RM22.8 million while turnover more than doubled to RM350.1 million.The company told the exchange in June 2007 it had an estimated unbilled RM700 million order book which could last till 2009.

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Monday, February 18, 2008
ADB to provide Cambodia with 42 mln usd loan to upgrade rail network
Mon, Feb 18 2008
LONDON (Thomson Financial) - The Asian Development Bank (ADB) and the government of Cambodia have launched a project to restore rail traffic between Thailand and Cambodia by 2010, by rehabilitating around 600 kilometers of track and reconstructing another 48 km near the Thai border.

The ADB will prive a 42 mln usd concessional loan for the project -- a vital component of the Greater Mekong Subregion's southern corridor which links Thailand, Cambodia and VietNam -- from its Asian Development Fund.In addition, the ADB will provide technical assistance to Cambodia to restructure the railway by appointing an international railway operator to operate, maintain and invest in the railway over the next 30 years.

"This is one of the last steps in the creation of a regional railway that will stretch from Singapore to Beijing," said ADB President Haruhiko Kuroda.

Railway services in Cambodia are presently intermittent, and unofficial trolleys with bamboo floors operate along portions of the railway.Investing in rail upgrade, maintenance, and better service delivery will help revitalize Cambodia's railways, enhance internal commerce and international trade, reduce transport costs, and ease road traffic, the international agency stated. ----------------

Vietnam, Laos and Cambodia meet on development triangle

February 17, 2008 VNA (Hanoi)
Strong pledges were made at a two-day meeting on trade and investment promotion into the “Development Triangle” comprising 10 border provinces of Vietnam, Laos and Cambodia concluded in Sihanoukville, Cambodia, on February 17.

Pledges showed the three countries’ resolve to boost investment into the region, strengthen internal link and put into full use potential and available resources of each and every province for economic development, especially production of commodities.

“No stone will be left unturned so as to reach the goal for high and sustainable economic growth ratified by the Prime Ministers of the three countries in Vientiane , Laos , on November 28, 2004,” they said in an agreement.

The Vietnamese head delegate, Deputy Minister of Planning and Investment Nguyen Bich Dat, said the country has issued open policies, offered numerous stimuli and upgraded infrastructure facilities to boost investment from the three countries as well as other countries into the Vietnamese provinces lying in the “Development Triangle.”

“The Vietnamese Government has also taken measures to encourage domestic investors to invest in Lao and Cambodian provinces lying in the Development Triangle,” he added.The meeting, the second of its kind to date, was marked with a speech by Senior Minister and Trade Minister of Cambodia Cham Prasith.

He emphasised the important role played by the “Development Triangle of Cambodia , Laos and Vietnam ” in the socio-economic development of each province in the region and the common future of the three countries as well.

He said the conference would be a good opportunity for businesses and authorities from the three countries’ provinces sharing the borderline to promote trade and investment so as to turn the “Development Triangle” into a region of socio-economically sustainable development.

The meeting drew in over 100 businesses, plus authorities, from the three countries who shared experiences and informed each other with their own countries’ policies and stimuli for foreign investment.

The region has been highly evaluated for its great potential in hydro-power industry, mining, industrial crops growing and processing, and tourism.

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Monday, February 18, 2008
Cambodia To Start Restoring Decades-Old Railway System
Phnom Penh, Feb. 16 (Xinhua) - Cambodia will hold a ceremony on Monday in Serey Sophon, Banteay Meanchey province, next to the border with Thailand, to restore its decades-old national railway system, an official said here on Saturday.

Budget for the rehabilitation is from grant aid and loan package of the Asia Development Bank (ADB), said Ou Pheak Von Mony, director general of the Royal Cambodian Railway Company.

Upon completion, the railway will become part of the Asia network which links Singapore and China, national television network TVK quoted the official as saying.

The ceremony will be presided over by Prime Minister Hun Sen and visiting ADB President Haruhiko Kuroda, said an ADB press release.

The total cost stands at 73 million US dollars, with 42 million US dollars of loan from ADB, 13 million US dollars of grant aid from the Organization of Petroleum Exporting Countries ( OPEC), 15.2 million US dollars from the Cambodian government, and 2.8 million US dollars of grant aid for iron materials from Malaysia, it said.The project aims to support Cambodia's economic development and strengthen sub-regional integration by enabling cost-effective and efficient railway transport within Cambodia and between Cambodia and Thailand, Malaysia, and Singapore, it said.

Access to efficient railway services would substantially improve the efficiency of Cambodia's transport system by enabling efficient and safe railway transport for heavy, bulky, and hazardous cargo, such as cement, containers, and fuel, which are currently carried by more expensive and less safe road haulage, it added.

The 264-km Phnom Penh-Sihanoukville route and the 386-km Phnom Penh-Poipet route were respectively built in 1960 and 1931.

They are the only two railways of the kingdom, currently providing transportation for trains at a speed as low as 15 km an hour.The Asia railway network is expected to run 5,500 km, linking Singapore and China and including Malaysia, Thailand, Cambodia and Vietnam en route.
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Monday, February 18, 2008
DEVELOPMENT-CAMBODIA: Urban-Rural Divide Set To Widen [-21% of Cambodian are "food deprived"]
By Marwaan Macan-Markar
BANGKOK, Feb 18 (IPS) - Phnom Penh’s skyline is set for a dramatic change, now that South Korean companies have confirmed plans to build two skyscrapers in the Cambodian capital.

The 42-storey Gold Tower is scheduled to be completed by 2011, while a 53-storey structure will be ready the following year.

Such a transformation will invariably serve as visual symbols of the direction this nation has taken on the road to development. It will add to the impressive numbers Cambodia’s has recorded over the past two years, with the economy growing by 11 percent in 2006 and nine percent in 2007.

The likelihood of more tall towers wrapped in glass following these two appears possible. The South-east Asian country ‘’received more than 1,500 requests for construction projects worth 1.5 billion US dollars in the first nine months of 2007,’’ the ‘Phnom Penh Post’ newspaper reported recently, quoting Urban Planning and Construction Minister Im Chhum.

Yet such a picture only confirms why Cambodia is increasingly becoming a country with deep economic divisions, with the economic boom concentrated in only three urban centres -- Phnom Penh, Siem Reap and Sihanoukville -- at the expense of its rural areas, where 80 percent of the country’s 14 million people live.A new study by a U.N. agency lays bare the extent of food insecurity, high malnutrition and the ‘’food poor’’ in one of this region’s poorest countries still struggling to put behind it the nightmare of a brutal war and oppression that lasted over two decades.

‘’The mix of food products available in Cambodia should normally be adequate for a balanced diet, but productive capacity or purchasing power of many households is limited,’’ states the World Food Programme’s (WFP) ‘Food Security Atlas’.Currently, close to 35 percent of Cambodians, or some 4.6 million people, live below the poverty line of one U.S. dollar a day. Of that, 90 percent come from rural areas, states findings by the WFP.

‘’In 2005, over 630,000, or 37 percent of Cambodian children aged under five years were suffering chronic protein-energy malnutrition ( or stunting),’’ adds the WFP, quoting figures from the Cambodian Demographic and Health Survey Report.

Cambodian’s classified as ‘’food deprived’’ amount to 21 percent of the population, close to three million people, states the WFP, drawing on the 2007 Food Insecurity Assessment, conducted by, among others, the U.N. Food and Agriculture Organisation.

The ‘’food poor’’ are those who eat less than the minimum diet to supply basic energy requirements.The appearance of Siem Reap among the 10 provinces described as ‘’hot spots’’ due to ‘’high malnutrition rates’’ by the WFP in its mid-February study illustrates the two faces of Cambodia’s development story.

For years, the city of Siem Reap has seen rapid growth, with many plush hotels coming up, to cater to the planeloads of tourists flying into the city.

Its main draw: the majestic Angkor Wat and the surrounding temples built during the 14th century and before.Yet the tourist dollars that have been pouring in have not trickled beyond the city’s borders. ‘’Siem Reap is one of the poorest provinces in the country,’’ Thomas Keusters, head of WFP’s Cambodia office, told IPS by phone from Phnom Penh. ‘’Tourism is only focused in the city.

But only 15 miles away from the city centre, people are very poor.’’The Cambodians left out from the city’s growth are those with little education in the province who cannot find jobs in the hotels, adds Keusters. ‘’The people who have found employment are those who can read and write and can help the tourism sector.’’

Cambodia’s weak education system beyond the main urban centres was highlighted Thursday in a report on education trends in the region released by the United Nations Education, Scientific and Cultural Organisation (UNESCO). It has one of the ‘’highest repetition rates’’ of school children in the first grade, at 24 percent, revealed the ‘2008 Education for All Global Monitoring Report’.

In addition, Cambodia and Laos ‘’have the lowest early childhood care and education coverage in South-east Asia, with only nine percent and eight percent of children aged three to five enrolled in pre-primary school, respectively,’’ added the UNESCO study.Even the World Bank admits that despite Cambodia’s success on some fronts -- such as reducing the number of people living in poverty from 47 percent of the population in 1994 to 35 percent a decade later -- inequality is a problem.

During the past 10 years, the consumption power of the country’s richest 20 percent grew by 45 percent, as against an only eight percent rise in the consumption power of the poorest 20 percent, the Bank noted in its 2007 study of equity in Cambodia.This economic divide exposes what ‘’growth rates do not show, about who is benefiting and who are the losers,’’ says Shalmali Guttal, a senior researcher at Focus on the Global South, a Bangkok-based think tank.

‘’The ordinary people in the rural and urban areas have been losing for years. There is a systemic problem in the distribution of resources.’’The prospect of immediate change for the economically marginalised appears remote, she explained in an interview, because of the poor being deprived or denied access to land in the rural areas or even to fish in the country’s largest lake.

‘’Fishing concessions have been sold to private companies and the local fishing communities have a little catch, depriving them of income and their main source of protein.’’Amnesty International (AI) is the latest human rights group to raise the alarm about the harsh measures used by the administration of Prime Minister Hun Sen to support a trend of forced evictions in the urban and rural areas to acquire land for commercial ventures and ‘’development’’ projects.

It warned that 150,000 Cambodians are in danger of losing their homes and lands to projects that cater to the whims of the country’s wealthiest.Vireak and Sopheap are just two people from a village of subsistence farmers near the coastal town of Sihanoukville who were affected last April, said the London-based rights lobby in a mid-February report.

Most of the village ‘’was burned to the ground by law enforcement and military officers, forcibly evicting more than 100 families,’’ states AI.‘’The Cambodian government has adopted policies, supported by international donors, aimed at developing and improving the lives of the poor.

But such policies are in stark contrast to the realities experienced by Vireak, Sopheap and other victims of forced evictions, who sink deeper into poverty through the actions of the authorities,’’ added AI.
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Monday, February 18, 2008
Phnom Penh hits the heights
February 18, 2008Achara DeboonmeThe Nation (Thailand)
In the market for a million-dollar penthouse suite?
Thinking Kuala Lumpur, Bangkok or Singapore? Try Phnom Penh.South Korean-funded Yon Woo Cambodia announced in January the plan to offer Gold Tower 42, skyscraper apartments from about US$500,000 (Bt16.7 billion) to $1.6 million, and the development - scheduled for final completion in 2011 - will become the tallest in the city.

The Cambodian capital's rocketing real-estate prices have encouraged construction to reach for the skies, government spokesman Khieu Kanharith told Deutsche Presse-Agentur."Five years ago another company began planning a 32-storey tower, which has yet to be built, on the outskirts of the capital, and we expect many more such projects," Kanharith said.

David Simister, chairman of property consultant CB Richard Ellis Thailand, agreed. He said that post-crisis Phnom Penh was now as attractive a property development destination as Ho Chi Minh City."Rules are quite clear on the back of a strong government.

Between Thailand and Vietnam, Cambodia is quite liberal," Simister explained.A condominium in Phnom Penh now sells for $2,000 per square metre, approximately the same as the Bt75,000 which is quoted for condominiums along Sukhumvit Road.

According to Simister, demand is also strong as Cambodians are repatriating overseas earnings while the number of foreign businessmen in the city is growing.

The property market there is set to expand further with the growing tourism industry, following the expansion of the airport and the marketing of new tourist destinations.

Simister said that due to contacts for consulting and marketing services for properties in Phnom Penh his company would later this year open an office there, in the wake of others in Danang and Ho Chi Minh City.

He noted that foreign investors were now looking to do business in the city, thanks to the relaxed market requirements. Phnom Penh's maximum lease for foreigners is 99 years, against a maximum 70 years in Vietnam and 30 years in Thailand.

"In Thailand, the ownership issue is not helpful for foreigners. Hopefully the new government will look into that," he said.Kim Tae Gon, general manager of Yon Woo Cambodia, told DPA: "The investment climate is good. Cambodia is eager for development.

We have sold 40 per cent of our apartments in Gold Tower 42 off the plan already, and the majority of buyers are Cambodians, although Koreans, Chinese and British have also bought," he said.

Cambodia's building industry is booming on the back of double-digit growth and hopes that revenue - and businesses - will begin rolling in on the back of the expected oil and mineral revenues due to be tapped within the next two to five years.

A stock market is also in the offing within a year.
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Vietnam, Cambodia and Laos talk to boost trade
February 16, 2008 VNA (Hanoi)
The second conference to boost investment and trade in the Cambodia-Laos-Vietnam development triangle opened in Sihanouk Ville, Cambodia on February 16.

During the two-day conference, representatives from the three countries will review the implementation of the projects to develop the area, which were agreed at the first conference in Vietnam, and discuss measures to encourage investors of the three countries and foreign companies to pour capital into the triangle.

The Vietnamese delegation to the conference was headed by Deputy Minister of the Planning and Investment Nguyen Bich Dat.

The delegation comprised representatives from the ministries of trade and industry; agriculture and rural development; finance; labour, war invalids and social affairs, public security, Gia Lai, Kon Tum and Dak Nong provinces and relevant agencies.
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The Casino industry in Cambodia will bring in only a paltry sum of $20 million in tax in 2008
Casino industry to provide 20 mln USD of tax for Cambodia in 2008
14/2/2008
ShanghaiDaily.com
The burgeoning casino industry is expected to provide US$20 million of tax revenues for the Cambodian government in 2008, said national English-Khmer newspaper the Cambodian Daily today.
It contributed tax revenues of US$18 million in 2007, US$16 million in 2006 and US$12 million in 2005, the paper quoted statistics from the Ministry of Economics and Finance as saying.

The government calculates tax bills based on how many card tables and slot machines each establishment has, it said, adding that five new casinos opened in 2007, bring the total number to 29.
Currently, the largest casino concentrations are along the national borders, with 15 on the Thai frontier and 10 on the Vietnamese, as well as three in Sihanoukville and on in Phnom Penh.
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Pilot project examines feasibility of rubber plantations in sandy soil

In a pilot project scheduled to end in 2012, the government-controlled Peam Chaing rubber Plantation Company (PCRPC) will plant around 4,000 hectares of rubber in sandy soil, usually thought to be unsuitable for rubber cultivation.

Men Siphan, director of PCRPC, said the company will add 500 hectares of rubber trees a year to its plantations which will cover a total of 3,960 hectares of government land.

“We want people [in Svay Rieng] to know how to grow rubber in addition to rice because [rubber] has a high potential to reduce economic migration,” said Siphan, “Currently the company is preparing rubber seedling beds on about 400 hectares.”

PCRPC, a company with decades of rubber cultivation experience, already has some 3,000 hectares of rubber in Preah Theat commune, Kompong Cham province. Due to a shortage of red soil, the most suitable for rubber cultivation, the firm decided to plant in Svay Rieng's sandy soil as a test for the feasibility of rubber cultivation under such conditions.

Although rubber usually grows best in red soil, it is possible to grow rubber trees in other types of soil, Men Siphan claimed.
"We hope the rubber yield will be about 2 tons per hectare on the new land-- [the same] as it is on red soil, " said Men Siphan.

Ly Phalla, director general of the General Directorate of Rubber Plantations, said he had no information about Peam Chaing's project but said that he would support such cultivation.

"The crop does not require a specific type of soil; what is important is cultivation and breeding. The government plans to expand rubber plantations to total around 150,000 hectares by 2016 but this may reach up to 180,000 hectares... thanks to increases in price and good market [demand] for rubber," Ly Phalla said.

Cambodia has a lot of uncultivated red soil land with great potential for rubber, especially in the northeastern region.

Although Kompong Cham and Rattanakiri provinces still have the most potential, rubber cultivation has been introduced to Preah Vihear, Kompong Thom, Siem Reap, Battambang, Pailin, and MOndulkiri since 2000.

There are currently 80,000 hectares of private and state rubber plantations in Cambodia, according to a recent report by the directorate.

Men Siphan said cultivation on sandy soil would increase the amount of land available for rubber cultivation, providing employment and income for local residents.

"We hope provinces that now only have rice crops will grow a great deal of rubber in the future," said Men Siphan.

Cheang Orm, Svay Rieng's provincial governor, said rubber cultivation may end the widespread economic migration common in the provice.

"We welcome investment [in rubber] but the problem is that the province is short of land since the majority of land is in private hands already,"he said. "Currently we have only 6,000 hectares available."
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Battambang rice flooding out of the Nation Unhindered

An official from the northwestern province of Battambang has estimated that over 5,000 tons of unhusked rice will be unofficially exported from the province to neighboring countries this year, causing a loss of both revenue and prestige for Cambodia’s most famous rice-growing region.

In 2006-2007 around 2,000 tons of unprocessed rice from Battambang province was bought up by Thai and Vietnamese merchants for milling in their own nations, said Cheam Chansophorn, the director of Battambang’s Agriculture, Forestry and Fisheries Department.

He added that this year he believes the figure will rise to 5,000.

Ku Puy, present of the local Chamber of Commerce, said the large scale unofficial export of rice is damaging local industry and costing local jobs.

“I think the rice business now is very anarchic because there is no effective management. We must strengthen it this year,” he said.

The government’s Rural Development bank has provided rice mills across the nation with loans of US$6 million to buy unhusked rice, including US$1.3 million for Battambang province.

He said the government should grant loans to establish 300 rice mill associations in the country to enable Cambodian rice to be processed here and remain as Cambodian rice.
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Kratie: Only 200 of 70,000 ha concession Planted With Rubber Trees
“Kratie: Ten companies had been granted authorization to invest on more than 70,000 hectares of economic land concessions in Kratie province.

Until now, only one company has planted rubber trees on 200 hectares of land. The others have just leveled the ground and cut down trees.

“So far, the contracts of two companies in Svay Chreah commune, Snuol, and of a Chinese company in Sambo were terminated or temporarily suspended.

“The director of the Kratie Provincial Department of Agriculture continued to say that among all companies only Phou Rieng, that was granted nearly 10,000 hectares in Snuol, has planted rubber trees on more than 200 hectares of land.

The company will continue to plant rubber trees on additional 300 hectares of land in 2008 as projected according to the company’s master plan.
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Ministries Draft Law on Farmers’ Plant Patents

The Ministries of Agriculture and Industry met Monday to discuss a draft law aimed at protecting new breeds of plants and the farmers who cultivate them.

The draft, which includes nine chapters and 83 articles, essentially provides basic patent protection to farmers who breed a new kind of plant.

The new draft law was approved by the Council of Ministers on Jan 18, Industry Ministry Secretary of State Ith Praing said, adding that the draft is now subject to approval by the National Assembly.

According to the draft, which is the first of its kind in Cambodia, the farmer has exclusive rights to any new plant for 20 to 25 years, depending on the type of plants.

Kem Sokha opposes draft law allowing foreigners to buy land in Cambodia [-Khieu Kanharith: No such draft law]
http://www.rfa.org/khmer/images/2007/04/11/kemsokha150a.jpg

Monday, February 11, 2008HRP leader Kem Sokha announced his firm opposition to reports published by a number of newspapers claiming that the government is currently preparing a draft law allowing foreigners to buy and own lands.

Kem Sokha said that this action is a serious danger to Cambodia’s future.

In a declaration made during a party office opening in Siem Reap on Sunday, Kem Sokha said that if there is a law allowing foreigners to have the right to buy and own lands, then foreigners will use their money to buy lands from Cambodians, and the latter will lose their lands and become ethnic minorities just like the Cham people and the Khmer Kampuchea Krom people.

Kem Sokha said that if his party will win the upcoming 2008 election, he will cancel such law. Khieu Kanharith, government spokesman, criticized Kem Sokha’s comment, saying that his opposition is baseless and without clear proofs. Khieu Kanharith told RFA that the government did not draft any law to allow foreigners to buy and own lands at all.
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Vietnam-Cambodia investment and trade set to rise
10/02/2008 Vietnam’s investment in Cambodia has steadily increased to 115 million USD in 2007 include construction of hydropower plants, mining and telecommunications, with projects valued at hundreds millions US dollars by well-known Vietnamese businesses such as the Army Telecommunications Corporation (Viettel), the Vietnam Oil and Gas Group (PetroVietnam), the Vietnam National Coal Mineral Industries Group, and the Electricity of Vietnam (EVN).

Vietnam exported close to 1.1 billion USD worth of commodities, mainly textile facilities, plastics, home alliance, vegetables and fruits, confectionaries, cigarettes and detergent to Cambodia last year.

It imported from the neighbour more than 180 million USD worth of farm produce, furniture, rubber and salt.Cambodia’s Ministry of Trade said cross-border trade with Vietnam is expected to hit 2.5 billion USD by 2010.
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Thai to invest in Electricity
Saturday February 09, 2008
Ratchaburi Electricity Generating Holding Plc (RATCH) on Jan 23 said that it had signed an agreement with Italian-Thai Power Co, a 99.99%-owned subsidiary of Italian-Thai Development Plc (ITD) to study an investment in the 3,660-MW Koh Kong power project in Koh Kong province, Cambodia.

Under the initial shareholding structure that has been tentatively agreed, Electricity Generating Plc and Ratchaburi will hold 70% and Italian-Thai Power will hold the balance.Ratchaburi is currently 45% owned by the Electricity Generating Authority of Thailand.

Other shareholders include Banpu Plc (15%), the Government Savings Bank (2.6%) and the Social Security Office (4.89%).

Ratchaburi has taken a lead in becoming a regional power source, with its 40% stake in the Laos-based Hongsa lignite power project, an 1,800-MW power plant; 25% in Nam Theun 2, and a possible stake in the upcoming project in Burma, the Tasang Dam.

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Chinese company to construct hydro-electric station in Cambodia
PHNOM PENH, Feb. 5 (Xinhua) -- Three BOT (build, operate and transfer) agreements were signed here on Wednesday for a Chinese company to build and develop the Kirirom III Hydro-electric Station in Koh Kong to meet the power demand from Koh Kong, Kampong Speu and Phnom Penh.

A press release from the Cambodian side said that the project won approval from both governments after more than two years of field research and expert study.

The project is located in Koh Kong province in southwest Cambodia, 159 km away from Phnom Penh, the capital of Cambodia, and 120 km away from Sihanoukville, the major port city of Cambodia.

The 47-million-dollar power plant will have an installed capacity of 18 megawatts. The plant will be finished in three years and have 30 years of granted on cession.
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3P Networks Update on Cambodia Telecom Frequency Negotiations
Feb 06, 2008 -- 3P Networks Inc. is currently in the final stage of negotiations with the Royal Cambodian Government to acquire significant frequency spectrum in order to implement unique cost effective telecommunication solutions in Cambodia and in neighboring countries.

The Company's strategy is to rapidly build value via credible cash flows from an established and continually expanding subscriber base in areas where valuations are considerably below standard industry benchmarks.

In the briefest of terms, the acquisition of the available telecommunications concession will meet the necessary return-on-investment criteria from the perspective of the inherent risks in creating business opportunities in the developing world.
http://www.3pnetworksinc.com/.
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All Eyes on Japanese to boost economy
Cambodia is expected to see a possible threefold increase in investment growth this year, largely due to the arrival of Japanese investors en masse, said Commerce Minister Cham Prasidh.

“We hope there will be about 50 Japanese firms investing in Cambodia’s special economic zones, particularly in Phnom Penh and Sihanoukville,” Cham Prasidh said.

In 2007, Cambodia received foreign investment of approximately US$2.8 billion, according to a Ministry of Commerce report.

At present Japan ranks ninth among the countries investing in Cambodia, with a total investment of about US$80 million. Most of this is in hotels, tourism, and motorcycle assembly plants.

China and South Korea rank first and second respectively.
Commerce Minister Says Trade Negotiators Needed

The burden of ongoing trade talks requires Cambodia to continue growing its corps of capable negotiators, Commerce Minister Cham Prasidh told reporters Tuesday.

Conference organizers said officials from countries including Indonesia and Vietnam were to learn from Cambodia’s experiences under the Train For Trade program, which has so far trained as many as 650 Cambodian officials, businessmen and academics in matter such as investment promotion and trade negotiation.

Under the program, run by the UN Conference on Trade and Development and scheduled to continue until 2009, Cambodia had been a “model student,” enacting reforms on customs data and the management of its debt portfolio, UNCTAD Secretary General Supachai Panitchpakdi said.
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Phnom Penh Special Zone
A muddy stretch of land alongside the newly resurfaced National Highway 4, the Phnom Penh Special Economic Zone (PPSEZ) is at present distinctly underwhelming.

Concentrating factories in one area makes them easier to control. Measures such as pollution containment and waste water treatment are shared, as are service expenses such as security as well as all legal permissions from government departments.

The land for the PPSEZ belongs to Attwood Group, and the development is a joint venture with a Japanese developer, Zephyr.

Lim Chhiv Ho, Chairman of the PPSEZ, said at the signing ceremony Zephyr will provide 49% of the investment capital, and PPSEZ will have a 51% controlling stake. Together they have already built a gate, a drainage system, telephone lines, and factory plots.

"PPSEZ is on track to become the second fully-operational special economic zone in Cambodia after the Bavet Zone on the Vietnamese border, which already has factories operating," she said. "I think that garment factories will come first, followed by electronics companies, food processing, and then perhaps food packing."

The site’s greatest asset is its position. Only 15 km west of Phnom Penh and 8km west of Phnom Penh International Airport, the area is just off National Highway 4, the nation’s main artery. The highway carries traffic from Sihanoukville, Cambodia’s only deep sea port, 207 km away. It is also the only link to the fertile north-western provinces.

"Our first task is to develop the zone with infrastructure, so investors are provided with all necessary services. We call it the One Stop Service," said Yap. "We offer watertight ownership of land and buildings. With this we can ensure the legal right to transfer income to overseas countries.

"The overall size of the zone is 350 ha, so we must develop it step by step. We will begin with accommodation and factories in the first 141 hectares. These lots will be commercial and residential, with space for infrastructure, such as the dry port.

The second stage involves the construction of 90ha of factories and utilities, and the third stage will be more factories and residential lots in the remaining 130ha."
There are already 12 special economic zones in Cambodia, with others planned.
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More of Sihanoukville’s public beaches sold off

Sihanoukville’s public beach area just shrunk a little more after a US$ 10 million land deal giving exclusive rights to part of the beach to a London-listed casino developer Queenco Leisure International (QLI).

QLI purchased nine hectares of land located along beachfront near the area of Ream National Park and the Sihanoukville airport in February.

QLI, which is also lited in Tel Aviv, Israel, describes itself as an “emerging markets casino developer and operator” with casinos in Greece and Romania, and more casinos planned for Serbia and Bulgaria. In 2007 the company is also reported to have bought another 48 hectares of land in Sihanoukville and includes the exclusive rights for a stretch of beach in front of the site.

“The company aims to develop a destination beachfront resort around the casino and will include hotels, conference centers and other related attractions.”

Within the last few years more than 20 coastal beaches and islands southwest of Kampot and Sihanoukville have been leased to local and foreign companies for tourist developments.

Cambodia achieves over $2 bln of investment in 2007
PHNOM PENH, Feb. 5 -- Cambodia scored 2.808 billion U.S. dollars of investment in 2007, Cambodian Commerce Minister Cham Prasidh said here on Tuesday.

"The number of investment projects in 2007 was more than that in 2006, but the investment volume went lower," he said on the sideline of the United Nations Conference on Trade and Development (UNCTAD).

Mega investment projects were absent in 2007, which led to the decrease of investment volume over 2006, he said, adding that however the government has been making efforts for months to finalize several jumbo projects currently under negotiations.

In 2007, for local investors, average single project had little investment but the total number of such projects was big, he said.

The local investors' focus has diverted from resort and hotel construction to agricultural and industrial projects as a result of the government's ongoing reform policy, he said.

In the past decade, the economic growth of Cambodia has depended on four pillar industries, namely garment, tourism, infrastructure construction and agriculture.
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Chinese foreign minister ends gift-laden Cambodia visit
Phnom Penh - Chinese Foreign Minister Yang Jiechi pledged 55-million dollars for road and bridge construction in the northeast, and millions more in soft loans to develop the country's struggling power grid, according to government spokesmen.

China has been expanding its aid in the region and gave $600 million in aid to Cambodia in 2007.“In previous years, China lent us $300 million with a low interest rate for infrastructure construction,” Hor Namhong said.

“With that $300 million, we have had two bridges and four national roads constructed.”China also pledged tax-free imports for 400 Cambodian products into China as well as negotiating to increase Chinese tourism to the country. Tourism is Cambodia's second largest industry and China is becoming one its major sources behind South Korea and Japan.
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Vietnamese gamble on Cambodian town Border town
Feb. 2, 2008
Seven years ago, Bavet, an hour by car from Ho Chi Minh City, was surrounded by rice paddies. But it now has seven casinos, receives Vietnamese visitors of more than 90 percent of the 7,000 each day.

Food and drink is free, while complimentary accommodation is available next door for those placing a certain amount in bets.The average monthly income in Vietnam is about 150 dollars, though some of the guests clearly earn far more than this.

The 32-year-old Vietnamese assistant manager of the Le Macau casino, the oldest casino in the area, said: "Betting tens of thousands of dollars is nothing special here.

I know one customer who spent 2 million dollars."As there is no private land ownership in Vietnam, trade in land-use rights is roaring, creating a housing bubble in the country.

The assessed value of the land per square meter in front of the Ben Thanh Market, in the center of Ho Chi Minh City, was 200,000 dollars in 2006--more than the 19 million yen the same-sized piece of land would cost in Tokyo's ritzy Ginza 2-chome.
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Vietnam, Cambodia to upgrade border gate [in Samrong, Svay Rieng province]
02/01
Phnom Penh (VNA) - Cambodian Deputy Prime Minister and Minister of Interior Sar Kheng has signed a decision to upgrade border gates in Som Rong in Cambodia ’s Svay Rieng province and My Quy Tay in Viet Nam ’s southern Long An province into international border gates.

A bilateral agreement on the upgrade was signed at a conference on Viet Nam-Cambodia border province development held on January 17 in Ho Chi Minh City.
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The key to poverty reduction: Agriculture
Friday, February 1, 2008Cambodia bets a lot the agriculture sector. “The policy of our government is such that it helps the economic growth and contributes to the reduction of poverty,” said Minister of Agriculture Chan Sarun.

In fact, if during the course of the last decade, the rate of poverty decreases thanks to an average yearly growth of 7.8%, this decrease was not equal throughout the country.

Cities saw a poverty decrease of 16% in terms on number of people living with less than one dollar per day – this decrease reaches 23% in Phnom Penh – however, in rural areas, the decrease of poverty is only 9.5%.

Hang Chourn Naronn, the secretary-general of the ministry of Economy and Finance, believes that the development of agriculture is essential: “It must be a necessary element in the strategy to reduce poverty.

In the province, people depend a lot on it: on average, 63% of their income comes from the [agriculture] sector.”80% of Cambodians live on agriculture. In 2007, this sector represents 26.8% of the GDP of the kingdom.

According to the World Bank, its growth rate must stabilize around 4% to yield a general growth of 7%, in order to abide by the millennium objectives set for poverty reduction.
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Investment boom in Cambodia
02.11.08Now investors are arriving from Beijing, Boston and everywhere in between. In December a $30 million canning plant opened in the outskirts of Phnom Penh, providing capacity for not only domestic consumption but also exports.

The country's largest cement factory went online last month, ending Cambodia's dependence on imports and keeping its massive construction boom on track.

Also last month CB Richard Ellis announced plans for a Cambodia office, which will make it the first big realty firm lured to a market where property prices have doubled in two years.

Commodities are another bright area. Australian mining giant BHP Billiton (nyse: BBL - news - people ), with partner Mitsubishi (other-otc: MSBHY.PK - news - people ), has a large bauxite exploration project under way, while Australia's Oxiana is prospecting for gold in the northern jungle.

Oil has been discovered off the southern coast. America's Chevron (nyse: CVX - news - people ) is a major player in fields that some estimate could yield up to $1 billion in annual revenue for the government.

Other lures include the ease of getting business licenses, low taxes and business-friendly investment rules. Bretton Sciaroni, an American lawyer in Cambodia since 1993 and chair of the International Business Club, notes that licenses often take only a week to obtain, and ventures can be 100% foreign owned. Foreign companies are often limited to minority stakes in ventures elsewhere in the region.
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Bokor Mountain handed to Sok Kong, in a 99-year lease
Friday, February 01, 2008

The historical Cambodian site of Bokor Mountain is to be expanded.

Cambodian petroleum giant Sokimex Group has signed a 99 year lease agreement with the Royal Government of Cambodia to develop the historic Bokor National Park.

The development of Road 32 will link National Road 3 to the peak of Bokor Mountain; also on the cards is the construction of schools, shopping centres and hotels, as well as road rehabilitation. The process is expected to be finished within 15 years and the initial investment will be US $1 billion.

______________________________________________________________________________________________Kith Kith Meng, An Influential Tycoon
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He's Kith Meng, and that same swagger is on display practically everywhere you look these days in Cambodia.

From hotels to telecoms and television, banking, insurance, even education, Kith's Royal Group has a finger in nearly every pot simmering in Asia's newest tiger economy.

It's clearly a role he relishes. And, whatever confrontations ensue behind closed doors, the combustive mix has propelled the venture into a lead role in a banking market that may be growing at 30% a year, fueled by the bubbling real estate market.

Of course, Kith also claims plenty of prime Phnom Penh plots.New high-rises are rapidly reshaping a city skyline still dominated by a 15-story Intercontinental Hotel.

But 40-story office, commercial and residential towers are on the rise. Just to trump them, Kith vows to build one 45 floors high.

Then came the announcement last month that the 52-story International Finance Tower had gotten approval. Kith will surely adjust his sights higher.

The hunger for fast food will be satisfied this year by the first Kentucky Fried Chicken outlets opened by—who else? Kith also has the Pizza Hut concession.Take ATMs. When ANZ opened in late 2005, there were hardly any in Cambodia.

"We wanted to bring in 25," Cleland recalls. Kith wanted 100. "We ended the year with 52, which seemed a fair compromise," Cleland says. The number quickly topped 90 and will surpass Kith's goal any day.

Cleland says there may be 6,000 credit cards issued by overseas banks in the country. He reckons that cards rarely make financial sense until the number reaches 100,000. But Kith is guided by intuition, not market studies. "In his words, you cannot be the number one bank without credit cards," Cleland says.

And guess what? "We're rolling them out in April," he notes.The bank boss may not be very excited about the $1.5 million likely to be spent on the rollout, but he's quite satisfied with a profit of $541,000 for 2007--years before any profit was projected.

All the more impressive, it comes as the bank plows cash into expansion. "This has been a good partnership, for both sides," Cleland says. "[ANZ] tends to be more cautious, but that definitely isn't his style. He's very aggressive, very bullish."--------------------------------------------------------------------------------------------------------------------------------
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Salt shortage forces VN to import Khmer salt from Kampot
31-01-2008

A salt purchase takes place in the southern province of Bac Lieu.

Viet Nam still imports salt for industrial production from neighbouring countries, despite producing 1.2 million tonnes of unprocessed salt per year.

Cambodian salt fills market while local producers struggleAN GIANG — A shortage of salt on the local market has resulted in a large volume of salt being imported into the country from Cambodia, experts say.

In the past month, traders bought salt at VND900 a kg from Cambodia’s Kampot province and imported it across the southern border province of An Giang.

Imported salt is then transported along the Vinh Te Canal in An Phu Commune and Tinh Bien town for local sale. The price has risen to VND4,000 a kg in Bac Lieu Province, the country’s largest salt granary.

Market experts said local salt prices had increased tenfold over last year and reached a record high in the past five years. The scarcity of salt was expected to continue because of the traditional methods of salt production that result in low yields, experts said.
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EdC: No electricity price hike
Thursday, January 31, 2008

While the cost of electricity along various provinces is fluctuating with the price of oil, in Phnom Penh, a rumor indicated that EdC plans to increase the price of electricity in 2008.

Tan Kim Vin, the director of EdC, told the Rasmei Kampuchea newspaper on 30 January that the gasoline price hike brought losses to EdC, but that EdC has no plan to increase the price of electricity to make up for the increased price of oil, because the EdC loss is supplemented by government subsidies.

An official of EdC told the newspaper that, currently, in Phnom Penh, the number of electricity users reaches 190,000. Each month, the number of electricity users increases between 700 to 1,000.

This demand forces EdC to find new source of electricity to fulfill the demands of its users.
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Chinese Dam Projects Worry Environmentalists

30 January 2008
Five Chinese hydroelectric companies, including Sinohydro Corporation and Yunan Corporation for International Techno-Economic Corporation, received government licenses to invest more than $500 million while three other companies had an agreement with the government to study four projects.

And the plan has encouraged private sector to produce and share electricity.

But the investment in Cambodian hydroelectricity is threatening the ecological system and could affect thousands of Cambodian people, International Rivers and the Rivers Coalition in Cambodia said in a report, issued Monday.

The report says the Kamchay hydroelectric project in Bokor National Forest, Kampot province, invested by Sinohydro, flooded 2000 hectares of forest.

Stung Chhay Areng, in the central Cadramom Mountains, could flood nine villages, affecting about 1,500 people, most of whom are ethnic minorities.

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Vietnam’s first satellite ready to brave challenges
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Thursday, January 31, 2008

Two months prior to launching VINASAT-1 satellite, operators say they are prepared to wait as long as 12 years before the endeavor registers profit.

In the first year after its launch, only a small portion of total satellite capacity will be in demand, said Vice President Lam Quoc Cuong of the satellite’s business operator, Vietnam Posts and Telecommunications Group’s (VNPT) International Telecommunications Company.

Cuong estimates that about 90 percent of total satellite capacity might be leased and put into use four years post-launch.

Twelve years from now, the satellite project might see profit. Critics say, considering the satellite will operate for only 15 years, three years of profit would not be enough to cover costs.

Manufactured by US aerospace company Lockheed Martin, the 2.7 ton satellite carries 20 C- and Ku-band transponders for radio, television, and telephone transmission services covering Vietnam, Laos, Cambodia, Thailand, part of Myanmar, Japan, eastern China, Korea, India, and Australia.

Set to be launched into orbit by the French rocket Ariane 5 from a launching station in French Guyana, the structure cost a total investment of US$188 million.

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Garment Export Growth Almost Flat in 2007
January 31, 2008

Export growth in the garment sector, Cambodia’s flagship industry, approached a standstill in 2007 as global market forces converged to cool demand for Cambodian-made garments, industry officials said Wednesday.

The total value of all garment exports last year rose to $2.93 billion, a meager increase over the $2.88 billion recorded in 2006, said Ken Loo, secretary-general of the Garment Manufacturer’s Association of Cambodia.

“We’re up 2 percent [in 2007], which is nothing,” he said Wednesday, adding that growth in 2006 was 18 percent compared to 2005.

GMAC announced Tuesday that fourth-quarter exports of garments from Cambodia in 2007 had nosedived by 46 percent when compared with the same period in 2006.
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Thailand finances Cambodian power grid to electrify Angkor Wat
Wed, 30 Jan 2008

The Export-Import Bank of Thailand and the (ADB) have agreed to Asian Development Bankprovide 14 million dollars to finance the construction of transmission lines across the Thai-Cambodian border, EXIM Thailand announced Wednesday.

"The construction undertaken by (Cambodia) Power Transmission Lines Company Limited aims to supply electricity for the growing industrial and tourism sectors in Cambodia," bank president Apichai Boontherawara.

The banks have joined with Advisors/Arco Capital Management Family of Funds (Arco) and Cambodia's Foreign Trade Bank (FTB) to provide a total of 20 million dollars to finance the power transmission lines construction for electricity imports from Thailand.

The total package, with 7 million from EXIM Thailand and ADB, 4 million from Arco and 2 million from FTB, will finance the construction of 115-kilovolt double-circuit transmission lines running approximately 221 kilometers from Thailand's Aranyaprathet district in Sa Kaeo province to Banteay Meanchey, Battambang and Siem Reap in Cambodia, home to the famed Angkor Wat temple complex.

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Telekom Malaysia to invest US$100mil
Monday January 28, 2008

Telekom Malaysia arm, TM International is investing about US$100mil in Cambodia over the next 18 to 24 months, and looking at a transaction in Laos, Vietnam, Myanmar at the same time.

TM International will house its domestic Celcom mobile unit and operations in nine other countries, including India, Indonesia, Bangladesh and Sri Lanka.

Earnings growth at TM, Malaysia's fifth largest company by market value, has mainly been driven by revenue from Celcom and its 67% owned Indonesian mobile unit, Excelcomindo Pratama Tbk.

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Constructions place third in national revenue generation
Im Chhun Lim, the minister of Land Management, Urban Planning and Construction, said recently that constructions take the third rank in terms of national revenue, right after tourism and the garment industry.

Im Chhun Lim indicated that during the last 9 months of 2007, there were 1,514 construction permits request made, with a total of investment amounting to $1.558 billion.

He also indicated that the construction plans above will provide about 20 to 30,000 manual labor jobs per month.

He added that, because of the development in construction, this sector plays an important role in the national development and it is the third revenue generator, following tourism and the garment industry.

Currently, South Korea is the major construction investor in Cambodia.
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Cambodia plans to buy more electricity from Vietnam
Jan. 28 -- Cambodian Prime Minister Hun Sen said on Monday that his country was planning to purchase more electricity from Vietnam to meet its ever rising demand.

"I requested the Vietnamese side to supply Cambodia with more electricity," he told a school opening ceremony in Svay Rieng province neighboring Vietnam.

The proposal was made during his visit with Vietnamese official, he said, without elaborating the detail.

"I told our minister of industry, mine, and energy to hold talk with the Vietnamese side to buy 200 megawatts of electricity per year in the new plan.

We used to buy only 80 megawatts a year from Vietnam, but this was far from enough," he said.
Power price remains high in Cambodia. The demand in capital city Phnom Penh annually increased by 25 percent, according to official source.
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Support requested for flights between Japan and Cambodia
Saturday, January 26, 2007A Japanese official belonging to the International airport industry asked the Cambodian government to support flights by Angkor Airways between Japan and Cambodia, which has flights scheduled between Osaka, Japan, and Cambodia, and in the future, it wants to schedule flights between Nakuta and Fukuoka, Japan, and Cambodia also, and in particular, flights to Siem Reap.
There could be 3 weekly flights and this number will increase to daily flights using new airplanes. ---------------

Phnom Penh river port increase to 100,000 containers
Phnom Penh river port will increase its capacity to accommodate 100,000 containers in 2015.

In 2010, there will be a big warehouse to store goods with safety. Usually, each month, there is 1,000 container each month.
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Land Prices Surge to All-Time High Across Phnom Penh
In 2007, the price of real estate in Phnom Penh increased more than any year in the past decade.

Investment from South Korean developers prompted prices in the capital to double and in some cases triple, though some experts question whether such prices can be maintained.

Residential land prices in the city rose last year on average from $700 to $1,600 per square meter, and commercial land increased from $1,200 to $2,500 per square meter, according to data compiled by Bonna Realy Group. In 2000, commercial land averaged $400 per square meter.

From late September 2007 to late December 2007, according to Sung Bonna, the value of land in the city center along both Norodom Boulevard and Monivong Boulevard rose from between $1,500 and $2,300 to between $2,000 and $3,000 per square meter.

At the beginning of the year the same land cost $1,000 to $2,000.

Elsewhere in Southeast Asia, real estate prices are surging yet higher.

Ho Chi Minh City’s prices rose, on average, 60 percent over the past two years, according to Naim Khan-Turk, an associate director in Ho Chin Minh City for CB Richard Ellis Co, a publicly traded multinational real estate corporation.

Moreover, prime Ho Chin Minh City land that sold for $10,000 to $15,000 per square meter two years ago now cost $30,000 to $35,000 per square meter—which makes property prices in Phnom Penh look like a bargain, Khanturk said.

According to Khan-Turk, development in Hanoi and Ho Chi Minh City is spreading to secondary and tertiary cities, which bodes well for Cambodia’s provinces if Phnom Penh can sustain and capitalize on its own growth.
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Forum on Growth Opportunities in Mining Sector
In a sign of continuing controversy over how best to dig up Cambodia’s riches, the Environment Ministry on Wednesday conducted a seminar on the country’s nascent mineral resources sector, fielding questions from mining companies and environmental NGOs alike.

“We are very proud of our mineral resources but we must be careful how we collect it,” Environment Minister Mok Mareth told the forum, billed as a “Dialogue on Growth Opportunity and Environmental Management in Mining Sector.”

In September, Mok Mareth said Cambodia’s protected areas, even the most sensitive locations, should be opened to exploration in the name of economic development.

Cambodia is considered a highly prospective country for mining, but exploration across the country for minerals such as gold, copper, zinc and bauxite has so far produced few significant finds.

Mok Mareth said roads are necessary for exploration, adding that the recently adopted Protected Areas Law and a new standard contract drafted by the ministry would ensure respect for the environment.

That contract requires exploring companies not alter the geological formation of the land, allow ministry officials access to their sites, and contribute funding to the management of protected areas.
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Gov’t OKs New Brewery in Kandal Province
The Ministry of Industry, Mines and Energy has granted a license for the establishment of a new brewery in Kandal province, according to the latest edition of the Council of Ministers’ Royal Gazette.

The Australian Brewery Company PTY Ltd, which is represented here in Cambodia by Ngov Mok, received the license on Nov 28 to establish a plant in Mok Kampoul district’s Russei Chroy commune, according to the Gazette.

An official at the Council for the Development of Cambodia said the firm will produce a beer with the brand name “Australia.”
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Bilateral trade with VN to reach US$2.3 billion by 2010
“Cambodia and Viet Nam are expected to achieve bilateral trade worth US$2.3 billion annually by 2010,” increasing from US$1.1 billion over the past 11 months and is expected to increase by 30 percent annually.

Vietnam’s Ministry of Industry and Trade’s Asia-Pacific Department told Vietnam News that the amount of trade between the countries rose from US$180 million in 2001 to US$940 million in 2006.

Export of commodities to Cambodia by Vietnamese investors was around US$896 million while Cambodia’s exports to the country stood at US$180 million.

Major exports from Viet Nam include textiles and garments, plastics, computers, electronics and components, vegetables and fruits, seafood and electrical home appliances. Imports from Cambodia include tobacco materials, rubber, wood products and cloth,” the article said, reported Vietnam News.
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40,000 tons of rubber will export this year.
Cambodia can grow rubber trees in non-red soil besides Kg. Cham and Rattanakiri. The export for this year will increased 40,000 tons compare to 35,000 in 2007, raise export value from $25 million to $30 million in 2008.

Cambodia has a total 70,000 hectares of both state (40,000 ha) and privately owned rubber plantations located mostly in Kompong Cham, Rattanakkiri and Kompong Thom provinces.

In Rattanakiri, there are ten rubber seedling sites which each has more than 10,000 rubber seedling to grow about 4,000 hectares.

In Steung Treng, An Marady Group plan to grow 20,000 hectares of rubber tree over the next ten years starting since 2007.

In Kg. Thom, a Vietnam Tin Bien just received 8,100 hectares for growing rubber trees in Kraya commune , Santuk district of Kampong Thom province.

Each hectare of land can grow 555 rubber trees and 50 replacements. The popular rubber trees in Cambodia at the moment is the one that take 5 years time. Cambodia could sell at a price $2,300 per ton while on the Malaysia Rubber Exchange was listed as $2,679 per ton on Dec 31 and had climbed to $2,702 last week.
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A new market in Bantey Meanchey

Market in Soun Koma Preah Kosama in Bantey Meanchey will be developed for 35 years (renting) and collect tax for 10 years from 2008.

The project developed by Sen Kiri company for $240,000.
Property in PP went up almost double in 2007.

CPL Cheng Kheng said that the price of house went up almost double and continue to go up until 2008 election and if the political situation does not change, the price continue to go up.

The price of some part of Phnom Penh land cost $3,500 per square metre for big residential land of 1,000m2 .

The commercial areas such as in Central Market, riverside, Monivong area has increased $5,000 to $8,000 per m2. However, this price is still lower than Ho Chi Minh land cost even $10,000 per m2.

The price of an apartment in PP cost $100,000 while is suburban area cost $80,000 to $90,000.
Seng Bunna said that the price increase was 80% to 100% in 2007 compared to 30% to 40% in 2006 while through his own experience the most expensive land were $3,500 and $4,500. The residential land cost $2,500 per square metre.
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Road to Preah Vihea Temple to cost $57 million

116 kilometres of from Road No. 62 in Tbeng Meanchey to Preah Vihear temple will be built by Shang Hai based Taing Jun for $57.8 million and will take 45 months.

The road of 7 km to up to Preah Vihear temple, 34.15 km to Sroyong Koh Ker temple will be also built with 16 cm layers with 9 metres width.
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Railway to be developed by French and Thai

TSO from France, AS company and NAWARAT Joint Venture from Thailand were chosen to renovated railways: 264 km to Sihanoukville will take 23 months and 386 km to Poi Pet will take 22 months till 2010.

There are more than 600 km of rail track connecting Phnom Penh with both Bantey Meanchey province’s Svay Sisophan in the northeast and Sihanoukville in the south, but the rails are desperately in need of a total makeover. 400,000 of iron track are need.

The amount of renovation and construction are: 310 km of railways, 64 bridges, 38 drains, and 71 stations. The project cost $73 million. (ADB: $42 million, OPEC: $13 million, Malaysia:$ 13 millions, Cambodian gov’t: 15.2)

Power said that bidding had not yet begun for the proposed 250-km line running from Phnom Penh through Kompong Cham and Kratie provinces to Loc Ninh in Vietnam. But he said that construction on the proposed line, part of Asean’s 5,513-km Singapore-Kunming project, could be finished by 2012 or 2014.

Because of existing lines from Singapore to Thailand and from Vietnam to Kunming, China, Cambodia’s rails are a necessary component to connecting the Asean region, he said.

Currently trains travel at speeds of between 15 and 30 km per hour built between 1929 and 1942, with only one group of passengers using the train to travel to Battambang once a week, he said.
The trip can take eight hours.

The new tracks would allow travel at 50 km per hour and eventually speed up to more than 90 km per hour with future improvements, Sokhom Pheakavanmony said.

Australia-based Toll Holdings company is negotiating a 30-year concession agreement to provide and operate new engines and railcars from Phnom Penh to Svay Sisophan and Sihanoukville, Power said. That agreement could be signed in February, and Toll could begin running on the existing lines by August.

Toll intends to invest $80 million in the project, Power said, adding that the company is taking some risk with the investment, as they will be expected to pay off their investment debt in addition to paying 2 to 6 percent of revenue to the government.

But Toll projects $12 million in revenue in its first year, $54 million in its 5th year and $80 million in its 10th year, Power said. Though some 60 to 70 percent of that money will go towards operating expenses, he said.

Power added that the potential for profit from the railways has increased with Sihanoukville’s airport expansion, Kampot’s new seaports and cement factory, and Poipet’s continuing growth.
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Major Realty Firm To Open Cambodia Branch
January 23rd, 2008

The entry of US real estate consulting firm CB Richard Ellis Co Ltd into the Cambodian market is another sign that the country is looking increasingly attractive for international investors and developers, local realtors and businessmen said Tuesday.

CB Richard Ellis Group Inc, which acquired US property developer Trammell Crow Company for $2.2 billion in 2006 and currently manages 160 million square meters of property—equal to $28.6 billion in assets—for businesses around the world, is currently looking for a permanent office in Phnom Penh to employ 20 staff by the end of 2008, said Edward Hopkins, who will oversee CBRE’s Cambodia office.

“Phnom Penh has a good, strategic location,” Hopkins said. “You’ve got two of the biggest cities in Asia on either side of you. You’ve got 15 million people in Bangkok and 8 million in Ho Chi Min City, and things are increasingly happening between the two.”

Bretton Sciaroni, chairman of the International Business Club in Phnom Penh, said the arrival of CBRE, which employs 200 staff in Vietnam and 600 in Thailand, is “another example of international business coming into Cambodia.”

Even though Cambodia is untested for many of CBRE’s high-end developers, such as retirement communities and upscale office buildings, Hopkins, who worked at CBRE’s Ho Chi Minh City office for three years, said he expected to see growth here similar to what he witnessed in Vietnam.
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Sokha Group to Take Control of Sihanoukville Beach
Sokha Hotel Group has announced that they will be taking over a large chunk of Sihanoukville’s popular O’Chheuteal beach as part of a major new resort they are planning there.

The new 1,000-room hotel and golf course will include around 54 hectares of beach front, with just one kilometer of beach left over for the public, according to a company report.
Sokha Group project officer Svay Vuthy declined to comment Tuesday on whether the new deal would mean the hotel could ultimately charge an admission fee to non-hotel guests who visit O’Chheuteal. A reporter was recently charged $1 to enter the nearby Sokha beach, which is already run by Sokha Hotel Group for another of their resorts.

Sihanoukville Municipality Deputy Governor Sboang Sarath confirmed that tourists would still be allowed to use one kilometer of O’Chheuteal after the resort is built, but he said the entire beach might be closed off during the construction phase. The company had not yet said when construction is scheduled to begin, he added

A new 500-room hotel is also to be built by Sokha hotels on 14 hectares of land on Chroy Changva peninsula in Phnom Penh, according to the company’s report.
The group, which as long ties with the ruling CPP, also announced this week a $1 billion plan to develop the Bokor mountain resort in Kampot.
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S Korea, Cambodia to open JV stock exchange in 2009
22 Jan, 2008
South Korea's stock exchange operator said on Tuesday it had agreed with the Cambodian government to set up and run a joint stock exchange in the Southeast Asian country in 2009.

The Korea Exchange (KRX), Asia's fourth-largest bourse operator, has in recent years supported stock market development in Southeast Asia as part of efforts to raise its profile and draw foreign firms to Seoul for listings.

KRX said in a statement the exchange and the Cambodian Finance Ministry were working on a detailed investment plan to set up the Cambodia Stock Exchange and a support system next year.

The Cambodian government will own a minimum 51 per cent in the new bourse while KRX will hold as much as 49 per cent. KRX will also help the country set up a regulatory body to oversee stock trading, it said.

South Korea said last year it would spend $1.8 million in training and help set up the modern stock market in Cambodia, which is recovering from a 30-year civil war ended in 1998.
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Cambodia Eyes Golf
Cambodia doubled its number of luxury golf courses last year to four and hopes to have eight by 2010 in a bid to lure more high-end tourism from the fast-growing sport in Asia.

Cambodia in 2007 opened its only two PGA-rated courses in the popular tourist town on Siem Reap, in northwest Cambodia near the famed Angkor temples which remain the country’s biggest draw for foreign visitors.

A third course backed by South Korean investors is expected to open in Siem Reap in 2009, said Suos Yara, secretary general of Cambodia Golf Association.
Three other multi-million-dollar golf projects are also under construction near the capital Phnom Penh.
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Acleda bank launched a new branch
Acleda bank just launched a new branch in Kratie province last week. The bank so far has 204 branches and office in all provinces of Cambodia and employs 3,820 staff.

Its fix asset has gone up to $293 million, loan portfolio of $187 million to 167,188 clients, and $181 million from 164,846 depositors.

Kratie branch has 80 employees and 4,001 borrowers and 5,485 depositors.
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Cambodian revenue per capita goes up to $689
The minister of economy and Finance recently claimed that average annual revenue of Cambodian has increased 9% every year and to $689 in 2007 from $613 in 2006.

The number of those who live below poverty line of 0.45 per day has reduced by 2% from 35% since 2004.
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Rice went up 40%
The price of Cambodian rice has gone up to $360 per tone, 40% increased from $230 last year. This resulted from exporting to neighboring countries and Cambodia might face rice shortage at the end of this year.

Vietnam alone imported 150,000 tones of Cambodian rice last year and expected to import another 200,000 tons this year.
Cambodia plan to export 2 million tons of rice to neighboring country this year.

The total nation wide production in 2007 was 6 million tons including Battambang produce 562,540 tons and Bantey Meanchey produce 434,208 tons of rice.
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Tonlé Sap bridge will cost $42 million
Ly Yong Phat Company just recently was awarded to build a bridge across Tonlé Sap lake in Prek Pnov district connecting two most important national road No. 5 and No. 6 A for $42 million BOT investment.

The bridge will take 24 months to complete. The bridge will be 1.5 kilometer length, 14 meter width, and 10 meters from the water surface. The road connecting the bridge to National Road 6 A will be 8 kilometer length and 14 meters width.
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Government Least more islands

The government just approved long term lease of 3 more islands in Sihanoukville to develop as ecotourism resort for a total investment capital of $43 millions.

Koh Preus (aka Koh Chanlos) , 562,800 m2, was leased to Angela Real Estate;

Koh Krabey, 122,330 me, was leased to RPB Investment

Koh Tres was leased to Twin Golden.

The agreement was signed by Minister of Commerce Chorm Prasidh, Secretary of State of the ministry of Finance and Economy, and three companies on January 18th, 2008.

Cambodia earned nearly US$1.5 billion from tourism last year.

Cambodia earned US$1.5 billion from tourism last year as the number of tourists visiting the Kingdom reached 2 million, said a senior tourism official.

The revenues show an increase of nearly 400 million from 2006, said Tourism Minister Thong Khon on January 17, adding that 60 percent of the tourists were from Asia, over 20 percent from Europe and 18 percent from the US leading by Korean, Japanese, Americans, Vietnamese, Chinese, and Taiwanese.

Siem Reap province received 60 percent of the total number of tourists, Phnom Penh 35 percent, coastal areas 10 percent, and northern provinces the rest, he added.

On average, one tourist spends three to four days and US$770 during their stay in the country, he said.

Tourism brings 200,000 jobs to Cambodia and contributed to 9% to GDP.
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Sokha starts US$1 billion Bokor development
Local tourism firm Sokha Hotels and Resorts, a subsidiary of the Sokimex group, has began work on the development of Bokor National Park in Kampot province to restore the area's roads and sewage systems and build condominiums, houses, shopping malls, schools, hospitals, and resorts with investment capital of around US$1 billion for 99 years lease contract.

Sokha declared the development project open on Saturday morning when Prime Minister Hun Sen presided over a groundbreaking ceremony at the small road No. 32 leading to Bokor mountain connecting to National Road 3 for 33 kilometers with a 7 meters width at the cost of $20 million and take 30 months to complete while the whole project will take 15 years.

The government expressed hope that the number of tourists to Kampot province will be higher than the last year’s 8,000 after its road and resorts are developed.

The park was established in 1922 as a resort for French colonial officials in Cambodia but the casino, hotel, and other buildings constructed on the mountain were ravaged during subsequent wars and are currently in a severe state of disrepair.

Sokimex, the locally owned petroleum company that enjoys the government’s ticket concession for the Angkor Temple Complex, applied to the Council of Ministers for permission to develop a resort on top of Bokor Mountain November 9, 2006.
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Malaysian optical giant sets sights on Cambodia
England Optical Group, the most prominent Malaysian optical chain, has announced plans for regional expansion as well as increasing the number of outlets in Malaysia from 130 to 250 within three years.

The group presently has one store in Cambodia, but founder and chief executive, Datuk Dr Chin See Keat, said he would be looking for suitable partners among Cambodians studying business and optometry at the Company’s Institute Optopreneur in Malaysia’s capital, Kuala Lumpur.

Those with sufficient qualifications will be given the opportunity to open optical outlets at numerous locations across Cambodia. (Globe, Dec 2007)
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Vietnam Rubber export turnover forecast to hit 1.5bn USD
19/01/2008
Vietnam is expected to rake in 1.5 billion USD from rubber exports this year due to growing demand for natural latex and increasing prices in the world market.

The price of exported rubber latex now stands at 41 million VND (roughly 2,560 USD) per tonne – the highest price to date.

The country has been eager to grow high-yield rubber varieties and apply new farming techniques in an effort to raise average output to 2.5 tonnes per ha in 2015 and 3 tonnes per ha in 2020 from the current 1.6 tonnes per ha.

Vietnam , currently housing around 495,000 ha of rubber trees, plans to increase the acreage to 700,000 ha by 2010. It has also grown hundreds of thousands of ha in Laos and Cambodia.

The country shipped abroad 719,000 tonnes of rubber latex last year, earning some 1.4 billion USD, up 1.6 percent in volume and 8.8 percent in value over the previous year.
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Three Planned Skyscrapers To Change Phnom Penh Skyline
January 17th, 2008

Phnom Penh’s three ambitious developers promises to build 30, 42, and 52-story skyscrapers.
The largest of the proposed towers I the $1.1 billion International Finance Center Tower, designed to house 10,000 residents as well as offices, a school and a supermarket on its 52 floors on seven hectares of land near Russian Embassy by Korean-based GS Engineering and Construction, which plan to be completed by 2012.

The proposed $2.4 billion, 193-meter-tall Gold Tower 42, slated for construction at the corner of Sihanouk and Monivong boulevards, by Yon Woo Cambodia Co., Ltd, plan to be completed by May 2011.

The Overseas Cambodian Investment Corporation is planning to build a $20-million, 30-story business center by 2009, notably housing the new headquarters of Canadia Bank on Monivong Boulevard near the railway station, according to Canadia investment unit Manager Rien Samrith, adding that the biggest design difficulty was the underground parking garage.
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Tourist in Siem Reap increased by 21.79% in 2007

The number of tourists came to Siem Reap has increased up to 1,996,295 in 2007 while there was just 1,639,052 in 2006, which is 21.79% growth and it is expected to growth up to 25% in 2008.

That includes 1,104,069 international visitors and 892,226 local tourists brining $1,400 million or 10% of GDP. The six leading nationalities are Korean, Japanese, Taiwanese, American, Chinese, and French.

Siem Reap has existing 101 hotels of 7,695 rooms and 201 guesthouses of 2,592 rooms while 19 other new hotels with 2,775 room capacity are under construction.

Siem Reap has also 102 restaurants, 130 travel agency’s branches, and 2,620 tour guides.
Cambodian bank reserves rising exponentially, says prime ministerJan 15, 2008 Cambodian bank reserves have increased exponentially in the past five years, Prime Minister Hun Sen said Tuesday.

Speaking outside the country's National Assembly, Hun Sen told reporters that for every unit of currency held by Cambodian banks in 2003, they now held now 200 units. Cambodia's economy operates in Cambodian riel and the US dollar, with some provinces also holding significant amounts of Thai baht.
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Cambodia opens first big cement plant
Sun Jan 13, 2008 10:52pm EST

Cambodia's first major cement plant, a $127 million joint venture between Thailand's Siam Cement SCC.BK and Cambodian construction firm Khaou Chuly Group, opened on Monday.

The factory employed 520 workers can currently produce 960,000 tons of cement per year since its operation in 2006 using stone from two nearby mountains, Phnom Totong and Phnom Touch.

A further investment of US$200 million is planned by the company by 2009-2010 which is planned to increase its capacity sufficiently to supply 3 million tons per year and increased electric supply up to 70 megawatts.

Khaou Phallaboth, president of Khaou Chuly Group, estimated that 50 percent of the cement supply in Cambodia is smuggled, avoiding import taxes and thereby gaining a competitive advantage over his company’s cement.

Suy Sem, Minister of Industry, Mines and Energy, said that Cambodia needed 1.1 million tons of cement in 2005, 1.4 million tons in 2006 and 1.5 million tons in 2007. He estimated 2 million tons would be needed in 2008 and 2.7 million tons in 2012.
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Cambodia's Largest Airport Planned For Seaside Resort: Minister
Jan 10, 2008

Cambodia's seaside airport near Sihanoukville is slated to become the country's largest as a new focus is placed on bringing tourists into the area, Tourism Minister Thong Khon said Friday.

A year after its reopening, service at the Sihanoukville airport remains limited to chartered domestic flights.

But plans are underway to make it a regional travel hub, with the first phase of a $200 million expansion expected to be completed by March.

The airport, some 230 kilometers southwest of Phnom Penh, had been closed since the early 1980s due to financial difficulties.

Direct flights between Siem Reap, the gateway to Cambodia's famed Angkor temples, and foreign cities have prompted a rise in tourist arrivals.Officials hope Cambodia's south - which boasts long stretches of undisturbed coast and several islands currently under development - can also benefit from this boom by providing air links either to Siem Reap or directly to other countries.

Some 100,000 people visited Sihanoukville last year, Thong Khon said, adding that the government aimed to attract one million people by 2015.Tourist arrivals to Cambodia topped two million in 2007, marking a 20% increase over the previous year, Thong Khon said.

Officials hope to attract 2.4 million people to the country this year.
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Lawmakers consider letting foreigners buy real estate

Although current law prohibits foreigners from actually holding title to land in Cambodia, the National Assembly is considering an amendment to the law that could be approved soon, said Nuth Narang, Secretary of State at the Ministry of Land Management, Urban Planning and Construction.

The ministry is seen as favoring the amendment because in August it passed a sub decree allowing foreigners to use property they own via a leasehold as collateral with the banks.

Backed by Indonesia's Cinputra, through a local partner RCAF Gen. Ke Kim Yan, the International City is developing 260 hectares 20 minutes northwest of the city center into a gated community. He said foreign buyers obtain a 99-year lease with an option to renew.

The leases all include a clause saying if the land law changes, the leaseholds will be converted to "free hold." Owners would have to pay certain taxes and transfer fees to convert. ----------------------------------------------------------------------------------------------------------------Thai Investors Eye Possible Koh Kong Coal Plant
The government had approved a plan by Thai investors to conduct a feasibility study for building a $5 billion coal-fired power plant in Koh Kong province.

The plant is intended to produce 3,600 megawatts of electricity for the Thai market, while 200 to 300 megawatts would be sold for Cambodian use expected to come on-stream by 2014 in the Pouy Yeaysem area on the coast, about 50 km northwest of Koh Kong town.

Coal for the plant would be imported from either Australia or Indonesia.
The Koh Kong plant is the second coal-powered plant in the pipeline for Cambodia. Plans are also in the works for a 200-megawatt plant in Sihanoukville—a joint venture between AZ Group and Malaysian company LEADER, AZ Group Vice Chairman Lim Bun Sour said Thursday.

Lim Bun Sour said that he expected the plant would be up and running by 2012.
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ADB approved $27 million secondary education grant
ADB approved $27.1 million, six-year program to improve the quality of secondary education in Cambodia from 2008 to 2014.

Cambodia has about 8,000 schools with 3.43 million students and 76,350 teachers nationwide. That includes 1,238 pre-schools, 6,063 primary schools, 486 lower secondary schools and 283 upper secondary schools.

The lack of fresh water and toilets are a significant problem in the schools. About 52 % of primary schools, 53% of lower secondary schools and 21 % of upper secondary schools lack water.
About 41 % of primary schools, 36% of lower secondary schools and 7.5% of upper secondary schools have no latrines.
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Thailand considers lending US$41 mn to Cambodia
BANGKOK, Jan 10–
Thailand is considering giving financial assistance to the neighbouring country of Cambodia for the development of roads in that country, according to Thai Prime Minister Surayud Chulanond.

He said after the meeting that the National Economic and Social Development Board (NESDB) had earlier proposed many cooperation projects between Thailand and its neighbouring countries including construction of roads and bridges, cargo transportation and arms maintenance projects.

The committee agreed to forge ahead with a plan to lend Bt1.4 billion(US$41 million) to Cambodia to build a 100 km road from the Chongjom border pass in the Thai border province of Surin to Cambodia.
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S. Korean company to build skyscraper, new cities in Cambodia
January 09, 2008
A South Korean GS Engineering and Construction company plans to construct a skyscraper and new cities in Phnom Penh and Sihanoukville.

The firm will begin constructing a 53-storey international financial building in mid-2008 on nearly seven hectares of land near the Russian Embassy in Phnom Penh's Tonle Bassac commune and the construction is scheduled to be completed in 2012.

In the building, there will be supermarkets, shops, offices, schools, and apartments able to accommodate around 10,000 people, said the advisor, adding that the plan will create 3,000 jobs.

Kevin Kab Ryal Kim said that his company also plans to construct a satellite city on 145 hectares of land on the outskirts on Phnom Penh alongside National Road 6, adding that another city with five-star hotels and an international airport will be built in Sihanoukville.
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Chinese oil exploration ship arrives in Cambodia
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvS04OhxbIvmsv2RYpTHOEi7DhRzm6Fw1nmVCBuaZlCE3p9VcFYJQGUV6k8dFkPCGIAFZ9Oedj0VNNS33aMCDRZItVekzFOzs2z3eKKjadUaLMvJCeu15O1OIKoo4yGn7Q5eBEq_cgO2NR/s1600-h/Chinese+oil+exploration+ship+-+BINHAI+517+(KS).jpg

Chinese oild exploration ship, the BINHAI 517, is seen docking in the Sihanoukville seaport
Wednesday, January 9, 2008

An oil exploration ship belonging to the People’s Republic of China has arrived in the port of Sihanoukville, in the afternoon of 07 January 2008 to conduct an oil exploration in the Cambodian seas.

The ship will perform its exploration, based on an agreement with the Royal Government of Cambodia, in Cambodia Bloc F, extending from in front of the seaport built by Oknha Mong Riththy to Koh Rong Islands.

The ship will conduct its exploration for a 20-day period, starting from 08 January. Exploration in Cambodia Bloc F revealed that natural gas was found and can be exploited, this is the reason of the Chinese ship visit.

The Chinese ship will also provide a more accurate account of oil estimate prior to official oil extraction. The ship is manned by 37 Chinese experts who will be participating in the exploration.
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Rubber group to expand plantation in Cambodia

10/01/2008

Four subsidiaries of the Viet Nam Rubber Group (VRG) will plant a combined acreage of 4,100 ha of rubber in Cambodia this year.So far, six companies under the VRG have been allocated over 22,000 ha of land in Cambodia to grow rubber trees.

Of them, Phu Rieng and Tan Binh companies have so far put 270 ha under rubber trees, generating many jobs for local people.

Participants agreed on several measures to accelerate the planting, including looking for local supply of materials and equipment and training local labourers.
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Cambodia rejects Taiwan's bid to open business representative office
Jan. 9 (Xinhua) -- The Cambodian government has reiterated its rejection of the so-called Taiwan External Trade Development Council's request to open a business representative office in Cambodia, local newspaper the Deum Ampil reported on Wednesday.

The attempt to reopen a business representative office is impossible, said Om Yentieng, advisor to Prime Minister Hun Sen.

A Taiwanese business representative office was opened in 1993 in Cambodia but closed following factional fighting in 1997.

Some 1,000 Taiwanese investors do business here, mainly in the garment sector, said Om Yentieng, adding that five shoemaking factories in Cambodia are owned by Taiwanese investors,
with each employing around 8,000 to 10,000 Cambodian workers.
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Standard & Poor's gives 1st credit rating to Cambodian micro-credit bank
1.10.08
Standard & Poor's gave its first credit rating to a Cambodian bank Thursday to categorize Cambodia's banking industry in terms of risk assessment in the tenth and lowest group, on par with Bolivia, Jamaica, Ukraine and Venezuela.

It assigned Acleda Bank Plc., Cambodia's third-largest bank, a B+/B credit rating. B+ is four levels below investment grade.

Acleda, the country's largest micro-creditor, has the country's largest network with 193 branch offices, mainly in the rural areas. It announced last month that it has received a license from the Laotian government to open a subsidiary in Vientiane by the middle of 2008. The move would make it the first Cambodian company to invest abroad.

The bank's reported asset quality and profitability are good, "underpinned by its healthy interest margins of 19.9 percent in August 2007," the statement said.
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Vietnam firms invest $391mil overseas
07/01/2008 – Vietnamese businesses invested US$391.2mil overseas in 64 projects in 2007, bringing total in vestment overseas during 1988-2007 to $1.39bil. Of the total, 17 projects, capitalised at $156.8mil, were in the agricultural sector and 23 projects, valued at over $147mil, were in industry, with the remainder in services.

The average scale of investment was around $6mil per project.Of 35 countries and territories receiving Vietnamese investment, Laos attracted the greatest amount, with 86 projects worth a total of $583.8mil. It was followed by Cambodia, with 27 projects worth $88.4mil and Russia with 12 projects valued at $48.1mil.
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Boeng Kak Lake Development face Criticism
Friday, January 04, 2008

The filling of Boeng Kak Lake for development turned into a heated debate between an old hand and one of the younger deputy city governors.

The filling of the Boeng Kak Lake is strongly opposed by 81-year-old architect Vann Molyvann who is concerned that the filling of the lake could cause flooding in the city, especially in Tuol Kok district.

Pa Socheatvong raised the issue of the benefits brought by the development of Boeng Kak Lake by saying that it will help the Boeng Kak Lake community since the residents will be provided housing on top of the filled lake.
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Sihanoukville’s Phsar Leu fire burns down almost 1,300 stalls https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjkSv_b_vzRqKYUzNl0svjryqUr5kXHQcnKjyJl-vJyKPaWDoOv758Ueos2bgE43C4HlzMAujtjsCdCrnGhAHZr8HVJZ20SrocsUVQ7PT8ZVD8sBJ_XTM0GeKqF5wJ5Uifl2gVFVkCchN1/s1600-h/Phsar+Leu+fire+05+(KS).jpg

Friday, January 4, 2008
Sihanoukville’s Phar Leu market erupted in fire which burnt down almost a total number of 1,125.

The fire took place during the night of 02 January 2008.Up until now, no one knows the cause of the fire which also destroyed at least $1 million in merchandise.
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Vietnam extends tax-free Cambodia rice imports till '09
3 Jan 2008

Vietnam has extended its suspension of duty on rice imported from neighbouring Cambodia until 2009, and will raise the tax-free limit by one-third to 200,000 tonnes next year, state media reported on Thursday.

Vietnam, the world's second-largest rice exporter after Thailand, would allow the duty-free import of 150,000 tonnes of Cambodian rice this year, the Saigon Giai Phong newspaper quoted the Industry and Trade Ministry as saying.

The ministry also permitted Vietnamese importers to buy 3,000 tonnes of dry tobacco from Cambodia a year without paying import duty, the newspaper said.

Both countries are members of the World Trade Organisation and many Vietnamese farmers work in Cambodian rice fields or buy the grain from there to offset a domestic shortfall during the period between crops.Vietnam has allowed Cambodian rice to be imported without tax since 2006.

The purchases, which often take place in the last quarter of the year, help stablise Vietnam's grain prices and enable exporters to buy better-quality grain more easily.

Vietnam plans to export between 4.5 million tonnes and 5 million tonnes of rice this year after a 3 percent fall last year from 2006 to an estimated 4.5 million tonnes, the Agriculture Ministry said.
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Minister Says 2 Million Tourists Visited in ’07
January 2nd, 2008

With the New Year now upon us, Minister of Tourism Thong Khon said Tuesday that Cambodia reached its goal of attracting 2 million foreign tourists in 2007 and expects to once again see tourist numbers grow by 20 to 25 percent in 2008.

As in previous years, more tourists came from South Korea than any other country, followed by Japan, China and the US, he said.

Sihanoukville Governor Say Hak said that so many visitors came to celebrate the New Year on the coast that the municipality’s 3,000 hotels rooms were not enough to accommodate them all.

As a result, hundreds of Cambodians visiting the town slept on beaches.

In 2007, he added, Sihanoukville drew around 100,000 more tourists than in 2006—a 30 percent increase.

Cambodia, Laos, Vietnam enhance power cooperation,



Under the agreement signed on December 29, Cambodia will buy electricity from the Electricity of Vietnam corporation (EVN) to provide to Kongpong Cham province and electricity from Laos for the northern province of Stung Treng.

To implement the contract, Laos plans to build a transformer station and 25 km of 115 kV line from Champasak province to the Laos-Cambodia border. Vietnam will also build a 110 KV power line to transmit electricity from southern Tay Ninh province to the border area with Cambodia .

Meanwhile, Cambodia will build two 110 kV transmission lines. Work on the two lines will start in early 2008 and is expected to complete in 2010.

Vietnam has provided annually 24 million kWh to Cambodia through nine points in the southern provinces of Tay Ninh, Kien Giang, An Giang, Binh Phuoc and Long An. Vietnam and Laos have also agreed to join hands in building hydropower stations in Laos to provide electricity to Vietnam. One of their cooperation projects, the Sekaman 3, with a capacity of 240 MW, has already been underway and will start operation in 2009.

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Top 10 Economic News of Cambodia in 2007

First was the signing of the single visa agreement between Cambodia and Thailand on Dec. 17, which allowed foreign tourists from a third country to visit the two countries with a single visa and thus promoted more foreign tourists to visit both countries.

Second, Cambodia re-opened its Sihanoukville International airport on Jan. 15, after more than 20 years of hiatus, in order to perfect its air traffic network and attract more travelers to the seaport city. Kang Keng Airport will lengthen its runway to allow larger planes from further a field to land. Around 3 km of runway has been laid so far. After the renovations, direct flights from Europe will be able to land.

Third, the kingdom started to construct its National Road No. 8 on March 15, which, upon its completion, will improve the country's road network and provide more choices for its outgoing people.

Fourth, the National Assembly on Dec. 3 approved the government accounts settlement for 2005, which had 89.2 million U.S. dollars in surplus and confirmed its successful economic reform.

Fifth, the Special Economic Zone of Sihanoukville began to be constructed in 2007 with the participation of Chinese investors. The project aimed to provide full-scale business service for export-oriented factories and companies.

Sixth, real estate prices in Phnom Penh surged drastically in 2007, as it inhabitants increased by 3.2 percent on annual basis and foreign investment rushed in to share the country's foreseeable economic boom in the near future.

Seventh, Cambodian has become the sixth largest garment exporter in the world. The industry created job opportunities for about 0.5 million Cambodians and generated some 0.3 billion U.S. dollars of monthly payment for the employees.

Eighth, maiden direct flight between Europe and Cambodia was made on Dec. 7, which would bring more tourists to the kingdom.

Ninth, agricultural exports flourished in 2007, as palm oil, peanuts, rice, pepper and other rural products became ever more popular in the international markets.

Finally, luxury real estate project the Long qing Resort in Kandal province was demolished on July 31, as it expanded its land illegally and in effect constituted menace to the safety of the capital city.

Earlier in November, the Asia Development Bank put Cambodia's economic growth rate for the current year at 9.5 percent and nine percent in 2008, while the Cambodian government gave a conservative estimation of seven percent both in 2007 and 2008.

In addition, the latest World Bank (WB) East Asia and Pacific Update said in November that despite slight decline, Cambodia's economic outlook for 2008 will remain strong overall, with its growth rate dropping from 9.5 percent in 2007 to 7.5 percent in 2008.

According to official figures, the economic growth rate of the kingdom in the past three years averaged 11 percent, by which the government said that macro-economic stability has been realized out of decades of war and turmoil.
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Spanish company proposes game hunting park in Cambodian jungle
January 1, 2008
The Cambodian government is studying a Spanish company's proposal to convert a huge tract of jungle in the country's wild northeast into a game hunting park for big-spending tourists, a wildlife protection official said.

The Madrid-based NSOK Safaris company wants to use 247,100 acres in Rattanakiri province, which is home to an abundance of wildlife, including several endangered species, as well as several indigenous tribal minorities.

The province is about 200 miles from the capital Phnom Penh.The project envisages bungalows and luxury lodging built "for high-class, VIP tourists...or professional hunters," said Dany Chheang, deputy director of the Wildlife Protection Office of Cambodia's Agriculture Ministry.

NSOK made the proposal more than two years ago, but it remains unclear how much money it would invest in the project and when it could launch, he said.

He said about 30 types of animals, including deer, pigs and wild boar as well as reptiles and birds, could be put up for hunting, but shooting tigers would not be allowed.
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Firms Get Rights to Explore Protected Areas

Immediately following the National Assembly’s approval of the protected areas draft law on Thursday, Minister of Environment Mok Mareth announced that the government has granted several private companies the right to explore many of those areas.

Mok Mareth said that among the areas now open to exploration are previously protected regions in the Cardamom Mountains, Phnom Aural and Virachey National Park.

“This law is a tool that I hope we can effectively implement in the 23 protected areas to make sure that Cambodia can conserve [those] areas for the current and future generations,” he said.

“The Cardamom Mountains have more than 1 million hectares of land… According to the new draft that was approved, we will establish sustainable areas inside these protected areas,” he added.

The law, which was approved by 78 out of 84 lawmakers present, calls for three types of zones: core zones, conservation zones and community zones.

Core zones are untouchable, while access to conservation zones is granted by government permission only. Community zones are reserved for use by local and indigenous groups.

While further study is needed to assess the full exploitable potential of the Cardamoms, Mok Mareth said there is reason to believe there are minerals of high value—possible aluminum and gold.

“We are analyzing the minerals… If we can see large potential, we must extract it,” he said.
Mok Mareth also said that while the government is encouraging exploration companies to dig shallow holes, he is not overly concerned that such activity will damage the environment.

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Cambodia gets first PGA-standard golf course
December 27, 2007 - 10:00AM

Cambodia's first PGA-standard golf course will bring in much-needed tourist dollars to the impoverished nation, a company official said Wednesday.

Designed by and named after golfing legend Nick Faldo, the "Faldo Course" will be a boost to Cambodia's economy by attracting well-heeled tourists, said Adam Robertson, operations manager at the Angkor Golf Resort.

The 18-hole, 72-par course is located close to the famed Angkor Wat temple, which sits just outside the northeastern town of Siem Reap, and was officially opened by Prime Minister Hun Sen on Saturday.
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Cambodia's forex reserves top 1.6 billion dollars - PM
12.26.07 -
Cambodia's foreign currency reserves have topped the 1.69-billion-dollar mark due to robust economic growth over the last decade, Prime Minister Hun Sen said Wednesday.

Hun Sen said the country's international reserves increased by nearly 700 million dollars this year. 'By the middle of next year, our international reserves will reach 2 billion dollars,' Hun Sen said.The country's economy is expected to grow by 9.0 percent in 2007, according to the International Monetary Fund.

Nonetheless, the kingdom still needs at least 500 million dollars from foreign aid annually for development.
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National Assembly Debates Protected Areas Law
December 26, 2007

The National Assembly on Tuesday entered the second day of debates on a draft protected areas law, focusing primarily on how local communities and indigenous people fit into the overall picture.

Up to this point, most concern over the draft law has centered on the potential environmental damage of opening conservation areas to mining and development projects.

On Tuesday, he touted the success of local communities that have already been granted land by Prime Minister Hun Sen from previously protected areas in Koh Kong, Battambang and Kompong Speu provinces, adding that more land needs to be set aside for local communities.

Mok Mareth said that the government had already found it necessary to give 10,000 hectares of protected forest in Mondolkiri province, where 90 percent of the land is forested, to villagers for farming.
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Vietnam plans Mekong mega-dam in Laos
December 25, 2007
Energy-hungry Vietnam is planning to build a two-billion-dollar mega-dam on the Mekong river of Laos and to construct several other large hydropower projects in the neighbouring country.

Laos now operates fewer than 10 dams but is considering about 70 more projects. The largest now under construction is the French and Thai-built Nam Theun 2, set to go into operation in late 2009.

The World Bank-backed project -- a 1,075 megawatt (MW) dam worth 1.45 billion dollars -- is now the largest Lao infrastructure project, but the planned Mekong mainstream dams would be even bigger.

The Luang Prabang dam, slated for operation in 2014, would have a capacity of 1,410 MW, under a memorandum of understanding Laos signed with the PetroVietnam Power Corporation in mid-October, a Lao government website says.

Only China has so far dammed the river, known in Chinese as the Lancang, while lower-Mekong countries have built hydropower projects on tributaries of the 4,800-kilometre (2,980-mile) long waterway.

China is planning eight Mekong dams totaling over 16,000 MW, of which two have been built and four are under construction, potentially impacting riverside communities in Myanmar, Thailand, Laos, Cambodia and Vietnam.

Vietnamese companies in Laos also plan to start building the 400-million-dollar 290 MW Xekaman I dam next year, set for completion by 2012, state media has reported.Another dam, the 270-million-dollar, 250 MW Xekaman 3, is now under construction and set to transfer power across the border by 2009, while three more dam projects are now being studied, said the Vietnam News Agency.
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Siam Commercial Bank expands in Cambodia
Tuesday December 25, 2007

Siam Commercial Bank will link its IT and ATM networks with its Cambodian subsidiary to help support business expansion in Cambodia.''Cambodian Commercial Bank has a strong brand and has posted growth averaging 15% per year.

We expect to see the same growth this year,'' he said. The bank currently has total deposits of more than $100 million, of which 90% is in US dollars and the rest split between Thai baht and euro deposits. Total assets are expected to reach $200 million by the end of 2008.

Cambodian Commercial Bank currently has paid-up capital of $13 million, 100% owned by Siam Commercial Bank.

It employs 80 people in Phnom Penh and its branches in Siem Reap, Battambang and Sihanoukville. SCB also has branches in Singapore, Hong Kong and Laos, as well as a 33% share in VinaSiam in Vietnam.

Thai companies had invested in the sugar, hotel, autos and auto parts sectors.
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ADB, Sweden to help Mekong region in power trade

Dec. 24 -- The Asian Development Bank (ADB) and Sweden are helping to set up an institutional framework to support competitive regional power trade in the Greater Mekong Sub-region (GMS).

The framework will ensure long-term stable and mutually beneficial electricity supply to six GMS members, including China, Cambodia, Laos, Myanmar, Thailand and Vietnam, the Vietnam News newspaper reported Monday.
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Hunting game for foreign tourists not decided yet
Dec. 21 -- The Cambodian government has not decided yet for the project of hunting game for foreign tourists in forests of the Mondul Kiri and Ratanakiri provinces, which was requested by Spanish firm NSOK Safaris, Cambodian Minister of Environment Mok Mareth said Friday.

"Our animals have just recovered and they had miserable lives like Cambodian people during and after the civil war. We do not want to see our animals in danger or in extinction," Mok Mareth told reporters at the National Assembly.
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QSR in joint venture to open KFC Cambodia
KUALA LUMPUR: QSR Brands Bhd has signed an agreement with Royal Group of Companies Ltd (RGC) and Rightlink Corp Ltd Hong Kong (RCL) to form a joint venture company to operate the Kentucky Fried Chicken Restaurant (KFC Cambodia) business in Cambodia.

In a filing with Bursa Malaysia, QSR said the new joint venture company; Kampuchea Food Corp Ltd (KFCL) would be responsible for the operations of KFC Cambodia.
It said the new company would have an initial paid-up capital of $1.6 million with QSR holding 55% equity, RGC 35% and RCL the remaining 10%.
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Treaty Reduces Procedures for Regional Transport
The National Assembly ratified Wednesday a treaty that will by 2010 reduce procedures for people traveling and goods being transported between Cambodia, China, Laos, Burma, Thailand, and Vietnam.
Current border checks involve seven steps by custom officials, which slow down cross-border transportation. The agreement will reduce the process to a single procedure.
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Details released about Sihanoukville islands development lease
The government has released the details of two private companies that have been given permission to develop two of the 22 islands of Sihanoukville. The 99-year lease agreements were inked yesterday by representatives of the government and private firms.
Commerce Minister and Deputy Chairman of the Council for the Development of Cambodia (CDC) Cham Prasidh signed one agreement with Kith Meng, CEO of the Royal Group, to lease the 7,826 hectare Koh Rong island as an ecotourism resort which will include an airport, roads, a water system, a hotel and other infrastructure.

Koh Russey is owned by the Singapore-based holding City Star Private Equity Asia company signed another lease on a 76 hectare portion of the 137 hectare Koh Russey island. The company also won rights last year to develop a portion of Takeav Island.

Suon Sithy, secretary-general of the CDC, said the Koh Rong plan is the bigger development, estimating its value at over a billion dollars.
Plans for the development of Koh Rong must be submitted to the CDC for approval within 18 months of the signing date, Suon Sithy said. The US$48 million Koh Russey development plan must be submitted within on year, he added.
Both developments will be subject to stringent environmental protection requirements, Suon Sithy assured.
“Investment and protected areas must be clearly identified in the master-plans to avoid any deforestation on the islands,” he said.
So far, the ten islands have been leased for ecotourism. In July 2007 the government agreed to lease five islands in the Gulf of Thailand for US$627 million.
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