March - August 2008 news

NBCU Asian Channels Suite Heads to Cambodia
September 2: NBC Universal Global Networks will launch its package of four Asian channels—SCI FI, Universal Channel, Hallmark Channel and KidsCo—in Cambodia beginning September 9 on Star Digital TV.

This makes Cambodia the second country in the Asia-Pacific region to carry all four channels after Singapore and the third country to launch channels this year. All four will be available on Star Digital TV, while SCI FI and Universal Channel will join Hallmark Channel on Phnom Penh Municipal Cable & Optical TV sometime in October.
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Yamaha to establish Cambodian motorcycle factory
September 2, 2008

Japanese companies say they will establish a motorcycle production plant in Cambodia to begin in October. The US$11.5 million venture is 70 % owned by Yamaha Motor, with Toyota Tsusho taking a 20% stake and Kong Nuon Import & Export retainining 10% expected to begin full domestic production of new bikes in 2011. YMKH will take over operations at Asia Motors' factory and its sales network, adding the company will acquire a 94,890-square-metre lot in the Phnom Penh's special economic zone.

The aim of the new factory will be to reduce costs and lead time through complete knock-down manufacturing within three years.

For the first year, the plant will manufacture about 30,000 motorcycles, with the goal of gaining about 30 percent of the total market share in the next few years. It also plans to employ 400 workers when it is in full operation.

However, this is not a concern of its main competitor Honda NCX which has sales increased 30% year-on-year and this year’s sales are expected to increase two or threefold.

The current rapid economic growth in Cambodia shows a growing demand for motorcycles, with sales reaching 130,000 units in 2007, with forecasts of 250,000 units by 2010 and 500,000 units by 2015, said managing director Matoba Michifumi.
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Phnom Penh Casino Operator Posts Results

NagaCorp, operator of the Naga World Casino in Phnom Penh, announced a US$25 millionprofit in the first half, up 27 percent year-on-year, the company said in its earnings report. Naga is Phnom Penh’s largest casino and holds a 70-year monopoly.

Naga shares trade on the Hong Kong stock exchange, marking it Cambodia’s only listed
company. It employs 2,424 staff, up from 1,564 in the first half of 2007, said the company. Revenues surged 68.5%. Naga plans to add 48 more tables in the next 2 months and will eventually have 700 hotel rooms, and 300 casino tables.
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World Bank appoints new country manager in Cambodia

PHNOM PENH, Sept. 2 (Xinhua) --

The World Bank has announced the appointment of Mr. Qimiao Fan as Country Manager of the World Bank Country Office in Cambodia, said a press release received here on Tuesday.

Mr. Fan's appointment is effective Sept. 1, 2008, it said.Mr. Fan, a Chinese national, joined the World Bank in 1991 through the Young Professionals Program and worked as a country economist on Russia during the crucial years of Russia's early transition, the release said, adding that he also worked briefly in the World Bank's Africa Region and Investment Department.In early 1998, he took leave from the Bank and went to work as a senior executive in the private sector in China, before returning to the World Bank in late 2002, it said.
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PPSEZ officially inaugurated.

The Phnom Penh Special Economic Zone (PPSEZ) was officially inaugurated on Sept 1. PPSEZ covering an area of some 352 hectares about 18 kilometres outside Phnom Penh in Kandal province located along National Road 4. The zone’s industrial land price has been fixed at a cost
of $50 per square metre. PPSEZ was founded in April 2006 with investments of $92 million.

Currently there are 22 local and foreign firms investing in PPSEZ, including 9 companies that have been approved by CDC and 7 others have begun construction on plants manufacturing garments, cartons, shoes, Yamaha motor.

The one-stop office will cut time to three days for a simply $1,700 fee to get government approval for any investment project.

Cambodia currently has 19 licensed Special Economic Zones. Most are located near the borders with Vietnam and Thailand.
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College Scholarships Increase As Education system Grows

The Cambodia Daily, By Prak Chan Thul

For the upcoming academic school year, 3,260 scholarhips are being offered at state and private universities to students who received grades A through D on their high school examinations.
Education officials said last week that more than 70 % of the 78,048 students who took the examinations passed.

Amid the usual claims of widespread cheating, a total of 55,178 students received grades A through E, considered passing grades, though an E does not qualify for scholarships.
Education Ministry Secretary General Koeur Naileang said there were 432 B’s, 3,269 C’s and 14,769 D’s. Two students received A’s.

The Royal University of Phnom Penh will provide 920 scholarships, while University of Health Sciences in offering 90, the Royal University of Agriculture is offering 28 and the National
University of Management is offering 320.

The Royal University of Law and Economics has 330 spots, Moharishi Vedic University has 270, the Institute of Technology of Cambodia has 80, and 90 are available at the University of Fine Arts.

Svay Rieng University is offering 270, Bantey Meanchey University is offering 300 and Battambang University has 250 openings.

Mekong University, the first private institution to make scholarships available, is offering 60.
Only 2,383 scholarships were offered last year.
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$2.5 Billion Earmarked for Infrastructure Projects Nationwide
Sep 2, 2008 By Yun Samean, the Cambodia Daily

The Council of Ministers has approved $2.49 billion in spending for the Ministry of Planning, which will go toward 552 development projects nationwide over the next three years.
According to a Friday statement from the Coucil of Ministers, the “public investment” projects, which include roads, bridges, schools, irrigation systems and hydroelectricity dams, will be implemented from 2009 to 2011 and will be funded by the government and international donors.

So far, the government has committed to contributing $417 million, while donors have agreed to contribute $985 million in grants and loans, according to the statement, which added that the remaining $1.09 billion has not yet been secured.

Ministry of Planning Secretary of State Ou Orhat said by telephone Monday that the group of projects are part of the national development planning strategy for 2006 to 2010, which was approved by the National Assembly with the aim of increasing public and private foreign investment in rural areas and small and medium-sized enterprises.

“We want to build roads for communes to connect rural areas to the urban areas,” he said. “We want to build irrigation systems to sluice water into the rice fields to make sure that the rice is cultivated two to three times yearly.”

Ou Orhat said he is not concerned that nearly half the funding for the projects has not been secured.

The 2006 to 2010 planning strategy, which was approved by the National Assembly in May 2006, predicts that the nation’s unemployment rate would dwindle to less than 4 percent by the end of the decate and that the number of those living below the poverty line will fall to 25 percent of the population from the current estimated level of about 32 percent.

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Phnom Penh dredging plan gets green light from government
Monday, 01 September 2008, Written by George McLeod

LOCAL developer Brothers Investment Group (BIG) has been granted permission from the Phnom Penh Autonomous Port and two government ministries to dredge the Mekong and build barriers along the riverside, in a massive project to make the waterway more accessible to large boats.

But conservationists say the US$300 million operation was never put to public scrutiny and did not appear to have enough authorisation from the government.BIG has obtained permits from the ministries of Water Resources and Public Works and Transport, as well as from the port, which will "manage this project in co-operation [with BIG]", according to a document signed by port director Hei Bavy.

"This development plan ... will turn this area into an economic zone," the document said.

"Especially to prevent the threat from flooding during the rainy season." Another letter signed by Deputy Prime Minister Seng Lim Nauv says the Brothers Group would "manage and extend the port operation zone from Chaktomuk to Neak Leung and Chaktomuk-Tonle Bat along the Mekong River".

A third letter signed by Senate President Chea Sim states that the project would include "develop[ing a] caisson wall to prevent the continued soil erosion on [the] Mekong and Bassac River."

The project would be supported by World Link Japan and the Development Bank of Japan, according to documents.But an official from a leading conservation group said that environmental and civil society organisations had not been notified of the dredging project.

OUR NUMBER-ONE CONCERN IS IMPROVING PEOPLE’S LIVES WITH THIS PROJECT

"We have heard rumours about a dredging operation, but have seen nothing disclosed so far.... A project of this scope would definitely require public consultation," said the official, who did not want to be named.

"We know that there is a broader plan to dredge the [Mekong] to support the mining industry in the north and allow large container ships to travel up the river....There has been no transparency around these operation.

"Documents seen by the Post contained no permit from the Ministry of Environment, which the conservationist said would be required for a project involving major dredging operations in the Mekong.

A spokesman for Kennertec, a Korean mining company with a concession in Preah Vihear province, said that plans have been afoot to dredge the Mekong, but that they involve Hyundai Group and not BIG.

BIG chairman David Chanaiwa was not available for comment, but in an interview last week, he said that his company had carefully studied the environmental impact of the dredging project, and had produced an environmental impact assessment.

"Our number-one concern is improving people's lives with this project," he said. Chanaiwa said that erosion from dredging the river is a serious concern for his company and he urged the government to allocate $300 million to reinforce the banks.

Port director Hei Bavy said in an earlier interview that the port would partner with the government and private companies to dredge the Mekong. The project would involve digging a seven -metre channel and clearing about five million cubic metres of sand, he told the Post. ADDITIONAL REPORTING BY KAY KIMSONG
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Mini-city and deep port in the works, says local developer

The new commercial centre would include high rises and a major dredging operation stretching from Phnom Penh to Vietnam

CAMBODIA's largest-ever property and industrial complex is expected to get under way, according to David Chanaiwa, chairman of Brothers Investment Group, which is behind the development.

The massive US$1.6 billion project would include a deep-water port on the Mekong River, a 60-storey residential high rise, a marina and a digital media centre. Most ambitious is the company's plan to dredge the Mekong from Phnom Penh to the Vietnamese border to allow heavy cargo ships to travel year round.

"The project will reduce cargo costs ... a lot of traffic will be redirected from roads to the Mekong," Chanaiwa said.He said that the initiative is backed by Korean and Japanese investors, but would not specify their names.

Chanaiwa's company has been in business for one year, and he would not reveal its other investments, only saying it is backing the Royal De Castle building.He said the company has received approval from the ministries of public works and water resources to commence dredging, starting near Phnom Penh, but that the government had not agreed to reinforce the riverbank.

"The government needs to act now to protect the riverbank from erosion," Chanaiwa said.He added that he has urged the government to spend $300 million to $500 million on an embankment to protect the shoreline from erosion.

The mini-city would be built on reclaimed land from the river, said Chanaiwa, emphasising that local residents would not be forcefully evicted from the site.

But environmentalists caution that dredging could be detrimental to the Mekong. "The Mekong is a very sensitive ecosystem - dredging the bottom would seriously affect the fish migration routes," said Bunra Seng, country director for Conservation International.

One key business leader said that he had heard nothing of the proposed project and that he doubted its credibility.

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Regional tourism officials vow to protect environment

Greater Mekong Subregion members to draft comprehensive tourism development plan that highlights eco-tourism

VAST REGION

The Greater Mekong Subregion includes about 320 million people, the vast majority of whom live subsistence lifestyles in rural areas. Officials hope that eco-tourism would bring both jobs and infrastructure to these communities and lift them out of poverty.

Regional tourism and environmental officials have agreed to better protect their countries' natural resources in a bid to encourage eco-tourism, Tourism Minister Thong Khon told the Post Sunday following a meeting last week of members from the Greater Mekong Subregion (GMS).

"All beaches, mountains, protected forest areas, bird and animal sanctuaries are to be protected for a long-term and sustainable development," Thong Khon said.He added that participants at the GMS meeting pledged to work together towards a comprehensive tourism development plan."

As tourism continues to play an important role in the development of Cambodia, it is essential to secure a framework that allows for dialogue across the instrumental sectors of tourism, environment and the private sector," said Arjun Goswami, country director for the Asian Development Bank, which was present at the meeting."I am very encouraged to see that steps are being taken to further strengthen this collaboration," he said.

The Kingdom's tourism sector continues to post annual growth of around 20 percent, bringing millions of visitors and much-needed revenue to the country.But some observers warn that rapid growth in the sector may come at the expense of Cambodia's natural attractions, which risk over-development if the sector is not properly regulated.

Some large resort projects in protected areas or national parks have already raised the alarm for some.However, their supporters say these can be integrated with their surroundings, while also bringing jobs and infrastructure to some of Cambodia's most isolated areas.

"Cambodia has so many untouched areas," Thong Khon said."Fifty percent of world travelers target natural areas, so eco-tourism must be promoted," he added."Angkor Wat remains Cambodia's most popular attraction, but there are many eco-tourism destinations in the coastal areas or in the provinces near Vietnam and Laos that need to be protected."

Om Pharin, vice president of the Cambodian Association of Travel Agents (CATA), said the private sector was working with GMS members to broaden the region's tourism sector to take advantage of all that the countries have to offer."Not every tourist loves temples or other cultural attractions," Om Pharin said."Nature tourism is more attractive" to many people.

The GMS is comprised of Cambodia, China, Myanmar, Thailand, Laos and Vietnam.
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Star-Cell to go national by 2009, CEO says

MOBILE operator Star-Cell says it aims to increase its coverage to all 24 provinces by 2009 from eight currently, according to CEO Adam Cabot.He said that Star-Cell would add three provinces in the very near future for its nearly 100,000 subscribers.

The company operates on the 1800MHz frequency. The base stations would be owned and operated by Star-Cell. Industry sources say a base station costs about US$30,000 to build.Cambodia's mobile penetration rate is about 25 percent, and has grown by about 15 percent per year, according to industry figures.

Cabot said that Cambodia's mobile market has room for expansion. "Our subscriber base in growing at roughly 35 percent monthly," he wrote in an email. Cabot said that the telecom market in Cambodia is highly competitive, but that growth is expected to increase.

The company recently teamed up with Ericsson to become the first-ever company to introduce solar-powered base stations.


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Laos, Cambodia firm up investment, tourism ties
01 September 2008 by Kay Kim Song, Phnom Penh Post

Officials from both countries expect new international checkpoints will help improve relations by expanding cross-border tourism and trade

CAMBODIA and Laos have agreed to open two new international checkpoints in an effort to boost tourism, trade and investment opportunities, officials from both countries told the Post.

The checkpoints will be located along the border between Cambodia's Strung Treng province and Champassak province in Laos, and between Ratanakkiri province and Laos' Attapeu province, said Sonexay Siphandone, governor of Champassak province.

"We are preparing for two international gateways in areas where we currently have few border administration offices," Sonexay said during an interview at the Laotian embassy in Phnom Penh. He said both countries will build new terminals, border police offices and facilities for all related authorities.

The Cambodia-Laos-Vietnam (CLV) program is pushing for expanded service sector cooperation between Cambodian and Laos by making it easier for tourist and commercial vehicles to cross the border.

"In the future, we will build a modern international gateway for tourism, trade and investment," said Sonexay, who recently led a 90-member delegation on a caravan tour from Laos through Siem Reap and Phnom Penh to Ho Chi Minh City and back to Laos - a trip covering more than 2,200 kilometres.
The more international border crossings open, the more trade will increase.

The tour aimed to strengthen relationships and exchange experiences, as well as to explore agricultural trade opportunities, the Laotian governor said. "We've never tried to organise a proper exchange program like this before, but now we're paving the way for greater development.

" Road links between Cambodia and Laos have improved in recent years with the linking of National Road 17 in Stung Treng and Laos' National Road 13 in Champassak."We are urging investors, traders and companies to forge stronger business relationships," Sonexay said. "We bring tourists from Cambodia to Vientiane and Luang Prabang."Cambodia and Laos currently allow tourists and residents with automobiles to cross each others' borders visa-free.

"We have provided easy access between the countries," he said, adding that trade relations will improve once additional agreements are implemented. "The more international border crossings open, the more trade will increase."Om Pharin, vice president of the Cambodia Association of Travel Agents (CATA), said his organisation, which includes 166 travel agencies, is interested in promoting package tour sales for local residents and foreign travellers going to Laos."We have waited many years for this kind of opportunity, and now we have the infrastructure to support it," Om Pharin said.He said both nations should add more international checkpoints and encouraged authorities to improve their service sectors with more hotels, guesthouses and other tourist-related services.The CLV and Cambodia-Thailand-Laos (CTL) program development zones will be key to future agreements across the region, Om Pharin said.New financial ties are also in the works. In Channy, the CEO of Acleda Bank, which recently opened three new branches in Laos, said there is considerable room for growth in the banking and business sectors, and that growth would be linked to improvements in tourism services and transport infrastructure.Trade revenue between Cambodia and Laos currently stands at only about US$1 million, but the tourism sector could bolster this number significantly in the future, according to a commerce official.Kong Sophearak, director of the Statistics and Tourism Department of the Ministry of Tourism, said Laotian visitors to Cambodia have sharply increased this year. In the first seven months of 2008, some 27,161 tourists visited Cambodia from Laos, an increase of more than 167 percent over the same period last year, when that number was 10,144."I think improvements to road access between the two countries and an increase in the availability of tour packages are the main reasons for the spike in tourism," Kong Sophearak said.Tourism remains one of the Kingdom's few viable industries, with two million visitors bringing in more than $1 billion last year. The government hopes to attract three million people annually by 2010.
Korean bank to open in Phnom Penh
Phnom Penh Commercial Bank, a joint venture between Japanese and Korean investors, opens officially in Phnom Penh today. The opening ceremony for the bank, which is located along Monivong Boulevard near the Vietnamese embassy in Cambodia , will be presided over by National Assembly President Heng Samrin and Chea Chanto, governor of the National Bank of Cambodia.
PPCB is a joint venture of Hyundai Swiss Saving Bank of South Korea, which holds a 60 percent share, and SBI Holding Inc of Japan, with a 40 percent share. It aimed to have $15 million in capital upon startup and hopes to invest in mining, infrastructure and stock exchange.
South Korea is the top foreign investor in Cambodia, with investments to March 2008 totaling $1.46 billion.
High growth in Cambodia and a slow economy in Korea have attracted Koreans to property, mining, infrastructure and logistics.
Draft law on public investment and IPR committee approved.
The Council of Ministers held a plenary meeting August 29 at its temporary headquarters in the Ministry of Foreign Affairs and International Cooperation, with two drafts on public investment project 2009-2011 and the formation of a national committee on Intellectual Property Rights (IPR) approved, newspapers reported over the weekend.
The Ministry of Planning, which is in charge of drafting the investment project, told the meeting that there are a total of 552 public investment projects for the next three years which need a total capital of US$2.49 billion, of which US$1.402 billion has been pledged by Cambodia (US$417 million) and its development partners (US$985 million). To ensure the projects run smoothly, the ministry announced that the government needs additional capital of US$1.088 billion, reported Rasmei Kampuchea.
The draft sub-decree on the formation of national committee on IPR, proposed by the Ministry of Commerce, was also adopted with the ministry requesting officials of the relevant ministries should cooperate with its officials to manage the work well and meet the requirement of the agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS).
TRIPS is an international agreement administered by the World Trade Organization (WTO) that sets down minimum standards for many IPR regulations.

Rattanakiri Airport Expansion Could Begin This month
Construction on the expansion and upgrading of the airport in the Rattanakiri capital of Banlung could begin as early as this month, Deputy Provincial Governor Chey Sayoeurn said Sunday. The $7 million expansion project, which is being funded by the Asian Development Bank, had been put on hold last year to develop a new plan that will expand the airport by 4 hectares, Chey Sayoeurn said.

Under the expansion plan, the airport will add a new 1,800-meter runway, a new departure building, and a new air-traffic control tower. These additions will displace an estimated 42 families who live near the airport, which currently serves only chartered flights.
Driving from Phnom Penh to Ratanakiri takes about 12 hours, whereas a flight takes about 45 minutes.

“If the airport is finished, tourism would increase seven times over the last year,” when the province hosted about 70,000 tourists, said Provincial Tourism Director Nget Pitou.
Oil Projected To Be Small Part of Total Revenue
By Yun Samean
and Emily Lodish
the Cambodia Daily

When Cambodia struck oil several years ago, it was billed as a watershed event that was going to bring the country billions of dollars—and with that either a terrific blessing or a horrible curse.

But according to Finance Ministry Secretary-General Hang Chuon Naron oil production would start in 2011 and bring in an additional $200 million to $300 million to Cambodia’s total revenue—figures that pale in comparison to garment exports, which was $3 billion last year and is projected to be $3.7 billion in 2011, tourism, which was $1.2 billion last year and is estimated to reach $2 billion by 2011, and rice export, which was $800 million currently and is expected to reach $1.4 billion.

However, the opposition lawmaker Son Chhay said while oil revenue might only be about $300 million the first year, it would soon reach $1.5 billion.

New 600 km road to link four Cambodian provinces along Thai border
PHNOM PENH, Sept. 1 (Xinhua) -- Cambodian military officials hoped a new road will bolster local populations and improve security in four provinces along the Cambodian-Thai border, local media reported Monday.The more than 600 km road will link Banteay Meanchey, Oddar Meanchey, Preah Vihear and Stung Treng provinces, the Phnom Penh Post said."We will build the road through the four provinces as soon as the rainy season passes," Kvan Siem, head of general command headquarters for military engineers, was quoted as saying."I received orders from Prime Minister Hun Sen to build the road to help people settle their homes along the border and farm their lands," Kvan Siem said, adding that he completed a study of the projected gravel road earlier in August. The proposed road will run between one and four kilometers from the Thai border, with a second road planned closer to the border once Thailand and Cambodia complete negotiations over new border demarcations.Kvan Siem said the road is part of larger development plans that officials hope will modernize the border provinces and improve security.

SCG plans to raise output in Cambodia
$200m set aside for cement subsidiaryNAREERAT WIRIYAPONG
PHNOM PENH : Siam Cement Group (SCG), Thailand's largest industrial conglomerate, is planning to invest $200 million to more than double the capacity of its cement factory in southern Cambodia.
Kampot Cement Co Ltd, a joint venture in which SCG holds 93% and a Cambodian partner the rest, aims to lift its annual capacity to three million tonnes by 2010 from the current one million, according to the Thai embassy in Phnom Penh.
So far, SCG has invested $127 million in the facility located 148 kilometres southwest of Phnom Penh and within driving distance of the Cambodia-Vietnam border.
''The increase is to purely serve the domestic Cambodian market where demand for cement has risen sharply from ongoing construction projects. The property sector is also booming here,'' a high-ranking embassy official said.
Cambodia still imports cement from neighbouring countries including Thailand. But given the current high oil prices that have pushed up transport costs, local cement producers would gain more competitive advantages.
''Consequently, the expansion at Kampot has become more feasible for the time being,'' the official said.
SCG's Thai headquarters declined to confirm the expansion plan, saying the project had been studied.
According to the embassy, construction materials are the main items Cambodia import from Thailand, along with sugar and farm and consumer products.
Thailand last year recorded a 70% rise in exports to Cambodia with a total value of $1.4 billion. The figure does not include about 30 billion baht in cross-border trade.
According to SCT Co Ltd, an international trading arm of SCG, Thailand ranks third among the trading partners of Cambodia after Vietnam and China.
On the investment side, Thailand has yet to play an active role in Cambodia with South Korea, China and Malaysia taking the lead. Apart from SCG, major Thai businesses operating in Cambodia are Charoen Pokphand (CP), as well as are Siam Commercial Bank and Krung Thai Bank.
The Cambodian government provides incentives for foreign investors such as tax-free machinery imports and corporate income tax holidays. It also promotes Special Economic Zones that comprises an export free zone, container yard area and other facilities for industrial zones.
The Thailand-funded road Number 48 in Koh Kong is expected to facilitate more business links between the two countries by strategically turning Koh Kong into the gateway to Phnom Penh.
Siam Cement shares (SCC) closed on Friday on the Stock Exchange of Thailand at 165 baht, up one baht, in trade worth 65 million baht.
Cambodia introduces new regulations for developers and real estate agents
Saturday, 30 August 2008 Property Wire
Cambodia introduces new real estate regulationNew regulations are being introduced in Cambodia to protect property investors from fraud as the country's real estate industry booms.Developers will be required to deposit a sum with the National Bank of Cambodia before being allowed to begin construction on a project under new regulations aimed at curbing fraud.Payments from buyers will be held in this account with the aim of making the whole payment system more transparent and avoid developers using money illegally. It will also allow the government to intervene if developers fail to honour their contracts.Real estate agents and developers will have to obtain a licence from the Ministry of Economy and Finance to sell projects and face legal action and even closure if they fail to do so.The new rules mean developers and agents must comply by the end of September, a spokesman for the Economy and Finance ministry said.There will be costs to the developers and agents involved but officials believe this will deter cowboys. 'Real estate developers will be required to deposit 2% of the projects' total value at the National Bank of Cambodia,' said Mao Pao deputy chief of the ministry's real estate division.'We will require a developer to open a housing development account at any commercial bank to enable buyers to make payments through the bank,' he added.The price for the new licences for selling or renting will depend on the scale of the project. Until now developers only needed a letter of permission from the Ministry of Land Management, Urban Planning and Construction and an investment licence from the Council for the Development of Cambodia.There are estimated to be around 100 developers currently operating in Cambodia, many of them quite small. Some said the new regulations will be too costly and put them out of business.Capital Phnom Penh has undergone an unprecedented construction boom over the last several years, including a number of residential and commercial mega-projects that are set to transform the capital from a sleepy backwater.

New licensing rules to be set for property developers
Friday, 29 August 2008, Nguon Sovan

2%of total cost
This is the amount developers will be required to deposit with the National Bank of Cambodia before being allowed to begin construction on projects under new regulations aimed at curbing fraud.

Real estate developers in Cambodia must now obtain licences from the Ministry of Economy and Finance or face legal action for unauthorised projects, according to a ministry announcement dated August 19."Legal and physical entities who develop real estate such as the construction of houses, flats, and the parceling of land plots for sale or rent must apply for a real estate development licence from the Ministry of Economy and Finance," said the announcement, signed by Minister of Finance Keat Chhon.Developers who fail to get a licence by September 30 will be subject to closure and legal action, the announcement added.The price of the licence will depend on the scale of the project, officials said.Mao Pao, deputy chief of the ministry's real estate division, told the Post Wednesday that developers had before only needed a letter of permission from the Ministry of Land Management, Urban Planning and Construction, as well as investment licences from the Council for the Development of Cambodia.Developers also face changes in the financing of projects."Real estate developers will be required to deposit two percent of the projects' total value at the National Bank of Cambodia," Mao Pao said."We will require a developer to open a housing development account at any commercial bank to enable buyers to make payments through the bank," he added.
THE GOVERNMENT SHOULD CHECK ITS INTERNAL IRREGULARITIES FIRST.
He said that developers would not be able to withdraw money from development accounts without approval by the bank and relevant ministries and that the government could intervene if companies failed to honor their contracts.Mao Pao said the new regulations were part of a move by the National Assembly to tighten the Kingdom's oversight of real estate developers in the wake of a 2007 project involving the Chinese-owned Long Chhin (Cambodia) Investment Ltd.The company had filled in Kob Srov Lake on the outskirts of Phnom Penh for a luxury housing complex.The government charged the company with illegally developing the lake and demolished the estate, while company officials fled the country and buyers lost millions of dollars.Mao Pao said licensing fees would be determined based on the scale of the development.He added that there are an estimated 100 developers currently working in Cambodia.Some developers strongly oppose the new regulations.Small operators upsetKong Vansophy, general manager of Dream Town in Dangkor district's Choam Chao area, told the Post the new regulations would put pressure on small contractors."It is likely [the regulations] could make small companies with no reserve capital go bankrupt," said Kong Vansophy, whose Dream Town project comprises 50 flats and an investment of US$1 million. "This announcement is unacceptable," said a representative of Grand Phnom Penh International City, who asked not to be named."It is unreasonable and violates the freedom of developers and customers."He said companies should not be penalised over the Long Chhin case, because the government had also approved that project."The government should check its internal irregularities first before problems come up and not make others suffer," the representative told the Post.Phnom Penh has undergone an unprecedented construction boom over the last several years, including the start of at least five satellite cities - residential and commercial mega-projects that are set to transform the capital from a sleepy backwater.However, progress has been slow, developers admit, saying the rising cost of construction materials has hindered work on large-scale projects. Despite this, demand remains high, they say.
Cambodian banks partner with Visa to launch integrated ATMs
Written by George McLeod and Nguon sovan
System to allow customers to use cash points at competing banks, raising the number of available ATMs and making banking easier
FOUR of Cambodia's key banks have partnered with Visa to launch the Kingdom's first integrated ATM system that bank officials say will allow customers to make withdrawals and check balances at competitor banks without facing international charges from 86 cash-dispensing machines. "[The system] will make it easier to perform financial transactions ... and provide greater convenience," said Truong Minh Ha, the country manager for Visa, which set up the Easy Cash system with Canadia Bank, Mekong Bank, SBC and Union Commercial Bank.Visa operates VisaNet, the world's largest retail electronic payment network, connecting 16,000 banks and 1.6 billion cards, with access to 29 million merchants and one million ATMs around the world, the company said in a statement."The VisaNet system will increase the number of ATMs available to our customers ... we are looking to have up to 126 ATMs connected under VisaNet before the end of 2008," said Luis Chen, vice president of Canadia Bank, in a statement.Many Cambodian ATMs are already linked to the international Plus system, which allows for cross-bank withdrawals and balance checks. But Plus requires customers to pay international rates.
THE [EASY CASH] SYSTEM WILL ALLOW FOR RAPID, CHEAP AND SAFE MONEY.
"Easy Cash will be priced for the local market ... this system is for Cambodia and has a different set of relations," said Stuart Tomlinson, Visa's Malaysia country manager.ATMs are sprouting in Cambodia from 50 in January 2007 to 231 in mid-2008.
SBC Executive Vice President Diaz Kun said the four banks began planning to link their ATMs a year ago, and several other domestic banks also considered joining but have declined for the time being.

Using another bank’s ATM incurs a $0.50 service charge, Kun said.

A single ATM costs between $30,000 and $40,000 to establish.
ANZ Royal Bank Chief Executive Officer Stephen Higgins said his bank, the industry leader with 120 ATMs, didn’t need to join the consortium.
“We’ve got about half the ATMs in the market, and our customers don’t have to pay 50 cents touse them,” Higgins said by telephone. Acleda Bank, Cambodia's largest bank in terms of the number of branches, said that the new system is a major step for electronic banking."Location and coverage [of ATMs] will increase. We are already nationwide, so it won't affect the number of provinces we are in, but it will increase access and convenience," said Acleda CEO In Channy. Acleda is an observer, but not a member of the network.Acleda is not part of the Easy Cash system, but has launched its own aggressive ATM campaign, issuing more than 130,000 cards for its branches around Cambodia, according to In Channy.------------
Cops learn lessons in fighting dirty money
Officials warn that weak regulations and booming casino industry could facilitate terrorist financing
POLICE and bank employees are undergoing training in how to combat money laundering, with an eye on shutting down possible routes for terrorist financing."Combating the financing of terrorism and anti-money-laundering is a new, hot and very important issue for the region," National Bank of Cambodia (NBC) Governor Chea Chanto said at the start of the three-day seminar that ends today.The event is being hosted by the NBC, with support from the Asian Development Bank and the Bank of Nagara Malaysia."The seminar is very essential for cooperation in the region, [and we] can learn from other countries' experiences," Chea Chanto said.He added that the discussions were aimed at developing a national strategy to fight dirty money.Twenty-eight police officials, bank employees and ministerial officials are participating in the seminar, which was also attended by UN officials. The US government has listed Cambodia as a major centre for money laundering, citing the low conviction rate for laundering cases.To date, only four laundering cases have been brought to court, raising concerns that the Kingdom's loose policing makes it an easy target for extremist groups seeking to build sources of clean funds.According to a March 2008 US State Department report, casinos, luxury goods and property are often used to launder money.The report adds, however, that while criminal organisations operate in Cambodia, no known terrorist organisations have used the country to launder money.In June 2007 the government approved new legislation on money laundering and terrorist financing giving the NBC far-reaching powers to investigate other banks.NBC Director General Tal Nai Im told the Post Tuesday that the seminar would have to be followed by more international support. Outside organisations have provided significant funding for Cambodia's anti-laundering efforts, but say that the Kingdom needed to introduce new methods of stopping the practice.
Kampot pepper poised for greater global recognition
Written by Nguon Sovan and Brendan Brady
Thursday, 28 August 2008
Government to register local spice as a geographically indicated product, branding that is hoped to give it a niche in upscale international markets.
nce cherished by gourmets around the world, Kampot pepper is on the cusp of a second international debut that could open the door for more uniquely Cambodian products finding greater access to global markets.The Commerce Ministry's Department of Intellectual Property plans by the end of the year to register Kampot pepper as a product with a geographical indicator, or GI, said Mao Thora, ministry undersecretary of state.GIs allow products to gain brand recognition - a key element to niche marketing for items that might otherwise get lost in the increasingly internationalised food markets."The required report identifying the unique qualities of Kampot pepper is 90 percent complete," he told the Post Monday."Now, we are just waiting for the new government to form and approve the draft law to protect geographically indicated products before the bill goes to the National Assembly for approval," he added."After that, Kampot pepper will be [Cambodia's] first registered GI product." The Kampot pepper industry, which at the beginning of the 20th century was exporting several thousand tonnes of pepper to restaurants abroad each year, was devastated by Cambodia's decades of political upheaval. But this specific type of pepper has experienced a resurgence of popularity both at home and overseas, leaving it vulnerable to knockoffs and unscrupulous marketers."Currently vendors can lie and say they are selling Kampot pepper even if it is from another province because there is no identification system," Mao Thora said. "But when Kampot pepper gets GI status, it will be identified by a specific label," he added.The result, he said, would be a windfall for the Kampot pepper industry, now comprised of a series of small farms strung across the southern province. A Kampot pepper association is expected to be formed in October as the sector crystallises, said Prak Sereyvath, executive director of the agricultural development organisation CEDAC who also acts as a consultant for the Commerce Ministry's geographical indication initiative.
THAT DIFFERENCE IN QUALITY ALLOWS US TO MAKE A DISTINCTION IN PRICE.
"To register Kampot pepper as a GI product, it needs to have an association that facilitates relations between farmers and buyers," he said. International interestForeign organisations like FarmLink have been instrumental in Kampot pepper's branding and the resurrection of the farms that produce it.Started in 2006, the organisation sold 200 kilograms of pepper that year, mostly to local hotels, restaurants and gift shops, said FarmLink founder and CEO Jerome Benezech, adding that it doubled its sales in 2007.Since last month, FarmLink has been exporting Kampot pepper to France and Denmark, and expects this year to distribute six tonnes - four of those internationally - which would represent a significant portion of the country's pepper output.The small batch nature of the pepper, he said, was ideal for high-end markets: hotels, restaurants and specialised gourmet food shops."We target niche markets, not large-scale markets like supermarkets, because they match the quality of our product," he said. "Kampot pepper has a special quality that allows it to stand out, even coming from a small market. It has a reputation for being one of the best peppers in the world. The big distinction is aroma and the lingering taste in your mouth," he said."We would not have done it for any product, for a product that has no value-added compared to the same product in Vietnam where it is cheaper to do business," Benezech added. "When we have given it to Michelin-rated chefs, they consider it one of the best peppers," he said. Good for farmersFarmLink works with 120 small-scale farms in Kampot's Kampong Trach district that had previously had few buyers, let alone production contracts.The farmers lacked the two key ingredients for pepper farming: water and fertiliser, according to Benezech. "They were not getting high enough returns to afford the fertiliser they needed for high-quality product and productivity and they didn't have access to water," he said.But with help from FarmLink and several other NGOs like Bridges Across Borders and the AusAID supported Cambodia Agriculture Value Change Programme, pepper farmers began to see the benefits of more structured production geared towards wealthy foreign buyers."There's been a big change in the farmers. Now they are very conscious of the quality of their product, which they didn't think much about a few years ago," said Benezech, explaining that organisation was necessary to guarantee marketable supplies and an effective quality control. "That difference in quality allows us to make a distinction in price. [Farmers] are able to compete more strongly in the market." 50 grams for $8Benezech said that Kampot pepper sells for four times the amount of other brands of Cambodian pepper.A 50-gram bottle sells in Paris for US$8, while a one kilogram bag of pepper retails for $12 to $18 locally.Sixty-year-old Nguon Ly, who farms pepper in his one hectare plot of land in Kampong Trach district, said his crop yields reached 500kg this year."Pepper now has a market since FarmLink started buying, and now farmers in my village have all flocked to growing pepper because of the high market price," he said.This is an incentive for us to grow more," he said, adding that he is preparing to expand his operations.
Cambodia aims at 5 million tourists by 2015
Tourism Minister Thong Khon yesterday announced that, if the current growth rate continues, the number of tourists visiting Cambodia will grow to 5 million by 2015, newspapers report.
“ Cambodia predicts receiving 2.3 million tourists by the end of 2008. In 2010 it could welcome 3.2 million, and in 2015 we will receive 5 million,” Thong Khon said during the Strategic Environmental Assessment of ‘sCambodia Tourism Sector workshop held at the Cambodiana Hotel, Kampuchea Thmey reports.
The minister said that around half of visitors want to visit eco-tourism sites so they can relax in a natural setting, Cambodia Sin Chew Daily reports.
Thong Khon said that his ministry is developing prudent tourism development plans to ensure growth is sustainable. He stressed the importance of eco-tourism to sustainability, according to Kampuchea Thmey.
“ Cambodia currently has seven national parks and 23 protected areas … [so] we have diverse potential for eco-tourism development.”
The Commercial News: Cambodia– Vietnam trade soars.
Cambodian—Vietnamese bilateral trade reached US$900 million in the first half of this year and may increase to US$1.5 billion by year’s end, a three-fold increase over last year’s US$1.2 billion. At a commercial conference early this year, the neighbors revealed plans to raise this figure further to $2.3 billion by 2010, and $6.5 billion by 2015. Vietnam ’s main exports to Cambodia are garments, electronics, seafood and vegetables.
Lucky Market Group Slated to Open First Shopping Mall
By Kim Chan and Stephen Kurczy
The Cambodia Daily
Lucky Market Group is scheduled to open the doors to its first shopping mall today in Siem Reap town. LuckyMall, a 6,000-square-meter, three-floor shopping center, took two years to design and build, said Lucky Market Group Marketing Manager Michael Pasion.
Though miniscule compared with Phnom Penh’s 50,000-square-meter Sovanna Shopping Center, Cambodia’s largest shopping mall with 300 retail units, LuckyMall will house more than 20 stores, including grocery, toy, book and electronic shops, Pasion said.
And while this is Lucky’s mall, it will contain the fifth Lucky Supermarket in Cambodia, with four already operating in Phnom Penh, Pasion said Wednesday.
“Our target is local people and, of course, foreigners. Everyone is welcome to the shopping mall,” he said.
Siem Reap Chamber of Commerce Director Kong Pheng said that being Siem Reap town’s first mall, LuckyMall is likely to attract more tourists than locals. Located on Sivutha Street, LuckyMall is about 1 km from the town’s Old Market, but market vendors there said they were not worried by the new, high-end competitor.
“I have some concerns but not very many because we have different systems of selling,” said Hour Siek Pheng, owner of Angkor Market, explaining that his variety store sells wholesale and retail items, whereas LuckyMall is just retail.
Hour Siek Pheng also said he’s been around for four years and has a reliable customer base.
Lim Muoy Chheng, the owner of grocery seller 7 Bright Market around the corner, said her market is on a different street from LuckyMall, which she believes will buffer her from the new competition.
And regardless, she said Wednesday, she was planning to stop selling groceries soon anyway.
“I’m going to change business, perhaps next year, to selling souvenirs because along the street where my shop is located, they sell souvenir objects and make more money,” she said.

Commerce Minister Signs Asean Workers Agreement
Commerce Minister Cham Prasidh signed an agreement Monday allowing Asean nations’ accountants, dentists and doctors to work in each others’ countries, Agence-France Presse reported. The signing took place in Singapore during the annual meeting of Southeast Asian trade ministers, AFP reported. Last year the Asean trade ministers agreed to open their markets to create an economic model similar to the European Union. But as formal talks began Tuesday, Singaporean Prime MInister Lee Hsien Loong warned Asean trade ministers against “backsliding” by raising trade barriers or resorting to “protectionist practices.” While Lee applauded Asean for attracting $60 billion in foreign direct investment in 2007, up $20 billion from the previous year, he pointed out that China alone attracted $83 billion in direct foreign investment in 2007, Bloomberg reported. Commerce Ministry Undersecretary of State Mao Thora confirmed that Cham Prasidh was in Singapore this week but said he did not know the minister’s agenda. (Stephen Kurcy and Kim Chan)

Exports of Rice Prepared to Ship to Brunei: Official
Cambodia is preparing to export 50,000 to 70,000 tons of high quality rice to Brunei, Phuoy Puy, president of the Alliance of Cambodian Rice Millers Association, said Wednesday. Phuoy Puy said that he and Rural Development Bank President Sun Kunthor met Brunei Finance Ministry Secretary-General Dato Tado Kahazi Alidine Hazaipong on Tuesday. The Brunei official said that so far, his country had purchased rice from Vietnam and Thailand, but now wished to buy rice in Cambodia, Phuoy Puy said. The Brunei Finance Ministry secretary-general also met Cambodia’s Finance Minister Keat Chhon on Monday to discuss the plan and request Keat Chhon to help facilitate the export process. Keat Chhon said he also discussed possible Brunei investment in Cambodia in the future.
Increase Expected in Bilateral Trade in 2008: VN
By Stephen Kurczy
The Cambodia Daily
August 28, 2008
Bilateral trade with Vietnam is expected to exceed $1.5 billion in 2008, up from $1.2 billion in 2007, the Vietnam News Agency reported Monday.
Le Bien Cuong, the commercial counselor of the Vietnamese Embassy in Phnom Penh, told VNA that in the first half of 2007, Cambodia had imported more than $700 million worth of commodities from Vietnam and exported more than $140 million to its eastern neighbor.
Chuen Van, an adviser to the Minister of Commerce on foreign trade, said Wednesday that trade figures were not immediately available.
An official with the Commerce Ministry’s statistics department confirmed that Vietnam had recorded $1.2 billion in bilateral trade in 2007.
Cambodia increased rice exports to Vietnam because of widespread crop failures there, according to Finance Ministry Secretary-General Hang Chuon Naron.
From Pol Pot to pot of gold
August 28, 2008WA Today (Australia)
Kith Meng grew up in Australia as an orphan and a refugee from Cambodia's genocide. He tells of washing dishes and mowing lawns to make ends meet while living in Canberra. Being a poor oUSder made him stronger, he says, and unusually driven.Now, back in Cambodia since 1991, the 39-year-old has built his Royal Group into an empire that owns Cambodia's biggest mobile phone company and television network and is developing a $US2 billion ($2.3 billion) resort and casino on a fishermen's island on Cambodia's coast. The country's most successful businessman, he supports Prime Minister Hun Sen and benefits from his ties to the government, which granted the 99-year lease on the island for his resort. He is a Neak Oknha, an honor the royal family confers on a few of the wealthiest members of society.Thousands of former refugees, with their own harrowing stories, have returned to Cambodia, and now investors hoping to profit in the next frontier market -- a term Standard & Poor's coined for economies smaller or less developed than traditional emerging markets -- are coming to the country, too.The entrepreneurial drive and technical skills the returnees bring with them from overseas are breathing life into the economy. Three decades after Pol Pot exterminated the country's educated classes and emptied its cities, Cambodia's gross domestic product is just $US8 billion a year.''Suffering is my mentor,'' says Kith Meng, who fled the terror, first to a refugee camp in Thailand and then, in 1981, to Australia. Black-and-white photographs of his parents adorn one wall of his office in the capital city of Phnom Penh. They starved to death during Pol Pot's reign, when Cambodia's fertile countryside became the killing fields. They were two victims among the 1.7 million, or 20% of the population, who perished.Political and business leaders are grappling with poverty, inadequate health care, poor education and a lack of roads in this nation of 14 million. Corruption is slowing progress, says Joseph MUSmeli, the US ambassador.``The trick with a frontier market is getting the timing right,'' says Douglas Clayton, who founded Leopard Cambodia Fund LP last year and is raising $US100 million to invest in real estate, banking and agribusiness. ''Cambodia is really a discovery story -- and it's being discovered.''Growth spurtCambodia grew 9.5% a year from 2000 to 2007, the fastest pace in Asia after China, which expanded 9.9% a year. Political stability under the administration of Hun Sen, 56, has helped the Cambodian economy take off, says Bretton Sciaroni, chairman of the American Cambodian Business Council in Phnom Penh.Hun Sen has run the country since 1985. He came to prominence as a communist while the Vietnamese occupied the country, having pushed Pol Pot's Khmer Rouge from the capital. He strengthened his grip with a landslide victory for his Cambodian People's Party in July's parliamentary elections. An opposition leader has alleged manipulation of voter rolls, and the royalist party that shared power in the 1990s has been reduced to two seats in the legislature.Clothing exports and tourism have buoyed the tiny economy, though the revenue of any of the world's 500 largest companies would still dwarf Cambodia's annual economic output.A 1994 law to open the country to foreign investors has encouraged some to put money in. Approved foreign direct investment rose to a record $US4.4 billion in 2006, according to the Cambodian Investment Board. Investors can own 100% of a company, and they face no restrictions on taking money in and out of the country -- in contrast to China or Vietnam.Still, the business council's Sciaroni, a former lawyer at the White House under President Ronald Reagan, says perceptions of Cambodia have not caught up to the changes. In May, a US State Department official inquired on behalf of an executive if it would be safe to visit Siem Reap, home to Angkor Wat, the five-towered archaeological wonder.''He wanted to know about bandits and land mines,'' he says. ''I said this is ancient history.''Risk perceptionsIf Cambodia is about to take off on the same trajectory as Vietnam to its east or Thailand on its western border, the time to get in is now, says Robert Ash, a former executive at the asset management arm of insurer American International Group Inc.''Where the perceived risks are greater than actual risks, investment opportunities are the result,'' Ash says. ``Such is the case of Cambodia.''Investors familiar with Thailand and Vietnam have been among the first to spot the changes taking place in Cambodia.''In the past, when you went to a dinner party here, everybody would be talking about politics,'' says Leopard's Clayton, 47, who used to run the Thailand office of CLSA Securities, a Hong Kong- based brokerage. ``Last year, when I came, nobody was talking about politics. Everyone was talking about property, investments, deals, like everywhere else in the world.''
Cambodia to export rice to Brunei
Thursday, August 28, 2008
PHNOM PENH (Xinhua): President of the Alliance of Cambodian Rice Millers Association Phuoy Puy said Cambodia is preparing to export 50,000 to 70,000 tons of high quality rice to Brunei, local newspaper the Cambodia Daily reported Thursday.Phuoy Puy said that he and Rural Development Bank President Sun Kunthor met Brunei Finance Ministry Secretary-General Dato Tado Kahazi Alidine Hazaipong on Tuesday, the newspaper said.The Brunei official said that so far, his country have purchased rice from Vietnam and Thailand, but now wishes to buy rice in Cambodia, Phuoy Puy said. The Brunei Finance Ministry secretary-general also met Cambodia 's Finance Minister Keat Chhon on Monday to discuss the plan and request Keat Chhon to help facilitate the export process, according to the newspaper.Keat Chhon said they discussed possible Brunei investment in Cambodia in the future.
Miners trade gems for latex
GEM miners in Ratanakkiri province are moving to rubber farming as the international demand for latex increases, provincial officials told the Post. But while some laud the switch to a more sustainable form of industry, others worry the hunger for large swathes of land will lead to more illegal property seizures.Some two-thirds of land in the province suitable for mining has already been seeded with rubber trees as commodity prices continue to rise, said Hem Vanthan, director of the Industry, Mines and Energy Department for Ratanakkiri province."Most miners have become farmers after seeing the potential for profits from rubber plantations," Hem Vanthan said.Ratanakkiri is a major source of high-quality zircon, as well as other semi-precious stones such as garnet.Many of the stones have been mined by small-scale operators to be exported to Thailand's gem hub, Chantanaburi.Hem Vanthan also said that miners have been unable to find new high-quality reserves, leading to lower profit margins."Our gems can't compete with those from Pailin," he said. "In Ratanakkiri, miners earn only enough to live day by day. With rubber, farmers can save money and plan for the future."Phan Sophana, chief of the Office of Tourism in Ratanakkiri, said at least 2,000 hectares in the province are suitable for gem mining, but only about 100 hectares are being actively mined by locals and foreign companies.
Soon all the gems in ratanakkiri will be gone.
"Interest in rubber farming is high at the moment," Phan Sophana said, adding that villagers can purchase one hectare of land for US$1,500 and expect as much as $8,000 in revenue from rubber per hectare.The move towards a more sustainable industry in Ratanakkiri follows growing concern that gem resources could be drying up."Soon all the gems in Ratanakkiri will be gone," said Pen Bonna, coordinator of local human rights group Adhoc.While precious stones are fetching higher prices on international markets, they are becoming harder to find in Ratanakkiri, fuelling the demand for more lucrative sources of livelihood in some of Cambodia's poorest communities.A leading gem dealer in Chantanaburi said supplies of Cambodian stones have nearly dried up over the past year. "Prices are up - the problem is that there is no supply. You can occasionally find good stones, but you pay for them," said Ken Barnett, a spokesman for World Gem Importers by telephone. Pen Bonna added that environmental concerns have also contributed to a downturn in mining, as heavy machinery has left large areas of the province pocked with holes.But the rubber industry boom has also raised concerns about land speculators profiting at the expense of local villagers. Ethnic minorities such as the Tompoun and Krueng, who rely on the province's natural resources for their survival, are also increasingly falling prey to land grabs."Land is money," said Pen Bonna. "Rich investors ... pretend to be interested in rubber farming only to buy up land and sell it at an inflated price," he added.

Palm wine producer sees profits double on high foreign demand
CAMBODIA'S largest palm wine producer, Confirel, expects to earn US$500,000 this year, up from $250,000 in 2007, said Hay Ly Aun, general manager of Confirel Co Ltd.The company exported between 4,000 and 5,000 bottles of wine to the European Union in 2007."We are able to produce 20,000 litres of palm wine a year from palm juice," said Ol Tola, vice president of operations.The locally-made alcoholic drink is increasingly popular abroad, but suppliers say stiff taxes are limiting the company's growth prospects outside of Cambodia."We don't expect to export more to the EU because they have introduced new taxes on alcohol products, so it is hard for us. We are now selling our products to the local market, especially tourists," Hay Ly Aun said. The company urged the government to support the industry's efforts to export."If the government does not help us, how can local and international markets know our products and our identity? We need a lot of money to advertise," Hay Ly Aun said."We are trying expand abroad, but we are not getting any help from the government and the Cambodian embassies. But if the government helps us, we can [expand] very fast," Hay Ly Aun said.Sweet palm juice is supplied by 300 families in five communities in Kampong Speu and Kandal provinces, said Ol Tola.But the Ministry of Commerce said palm wine is not a priority for the Cambodian government. "Palm wine is not a product we are encouraging for export because it is a small industry.... We are helping to upgrade the quality of palm sugar," said Mao Thora, undersecretary of state at the Commerce Ministry.Confirel said it exported over 20 tonnes of sugar in 2007, and hopes to export 30 tonnes in 2008, Hay Ly Aun said.But a local restaurant said that palm wine cannot compete with higher quality foreign beverages. "I used to sell palm wine, but I stopped selling it about two years ago because customers don't like drinking palm wine," an employee at K-West restaurant told the Post.There roughly three million palm trees in Cambodia supporting the palm sugar industry.
Bank of India applies to open in Cambodia
Aug 26, 2008DPA
Phnom Penh - Cambodia has welcomed an initial application by the Bank of India to open in Phnom Penh, local media reported Tuesday.The Cambodia Daily newspaper quoted Finance Ministry director of investment Chan Sothy as saying the nationalized Indian bank, which has a presence in all the major trade centres of the world, applied to open in April.The paper quoted Sothy as saying he and Finance Minister Keat Chhon met with outgoing Indian ambassador Aloke Sen Friday and 'welcomed the Bank of India to open a branch in Cambodia.' The officials discussed various ways of increasing Indian investments in Cambodia, the report said. It quoted banking officials as saying the Bank of India application was still being processed and therefore no concrete date could be set.The two nations have close historic ties and Cambodia has been keen to foster closer economic ties with India as investment from other powerhouse Asian economies such as China and South Korea continues to grow.
Bank of India “Welcome” In Cambodia: Minister

Outgoing Indian Ambassador Aloke Sen on Friday asked Finance Minister Keat Chhon to help facilitate the entrance of Bank of India into the Cambodian market, officials said. In response, Keat Chhon said he “welcomed the Bank of India to open a branch in Cambodia,” said Chan Sothy, the Finance Ministry’s director of investment and inter-cooperation, who also attended the meeting. “It will help to attract more investors from India,” Chan Sothy said Monday.
The meeting was both a farewell to the ambassador and a chance to discuss how to increase Investment in Cambodia.
Mumbai-based Bank of India, a nationalized commercial bank, first submitted an application April 14 to the National Bank of Cambodia to open a branch.
However, NBC Director General Tal Nay Im said Monday that the Bank of India has yet to complete the application process. “The documents are not yet complete,” she said.
Bank of India had $3.46 billion in deposits at the end of March and foreign branches in 14 countries.
Cell Phone Providers Are Turning to Solar Power

Cambodia’s mobile phone service providers are increasing tapping the sun to power their operations, officials said Monday. Star-Cell (which operates the 098 prefix) announced Thursday it had equipped its first base station, in Battambang province’s Samlot district, with solar panels made by Swedish company Ericsson. “I believe it’s becoming more and more common,” Star-Cell Chief Operating Officer Adam Cabot said Monday. For service providers looking to expand into Cambodia’s rural areas, which often lack electricity, powering base stations with solar energy is becoming the most sensible solution, Cabot added.
Star-Cell opened in October and services eight provinces. The country’s newest mobile service provider, Excell, already powers a number of its 28 base stations in Phnom Penh with solar energy, GT-Tell Marketing Manager Inn Okenty said. Excell opened July 4 and services 2,000 customers in Phnom Penh on the 018 prefix. (Stephen Kurczy)

Vietnam’s Trade with Cambodia on surges in 2008
August 25, 2008VNA (Hanoi)
The trade revenue between Vietnam and Cambodia is expected to surpass US$1.5 billion this year against US$1.2 billion in 2007.The Commercial Counselor of the Vietnamese Embassy in Cambodia, Le Bien Cuong, said the two countries recorded almost US$900 million in trade revenues for the first half of the year.Vietnam exported over US$700 million to Cambodia and imported over US$140 million worth of commodities from the neighbouring country.Textile and garments, computers, electronic appliances, household electrical products, fruit and vegetables, seafood and plastic commodities are Vietnam’s major hard currency earners.The two countries set a target of US$2.3 billion in bilateral trade by 2010 and US$6.5 billion by 2015

Phu Quoc lures $1.72 billion in investment
VietNamNet Bridge - The southern province of Kien Giang has licensed 21 investment projects with a total capital of more than VND27.35 trillion (US$1.72 billion) on Phu Quoc Island so far, according to the chairman of the People’s Committee of Phu Quoc, Pham Vu Hong.
Of the 21 projects, two are fully invested in by foreigners and two are joint ventures.
Most of the investment projects are involved in the real estate and tourism sectors. These include with the construction of hotels and resorts along Phu Quoc’s western and eastern seaside covering over 1,000ha.
The operating projects are now turning a profit, making a significant contribution to the island’s yearly average growth rate of 16 per cent during the past three years.
Furthermore, the provincial People’s Committee has also approved Phu Quoc Island to call investment into another 154 tourism projects with a total expected registered investment capital of about $889.7 million, covering an area of 5,647ha.
Speaking at the meeting on developing Phu Quoc Island last Friday, chairman of the People’s Committee of Kien Giang Province, Bui Ngoc Suong said, "The provincial authorities will create the best conditions such as simplifying licensing procedures and setting up a Phu Quoc Investment and Development Management Board to help investors.
"Specifically, work on infrastructure projects, such as Duong To international airport, the An Thoi seaport and major roads, are also being sped up so as to transform Phu Quoc Island into a high-class hub of ecological tourism in the near future."
Viet Nam’s Phu Quoc Island has been ranked as one of the five most beautiful "hidden beaches" in the world by Concierge.com.
Phu Quoc welcomed more than 34,400 international travellers worldwide during the first eight months of this year, a year-on-year increase of 19.05 per cent. There have also been approximately 94,000 domestic visitors over the same period, according to Phu Quoc Department of Trade and Tourism.
The director of Phu Quoc Centre for Trade and Tourism Promotion, Tran Quoc Khanh, said that the island district planned to lure 350,000-500,000 travellers a year by 2010.
Phu Quoc Island plans to earn about VND265.7 billion ($16.1 million) in tourism services, a 41 per cent rise compared to 2006. The average growth rate in the last three years has been 24.87 per cent.
Suong said that the development of "non-smoke industry" contributed remarkably to boosting Phu Quoc district’s economy growth.
Combined with the success of tourism, Phu Quoc will attach special importance to developing industry, light industry as well as produce and processing aquatic products, Suong said.
A mere two-hour flight from almost any Southeast Asian metropolis in Thailand, Malaysia, Singapore or Cambodia, Phu Quoc, the largest island district nationwide, has become Viet Nam’s foreign gateway with a great potential for development in both the economy and tourism. The danger is that by focusing so much on making money, some of what made Phu Quoc so special in the first place might be lost.
Ericsson Deploys Rural, Solar-powered Site with Satellite Transmission in Cambodia
Ericsson has combined a GSM base station and satellite transmission in a solar-powered site, enabling Cambodian mobile operator Star-Cell to expand its network coverage in remote areas. The solution offers affordable communications for all and is based on Ericsson's energy-optimized main-remote base-station. The satellite transmission feature provides affordable mobile-network coverage in remote areas where other transmission solutions are unavailable. This is vital for bridging the digital divide, as about 80 percent of the Cambodian population lives outside the main urban centers.The GSM main-remote solution has a lower environmental impact than standard base stations, consuming up to 50 percent less energy, and helps lower total cost of ownership by reducing operating costs. Star-Cell has selected Ericsson's solution to expand network coverage and introduce EDGE-based applications to enable mobile health and educational services for rural communities.This deployment follows a series of initiatives from Ericsson to optimize the energy efficiency of mobile networks by creating solutions that reduce environmental impacts and lower operator costs. These initiatives include: BTS Power Savings features that put a network in stand-by mode during off-peak hours and saves up to 15 percent of the network access energy consumption; the innovative site concept Ericsson Tower Tube; biofuel-powered telecom sites; a hybrid solution using diesel and batteries that cuts network operating costs by up to 50 percent; and the Solar Village Charger, co-developed with Sony Ericsson. Ericsson delivered its first solar-powered sites in 2000 to Maroc Telecom in Morocco, and has so far provided more than 200 sites in Africa, Southeast Asia and the Americas.
Friday, August 22, 2008
Kuwait loans Cambodia $546 mln, plans embassy
PHNOM PENH, Aug 22 (Reuters) - Kuwait has agreed to give Cambodia loans totalling $546 million to develop agriculture, build hydro-power facilities and construct roads, a Cambodian foreign ministry official said on Friday.This is the second-biggest aid pledge ever received by Cambodia, after aid and loans totalling $601 million offered by China last year."This is showing a stronger relationship between Kuwait and Cambodia, both political and economic," Cambodian foreign ministry spokesman Sin Bunthoeurn told Reuters late on Thursday after the ministry hosted bilateral ministerial talks.He said they planned to open embassies early next year. The two countries have had diplomatic ties since 1997.A Kuwaiti newspaper reported that Kuwait had leased rice fields in Cambodia to secure food supplies after Prime Minister Sheikh Nasser al-Mohammad al-Sabah met Cambodian leaders earlier this month.Qatar's prime minister, Sheikh Hamad bin Jassim al-Thani, paid his first official visit to Cambodia in April 2008 and Qatar plans to invest $200 million in Cambodian farmland.Some $486 million from the Kuwaiti loan will be invested in irrigation systems and hydro-power on the Steung Sen river in the northeastern province of Kampong Thom.The remaining $60 million will be used for building roads in the northwestern province of Battambang, a rice-growing area, Sin Bunthoeurn said.Kuwait has signed more than $27 billion of investment agreements with nine Asian countries during an Asian tour this month, its finance minister was reported as saying on Aug. 17.

Kuwait loans Cambodia $546m, plans embassy 8/23/2008 3:7:33
PHNOM PENH • Kuwait has agreed to give Cambodia loans totalling $546m to develop agriculture, build hydro-power facilities and construct roads, a Cambodian foreign ministry official said yesterday.
This is the second-biggest aid pledge ever received by Cambodia, after aid and loans totalling $601m offered by China last year.
"This is showing a stronger relationship between Kuwait and Cambodia, both political and economic," Cambodian foreign ministry spokesman Sin Bunthoeurn said late on Thursday after the ministry hosted bilateral ministerial talks. He said they planned to open embassies early next year. The two countries have had diplomatic ties since 1997.
A Kuwaiti newspaper reported that Kuwait had leased rice fields in Cambodia to secure food supplies after Prime Minister Sheikh Nasser Al Mohammad Al Sabah met Cambodian leaders earlier this month.
Qatar's Prime Minister, Sheikh Hamad bin Jassim bin Jabor Al Thani, paid his first official visit to Cambodia in April 2008 and Qatar plans to invest $200m in Cambodian farmland.
Some $486m from the Kuwaiti loan will be invested in irrigation systems and hydro-power on the Stueng Sen river in the northeastern province of Kampong Thom. The remaining $60 million will be used for building roads in the northwestern province of Battambang, a rice-growing area, Sin Bunthoeurn said.
Friday, August 22, 2008
Jetstar plane slides on runway in Siem Reap
Slashed tyre ... Jetstar is investigating why a flight from Singapore to Siem Reap-Angkor international airport slide off the runway and how one of tyres came to have cuts in it / file
August 22, 2008By Mark Schliebs News.com.au (Australia)
A JETSTAR plane partially slid off a runway in Cambodia as it came in to land in wet weather, damaging two tyres. The Jetstar Asia flight from Singapore to Siem Reap-Angkor international airport, carrying 144 passengers, landed in the rain yesterday morning, with reports the plane’s fuselage also scraped along the ground during landing.A Jetstar Asia spokesman said an investigation was being carried out."The plane landed in heavy weather," the spokesman said."The aircraft drifted to the edge of the runway."He said there was no permanent damage to the aircraft and no passengers were injured.During an inspection of the plane, two tires were found damaged and mud was discovered on the aircraft's fuselage.All passengers disembarked as normal, the airline said.The A320 would fly back to Singapore later today.A NEWS.com.au reader said the plane “left the runway and blew a tyre and scraped the ground”.Another reader, who was booked on the plane’s flight back to Singapore yesterday, said the airline put him up at a motel while another flight was organised.“We’ve been told that technical difficulties in Siem Reap have caused the cancellation for a full 24 hours,” he said last night.The airline spokesman said all passengers were later put on another flight.

Initiative Seen As Crucial for Stock Exchange

By Stephen Kurczy,

With Tuesday’s launch of the new ASEAN+3 Asian Bond Markets Initiative, Cambodia’s nascent securities market will receive another five years of technical assistance from the Asian Development Bank.
The initiative is necessary for the country’s planned stock exchange, said Finance Ministry Secretary-General Hang Chuon Naron, as the price of private bonds traded on the Cambodian bourse will be based in part on government-issued bonds.
A stock exchange is earmarked to open in September 2009, though experts believe that date is overly optimistic.

The ABMI started in 2003 to help Asean countries—as well as Japan, China and Korea—develop local-currency-denominated bond markets by providing technical assistance and facilitating market information, the ADB said in a statement.

Finance Minister Keat Chhon signed the new initiative in May during the 11th annual ASEAN+3 finance ministers’ meeting in Madrid, Spain, according to the statement.
Local-currency-denominated bond markets in the region have nearly tripled in size since 2003, and though Cambodia does not yet sell sovereign bonds, the ABMI has provided technical assistance in drawing the legal framework, Hang Chuon Naron said by telephone Wednesday.

He added, however, that Cambodia was still not certain whether the government would issue bonds in riel or US dollars.
“You cannot issue something that nobody wants to buy,” he said.

Through the ABMI, Hang Chuon Naron said Japan in 2005 and 2006 conducted a study on developing a bond market here, which determined which companies might be interested in issuing and buying bonds.

“That study helped us [know] who are the issuers and who are the potential buyers,” he said.
The ABMI also provided technical assistance for writing the 2006 sub-decree on life insurance and laid the groundwork for the 2006 Law on Government Bonds and the 2007 Law on Issuance and Trade of Non-Government Securities.

Most recently, in July the ABMI helped establish the Cambodian Securities Commission, chaired by Finance Minister Keat Chhon, which will create the regulatory framework for the stocks and bonds market.

Keat Chhon could not be reached for comment.

In February, the country received its first sovereign debt rating, with Moody’s and Standard & Poor both rating Cambodia “stable,” which is below investment-grade status but was nevertheless considered a show of progress.

Cambodian gov't touts organics to increase rice export
PHNOM PENH, Aug. 21 (Xinhua) -- Cambodian agriculture officials said that shifting to chemical-free fertilizers could triple farmers' rice yields and produce more profitable crops at a time when the country's rice exports are on the rise, local newspaper the Phnom Penh Post reported Thursday."Rice grown with natural fertilizers is easier to produce and more profitable than rice grown with chemical fertilizers," Khem Chenda, director of the administrative affairs at the Ministry of Agriculture, was quoted as saying.Farmers using chemical fertilizers pay about 35 U.S. dollars to 70 U.S. dollars per 50kg bag, and their yields sell about 250 U.S. dollars per ton on the international market, Khem Chenda said. But they face numerous health problems from prolonged exposure to chemicals, ranging from skin irritations to lung cancer, he added.However, organic fertilizers will increase the quality and quantity of paddy yields and for a cheaper price, said Chan Vannak, general manager of the Bayon Heritage Holding Group.Organics cost 27 U.S. dollars per 50kg bag and crops sell for 300 U.S. dollars per ton, Chan Vannak said.The Bayon Heritage Holding Group imports organics from Japan for resale in Cambodia, he said, adding that he has already sold about 500 tons.

Cambodian Government Mulls Foreign Ownership Of Buildings, Offices: Media
PHNOM PENH, Aug 21 (Bernama) -- The Cambodian government is mulling to allow foreigners to own condominiums and office buildings in order to prevent a possible downturn in property values and boost long-term investment, Xinhua news agency said quoting a national media report Thursday.At present in Cambodia, foreigners are prohibited from owning land or fixed assets such as buildings, apartments or office space.Any government move to allow foreigners to own condominiums or office buildings would need to begin with Ministry of Land Management, a move that the ministry is indeed considering, English-Khmer language newspaper the Cambodia Daily quoted a ministry official as saying on condition of anonymity."I think the government will de-restrict the property market. Once things start getting more competitive, once things start to slow down, people start to look at other places and the competition starts to get more competitive, they will need to start doing more things to attract more foreigners," said Liam Bailey, head of international research for London-based realtor David Stanley Redfern (DSR), which has real estate business in Phnom Penh.The real estate business in Phnom Penh and other major Cambodian cities have been booming in the past two or three years, but the market leveled off shortly before the general election in July this year due to the investors' political calculation.During this period, the price has stayed stable but the demand decreased, which propelled the government, property consultants and retailers to think of the next step to heat up the market.
QSR top pick in F&B sector

KUALA LUMPUR: QSR Brands Bhd is the top pick in the food and beverage (F&B) sector and remains an “Outperform” on CIMB Equities Research's list.
In a research note issued on Thursday, the research house said the share price catalysts were the continued improvement in same-store sales growth and success in new markets, which was Indochina.
On the second quarter (2Q) results for the period ended June 30, CIMB Research said the performance was broadly in line with its expectations.
“The record quarterly net profit of RM22mil in 2Q took 1H bottomline to RM42mil or 47% of our full-year forecast. 2H is typically stronger. The interim dividend of four sen/share, which matches FY07’s interim dividend per share (DPS), was also not a surprise. There are no consensus estimates,” it said.
The strong earnings, which saw net profit rising by 44% year-on-year were underpinned mostly on the impressive same-store sales growth for both Pizza Hut and KFC and also outlet expansion.
CIMB Research said in 2Q, same-store sales growth stood at around 22% for Pizza Hut and 15% for KFC.
It commented the growth was not a small achievement considering that it had been only 2% for Pizza Hut and 8% for KFC at end-07. Pizza Hut has expanded its network to 175 outlets in Malaysia and 46 in Singapore, up from 168 and 40, respectively, as at end-FY07.
It also said 1H performance benefited from a 3% to 5% upward adjustment in Pizza Hut’s selling prices in December last year. The selling price of bestseller Sensasi Delight had also increased from RM7.35 when it was launched in June last year to RM7.95 currently.
On the group’s overseas expansion, it said that after venturing into Cambodia with the first KFC outlet in Phnom Penh on March 2, QSR planned to open its maiden Pizza Hut outlet in the country next year after getting approval from Yum! recently.
The success in securing franchise rights for Pizza Hut and KFC in Cambodia was expected to see QSR emerge a dominant force in the country’s F&B industry.
CIMB Research said in FY08, the group plans to set up four KFC outlets in Phnom Penh with an estimated investment of US$3m. All the group’s new businesses – be they local or international – will be put under QSR, potentially fast-tracking its growth.
“We reiterate our view that QSR is undervalued at only 6.0 times to 8.0 times price/earnings (P/E), which is half the sector average.
“We maintain our forecasts and target price of RM5, still pegged to 16 times forward P/E, which factors in a 10% discount to bigger F&B producers, namely Nestle (Neutral) and F&N (Underperform),” it said.
Better regulation necessary
for port system: officials say
SOARING exports have led to
what officials say is a chaotic
and cutthroat system of private
and public seaports that needs to
be better regulated.
About 22 ports dot Cambodia's
rivers and seashores, with few
rules governing competition,
quality, logistics or safety.
The state-owned Phnom Penh and
Sihanoukville ports, meant to be
key trade hubs, complain that they
cannot compete against smaller
private facilities that have few
standards and frequently engage
in what they say is price-dumping
to attract business.
"Ports are no longer competing fairly and must upgrade their services and management," said Hei
Bavy, director general of the Phnom Penh Autonomous Port.
"Some business people have created confusion by trying to adopt Cambodia's ‘Open Skies' policy to
the Kingdom's waterways," he told the Post.
Open Skies deregulated flights for international carriers to Phnom Penh and Siem Reap, greatly
increasing business to these transport centres.
"But [Open Skies] didn't authorise the unrestricted building of new airports. Any move towards an
‘open water' policy in Cambodia should follow the same pattern," Hei Bavy said.
"All private ports should function under the same set of rules. Singapore has many port terminals,
but all of them operate under the Port Authority of Singapore. The same is true of Hong Kong. In
Cambodia, it's much different." Officials say Cambodian law has failed to keep pace with changing
trade patterns and rising exports, estimated at just over US$4 billion last year.
Lawmakers are expected later this month to debate legislation that exporters and port operators
hope will bring some order to the export sector. The law is being made with help from Belgium and
would include provisions to coordinate Cambodian and Vietnamese ports. "We have to put all port
operators on track and every port, both private and state-owned, needs to compete based on proper
regulations," said Mom Sibon, secretary of state for the Ministry of Public Works and Transport.
"I think we need to control all ports to make sure they are operating fairly and according to the law,"
he said.
But some private operations say they are concerned about increased government control over
Cambodia's ports. Greater port competition would improve services overall, they argue, while more
scrutiny could eventually discourage trade.
"This is a free market. If there are no private ports to compete with state-owned ports, the price of
services will not be competitive," said So Nguon, co-chairman of the Government-Private Working
Group on Electricity and Transportation.
"I would oppose any move to discourage the opening of new ports.... The more ports there are in
operation, the better the competition and the more port users benefit."
Wing Hour, the managing director of City Power Group Cooperation, the firm developing the $16
million Kampot Sea Port in Kampot province, said the company supports the ministry's efforts
towards comprehensive regulations, but this should not be an opportunity for tighter government
control of private ports.
"The management and services must remain in the control of the private ports," he said
SEZ operators form group, gaining bargaining power
Operators of Cambodia's Special Economic Zones (SEZs) joined Tuesday to form the Kingdom's first SEZ Association, giving them more power to deal directly with the government and potential investors, the group's new president said."I think SEZ development in Cambodia will go very smoothly," said Nang Sothy, who was chosen to lead the association after a meeting with the International Financial Corp.The IFC, which is a wing of the World Bank group, has pressed for the association to be formed, industry sources say.Nang Sothy said the association, which includes representatives from all of Cambodia's 19 SEZs, will work with the government on drafting new legislation to govern SEZ operations, as well as lead promotional trips abroad.The move, however, has outraged the Cambodia Chamber of Commerce (CCC), which had previously managed the potentially lucrative SEZs, most of which have been inactive under the chamber's stewardship.The government has been granting SEZs in the hopes that they would attract more foreign investors to Cambodia and drive the Kingdom's economic growth.But only two of Cambodia's 19 registered SEZs show signs of life, and local sources say most have been plagued by a lack of transparency in their operations."I don't understand why they can't use the Cambodia Chamber of Commerce to help them. We are here to help them if they have any problems," said CCC Director General Nguon Meng Tech, accusing the IFC of interfering."I don't see any specific reason for having a new association for SEZs," he added. "[Prime Minister Hun Sen] authorised the CCC to deal with private companies and help them with any problems," he added. An IFC spokesperson said the organisation's role was limited to arranging Tuesday's meeting at the request of the industry.But industry sources say the IFC has also offered to help fund the SEZ Association's administrative operations.
I dont understand why they can’t use the CAMBODIA chamber of commerce.
"If IFC wanted to support something, why didn't the IFC directly support the CCC?" Nguon Meng Tech said. Wing Hour, managing director of City Power Group Corp, which is developing the Kampot SEZ, said, however, that the association would allow the SEZs to work in chorus with one another and pool their various resources without being controlled by an outside group."We decided this morning to create an association because sometimes SEZs have been working alone and it has not been easy dealing with the government," he told the Post. "Now we will be able to discuss any problems we have with the government," he added. Mong Reththy, the president of Mong Reththy Group which operates its own SEZ, urged the association to treat all zone developers fairly. All members should be able to share in the benefits of association membership, he said, warning against favouritism.

The number of high-end hotel rooms serving luxury and business travellers is failing to
keep up with strong annual tourism growth, officials say
CAMBODIA is facing a
shortfall of 3,000 hotel
rooms in the face of tourist
arrivals growing at an annual rate
of up to 20 percent, said a tourism
official in Phnom Penh.
"There is a shortage of about
1,500 hotel rooms in Phnom Penh
and of about 1,500 rooms in
Sihanoukville due to tourist growth
and the business boom," said
Kousoum Saroeuth, director
general for the Ministry of
Tourism.
"But the shortage is mainly for
high-end hotels."
He added, "We have enough
hotels and guesthouses for
common tourists, but we need
more high-end hotels for luxury
tourists and business people."
He said that Cambodia had about
350 hotels with roughly 20,000
rooms, including 140 in Phnom
Penh, 100 in Siem Reap, about 50 in Sihanoukville, with the rest in other provinces.
The hotel industry was a major revenue-earner but no figures were available on how much hotels
earn every year, Kousoum Saroeuth said.
He noted that two million tourists were visiting Cambodia every year, generating revenues of about
US$1.4 billion last year. He added that tourism was responsible for generating about 300,000 jobs.
So Mara, undersecretary of state at the Tourism Ministry, said that even with the shortfall, the
industry had grown quickly to meet demand.
"The good side is that this industry is mostly owned by local investors, so revenues are not flowing
out of the country," he said. "Tourism has grown about 19 percent year-on-year, so demand for
accommodation will grow, too."
But Cambodian Hotel Association President Luu Meng said there was still too little investment in topend
accommodation.
"In this industry, what we need is high-class hotels for high-class guests. Currently, we have a lot of
hotels, but only a few are top class," Luu Meng said.
He noted that the hotel industry was responsible for creating about 22,000 jobs in the Kingdom but
that the industry carried risks for investors as it was vulnerable to economic downturns and political
instability.
Regional hotels have also been affected by high fuel prices and increased airfares, as well as a
slowing global economy, he added.
"Security and safety are the major priority for this sector, and road infrastructure comes next," Luu
Meng said.
Kousoum Saroeuth said that, in a bid to strengthen the hotel industry, the Tourism Ministry would
require hotels to obtain proper classifications or risk having their licences pulled.
The classification ranges from one to five stars, he said.
"Since the subdecree on hotel classification took effect in 2003 ... only 15 out of 350 hotels in
Cambodia have been classified: 12 in Siem Reap, two in Phnom Penh and one in Sihanoukville."
He said that, since 2003, the Ministry of Tourism has warned hotel owners to apply with the ministry
for classifications, but most had ignored the notice.
"As soon as the new government is formed, if hotel owners still ignore having their hotels classified,
they will be denied extensions to their operating licences, which they need to apply for every year,"
he said.
The hotel standards conformed with ASEAN rules, he said, and "will build credibility among foreigners
as well as trust that the hotels they are staying in are as good as others in ASEAN. It will also allow
hotels to promote themselves and strengthen their service."
He said that the classification procedures were not complicated and would take only three days to
complete.
Building on Vattanak Bank offices to start
Nguon Sovan
VATTANAK Bank plans to launch construction of a US$100 million headquarters on Monivong Boulevard next week, said one of the bank's key investors on Tuesday.Construction is scheduled to finish in 2011, said Chhun Leang, the mother of Sam Ang Vattanak, Vattanak's executive director who is out of the country. The 33-storey, 8,000 square-metre-headquarters opposite the railway station will also contain space for rent as offices or retail, she said.Pa Socheat Vong, deputy governor of Phnom Penh, told the Post on Tuesday that the new building is good for the city, but warned that it will bring more traffic jams if it does not comply with architectural plans.The capital is experiencing an unprecedented building boom that includes another massive bank headquarters - the Canadia Bank skyscraper, also on Monivong Boulevard."It shows the progress in the banking sector," said Pa Socheat Vong.

To inventor, car security is just a phone call away
Device can track and operate vehicles through text messages using a SIM card hidden on board, turning handsets into remote controlsIT is often seen as negligent, dangerous driving to use a phone while in your car, but computer programmer Tim Vutha says there are some instances that might call for it.The inventor recently released his system to control cars via SIM cards, the circuitry behind GSM mobile phones, as well as track them through a Global Positioning System (GPS)."I created this system to give more security to the drivers, so when their cars are stolen, we can stop the engine and give the owner the location of their car," Tim Vutha said.The system enables car owners to control various parts of their cars, such as opening or closing doors, and starting or stopping the engine, by sending password-protected commands via text message to a SIM card hidden in the car.The latest addition to his system, expected by the year's end, allows users to track their vehicle's whereabouts by GPS. Users contact Tim Vutha by SMS, and he will text back the vehicle's location, accurate to within about a city block.The inventor said the GPS function is convenient for families who want to keep track of their children."They will not worry about their son, daughter or their car because they can control 24 hours by their phone," he said. He said it's also useful for NGOs and companies that wish to keep better tabs on their employees. The feature collects data such as speed and location, so their staff could not cheat them and they can know where they are, he said. The inventor and car enthusiast said the security system has been two years in the making. The SIM card is housed in a small control box hidden in the car, Tim Vutha said. He said the box is not easily found, and the system works with all network providers.The entire system is expected to cost US$250, and Tim Vutha said he is also planning a cheaper monthly service.
Patriotic consumers fuel demand for local noodles
In less than two months, Mee Yeung instant noodles, made by longtime flour and rice company Men Sarun, have proven to be an instant hit. The company's Linh Thorn says demand is exceeding initial production runs of 40,000 boxes a month -- about 2 million packages of noodles. In a couple of months, he says, they hope to take some market share from the Thai and Vietnamese noodles that dominate the market.
THE Preah Vihear crisis pushed Cambodians into an unprecedented outpouring of nationalist fervour. Flags were waved, donations were raised, and the wife of the prime minister herself flew to the temple ruins perched on a remote escarpment to hand out words of encouragement, bottles of soy sauce and packets of instant noodles.Cambodian noodles.Men Sarun Import Export, the company behind Mee Yeung, the Kingdom's first line of domestically produced instant noodles, have found perhaps their best marketing tool in the border dispute at Preah Vihear, where hundreds of hungry Cambodian soldiers have been encamped in the cold and fog for the past month, staring down Thai troops in the tug-of-war over territory.Most of the 1,500 cases of Mee Yeung produced each day were being shipped to Preah Vihear prior to the redeployment of troops last weekend in preparation for Monday's border talks, said Mey Titha, general manager at Men Sarun's Instant Noodles Factory in Kandal province.Men Sarun launched their Mee Yeung, or "Our Noodles", brand in late June, expecting a lukewarm reception.But they have been hit with unprecedented demand, regularly selling out their stocks, said Linh Thorn, an administrative manager for Men Sarun."Right now we can't supply on time," he said, adding that demand for Cambodian noodles in the two months since the product launched is "extremely high".Noodle frenzyThe country consumes about a million cases of noodles per month, with each box containing between 30 and 50 packets of noodles. The overwhelming majority of demand is met with imported noodles from Vietnam and Thailand.But anger at Thailand over the Preah Vihear dispute had many calling for a boycott of Thai goods, including noodles, creating an unexpected windfall for Mee Yeung."We sell both [the Thai] Mama noodles and Mee Yeung, but now the customers say they want to have Mee Yeung rather than Mama," said Pick Vantha, 42, owner of the Khemarak Restaurant in the Phnom Penh Center. "I went three times to the nearby markets without luck, so now I go to the Phsar Kilo No. 4, five kilometres from here to find ‘Our Noodles'," Pick Vantha added.Mey Titha said most of the noodles going to soldiers at Preah Vihear in the past month were purchased by patriotic consumers who wanted to send Cambodian rather than foreign products to their troops. "They said they preferred Cambodian goods," she said. "But Preah Vihear is only part of the reason for the noodles' popularity. The others are good hygiene and taste."

Lake Residents Request Money for Move
By Chun Sakada, VOA Khmer Original report from Phnom Penh18 August 2008
Hundreds of residents of the Boeung Kak lake area met with Phnom Penh Governor Kep Chuktema in a conference room at City Hall Monday to request compensation for moving to make way for a massive development project.About 450 residents asked the city for $13,000 each in order to move from the area, which is slated for the development of commercial, residential and entertainment property.City officials and developers have made plans for commercial buildings, supermarkets, a meeting hall, an entertainment center, night clubs, hotels, a university, a hospital and residences on the site where now sits a wide pond full of water lilies encircled by makeshift homes of the poor.Residents have complained in the past they were not being given enough money to move away from the development site, but the city maintains most people living along the lakeside, in makeshift wooden homes, are there illegally.Some residents have requested new housing on the outskirts of Phnom Penh, in Dangkao district, while others are seeking payment.Kep Chuktema told the crowd of residents he would take their monetary request under consideration, requesting cooperation from the developer, Shukaku, Inc.A Shukaku representative was present at the meeting, but declined to speak to the crowd. Shukaku has a 99-year lease with the government, for an estimated $79 million project.One plan for the development would require filling in the lake.
Development Project Planned for Beach in Kep
By Fergal Quinn
and Prak Chan Thul
The Cambodia daily
Aug 19,2008

An ambitious new development projected to cost $2 billion is planned for Kep, an investor revealed Monday.
The development by Mekong Project Development International, a subsidiary of Seng Enterprise: a family-owned construction companies, will reclaim 400 hectares of land along 6 km of beachfront property there in order to build a major new resort town incorporating about 10,000 housing units, including high-end bungalows, a university, a golf course and a 31-hectare par, according to Seng Vanntha, financial director of Seng Enterprise, on of a consortium of investors in the $2 billion project, with unnamed US, Japanese and Middle Eastern investors. The project will triple the size of Kep, a neglected former French colonial resort and include Preah Vihear.
Seng Vanntha said $250 million of the financing was already in place, and the project was slated to begin, pending various permits, within the next 12 months and the plan would ultimately take about 15 years before it would be fully completed.
She said the project could become Cambodia’s first offshore listing, either on the Hong Kong or Korean stock exchange. As to the targeted clientele, the developers are betting particularly on wealthy Asian pensioners from Singapore, South Korea and Japan. Some of the housing will also be reserved for Cambodians.“We already have some bookings and it’s mainly from people under 50 who are preparing their retirement plans,” she said. “Thailand has shown how you can develop beautiful beaches but we also want to avoid some of the mistakes there and certainly want to remain upmarket.”
Royal to raise $2bn to develop island “Kong Rong”
August 17 2008By Raphael Minder in Hong KongFinancial Times (UK)
Royal Group, a Cambodian conglomerate whose interests range from banking to mobile telephony, is raising $2bn from private investors, together with Hong Kong-based Millennium Group, to develop Koh Rong, an island off Sihanoukville, Cambodia’s only deep-water port.About 78 square-km in size, Koh Rong lies about 44 km off the coast of Sihanoukville and now has little or no infrastructure.

According to Chief Financial Officer Mark Hanna, Royal Group, which signed a 99-year lease with the government for the whole island in February, had already drawn up a master plan for the project.

The move comes as property developers are planning billion-dollar investments to transform Cambodia’s coastline into one of Asia’s leading holiday destinations.Such investments are designed to help diversify a Cambodian tourism industry that is heavily reliant on Angkor Wat and the country’s other inland historic treasures.The amount planned by Royal will only cover the initial stages of the development, according to Mark Hanna, chief financial officer of Royal Group.“We are talking about an island that is the same size as Hong Kong island, where we want to add things such as an airport, so ultimately we are certainly looking at several billions,” he told the Financial Times.
Office space market primed to explode on rising demand
A shortage of high-end office rentals in Phnom Penh will drive a boom in new office construction over the next two or three years, analysts say.
ISING foreign investment is leading to an office shortage in Phnom Penh, with some analysts expecting pent-up demand to generate a building boom over the next two years."There is nothing of an international standard in Phnom Penh right now," said Naim Khan-Turk, director of research at CB Richard Ellis (CBRE) in Ho Chi Minh City. "Many businesses are having to rent out villas."Analysts say the office market has not had time to catch up to the pace of economic growth, with only low- or medium-quality offices for rent in the capital. Phnom Penh has only about eight major office buildings available, with most of the space in converted colonial villas, hotels, or refurbished shop houses. Office space is graded by its location, the quality of the construction and the amenities offered in the building. None of the existing or planned space exceeds B grade, said international property experts."We class Grade A as having at least 1,000 square metres of floor space, quality mechanical engineering such as high-speed lifts, efficient buildings, and car parks - but that's a loose definition.... We don't see anything in Phnom Penh meeting those standards," said Khan-Turk. "It is hard to say exactly how much pent-up demand is there, but in the next five years, if 150,000 square metres of office space hit the market, I don't think it would be saturated."'Strong growth for 2-3 years'Knight Frank chairman Eric Ooi said that the shortage of prime office space could make Phnom Penh a potential boom market over the next two-years."Phnom Penh is like Ho Chi Minh City eight or 10 years ago....I expect strong growth for the next two to three years."Rents were rising accordingly, he noted. "In March, offices were renting for about US$10 per metre. Three months before it was $7 and now space is going for $14."That figure is still much lower than in Ho Chi Minh City, which has more than 77,000 square metres of Grade A office space available, according to CBRE estimates. Grade B offices in Ho Chi Minh City range from $17-53 per square metre and average $36, said CBRE, even though the top-end market there has taken a hit recently due to inflation and excessive supply.Few expect the troubles to spread to Cambodia.A local real estate company reported surging sales this year on mainly foreign demand."There are a lot of companies coming to Cambodia [and] most of the growth is from Korean companies," said Heang Rental from VTrust real estate. "The quality is not up to international standards, but it is acceptable for offices."
Major new office developments are in the works, including the 32-storey Canadia Bank building on Monivong Boulevard, the 45-storey Sun Wah Financial Center and the GS International Financial Center, planned to rise 52 storeys above Phnom Penh.


No room at the inn
The number of high-end hotel rooms serving luxury and business travellers is failing to keep up with strong annual tourism growth, officials say.
LOW-RENT LODGING
Cambodia has about 350 hotels with roughly 20,000 rooms, including 140 in Phnom Penh, 100 in Siem Reap and about 50 in Sihanoukville, with the rest in other provinces. Most of Cambodia’s accommodation is targeted at the low-end segment.

CAMBODIA is facing a shortfall of 3,000 hotel rooms in the face of tourist arrivals growing at an annual rate of up to 20 percent, said a tourism official in Phnom Penh. "There is a shortage of about 1,500 hotel rooms in Phnom Penh and of about 1,500 rooms in Sihanoukville due to tourist growth and the business boom," said Kousoum Saroeuth, director general for the Ministry of Tourism."But the shortage is mainly for high-end hotels." He added, "We have enough hotels and guesthouses for common tourists, but we need more high-end hotels for luxury tourists and business people."He said that Cambodia had about 350 hotels with roughly 20,000 rooms, including 140 in Phnom Penh, 100 in Siem Reap, about 50 in Sihanoukville, with the rest in other provinces.The hotel industry was a major revenue-earner but no figures were available on how much hotels earn every year, Kousoum Saroeuth said. He noted that two million tourists were visiting Cambodia every year, generating revenues of about US$1.4 billion last year. He added that tourism was responsible for generating about 300,000 jobs. So Mara, undersecretary of state at the Tourism Ministry, said that even with the shortfall, the industry had grown quickly to meet demand.
"The good side is that this industry is mostly owned by local investors, so revenues are not flowing
out of the country," he said. "Tourism has grown about 19 percent year-on-year, so demand for
accommodation will grow, too."
But Cambodian Hotel Association President Luu Meng said there was still too little investment in topend
accommodation.
"In this industry, what we need is high-class hotels for high-class guests. Currently, we have a lot of
hotels, but only a few are top class," Luu Meng said.
He noted that the hotel industry was responsible for creating about 22,000 jobs in the Kingdom but
that the industry carried risks for investors as it was vulnerable to economic downturns and political
instability.
Regional hotels have also been affected by high fuel prices and increased airfares, as well as a
slowing global economy, he added.
"Security and safety are the major priority for this sector, and road infrastructure comes next," Luu
Meng said.
Kousoum Saroeuth said that, in a bid to strengthen the hotel industry, the Tourism Ministry would
require hotels to obtain proper classifications or risk having their licences pulled.
The classification ranges from one to five stars, he said.
"Since the subdecree on hotel classification took effect in 2003 ... only 15 out of 350 hotels in
Cambodia have been classified: 12 in Siem Reap, two in Phnom Penh and one in Sihanoukville."
He said that, since 2003, the Ministry of Tourism has warned hotel owners to apply with the ministry
for classifications, but most had ignored the notice.
"As soon as the new government is formed, if hotel owners still ignore having their hotels classified,
they will be denied extensions to their operating licences, which they need to apply for every year,"
he said.
The hotel standards conformed with ASEAN rules, he said, and "will build credibility among foreigners
as well as trust that the hotels they are staying in are as good as others in ASEAN. It will also allow
hotels to promote themselves and strengthen their service."
He said that the classification procedures were not complicated and would take only three days to
complete.
High-end homes slated for Sihanoukville
Friday, 15 August 2008
A NEW luxury property development is under way in Sihanoukville with the US$40 million Hilton Park Villa, set for completion in 2010.Built on a 13.8-hectare plot, the 324-unit housing project consists of 149 townhouses, 78 twin houses, 78 villas, and 24 hillside homes catering to the high-end segment, said the firm's marketing manager Socheat Yutharo.The Hilton Park Villa is owned by four local business partners and started construction in May 9. Prices range from $73,000 to $335,000.As businesses flock to the seaside resort town, demand for executive housing has increased.The city's poor infrastructure has also helped fuel demand for pre-built residential areas like Hilton Park.But high construction costs due to soaring steel and cement prices are forcing the project to increase prices. "We will increase from seven to 10 percent ... by October because of the high price of construction materials," said Socheat Yutharo."We have just constructed the internal concrete roads, the gate and some building infrastructure. But we have sold about 60 percent of the units," he said, adding that most customers are from Phnom Penh and overseas Cambodians."The hotels and guesthouses cannot meet the demand of tourists in the high season, so what happens when investors, business people and engineers who come to work [in Sihanoukville] and in the economic zones need places to live?"The company is also planning two condos on three hectares of land near the Hilton Park Villa, but have not yet determined the size of the investment. Port development is making the town an increasingly important industrial hub.
Cambodia's first lighter factory in the works
IMPORTED cigarette lighters may become a thing of the past with a US$2 million lighter factory planned for Phnom Penh.China's Xinhai company intends to launch the plant to replace imported lighters, said Ith Praing, secretary of state at the Ministry of Commerce. He said that the factory would fill demand for millions of lighters each year. "Every family needs a lighter. When the factory is ready, we can replace imported lighters," he said"People need lighters because electricity is not available," said another government official. Most lighters are imported from Vietnam and cost about 500 riels each.
Tourism to northeast soars
1.1 million visitors to Cambodia
Tourist arrivals in the first half of 2008 increased 13 percent over the same period last year to 1.1 million, according to tourism ministry officials. Cambodia is targeting three million arrivals a year by 2010.

Tourist arrivals to the northeast more than doubled in the first half of 2008, compared with the same period last year, officials said Thursday, adding that the wild Ratanakkiri and Mondulkiri provinces were ideal for the Kingdom's nascent eco-tourism sector.Some 77,678 people visited Ratanakkiri between January and June of this year, said Uy Keoun, deputy director of the provincial tourism department.He added that most are drawn to Vireachey National Park and the ethnic minority villages that dot the province.Some 10,000 visitors traveled to Mondulkiri, known for its mix of jungle and high, sweeping grasslands, in the first half of the year, said provincial tourism official Ngin Sovimean. As interest in these once isolated provinces grows, tourism officials are trying to tailor local attractions to fit a rising demand for eco-friendly tourism."The regional and global tendencies favour eco-tourism," said So Mara, undersecretary of state with the Ministry of Tourism. "It is becoming poppular because it connects the environment to the people and is good for taking away the stresses of modern life." he added. The government also sees eco-tourism as a means of preserving both the environment and traditional culture, as well as a way to lift provincial villagers out of poverty by providing them with jobs as guides or craftspeople making goods for sale."Tourists make the local communities better off," So Mara said. "The ministry is teaching people in the local communities to conserve nature and make a living off of it, rather than killing the animals and cutting the forests," he said.Both provinces have set up community commissions to preserve targeted eco-tourism sites, like the Bou Sra waterfall, which is one of five such sites in Mondulkiri province.Eleven sites are controlled by these commissions in Ratanakkiri."We have information centres ... and are trying to improve guesthouses and other services," Uy Keoun said.But officials say the provinces still lack the infrastructure to make them easily accessible, while local communities are hesitant to heed their conservation message."These are the main barriers to the fast development of the tourism sector in these provinces," Ngin Sovimean said.Cambodia remains on track to reach its target of 2.3 million foreign visitors this year, according to tourism officials, although more Cambodians are also travelling throughout the country, bringing much needed income to some of the Kingdom's more far-flung destinations.Tourism arrivals topped two million for the first time last year, and the sector remains one of the few success stories in a country recovering from decades of civil strife.
Cambodian fish exports to EU expected to start
Written by Vong Sokheng
Thursday, 14 August 2008
Cambodia hopes to begin shipping fish and fish products to European Union members next year, but still lacks sufficient health and safety regulations.
THE government hopes to begin exporting freshwater fish to the European market next year, but urgent steps must be taken to improve quality control measures to meet the EU's exacting safety standards, fisheries officials say. "We are still learning about the kinds of regulations and standards that are required," Nao Thuok, chief of the Ministry of Agriculture's Fishery Administration told the Post on Monday.The EU demands very high food safety standards that are beyond Cambodia's capacity, but the Kingdom is actively exploring ways to improve.The European Commission inspected the fisheries sector in 2005 and has since extended technical assistance to Cambodian authorities on food legislation.Officials here hope this will allow the government to decide what actions are needed to secure access to the EU market for Cambodia's fish and fish products. "If we can meet the EU standards, we can sell our food products to anywhere in the world," Nao Thuok said. Currently, Cambodia exports fish to Thailand, Vietnam, Australia, Hong Kong, Singapore and Malaysia. According to Nao Thuok, there are about 30 local companies that export fish, an industry he estimated was worth around US$40 million a year. Song Heng, who is employed by the local fish export company Lian Heng Investments, said the company currently ships some 2,000 tonnes of fish to the US, but is eager to expand sales to Europe as soon as possible."We still cannot export to the EU market, because they require that the [Cambodian] government fulfils certain inspection requirements to comply with their standards," Song Heng said.System failures stall exportsRafael Dochao Moreno, charge d'affaires of the delegation of the European Commission, said that before a Cambodian company can export fish to any of the EU's 27 member states, the government has to demonstrate that it has the necessary legal powers and resources to ensure credible inspection and controls throughout the production chain.Moreno explained that fish products may only be imported into the EU if they have passed through facilities such as cold storage, processing plants, factory vessels and registered freezer vessels, all of which Cambodia currently lacks. "As long as Cambodia's system for fisheries production and processing is not recognised, no exports can take place," Moreno told the Post by email on Wednesday."The problem is therefore not one of a particular product failing to meet specific standards, but one of the system as a whole failing to meet the system requirements," he added. Other issues are the lack of legislation governing the quality of fish and fish products, and insufficient oversight of fish production and marketing chains, including inspection and certification schemes, Moreno said. The EU is the largest importer of fish and fisheries products in the world, taking in US$23 billion worth products from non-EU countries in 2007.
Thai rail shipments to capital plummet with border dispute
Imports have dropped more than 50 percent, despite planned efforts to expand trade by refurbishing the railway , officials sayThai goods imported by rail from Banteay Meanchey province to Phnom Penh plummeted between 50 and 60 percent in July compared with June 2008 due to the military standoff at Preah Vihear, a government rail official said Wednesday."We saw the amount of goods from Thailand fall sharply," said Sokhom Pheakavanmony, director general of the Royal Railways of Cambodia. He added, "As the dispute continues, the number of Thai goods will continue to decline."The drop comes despite efforts to boost rail-bound border trade. A 48km stretch of rail between Svay Sisophon town, Banteay Meanchey province, and the border town of Poipet is currently being renovated under a three-year, US$88 million programme supported by the Asian Development Bank.The project is expected to be completed in 2010, and is intended to link Cambodia to the Asean Singapore-Kunming railway project running through Singapore, Malaysia, Thailand, Vietnam and Kunming, China."Now renovations are going on close to Svay Sisophon," said Sokhom Pheakavanmony. "The Asean railway will boost growth for 500 million citizens in [the region]." He said the border conflict between Cambodia and Thailand would not affect the Asean railway project. Sok Sareth, deputy governor of Banteay Meanchey province, added that his officials have discouraged those in the province to join in a boycott of Thai goods that was proposed after the Preah Vihear crisis erupted last month."I think the boycott was just the idea of some young teenagers. Most people never participated," he said. Overall, trade between Thailand and Cambodia has increased this year, and Thai officials say that lingering tensions over the border will not impact trade.But commerce has dipped slightly since the dispute began. Hundreds of Cambodian and Thai soldiers remain deployed at the temple as their governments remain deadlocked over the issue.
Sihanoukville and Koh Kong sign MoU with Trat, Thailand
Officials say they hope the new agreement will help boost trade and encourage tourism between Thai and Cambodian provinces.
SIHANOUKVILLE and Koh Kong provinces have signed a memorandum of understanding with Thailand's Trat province to cooperate on trade, investment and tourism, officials said.Sihanoukville Governor Say Hak and Koh Kong Deputy Governor Yoy Seuy led a delegation to Trat last week to negotiate the agreement, which seeks to shore up economic ties between the border provinces."Both partners would meet to discuss immediately if any problems occur," Yoy Seuy told the Post on Monday."We will meet once a year to review this cooperation."Another Koh Kong deputy governor, Bin Sam Ol, added that the agreement would help people from both sides of the border find new markets for their products."I think it will benefit both provinces and all people along the border," Bin Sam Ol said. Officials say Cambodia imports large amounts of fruit and other agricultural products from Thailand through Trat, while Thais cross the border to gamble.Sihanoukville Deputy Governor Spoang Sarath said that officials also signed an agreement on tourism with Trat, a key crossover for foreign visitors travelling between Thailand and Cambodia.He said that tensions along the border in the north have had little impact on the flow of people through the border crossing in the south."Currently we have tensions on the border at Preah Vihear temple but here we do not have any problems," he said. "The [agreement] between the two countries will boost cooperation on trade and tourism, as well as agriculture production," he said.In 2002 Thailand provided a long-term soft loan of more than US$19 million to Cambodia to construct a 150km stretch of Route 48 linking Sre Ambel to Koh Kong, which is emerging as a significant hub for business and tourism. Former Thai Prime Minister Thaksin Shinawatra reportedly plans to build a casino and resort in Koh Kong, although Cambodian officials said they have not yet seen the proposal.
Officials zero in on 19 products to make Cambodia competitive
Cambodian farmers and manufacturers are losing out to higher quality goods from Thailand and Vietnam, say experts from the United Nations and the government.
AMBODIA'S farmers and manufacturers are losing out to regional competitors who have higher-quality goods and better business models, trade officials say.The Commerce Ministry and UN Development Programme have zeroed in on 19 goods to promote for niche markets by improving production and packaging standards, officials told the Post Wednesday.These include 14 agricultural products such as corn, rice and livestock, and five service sector products, ranging from tourism to light manufacturing and labour."We are promoting and developing a strategy to increase the quality and quantity of those products," said Sok Darith of the Commerce Ministry's Trade Promotion Department on Wednesday. Cambodia exports garments to the United States, European Union, Canada and Japan, but has failed to diversify its other sectors, with its agriculture bound largely for Thailand and Vietnam. Thailand, on the other hand, has successfully promoted agricultural sales in non-Asian markets, including Europe and the Middle East, as well as Africa - a continent that Cambodia's government increasingly sees as being a buyer of its biggest agricultural export: rice.
You need to show that rice millers are able to target the right market.
Wisal Hin, the trade and private sector analyst with UNDP's Poverty Reduction Cluster, said the agency is supporting the Commerce Ministry's Trade Promotion Department with training courses and study tours to South Africa to allow rice producers to meet with African buyers. He also urged the Commerce Ministry to help farmers increase the quality of their rice to appeal to US and South African buyers. The Trade Promotion Department "has to give people advice about future market demand," he said."You need to show that rice millers are able to target the right market for the right products," said Wisal. "Right now world competition is not so much on price, but how you are able to reach the standards," said Wisal Hin. "We need to know the obstacles...and remove the obstacles," he added.He urged local producers to think about value added, not just selling the raw materials. "Tell them, ‘You have market choices in potential exporting products.'" Yin Yanno, an official with Asean and International Organisations Department for the Commerce Ministry said the export promotion project needs to reduce bottlenecks facing producers. "Now is a period of research to determine what exactly farmers producing these 19 goods items need," he said.Yin Yanno added that Africa could be a strong market for Cambodian rice. Tep Khunnal, the Governor of Malai district near the Thai border welcomed the ministry initiative. "We have faced difficulties because we have only one market in Thailand - if the Commerce Ministry helps us find another market, our farmers will be very happy." Phou Puy, the president of the Federation of Cambodian Rice Millers Associations said that Cambodia will have enough rice to supply the international market. He said Cambodia would be able to export two million tonnes of rice in 2008 to export and expected to be able export 2 millions tons in 2009.
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India’s Tata Steel to develop US$5 billion plant in Vietnam
India’s Tata Steel Ltd has inked a deal with two Vietnamese state corporations to build a US$5 billion joint-venture steel complex in the communist country, an official said Thursday.
The new project is the fifth major steel plant in development in Vietnam, where steel consumption and imports have risen rapidly with its economic growth.
Tata Steel signed the agreement with Vietnam Steel Corp and Vietnam Cement Industries Corp in Hanoi Wednesday, said Pham Chi Cuong, chairman of the Vietnam Steel Association.
The plant would be the second-largest steel project in Vietnam after a plant under construction by Taiwan’s Formosa Group with a planned production capacity of 7.5 million tons of steel a year.
According to the agreement, Tata Steel and its Vietnamese partners would build the plant in the Vung Ang Economic Zone in Ha Tinh province, 350km south of Hanoi. Tata is to contribute 65 percent of the total investment capital of US$5 billion, Vietnam Steel 30 percent and Vietnam Cement the remaining 5 percent.
The first phase of the project was scheduled to become operational in 2011 and the plant would become fully operational in 2013 with an annual capacity of 4.6 million tons of steel.
Besides the Tata and Formosa Group plants, Taiwan’s Tycoons and E-United are building a US$1 billion plant while two other multi-billion dollar plants by Korea’s Posco and Malaysia’s Lion Group are awaiting investment licenses.
According to government statistics, Vietnam spent more than US$5 billion to import 6.4 million tons of steel in the first seven months of this year, up 96 percent from the same period a year ago.
The new plants would help reduce Vietnam’s trade deficit, which was expected to total nearly US$20 billion this year. (DPA)
Germany to sign 50-million-dollar aid agreements with Cambodia
Tue, 12 Aug 2008DPA
Phnom Penh - Germany was scheduled to sign two aid agreements with Cambodia Wednesday that would allocate more than 50 million dollars to the impoverished Asian nation, embassy officials said. The two agreements were worth 24.7 million and 26.7 million dollars, an embassy official said Tuesday.The first is an agreement on technical cooperation that includes technical support on social welfare projects and developments in electricity supply, agriculture and irrigation.The second is for financial cooperation for projects including social welfare, reproductive health, electric power programmes in rural areas and rural infrastructure. "This is direct bilateral cooperation," the embassy official said. "It does not include the substantial amounts being provided by Germany through various non-government organizations."
Wednesday, August 13, 2008
Senior US official in Cambodia to discuss bilateral trade
Aug 12, 2008DPA
Phnom Penh - A US delegation headed by World Trade Organization (WTO) expert Christina Sevilla is in Cambodia for bilateral trade talks, the US embassy said Tuesday.The US embassy statement said US-Cambodian trade was valued at 2.6 billion dollars last year, and that figure was expected to reach 3 billion dollars this year.Sevilla is director for inter-governmental affairs and public liaison at the Office of the US Trade Representative, which falls under the executive office of the US president, and is also responsible for WTO issues.Sevilla was scheduled to meet with Cambodian Commerce Minister Cham Prasidh Wednesday. The embassy statement did not say when her official visit was scheduled to end but said that it was aimed at furthering economic ties between the two nations.Cambodia took its place in the WTO in 2004.

Unions cynical over planned welfare fund
Tuesday, 12 August 2008Touch YutheaThe Mekong Times
The Ministry of Labor yesterday unveiled ambitious plans for a welfare fund that will include payouts to injured workers and life insurance. Labor unions welcomed the idea but warned the enterprise may soon become riddled with corruption.The National Social Security Fund (NSSF) will be funded by monthly insurance premiums paid by all the Kingdom’s private firms. Funds are to be pooled for payouts to injured workers.“The establishment of the NSSF is a key development in the Royal Government’s work to protect workers in the private sector — a duty which has until now fallen on the private sector,” said NSSF Director Uk Samvichea.“We will implement the program after we have issued all the correct insurance certificates to employees, which will be before October.”Uk Samvichea said it has been the responsibility of employers to cover medical bills for staff injured at work since 1992. But the ministry told firms Aug 8 how they may begin arranging their NSSF contributions.“Costs for the NSSF depend on the company’s salary levels, but they will not be deducted from employee’s wages,” Uk Samvichea explained.The monthly contribution for companies is apparently to be equivalent to 0.8 percent of salaries.The ministry said factory managers must now send injured workers to hospital, with medical bills to be footed by the NSSF.Incapacity benefit and life insurance are also to be included. “The NSSF will offer long-term payments to the families of injured workers. For example, if a worker loses a leg at work, we must support him indefinitely,” the NSSF director added.“If someone sustains a lethal injury, his family members, such as his wife or children must all be supported by the NSSF. The wife is insured until she gets married again, while the children receive support until the age of 21.”Any other dependents listed in a deceased employee’s “labor book”, such as elderly relatives, will also receive support from the fund.The initiative triggered a mixed response from union leaders in the garment industry, which employs some 330,000 workers in nearly 400 factories.Ath Thon, president of the Coalition of Cambodian Apparels’ Worker Democratic Union called for transparency within the NSSF.“We welcome the establishment of the NSSF as our workers have never received any appropriate compensation,” he said.“Furthermore, we propose employers and unions can exercise the right to examine the NSSF director’s performance. We want the Ministry of Labor to be transparent work because a public administrative institution has newly been founded as part of an effort for workers – most of whom are weak and suffer much injustice from their employers.”

Acleda poised to shift focus out of Cambodia
August 10 2008By Raphael Minder in Hong KongFinancial Times (UK)
Acleda, a Cambodian microfinancier that has built up the country’s largest retail banking network, is considering opening its shareholding to a western commercial bank as it starts to expand outside its home market.Last month Acleda became the first Cambodian bank to make a foray abroad, after obtaining a banking licence from neighbouring Laos. The bank is eyeing China and Vietnam next.In Channy, chief executive, told the Financial Times that Acleda had received 19 investment proposals and would decide next month which one would make the best “strategic shareholder”. Western banks are on the list, although he would not disclose names. Acleda began 15 years ago as a microfinance program­me backed by the United Nations and has since established itself as one of Asia’s leading providers of microcredit.It has also developed a full-fledged retail business, with 214 branches across Cambodia. Mr In Channy forecast that, in five years, microfinance would represent 30-40 per cent of Acleda’s lending business, down from 50 per cent now and 70 per cent in 2005.Mr In Channy added that there was no specific timetable for expanding into more countries but sounded particularly optimistic about filling a void in the Chinese lending market. “There is just no institution in China like ours serving the lower sector,” he said.To meet such ambitions, Mr In Channy said Acleda “really needs the capital base to grow”, at a rate of about $70m a year. Adding a shareholder, however, could alter the balance of power, since Acleda is currently 51 per cent-owned by its staff and other locals, while the other 49 per cent is owned by foreign funds and international donors, including the International Finance Corporation, the World Bank’s private lending arm.With inflation recently soaring in Cambodia, Mr In Channy insisted that Acleda could weather any serious economic downturn, noting that its rate of non-performing loans was 0.02 per cent in 2007, compared with an average of 5.2 per cent for the country’s banking sector.In a report earlier this year, Standard & Poor’s, the credit ratings agency, commended Acleda for its good asset quality, “although the laws on secured transactions are not well-defined in Cambodia and recovery is not guaranteed. This might call into question the bank’s ability to enforce claims and magnify its exposure to structural weakness in the economy.”
Cambodia set to build more dams
Cambodia will spend roughly 400 million US dollars later this year to begin construction of new dams in a bid to improve the country's irrigation system and boost rice exports.The Mekong Times quotes Water Resources Minister Lim Kean Hor as saying that irrigation will eventually cover one million hectares of paddies throughout the country.He says the first construction steps have started and the government hopes irrigation will reach nearly 60 percent of the entire country's rice fields, currently only 44 percent are irrigated.
Cambodia will spend
roughly US$400 million
later this year to
begin construction of new
dams in a bid to improve the
country’s irrigation system.
Water Resources Minister
Lim Kean Hor said Thursday
that irrigation will eventually
be in place in over one
million hectares of paddies
throughout the country after
the construction projects are
completed in the later stages
of the new government’s
parliamentary term. “Now
we are proceeding with the
first construction steps and
we hope that irrigation will
reach nearly 60 percent of the
entire [country’s] rice fields
… after the completion of
construction,” he said.
Currently only 44 percent
of the nation’s rice fields are
irrigated.
In a joint project with Qatar,
the Ministry of Water
Resources and Meteorology
plans to build a huge dam
worth over US$200 million
across Svay Rieng province’s
Vaico River next dry season.
That project will irrigate
over 300,000 hectares of rice
fields. Another joint project,
with Kuwait, will see the construction
of a dam worth over
US$100 million across Stung
Sen River, which will be capable
of irrigating 100,000
hectares.
The ministry also plans
to build Kraing Punley Dam
next dry season using a loan
of US$33 million from the
Korean government; Basal
Dam and Chi Kreng Dam using
a US$30 million loan
from the Indian government;
and a US$52-million dam on
the Sangker River.
Yang Saing Komar, president
of the Cambodian Center
for Study and Development
in Agriculture (CEDAC),
welcomed plans to develop
the country’s irrigation. He
said the project will be able
to increase the national annual
rice yield by at least one
million tons. ‘This is a good
project, but the government
must spend money on [construction]
effectively, especially
[choosing carefully]
what types of dams should be
built, so as to avoid wasting
the national budget,” he said.
“We should focus on getting
a regular supply of water to
farmers in the rainy season
as the first priority because
this will make yields higher
than they are currently.”
Owing to the lack of irrigation,
Yang Saing Komar said
Cambodia’s average rice yield
is currently 1.6-2 tons per
hectare. “If more than one million
hectares of our rice-growing
areas can be irrigated adequately
in the rainy season,
the rice yield may increase between
30 to 50 percent – over
one million tons,” he said.
Cambodia, whose current
rice-growing area is over 2.5
million hectares, produces 6-
7 million tons of rice annually,
including a surplus of
over two million tons used
for exports. Prime Minister
Hun Sen recently stated that
the new government intends
to develop a strong irrigation
system that will transform
Cambodia into the biggest
rice exporting country in
the region. “Cambodia will be
able to export 4 to 5 million
tons of rice abroad annually
with these [new] irrigation
systems,” he said.
Chun

Low standards, high prices: Cambodia’s building boom at risk
As the skeletons of
towering new structures
rise above
the capital’s horizon, fierce
competition over highlypriced
construction materials
is putting standards,
and almost certainly safety,
at risk.
Lay Mongleng, the owner
of Depo Lay Mongleng
Multi-Construction Equipment,
said the expanding
economy has spurred a construction
boom. “The price
of equipment is shooting
up because many buildings
and houses are being built,
especially private flats,” he
explained.
Lim Bona, who has been
in the construction trade for
over 15 years, said the price
of construction equipment
began to increase in 2006.
“Our country is developing,”
he said. “We have seen
many hotels, flats, casinos
and new modern buildings
being constructed so they
need a lot of material, especially
in cities and at the
borders.”
Samen, a construction
materials wholesaler, said
expensive materials are one
factor driving Cambodians
to increasingly choose concrete
over traditional wood.
“Presently my wood does
not sell well because it costs
too much,” she said. “Buyers
have stopped building
wooden houses like before;
they now buy bricks, cement,
metal, zinc, and other
construction materials to
build concrete houses
She said a lack of domestic
supply in the face of high
demand has inevitably led
to high prices.
Most materials are imported
from Thailand, Vietnam
and China, Lay Mongleng
said, with Chinese steel
costing US$1,100 per ton
and imported cement US$96
per ton. Poorer quality Cambodian
steel is cheaper at
US$800 per ton. Bricks are
locally produced and sand
locally sourced.
Skimping on expensive
materials and cutting corners
in the rush to finish has
led to shoddy work, warned
Lim Bona.
“It is true that most buildings
and flats we are building
now do not meet proper standards
because people demand
we build them quickly,” he
said. “The high price of construction
materials is a strain
on funds; we are hired so we
just do what we are told.”
Sitha is bitterly disappointed
with the flat she has just
bought in the Phnom Penh suburbs.
“I was really disappointed
with the quality of my new
flat because it was not built
to proper standards. I think it
was merely built to sell, not to
live in because now the drainage
system is blocked, and the
floors are cracking.”
Penh Pheoun, a villager from
Choam Chao in the outskirts of
Phnom Penh, said she could not
afford to build proper foundations
or use high quality materials
in the construction of her
new house. “The price of construction
materials is so high,
I don’t have enough money to
build to proper standards. I
just ordered the builders to use
a combination of bricks and
some wood I already had,” she
complained.
Lim Bona said modern construction
is here to stay, as
warehouses, factories, offices,
hotels and other functional
buildings must be built to high
standards. “We have to keep
up with this new world,” he
added. May Kunmakara

Work Begins on Major New Hotel on Phnom Penh Peninsula
The Cambodia Daily
August 9, 2008
Cambodian conglomerate Sokimex Co Ltd officially began work on Friday on a new $100 million hotel complex on Phnom Penh’s Chroy Changva peninsula.
The 799-room hotel, the third five-star hotel by the Sok Kong owned company, will be built on six hectares of land on the peninsular opposite the Royal Palace.
With 16 stories and two large and 10 small conference rooms for 1500 participants and 1000 car parking lots, the hotel will employ 1200 people when it becomes operational, Sokimex Deputy Director Heu Heng said at the groundbreaking ceremony.
Heu Heng did not know when the hotel will be completed but he said the investment in the area was one for the future.
The company announced details of the new hotel last year, the third such resort run by Sokimex, which operates the Sokha Beach Resort in SIhanoukville and the Sokha Angkor Hotel in Siem Reap town. Sokimex is also currently developing a resort on Kampot province’s Bokor Mountain.

Phnom Penh municipality granted a 99-year lease to Sokimex on the Chroy Changva land in February 2007 at a cost of $5.6 million.

Cambodia last year received 2 million visitors and between 40 and 50 percent spent time in Phnom Penh
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Pizza Hut follows KFC to Cambodia
Malaysian group gets rights to open Pizza Huts in CambodiaAug 8, 2008DPA
Kuala Lumpur - Malaysian restaurant operator QSR Brands Bhd has obtained rights to operate outlets of the fast-food chain Pizza Hut in Cambodia, a news report said Friday.The company, which opened the first KFC fast-food chicken outlet in Cambodia on March 2, obtained approval from the international restaurant company Yum Restaurants Asia Pte Ltd to open the Pizza Huts, The Edge Daily, a Malaysian financial newspaper, reported.
The first two locations will open at the corner of Sihanouk Boulevard and street 63 and another on Kampuchea Krom Boulevard, he said.

KFC is currently being operated via Kampuchea Food Corp Co Ltd, a joint venture of QSR, Royal Group of Companies and Rightlink Corp Ltd, the report said.The three companies also have Cambodia rights to Taco Bell and A&W restaurants, but there aren’t immediate plans to open them in Cambodia, said Debasish Pattnaik, director of business development, project and investment for Royal Group.
The restaurant will compete with a number of pizzerias, including the Thai-based Pizza Company and Phnom Penh-based Pizza World.

Pizza company is owned by the Minor Group, which had owned the Pizza Hut franchise in Thailand until 2001 when a lawsuit led it to rename more than 100 locations to Pizza Company.

Virak Tep, Pizza Company’s operations manager in Cambodia said that Pizza Company established itself in Cambodia in 2005 and now has four locations whereas Thailand has 200 locations.


Trat, Koh Kong sign MoU
Thursday August 07, 2008JAKKRIT WAEWKRAIHONGBangkok Post
Trat signed a memorandum of understanding on trade and investment cooperation with Koh Kong and Sihanoukville in Cambodia yesterday. The MoU is the extension of an agreement reached three years ago, which succeeded in shoring up falling agricultural produce prices.The interior and foreign ministries of both countries have approved the development of a sister cities relationship.Yoy Seuy, deputy governor of Koh Kong province, which is opposite Trat, said bilateral trade and investment could become smoother with help from government agencies. Koh Kong has grown rapidly with an influx of foreign investment in business, energy, tourism and construction.Sihanoukville governor Say Hak said the province aims to become the top tourism destination in Cambodia, boasting beaches, an airport, and a deep-sea port.
VN Border economic zone attracts 16.5 billion USD 07/08/2008Vietnam Net Bridge (Hanoi)
Bo Y International Border Gate Economic Zone in Central Highlands Kon Tum province has so far drawn 24 investment projects with a total registered capital of 282 trillion VND (16.5 billion USD), according to the zone’s Management Board.The most remarkable project is a six-billion USD international airport which is jointly developed by the Global Investment Enterprise Corporation (GIEC), Sem Tech of Malaysia and PMC Group of Singapore . The first phase of the project is expected to start soon and to be completed by 2011.The GIEC has also started work on the construction of a five-star hotel in the international entertainment area with an initial investment capital of 800 million USD.Other large projects included a trade centre valued at 296 billion VND (17.4 million USD) and a cassava powder plant capitalised at 80 billion VND (4.7 million USD), which has already become operational.The Bo Y economic zone is situated at the T-junction between Vietnam , Laos and Cambodia , core of the economic development triangle that was endorsed by the prime ministers of Vietnam , Laos and Cambodia in Vientiane on November 21, 2004.At a recent joint trip to the zone, Vietnamese Deputy Prime Minister Nguyen Sinh Hung and his Laos counterpart Somsavat Lengsavad both pledged to create favourable conditions for Bo Y’s development.

Cambodian Co Plans To Produce Organic Fertilizer From Garbage
PHNOM PENH, Aug 8 (Bernama) -- A Cambodian firm, Cintri, who is incharge with a mammoth task of collecting the capital's garbage, will now recycle Phnom Penh's mountains trash into organic fertilizer, Cintri's Deputy Director Seng Chamroeun said Friday."People will need to start sorting their garbage into specific categories before this plan can start," China's Xinhua news agency quoted him as saying to a local daily.Cintri will soon begin combing the refuse piles at Stung Meanchey landfill site for appropriate organic waste, he added."We want to make a large quantity of compost to supply farmers. In addition, we can reduce garbage pile ups," Seng Chamroeun said, stressing that cooperation from authorities and citizens is essential to ensure the strategy is a success.Fertilizer prices peaked this year at three times their cost in 2007, with about half of Cambodia's estimated two million farmers adversely affected by the price rise, according to the Cambodian Center for Study and Development in Agriculture.

Cambodia-Kuwait to sign oil and gas,
investment protection agreements
August 5, 2008
Cambodia and Kuwait were expected to sign four key documents covering trade agreements, investment protection, a memorandum of understanding on the cooperation between the two ministries of foreign affairs, and an oil and gas cooperation deal.
Kuwaiti private investment could also focus on agriculture and include a zone that produces food only for export to Kuwait.

Kith Meng, chairman of Royal Group and President of the Cambodian chamber of Commerce said there were some exchanges of information in the field of tourism, energy and agriculture.

Prime Minister Hun Sen requested Kuwaiti Premier Prince Sheikh Nasser Al-Mohammad Al-Jaber Al-Sabah to extend low-interest loans to Cambodia for developing infrastructure such as roads and irrigation systems.

Japanese trade agreement comes into force
An investment agreement between Cambodia and Japan which will offer Japanese investors preferential treatment and ease their entry into the Kingdom came into force Thursday, according to an announcement from the Japanese Embassy.
Diplomatic notes on the trade pact, labeled the Agreement for the Liberalization, Promotion and Protection of Investment, were exchanged between the two nations in Phnom Penh June 1.
“The agreement symbolizes the first step of strengthening the economic relations between Japan and Cambodia … [and] contributes to the Cambodian development strategy [of] economic development by inviting foreign direct investment,” said a summary of the agreement.
Japan, which has the world’s second largest economy, has been the top aid donor to Cambodia since the early 1990s, but has lagged far behind other Asian nations in terms of investment.
China and South Korea have invested US$1.7 billion and US$1.5 billion respectively in Cambodia since 1994 while Japan has invested just US$135 million, according to figures released earlier this year by the Council for the Development of Cambodia.
Negotiations on the agreement began in September 2006 and it was signed when Prime Minister Hun Sen visited Tokyo in June 2007.
The Mekong Times

Cambodia's trade imbalance with Asean nations persists
An imbalance in trade revenues between Cambodia and other Asean nations is still high, although the government is trying to balance it, according to a report released Thursday by the Ministry of Commerce.
Cambodia imported goods worth some US$1.6 billion in 2007 from Asean nations with exports totaling just US$120 million, according to the report.
The report said that the most significant imbalance was with neighboring Thailand, with Cambodia’s exports of US$16 million dwarfed by its imports of US$562, almost as high was the imbalance with Vietnam of US$671 million against US$83 million.
Imports from Malaysia reached US$99 million with just US$4 million in exports, Indonesia with US$61 against US$1 million, and at the lower end of the scale Cambodia imported US$90,000 of Myanmar goods but exported a miniscule US$2,000.
Mao Thora, deputy secretary of state for the Ministry of Commerce, said that the report did not record unofficial rice exports to Vietnam worth over US$300 million, adding that the government is making efforts to redress the trade imbalance.
Cambodia currently exports products such as rice, rubber and cassava to Asean countries while its significant imports include industrial products such as cement, iron and other construction equipment.

The Commerce Ministry reported in 2007 that Cambodia exported garment products worth US$2 billion to the US market and millions of dollars to the EU.
Garment factories worry about slumping sales
Friday, 01 August 2008Written by Kay Kimsong The Phnom Penh Post
Trade officials and economists say the garment sector is threatened with a slowdown over coming months if productivity does not increase.For the first three months of 2008, garment exports plummeted to US$1 billion from $1.99 billion at this time in 2007 and $1.9 billion in 2006.“The garment sector is slower than in past years, we fear that additional costs would lead factory owners move to other places,” said Cheat Khemara, senior labour officer for the Garment Manufacturers Association of Cambodia (GMAC).“The most valuable [garment] exports and textiles went to China, while Cambodia gained only workers’ salaries and factory rental fees,” he said, adding that factory managers have become increasingly concerned over rising operating costs.Some 326 factories operate in Cambodia after 10 closed last year, employing 360,000 workers.“I think our garment sector for first half year of 2008 is not too bad, because besides the US market, we have exports to the EU market as well,” said Sok Sina.
VN Acquires Majority Stake in Mining Firm
The Cambodia Daily
August 1, 2008

Vietnam’s largest coal producer said Thursday it had acquired a 70 percent stake in Southern Mining Co, a Cambodian firm conducting controversial mineral exploration within a wildlife sanctuary.

The state-owned Vietnam Coal and Minerals Industry Group purchased the controlling share in the company for an undisclosed sum last month, Nguyen Binh, Vinacomin’s Cambodia director, said in an interview.
Since 2006, Southern Mining has been exploring for antimony, chromium and copper at a Pursat province location within the 334,000-hectare Phnom Samkos Wildlife Sanctuary.

Southern Mining Deputy Chairman Khun Kakkda said Thursday an environmental impact assessment had been completed but was being reviewed in Hanoi.
The company has said initial deposit estimates are in the millions of tons.
“The Vietnamese company paid me a lot for the big sum I initially invested. So I decided to give a 70 percent share for Vietnam,” he said.
“We hope that we can build a refinery in the next two years,” said Khun Kakkda, adding that the company plans a further 100 exploratory drill holes in the Pramoy commune location.
(By Douglas Gillison and Kuch Naren)
Can Cambodia become an Asian tiger?
Wed, Jul 30 2008Money Matters
Cambodia’s ruling party won re-election in an imperfectly democratic ballot on 27 July and with nearly 10% annual economic growth since 2000, it may be turning into another Asian Tiger.Like its neighbour Vietnam, Cambodia is suffering an imported inflation problem because of rising food and fuel costs. Nevertheless, there are signs of progress. Cambodia has enjoyed economic growth of more than 10% a year since 2000, led by its main export industry, garments.Its annual population growth has declined from 2.3% in 2000 to 1.8%, facilitating rapid economic growth by reducing the strains that high population growth places on education and infrastructure.Cambodia’s public sector absorbs only 12% of its gross domestic product (GDP), its budget and payments are close to balance, and it expects to open a stock exchange in 2009.Foreign investment is the key, as it has been in Vietnam, where it totalled 65% of GDP in the first half of 2008. Cambodia permits 100% foreign ownership in most sectors, and foreign investment is expected to double in 2008 from $2.7 billion in 2007 (30% of GDP), with China and South Korea the leading investors.But with rapid growth in Vietnam, greater prosperity in Thailand, its other neighbour, and the US market open to its exports, Cambodia could be set to become an Asian Tiger in its own right.

Vietnam’s industrial output up 16.4 percent in first 7 months
Vietnam’s industrial output is estimated to reach US$22.9 billion in the first seven months this year, up 16.4 percent over the same period last year, Vietnam News reported yesterday.
Products expecting high increase include vans up 96.2 percent, passenger vehicles up 78.6 percent, washing machines surging 54.2 percent and TVs up 34.4 percent, the paper quoted figures from the General Statistics Office.
Some other products will see modest growth during this period: electricity up 13.8 percent and fertilizer up 4.9 percent. Other products posted a decrease, with crude oil down six percent and natural gas down 0.2 percent.
Vietnamese producers are now faced with high inflation and high lending interest rate.
The Consumer Price Index is forecast to increase by only 1.13 percent in July over the previous month, the lowest rise since early this year, but the CPI for the first seven months was up 21. 28 percent year-on-year, which companies consider to be a high rate.
Lending interest rate for loans now range from 20 to 21 percent a year, making it expensive for producers to mobilize capital.
Vietnam, importing at least 70 luxury cars worth US$200,000-500,000 each in the first half of this year, is continuing to import such vehicles mainly to serve the demand of businesspeople, according to local newspaper Saigon Liberation yesterday. (Xin Hua)
Vietnam to foster border economic zone
The Vietnamese government will create more favorable conditions for the further development of the Bo Y border economic zone in the central highlands in Kon Tum province, Vietnamese newspaper Young People reported Friday.
During his visit to the zone July 24, Vietnamese Deputy Prime Minister Nguyen Sinh Hung instructed provincial authorities and the zone’s management board to have better policies and mechanisms on improving infrastructure and luring investors into the zone, making it an economically developed area.
The zone, having an international border gate with Laos and a national border gate with Cambodia, has so far housed 24 domestic and foreign- invested projects with total registered capital of some US$12.2 billion, the newspaper said.
The projects include a cassava powder factory with investment of US$23.5 million, and a five-star hotel worth US$800 million.
The management board informed the deputy prime minister that some foreign firms want to build an international airport with investment of US$6 billion in the zone, local newspaper Young People reported Friday.
(Xinhua)

Vietnam’s crude oil export earnings up despite smaller volume
Vietnam is estimated to post a year-on-year surge of 52.2 percent in crude oil export value, despite a 12.1 percent drop in export volume, in the first seven months of this year.
Between January and July, Vietnam is set to export 7.8 million tons of crude oil worth US$6.8 billion, mainly to China, Singapore, Japan and the US, according to the country’s General Statistics Office Monday.
Vietnam is lessening the export of such fossil fuels as crude oil and coal to ensure sufficient supplies for oil refineries and energy-thirsty industries like electricity and cement. Its first refinery with an annual processing capacity of 6.5 million tons of crude oil under construction in central Quang Ngai province is scheduled to operate next February.
Vietnam was estimated to have imported roughly 8.3 million tons of petroleum products valued at nearly US$7.8 billion in the first seven months of this year, up 11.4 percent and 90.7 percent, respectively, against the same period last year, said the statistics office. (Xinhua)

Election outcome ‘best case scenario’ for big business
The landslide victory which the Cambodian People’s Party (CPP) appears to have secured in last Sunday’s election will enhance the Kingdom’s reputation as an up-and-coming investment destination and bodes well for future economic stability, say foreign investors and business leaders.

“This election result was a best case scenario for investors,” said Douglas Clayton, the CEO of Leopard Capital, one of several private-equity funds which, in the last few months, have revealed plans to inject a total of US$500 million into the economy.

Independent electoral watchdog the Committee for Free and Fair Elections (COMFREL), has preliminarily announced that the CPP won around 90 of the National Assembly’s 123 seats in the election, or 73 percent of the national vote.

A lot of local business activity has been put on hold pending the elections, and things should get back to normal now that this is out of the way,” said Clayton, whose firm has so far raised more than a tenth of the US$100 million it plans for its Cambodia-dedicated fund, Leopard Cambodia.

“Businessmen like stability and predictability, and that is what the government delivered for the past five years, which has led to good economic growth,” said Bretton Sciaroni, the chairman of Cambodia’s International Business Club.

Marvin Yeo, co-founder of Frontier Investment & Development Partners, whose firm plans to establish a US$250 million private-equity fund in Cambodia, says that there will “absolutely” be a positive reaction from investors to the government’s re-election.
The Cambodia Investment Board predicted this year that FDI levels are on track to reach US$5.4 billion in 2008, while the launch of a stock exchange in December 2009 is hoped will lead local companies down a newly forged path of transparency and financial maturity.

New tourism zone for Takeo province
A new tourism zone is to be developed at Sa Yangkoh Mountain in Kirivong district, Takeo province, about 30 km from the provincial capital of Takeo.
The Neang S’kra Oub resort has been approved by Deputy Prime Minister Sok An and is being funded by private investors. Close to the Vietnamese border, the site is expected to attract a substantial number of tourists.
Takeo Provincial Governor Srey Ben said construction of the resort will commence after the elections.
“The government’s five-year-plan places the tourism sector as the second priority after the industry
sector, so we are proud that our province has become an attractive tourist destination,” he said. “This pride will give us the strength to improve our present weak points … [and] we will take this opportunity to lure more investors.”
Hun Saroeurn, director of the Provincial Tourism Office, said his office has put in a lot of effort to develop the province’s resorts and tourism zones by forming relationships with companies and NGOs, as well as trying to promote the resorts to potential tourists.
According to a Provincial Tourism Office report, the province saw 273,873 tourists in the first half of 2008, of which 8,668 were foreigners. In the first half of 2007, it attracted 254,070 tourists, of which 5,206 were foreigners. Khoun Leakhana

ANZ Royal Chief Executive Expects Future Gains
The Cambodia daily
Established in September 2005, ANZ Royal today has 16 bank branches, 75,000 customers, $400 million in deposits, $200 million in loans and 116 ATMS. Eight of their branches and tw0-thirds of their customers are in Phnom Penh.
Stephen Higgins, Chief Executive Officer of ANZ Royal, spoke with The Cambodia Daily’s Stephen Kurczy this month about why ANZ Royal expects to gain even more ground soon in Cambodia.

Q: Why did ANZ Banking Group choose to invest in Cambodia?
A: To be honest, it was our partner. Kith Meng’s Royal Group came to Australia and knocked on all the doors of the banks. It was him that got us to come up here. He basically said, “Send some of your guys out here, and if you have a look and still don’t want to invest, then I’ll cover the costs, but if you do decide you want to partner with me, then you can weight the costs.”
So we came up in ’04 and decided there was an opportunity here. And both my predecessor Dean Cleland and Kith Meng pushed very hard. It was very much driven by people on the ground here.

Q: What made Cambodia an attractive place for investment?
A: A lot of people outside of Cambodia don’t realize how strong things have been here. If you look at deposits and lending as a percentage of GDP, the rest of emerging Asia on deposits is up in excess of 60 percent of GDP; back in ’06 when the [International Monetary Fund] last measured it, Cambodia was only about 20 percent, less than a third of what it is in other emerging markets in Asia.
On the credit side, the difference is even more stark. The number of deposit accounts back then was growing at almost 40 percent a year, and it’s probably similar now. You’ve got very high GDP growth and increasing penetration of financial services in the market.
There is a huge amount of natural growth in the market. As long as you have a good proposition, it can be relatively easy to make money, which is why there are 24 commercial banks here. But to be successful, you obviously need something more, which is why ANZ Royal has spent so much on its marketing. The branches here are as good as what we see in Australia or New Zealand.

Q: What is the demographic of an ANZ customer?
A: It’s that mass affluent, that middle class emerging here.

Q: Cambodia ranks as ANZ’s largest retail network outside of Australia and New Zealand. Where does Cambodia rank as far as profits?
A: It’s close to at the bottom. We made our first profit last year. We made about $500,000.

Q: Is that all ANZ Royal has to show for its work?
A: The actual bank could make more profit, but that means you’re not going to be investing as much in business. It goes back to what’s better: $2 today and $2 next year, or $1 today and $10 next year. We know we’re on track for that.
We are very happy with the financial direction of the business, which is why we are rolling out so many ATMs and so many branches. We wouldn’t be doing that if we weren’t very confident in the financial payoffs in the future.


Q: So short-term profits are not a concern to ANZ Royal?
A: They’re a concern, but instead of just focusing on the profits today, it’s thinking about profits tomorrow and the year after and the year after that. Rather than having too short-term a focus, which a lot of Western companies do, here there’s as much a focus on the longer term and not just on the short term. When ANZ Royal was established, there was a space to be filled.
There was a role for a high-quality bank to come in that could offer trust, service, convenience. HSBC could have come in to fill that; Standard Chartered could have come in to fill that; ANZ and Royal Group combined to fill that space. And once you make that strategic decision, you want to fill that space as quickly as possible so there isn’t that room for HSBC or Standard Chartered to replicate it. So the more quickly we can fill in that space, the harder it makes for someone else to come and do it.

Q: Why is ANZ Royal so sure there will be a long-term payoff?
A: Because we can see what revenues are doing: We are very comfortable with the trajectory. And we can model these things out a fair way ahead so that we do have a fairly good idea of what profits we can make.

Q: What do you expect for profits in 2008?
A: You’ll see when you read our annual reports. They’ll be significantly higher than last year.

Q: ANZ Royal owns 116 ATMs, with the majority in Phnom Penh, and you’re opening more every month. What hurdles does ANZ Royal face to getting Cambodians comfortable using ATMs?
A: There will always be people more comfortable using a branch. But for the younger generation in particular, if you can use a mobile phone, why can’t you use an ATM? Look how easily people have adapted to mobile phones here: The mobile phone penetration rate is quite extraordinary. But they’re not for everyone….
Remember, there are still only about 200 ATMs in all of Cambodia. It’s not as if there are a lot of ATMs here. There are still more than enough customers to support 200 ATMs and quite a few more, which is why we’re continuing to roll out ATMs.

Q: Is ANZ Royal looking into mobile phone banking?A: It’s on the agenda. The question is: How do you do it commercially? It has to be exceptionally low cost to make it work for people on lower incomes, yet it also has to be commercial for us. So it’s trying to find that balance.

Q: Is ANZ Royal preparing at all for Cambodia’s upcoming stock exchange?A: It’s close to two years away; do we need to set up something two years out? No. We can make the same investment decision next year in terms of participating in some way with the stock exchange that still allows us to generate revenue when it starts without having to incur costs now. We will keep a watching brief on it. It’s something that the board will deliberate on; it’s really an issue for the stockholders as far as what role we should be playing.
Q: At the end of May, the National Bank of Cambodia increased reserve requirements for commercial bank deposits from 8 percent to 16 percent. Was it a wise move?
A: Yes. One of the problems with having a dollarized economy is that the normal instruments of monetary policy don’t normally apply. The US Central Bank, the Australian Central Bank, they can increase interest rates in order to reduce the monetary supply. Because of the proportion of US dollars in use here, the NBC cannot change the interest rate on US dollars. The tool that is has is the reserve requirements.
By draining liquidity out of the market, by forcing the banks to put more with the NBC, it basically forces the banks to raise their interest rates. So whilst it’s a blunt tool, it’s really the main tool they’ve got. Given that inflation is doing and given what the monetary supply is doing, I think it’s a sensible move.

Investment Pact Signed by Japan Effective Today
The Cambodia Daily, Stephen Kurczy
An investment agreement between Cambodia and Japan goes into effect today, promising to promote and protect future Japanese investment in Cambodia’s increasingly attractive business atmosphere, government and business leaders said.
The deal, called “The Agreement between Japan and the Kingdom of Cambodia for the Liberalization, Promotion and Protection of the Investment,” was signed in Tokyo on June 14, 2007, by then-Japanese Prime Minister Shinzo Abe and Prime Minister Hun Sen.
The 76-page agreement outlines regulations on myriad investments, from mining to airlines to explosives, and also defines intellectual property rights and the means for settling investment disputes.
The agreement says it intends “to further promote investment” between the two countries and “further crate favorable conditions for greater investment,” and establishes a joint committee to implement the investment agreement.
Cambodia is the seventh Asean nation to sign an investment agreement with Japan, and the second to implement one this year after Laos, said Kazuo Chujo, counselor of the Japanese Embassy.
In 2006, Japan and Cambodia agreed to start pursuing the investment agreement and official negotiations began in early 2007, Chujo said.
Necessary domestic procedures in Japan were completed July 1 of this year, Chujo said, allowing it to take effect today.
“This agreement has a great significance, as it increase transparency, legal stability and predictability,” he said Tuesday by e-mail.
“Furthermore, this agreement not only promotes the investment between Japan and Cambodia, but also symbolizes the first step of strengthening the economic relations between the two.”
Finance Ministry Secretary-General Hang Chuon Naron called the investment agreement a “milestone” that will increase Japanese investment in electronics, information technology, agro-business, food production and processing.
“It is an important milestone. Japanese investors want a good and perfect framework in place before they come,” he said.
This agreement is unique because it promotes investment liberalization and ensures Japanese companies are treated equally with Cambodian companies, Hang Chuon Naron said.
“Most agreements focus only on investment protection. This one is liberalization. It means that the government has to open up sectors for the Japanese to come in,” he said by telephone Monday.
For now, Japanese investment in Cambodia remains limited, although Cambodia’s first two Japanese-owned banks said this is a changing fast.
Maruhan Japan Bank, which opened in May with $25 million in startup capital from Japan’s largest pachinko parlor operator, was the first Japanese-owned bank in Cambodia.
The second partly Japanese owned bank in Cambodia, Phnom Penh Commercial Bank, is owned 40 percent by Japan’s SBI Holdings Inc and 60 percent by South Korea’s Hyundai Swiss Savings Bank, General Manager Ha Hongsik said. The two companies invested $15 million in startup capital to form PPCB, he said.

Kuwaiti Premier To Visit For Talks with Hun Sen
The Prime Minister of Kuwait, Sheikh Nasser Al-Mohammed Al-Ahmad Al-Jaber Al-Sabah, will make an official visit to Cambodia from Sunday to Tuesday, according to a release from the Ministry of Foreign Affairs on Wednesday. The Kuwaiti leader aims to foster the relationship between his country and Cambodia through a visit with Senate President Chea Sim and official talks with Prime Minister Hun Sen, said Sin Bunthoeun, chief of the Foreign Affairs Ministry press department.
Southern Gold make first substantial Cambodia gold intersections
28 Jul 2008Source: News Bites
Southern Gold Ltd announced the first substantial gold intersections in Cambodia, including 4m at 15.7 gpt Au and 32m at 2.74gpt Au in a gold trench intersection at Kratie North.The company has acquired 100% of four Cambodian exploration licences covering 1,000 sq km prospective for gold and base metals and now holds 100% each of 7 granted ELs covering over 1,500 sq km.

Footwear exports hit $22 million
Friday, 25 July 2008
Cambodia exported $22 million worth of shoes in the first quarter of 2008, according to the Ministry of Economy and Finance (MEF), with industry insiders predicting new foreign-owned companies to swell local production. Tiger Wing Co., a Japanese-owned firm based in Cambodia, plans to produce high-quality exports for the Japanese market. “We plan to produce 50,000 pairs by the end of this year and 200,000 pairs once we’re in full production,” said Tiger Wing director Sakamoto Naoyuki.
Indian tycoon places huge rice order with Cambodia
Friday, July 25, 2008ABC Radio Australia
An Indian tycoon has reportedly put in an order to buy 100,000 tons of Cambodia's rice for distribution in his own country and various other countries.The provincial governor of Banteay Meanchey, Ong Oeurn, says the unnamed Indian tycoon will buy the rice from the province at the end of this year.The buyer wants another 500,000 tons in 2009-2010 and about one million tons in 2010-2011.Ong Oeurn says Banteay Meanchey province produced a surplus of about 190,000 tons of rice in 2007, so it can fulfill India's request.
The Mekong Times quotes the Minister of Agriculture, Forestry and Fisheries, Chan Sarun, as saying India's request to buy the rice is not a problem.
Chinese tourist arrivals up 28%
More than 52,000 Chinese visited Cambodia between January and April 2008, a 28 percent increase over the same period last year, according to the Ministry of Tourism. Tourism minister Thong Khon said on July 21 that Cambodia hoped to benefit from larger numbers of Chinese traveling overseas. “By 2020 an estimated 100 million Chinese are expected to travel the world. If we can share in just five percent, we’ve got five million Chinese tourists,” he said. Tourism is one of the few viable industries in Cambodia, which expects to have three million foreign visitors by 2010.
Silkmakers to spin industry revival
Three businesses held a ‘Silkworm Social’ on July 17 at the Regents Park Hotel in Phnom Penh to promote silkmaking in Cambodia. The event – organized by Lotus Pond, Santuk Silks and Beyond Interiors – showcased the processes involved, from silkworms spinning their cocoons to looms weaving fabric. “Our interest is to help reinvigorate the Khmer golden silk industry,” said Bud Gibbons, who with his wife, Kong Navin, owns Santuk Silk farm in Kampong Thom province. “Khmer silk had a wonderful international reputation in the past. We want to get that back again.” Cambodian silkworms are known for producing a high quality, naturally yellow-tinted silk. Gibbons also discussed the relative accessibility of silkmaking as a form of employment. “Silk weaving is an ideal activity for people of all different ages and ability levels because there are so many parts to the whole process.” Phann Siem, a manager for the Lotus Pond Association, said, “I think Khmer silk is not only popular with many people, the industry also provides a lot of jobs for people. Within my association we can provide work for 150 to 200 people. “We export about 5,000 to 6,000 silk scarves per year to three countries: the USA, Canada, and Australia,” she said.“There is a demand for silk within Cambodia. Cambodian people like to use Khmer silk because it is good quality.“We have to support Khmer domestic industries.”“Cambodia has many handicraft sectors, such as in brass and silver and woodwork, but silk is another important handicraft, and it is in danger of dying out,” said Sompen Kutranon, a Thai businesswoman who has lived in Phnom Penh for 19 years. Sompen explained that the silk industry is losing many of its artisans to factory work. “These days, the young people don’t want to work in the village, they want to find a life in the cities. This is why it is important to hold an event like this to show the people who make silk that their work is appreciated.”“The people present at this event are the team leaders. They will go back with photos from this event to show the silkmakers in their village. It will instill a sense of pride in their work,” she said.Toun Sophan, 42, belongs to one of about 1,000 families making silk in Takeo province. “I can earn from around $60 to $100 selling silk a month. It helps people in my village to stay home in their families and communities without having to leave home to find another job,” she said.“If we don’t support our silk we will lose our tradition, and the next generation will never know about Khmer silk.”

Bad medicine floods countryside
Friday, 25 July 2008

Fake and expired pharmaceuticals are pouring into rural areas, as their circulation declines in the capital due to urban dwellers’ increased knowledge of counterfeit medicines, health officials warned. “There are about 500 pharmacies and numerous medicine booths in Phnom Penh. We have recently inspected those pharmacies and found only 3-4 fake medical items, which had been smuggled from Thailand and Vietnam,” Dr Veng Thai, director of the Phnom Penh Municipal Department of Health, told the Post.“I estimate that currently only 2-3 percent of medicines sold in the city are fake or expired,” Veng Thai said. “Since we started pharmacy inspections in the city, imitation and out-of-date drugs have forayed into rural towns and areas,” he said.“Rural people have little knowledge about medicines, so fake drug smugglers are selling their products in rural areas rather than in the city,” he said. “Such pharmaceuticals are sometimes made from flour. While some are of half quality, others just have the brand name of registered drugs and would have no effect on treating disease.”Dr Yim Yann, president of Pharmacists Association of Cambodia, agreed that rural dwellers are the main victims of fake and out-of-date pharmaceuticals. “Rural people are poor, have no knowledge of medicines, so they go for the cheaper product,” he told the Post.“There are currently about 6,000 medicines that have been registered with the Ministry of Health (MoH).” Yann said. “We inspected medicines in pharmacies and found that between 60 and 80 percent are registered medicines at the MoH.”Lyaun Hay, managing director of Pharmaceutical Product Manufacturing (PPM), estimated that about ten percent of all medicines circulating in Cambodia are fake, and that PPM loses almost half a million dollars a year due to the presence of fake drugs.“PPM’s revenue is around $4 million a year. Fake drugs take about ten percent of the market share, so we lose about ten percent of our revenue,” he said.“I agreed that the MoH is actively working to combat fake pharmaceuticals, however, I think that the circulation of fake medicines is still rife, especially in rural areas,” he said.Dr Nuth Sokhom, Minister of Health, told the Post on July 15 that fake and expired drugs are still a threat to people’s health, especially in rural areas. “Last year, we found about 35 items of fake medicines – Paracetamol, and antibiotics such as Ampicillin and Amoxicillin, and malaria drugs, that were mainly smuggled from Thailand and Vietnam,” he said. “The real medicines have a ‘vignette’ displaying the name of the company importing the medicine and below that the letters CAM with a code number,” he said.Nuth Sokhom said the MoH is constantly educating pharmacies not to sell counterfeited drugs, but fake medicines can still be found for sale.“I have little medical knowledge and I have sold medicines for 20 years,” an unlicensed medicine seller at the Takmao market, in Kandal province’s Takmao district, who identified herself as Sitha, told the Post.Sitha can sell pharmaceuticals without a license because her father is a member of the staff at the district’s Chey Chumnas hospital.“I sell medicines to customers and retailers and tell them what the suppliers tell me about the medicines,” she said.“I don’t know whether the drug is counterfeited or out-of-date.“Rural retailers come and buy medicines at my shop to re-sell in their villages,” she added. “I have no plans to register my pharmacy,” she said. “Pharmacies in Cambodia have been mushrooming and it is getting harder to compete. If my pharmacy was licensed I wouldn’t be able to sell cosmetics and groceries as well as medicines.”
New Korean bank enters local market
The third Korean commercial bank to set up shop in Cambodia opened July 16, bringing the total number of commercial banks in the Kingdom to 24, according to National Bank of Cambodia governor Chea Chanto.Speaking at the opening ceremony, Chea Chanto said that Booyoung Khmer Bank was being established at a time when the Cambodian banking sector was seeing rapid growth.The new bank also reflected the growing confidence of Korean investors in Cambodia’s banking system, he said.As the regulatory authority for the banking system, the National Bank supported free competition and reasonable access to credit for borrowers. It encouraged the entry into the market of bankers with entrepreneurial spirit and a high level of professional skills who were able to effectively raise and manage capital and provide credit to more effectively allocate capital resources, Chea Chanto said.We don’t need simple creditors who merely offer loans, he added.“I am highly confident that the bank will demonstrate itself as a good operator that complies with rules and regulations while providing financial services, especially to small- and medium-sized enterprises that need long-term loans to expand their business activities,” Chea Chanto said.“I do hope that the bank will bring real banking professionals to Cambodia to improve business operations, raise management skills, and efficiently allocate financial resources, while respecting the rule of fair competition and market discipline.”“We wish to build financial credibility among Cambodians and business people in Cambodia,” said Booyoung chairman Lee Joong Keun, who said the launch of his bank grew out of the good ties between Cambodia and South Korea and the stable political situation in Cambodia.To celebrate the grand opening, Lee announced that Booyoung Khmer Bank was donating 40,000 white boards worth $3 million to Cambodian schools and would provide $7.5 million for the construction of 300 primary school buildings around the Kingdom. “Booyoung Khmer Bank is the third commercial bank from South Korea after Camko Bank and Shinhan Khmer Bank to open since last year, and its total capital is 100 percent held by Korean shareholders,” said Chea Chanto.

Cambodia to Open Bourse in 2009; Urges Corporate Transparency
By Netty Ismail and Yoolim Lee
July 24 (Bloomberg) -- Cambodia plans to open its first stock exchange and start a corporate bond market in the fourth quarter of 2009 in a bid to attract foreign funds to Southeast Asia's second-poorest nation, a government official said.
Six to 10 companies, with a combined market value of $200 million to $400 million, including Sokimex Group, the country's biggest petroleum company, and Acleda Bank Plc, its largest bank, will likely be listed on the exchange within a year of it being set up, Kao Thach, head of the Ministry of Economy and Finance's financial market division, said late yesterday.
Cambodia, which abolished money under the Khmer Rouge three decades ago, is seeking to lure foreign funds as economic growth slows after peaking at 13.5 percent in 2005. The government will need to improve the legal system and urge Cambodian companies to open their accounting records to investor scrutiny, said Agost Benard, who covers the country for Standard & Poor's.
``Given all the uncertainties and lack of transparency, at least initially, it will probably be the local people who are willing to take the punt,'' said Benard, associate director at the rating company in Singapore. ``International investors who expect higher standards of disclosure and transparency will take a wait-and-see attitude.''
The government last year asked more than 400 companies, most of which are family businesses, to get their financial statements audited to improve transparency, Thach, 34, said in an interview in Phnom Penh.
Local Rules
``Cambodia has been effectively cut off from the rest of the developed world for the past three decades, so a lot of business has been done based on unwritten local rules,'' said Marvin Yeo, co-founder of Frontier Investment & Development Partners in Phnom Penh.
Frontier Investment, a private-equity fund, is raising $250 million to put in the second-poorest of 10 Southeast Asian nations, and will cash out of some of its planned investments through listings on the exchange, Yeo said.
The listing requirements in Cambodia will likely be modeled on the Kosdaq, South Korea's second stock market that was set up 12 years ago for small- and medium-sized firms as well as venture start-ups, Thach said.
Companies seeking a Kosdaq listing need to be in business for at least three years with minimum paid-in capital of 500 million won ($495,417) and debt-to-equity ratio of less than 150 percent of the industry mean. Venture capital firms have less stringent requirements under the South Korean government's program to prop up smaller technology companies.
Raising Capital
South Korea's exchange is helping Cambodia set up its bourse. The Cambodian government, which will likely own at least 51 percent of the planned venture, and the operator of the Seoul-based bourse, Korea Exchange Inc., will begin discussions next month to decide on their shareholdings, Thach said.
The Cambodia Securities and Exchange Commission will likely be set up as early as September, Thach said.
``They're nowhere near getting the rules together, the criteria for listing, transparency, proper accounting,'' said John Brinsden, vice chairman of Acleda Bank, the largest Cambodian bank with 209 branches in 24 provinces.
Acleda Bank will ``need a lot of capital over the next few years'' as it opens more offices in Cambodia and neighboring countries including Laos, Brinsden said in Phnom Penh.
Sokimex, which has monopoly rights to ticket sales at the Angkor Wat ancient temple ruins in Siem Reap, plans to expand its hotel and resorts business, Chief Executive Officer Sok Kong said on the company's Web site.
Transparency Concerns
Other Cambodian companies considering initial public offerings include Canadia Bank Plc, Union Commercial Bank Plc and Mong Rithy Group, which has palm oil plantations in Sihanoukville, Thach said.
Royal Group, which owns the country's biggest mobile-phone operator and has a partnership with Australia & New Zealand Banking Group Ltd. in Cambodia, will consider a listing ``in the future,'' Chairman Kith Meng said in an interview in Phnom Penh.
Companies can sell shares or bonds in Cambodia's currency, the riel, or the dollar, which will mitigate any foreign exchange risk for international investors, Thach said.
Still, ``the biggest concern would be the credibility of the companies or their reporting standards,'' said Frontier Investment's Yeo. Transparency International, a private monitoring agency based in Berlin, ranked Cambodia 162nd of 179 countries in its annual report on perceptions of corruption last year.
Cambodia To Experience Labor Boom: Report
By Stephen Kurczy
The Cambodia Daily

As many countries are beginning to feel the negative effects of aging demographics, Cambodia is starting to experience a boom in its work force that will sustain itself for decades, freeing up capital and providing relatively cheap and abundant labor, Swiss banking giant UBS said in a recent report.

Cambodia’s working age population, those aged 15 to 64, will continue to grow from 8.3 million in 2004 to 13.8 million in 2030, according to the report, which was released last month.
And while Cambodia’s labor force will continue to grow through 2050, by 2020 decline will set into Sri Lanka, China, Thailand, Japan, Korea and Singapore.
“India, Cambodia, the Philippines and Pakistan will enjoy the benefits of falling youth dependency and rapidly expanding work forces for decades to come. This will effect relative long-term growth, the relative strength of government’s fiscal positions and aggregate consumption patterns,” the report states.
Investment Manager Simon Smiles, who authored the report, said the study examined the impact of aging on long-term gross domestic product growth and identified long-term trends relevant from an investment standpoint.
“For Cambodia, the economic implications are positive,” Smiles said in a recent telephone interview.
Global aging, named along with global terrorism and global warming by the UN as one of the top three socioeconomic issues facing the 21st century, hampers economic growth and places heavy demands on social security systems, Smiles said.
Cambodia, however, will not face these hurdles because of its young population, he said.
“Labor growth should lead to strong GDP growth. It’s fundamental,” Smiles said from the Hong Kong headquarters of UBS.
Asia claims four of the 10 fastest aging populations worldwide—Japan, South Korea, Hong Kong and Singapore—and even China’s massive labor force will begin contracting in 2017, the study found.
“On a relative basis, Cambodia is well placed,” Smiles said. “Cambodia’s economy, looking exclusively at demographics, becomes more attractive.”
Smiles cited a March 2007 survey that found 71 percent of executives worldwide see the aging population of developed countries as having an important impact on global business over the next five years.
The lack of specialization and education of Cambodia’s work force is not necessarily a detriment to potential investors, Smiles said.
“A large group of cheap labor is ideal,” he said.
However, Cambodia’s ability to capitalize on its favorable demographics, Smiles said, will be determined by job availability and government policy.
The Economic Institute of Cambodia said in April that 1.25 million new workers were added to Cambodia’s labor force from 2003 to 2007 although only 750,000 new jobs became available during that same period.
Job creation is a hurdle Cambodia faces to capitalizing on its growing labor force, said Labor Ministry Undersecretary of State Oum Mean, as is improving infrastructure, because big investments require electricity, roads and special economic zones and not just a large labor pool.
While job unavailability is not yet problematic, Oum Mean said, misguided students lack job-specific skills.
“Parents should help instruct their children to study the skills that the market needs,” he said by telephone last week.
“There are jobs seeking workers and workers seeking jobs,” he said. “the main issue of employment is that youths should not be that particular about jobs.”
Russian Companies to invest in Telecom market
Vimpel Com from Russia announced its 90% acquisition of local telecom company Atlas Trade Limited, the head of Sotelco at the price of $28 million to be owned by Altimo.
Another 10% will remain to be owned by local company.

“Mobile telephone in Cambodia is still attractive business because the country has 14 million population while the penetration rate is just 18%.
Vimpel Com has 240 million subscribers, 97% of total Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, and Armenia.

Despite Growth, Bank Governance Poor: Report
By Tim Sturrock
The Cambodia Daily
Corporate Governance in many Cambodian banks is poor even as the industry experiences rapid growth in the number of clients and deposits, according to an annual report for 2007 by the National Bank of Cambodia.
To reduce risks to financial institutions, the report, which was released last week, says the government needs to bring more banks in line with international standards, and refers to regulations the NBC has already approved.
“It has been observed that corporate governance in many banks and financial institutions is poor. A nonexistent code of ethics, lending to related parties and ineffective boards are major concerns,” the report states.
It also notes a boost in customer confidence in banks that is reflected in 74 percent increase in deposits from 2006 to 2007 to a total of $2.5 billion, according to the report. The number of clients increased 60 percent during the same period, the report states.
The report also warns about “skyrocketing” real estate prices, nothing that real estate loans have caused financial woes in other countries.
It also states that though issued credit increased 77 percent from 2006 to 2007, lending had to increase even more to meet the needs of the rural economy.
The report follows a Moody’s Investors Service report, which stated last month that while Cambodia’s banking sector is stable, it is threatened by corruption as well as a possible property bubble.
Several NBC officials declined to comment on the report last week.
ANZ Royal Bank CEO Stephen Higgins said the rapid growth in the banking sector is to be expected given the lack of penetration several years ago.
“It’s coming from a low base,” he said. “In a developed market, everyone has a bank account already.”
According to the NBC report, 55 percent of net banking assets in 2006 belonged to four major banks, compared with 64 percent in 2007.
Those banks are Cambodia Public Bank, Canadia Bank, Acleda Bank and ANZ Royal Bank.
“All around the world, there is a trend toward increasing consolidation in the banking sector,” Higgins said, adding that larger banks have the advantage to offer more services.
While ANZ Royal follows international standards, he said, he declined to comment on corporate governance overall in Cambodia’s banking sector.
In Channy, president and CEO of Acleda Bank, criticized the report for not specifying which banks suffer from poor governance and which do not.
He said adhering to international standards is important to the banking sector and prevents conflicts of interest and protects clients, investors and the public interest.
Mike Kang, CEO of Camko Bank limited, said that his bank plans to follow South Korean guidelines and currently adheres to a code of ethics.
But he said the bank is small and less than a year old and hasn’t met all the guidelines yet.
“We don’t know what other banks do as far as good governance,” he added.


City Bus to be invested by Chinese MIG
MIG Masters Investment Group Co., Ltd from China announced its investment project providing City Bus in Phnom Penh in its meeting with Phnom Penh governor on July 16 this year.
MIG plans to introduce 18 seats busses which can go into small roads in city and offer affordable price.


First Investment Bank in Phnom Penh to be Opened by S. Korea
Tong Yang Group, a leading South Korean comprehensive financial group, plans to open an investment bank in Cambodia shortly, according to a press release.
Jae-Hyun Hyun, chairman of Tong Yang Group, said his company is planning to open a bank to attract Korean investors in Cambodia.
Han Kyung Tae, Cambodia Chief representative of Tong Yang Investment Bank, confirmed that “as soon as we get the approval of our application from the Ministry of Economic and Finance, we will start to operate as a securities company some time this year.”
The investment bank opened a representative office in Phnom Penh in 2006, expecting to enjoy a first-to-market advantage in the Cambodian capital market, where a securities trading center is scheduled to be built in 2009.
Cambodian authorities warmly welcomed the Korean group’s project to establish an investment bank, which they see a
Great potential for Cambodian organic rice exports
The Center for Studies and Development of Cambodian Agriculture (CEDAC) has claimed on Thursday that it will produce 4,000 tons of organic rice this year, to be exported to the European Union (EU) and the US.
Cambodia exported 3,000 tons of organic rice last year.
Around 10,000 families in eight provinces are producing the CEDAC organic crop, he said.
“We will help Cambodia become the leading exporter of organic rice within five years because market demands of the rice are rapidly rising. We have received orders for organic rice from both the EU and US.”
Thun Vireak, deputy director in charge of Export Department of the Ministry of Commerce, said that the EU needs 5,000 tons of organic milled rice annually.
“Now demands for organic milled rice are growing but Cambodia cannot export much because these nations limit will only import a high standard of rice,” he said.
The EU requires good condition milled rice with less than 30 percent breakage. He hopes Cambodia will produce 100,000 tons of organic rice by 2020.
(The Mekong Times)
Garment growth remains strong but trouble ahead
Mean Sophea, head of garment exports at the Ministry of Commerce, said exports increased by 5 percent in the first half of the year and are expected to grow to 10 percent by year’s end.
The Garment Manufacture Association of Cambodia (GMAC) reported earlier this year that garment exports totaled US$2.93 billion last year, 2 percent higher than 2006’s US$2.88 billion.
The Cambodian garment sector is currently competitive, with strong markets, good working conditions and cheap labor compared to other countries in the region.
“We think the garment sector is still improving, despite existing inflation which does not prevent major nations such as the US and the European Union from buying clothes from Cambodia,” Chan Sophal, president of the Cambodian Economic Association, stated.
However, a well-known union said over 27,000 workers left their jobs due to bad working conditions and low pay. (Mekong Times)
North Korean sets up biofuel factory in Cambodia
Jul 16, 2008DPA
Phnom Penh - A North Korean company said it would launch Cambodia's first biofuel factory, specializing in cassava conversion, by October.MH Bio-energy Group's director Choi Wee Sung said the factory will buy a minimum of 30,000 tons of locally grown cassava per year with a value of $5.4 million to convert into ethanol for use as biofuel, and is expected to reach full capacity by next year.MH Bio-Energy Group describes itself on trading website Alibaba.com as 'the biggest Korean investment company in Cambodia.' ‘we will produce bio-ethanol in 2008, we can supply all kinds of agricultural product especially cassava chip, cassava starch in the world market,' it says.The price of cassava last year was $100 per ton and now it went up to $175 to $180.
Rising skyline
South Korea’s BK Global Co, Ltd will invest $400 million to build five 25-storey residential towers on Phnom Penh’s Chroy Changva Peninsula, BK president and CEO Park Sung In told the Post on July 14.The so-called Pharos Mekong Towers, situated on a five-hectare site near the Four Faces Rivers project, would be slated for completion within 96 months, Park said, with the first phase of construction to begin in October and complete in about 32 months. A model home would be opened in September, he said, with prices for condominiums set at $300-350,000. The target market would include foreign investors, overseas Cambodians and the growing domestic upper class. “If you stay here, you can see the Royal Place, the Naga, getting fresh air and luxury accommodations along the Bassac River.” said BK Asia director Park Dong Chool.“This will be a unique project for Cambodia,” added Park, with the development to include 1.5 hectares of open space, a healthcare centre, a spa, an international school, recreation areas, commercial and office space, restaurants and parking.
Russei Keo district governor Khlaing Huot told the Post on July 15 that the company had already sought approvals for the construction from the district authority.
Water release from dam triggers calls for compensation
A surge of water released by a Cambodian-South Korean joint venture Sou Ching Investment from a dam near Tonle Sap Lake in Chong Kneas commune has destroyed or damaged 66 houses and more than 70 boats, residents said.The incident was the latest in a series of conflicts between the company and Chong Kneas residents since Sou Ching was granted a license in May 2007 to undertake a $2-million port development project. The project was stalled by residents’ protests over the disruption it would cause to their lives.However, Pierre Legros of the Panenan Co. told the Post that, even though one of two boats he keeps at Chong Kneas was slightly damaged, adequate advance warnings had been given.Chong Kneas commune chief Em Marn confirmed that the company had warned the public to stay 200 meters from the dam when the water was released, but the force of the water was apparently underestimated. “The water stream was very strong and it wiped out many houses which were nearly three kilometers from the dam site,” Marn said.----------

Skyscrapers to rise above inflation, say developers
Property developers are trumpeting the impending transformation of Phnom Penh’s skyline, despite fears the sharp rise in the price of construction materials could bring the capital’s skyward march up short.Huy Sophanna, construction site supervisor for the Ieng Group, a local contractor, said the prices of building materials have increased across the board since last year, with the price of scaffolding ballooning from around $400 per ton to $1,035 per ton, and bricks stabilizing at $600 per 100,000 after reaching a high of $1,200 earlier in the year. “In previous years, our flats sold well after construction, but now we are not selling as many,” he said. “Some construction companies postponed their construction when the price of construction materials jumped up, but the number of buyers is still lower.”The costs of oil, electricity and specialty metals are also on the rise.However, spokesmen for the 42-story Gold Tower 42 residential high-rise claimed the project would proceed as planned, dismissing rumors that construction has been halted at its site on Monivong Boulevard.Michael Kim, chief consultant for Yon Woo Cambodia Co., Ltd, the project’s developer, said costs were still within manageable levels and would not have much effect on the construction. “We are losing some of our profit margin, [but] we’re fixing the price right now, even though the cost of all the materials is rising, so it’s a real benefit for customers,” Kim said.Sixty percent of Gold Tower 42’s condominiums, 70 percent of its office space and all its commercial space have already been sold off the plan, indicating sustained demand for space in the building.Kim said Gold Tower 42’s symbolic status as the country’s first skyscraper would ensure it was completed on schedule, whatever the challenges.“This is a very important project for Cambodia, and if it doesn’t succeed it will cause a lot of problems for a whole lot of other projects,” he said. Kuoy Aphireach, site engineer of GS Engineering & Construction, which last month broke ground on its 52-story International Finance Complex (IFC) development, said the IFC project would not be impacted by rising costs, although smaller operations would feel the pinch.“High inflation of construction materials will have an impact on small local companies and some other foreign companies are cutting costs, but not our company. We have planned ahead to avoid the problem,” he said. “We are not worried about the shortage of buyers or renters, because our projects have been successful in many places, including Kuwait and Vietnam,” he said, adding that apartments and office space in the IFC would go on sale once the project was 30-50 percent completed.Bonna Realty Group CEO Sung Bonna said rising costs would likely result in delays or cancellation of construction projects across Phnom Penh, but was unsure whether or not the capital’s skyscraper projects would be affected.


Full steam ahead
Cambodia’s small but vital spa industry attracted about 200,000 customers last year and generated about $6 million in revenues, with annual growth of 14 percent forecast for the next two years, according to the first-ever spa industry survey for Cambodia issued late last month by Singapore-based Intelligent Spas.Intelligent Spas managing director Julie Garrow said the survey was conducted between July 2007 and April 2008.“We invited all spas in Cambodia to participate and 54 percent of all spas in Cambodia responded,” Garrow wrote by email to the Post on July 9. Intelligent Spas was the only independent research company specializing in the spa industry we has surveyed the industry annually for over five years, she said.The survey found that there were 35 authentic spa facilities operating in Cambodia, 34 percent of which were stand-alone day spas and 66 percent destination spas operating alongside accommodation.The spa industry employed about 400 people during 2007.Oum Khim, deputy chief of the tourism industry department in the Ministry of Tourism, doubted the survey’s estimate of $6 million in revenues.“The spa industry in Cambodia is growing rapidly, of course, but in a limited fashion and popular only among foreigners,” he said. “There is no official figure of spa facilities available in Cambodia because most of them are included in hotels and only a few have registered with the ministry.”Kornchmok Dang, the Thai manager of Amara Spas and Café in Phnom Penh’s Duan Penh district, told the Post on July 7 that spas were doing good business and generating strong profits.“Service fees are between $10 and $25 an hour, and about 25 to 30 customers come and get spa service in my facility,” she said. “We see revenues of from $30,000 to $35,000 a month.” At the same time, she noted, input costs for operating a spa were very high.“Every six months, we buy high-quality materials from Italy costing about $100,000,” she said. “In the past, when somebody said ‘spa’, we didn’t really know what it was, but now they are popular with both foreigners and higher-income Cambodians,” said Sin Sakonaly, the owner of Banteay Srey Spa in Siem Reap’s Svay Dangkum district.“We can earn about $1,250 a day in the low season, and up to $7,500 in the high season,” Sin Sakonaly said. In the high season from October to February, the spa welcomed about 300 customers per day and some even had to be turned away, she said.Kornchmok Dang agreed that spas were becoming an increasingly popular way for middle- and upper-class Cambodians to relax after a hard day at work.“Spas can help relieve you from headaches, fatigue, depression and fevers,” she said
Foreign Investors Show Interest in Acleda Bank
By Tim Sturrock
The Cambodia Daily
July 17, 2008

Acleda Bank Plc said this week that it is being courted by a number of foreign investors interested in buying a share of the bank.
Nearly 20 foreign investors have approached Cambodia’s Acleda Bank Plc about making a significant investment, Acleda President and CEO In Channy said in an interview.
Acleda’s board of directors will meet in September to determine how much new investment capital it will raise by selling a stake in the bank, but it could seek $50 million to $70 million mainly to meet demand for loans, In Channy said.
“The investors have contacted Acleda in the last three months… They all have very strong capital,” he said.
Currently, Acleda’s shareholders include three international development finance institutions, a microfinance foundation and its related “social ethical” fund that specializes in investing in microfinance institutions.
The bank posted a 46 percent increase in net profit from 2006 to 2007 and increased its assets about 112 percent to $473 million in the same period, according to Acleda. Its assets now stand at about $634 million, In Channy said.
If it decides to accept any investor advances, the influx of capital will help fund its primary service of small-business loans, he said.
He noted that the recent doubling of the reserve rate by the government has increased the need to add capital to fund company growth.
According to some equity fund managers, Acleda is receiving considerably more interest from foreign investors than most Cambodian firms.
Douglas Clayton, CEO of private equity-giant Leopard Capital, which recently launched a private equity fund targeting Cambodia, said investors are attracted to Acleda’s commitment to joining the Cambodian stock market, which is slated to open next year.
Its high earnings and transparency in a country where many companies don’t always reveal their financial statements has also raised the bank’s appeal.
“There’s quite a number of investors around the world interested in Acleda,” he said.
“Acleda is a benchmark for other companies to compete against.”
He declined to comment as to whether his fund would invest in Acleda but added the bank’s success may encourage other Cambodian companies to become more transparent.
A report by Moody Investors Service released in January noted that while Acleda is stable with good earnings, it faces increasing competition and a country with a weak legal infrastructure.
Marvin Yeo, managing partner for Frontier Investment & Development Partners, which recently launched the $250 million Cambodia Investment and Development Fund, said Acleda has garnered more foreign interest than many other Cambodia companies for several reasons.
“The bank has exhibited consistent growth and seems to be very well managed in a transparent way,” he said, noting that the International Finance Corporation, the private sector branch of the World Bank, is a stakeholder.
“When the time comes to make a formal offer, we will,” he said.
Stephen Higgins, CEO of ANZ Royal bank, said investment groups are approaching many companies that may list on the Cambodian stock market.
“[Acleda] strikes [s] me as quite an impressive bank,” he said.
He added that ANZ Royal, a joint venture of ANZ Bank and Cambodia’s Royal Group, didn’t have plans to list on the Cambodian bourse because it doesn’t need the added capital.

Cambodian ibis project wins Responsible Tourism Award
Tuesday, 15 July 2008eTravel Blackboard
An ibis project established by the Wildlife Conservation Society in Cambodia has been awarded ‘Wild Asia’s 2007 Responsible Tourism Award’, which rewards the inclusion of environmental responsibility within business strategies.The ecotourism project, established at Tmatboey in Kulen Promtep Wildlife Sanctuary, protects the only known area where Giant and White-shouldered Ibises breed and are commonly seen.The birds are found in the forests which surround the village, which are comprised of dipterocarp deciduous trees.The Wild Asia awards intend to dually exemplify responsible tourism businesses, whilst encouraging others to develop Responsible Tourism business strategies.The award program also shares the best practices of the winning organisations, in an attempt to demonstrate to tourism operators the benefits and ease of implementing responsible practices.Cambodia is home to a variety of eco-tourism resources across many provinces, including the flooded forest, deciduous dipterocarp forests, grasslands, semi evergreen forests, freshwater wetlands and the Tonle Sap Great Lake.
Cambodia turns Killing Fields into agricultural success
Jul 15, 2008DPA
Phnom Penh - Images of a country desolated by the Khmer Rouge, an entire population put to work in the rice fields and yet dying by the hundreds of thousands of starvation, still haunts Cambodia.But since the ultra-Maoist's disastrous drive from 1975 to 1979 to turn the country into an agrarian utopia bereft of markets, money and technology, Cambodia has quietly picked itself up and is poised to become one of the major rice exporters in the region, experts said.From the dismal postwar years, Cambodia has steadily rebuilt its irrigation systems, developed its technology and slowly but surely reclaimed thousands of hectares of rice fields from land mines. 'Cambodia will become a major rice exporter,' Agriculture Minister Chan Sarun said. 'We achieved food security in 1995, and last year, as well as self-sufficiency, we had 2 million tons left over for exports.'We currently have 2.5 million hectares under rice cultivation, but we expect to increase that to 3 million.Cambodia's rice producers and millers are optimistic about their future, and this year, Cambodia even sold subsidized rice to African countries, including Guinea, as a humanitarian gesture.So confident is Cambodia of being able to hold its own with the big regional rice players in the future that Prime Minister Hun Sen has been a key proponent of a proposed regional rice cartel similar to that of the Organization of the Petroleum Exporting Countries.Thailand's brainchild, the proposed Organization of Rice Exporting Countries, was aimed at protecting the region's major rice producers but has deeply concerned major importers, such as the Philippines, which said it would only benefit major producers.Phou Puy, president of the Cambodian National Rice Millers Association, said new growing techniques, rice strains and irrigation projects could potentially double the country's rice crop by 2015.'With these changes, Cambodia's traditional one-time-per-year harvest can increase to two, even three times a year,' Phou Puy said. 'By 2015, that could provide exports of 10 million tons.'Currently, we stand at between 2 [million] to 5 million tons, depending on weather conditions,' he said.The 2015 projection would have Cambodia matching neighbouring Thailand's export predictions for 2008. Thailand is currently the world's largest rice exporter.Cambodia is increasingly also becoming a player in biofuel production, but Phou Puy denied that that development would put to use land that could be planted for rice.Vast industrial farms have sprung up on the north-western border with Thailand, producing corn and soybeans, and jatropha, which is endemic to Cambodia and a prime source of biodiesel, now takes up hundreds of hectares.'But these crops grow where rice doesn't, so they do not impact on our rice yield,' Phou Puy said. 'I have no doubt Cambodia has the potential to match or surpass our rice-producing neighbours.Such a development would be a major achievement not only for the country but also for donors who have poured billions of dollars into Cambodia's agricultural sector.While China has been a key donor for irrigation development, alongside others including the Asian Development Bank, Australia has led the way in Cambodia's technological and scientific advances, funding research and development projects. The Cambodian Agricultural Research and Development Institute has benefited from millions of dollars in Australian aid and in return has been integral in developing new strains of rice, more resistant to the whims of climate change and the ravages of insects.The institute's mission is to educate individual growers in a country where the bulk of people involved in agriculture work on mostly small family plots.These sorts of measures have been so successful that Chan Sarun envisages a second lucrative niche market in organic rice, which demands a higher price but costs farmers less to produce because they don't use expensive fertilizers and pesticides.'Organic rice is very popular,' the minister said. 'We aim to reduce chemical fertilizer use step by step. The world prefers natural food, so we are moving in that direction.Mechanization will not come overnight, and experts agreed the days of Cambodia's rice farmers plodding patiently behind a plough pulled by cows or buffalo were not numbered.But they said simple techniques with the right cropping, strains and a guaranteed water supply might one day take Cambodia to the top of the region in producing one of the world's most precious staples.

Gov’t Authorizes Development in Bokor Park
By Kuch Naren
The Cambodia Daily
The government has agreed in principle to the development of palm oil and cassava plantations and livestock farms to cover more than 2,400 hectares within Bokor National Park, according to a recently obtained letter.
A conservation group expressed concern Friday that if allowed to proceed, the development could destroy valued natural resources and forest.
It would be at least the second commercial development within the 140,000-hectare protected area after the Sokha Hotel Company was granted permission for a resort complex on Bokor Mountain earlier this year.
In a March 11 letter to Environment Minister Mok Mareth, Council of Ministers Secretary of State Prak Sokhon said the government had agreed to a proposal by the ministry and a company named Y Seng Co to sign a 99-year lease and draft a “clear plan” for the development of a precise area yet to be demarcated.
“The company must make a formal contract for environmental protection with the Ministry of Environment and apply all procedures,” Prak Sokhon wrote.
Prak Sokhon said Friday he had issued the letter in an administrative role and referred questions to the Environment and Agriculture ministries.
Mok Mareth could not be reached Friday; other Environment Ministry officials said they were unaware of the proposal.
“I’m not aware of this company,” Bokor park Director Chey Uterith said Friday. “But I believe strongly these ministries really study all the environmental impacts and other impacts before authorizing investment.”
Environment Ministry Secretary of State Yin Kimsean said Friday he too was unaware of the plan and that such investments were prohibited in most cases.
“I’ve never heard of this company,” he said. “We have never authorized such investment, but we always support eco-tourism projects in national parks.”
Environment Ministry records indicate that permission for mineral resource exploration has been granted to companies operating in protected areas across Cambodia. A recently enacted law on Cambodia’s protected areas prescribes a zoning plan that allows industry in some park zones while prohibiting it in others. However, the government has yet to draw the boundaries of most such zones.
Seng Bunra, country director for Conservation International, said forest clearances for agribusiness and the presence of large numbers of laborers would destroy habitats and disturb animal migrations.
Cassava plants are known to harm soil quality, he added.
“We’re concerned that those workers may clear forest to build housing,” he said. “Those workers may trap wild animals for meat, too.”
City Hall hails new taxi service
A fleet of 12 shiny new taxis was deployed on the streets of Phnom Penh over the weekend by the Chinese-invested Global Cambodia Trade Development Co Ltd.
Global Cambodia Trade Development CEO Andre Lim said the point was not to compete with other services.“We just want to provide more choices to people,” Lim said.A two-kilometer taxi ride cost US$1 and 400 Riels ($0.10) for each 200 meters thereafter, he added.“I think it is even cheaper than the tuk-tuk fare because we fixed the price and no one complained.” Lim said. “The city needs development. It needs new way of transporting people in comfort.”Under the company’s agreement with city hall inked in November 2007, Global would deploy 12 more taxis in the next couple of week and would operate a fleet of 60 vehicles by September 2008, said CEO Andre Lim.Global Taxi has a 20-year contract to run 300 taxis. The company has invested $1.5 million in setting up the service and expected to operate at a loss of $150,000 to $200,000 in the first year, he said.



Cambodia: Indian inertia versus growing Chinese presence
Sunday, 07.13.2008Pranav KumarIndiaPost.com
Working towards greater economic cooperation forms an important part of India's Look East Policy. In the last two decades India's bilateral trade and investment with this region has increased significantly. However, the increase remains asymmetrical.The case of Cambodia, for example, shows that India's interaction with the country is far below potential. In 2007, India's total trade with Cambodia was just US$53.7 million.Although there was an exceptional increase of more than 100 per cent in annual trade over 2006 trade. However, this amount of trade is minimal in the overall trade of both countries.Interestingly India's exports are far higher than the imports from Cambodia. There is hardly an Indian contribution in investments in Cambodia of around $2.8 billion in 2007. The latest data available shows that till 2002 India had invested only $1.1 million in Cambodia. In recent times, some Indian companies such as Kirloskar have opened their offices in Cambodia. Even as Cambodian authorities have made it very clear that they are looking for long term investments, the Indian government seems to be happy with paltry measures like lines of credit, donation of some money for Khmer Rouge trials, temple restoration, IT kiosks and gifting jars of indelible ink.On the other hand, in an obvious indication of assertion in Southeast Asia, China is using economic means as a readily available tool to achieve its strategic objectives. The Chinese economic presence in Cambodia is not only expanding but also growing in strength.The component of Chinese economic diplomacy largely contains investments and trade. Although China is also a major donor, the focus is on increasing Chinese presence by means of foreign direct investment. The total volume of Chinese investment from 1994 to 2007 was US$1.76 billion.There are 3,016 Chinese businesses operating in Cambodia which produced more than US$1.5 billion at the end of 2007. China-Cambodia bilateral trade is heading towards the US$1 billion mark having crossed US$900 million in 2007 with an annual growth of 30 per cent. China is present in every possible economic sector in Cambodia.Chinese and French companies are major players in the emerging oil and gas sector and as Cambodia plans to build more than 10 hydropower plants in the near future, the Chinese are vying to grab the opportunity. Around four major Chinese steel companies are also engaged in joint ventures to develop iron ore mines in Cambodia.The above facts make it very clear that while Chinese economic presence in Cambodia is overwhelming, the Indian presence is negligible by contrast. There is, therefore, an urgent need to identify some areas where Indian presence can be increased.Cambodia has untapped natural resources, which makes it attractive destination for investment. According to recent estimates Cambodia has potential offshore oil deposits of about 700 million barrels and natural gas reserves of around 4 to 5 TCF (trillion cubic feet).According to the Director-General of Cambodian National Petroleum Authority, there are significant onshore reserves in provinces of Kampong Chhnang, Kampong Thom and Pursat. Other than petroleum reserves, Cambodia has iron ore reserves and gold. Given the India's energy needs and its expertise in the mining sector there lie greater possibilities of cooperation in these sectors.More than 50 per cent of Cambodia's population is under 21 years of age. This population structure coupled with a growing economy makes Cambodia a fertile ground for knowledge-based industries. Given India's expertise in this field, this provides an opportunity for India to explore the human resource development sector in Cambodia.Cambodia still remains an agriculture-based economy and diversification in agro-based products is its top priority in this sector. Indian companies can find a niche, here with their experience in bio-technology that can be used by Cambodia to improve yields in agriculture.In recent times, Cambodia has also emerged as an attractive tourist destination. However, the lack of basic tourism-related infrastructure hinders the growth of this sector in Cambodia. Here, Indian hotel and resorts can play a vital role by investing in Cambodia's tourism sector.To facilitate the growth of trade, adequate transportation, infrastructure and minimization of trade costs is needed. Here the physical connectivity from India through other Mekong region states will be a revolutionary step.Institution-building is another important aspect in developing the economic linkages; a joint trade promotion mechanism of possible players will be a fruitful step. Above all, a good communication mechanism should be developed by the Indian government to inform the business community in India about the opportunities available in Cambodia.(The writer is a Research Officer at IPCS)
Singapore Petroleum begins drilling well off Cambodia
Phnom Penh, Jul 12, 2008 (Asia Pulse Data Source) -- Singapore Petroleum Company Ltd (SPC) has begun oil and gas exploration activities offshore Cambodia, according to local media. The well is the first in Block B, about 160 km southwest of Sihanoukville. Drilling to test the hydrocarbon potential is expected to take about 15 days since July 8, the company said in a statement.In March, US energy giant Chevron announced oil in Block A offshore the Sihanoukville after conducting six exploration drillings. The Cambodian National Petroleum Agency estimated oil reserves in the well of up to 500 million barrels.Cambodia's oil reserves are estimated up to 2 billion barrels and gas to 10,000 cubic metres, according to the World Bank, Harvard University and prestigious organizations.
Asia Motors Co Assembly Facility Planned for Capital in 2009
By Neou Vannarin
and Stephen Kurczy
The Cambodia Daily
Asia Motors Co, Cambodia’s sole importer of Yamaha motorbikes, plans to break ground on a $10 million motorbike assembly facility in Phnom Penh in 2009, the company’s general manager said Wednesday.

By 2011, the factory will employ more than 1,000 workers and have the capacity to pump out about 1,000 motorbikes a day in an effort to keep up with increasing demand, Asia Motors General Manager Touch Sivatha said.

Asia Motors sold 3,000 Yamahas in the first six months of this year, he said, already more than double the number sold from March to December 2007.
Touch Sivatha said his company is on track to sell about 5,000 motorbikes in Phnom Penh this year despite recent drops in sales that he attributed to the onset of the rainy season and pre-election jitters.

“The population rate is growing, and young people are maturing, so we think there will be a demand,” he said by telephone Wednesday.

Skyrocketing gasoline prices, which now hover at about $1.45 a liter in Phnom Penh, won’t affect motorbike sales in the long-term, Touch Sivatha said.

“People still need to go to school, to the workplace, and they must afford some sort of transportation,” he said.

“People will abandon motorcycles for bicycles. But those who drive cars will park their cars at the side of the house and then ride motorcycles,” he added.
Motorcycle sales in Battambang and Bantey Meanchey increased from 400 bikes monthly in 2007 to 1,000 monthly in the first half of 2008, Finance Ministry Secretary-General Hang Chuon Naron said Wednesday.
“It could be because of the increase in food prices and good crops,” he said.

Hang Chuon Naron suggested that farmers in the rural northwest are buying motorbikes with the cash earned from strong sales of farm products to Thailand.

“It could also be from higher land prices,” he said by telephone, explaining that buyers are pocketing extra cash from the rise in property values.

High commodity prices are also boosting motorbike sales in Thailand, according to reports by the media.
Last month, Bangkok newspaper the Nation reported new motorbike registrations in Thailand reached a 10-month high in May because of improved purchasing power by Thai farmers.

The rise is sales in Cambodia and Thailand bucks against recent trends in Vietnam, where empty showrooms reflect the tool inflation is taking on motorbike sales, according to media reports.

Honda distributors in Ho Chi Minh City said sales are down 40 percent, the Vietnam News Agency reported Monday, because of skyrocketing inflation and tightened consumer lending.

PM Discuss Bilateral Cooperation With Guinea
Prime Minister Hun Sen sat down with Mohamad La Mine, the economic adviser for the prime minister of the West African nation Guinea, on July 1 to discuss bilateral cooperation on trade and agriculture, according to a news release on the CPP’s Website. Finance Ministry Secretary-General Hang Chuon Naron said Guinea is interested in importing Cambodian rice and is the second African nation to see closer economic ties with Cambodia in recent months. Senegal successfully lobbies to import 600,000 tons of Cambodian rice in April. Cambodia has not exported agricultural products to Africa since the 1960s, he added. (Stephen Kurczy)
Japan’s SBI Holdings Inc Planning Bank in Cambodia
Japanese financial services conglomerate SBI Holdings Inc confirmed Wednesday that it plans to open a bank in Cambodia as early as September. Japan Corporate News Network reported Monday that SBI Holdings will partner with a South Korean bank to set up a lending bank in Phnom Penh. SBI Holdings will target foreign companies operating in Cambodia, JCNN reported.
National Bank of Cambodia Director-General Tal Nay Im said SBI Holdings had not yet submitted a formal request to open a local branch. When SBI Holdings could open depends on how soon the company submits the registration requirements and “the paperwork is complete,” she said by telephone Wednesday.
The first Japanese bank to set up in Cambodia, Maruhan Japan Bank PLC, opened in May.

Taxi Service To Launch Friday in Phnom Penh
The Cambodia Daily, Prak Chan Thul
In an attempt to fill a gaping hole in Phnom Penh’s transportation sector, a Chinese company announced Wednesday that it will launch a 24-hour metered-taxicab service in the capital Friday.
Global (Cambodia) Trade Development CEO Sovann Lim said Wednesday that his company has a fleet of 60 Chinese-made BYD brand cars, but for Friday’s official launch, which will take place at Chenla Cultural Center, only a dozen white taxis will initially hit the streets of Phnom Penh.
The remainder of the cabs should be fully operational by August or September, he said.
“We want our city to have taxis like other modern cities,” he said, adding that Global Trade has already invested $1 million in the operation.
The company will initially charge passengers $1 for the first 2 km and 400 riel every additional 200 meters, Sovann Lim said.
“The current price offering is really cheap,” he said. “If we charge too much… [customers] would rather ride anything else besides the metered taxis.”
There are currently no metered taxis in Phnom Penh; however, Global Trade is not the first company to make an effort to introduce them.
In August 2007, Vietnamese owned company Mai Linh Open Tour launched a metered-taxi service with a crew of 11 cars, only to run out of gas after two months.
Kang Heang Ratana, former marketing manager of Mai Linh, said Wednesday that difficulties obtaining licenses from the municipality caused the taxi service to collapse, not a lack of enthusiasm from the public.
Sovann Lim said he did not know why Mai Linh failed, but said his company had the City Hall’s backing and that Municipal Governor Kep Chuktema would attend Friday’ launch.
He added that Global Trade considered the venture a long-term investment, and claimed the service was not only about turning a profit.
The nation’s ever-rising gas prices are a concern, but Sovann Lim said that China’s BYD cars get 16 to 20 km to the liter and are considerably more economical than other cars in the city.
“And our cars also have insurance for the passengers, to pay compensation [to passengers] if there are any traffic accidents,” he said.
Marc Vanhemelryck, who started Taxi Vantha in 1995 and now has five non-metered taxi in the city, doubted that Cambodia was ready for a metered-taxi service.
“Some came before, and you see what happened,” he said, adding that people in Phnom Penh would rather take motorcycle taxis.

Royal Group To Launch Finance Advisory Service
Royal Group chairman Kith Meng said Thursday that his Cambodian conglomerate is establishing an investment banking and corporate finance advisory service. The firm, to be known as Cambodia Capital, will be based in Phnom Penh but target regional investments, initially in the tourism and infrastructure sectors, Kith Meng said. “There is a lot of momentum supporting my vision,” he said, adding that a launch date has not yet been set. Mark Hanna, Royal Group’s chief financial officer; said Cambodia Capital’s management is to include investment bankers formerly of Macquarie Bank and will serve the Royal Group and third-party investors. “We are at the early stages of development,” he wrote in an e-mail. Financial news service Bloomberg reported Thursday that Royal Group is planning a $2 billion joint venture with Hong Kong’s Millennium Group to develop a tourist destination on Sihanoukville’s Koh Rong island. Agost Benard, a sovereign debt analyst for Standard and Poor’s in Singapore, said Cambodia’s under-educated workforce tended to limit investment opportunities to natural resources- and tourism-related industries.
Royal Group Seeks $2 Billion to Build Cambodian Island Resort
By Netty Ismail
July 10 (Bloomberg) -- Royal Group, which owns Cambodia's biggest mobile-phone operator, plans to raise as much as $2 billion with Hong Kong-based Millennium Group to build resorts, casinos and an airport on an island off the coast of Cambodia.
Royal Group and the Millennium real-estate investment firm are seeking investors and partners for resorts, apartments, casinos, golf courses, polo fields and an airport on Koh Rong island, according to a financing investment document obtained by Bloomberg News. The island is the largest of 22 off the coast of the southern port city and beach resort town of Sihanoukville.
``This is a place that people haven't discovered yet,'' said Royal Group Chairman Kith Meng in an interview in Phnom Penh. ``It's like the Maldives,'' an island country in the Indian Ocean southwest of Sri Lanka, he said.
Cambodia, the second-poorest of 10 Southeast Asian nations, is relying on tourism to fuel economic growth as garment exports slow. The country attracted about $400 million of tourism-related investments in the first half of 2008, mostly for resorts, Commerce Minister Cham Prasidh said. Visitors to Cambodia exceeded 2 million for the first time last year, up from 118,183 in 1993 when Cambodia emerged from a two-decade civil war.

``Our dream is to transform our costal line into the next Riviera of Asia,'' Cham Prasidh said in a July 4 interview. ``There'll be plenty of resorts appearing on the islands and all along the coast of Cambodia. There will be billions of dollars of investment in that sector this year and next year.''
Angkor Wat
The companies will raise funds from investors in London and the Middle East, and it will take 10 years to 15 years to develop the island, said Kith Meng on July 4.
Cambodia wants to develop tourism beyond the key destination of Angkor Wat, known for its ancient temples. The island project may face competition with beach resorts also being developed in Vietnam and Thailand.
``The tourism industry is overwhelmingly concentrated on Angkor Wat because of the unique attraction you can't find elsewhere in the world,'' said Agost Benard, associate director at Standard & Poor's in Singapore. ``As far as developing a beach resort, you'll be competing with a lot of countries because it's a generic product.''
Royal Group and Millennium are raising funds as record oil prices prompt airlines to cut flights. Cathay Pacific Airways Ltd., Hong Kong's largest airline, said July 2 that earnings would be ``disappointing'' because of record fuel costs.
``I don't know if the current oil prices will affect air travel and if it's going to be a booming sector in the near term,'' Benard said.
Turquoise Waters
The companies are trying to get resort and hotel operators, including Singapore-based Banyan Tree Holdings Ltd., to participate in the project, Kith Meng said.
Royal Group and Millennium plan to develop the 76 square- kilometer (29 square-mile) Koh Rong island, now inhabited by fishermen, into a ``luxury resort destination,'' according to the document. The island has 28 white sand beaches, including the 6.1 kilometer Snowdrift Beach, surrounded by shallow turquoise waters.
Kith Meng, who was educated in Australia, declined to say how much Royal Group is paying the government for a 99-year lease to the island.
Royal Group also is planning to build a resort in Siem Reap, near the temples of Angkor Wat, with India's Oberoi Group. Royal Group already has a telecommunications venture, MobiTel, with Luxembourg-based Millicom International Cellular SA, and another partnership in Cambodia with Australia & New Zealand Banking Group Ltd., Australia's third-largest bank, called ANZ Royal Bank.

Singapore Firm Drilling Off S’vill Coast: Media
The Cambodia Daily, July 9, 2008 (Stephen Kurczy)
Singapore Petroleum Company and partners have begun drilling an exploration well off the Cambodian coast, media reported Tuesday. Test drilling in the 75-meter deep waters of offshore Block B, 140 km southwest of Sihanoukville, is expected to take 15 days, Thompson Financial news service reported. “The drilling will not have any material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year,” Thompson Financial quoted SPC as stating. SPC, through its subsidiary SPC Cambodia Ltd, has a one-third interest in the block, along with PTTEP International Ltd, the company has said. Previous SPC statements also placed Block B 250 km off the coast. The companies have invested more than $3.5 million in searching for oil and gas in Block B.

Cambodia plans to send laborers to Qatar
Cambodia plans to send unskilled Cambodian workers to Qatar as part of a labor agreement reached with the diminutive oil-rich state, the Ministry of Labor and Vocational Training said yesterday.
“We are examining a memorandum of understanding [MoU] on manpower that we will implement immediately if it ensures our laborers’ safety and wellbeing,” said Labor Ministry Under Secretary of State Oum Mean.
He added that the workers will be able to learn new skills in Qatar, which has a population of just over one million. “And when they return, they can work towards building our nation.”
According to a recent Labor Ministry report, there are over 21,800 Cambodians working legally abroad, with 7,375 in Thailand, 11,852 in Malaysia, and 2,599 in South Korea.
Cambodia and Qatar’s foreign ministers are still discussing how many workers would be sent to Qatar, according to the Labor Ministry.
Minister of the Council of Ministers Sok An appealed June 12 for all universities to teach students skills appropriate to today’s demanding labor market, as the development of human resources is the backbone of national development. (Chun Sophal )
Truck manufacturer shifts gears

A factory at Sihanoukville is making custom-built ambulances for use by the US Army, adding a high-tech niche product to an export sector dominated by the garment industry.The Cambodian subsidiary of multinational products and services company RM Asia is working under contract with Ford to convert its four-wheel-drive light trucks into ambulances for use in Iraq and Afghanistan.RM Asia began modifying the vehicles late last year at its 200,000-square-meter factory at Sihanoukville port, said the company’s country manager in Cambodia, Jean-Boris Roux.The factory duplicates on a smaller scale RM Asia’s plant in Thailand where it has been modifying vehicles for five years.Roux said the factory has a contract for 400 ambulances, of which 87 have been completed, each with a price tag of $27,000.The trucks are delivered from Ford’s plants in Thailand and modified for use as ambulances by 25 Cambodians who were trained in Thailand, Roux told the Post on July 2.The comprehensive modification process involves fitting equipment ranging from air-conditioners and heaters to GPS systems and inverters to operate medical equipment. The completed ambulances are designed to carry up to five people: two patients and a nurse in the back and a driver and nurse in the cabin.Roux said four ambulances can be produced a day and that while the modification work was not complicated, the US Army was a demanding customer.“Every time we have a shipment prepared, we have a visit from a US Army inspector who comes to check the quality and compliance with their specifications. The standards are very high, so it’s a big job in terms of quality control,” Roux said.He said the factors which influenced the company’s decision to establish the vehicle plant were its involvement in Cambodia since 1990 and its success in obtaining a prime site within Sihanoukville port.Roux said RM Asia planned to begin producing vehicles for the Cambodian market next year after obtaining the necessary approval from the authorities.“The objective in Cambodia would not be to duplicate this model for local customers. It would be more to find out what kind of modifications we can make for customers here,” he said. Roux said that while the custom-built ambulances were for the US Army, they were not designed for combat zones.“They are not bullet-proof vehicles, but they are four by fours. Where and how exactly they’ll be used is information I don’t have.” He said that in Thailand, RM Asia produced armored vehicles for use by the US and British armed forces and the Singaporean police. “Bullet-proofing cars is a very specific job and is a difficult technology and requires special materials. I don’t see this happening in Cambodia in the near future, but other types of vehicles, yes.” Roux said RM Asia had developed its expertise in vehicle modifications over many years.He said it was one of a few companies outside the US to be designated by Ford as a “qualified vehicle modifier”, which allows RM Asia to modify Ford vehicles and sell them under the US automotive giant’s name.Roux said establishing a specialized vehicle production operation in Cambodia was good for its economic development because it was helping to diversify the economy and build human capacity.“It’s important to be able to widen the base of the industry here… You talk about garments and that’s basically it. We are training people to learn new skills.” The factory’s manager, Virote Sawangchange, said RM Asia would also like to make standard vehicles, as well as fire trucks and armored cars for transporting cash.“Our plant in Thailand produces many kinds of bullet-proof vehicles,” said Virote. “In Thailand, if someone wants to order a bullet-proof vehicle, they are required to seek approval from the Ministry of Defence; they need a lot of documents,” he said.Sihanoukville deputy governor Sboang Sarath welcomed RM Asia’s venture there and expressed hope it would be followed by other players in the automotive industry.“We have prepared 50 hectares of land right at the port for any carmaker that wishes to set up operations in Sihanoukville,” he said.
Vimpelcom buys Cambodia's Sotelco – source
MOSCOW, July 8 (Reuters) - Vimpelcom (VIP.N: Quote, Profile, Research, Stock Buzz), Russia's second-largest phone operator bought Cambodia's Sotelco, a source told Reuters on Tuesday. Altimo, the telecommunications investment arm of Russia's Alfa Group, owns a 44 percent stake in Vimpelcom. Norway's Telenor (TEL.OL: Quote, Profile, Research, Stock Buzz) owns 29.9 percent.
Sotelco would be sold to Vimpelcom for $28 million, Russian business daily Vedomosti reported, citing sources close to Alfa.
Vimplcom declined to comment. (Reporting by Anastasia Teterevleva; Writing by Amie Ferris-Rotman; Editing by Erica Billingham)
Tuesday, July 08, 2008
ACLEDA opens first Laos branch
Tuesday, 08 July 2008Chun SophalThe Mekong Times
ACLEDA Bank – the largest Cambodian bank – is today opening its first branch in neighboring Laos, the first step in its bid to start business operations internationally, said ACLEDA’s Executive Director In Channy.“We hope to benefit from the potential advantages by opening the branch because Laos has a good growth market, similar to that in Cambodia,” he said. “Laos’ economic potential for ACLEDA Bank is first-rate – not the usual. We plan to open three branches in Laos in 2008.”The three new branches are set to cost US$10 million and employ 12 Cambodians and 80 Laotians.Economic analysts predict ACLEDA’s expansion into Laos will help the bank lead Cambodian investment abroad.Chan Sophal, president of the Cambodian Economic Association, called the move “a source of pride for Cambodia,” saying it indicated a healthy Cambodian banking sector. “We think that it … will build more confidence in the sector which is essential for economic development,” he said.ACLEDA, currently holding capital of over US$50 million, is looking to open branches across the Asean bloc and in other countries in the Greater Mekong Sub-region, In Channy said.“Now, our long-term plan is to transform ACLEDA Bank into a regional bank, not just remain as a local bank. We will continue to expand with branches in China and Vietnam,” he said.Chan Sophal warned that Cambodian banks should not be attempting to open branches in other countries in the region other than Lao and Burma, as the other countries have stronger growth potential than in Cambodia. “ACLEDA may go to China and Vietnam, but the transaction situation may not be easy as in Laos,” he said.
Monday, July 07, 2008
Cambodia Plans To Build Hydro-power Plant On Mekong River
PHNOM PENH, July 5 (Bernama) -- The Cambodian government plans to build its largest hydro-power plant on the Mekong river in the country's northeastern province of Kratie, the Vietnam news agency (VNA) reported Monday.The Sambo Chumrues plant, with a designed capacity of 2,600-MW, is also ranked as one of the largest in the southeast Asian region, Secretary of State to the Ministry of Industry, Mines and Energy Ith Prang was quoted by a local newspaper as saying.Cambodia is pinning high hope on selling electricity to some neighboring countries as well in the Greater Mekong Sub-Region, if the plan leads to positive results.Meanwhile, the news agency quoted Secretary of State Ith Prang as saying that the plan might help attract investors and help poor citizens have access to electricity at a cheap price.

Saturday, July 05, 2008
Cambodian king receives Qatar envoy
7/5/2008QNA (Qatar)
Phnom Penh • King of Cambodia Norodom Sihamoni received yesterday the credentials of Qatar's Ambassador to the Kingdom of Cambodia Abdullah bin Ibrahim Al Hamar.During the meeting, the Ambassador conveyed greetings of the Emir H H Sheikh Hamad bin Khalifa Al-Thani and the Heir Apparent H H Sheikh Tamim bin Hamad Al Thani to the Cambodian King and their wishes of best of health and further progress and prosperity to the Cambodian people. For his part, the Cambodian monarch entrusted the ambassador with his greetings to the Emir and the Heir Apparent, wishing them best of health and the Qatari people further progress and prosperity under the wise leadership of the Emir.Talks during the meeting covered bilateral relations and means of enhancing them in all fields.
Southeastern Globe
Luxury island resort given go ahead
An Australian property developer has been granted final approval to build Cambodia’s first ultra-luxury holiday resort on the South coast islands of Koh Ouen and Koh Bong- known locally as the “sweethearts”. The $35m Song Saa resort is set to comprise 25 suites and five villas, all with freshwater pools.

The two islands lie just 30 km from the coastal town and port of Sihanoukville in the Koh Rong archipelago. Developers Brocon are the first company to obtain a concession in the area, which largely consists of fishing villages, rainforest and untouched beaches—at the moment.
Brocon’s creative director Melita Hunter said, “Our aim is to adhere to the highest standards of best practice and ensure that the ecosystem and its people are taken care of.” With this in mind, the islands’ residents are rehabilitating plant life and establishing a marine sanctuary around the islands in return for educational and health services.

Ex-PM Thaksin plans new city for Cambodia
Thailand’s larger-than-life ex-prime minister Thaksin Shinawatra has revealed plans to build a “modern city” in Cambodia in a recent meeting with the Cambodian prime minister.
Thaksin and a group of Thai investors told Hun Sen that the city in Koh Kong province would include a financial centre, hospitals, schools, housing and a port for ship repairs. The PM’s spokesman Eang Sophalleth said, “He did not say how much money will be invested, he just told the prime minister about his plan.” Sophalleth said the Cambodian premier welcomed the idea, advising Thaksin to collaborate with the Cambodian Development council.
Thaksin was toppled in a 2006 military coup and went to live in self-imposed exile in England. He shot to prominence again last year with the purchase of struggleing English football club Manchester City.

Saturday, July 05, 2008
Power lines
Australia will allocate more than 30 million Australian dollars over the next four years to bring electricity to rural Cambodia, Vietnam and Laos. (Photo: HENG CHIVOAN)
Friday, 04 July 2008Written by Lyria Eastley The Phnom Penh Post
Australian Foreign Minister Stephen Smith says thousands of rural households in Cambodia will be connected to electricity under funding Australia will provide through the World Bank over the next four years.Smith announced the funding of more than 30 million Australian dollars on July 1 during a visit to Vietnam, one of three countries along with Cambodia and Laos to benefit from the rural electrification program."In Cambodia, where only six percent of rural households can access electricity, Australia will provide $12.3 million to help extend electricity supply to an additional 13,000 households and small enterprises in rural areas," Smith said.As well as improving electrical supply in rural areas, the funds would also be used to reduce transmission losses and promote renewable energy in the three countries, Smith said.A statement issued by the Australian embassy in Phnom Penh said the funding builds on the Canberra government's development program in Cambodia."The Australian government will provide an estimated $61.2 million (US$58.6 million) in development assistance to Cambodia in 2008-2009 (July 2008 to June 2009)," said the statement.
Saturday, July 05, 2008
Dammed if you do...
Friday, 04 July 2008Written by Sovan Nguon The Phnom Penh Post
A hydropower dam being built in southwestern Cambodia will destroy more than 5,000 hectares of protected forests, say researchers who conducted an environmental assessment for the joint-venture’s Chinese partner.The revelation was made by Um Serey Vuth, the leader of a team of researchers employed by the China Datang Corporation.The corporation and its partners, CHD Cambodia Hydropower Development and Cambodia Power Grid, unveiled plans in May to invest $313.36 million to build the 120MW Atay dam, which is due for completion in 2012.Serey Vuth, who headed a team of 10 researchers, said the assessment showed the dam would destroy 5,193 hectares of protected forests in the Phnom Samkok Wildlife Sanctuary and the Cardamom Mountains.He said the assessment began in May, when work started on the project, and was completed late last month.The assessment showed the dam would flood 3,650 hectares of protected forest in the wildlife sanctuary and 1,543 hectares of protected forest in the mountain ranges, he said.He said trees had to be removed from the affected areas otherwise they would affect the quality of water in the dam.Serey Vuth said, however, that the dam would have a minimal impact on people living in the project area and would bring much needed electricity to the Kingdom.“Only 36 families in three villages in O’Som commune, Veal Veng district, Pursat province will be affected, along with about 1,000 fruit trees and 10 hectares of farmland,” said Serey Vuth.He said the local authority and residents supported the project.“The authority and the people support the project 100 percent because they will have access to the electricity generated by the dam," Serey Vuth said.Seng Bunra, the country director of US-based NGO Conservation International, expressed qualified reservations about the project."For environmentalists, 5,000 hectares of protected forest is a lot if we are talking about preserving biodiversity, wildlife and habitats, and absorbing carbon dioxide," Bunra told the Post on July 3."But sometimes we need to make sacrifices because our country needs electricity and we just express our concerns."We can't prevent the government from developing the country but what we insist on with this project is protection for forests around the dam site to avoid further destruction," he said, warning that if this was not done up 10,000 hectares would be at risk of being cleared of trees.He said that the Cardamom Mountains, which cover about two million hectares, is a unique eco-system in Cambodia containing rare wildlife such as tigers, elephants, wild buffalo, bears, Siamese crocodiles and dragon fish."In the Southeast Asian region, there is no protected forest as picturesque as those in the Cardamom Mountains," Bunra said.Defending the project, Ith Praing, secretary of state for the Ministry of Industry, Mine and Energy, told the Post on July 3 that environmental damage was acceptable in hydropower projects because an adequate electricity supply was crucial for attracting foreign investment.“Before allowing the development, we had to weigh its environmental impact and its contribution to development," he said."We see that development provides more advantages, so we decided to approve the project," Praing said, adding that improvements in electricity supply would also help to raise living standards.“The more electricity is generated, the cheaper it will be, so there will be more foreign investors interested in doing business in Cambodia," he said.Praing said the Atay hydropower project was one of three in protected forest areas in the Cardamom Mountains involving Chinese companies.He said the two others were approved in mid-June. They are the China National Heavy Machinery Corporation's $540 million project to build the 246MW Tatay River dam, due for completion in 2013, and the 338MW Russey Chrum Krom project, involving an investment of $495.7 million by the Michelle Corporation, due to be finished in 2015.Sam Rainsy Party lawmaker Yim Sovann said that while the country needed to generate more electricity, the government should do more to protect forests in areas adjoining project sites.
Wednesday, July 02, 2008
Cambodia Economists Predicts Slower Economic Growth [-General commodity price of Cambodia has increased by some 66% since the beginning of the year]
PHNOM PENH, July 2 (Bernama) -- The Cambodian Economic Institute has predicted that the country's economic growth will slow down due to inflation and stagnation of real estate transactions.Both the factors will drag Cambodia's leg of the economy and is expected to cause more problems hence after, China's Xinhua news agency quoted the institute experts, as saying at a month-seminar on domestic economic situation.According to official statistics, general commodity price of Cambodia has increased by some 66 percent since the beginning of this year.Meanwhile, most real estate projects and transactions are on hiatus due to political calculation of the ongoing general election.The Cambodian government and international financial institutions once estimated that the economic growth rate of Cambodia will reach seven to nine percent in 2008.The economic growth rate of Cambodia stood at double digits during the past three years due to strong exports of garments and a booming market of infrastructure construction.
Thursday, July 03, 2008
Save electricity: Shut down power at Hun Sen's tiger lair
Cambodia Offers Ways To Save Electricity
PHNOM PENH, July 2 (Xinhua) -- Cambodia's state-run Electricite du Cambodge (EdC)offers seven ways on how the public an lower their electricity usage, a local media reported Wednesday."We encourage users to save energy because EdC lacks about 40 megawatts to meet the electricity consumption in Phnom Penh at the peak hours between 7 am to 8pm," Xinhua quoted EdC Director-General Keo Rattanak, as saying in a statement.Among the ways that are outlined: users should avoid using many electrical appliances at once; Do not turn on outside lamps before sunset; Turn lamps off after sunrise.The EdC is unable to meet the nation's growing appetite for electricity, forcing the agency to frequently black out sections of the capital.And electricity usage nationwide is predicted to increase by at least 10 percent annually, EdC officials said earlier this year.
Thursday, July 03, 2008
Cambodia, Japan to finalize trade pact by end of July
PHNOM PENH, July 3 (Xinhua) -- An investment protection agreement between Cambodia and Japan will finally come into force at the end of July after nearly a decade of negotiation and revision, English-Khmer language newspaper the Mekong Times said Thursday.Diplomatic notes on the trade pact, labeled the Agreement for the Liberation, Promotion and Protection of Investment, were exchanged between the two nations in Phnom Penh on July 1 and will come into force on July 31, the paper quoted a Japanese Embassy statement as saying.The agreement is expected to "improve Cambodia's investment environment and further strengthen the economic relationship between the two countries," said the statement. Cambodia hopes the deal will attract investment from Japan which Prime Minister Hun Sen has personally visited 15 times, according to the paper.The possibility of concluding an agreement on investment protection and promotion was first raised by the premier during his visit to Tokyo in 1999.Japan, the world's second largest economy, lags behind other Asian countries in terms of investment.

Exit Tax to Be Incorporated In Flight Price
By Katie Nelson
The Cambodia Daily
Starting Sept 1, the departure tax airline passengers line up to pay at Cambodia’s international airports will instead be added to the price of their plane tickets, officials said Wednesday.
The airport management services fee--$25 for foreigners and $18 for Cambodians—has been levied by the government since 2003 and goes toward paying for airport infrastructure, services and security at Phnom Penh International Airport and Siem Reap International Airport.
Ho Vandy, president of the Cambodian Association of Travel Agents, said moving the tax payment to the point of sale for tickets was a victory for the industry and travelers.
“Often people don’t carry the money, or don’t carry US dollars, so it’s very difficult for the tourists who don’t know they will have to pay [the airport tax],” Ho Vandy said.
“We don’t like to get complaints from tourists,” he added.
The government has not made an official announcement yet on the tax, but a meeting between authorities, airport management firm Societe Concessionnaire des Aereoports and about 20 airlines that service both airports is tentatively set for mid-July, Ho Vandy said.
At the meeting, the parties will also discuss the possibility of charging one price for both local and foreign passengers, said Ho Vandy, who is also co-president of the government-private sector Tourism Working Group.
Removing the two-tier payment system and payment being made at the airport will smooth the departure process and ease the pressure on large tour groups that must coordinate paying the fees for many people, Ho Vandy added.
“If you pay for it when you buy the ticket, it keeps [it] faster, it keeps [it] easier… Most of us [in the tourism industry] are very happy to see this,” he said. “We want to uphold our reputation as a friendly tourist destination.”
SCA Director of Communications Khek Norinda had not responded to request for comment Wednesday evening.
Trade pact hopes to snag elusive Japanese investment
The Japanese Embassy announced yesterday that an investment protection agreement with Cambodia, which has taken almost a decade to hammer out, will finally come into force at the end of this month.
Diplomatic notes on the trade pact, labeled the Agreement for the Liberalization, Promotion and Protection of Investment
(JCBIA), were exchanged between the two nations in Phnom Penh July 1 and it will come into force July 31, said the embassy statement.
The agreement is hoped to “improve Cambodia’s investment environment and further strengthen the economic relationship between the two countries,” it added.
Cambodia hopes the deal will attract investment from a corruption- wary nation which Prime Minister Hun Sen has personally visited 15 times — the possibility of concluding an agreement on investment protection and promotion was first raised by him during a visit to Tokyo in 1999.
Japan, which has the world’s second largest economy, has been the top aid donor to Cambodia since the early 1990s, but has lagged far behind other Asian nations in terms of investment.
China and South Korea have invested US$1.7 billion and US$1.5 billion respectively in Cambodia since 1994 while Japan has invested just US$135 million, according to figures released earlier this year by the Council for the Development of Cambodia.
According to the 76-page JCBIA, Japanese firms seeking to invest in Cambodia will be treated equally to local firms in terms of regulations and taxation, while Cambodia is obliged to build a more favorable investment environment.
“[T]hese objectives can be achieved without relaxing health, safety and environmental measures…
[Both parties] shall ensure that measures and efforts are undertaken to prevent and combat corruption,” according to the JCBIA.
Hun Sen’s last visit to Tokyo in mid-2007 was marked by his promise to tackle graft, an issue which was identified as the top concern for Japanese investors interested in Cambodia in a 2006 survey carried out by the Japanese Chamber of Commerce in Bangkok.
Keiji Miyauchi, the CEO of Maruhan Bank, which earlier this year became the first Japanese commercial bank to open its doors in Cambodia, believes that the trade pact will encourage more Japanese investment.
“I believe it will. Since last year Japanese individuals and company owners have been studying Cambodia’s investment environment and have become more active here,” he said, adding that high land prices in Vietnam spiked their interest.
“Japanese investors take time before making a final decision, but once they come, they stay for a long time,” said Miyauchi.
But Hiroshi Uematsu, finance and accounting director of the Phnom Penh Special Economic Zone (PPSEZ) — a vast US$90 million joint Japanese-Cambodian venture, fears that Japanese investors may still be loath to come.
“[The agreement] may not be enough,” he said. “I hope it is, but Japanese companies are not so familiar with the Cambodian government’s structure, they will hold detailed studies first.”
Opposition lawmaker Son Chhay said that investment from developed nations like Japan is good for Cambodia.
“I believe when nations like Japan invest in Cambodia it strengthens our rule of law, because these nations will not accept corrupt business deals,” he said. “This type of investment strengthens our institutions and brings about change.” Son Chhay added, however, that the current government has too many “bad habits,” which Japanese investors will not accept.
Japan announced in May that 2009 will be Japan-Mekong Exchange Year, through which it hopes to bolster ties with Mekong situated nations already heavily invested in by principal economic rival China.
Craig Guthrie
Banks Prepare for Opening of Cambodia’s Stock Exchange
By Stephen Kurzy , The Cambodia Daily (July 3, 2008)
In preparation for Cambodia’s forthcoming stock market, Canadia Bank and Acleda Bank have each established internal committees to eye potential investment opportunities, officials said.
Acleda Bank’s new Investment Committee is mulling over its options in preparation for the stock exchange, President In Channy said.
Acleda is also readying to be one of the listed companies by working with two international rating agencies—Moodys Investors Service and Standard & Poor, In Channy said.

The firms are conducting international standard performance tests, upgrading insurance policies and improving transparency, In Channy wrote in an e-mail.
Canadia Bank Deputy Director Charles Vann, whose bank wants to house the stock exchange in its new 30-story business center on Monivong Boulevard, said 25 bank employees are undergoing a yearlong training at the stock exchanges in China and South Korea.
“They are learning about the securities industry and how to support a stock exchange,” Vann said by telephone.

Canadia is also looking to become a publicly traded company, though Vann said this possibility depends on the Finance Ministry publishing its stock exchange regulations.
“If the stock market is going to be opened in 2009, I think security companies need to do their homework now,” he added.

Mey Vann, the Finance Ministry’s financial industry director, said the forthcoming election has interrupted publication of the stock market regulations, including the rules for the listing companies and brokers. Nevertheless, Mey Vann said foreign multinationals are looking into servicing the forthcoming stock exchange.

“There are a lot of companies looking to be consultants of the listing companies,” Mey Vann said by telephone.

“I cannot say [what companies] for the moment because they need to say for themselves,” he added.

One such company is London-based property consultant firm Knight Frank, which entered its 36th country in May when it opened its office in the Phnom Penh Center.
Cambodia Chairman Eric Ooi said listed companies must pay firms such as Knight Frank to conduct fixed asset valuations, which help determine a company’s stock value, but most local real estate agents lack the exposure and qualifications to meet standards expected by international investors in the forthcoming stock market.

“We believe there is a need for quality real estate services of an international standard,” Ooi said in a recent interview at the firm’s six employee office.

Kao Thach, head of the Finance Ministry’s financial market division, said that aside from Knight Frank, the recently opened offices of Tong Young Investment Bank and Thailand’s CitiBank are eyeing ways to service the stock market, either by helping the government to issue security bonds or helping private companies to go public.

The Cambodian government is firmly committed to opening the exchange in 2009, Kao Thach said, adding that some are still skeptical about the idea.

“We can see that some people want to wait until everything is perfect, but nothing is perfect in this. In this country, they want to see some people raise the flag first and make a profit, and then they will follow,” he said.

ANZ Royal CEO Stephen Higgins said company shareholders have yet to decide what role his bank will play. With the exchange still about a year and a half away, Higgins said it’s still too early for ANZ Royal to think about servicing the market.
Cambodia to expand rubber exports
PHNOM PENH (Xinhua): Cambodia will export some 50,000 tonnes of dried rubber to the international market over the next year, a conspicuous rise over the current 30,000 tonnes a year, national media said Tuesday.
"We hope that Cambodia's exports of dried rubber will continue to rise as the new rubber trees which have been planted over the past five years under an expansion project are tapped for resin," Ly Phalla, general director of the General Directorate of Rubber Plantation, was quoted by English-Khmer language newspaper the Mekong Times as saying.
"International market demands for rubber and rising rubber prices will be an incentive for Cambodia to step up rubber exports, " he added. Dried rubber now sells 3,310 U.S. dollars per ton in Cambodia, up from 2,800 U.S. dollars last year.
Cambodia began rubber cultivation in the 1920s during the French colonial era but exports dwindled in the 1970s as the country was ravaged by civil wars.
Mok Kimhong, director of Chub Rubber Plantation, said rubber exports have great potential. “I think that this is an opportunity for Cambodia to expand the cultivation of rubber trees, as rubber has the potential to drive economic development,” he added.
According to an annual report recently released by the Agriculture Ministry, Cambodia will expand rubber cultivation from 80,000 to 150,000 hectares by 2015 in a bid to compete regionally.
But Men Siphann, director of Peam Chhaing Plantation, warned some firms will struggle to expand because of a shortage of land available.

Naga Mulls Cambodia Casino Rights Sale as Competition Rises
By Netty Ismail June 30 (Bloomberg) –
NagaCorp Ltd., the monopoly casino operator in the Cambodian capital of Phnom Penh, said it may sell a license to foreign companies, giving them the right to develop a new gaming property in the city, said Chief Executive Officer Chen Lip Keong, 60.
The company has a monopoly to operate casinos within a 200- kilometer (125-mile) radius of the capital until 2035, and isn't subject to any legal restriction on selling secondary licenses.
About 52 percent of Naga World’s revenues come from the public casino floor, Bloomberg reported; total revenues rose 69 percent in 2007 to $144 million.
Naga World has about 350 hotel rooms and 110 gaming tables as of July 2, with current expansion set to house 700 hotel rooms and 300 gaming tables by 2009.


Euro 2008 kicks off betting frenzy
As Euro 2008 steams towards its June 30 final, football fans are betting more than $1 million a day at Cambo-Six outlets, but calls are mounting for better regulation of gambling amid concerns that heavy losses will lead to a spike in crime.Figures from Cambo-Six, the country's only authorized betting shop, indicate that it is raking in at least $1.12 million to $1.4 million a day on Euro 2008.Suos Panha, a staff member at one of the 29 Cambo-Six outlets in Phnom Penh, said the branch was taking between $40,000 and $50,000 a day in bets on Euro 2008, a figure likely to rise ahead of the final in Vienna on June 30.At Phsar Tapang, a popular informal venue for bookies and punters on Rue Pasteur, bookmaker Chan Phalla said he had been taking $2,000 a day in bets since Euro 2008 began, up from about $800 a day before the tournament.Cambo-Six alone brings in about $60 million, according to Chhay, citing figures from the Ministry of Economy and Finance. Finance ministry secretary of state Chea Peng Chheang, who also chairs the committee for combating gambling, said Cambo-Six pays more than $1 million in taxes each year.

Trade with China to Reach $1 Billion in 2010: Gov’t
The Cambodia Daily, June 28 2008 (Kuch Naren)

Bilateral trade between Cambodia and China is expected to increase to $1 billion by 2010, Foreign Affairs Minister Hor Namhong said Friday at a celebration of the 50th anniversary of diplomatic relations between the two countries. In 2007, trade between the countries totaled about $933 million, he said.

China is ranked second for direct foreign investment in Cambodia, the foreign minister said, referring specifically to the Kamchay hydropower dam in Kampot province, which will open in 2010, and Stung Atay hydro-power dam which will open in 2012 in Koh Kong province.

He noted that on June 13 the government approved two additional hydropower plants in Koh Kong province, which the government has said will total more than $1 billion of investment and be completed in either 2014 or 2015.

Chinese Ambassador to Cambodia Zheng Jinfeng said her government is encouraging Chinese firms to invest in Cambodia. To achieve that goal, Beijing in 2006 suspended tariffs on 418 different Cambodian goods exported to China, she said.

Between 1992 and 2007, China has helped Cambodia on 118 projects including renovation of the Senate, National Assembly, and 1,700 km of national roads, she added.

Tecotech Starts on Fiber Optic Cable to Japan
$50-million submarine link to lower telecom costs
Phnom Penh Post (June 27, 2008)

In a bid to reduce the costs of telecommunications services in Cambodia, Tecotech Co., Ltd will invest $50 million in submarine cable linking Sihanoukville to Japan and to global networks beyond, Tecotech chairman Huot Vanthan told the Post on June 21.

“I will spend my own capital and help connect Cambodia to the world,” by cooperating with a US-based firm, said Vanthan, who also operates a specialized investment bank and is a shareholder of Maruhan Japan Bank. “We don’t begin to see a return… until the fourth year of operations.”
Tecotech began laying an inland cable from Phnom Penh to Sihanoukville last week and was expected to complete this stage of the project within eight months. The whole project was slated for completion in about two-and-a-half years.
The German government has already donated fiber optic cables to connect Poipet and Siem Reap to Phnom Penh, and from Phnom Penh to Bavet, and Svay Rieng along the Vietnamese border, said Sophat.

“We already have six GSM network operators here,” said Vanthan. “So we should have a low-cost cable backbone for them.”
Once the system was up, he added, the price of telecommunications would come down considerably, allowing Cambodia to attract more investors with lower communications costs.
Last year, the Cambodia Investment Board (CIB) approved licenses for several telecommunication companies and the sector brought in a total of $471 million in capital, creating about 1,850 jobs.
Among telecoms receiving the green light in 2007 were Cambodia Advance Communications Co. (CADCOMMS), a 3G network provider with $164 million in capital; (Cambodia) Fiber Optic Communication Network Co., with 100-percent Chinese investment and $28.3 million in assets; and Applifone, a GSM 1800 Mobile network with 75 percent Kazakhstan investment and 25 percent Nepali investment, as well as assets $82.8 million.
Meanwhile, Viettel (Cambodia), a GSM mobile service project owned by the Vietnamese People’s Army and Taiwan, will invest $70 million in building a Cambodian arm.

Jetstar Airline To Begin Daily Flights to Cambodia
As of July 28, Singaporean airline Jetstar Asia will operate nonstop flights to Phnom Penh on Mondays, Wednesdays, Fridays and Saturdays and to Siem Reap during the rest of the week, until October 28, the firm’s Cambodia manager, Veoung Prayut, said.
“Cambodia is getting a lot better,” Veoung Prayut said. “Last year, we were never full. But this year, I think the aircraft is mostly full,” he said.
Jetstar began services to Cambodia in November 2006 and is one of two Singaporean airlines to service Cambodia. Further afield, Jetstar Pacific, a joint venture owned 30 percent by Jetstar Asia and 70 percent by Vietnam’s Pacific Airlines, is looking to provide daily flights from Ho Chi Minh City to Phnom Penh and Siem Reap starting in October. “As there are more long haul flights [from] Australia to [Ho Chi Minh], they think there’s a good opportunity for connections to Cambodia,” Societe Concessionnaire des Aeroports spokesman Khek Norinda said.

Vietnam’s Sacombank To Open in Cambodia, Laos
The Vietnam central bank approved last month for Saigon Thuong Tin Commercial Joint Stock Bank, known as Sacombank, to open branches in Cambodia and Laos, according to media reports. Sacombank was “urgently” completing necessary procedures to open the two branches, the Thanh Nien Daily newspaper reported.
Sacombank is the only listed bank on the Ho Chi Minh Stock Exchange and is Vietnam’s second-biggest bank by market value, seeing a 40-percent jump in profits during the first four months of this year to $33.5 million, according to reports.
Sacombank is owned 30 percent by ANZ, Dragon Capital and the World Bank’s International Finance Corporation. National Bank of Cambodia Director General Tal Nay Im said she was aware of Sacombank’s intent to enter Cambodia but had not yet received an official application. “I do not know when it will open,” she said by telephone Tuesday.
Singaporean Firm Wins Cambodia Power Deal
Singapore- Singapore power firm Asiatic Group (Holdings) Ltd said Wednesday it has won a power supply contract in Cambodia worth potentially $475 million over a 99-year period. Under the contract, Asiatic Group will supply power to the Phnom Penh Special Economic Zone, a company statement said.
The contract is expected to add approximately $4.8 million a year to group revenue once the power plant is fully operational in 2009, it said. (Reuters)
Vermicelli Seller Eyeing Cambodia for Production
The Cambodia Daily, June 26, 2008
Malaysia’s biggest vermicelli seller is eyeing Cambodia as a potential site for producing tapioca. KBB Resources Berhad, which controls 60 % of the vermicelli market in Malaysia, said its possible entry into Cambodia would hinge on the amount of land it is able to acquire.
Vermicelli, a circular, thin spaghetti-like noodle, is made from tapioca, which is produced from the roots of the cassava plant. According to the report, the firm’s Executive Director Kenny Ang said with the rising costs of raw materials the company was searching for its own sources of tapioca.
“We will be able to mitigate the effects of high raw material prices by producing our own sago starch for consumption and tap into the export market.” Agriculture Ministry Secretary of State Chan Tong Yves confirmed Wednesday that KBB Resources Berhad is looking to invest in Cambodia.


Cambodia, Laos See Surge in Korean Investments
Figures by the Korea International Trade Association show a steep on-year growth of US$1.3 billion in Korea's corporate investment in Cambodia last year. That makes the Southeast Asian country the second-biggest destination after China in terms of Korea's overseas investment.
Investments to Laos, meanwhile, posted a 16-fold jump in 2006 from the year before and chalked up $81 million in 2007.
Analysts say such expansion in investment has helped Korean exports to the two countries post significant growth, especially for auto parts, textiles and steel. (Arirang News)
First Cambodian-Owned Noodle Factory To Open
June 24, 2008, the Cambodia Daily (By Neou Vannarin)

The first wholly Cambodian-owned noodle factory will begin operations Wednesday in Kandal province, officials said. Men Sarun Co will start packaging 25,000 to 30,000 packs of instant noodles an hour at the 5-hectare factory site in Ponhea Leu district employing more than 100 workers, General Manager Chuon Kol said by telephone. Made from locally grown cassava plants, Mee Yeung, or “Our Noodles,” will be available in Phnom Penh stores next week and in surrounding provinces by the end of July, Chuon Kol said. “We have a vision to sell about 150,000 cases of noodles a month to the local market for the first year,” he said.
Owned by CPP tycoon Senator Men Sarun, Mee Yeung will compete against Cambodia’s first noodle factory, the Thai-owned President Foods Cambodia Co, which produces Mama instant noodles, and opened in 2001 in Phnom Penh’s Dangkao district.

Angkor National Museum offers much-needed overview
The quirky, pointy-roofed Angkor National Museum, first opened in November last year, offers visitors a unique encounter with Cambodian civilization between the 6th and 19th century. Entry for international tourists is US$12, US$3 for Cambodians and free for students.

Built under a Build Operate Transfer (BOT) agreement, the 10,000 square meter two-story museum documents the fascinating history of “Cambodia the rich,” as ancient Chinese sources dub the Kingdom.

The US$15 million complex houses many Cambodian treasures, displayed sympathetically under gentle lights. All of the eight galleries feature exhaustive multi-media descriptions of the displays in several languages including Khmer, English, French, Chinese, Japanese, Korean and Thai.

The museum, currently the only one in Siem Reap, displays 1,300 pieces taken from Phnom Penh’s famed National Museum and the Angkor Conservation organization. From Phnom Penh come 96 stone artifacts, 847 metal and 16 of wood. Angkor Conservation has provided 331 marble pieces, 90 made from wood, three made from metal and two ceramic pieces.

On average, 200 tourists currently visit the museum every day to seek the understanding of Khmer culture, but also enjoy leisure activities, food and a spa.
Cambodia keen on granting local airlines permit
MON JUNE 23, 2008 Philippine Daily Business Mirror
During the air talks between the two countries held last week, Civil Aviation Authority (CAB) deputy executive director Porvenir Porciuncula said in an interview that Cambodian officials assured it will “accept and process” applications from any Philippine carriers interested to service the Manila-Cambodia destination.The Philippine air panel was hoping to sign its first ASA with Cambodia. The CAB official said that “in some way, we were able to establish an air transport agreement with them.” However, Cambodian officials present during the one-day negotiation held at the CAB office said the Philippines’ request for 32 weekly flights would still have to undergo regulatory approvals in Cambodia.The CAB official revealed that Philippine Airlines and Cebu Pacific have both informed the board of their intentions to mount flights to Cambodia. The flag carrier is looking at servicing Manila-Cambodia three to four times a week.KLM utilizes the Boring 777 200 and 300 aircraft which can carry 327 and 425 passengers, respectively. German carrier Lufthansa Airlines used to mount flights from Manila to Europe until it decided to stop servicing this route last March.
Cambodia's banking sector to be stable: Moody's
PHNOM PENH, Jun 20, 2008 (Xinhua) -- Cambodia's banking sector will remain stable over the next 12 to 18 months due to its consistent economic growth, development in regulatory and financial infrastructure and growing public confidence, stated the report from international financial rating firm Moody's. It also predicted a GDP growth rate of 7.2 percent for Cambodia in 2008, down from 9.6 percent in 2007. According to government figures, Cambodia has enjoyed double-digit economic growth rate in the past three years, as a result of its political stability and open policy.
Guinea to buy 120,000 tons of Cambodian rice
Cambodia will export 120,000 tons of rice to Guinea in a bid to ease the West African nation’s food crisis, Prime Minister Hun Sen said yesterday.
Hun Sen revealed that Cambodia will send agricultural experts to Guinea to assist in the development of new rice-growing techniques.
Guinea – with 6 million hectares – has a similar amount of farmland to Cambodia, the premier noted. Cambodia, which last year had a rice surplus of some 2 million tons, lifted a ban on rice exports in May. Around 1.5 million tons of rice will be exported this year, the government has estimated.
Guinea is the second African country this year to ask for rice exports from Cambodia. Senegal bought 6,000 tons of low grade broken rice at the height of the global rice price crisis in late-April.
IFC Tower to boost economic development
Deputy Prime Minister Sok An said yesterday at the groundbreaking ceremony for the nation’s tallest planned skyscraper that the 52-storey International Finance Complex (IFC), being built by South Korea’s GS Engineering and Construction (GSE&C), will contribute to the country’s current economic development.

The US$1 billion project will include a 52-story office block, a 32-story residential block of 1,064 residents, an international school and a shopping mall.
The IFC dwarfs the planned Gold Tower 42 building – also being built by a South Korean company – and the Canadia Bank-invested 30-storey business center, both of which are under construction on Monivong Boulevard.
According to a statement from GSE&C, which has been ranked the 31st largest construction company in the world, the IFC Tower complex will encompass commercial centers, an international school and residential blocks and will be completed by 2012. It is situated on more than 68,000 square meters of land straddling the riverbank of the Bassac.

Sok An said that South Korea is currently taking the lead in mutual cooperation on various sectors in Cambodia including banks, construction, aviation, information technology, human resource training, cultural collaboration, investment and tourism. He also urged Korean entrepreneurs to invest in other potential sectors such as infrastructure, production, agriculture, agro-industry and mining.

Ambassador expects more S Korean investment
PHNOM PENH, June 19 (Xinhua) -- South Korean ambassador to Cambodia Shin Hyun-suk has said that he expected more investment from his country to the kingdom and since he took over, the number of Korean residents has risen from 1,500 to 5,000 and he confides that big Korean players like Kia, Hyundai and Samsung are also looking at the Kingdom.

In 2007, Cambodia became the 6th biggest host of South Korean investment after China, the U.S., China's Hong Kong region, Vietnam and Malaysia, he said.

For the time being, Cambodia’s international competitiveness lies in the labor intensive industries such as garment manufacturing, shoe manufacturing, toy manufacturing, assembly processing and so on. Producing consumer goods, agriculture and agro-industry, animal feed producing and biofuels processing also have great potential. Energy and natural resources development are undoubtedly Cambodia’s high priority sectors and have high potential.
In service industries, the banking, insurance and other financial services, transportation and telecommunications can also be promising sectors.

"Recently, some South Korean investors who had invested in China and Vietnam have been moving into Cambodia. With this trend, South Korean investment in Cambodia has been diversified," he added.
Initially, South Korean investment was concentrated on the garment manufacturing sector, he said, adding that banking, agro-industry, manufacturing, real estate development and IT sectors are the dominating fields of South Korean investment in Cambodia now.

Gov’t OKs Construction of 2 Hydropower Dams
By Tim Sturrock and Neou Vannarin The Cambodia Daily, June 16, 2008
The Council of Ministers on Friday approved plans for two Chinese firms to construct hydropower dams in Koh Kong Province that will provide a total of 584 megawatts of electricity, Council of Ministers Spokesman Phay Siphan said Sunday.

China National Heavy Machinery Corporation plans to build a $540 million dam on Stung Tatay River capable of generating 246 megawatts of electricity when it is completed in 2014 and will operate the plant for 37 years and sell the power to the government, the report said. After that, ownership of the plant will be transferred to the Cambodian government, it added.
Michelle Corporation plans to complete a $495.7 million dam on Stung Russey Chrum river that will produce 338 megawatts of electricity for 30 year buy-operate-transfer agreements and will give 20 percent of profits to the government and sell electricity for $.07 per kilowatt-hour.
Phay Siphan said the government will clear 1,600 hectares of forest that would be flooded by the Stung Tatay project. CNHM will compensate 193 families in the Thma Baing district who will lose their land and employment, he said.
The Stung Russey Chrum project will not harm local fishing, Phay Siphan added, because the government will raise fish in the Stung Russey Chrum lake upstream.
Cambodia plans to open nine other dams between2010 and 2019 to generate over one thousand 900 megawatts of power.


Hun Sen Approves Resort in S’ville: Developer
by Stephen Kurczy and Neou Vannarin
the Cambodia Daily
Plans for a $250 million resort in Sihanoukville received verbal approval form Prime Minister Hun Sen on Thursday, a company official said.
Ream Resort and Development Co Managing Director Thierry Loustau-Khao said Sunday that he had visited Hun Sen’s Kandal home to present tentative plans for the resort, which is to have about 200 villa and condo units, a PGA-rated golf course, marina, village and five star-hotel.
Ground will break in November on the 140-hectare resort, 5 km from Ream National Park and 10 km from Sihanoukville International Airport, which Loustau-Khao said was already approved by the Council for the Development of Cambodia and scheduled to open by 2010.
“I can tell you this is absolutely serious, and we will start in November,” said Loustau-Khao.
Ream Resort and Development CEO Alain Dupuis, a French citizen, is the principal financial backer, Loustau-Khao said.
Two foreign companies are now in negotiations to build the hotel.
Ream Resort Development Co also has rights to the 43-hectare Koh Sramoach island, 400 meters from shore, which Loustau-Khao said will be developed with villas.
Prey Nop district Governor Lin Sorin said this is the fifth resort announced for his district and the company had already begun fencing in the area.
Minister vows to ban imports of older used cars, motorbikes
Tuesday, 17 June 2008, Phnom Penh Post
The import of used cars and motorbikes manufactured prior to the year 2000 will be banned in order to help preserve Cambodia’s environment, Minister of Commerce Cham Prasidh announced Monday.The move will keep tens of thousands of used vehicles made from 1950s and 1990s from being brought into the Kingdom.
The policy is part of the trade platform of the ruling Cambodian People’s Party and would be implemented once the government received a new electoral mandate in the coming elections.The government would implemented the plan on a rolling basis, with vehicles made before 2003 banned in another three years and those made before 2005 banned two years after that. The ministry was also considering lowering fees and customs duties on new vehicles to encourage importation, while ensuring that lower-income people had access to affordable transportation, he said.Cambodia is home to about 200,000 automobiles and 670,000 motorbikes, most of them used, according to figures from the Ministry of Public Works and Transport.
Reported mineral exploration in national park raises concerns
Written by Cheang Sokha and Tracey Shelton
Thursday, 12 June 2008
An Australian company exploring for minerals in Virachey National Park is reported to have asked villagers in four different sites to build helicopter landing pads in the forests of the ecologically rich, ASEAN heritage-listed site, highlighting fears that Cambodia's nascent mining sector will undo conservation efforts in the country's fragile environment.An Indochine Resources spokesman, who asked not to be named, said the exploration work was taking place under a permit granted by Ministry of Industry, Mine and Energy in 2007, and with the permission of the Ministry of Environment.

Campu Bank opens 11th branch
Written by Kay Kimsong
Thursday, 12 June 2008
Cambodian Public Bank, a subsidiary of Malaysia-based Public Bank Berhad, opened its 11th branch in the country on June 3 in a move the company said was in anticipation of strong national economic growth over the coming years.Dr Teh Hong Piow, founder of Public Bank Bhd and director general of Campu Bank’s paid-up capital doubled from $45 million in November 2007 to $90 million at the end of April and the loans grew by 129 percent in 2007 while deposits increased by 59 percent over the previous year. Teh said that as of April 30, Campu Bank’s total loans and deposits stood at $526 million and $376 million respectively – a 45 percent and 18 percent increase from December 2007.“Campu Bank will continue to invest in technology, train and develop human capital, and develop new products and services to better serve the banking needs of the Cambodian public,” he said.National Bank governor Chea Chanto welcomed Campu Bank’s expansion, noting that it now accounts for a quarter of all loans and deposits in Cambodia.Public Bank Bhd is the biggest bank in Malaysia in terms of market capitalization, with a value of nearly $13 billion. Teh is one of Malaysia’s wealthiest businessmen with a net worth of $3.5 billion, according to Forbes.
Tourism arrivals up 14 pct in year to May
(Written by Nguon Sovan and Peter Olszewski)

Tourism to Cambodia jumped more than 14 percent in the year to May, with Siem Reap posting the largest influx of foreign visitors, government figures show, although the Angkor temple town experienced a first-quarter dip in the number of arrivals from the same period in 2007.Kong Sopheareak, director of the statistics department at the Ministry of Tourism, told the Post that Cambodia was on track to attract 2.3 million visitors this year, adding that political stability and infrastructure improvements had increased the number of tourist destinations in the country.This diversification could be behind the seven percent drop in arrivals to Cambodia’s most popular tourist draw, the Angkor temple town of Siem Reap, tourism officials said.Elsewhere in Cambodia saw a significant surge in visitors, such as coastal resorts and the northeastern provinces of Mondulkiri and Ratanakkiri, according to Sopheareak, who added that tourism was hoped to earn Cambodia some $1.64 billion this year. South Koreans continue to make up the largest group of foreign visitors, followed by Vietnamese and then Japanese, according to tourism ministry figures.
Tonle Sap Bridge connecting National Road 5 & 6

The construction for Tonle Sap Bridge of 996.20 metres length and 14 metre width in Prek Pnov was launched by Prime Minister on Sunday to be completed within 28 months.

The 30 years BOT investment including also road and infrastructure construction will cost $42,550,000 by LYP Group.

The west side road from Kob Srov dam to the bridge roundabout will be 546.87 metre and the East side road from the bridge to National Road 6 A within the junction of bridge No. 6 and No. 7 will be 8,170.52 metre length and 14 metre width.
This will help people from Kampong Thom and Kampong Cham to drive to Kampong Chnang and Pursat directly and possibility to set up factory in Mok Kampoul and Ksach Kandal districts.

Siem Reap Centralized Administrative Buildings 30% done

The new 40 ha Siem Reap administrative center in the development goal for enlarging the city to the East side of the province in Phum Tnot village and Phum Bong Koang village of Khum Ampil commune, Prasat Bakong district.

Mr. Nhem Thara, architecture of GNR Company said that the new provincial office will has 35 departments’ offices. It has done about 30% and will be completed in October 2009.
The new administration building cost $20 million employed 300 construction workers.
The centralized public admin building construction will be started after receiving a Sub-decree on 20th August, 2008 (2007?) by GNR Company.
France, China to sign oil and gas deal with Cambodia
Phnom Penh, Jun 13, 2008 (Asia Pulse Data Source via COMTEX) -- France's oil and gas company TOTAL and China National Offshore Oil Corporation CNOOC are expected to sign a deal with Cambodia to explore oil and gas on the mainland of Cambodia.The signing ceremony will take place this year, following the conclusion of Cambodia's parliamentary election scheduled on July 27.Currently, other oil and gas companies in the world such as Moeco, Jogmec, GS Gallex, Pan Orient and Inpex are working with Cambodian National Petroleum Authority (CNPA) to reach agreements on oil and gas exploration in the country.
Taiwan telecom to joint with Vietnam’s Viettel
PHNOM PENH, June 19 (Xinhua) -- Chunghwa Telecom Co., the largest telecommunications operator of China's Taiwan, has announced plans to enter the Cambodian market, local newspaper the Cambodian Daily reported Thursday.
Chunghwa Telecom, has a 30% stake a $30 million joint venture with Viettel, Vietnam's largest mobile operator by subscribers.

Chunghwa Telecom Co., which is traded on both Taiwan and New York stock exchanges and offer mobile phone and internet services, Viettel, which is run by the Ministry of Defense.
Viettle began providing internet service in Cambodia at the end of 2007, but is still building infrastructure for its forthcoming 097 mobile phone network.
2015: $3.2 billion revenue expected in the tourism 11 June 2008, By Ky Soklim, Cambodge Soir Hebdo The number of tourists keeps on increasing from one year to another. In 2007, Cambodia welcomed 2 million tourists who brought in a revenue of $1.4 billion. The tourism sector then represented 15 % of the GDP and allowed the creation of 300,000 jobs.The ministry of Tourism predicts that in 2010, the number of foreign tourists will reach 3.2 millions, and will generate $2.1 billion in revenue for the kingdom. For 2015, 5 millions tourists are expected and they would bring in $3.2 billion in revenue.
Real estate investment almost tripled in one year12 June 2008, By Ky Soklim, Cambodge Soir Hebdo Investments in the construction sector reach $3.2 billion in the country in 2007, whereas this number was $1.2 billion in 2006, this represents a 269% increase, Im Chhun Lim, the minister of the land management, urban planning and construction, announced during a conference providing the results of the government realizations between 2004 and 2007.The construction of high rise buildings stems from the high cost of land in the capital. In the commercial zone of Phnom Penh, the price of land increased from $400 per square-meter in the 90s to $4,000 at the beginning of 2008.About one month to the general election, the price of real estate has stabilized, and it even saw a slight decrease. This trend could be confirmed after the election.Between 34,000 and 40,000 people are employed in the construction sector. Non skilled workers earn between $120 and $180 (per month), whereas those who are skilled earn between $500 and $1,500.-------
Opposition calls for reduction in petrol tax
Amid skyrocketing petrol prices, that are straining the wallets of the Kingdom’s poor, the opposition party has called on the government to reduce petrol import tax by 300 riel (about US$0.08) per liter, to prevent on-going petrol smuggling and further spiraling prices.

The Cambodian government currently charges petrol import tax of 1,200-1,300 riel (about US$0.29-0.31) per liter. “We do not think the government can keep on charging such high tax on fuel imports, as it has done in the past, because it will push local fuel prices up,” said Son Chhay.

Son Chhay said it is estimated that the price of crude fuel will jump to US$200 per barrel by the end of 2008, and if a tax reduction is not made, petrol will increase to 6,500 riel (US$1.58) per liter at the pump. Current petrol prices at local gas stations are 5,600 (US$1.36) and 5,500 riel (US$1.34) per liter for super and regular petrol respectively.

Hang Choun Naron, secretary general of the Economy and Finance Ministry, said the government will not be able to lower the current fuel tax, as the majority of fuel consumers are rich. The Government has claimed it will have subsidized fuel to the tune of US$300 million by the end of 2008. (Chun Sophal)
More Foreign Oil Firms Near Drilling Deals
Cambodia Daily
June 12, 2008
France’s Total and China’s state-run Chinese National Offshore Oil Corp are close to signing deals for onshore oil exploration, government and company officials said.
Patrick Pouyanne, senior vice president for strategy at Total, said by phone from Paris that the company has “good hope to conclude an agreement in the coming months” for “a large license onshore in Cambodia.” He declined to say where.
“We are in discussions with the National Authority of Cambodia to see if we can develop exploration activity. It’s frontier exploration. Onshore Cambodia has not been explored until now,” he said.
Total has been negotiating with the Cambodian National Petroleum Authority since early 2007, Pouyanne said.
Deputy Prime Minister Sok An told a UN Development Program oil conference in March that negotiations were under way for onshore exploration deals with companies including Total, Moeco, Jogmec, GS Caltex, Pan Orient and INPEX.
According to a high-ranking CNPA official, who spoke on condition of anonymity, CNOOC is interested in block 13, which lies just to the north of the Tonle Sap lake.
“It is really environmentally sensitive. The government moves cautiously,” he said. “After the election they might sign an agreement.”
Last year, CNOOC inked an exploration agreement for Cambodia’s offshore Block F and has already finished preliminary seismic work there, the official said.
The government has contracted with Petroleum Geo-Services, a Norwegian geophysical data collection and analysis firm, to conduct seismic studies of its onshore oil basins, he added. Seismic studies are an early step in determining the scope of potential oil reserves.
Contract talks on a revenue sharing agreement with US oil giant Chevron, which struck oil in offshore Block A in 2005, are ongoing, the CNPA official added.
“Until we get clear guidance from the Ministry of Finance, the [Supreme National Economic Council,] [Council for the Development of Cambodia]—after that, the Prime Minister will make a final decision,” he said.
Most of onshore Block 13 lies in Bantey Meanchey province.
Sok Saret, a deputy governor of Bantey Meanchey province, said Monday he didn’t know about an exploration contract with CNOOC.
Preach Sun, a secretary of state in the Ministry of Environment, said Monday he did not know about the pending deal with CNOOC and had not seen documents related to the matter. But, he added, he is wary of the potential impacts on Cambodia’s great lake. “When they do exploration or mining, it affects the environment,” he said.
The Tonle Sap floodplain is home to about 10 percent of Cambodia’s population and provides 75 percent of the animal protein consumed in the country, according to the Asian Development Bank.

Cambodia to See Second Cement Factory
By Kim Natacha
Economics Today
Thailand’s cement leader, Siam Cement Plc, is planning to build a second factory in Cambodia, the first one being Kampot Cement factory in the south of the country, Bloomberg reported May 6.
The Company president, Kan Trakulhoon, said in an interview that Siam Cement may spend as much as Baht 6 billion (around US$189 million) to triple its production capacity in Cambodia.
“We have to import cement for our customers in Cambodia as the first factory, which started operations in January, is already running at full capacity,” Kan Trakulhoon said. “There’s a very strong outlook for cement sales in Cambodia because of infrastructure development and economic growth.”
The first cement factory operating in Cambodia—Kampot Cement factory—is a joint venture between Siam Cement Group and Cambodia’s Khaou Chuly Group. The factory produces about 1 million tons of cement per year.
The new factory is expected to be twice as big to bring production capacity to 2.55 million tons a year. A feasibility study will be completed this year, noted Kan Trakulhoon.
More finger Licking for Phnom Penh
Following the success of Cambodia’s first Kentucky Fried Chicken outlet, Malaysia-based QSR Brands Bhd announced a $1 m plan to open three more KFC restaurants in Phnom Penh before the year’s end. Company chairman tan Sri Muhammad Ali Hashim said: “We also plan to set up at least four new stores annually in the country, mostly in other populous cities such as Sihanoukville and Siem Reap.”
The first KFC, operated by joint venture company Kampuchea Food Corp Ltd, opened its doors in early March and was officially launched in April by commerce minister Dr. Cham Prasidh. “The fast food industry will grow in tandem with the increase in demand from tourists, which is expected to grow by about 30% this year,” said Dr. Cham. He said he hoped QSR would bring its other fast food businesses such as Pizza Hut and Ayamas to Cambodia.
QSR currently manages almost 500 KFC and 200 Pizza Hut restaurants in Malaysia, Singapore and Brunei.

Development Approved for 3 Islands Near S’ ville
The Cambodia Daily, June 9, 2008
Two foreign development schemes on three islands off Sihanoukville’s coast worth more than $500 million inched closer to reality in recent days, with the government approving a $35-million resort on two islands and breaking ground for a $473-million project on another.
On Saturday, Prime Minister Hun Sen inaugurated construction of a 900-meter bridge from Sihanoukville’s Hawaii Beach to Koh Pos- or Snake Island.
Russian company Koh Puos Investment Group, which signed a 99-year lease to develop the island in September 2006, said in a statement the project will create up to 25,000 new jobs.
“The big issue is to create employment,” Hun Sen said at the bridge’s groundbreaking.
Hun Sen said the 99-year lease will end sooner if the company defaults on its contract and denied that Cambodia is selling land to foreigners.
The bridge inauguration came a day after Australian property development Brocon announced Hun Sen’s approval to transform Sihanouk ville’s Koh Oun and Koh Bong islands, 30 km off the coast, into a $35-million resort, according to a news release.
“With the project’s investment value around $35 million, this represents not only a serious injection for Cambodia’s tourism industry, but also the economy as a whole,” Brocon CEO Rory Hunter said in the Friday statement.
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Nearly million Cambodians go abroad annually
PHNOM PENH, June 5 (Xinhua) -- Nearly one million Cambodians visited foreign countries last year, the Mekong Times newspaper said Thursday, citing the first ever Tourism Ministry report on Cambodian tourists.Vietnam and Thailand were the most popular destinations, according to the report revealed Wednesday.Kong Sopheareak, director of the Department of Statistics and Tourism Information at the ministry, said similar figures were expected this year."This indicates that Cambodia's economy and living standards have increased significantly," he added.Cambodia, with a population of about 14 million, has never before compiled statistics about how many Cambodians make trips abroad.However, Ho Vandy, president of the Cambodian Association of Travel Agents (CATA), opined "the outflow of Cambodian tourists visiting abroad does not provide benefits to Cambodia."A CATA survey found that Cambodian tourists spend an average of 500 to 800 U.S. dollars per trip.
Jetstar announces direct flights
between Cambodia and Singapore
Singapore-based Jetstar Asia plans daily flights between Singapore and Phnom Penh starting at the end of July, the company
said in a press release Thursday.
The daily flights, some of which will also include the northern tourist hub of Siem Reap, are scheduled to begin from July 28, the airline said. Jetstar Asia is an offshoot of Australian Qantas’ budget airline Jetstar Airways.
The company did not say how much tickets would cost for the new route. DPA

Cambodia to Get Korea's Help in Reforestation
Jun.5, 2008 Arirang NewsChosun.com (South Korea)
Korea will help Cambodia replant the forests stripped bare around its ancient temple complex of Angkor Wat.Cambodian Prime Minister Hun Sen requested Korea's help in restoring denuded woodlands on Tuesday during Korea Forest Service Minister Hah Young-je's visit to the Southeast Asian country.The Cambodian leader also urged Korea's investment in his country's rubber-tree plantations and wood pulp production. The two officials signed an MOU to this end and agreed to co-host a forestry cooperation meeting every two years.
Arnold Palmer joins Cambodian golf boom
Jun 4, 2008DPA
Phnom Penh - Golfing great Arnold Palmer confirmed his company will build a 36-hole golf course in Cambodia, an official from Cambodia's Sokha Hotels said Wednesday.Arnold Palmer Design Company had been retained to build the course at the new 1-billion-dollar resort development by the Sokha group at the former French colonial Bokor Hill Station Resort, project manager Svay Vuthy said.'This was the company's plan so we signed him. He is the best in the US and we want the best golf course in Cambodia,' Vuthy said.'The plan is for the course to cover 200 hectares with 36 holes, but we will start by opening an 18-hole course so we can assess and observe the conditions. Construction is due to begin next year.' Cambodian Prime Minister Hun Sen is perhaps the only world leader to list his golf scores on his personal website, and the Cambodian elite, as in most of Asia, is golf crazy.There is even a Korean-managed public putting range in the centre of the Cambodian Senate's grounds.Cambodia is also aggressively chasing the high-end tourist dollar, and golf courses have mushroomed across the country in the past five years as the country enjoys peace and economic stability.Palmer, 78, is among the great golfers of all time, winning seven major championships during his career, which began in the 1950s, and being inducted into the World Golf Hall of Fame in 1974.His successful design company has designed 300 golf courses to date, according to his website, and prides itself on being in tune with the environment - an attractive trait for Bokor, which lies in a national park, around 200 kilometres from the capital.Vuthy did not disclose the total cost of the course.
Golf course to be built on Bokor Mountain
Wednesday, June 4, 2008The Sokha Hotel (owned by Sok Kong) signed an agreement with the Arnold Palmer Company to build a 36-hole golf course at the base of Bokor Mountain, as part of the Bokor Mountain recreational area development. The area was abandoned in the past. According to the information provided by Sokha Hotel on Tuesday, in its first step, an 18-hole golf course will be built on an area extending 45-hectare, and it will be completed in 2010, after which a second construction phase will start. The golf course is part of $1 billion, 15-year plan by the Sokha Hotel to renovate the hotel and casino originally built during the colonial period, and was later abandoned. The plan also includes the building of motels, entertainment park, and modern market, the Sokha Hoteal information indicated also.
Airlines reduce flights to Cambodia as off season comes
PHNOM PENH, June 4 (Xinhua) -- Airlines are beginning their annual reduction of flights into Cambodia as the off season of tourism has started, the Cambodian Daily reported Wednesday.As of June 1, Bangkok Airways has temporarily canceled its twice-weekly flights from Chiang Mai, Thailand, to Siem Reap, Cambodia, which will not reopen until October.Meanwhile, the airline will remain its five-to-six daily flights from Bangkok to Siem Reap, the English-Khmer language newspaper quoted company source as saying. Last month, Vietnam Airlines canceled 110 flights into Siem Reap, which is the hottest sight-seeing spot of Cambodia.Also in May, Eva Air cut off 13 flights into Cambodia.Every year, airlines scale back flights to Cambodia when the rainy season begins and tourism slows, the paper quoted airport official as saying.Tourism is one of the kingdom's foremost pillar industries. In 2007, it received some 2 million foreign tourist arrivals.
Chinese Datang Corp. building hydropower plant in Cambodia ... whereabout unknown
Datang Corp expands to Cambodia with hydropower plant project
Jun. 3, 2008 (China Knowledge) - China Datang Corp, parent of the listed Datang International Power Ltd , announced that it has started the construction of a hydropower plant project in Cambodia, a fresh breakthrough achieved in its global expansion.The plant, considered as the largest economy and technology cooperation project between the two countries, will help Datang to tap the fledging electricity industry in Cambodia where exists abundant but remote-located water sources.The construction of the 120,000-kilowatt plant will have two phases. The first generator is expected to start operation in December, 2010.The project will help Cambodia ease the pressure brought about by the mounting oil prices and boost the nation's economic development, said a senior official with the Cambodian government, adding that Datang Corp is an experienced power company with strong strength in plant building and administration.
Ministry predicts rapid growth for tourism
The Ministry of Tourism yesterday predicted tourism will earn the Kingdom US$3.2 billion annually by 2015.
Tourism is currently the second largest earner for the Cambodian economy, he said, topped only by the garment industry.
The industry accounts for 15 percent of GDP and employs 300,000 people, Thong Khon stated.
According to the Tourism Ministry’s report for 2007, Cambodia saw 2,015,000 tourist arrivals last year earning the nation some US$1.4 billion in revenues, figures that fuelled Thong Khon’s optimism.
“We expect that Cambodia will attract around 3.2 million tourists in 2010 and earn US$2.1 billion, and 5 million in 2015 with expected revenues of US$3.2 billion,” and the government has enlarged airports, resorts and other attractions after focusing on tourism as its second strongest sector after the garment industry.
Cambodia’s tourism industry has grown from US$578 million in 2004 to US$1.4 billion in 2007, according to ministry
figures. Chun Sophal

Former Khmer Rouge hail Pailin SEZ
Written by Thet Sambath Friday, 30 May 2008'Hot battlefield' to become 2,000-hectare industrial zone


A massive special economic zone (SEZ) being carved out of jungle near Pailin on the Thai border will help create jobs for former Khmer Rouge soldiers living at the one-time rebel stronghold, local officials said.A signboard went up in mid-May on the outskirts of the partially cleared Pailin SEZ, which at 2,000 hectares dwarfs similar zones designed to lure foreign investment in neighboring provinces. Thai firms are eager to set up at the Pailin zone, about 15 kilometers inland from the border town in Steung Kach commune, Salakrao district, according to Pailin Municipality deputy governor Ich Sarou.Sarou said he and other local officials have met several times in recent months with a group of about 50 Thai businessmen who are cooperating to open a biodiesel production plant as well as garment and electronics factories at the zone."They wanted to launch their operations two months ago by sending machinery in to clear land but we refused their request because it's a big investment worth more than $2 million, which means they have to get permission from the CDC (Council for the Development of Cambodia)," Sarou said.Keut Sothea, another deputy governor of Pailin Municipality and a former Khmer Rouge commander, said the special economic zone will go a long way to improving the lives of the region's ex-rebels. "It will encourage investors to open factories here and will provide work for our former Khmer Rouge soldiers and other people," Sothea said, adding that the jungle from which the zone is currently being created used to be "a hot battlefield for the Khmer Rouge, Vietnamese soldiers and government forces.""Before, we used to shoot and shell each other there; now we are fighting to make business and a profit," he said. "It is good news and it shows that Cambodia is completely peaceful.... We are forgetting the past and turning the land into a developed area for people's wellbeing," he added. Sarou said the SEZ had been in the pipeline for several years and was part of a plan outlined by Prime Minister Hun Sen to establish five special economic zones in Pailin and Banteay Meanchey, Koh Kong, Kandal and Svay Rieng provinces. It is hoped the zones will lure foreign investors through tax breaks and the prospect of cheap Cambodian labor."We hope companies and factories will invest here next year," Sarou told the Post in Pailin. "We have a lot of land for their investments." However, the deputy secretary general of the CDC's Special Economic Zone Board, Chea Vuthy, said on May 20 he had not received any requests from businesses seeking to start operations at the Pailin SEZ. He also said that while the CDC welcomed foreign investment in the area, the council had not received a request for the Pailin zone to be formed."The special economic zone in Pailin has not been officially requested and registered. They (Pailin Municipality officials) should request approval for it from the CDC," he said, indicating that its approval was a mere formality.Former Khmer Rouge soldiers in the area contacted by the Post welcomed news that work was progressing on the Pailin SEZ. "I am very happy to hear this special economic zone is being created here. I hope it will help many Cambodian people find work and stop them from having to go to Thailand," said Soeun Say, a farmer who was previously a fighter for the hardline communist movement. "We need investors to come here - we have a lot of land to produce crops for factories," he said.Lath Nhoung, another former Khmer Rouge soldier, said the SEZ would benefit the agricultural sector as well as provide industrial jobs."When we have more factories we are encouraged to farm because it means we have a market for our crops," he said.
Tourist visits continue to rise this year
Cambodia received over 640,000 tourists in the first quarter of 2008, a 17 percent increase over the same period last year, a Tourism Ministry report claimed Saturday, a figure which leaves the Kingdom well on target to exceed the 2 million visitors it welcomed last year.
Though the majority of arrivals (55 percent) visited Siem Reap — home to the famous Angkor temples — the northwestern province saw a 7 percent dip in visitors overall, while Phnom Penh and other destinations saw a whopping 71 percent rise.
Almost two-thirds of visitors arrived by air, with Phnom Penh International Airport welcoming 164,000 visitors, a 20.4 percent increase over last year, and Siem Reap International Airport 238,000 — similar to last year’s figure.
Arrivals through Cambodia’s land and waterway entry points have risen significantly (over 35 percent), with entry through land rising 30 percent and by water a huge 85.6 percent.
South Korean visitors again topped the list this year with 15 percent of the market share. Other key markets included Japan with 8.41 percent, Vietnam with 8.3 percent, the US with 7.4 percent and China with 6.3 percent.
Arrivals from Asean countries grew by 54 percent compared to the same period last year. Vietnam led the pack with 25,900 — a 106 percent rise — and visits from Thailand saw a rise of 47 percent.
Visitors from Australia increased by 23 percent, from France and the UK by 22 percent and Taiwanese tourists 10 percent.
The nationalities which dominated business arrivals were China and Vietnam with 9,280 and 8,400 respectively.
Business visitors from Thailand were next with 3,800, while S Korea had 3,700.
Tourism is a crucial industry for Cambodia’s narrow economy, with the two million visitors it welcomed last year bringing in
US$1.4 billion of revenues, almost 17 percent of total GDP.
Craig Guthrie

Bank reserve requirements doubled
Friday, 16 May 2008
Cambodia has doubled reserve requirements for private banks from 8.0 to 16 percent in a bid to curb money supply to stem rising inflation, officials said May 7.The requirements will take effect from July this year, said Phan Ho, director of banking supervision at the National Bank of Cambodia, adding that the government had already informed private banks in the Kingdom.“The measure is important to reduce so much cash circulation,” he said. “Now our GDP (gross domestic product) has increased too high, too fast. We want it to slow down because when the growth jumps too high, it is not good,” Phan Ho added.The new reserve requirement will only affect foreign currency deposits, he said.Cambodia’s economy has averaged 11 percent growth over the past three years, but inflation has also soared.It cracked into double digits late last year, hovering around 11 percent, driving up the cost of food and other staple goods.In Channy, the president of ACLEDA Bank Plc., said the measure would limit business activities.“Now more than 8.0 percent of the money will not be used for lending,” he said. “The more lending there is, the more investment and more income for the country, as well as generating more jobs and maintaining the economic growth.”He said the government should increase reserve requirements gradually.
Gov’t Announces 2nd Koh Kong Development
May 31, 2008 (the Cambodia Daily)

A Chinese real estate developer (Tianjin Investment Development Group) is planning a 30,000-hectare commercial and tourism development in two Koh Kong province districts, the second such development to be announced this month after Thai, British and Dubai investors.

Tianjin Investment Development Group, which annually develops 2 million square meters of real estate in China, are to make an initial investment of $300 million in Koh Kong before internationally tendering construction contracts of unknown value in January 2009.

The development will involve a golf course, a financial center and 30,000 rooms in three to five-star hotels will be located in Botum Sakor and Kiri Sakor districts but will no harm the 171,250-hectare Botum Sakor National Park and will include no casinos.
Gov’t: Financial Reforms Swell State Coffers
May 29, 2008 (the Cambodia Daily)

The government Wednesday announced the completion of the first round of reforms aimed at public financial management, citing budgets surpluses derived from improvements in revenue collection and cash management.
Domestic revenue collected by the government increased from $656 million in 2005 to $1 billion in 2007—an annual average increase of 23 percent, Finance Minister Keat Chhon said in a speech at the third annual review meeting for the reform program. Revenue collection equal to about 9.5 percent of GDP in 2007, up from 8 percent the previous year.

Government expenditures have grown by a little more than 20 percent per year since 2005 from $878 million to $1.14 billion.
The cash balance at the National Treasury has also reached $250 million, 250 times more than the balance in 2003, Keat Chhon said.

Speaking at the review meeting, Prime Minister Hun Sen said the state was also able to double its foreign reserve holdings from $809 million in 2004 to $1.6 billion by the end of 2007. That figure has now increased to $1.9 billion, he added.

Hun Sen said his gov’t would invest in infrastructure and irrigation projects, collect taxes on unused land holdings, and stabilize the riel against the dollar.
GE sees “Tremendous Opportunity” in Cambodia
May 29, 2008 (the Cambodia daily)

In 2005, Colin Low executed a $1.5 billion sale of 19 of General Electric’s GE 90-powered Boeing 777-300ER aircraft to Singapore Airlines. Last year, Low became president of GE for Singapore, the Philippines and Vietnam. GE opened officially in Phnom Penh in November.
GE is a $173 billion company, with a target to grow two to three times GDP growth, to have 20 percent returns on total capital and for operating cash flow to exceed earnings growth by 10 %.

GE are meeting with the embassies, with various commercial peoples and companies for strategic infrastructure such as lease airplanes, power turbines, pumps & compressors for the oil and gas industries, transmission and distribution grid network for electricity, health care and industrial equipments

Telecoms sector could bring in US$500 million a year: minister

With a rising number of mobile phone and internet users, Cambodia is gearing up income collection measures hoped to ensure the government reaps hundreds of millions of dollars from the telecoms sector in the near future.
“If we manage the sector well and take VAT [Value Add Tax], the government could one day earn US$400 to 500 million annually,” So Khun, posts and telecommunication minister, told The Mekong Times.
He added that the government is currently streamlining its taxation process to build on current annual revenues — which he hopes will this year reach US$70-80 million.
Cambodia currently has around 2.5 million mobile phones and over 37,500 landline and internet users, though telecommunications revenues in recent years have sagged to a lowly US$31-36 million. The figures are low due to poor income collection, say analysts, who argue that in 1995 revenues were greater at US$46 million.

Telekom Malaysia has said it will invest $100 million into building a telecoms network in Cambodia over the next 2 years, said CEO Yusof Annuar Yaacob.
Chun Sophal
Cambodian foreign trade tops US$8 billion for 2007
The Cambodian Ministry of Commerce announced Thursday that the Kingdom’s foreign trade volume topped US$8 billion in 2007.
The export volume topped US$3 billion and imports stood at more than US$4 billion, said a statement issued by the Commerce Ministry at a conference concerning the government’s rectangular policy.
Cambodia’s 2007 export volume increased 8.51 percent over 2006, the statement said.
Cambodian agricultural products – including rice, corn, cashew nuts, cassava and rubber – fetched high prices on the international market, the ministry said, although the garment sector was still the major source of revenue.
Since 2004, the average annual GDP growth was 11.1 percent in the face of global inflation, a 64 percent increase in exports to $4.2 billion by 2007.
By 2030, 70 to 100 percent of Cambodians will have access to electricity.
(Xinhua)
Civil aviation industry took US$16 million in 2007
The State Secretariat of Civil Aviation (SSCA) of Cambodia announced Thursday it collected nearly US$16 million from air services last year, an increase of almost 33 percent compared to 2006.
In 2007, nearly three million foreign air passengers arrived at Cambodian airports, an increase of 27 percent over 2006, said an SSCA statement during a conference of the government’s rectangular policy.
There are currently 20 foreign airlines and nine domestic airlines serving Cambodia, the statement said, adding that the renovation of airports across the country should expand air travel and economic development.
Koh Kong provincial airport will be available for investment soon and the Rattanakiri provincial airport is already at the bidding stage. (Xinhua)

Commerce minister lauds garment achievements
The garment industry continues to be a pillar of strength for the Cambodian economy, said Commerce Minister Cham Prasidh Saturday, revealing that the Kingdom is the eighth largest exporter of women’s clothes to the US.
“About 20 million items of women’s clothing are exported to the US market per year,” Cham Prasidh said at a conference on the government’s “rectangular policy.”
“We should be proud that our country is in the first rank of the 178 countries exporting women’s clothes to the US,” he added, claiming the achievement was partially due to the commerce policy guaranteeing fair working conditions which Cambodia signed with the US in 1999.
Cambodia had only four factories in operation in 1995 when garment exports to the US began. In 2007, Cambodia had 301 garment factories and about 340,000 workers, producing goods for the US market worth almost US$2 billion, according to Commerce Ministry figures.
Cham Prasidh stressed the achievement of rising from 170th biggest women’s garment exporter to the US in 1999 to the position of eighth Cambodia now holds. “I think that this is a success and true benefit for the country and people,” he added.
Only China, Mexico, Vietnam, Indonesia, India, Bangladesh and Honduras lead Cambodia in US garment exports. Chun Sophal
Cambodian foreign trade tops US$8 billion for 2007
The Cambodian Ministry of Commerce announced Thursday that the Kingdom’s foreign trade volume topped US$8 billion in 2007.
The export volume topped US$3 billion and imports stood at more than US$4 billion, said a statement issued by the Commerce Ministry at a conference concerning the government’s rectangular policy.
Cambodia’s 2007 export volume increased 8.51 percent over 2006, the statement said.
Cambodian agricultural products – including rice, corn, cashew nuts, cassava and rubber – fetched high prices on the international market, the ministry said, although the garment sector was still the major source of revenue.
(Xinhua)
Investment in Cambodia Friday, 30 May 2008 (The Mekong Times)
CDC stated that private investment totaled US$253 million in the three months of early 2008; among 21 new projects recorded by the CDC this year, compared to 26 last year. Of this year’s 21 projects, four relate to tourism, two are agricultural, one related to telecommunications and 14 industrial projects.Singapore is the investment leader so far this year with US$48 million, Suon Sophal revealed, followed by China with US$32 million and Korea with US$30 million. Last year China was ranked first with total investment of US$66 million, leading Kazakhstan with US$62 million and Korea with US$38 million.Chan Sophal, President of Cambodian Economic Association and Senior Research Manager of Cambodian Development Resource Institute, was also upbeat despite the CDC figures. “I’m optimistic Cambodian investment will increase in the second semester after the elections, as Cambodia has many resources, good economic growth and political stability,” he said, adding that investment was still high when compared to the last 3-4 years.In 2007, investment in Cambodia totaled US$2.6 billion
Calls for direct flights with Japan
Direct flights with Japan would bring more Japanese visitors to the Kingdom, with arrivals from the Far Eastern nation hopefully making up one- eighth of tourist arrivals in 2010, Chinese-language newspaper the Jianhua Daily quoted a minister as saying Thursday.
Cambodia expects to have some 3.2 million foreign tourist arrivals in 2010, with 400,000 of them from Japan, Tourism Minister Thong Khon told an industry seminar here Wednesday.
The goal can be achieved if both countries inaugurate direct flights, he added.
Japanese visitors topped the list of foreign tourist arrivals in Cambodia from 2002 to 2003, but were later surpassed by South Koreans as a result of the inauguration of direct flights between the two countries, he said.
Cambodia urges Japan to follow suit, said Thong Khon.
According to official figures, 17 million Japanese traveled abroad in 2007, with 3.36 million of them arriving in Asean countries and 160,000 going to Cambodia.
Tourism is a crucial industry in Cambodia. The country received some 2 million foreign tourist arrivals in 2007, an 18 percent rise over 2006.
Around 65 percent of them arriving by air, according to ministry statistics. (Xinhua)
For investors, Cambodia could be the next Vietnam
Friday, May 30, 2008 (International Herald Tribune)
At least four new private equity funds are aiming to bring $475 million of foreign investment into Cambodia.Faber, who is on the boards of two of the new private equity firms in Cambodia - Frontier Investment & Development Partners and Leopard Capital - is not the only one who thinks so.Jim Rogers, a commodities specialist who founded the profitable Quantum Fund with George Soros in the 1970s, and Robert Ash, former chief executive of AIG Asset Management Services, are also on the board of Frontier.Heinrich Looser, the retired chief of private banking at Bank Julius Baer in Zurich, and Jim Walker, a former director and chief economist of CLSA Securities, are on the Leopard board as well.Cambodia, with a gross domestic product of just $8.4 billion last year, plans to open stock and bond exchanges next year, also has the potential to produce two things the world now craves: more rice and oil.China, South Korea and Malaysia have been pouring in investment. In 2006, foreign direct investment totaled $2.6 billion, up from just $340 million in 2004, according to the International Monetary Fund.That looks like opportunity to Marvin Yeo, who recently quit as a syndicate manager at the Asian Development Bank to co-found Frontier, which manages the Cambodia Investment and Development Fund, with a Singaporean economist, Kim Song Tan. They hope to raise $250 million by the end of the year.But as Han Kyung Tae, the chief Cambodia representative of Tong Yang Investment, part of the South Korean Tong Yang Group, points out, promise and pretty macroeconomics are one thing; closing good deals on the ground are quite another.Han has been trying to start an Indochina investment fund for more than a year. He said he had reviewed 30 to 40 business plans, but had yet to close a single deal. Tong Yang has scaled back its venture capital aspirations and now hopes to invest $25 million in a Cambodian information technology company, as part of a Vietnam-Cambodia fund, Han said.Proparco, the financing subsidiary of the French Development Agency, is "studying the possibility" of investing $5 million to $15 million in a Cambodia-focused private equity fund.
Douglas Clayton, who founded Leopard Capital last year, said that Leopard's Cambodia Fund had raised $10 million of its $100 million target since its inception in April, mostly from wealthy individuals and private banking institutions. He expects to close on Leopard's first project, a 250-unit condo project in the Cambodian tourist hub of Siem Reap, in the next few weeks.Cambodia Emerald, which split off from Leopard in November, also aims to raise $100 million, said Peter Brimble, who directs Emerald with Bradley Gordon, a former corporate lawyer.The funds are targeting investment in tourism, agribusiness, infrastructure, real estate, manufacturing and financial services, among other sectors.
Malaysia Biggest Investor In Cambodia
From Noor Shamsiah Mohamed
PHNOM PENH, May 29 (Bernama) -- Malaysia has been the biggest investor in Cambodia for 14 consecutive years with investments totalling US$2.19 billion (RM7.3 billion).Malaysia's Ambassador to Cambodia Datuk Adnan Otman said that according to the March 2008 report of the Development Council of Cambodia, Malaysia ranked top, followed by China with investments of AS$1.761 billion."Among the business carried out by Malaysian companies are power generation, textile manufacturing, construction, hotels, restaurants, telecommunications, insurance, banking and petroleum," he said in his speech at a dinner hosted by the Malaysian Business Council in Cambodia at the Raffles Hotel Le Royal here Thursday."The number of Malaysians who came to Cambodia in 2007 was 84,039 people, from 36,876 in 2006."Cambodians who went to Malaysia in 2007 totalled 23,193 people compared with only 9,957 people in 2005," he added.
China presence in Cambodia grows
May 30, 2008 RFA
According to the official China News Agency, China has become one of the biggest investors in Cambodia, with 3,016 Chinese companies making cumulative investments of US$1.58 billion to the end of 2007. Bilateral trade last year rose by 30% from 2006, to $730 million.Since the signing of an investment protection agreement in July 1996, a further $350 million has been pledged, mostly in the forestry sector, power, textiles, construction materials, and agricultural development."China is both an important donor and an investor, and it's also a big market for Cambodian products," Khmer Economists' Association president Chan Sophal said. "Our agricultural products are exported to China but through Thailand and Vietnam. We are also a market for Chinese products. China’s role in the Cambodian economy is growing," he said.Chinese Foreign Minister Yang Jiechi visited Cambodia in February, pledging a further $55 million in aid and investments of $1 billion in the country's power industry. He also waived import tariffs on 400 Cambodian products.The Cambodian government granted a Mondulkiri forest concession of 200,000 hectares - 20 times the legal limit - acquired by Pheapimex, an ethnic-Chinese owned Cambodian conglomerate formed a joint venture with China's Wuzhishan plantation firm to exploit the region.
China wrote off significant loans to the Cambodian government six years ago, making new loans and grants worth $600 million during the visit to Cambodia of Chinese Premier Wen Jiabao in April 2006.While no conditions were attached, analysts say Beijing is keen to secure access to the southern port of Sihanoukville for strategic reasons, particularly as a delivery point for imported oil.
Phnom Penh’s first satellite city launched
May 26, 2008: The construction of Phnom Penh’s first international satellite city, which will cost more than US$500 million, has been launched on a 260-hectare site in Russey Keo district’s Khmuonh commune, 7km northwest of the city by Grand Phnom Penh International City (GPPIC), a joint venture between the Indonesian CG and Cambodian YLP Group.

“The new integrated town will house as many as 4,400 families, and will consist of villas, apartments, office buildings, shopping centers, hotels, schools, hospitals, sport and leisure areas, an 18-hole golf course with driving range and much more,” Ciputra said. “GPPIC will be developed with the essential facilities for families with international life styles.”

Ciputra Group has spent the last 25 years developing 28 satellite cities in Indonesia, and two more in Vietnam and India. Ciputra said he hoped GPPIC will be finished by 2018, and he claimed it will be as modern as any other city in the world.
Mao Malay, general director of YLP, said the two companies started developing the city together in 2006.

She added that the venture was granted full master plan approval by the Phnom Penh Municipality on Aug 9, 2006, and the Council for the Development of Cambodia gave its support in principle on Aug 28, 2007.

“When GPPIC is finished, it will help reduce Phnom Penh’s traffic congestion,” said Phnom Penh governor Kep Chutema. GPPIC will offer customers a choice of 10 types of flats with sizes ranging from 140-600 square meters.
(Touch Yuthear: Mekong Times)
Koh Kong to become ‘second Hong Kong’: Thaksin
May 26, 2008: Koh Kong province is to become an investment hotspot with former Thai Prime Minister Thaksin Shinawatra proposing 10 billions of dollars worth of development. Thaksin told Prime Minister Hun Sen that Koh Kong had good potential for economic development that would drive poverty reduction for Cambodian- Thai border areas in a May 23 meeting at the premier’s Takmao residence. Saudi Arabian and British investors were also present at the talks.

Eang Sophalet, a personal assistant to Hun Sen, said “[Thaksin] spoke of his intention to invest in building a city which is environmentally sound, with hospitals, houses, hotels, an international port and shipyard. The newly renovated 152 km National Highway 48, including a 1,560-meter concrete bridge, has piqued investors’ interest in Koh Kong, with several projects planned for the formerly isolated province.
Hun Sen welcomed Thaksin’s ideas and asked Thaksin to cooperate with the Council for the Development of Cambodia to make sure the project contributes to Cambodia’s poverty reduction,” he added.
No information about the total cost of the project was revealed, but the project is thought to be worth 10 billions of dollars. Though there was no timetable for construction, Thaksin has told Thai media he wants Koh Kong to become a “second Hong Kong.” (Mekong Times)

Gov’t warns island developers over breaches of contract
A senior Cambodian official has told investors developing islands to speed up their projects, warning that they must not divide their land concessions into plots for resale.

“Investors should not construct houses or villas [for sale]. They have to establish hotels or resorts to attract tourists to Cambodia, said Finance Minister Keat Chhon at a May 22 bank inauguration, warning that: “We will not allow companies to violate their contracts.”
The Cambodian government has granted permission for private firms to construct resorts worth billions of dollars on 10 islands off the coast of Sihanoukville and Kampot.
However, only a few sites are currently under construction, with rumors that companies are violating their contracts to build luxury residences for sale.

Sihanoukville governor Say Hak could not be reached for comment yesterday, though he has previously warned that investors will lose their deposit and have their islands confiscated if development is too slow. Chun Sophal

Cambodia to Remain the Focus of Leader Universal
By Marina Emmanuel
CAMBODIA will continue to be the focus of Leader Universal Holding Bhd's power generation business as the Penang-based company looks to clinch downstream power-related jobs there.
Managing director and chief executive officer Sean C.H. H'ng said the company is eyeing power distribution and transmission activities in Cambodia where it has been present for more than a decade.
Last year, LUH had announced plans to float its power generation business and was targeting to do so by the middle of this year. It was mulling a listing in either Singapore, Hong Kong or Dubai.
Apart from power generation, Leader makes and sells cables and wires for the power and telecommunication industries. It also develops properties.
The company, via 60 per cent-owned Cambodian Utilities Pte Ltd, is the first independent power producer (IPP) in Cambodia, where it began operations in 1996.
Last year, Leader won a bid to develop its second power plant, a 200 megawatt (MW) coal-fired plant which will be located in the port town of Sihanoukville.
Leader and its Cambodian partner, MKCSS Holdings, has signed a 30- year power purchase agreement.
"With the signing of the power purchase agreement and implementation agreement with the Cambodian authorities, construction works are expected to commence in early 2009, with commercial production targeted to begin in 2012," he added.

New road will benefit Koh Kong and TRAT
CHATRUDEE THEPARAT
KOH KONG, CAMBODIA: Tourism between Thailand and Cambodia is expected to flourish now that road transport has been improved, said Sasithara Pichaichannrong, the permanent secretary of Tourism and Sports Ministry.
Work was completed last month on the route known as the Southern Coastal Sub-corridor, linking Thailand's Eastern Seaboard provinces and Trat with Koh Kong and Sihanoukville in Cambodia, and onward to Nam Can in Vietnam.
According to Ms Sasithara, foreign visitor numbers are also expected to increase because Thailand and Cambodia have agreed to offer a single visa for travel to both countries.
Cambodian visitors to Thailand totalled 108,776 last year but only 35,796 Thais visited Cambodia.
He proposed that the Thai government allow Cambodian visitors who hold border passes to travel in Trat province. Currently, Cambodian visitors must seek a visa in Phnom Penh if they want to travel to Trat. According to Mr Bun Beav, the improved road increased the number of foreign daily visitors to Koh Kong by 50% in April from an average of 400 a day in March. Koh Kong has six hotels and 12 guesthouses with a total of 780 rooms.

High hopes for new Japanese bank
Friday, 23 May 2008By Chun SophalThe Mekong Times
Maruhan Japan Bank Plc, Cambodia’s 20th commercial bank and the nation’s first Japanese-owned bank, opened Thursday at its headquarters at 83 Norodom Boulevard.

The bank has funds of US$25 million with Maruhan Japan Bank Chairman Han Chang-Woo holding 85 percent and an unspecified Cambodian investor the rest. Maruhan Corporation in Japan has $95 million in capital and operates 229 pachinko parlors in Japan and several bowling alleys, according to its Website. The bank will lend money to firms that want to list shares on the Cambodia stock exchange, which is slated for opening in 2009, according to a November news release.Han Chang-Woo said his bank will offer quality financial services for both local and international enterprises in a wide range of fields. “We think that this bank will attract investment from Japanese companies in the Kingdom of Cambodia in order to make its economy even more dynamic,” he predicted. Maruhan is the 20th commercial bank to open in Cambodia.
World Bank Grants $41 Million for Poverty Plans
By Heng Reaksmey, VOA KhmerPhnom Penh22 May 2008
The World Bank announced Thursday it would provide Cambodia $41.5 million in renewed funding to help it fight poverty for strategies planned from 2007 to 2011.The Cambodia CAS was the first Bank Group CAS produced jointly with the Asian Development Bank, the UK Department of International Development, or DFID, and the UN system, which have all endorsed the extension.Under the Road Asset Management Project (RAMP), the Bank will provide $30 million worth of financial and technical support to help the government perform periodic maintenance on selected sections of the country's road network, as well as establish related systems.The second project, the Land Allocation for Economic and Social Development Project (LASED) will receive a total of $11.5 million in funding from the World Bank, which complements technical cooperation support from the Government of Germany. LASED will support the Government's social land concession program.----------
Cambodian company offers crocodiles by mail
May 21st, 2008DPA
Phnom Penh - As the price of crocodiles for commercial use plummets locally, a Cambodian company has sought out an alternative market niche - mail-order pet crocs.The hybrid saltwater Siamese crocodiles might not make loving pets, but they do possess lovable qualities, Crocodiles Cambodia insisted on its website.For 2,355 dollars, the company mails 18 eggs and an incubator wrapped in brown paper and said more than 90 per cent of its shipments make it through customs around the world.For those who might need a helping hand with their new babies, Siem Reap-based Crocodiles Cambodia provides links to crocsite.com with tips for new owners."No doubt when you think of a crocodile as your pet, you might be wondering if it will work out," crocsite.com said.----------------
HK Garment And Footwear Industry Eyes Vietnam and Cambodia
HONG KONG, May 20 Asia Pulse - A mission of 43 garments and footwear Hong Kong businesses visited Vietnam and Cambodia early this month to seek opportunities for their business in those countries.The Hong Kong Garment and Footwear Partnership mission looked at infrastructure, facilities, services and operational practices of both countries, according to a Hong Kong Trade Development Council (HKTDC) press release.HKTDC Product Promotion Director Ralph Chow said the visit was organized to help Hong Kong garment and shoe manufacturers explore the possibility of relocating their factories to Vietnam and Cambodia.Legent Footwear Director Larry Lau said the delegation's visit to the countries was useful."The mission provided us with opportunities to network with local industry players and officials," Lau said, adding "That will be very helpful when are making our investment decisions."
Cambodian gov't prepares stockpile of rice against rainy season
PHNOM PENH, May 20 (Xinhua) -- The Cambodian government has prepared enough stockpile of rice in case that the price of rice and paddy rice might increase during the just-started rainy season, English-Khmer language newspaper the Mekong Times said Tuesday.The government has bought around 150,000 tons of rice for stockpile with the 10 million U.S. dollars earmarked in March, in order to fend off any negative influence from the rainy season and the fluctuation in the global rice market, Son Kunthor, general director of the Rural Development Bank of Cambodia (RDBC), was quoted as saying."The stockpile is to stabilize the Cambodian rice market, even though price in the global rice market is rising," he said. Cambodia will not suffer from food shortage, he added.Top rice now sells 900 U.S. dollars a ton, while rice of ordinary quality 560 U.S. dollars a ton.
Cambodia plans to open nine hydropower dams by 2019
PHNOM PENH (AFP) — Cambodia will construct controversial Chinese-funded dams as part of a plan to feed its electricity-starved economy, according to government documents obtained Monday by AFP.
The Southeast Asian country will open nine dams of various sizes between 2010 and 2019 to generate 1,942 megawatts of power, according to a government report to parliament obtained by AFP. At least four of the dams will be backed by China.
The new government report said the Kamchay hydropower plant will open in 2010, while Stung Atay hydroelectric dam will open in 2012.
"By 2020, all villages will have electric power. (And) by 2030, at least 70 percent of the families countrywide will have electricity use," the report said.
The government also plans to build nine coal-powered plants between 2011 and 2020, the report said. Cambodia annual consumption of about 125 million kilowatt-hours is easily the lowest in Southeast Asia – in fact, less than one-sixth of Fiji’s.
Cambodia’s outdated, predominantly diesel-fueled power plants only meet 75 percent of the country’s demand. That has resulted in frequent blackouts, with power costs more than double those of neighboring Thailand and Vietnam.
Just 20 percent of Cambodia’s 14 million citizens have access to cheap and reliable electricity, and demand is growing at about 20 percent a year. To address that demand, the Cambodian government has agreed to construct at least four Chinese-funded hydropower projects as part of a $3 billion scheme to boost power output.

Tourism Helps, But How, Expert Asks
By Mean Veasna, VOA Khmer Phnom Penh19 May 2008
Tourism remains an important sector for the development of Cambodia, but officials say they are unsure where the benefits go.“It creates between 250,000 and 300,000 jobs,” Tourism Minister Thong Khon said.Around 2 million visitors came to Cambodia in 2007, he said, bringing in $14 million.Meung Son, president of Eurasia Travel and Tourism Association, said a lot of visitors came, but it is not clear where the $14 million goes.“We do not know exactly how to count the $14-million benefits,” he said, as a guest on “Hello VOA” Thursday. “Tourism is giving jobs to many people, especially in the hotel and restaurant and transport sections.”The expansion of hotels is driving job growth, he said. For every hotel with 100 rooms, 200 people will be hired.
Japanese company finalizes Cambodian deal with Australian miner
Mon, 19 May 2008DPA : Phnom Penh - State-owned Japan Oil, Gas and Metals National Corp has formally committed to invest 4.5 million dollars in a joint venture in Cambodia with the Australian gold-exploration company Southern Gold Ltd, the company said Monday. Adelaide-based Southern Gold said in a statement to the Australian Securities Exchange that the deal would accelerate exploration on three Cambodian gold and base-metal projects in the north-east of Cambodia.The announcement confirmed a March letter of intent. Under the now formal terms, the Japanese firm must spend a minimum of 1 million dollars on the projects over the next 12 months and would make a total investment of 4.5 million dollars over three years to earn a 51-per-cent interest in the three tenements, it said.Southern Gold has previously posted promising gold and base-metal predictions on the three projects from early exploratory research.The Japanese firm said its objectives in the deal were securing a stable supply of oil, natural gas, nonferrous metals and minerals for Japan and, if exploratory results were positive, the equity interest would be transferred to a private-sector Japanese company.Southern Gold's other investors in the project include Chinese resource investor CITIC as well as Australia's Macquarie Bank Ltd.

Poor farmers hit by high cost of fertiliser

PHNOM PENH, 19 May 2008 (IRIN) - The cost of fertiliser has doubled and is affecting up to half of Cambodia’s two million farmers.
"Small farmers need loans so that they can afford fertiliser," said CEDAC NGO, adding that if the price of rice remained high, the farmers could, perhaps, break even.The introduction of better seeds and modern technology could increase their rice yields from two to three tonnes per hectare, Yaing Saing Koma said, adding that increased yields also depended on the fertility of the soil.In Cambodia, 78 percent of the country's 2.5 million hectares of agricultural land is used for rice production and about 6 percent for fruit and vegetables. Another 16 percent is planted with grains, rubber and other crops, agricultural officials said.About 40km west of Phnom Penh, the capital, in Kompong Speu Province's Samraong Tong commune, farmers are spreading cow dung they have collected throughout the year over their rice fields in the hope it will nurture a better harvest.
Por Bien, a 55-year-old farmer, who works a 1.5 hectare piece of land, told IRIN that it was difficult for him to afford even several sacks of fertiliser for his rice field. One bag cost $20 last year, he said, but has now doubled to more than $40.
Cambodia, Vietnam launch direct bus route to Angkor temples
May 16, 2008: Phnom Penh - Vietnamese company Saigon Passenger Transport Company (Sapaco Tourist) is launching a new luxury bus service from the Vietnamese capital Ho Chi Minh direct to Cambodia's northern tourism hub of Siem Reap, a company spokesman said Friday.The new nine-hour, 500-kilometre trip cuts hours off the former route through the Cambodian capital and is just the latest in a stream of Vietnamese tourism investments in Cambodia as its travel industry booms, according to the Tourism Ministry. The new route, which crosses into Cambodia through Vietnam's southern Tay Ninh Province, launches Monday and one-way tickets will cost 24 dollars, Sapaco's spokesman said.
Koh Kong development marks ‘new era’ of Thai-Cambodian links
Thursday, 15 May 2008By Neth PheaktraThe Mekong Times
The long-dilapidated 152-km National Highway 48 is to become a major commercial artery, driving economic cooperation between Cambodia and Thailand, Prime Minister Hun Sen said yesterday.The renovated Koh Kong province highway, including four new concrete bridges, was constructed with a Thai grant. The road was declared officially open yesterday, with Thai and Cambodian VIPs attending yesterday’s inauguration.At the ceremony Hun Sen said the road and the new bridges were a major achievement for both him and the Cambodian government. Cambodian Public Works Minister Sun Chanthol said that National Highway 48 forms part of a national plan to improve cooperation and transport infrastructure between Cambodia and Thailand. As well as easing the movement of goods and spurring industrial investment, the new road would allow Thai tourists to visit the natural attractions of Koh Kong province, he added.Thai Deputy Prime Minister Pong Chay Vong Savat said Highway 48 would be a useful link to and from major Thai economic zones bordering Cambodia. The road will drive the development of the Sihanoukville port, Cambodia’s southern coastal area and zones bordering Vietnam, he predicted.Economic experts said the increase in road infrastructure heralds the expansion of Special Economic Zones.Hun Sen urged the development of the industrial zone in Koh Kong, confirming that Koh Kong will be the “biggest economic zone” based on electricity generation and irrigation projects. “It is Cambodian and Thai policy to seek means to make the border area become a friendly, peaceful and cooperative project,” the premier said, calling the development the start of “a new era.”“In the past, residents living along the borders were poor and scared,” he added. “Now the people who live on the border between Cambodia and Thailand, Vietnam and Laos can stop being poor and scared and get rich instead.”
Thaksin wants to open Koh Kong casino'
Thursday May 15, 2008JAKKRIT WAEWKRAIHONG & THANIDA TANSUBHAPOLBangkok Post
Thaksin Shinawatra is interested in developing another casino and entertainment complex in the Cambodian province of Koh Kong, Cambodian Defence Minister Teah Banh said yesterday.The Cambodian minister said in Koh Kong, opposite Trat, that talks about Mr Thaksin's plan were still unofficial. ''Prime Minister Hun Sen trusted and wanted Mr Thaksin to advise on developing Koh Kong as a special economic zone,'' the general said.Koh Kong now has a casino complex operated by Koh Kong International, a firm owned by Pat Supapa, a senator representing the province and former governor.Gen Teah Banh was speaking as he joined Hun Sen and Cambodian Deputy Prime Minister Sok An in opening Road 48 and four new bridges. The road was built with $32 million dollars in financial assistance from Thailand. The road facilitates the transport of goods from Cambodia to Laem Chabang port in Chon Buri through Trat.
Cambodian Airways to Be Cleaned Up
PHNOM PENH, May 14 (Xinhua) -- The Secretariat of State Civil Aviation (SSCA) of Cambodia has recently announced that it is toughening up on the use of illegal aircraft in an effort to improve the safety of the kingdom's airways, local media reported Wednesday.The SSCA requested airlines, small aircraft companies, private airplane owners, government ministries and local authorities cooperate in its safety push and provide the SSCA any information concerning illegal aircraft operating in Cambodia, the Mekong Times newspaper said.To maintain order and ensure security and safety, aircraft and other flight equipment which are not registered at the SSCA will be prohibited from operating anywhere in the kingdom, Mao Has Vannal, secretary of state of civil aviation, said in the announcement.The SSCA has cooperated with other civil aviation authorities around the world to help ensure the world's airways are safe, the newspaper said.
Hun Sen Touts Road and Bridge ProjectsBy Chun Sakada, VOA Khmer Phnom Penh14 May 2008
Prime Minister Hun Sen boasted Wednesday of creating more than 400 kilometers of roads and many new bridges in the last two weeks alone, during the opening of 152 kilometers of road and four bridges in Koh Kong province. “This is a marvel in the 21st Century, in what the Cambodia government and the people are cooperating with development partners to make for our Cambodians.”“The people have asked him to continue,” Hun Sen said of himself. “After the election, I will take the prime minister post.”
Cambodia Draws Interest of Jim Rogers, Private Equity
By Netty Ismail
May 14 (Bloomberg) -- Leopard Capital and Cambodia Investment & Development Fund are among those planning to put more than $450 million is getting advice from Jim Rogers, who predicted the start of the commodities boom in 1999, and Marc Faber, who forecast Asian assets would decline before the regional financial crisis in 1997. "It's a country that's changed a lot and investors are finally waking up to that and the country has made significant progress," said Douglas Clayton, founder of Leopard Capital, who is based in Phnom Penh and is seeking to raise $100 million. The funds will move money into banks, office buildings, luxury hotels, ports and other projects.Leopard Capital's first planned investment, a housing project in Siem Reap, probably will generate a return of more than 60 percent a year, said Clayton, who moved to Phnom Penh from Bangkok last June.Peter Brimble and Bradley Gordon, Clayton's former partners at Leopard Capital, are starting the $100 million Cambodia Emerald fund this year to invest in tourism, agriculture, financial institutions, infrastructure and real estate.The fund plans to close at least one deal before the end of the year, said Brimble, who's based in Phnom Penh. LR Global Partners in New York and London-based Kazimir Partners are investors in Cambodia Emerald, he said.'Growth Era' More than $6 billion may be invested in Cambodia in the next three years mainly in oil and natural gas, infrastructure projects, real-estate development and agriculture, according to Cambodia Investment, which is run by Frontier Investment & Development Partners. Melbourne-based BHP Billiton Ltd., the world's largest miner, is among companies vying for exploration rights for iron ore, gold and other minerals.Marvin Yeo left his job as a financing specialist at the Manila- based Asian Development Bank this month to set up the fund, which plans to invest as much as $100 million in hospitality, telecommunications, infrastructure, banks and agriculture in the next three months.
New Cambodia National Airline
May 13, 2008By C Mahidanubricks.com
The news of a deal with Indonesian giant Rajawali to develop a new Cambodian national carrier has been greeted with surprise given that the government’s early attempt at such a venture collapsed with massive losses in 2000. However, using the strength and experience of massive conglomerate Rajawali, there are genuine hopes that this new airline venture will be a success. Recent figures show that the country had over 2 million visitors in 2006, 60% of whom travelled by air – creating a large base for the national carrier to tap into.Dubbed the ‘New Thailand’, Cambodia offers the opportunity to experience virgin beaches and undiscovered landscapes to date as yet untainted by tourism development. General tourism numbers in Cambodia are also on the up with a 20% increase reported in 2007 alone.

The main hub of the Cambodian tourist sector seems to be Sihanoukville where the natural terrain and beautiful beaches such as Serendipity Bay are attracting large numbers of foreign visitors eager to be one of the first to experience South East Asia’s newest hotspot.

India plans to invest in airport and cable car for Preah Vihear Temple
Friday, May 9, 2008The Mekong TimesTranslated from Khmer by Socheata
Hang Sot, director of the Preah Vihear National Authority (PVNA), indicated on Thursday that an Indian company wants to invest in an airport and an electric cable car system in the Preah Vihear Temple region which is a major tourist zone in the north of the country, along the Thai border.In an interview, Professor Hang Sot indicated that India’s Skill Company, which has previously successfully invested in cable car in Vietnam, and it has completed a project feasibility study to find the location for the construction last month. Hang Sot said that the company plans to build an airport on a 2-km-by-5-km field, located 32 km from the temple, the road system for the cable car will be 2,400-meter long, located near the ancient stair steps, and the road will be enlarged from 8 to 10-meter wide.Hang Sot said: “We don’t know as yet when the project will start or how much it will cost, but we hope that it will see the daylight if the results from the discussion between the company representatives and vice-prime minister Sok An are positive.According to an anonymous official close to this investment plan, the Skill Company plans to spend $600 million to develop the temple area. Regarding this investment, Ho Vandy, director of the Cambodia Association of Travel Agents, welcomed the project. “We support this development plan, but we must know how this development will affect our temple. We welcome it if this plan really exists,” Ho Vandy said.Currently, there is no strong development to attract tourists to come and visit this temple located near the Thai border, due to a lack of proper infrastructure in this region. Regarding this latter issue, Hang Sot said: “Right now, we receive only 300 to 400 visitors per day who come to visit Preah Vihear Temple, and the majority of them come from Thailand. However, in the future, i.e. after the construction of the infrastructure, we hope that this region will attract a large number of tourists, and that the majority of them will come from inside Cambodia.”Hang Sot added: “I trust that the number of tourists will increase by six folds in Preah Vihear, at the end of the development plan, in particular after the construction of road infrastructure.”
Hun Sen Applauds Korean InvestmentBy Mean Veasna, VOA Khmer Original report from Phnom Penh06 May 2008
More than a decade of strong ties between Cambodia and South Korean have meant a boon to economic development, Prime Minister Hun Sen said Tuesday.“Now, after 11 years, diplomatic relations with the Republic of Korea are remarkably developed,” he said, speaking at the inauguration of a construction project on National Road 3, which is being financed through a Korean grant.South Korea is at the forefront of at least eight sectors, he said, including investment and tourism. He also pointed to the construction of Gold Tower 42, a proposed skyscraper scheduled to be constructed in Phnom Penh by 2011, as a sign of strong investment.“Soon, construction of a building of 42 floors will be invested by the Koreans, and there will be another 55 floors,” he said.South Korea has invested in building construction, information technology, aviation, tourism and textile. Investment worth $152 million came for the country in 2007, according to the Council for the Development of Cambodia.
PM: Northeast region will become Cambodia’s fourth economic ‘pole’
Wednesday, 30 April 2008By Neth PheaktraThe Mekong Times
Prime Minister Hun Sen said yesterday that by 2015 the northeast of the country will become the nation’s fourth focal point for industry and commerce after traditional economic powerhouses Phnom Penh, Siem Reap and Sihanoukville.“The areas of Stung Treng, Ratanakiri, and Mondulkiri provinces and other parts of Kratie and Preah Vihear provinces will become the fourth economic ‘pole’,” he said yesterday during the inauguration of National Highway 7 and Sekong Bridge in Stung Treng province.The vast potential of natural resources in the Kingdom will transform the livelihoods of the ethnic minorities currently living there, said the premier. “For example, hydroelectricity is not only able to supply power to local markets, but also neighboring countries,” he said. “The northeast region is rich of mine deposits which can be exploited …. This is also a big tourist destination for Cambodia.”Kang Chandararoth, director of the Cambodia Institute of Development Studies, said the establishment of the northeast regions as an economic “pole” would benefit the country’s economic development.“Many economic poles would balance the development; labor forces would not be concentrated at only one place,” he said. “If there is no distribution of the investment capital and labor forces, economic instability could occur and hinder development.”“The more economic poles that are formed, the better it is for the nation’s free market economy,” Kang Chandararoth continued, adding that it will offer more options to potential investors.
After Senegal, other African countries are eying Cambodia’s “broken rice”
28 April 2008By Ka-setAfrican countries are eying Cambodia’s broken rice, Cham Prasidh, the minister of Commerce, declared on Monday 28 April 2008. During an official visit to Senegal last week, the authorities of this West African country had ordered 6,000 tons of broken rice. A delegation from Senegal would soon visit the kingdom to check the quality of the rice and to start negotiations, Cham Prasidh indicated.“Today, we have an agreement with Senegal. Suddenly, its neighbor, Gambia, asks us also to provide broken rice! I told Gambia to wait so that we can evaluate the quantity of rice available for export.”Since then, Cham Prasidh assured, phone calls from African countries kept on ringing him with the same request.Broken rice, the residue from successive manipulations and sorting between broken and intact rice grains, is not what Cambodian people like. Thousands of tons of this rice are waiting for buyers, otherwise they will be use to feed animals, Cham Prasidh explained. Selling this broken rice (for export) will bring so much more (revenue).


Southern Gold on the verge of 'major discovery' in Cambodia
Australian mining firm Southern Gold Ltd is on the cusp of a large gold discovery in eastern Cambodia, according to data obtained in recent geological surveys and test drillings.
“Based on what the company knows about Cambodia, Southern Gold believes that it is well-positioned to make a major gold discovery in Cambodia,” said Stephen Biggins, managing director of Southern Gold.
The company in March announced it had obtained readings of 3.45 grams of gold per tonne for one meter at a depth of 74 meters in test drillings at its Snoul concession in Kratie province. According to Biggins, further tests have confirmed the earlier findings. However, he did not say exactly where the company expected its big gold find to occur.
“We are collecting information on a number of fronts, which include large airborne geophysical surveys, geological mapping, drilling and detailed soil surveys,” he said.“And we believe we will make a major discovery very soon.” Southern Gold has the right to eight concessions in Kratie, Mondulkiri and Ratanakkiri.

Rubber firm eyes 1,500ha in Kratie
Phu Rieng-Kratie Rubber Joint Stock Company has set a target of planting 1,000 to 1,500 hectares of rubber in Kratie province this year, according to Vietnamese newspaper Nhan Dan. The company was established last year with three founding shareholders – the Phu Rieng Rubber Company, the Vietnam Rubber Industrial Group and the Song Da Corporation – with the aim of planting rubber trees in Cambodia. In 2007, the company planted 200 hectares of rubber trees in Kratie’s Snoul district. The company is building 150 houses for their Cambodian workers and has donated $27,000 to build a school for the locality and upgrade local pagodas, the Nhan Dan said.

MobilityOne signs deal in Cambodia
Digital payment services provider MobilityOne Ltd has secured its first contract in Cambodia through a deal with Telekom Malaysia International, as well as two other deals in Asia as it continues its expansion in the region, Thomson Financial reported April 14. The company announced it was also expanding into Indonesia through a deal with Finnet and has been appointed as a third-party acquirer for a payment scheme run by Malaysian Electronic Payment System. Financial terms of the deals were not disclosed.
Phnom Penh inks win city agreement
Officials of Phnom Penh and Iloilo City in the Philippines have inked a “twinning agreement” in a bid to strengthen promotion of improved sanitation and environmental health in the Cambodian capital. A letter of intent was signed by Mann Chhoeurn, deputy governor of Phnom Penh municipality, during an April 4-5 visit to Iloilo by Phnom Penh city exectutives, the Philippines News Agency reported. The agreement will allow Cambodian officials to learn first hand about Iloilo’s efforts to improve wastewater treatment and sanitation campaigns through social marketing outreach programs and infrastructure development.


Japan sinks funds into S'ville SEZ
Japan has signed a 3.65-billion-yen ($35.92-million) loan agreement with the Cambodian government for the design and development of a new 70-hectare special economic zone (SEZ) at Sihanoukville Port.

The agreement, signed in Phnom Penh on March 31 between the government and the Japan Bank for International Cooperation (JBIC), a Japanese government financing institution, will help fund new roads, sewage facilities and water supply for the SEZ, which will be Cambodia’s 19th such investment park.

“[SEZs] definitely attract more foreign investors,” said Carie Phou, marketing manager of Phnom Penh Special Economic Zone Ltd, adding that the zone in the capital had already lured firms from Japan, South Korea, Taiwan, Singapore and Malaysia with its tax concessions and streamlined permit application process.

“It’s a friendly investment environment,” she said.

Hiroshi Suzuki, JBIC advisory economist to Senior Minister of Economy and Finance Keat Chhon, said he believes the new SEZ will attract more foreign investors.

We think that this new agreement could contribute to attracting Japanese investment to this country.

“The first benefit is infrastructure. In Cambodia, power and water and such kinds of infrastructure are not sufficient. But within the SEZ, foreign investors will enjoy good conditions,” he said.

Like Cambodia’s pre-existing SEZs, the Sihanoukville SEZ Development Project will also offer investors financial benefits including simplified customs control, low service charges, exemptions from profit tax and import-export duties, and protection against labor unrest.

Suzuki said he is expecting the new SEZ to increase Japanese foreign direct investment (FDI) in Cambodia.

“Of course, the first option in the agreement is to assist the development of Cambodia,” he said. “However, at the same time, one important challenge is how to attract FDI… and we think that this new agreement could contribute to attracting Japanese investment to this country.”

According to the Council for the Development of Cambodia, Japan’s FDI between 1994 and 2007 amounted to $135 million, just a fraction of the amount invested over the same period by China ($1,761 million) and South Korea ($1,509 million).

“The necessary infrastructure and facilities will … create a better investment climate for potential Japanese investors,” a Japanese Embassy spokesman said by email.

The spokesman added that the Embassy expects the SEZ to create an estimated 15,000 jobs for Cambodians upon its completion.


BHP to assess Mondulkiri mining venture
Australian mining giant BHP Billiton will soon begin an initial evaluation of its joint-venture Mondulkiri exploration licence in eastern Cambodia to decide if it will start mining for bauxite in the region.
It will also determine the potential for an alumina refinery in the province.
In October 2006, Japan’s Mitsubishi Corporation and BHP Billiton signed a mineral exploration agreement with the Cambodian government to explore for bauxite in Mondulkiri. Most of the exploration sites are in protected forests.
The agreement requires a detailed evaluation of the Mondulkiri exploration licences to determine resource size and quality, environmental and community issues, risks from unexploded ordinances and the appropriate mining, processing and transport options.
Following the studies, which were originally said to be due in the first half of 2008, the partners have the exclusive right to negotiate a mining agreement with the government to develop the project. BHP Billiton and Mitsubishi previously partnered on the Mozal aluminium smelter in Mozambique.
A BHP Billiton spokesman told the Post on April 16 that the initial evaluation will commence this year.
“It is not known exactly how long the initial exploration period will last. If positive, further exploration evaluation can be expected to last up to an additional two years,” he said.
“A team consisting of exploration specialists and ERW (explosive remnants of war) clearance specialists will be based in Mondulkiri during the period, and they will be supported by community and environmental specialists.
“There is no certainty that a bauxite mine will be developed. A bauxite mine requires a large investment, not just in the mine but also in associated infrastructure and for transport of the bauxite.”
The spokesman continued: “This (agreement) does not provide us with a mining license – only a license to explore for bauxite.
“The whole period of exploration and assessment is likely to take at least five years. If a bauxite mine is eventually developed, BHP Billiton would be the operator of the project, but it’s still very early days.”
Commerce Minister Cham Prasidh accompanied Hun Sen on the six-day tour to Australia and on his return, during a press conference at Phnom Penh International Airport, Cham Prasidh said the land set aside for exploration could be up to 1 million hectares.
But during the same week Forbes magazine reported that the size of the exploration area was not revealed.
In December 2007, Prasidh said BHP Billiton would invest between $500 million and $1 billion in exploration in the Mondulkiri region, and Mitsubishi might invest an additional $3 billion if mining begins.
A report by the Australian Embassy said BHP Billiton is expected to invest $1.6-2.0 billion.

ASEAN signs off on Japan trade pact
Japan and the Association of Southeast Asian Nations have signed a deal to tear down trade barriers between the world’s second-largest economy (China) and the 10-member bloc, which includes Cambodia. The deal, which is set to come into effect later this year, was formally signed on April 14 by Malaysia, the last of the 10 ASEAN members to sign off. Under the pact, which was finalized in November, about 90 percent of trade between Asia’s largest economy and the ASEAN bloc will be tariff-free within 10 years. (AFP)


Cambodia to get national airline
Friday, 18 April 2008The Cambodian government will launch a national flag carrier in a joint venture with Indonesia’s Rajawali Group, the conglomerate announced in Jakarta on April 10. The two sides will set up a joint venture with capital of up to $50 million, with Cambodia’s government owning 51 percent of the shares, Rajawali said in a statement. “With a national flag carrier, we envisage our economy and tourism industry will grow rapidly,” Cambodia’s Deputy Prime Minister Sok An said in the statement. More than 20 foreign airlines, including Japan Airlines and Dubai-based airline Emirates, currently operate direct flights to the Kingdom. (AFP)
Cambodia hopes to export 8 million tons of rice by 2015
The Mekong times
PHNOM PENH (Xinhua): Cambodia expects to be able to export eight million tonnes of rice per year by 2015, Khmer-English language newspaper the Mekong Times on Friday quoted Minister of Agriculture and Fisheries Chan Sarun as saying.
"We will encourage farmers to crop twice or three times a year and further strengthen irrigation systems in order to increase rice production," the minister told an exhibition of natural agricultural products held on Thursday in Kampong Chhnang province, stressing that the country has three million hectares of agricultural land.
Yang Saing Koma, executive director of the Cambodian Center for Study and Development in Agriculture, agreed that the harvest could be boosted.
"Cambodia has vast tracts of land and current rice output is still low. We believe that Cambodia can achieve the goal, " he said, adding that the government must invest more in the agricultural sector so that farmers have resources and techniques to increase rice yields.
In fact, he said, the kingdom could produce up to 10 million tonnes of rice in the next four or five years.
According to official statistics, Cambodia had a surplus of over two million tonnes of paddy rice from a total harvest of 6.72 million in 2007. High-quality rice sells around one U.S. dollar a kilogram currently in Cambodia.
Last month, the government imposed a ban on rice export and released its stockpile to the market to curb spiraling rice prices.
The inflation occurred reportedly as a result of world food shortage and over purchase of Cambodian rice by Vietnamese and Thai businessmen.

High-rollers told to prepare for taxes on luxury goods
Thursday, 24 April 2008By Craig GuthrieThe Mekong Times
Taxes on basic foodstuffs may be lowered at the expense of luxury goods such as high-end cars, cigarettes, alcohol and cosmetics, Hun Sen warned yesterday. He said it was an option the government is considering to tackle the current food inflation crisis.“Taxes on basic foodstuffs like rice will be dropped, but it will be raised on cars, make-up and drinks like Hennessy, Johnnie Walker, and [wine like] Randonal,” said Prime Minister Hun Sen, adding that, as for Randonal, he just knew the name and not the taste.But Hun Sen said he will continue to smoke even if higher tobacco taxes are imposed, he said, eagerly brandishing a pack of 555s. Despite widespread criticism and international conventions the premier said he refuses to give up the habit.Also in the firing line will be expensive cars. “Some government officials like to buy Landcruisers, Lexus and Mercedes. If purchases are taxed at just 1 percent, revenues would increase,” he said, adding that he thought the rich can afford it.
Cambodia grants sale of 6,000 tons broken rice to Senegal
PHNOM PENH, April 23 (Xinhua) -- The Cambodian government has agreed to sell 6,000 tons of broken rice to Senegal as an urgent case, Prime Minister Hun Sen said Wednesday.Senegal required buying the broken rice products from Cambodia in urgent case, Hun Sen said while addressing the 13th Government-Private Sector Forum held in Phnom Penh.Cambodian Commerce Minister Cham Prasidh is visiting Dakar, capital of Senegal, to meet with the Senegalese side, the prime minister said. "They understood that we banned the exports of rice products. Therefore they required to buy broken rice only," he added.Recently, Hun Sen banned the rice exports but later lifted the ban for three provinces bordering Vietnam.Rice farmers at the provinces are happy to sell their products with high price to merchants, he said.The price of milled rice has grown from 0.5 dollar to nearly one dollar per kilo in Cambodia.
Road links Binh Phuoc, Kampong Cham provinces
23/04/2008VNA (Hanoi)
A road connecting Vietnam’s southern Binh Phuoc Province and Cambodia’s Kongpong Cham Province opened to traffic on April 22.The road is part of a 32-km transport system connecting Cambodia’s Highway No. 7 and Binh Phuoc Province.The 7.2 billion VND system also includes a bridge built by Binh Phuoc province across Tonle Cham river to link the two province
Work to start on Lao-Cambodian power line
Mon, April 21, 2008Asia News Network/Vientiane Times
VIENTIANE--The installation of 115kV transmission lines between Laos and Cambodia will begin by the end of this year, giving Laos a new electricity export market, said a project official.The power lines will run for 26km, from Hat village in Khong district, Champassak province, to the border, where they will connect with a 54km line from Cambodia."The total cost of the Ban Hat Lao-Cambodian 115kV Transmission Lines and Ban Hat Substation Extension Project will be about 23 billion kip (US$2.6 million)," said Project Manager Khamsing Phosalath on Thursday. Funding was loaned to Electricite du Laos by the government for the installation, as part of grant aid received from the World Bank."The installation is expected to be completed by the end of next year," said Deputy Minister of Energy and Mines Somboun Rasasombath at the annual meeting of the energy and mining sectors recently in Vientiane .The project is now seeking tenders for the work and has been advertising for bidders for the last two months."A few companies are interested and we will make an announcement of the winning bidder in June," Mr Khamsing said.The project will allow the sale of hydropower from Champassak province to Siem Pang district in Stung Treng province, Cambodia ."Transmission is expected to begin by 2010. The initial supply will be about 5MW but it may be increased as needed," Mr Somboun said.Laos and Cambodia signed a memorandum of understanding (MoU) on energy purchase in December last year. This was the initial move for the sale of Lao electricity to Cambodia , and an important step in the cooperation of the two energy sectors.But the two governments have yet to agree on how many megawatts Laos will sell to Cambodia and over what period of time.Currently Laos has MoUs to provide 5,000MW to Thailand until 2015, and a further 2,000MW after this date until 2020. Vietnam has also agreed to purchase 5,000MW of electricity from now until 2020.Laos has a combined energy production capacity of about 670MW from 11 major and 40 medium-sized hydropower plants, which generate power for both domestic consumption and export.By 2020, the Lao energy sector hopes to have an installation capacity of 30,000MW from dams currently under construction or planned along the Mekong River and its tributaries. This goal may be achieved now that more investors are conducting studies at several places in the country.This is fundamental to the Lao government's intention, announced at the 10 th Asean Summit in 2004 in Vientiane , to become the 'battery of the region'.
S.Korean Co. to build "TaSen road" to TaKhmao
S.Korean Company to build a new road linking Monivong Blvd. to TakhmaoFriday, April 18, 2008Everyday.com.khTranslated from Khmer by Socheata
The owner of a South Korean construction company told Hun Sen that his company plans to build a new road linking Monivong Blvd. to Takhmao city, Kandal province. During a meeting held in the afternoon of 12 April, at Hun Sen’s mansion in Takhmao city, Sin Jang Jeol, the S.Korean construction company owner, asked for Hun Sen’s support for his plan to build this new road which will be christened “Samdach Akak Moha Sena Bat Dey Dek Cho Hun Sen Road.” The new road will measure 1,872-meter-long, and it will link Monivong Boulevard to Takhmao city. The road will cross a 400-meter bridge, and will cost $85 million to build. Hun Sen told the owner of the S.Korean company to cooperate with the city of Phnom Penh and other institutions involved so that this plan will come to fruition.

Lockheed Martin to launch Vietnam's first communications satellite, VINASAT-1
Lockheed Martin to launch new communications satellite 17th April 2008 By Staff WriterComputer Business Review
Lockheed Martin has announced that the VINASAT-1 communications satellite, designed and built by the company for Vietnam Posts and Telecommunications Group is ready for launch on April 18, 2008, aboard an Ariane 5-ECA launch vehicle provided by Arianespace.According to Lockheed Martin, the VINASAT-1 is based on its A2100A spacecraft platform and features 12 operating Ku Band transponders providing coverage over Vietnam, Laos, Cambodia, Thailand and part of Myanmar. The spacecraft also features eight C-Band primary transponders providing coverage over Vietnam, Cambodia, Laos, Southeast Asia, India, Japan and Australia. VINASAT-1 is designed for a minimum service life of 15 years and will be located at orbital slot 132 degrees east.The turnkey satellite system is expected to improve telecommunications in Vietnam by transmitting radio, television and telephone communications to all corners of the country. In addition, VINASAT-1 will improve communication networks infrastructure.
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Japanese Firm Seeking Area IT Talent
A Japanese information technology company is seeking to recruit Cambodian university graduates to work for its Singapore branch as computer engineers, programmers and Web site designers, according to a company official.
Experts said this week that it was the first they had heard of a search for skilled Cambodian labor but that head-hunting for bright local students with IT skills is likely to grow.
“The intent is to get all the good people in Phnom Penh to work for us in Singapore,” said Wilson Sim, managing director of the Singapore branch of ISF net during a two-hour recruiting session in Phnom Penh earlier this month.
Offering salaries of at least $1,750 a month, ISFnet hopes to identify up to 25 students who will spend six months in Singapore becoming certified to work on computer operating systems before being outsourced by the firm to provide IT support to companies in need.
ISF net started in 2000 in Tokyo and has 1,643 employees in Japan, 100 in Korea and 40 in China. ISF net is recruiting from all the Asean nations in order to boost ISFnet’s Singapore office from five to 30 employees by mid-2009.
Shin Corp's to spend $90 million to develop 3G broadband cellular sevice in Cambodia and Laos Shin April 17, 2008Usanee MongkolpornThe Nation (Thailand)
Thaicom, formerly Shin Satellite, will spend about US$90 million (Bt2.8 billion) this year on further developing its 3G broadband cellular service in Laos and Cambodia.Executive chairman Dumrong Kasemseth said yesterday that $60 million would go to Cambodia Shinawatra and $30 million to Lao Telecom. Both are under Shenington Investments, Thaicom's telecom holding company.Cambodia Shinawatra already offers 3G, while Lao Telecom will kick off its third-generation service this year. They have a combined 1.5 million subscribers for the existing 2G cellular service.Shenington is a 51:49 joint venture of Thaicom and Asia Mobile Holdings.Dumrong said Thaicom might expand its mobile-phone service to more countries after Laos and Cambodia but declined to elaborate. Besides Shenington, Thaicom's three other core businesses are conventional satellite broadcasting via Thaicoms 1, 2 and 5, wireless Internet broadband service via its iPSTAR satellite, and wired Internet service via CS Loxinfo.Last year Shenington generated revenue of about $150 million. The three broadcasting satellites contributed $100 million, iPSTAR $51 million and CS Loxinfo $50 million, Dumrong said.Revenue growth this year will be 30 per cent for Shenington, 100 per cent for iPSTAR, 10 per cent for the Thaicom satellites and 10 per cent for CS Loxinfo, he said.ShinSat shareholders approved the name change to Thaicom last week. The move reflects its attempt to stay clear from politics.It has applied to the Stock Exchange of Thailand to switch its stock symbol from SATTEL to THCOM.Shin Corp, founded by the family of ousted prime minister Thaksin Shinawatra, owns 41.27 per cent of Thaicom.Thaicom is considering launching Thaicom 6 to replace Thaicom 1, which reaches the end of its life expectancy in the middle of next year, but might need an investment partner if it decides to go ahead with the project, Dumrong said.Thaicom's consolidated revenue rocketed up 42.6 per cent to Bt12.8 billion last year, mainly on the extraordinary gain of Bt5.13 billion from its sale of 49 per cent of Shenington to Asia Mobile Holdings in July.It posted a net profit of Bt3.04 billion versus a loss of Bt46 million in 2006. It also booked a foreign-exchange gain of Bt1.05 billion from the baht's appreciation.Recently Thaicom projected iPSTAR terminal sales of 100,000 units this year on a conservative basis, of which 30,000 were expected last quarter. Last year it sold 38,011 iPSTAR terminals, bringing the cumulative total to 104,067.This year it will deliver 11,000 iPSTAR terminals to TOT, its distributor for Thailand, after supplying the first lot of 6,000 to the state telecom enterprise last year, in line with their 2007 contract.
Vietnam look to develop power nuclear plant
Scientist says nuclear power key to achieving national development17/04/2008Viet Nam News (Hanoi)
VietNamNet Bridge – Deputy director Le Van Hong of the Viet Nam Atomic Energy Commission (VAEC) spoke with Viet Nam News about the RCA meeting results and the country’s nuclear development potential.Would you discuss the outcome of the 30th meeting of RCA [Asia-Pacific Regional Co-operative Agreement on Nuclear Science] representatives?All members reviewed resolutions issued at the 29th meeting of RCA representatives and the implementation progress for the short and medium term. Specifically, we reviewed the implementation of 14 projects supported by the International Atomic Energy Agency (IAEA) and approved last year in Australia.We also discussed action plans for 2008 and the 2009-11 period. We had to consider how to work with other international organisations in realising these plans. This year, we also began six new projects.We prioritised issues like food safety and nutrition, healthcare, industrial development, atomic energy and safety, and environmental protection.Each year, all members choose a country to act as a project co-ordinator which will work out a formulation for other member countries to follow. This year, Vietnam was selected to be the co-ordinator.How has Vietnam’s participation in the RCA helped develop the country’s nuclear energy sector and other economic sectors over the past year?Vietnam has been an official member of the RCA since 1981. From the very beginning, we have made great efforts to promote the applications of radioactive isotopes in agriculture, industry, medical treatment and the environment.Since 1996, we have been participating in RCA’s nuclear power-related projects. Through RCA projects, Vietnam has received valuable and efficient support from IAEA in providing equipment and training courses to develop nuclear manpower in various areas related to atomic energy.In the health sector, we use radioactive isotopes to discover new diseases and more effectively treat cancer. For example, in the 108 Hospital, they are using the "cyber knife", the most modern radioactive isotope equipment to treat the disease.In agriculture, we can create new varieties of rice, which are adaptable to environmental changes, and increase overall productivity.In addition to sharing information and experiences on nuclear energy application, we can contribute to solving problems, like environmental pollution, that require widespread joint efforts.What do you think about the potential of Vietnam’s atomic energy development?Currently, the country still produces electricity by using coal and petroleum or we import electricity from other countries such as Laos, Cambodia and China. But with prices of such materials increasing across the globe, imported electricity should not be depended upon.On the other hand, it is difficult to develop renewable sources like wind and solar energy because their usage depends on climactic and seasonal conditions, and we lack spaces large enough to collect solar energy.Thus, with demand estimated at 300bil kWh by 2020, it is necessary to develop nuclear power.Initial research on the first nuclear plant project has been approved by the Government but is still waiting for National Assembly approval.If approved by the NA, we expect that the plant will be built in 2015 and the first reactor operational by 2020.In 2006, the Prime Minister approved the Long-term Strategy for Peaceful Utilisation of Atomic Energy up to 2020, and in July last year, he approved the Action Plan for the implementation of the Long-term Strategy, defining tasks and objectives in atomic energy development for peaceful, security purposes.What difficulties does the country face in developing the nuclear energy sector?The nuclear energy sector is a high-tech area and is very sensitive in terms of politics and safety. Thus, its development requires comprehensive preparation.We need to have a completely developed relevant legal infrastructure.Previously, we have only had the Ordinance on Radiation Safety and Control, which does not mention nuclear energy application.The Law on Nuclear Energy is being drafted and will be submitted to the NA in May. We expect legal infrastructure to be complete by 2014.Other countries have spent a lot of money on developing the sector but we cannot do the same as we must still focus on other in-need sectors. Thus technical infrastructure is still poor.We need research institutes and laboratories which have the capacity to fully assess nuclear power projects.Another serious problem is that the country lacks human resources for the sector. Youth are now realising their breadth of opportunity and are not pursuing the nuclear sector in the way of prior generations.Therefore, we need to establish professionals and experts in our country capable of using technology from developed countries. Then we can begin producing our own equipment and limit importation.How can Vietnamese people benefit from the country’s first nuclear power plant?Vietnam can generate only 50-60bil kWh per year right now. But, as estimated, the country will need about 300bil KWh by 2020.With four reactors, each with a capacity of 1,000MW, the nuclear power plant can turn out 28bil kWh, helping to satisfy electricity demand.For the long-term, people can enjoy lower electricity prices thanks to nuclear power. This is because, in the future, along with limited coal and petroleum supplies, power production and importation costs will increase. However, nuclear material costs won’t rise as rapidly.Many people are still opposed to the nuclear power plant, saying that renewable sources like wind and solar energy should be developed instead. What do you think?The opposition is understandable. Whenever people think about nuclear energy, they usually see it as very dangerous. And the risks of nuclear energy are real. People are obsessed with the explosion of the Chernobyl nuclear plant in 1986, which caused severe damage to millions of people. But the Chernobyl plant was an old model of the ex-Soviet republic with low safety standards. European countries now do not use such models.Moreover, Vietnamese people have thought for a long time that the country has rich natural resources. They think resources such as coal, petroleum and water are always available, so why use nuclear energy?The Greenpeace International movement against nuclear power has also affected Vietnamese people. The organisation worries about nuclear waste and the proliferation of nuclear weapons.However, a nuclear power plant is the solution for the country’s electricity shortages. Building the plant shows the country’s long term vision in satisfying the increasing future demands of the people.
US House Approves Measure Expanding Debt ReliefBy Dan Robinson, VOACapitol Hill16 April 2008
The House of Representatives has approved by a vote of 285 to 132 a measure supporting forgiveness of debt owed by more of the world's poorest countries. VOA correspondent Dan Robinson reports, the legislation is aimed at expanding eligibility, without forcing countries to accept potentially destabilizing economic conditions from lending institutions.First introduced in 2007, the measure would begin a process that could lead to total debt elimination for another 24 of the world's poorest countries.While not specifically authorizing debt cancellation, it instructs the U.S. government to negotiate with the World Bank and International Monetary Fund on debt owed by poor nations struggling to meet Millennium Development Goals.Set by world leaders in the year 2000, these goals include significant reductions in poverty, hunger, and child and maternal mortality, and reversing the spread of HIV/AIDS, malaria and other diseases by 2015.Under the House measure, nine nations owing billions of dollars to the World Bank, IMF, and other institutions, would be eligible immediately for relief: Cape Verde, Kenya, Lesotho, Georgia, Moldova, Mongolia, Samoa, Vanuatu, and Vietnam.Fifteen others would be eligible based on further reforms, including Zimbabwe, Angola, Djibouti, and Nigeria in Africa, and Bangladesh, Burma, and Cambodia in Asia. Lawmakers such as Vermont Democrat Peter Welch stressed that the measure is not a "blank check" and contains conditions countries must attempt to meet:"Transparent and effective budget processes, do not support terrorism, cooperate in international counter-narcotic efforts, and uphold human rights standards," said Peter Welch.In addition, funds that become available as a result of loan forgiveness must be used for anti-poverty programs, and governments would have to publish annual reports on how money is spent.Democrats and Republicans also voiced support for a provision designed to shield poor countries from economically stressful conditions that can be imposed by financial institutions.Here are Massachusetts Democrat Barney Frank, and California Republican Dana Rohrabacher:FRANK: "There will be no possibility of using debt relief as a lever for outsiders to impose on these democratic societies choices that ought to be made in the societies."ROHRABACHER: "People who establish democratic government and replace dictatorships should not be forced to bear the burden of having massive debt. This is what keeps these countries down even once they have replaced their dictators."More than 20 countries have had nearly all of their debts to international lending institutions forgiven under the Heavily Indebted Poor Country program of the IMF, while others have struggled to meet conditions under that program.The White House has withheld support from the House debt legislation, saying that providing relief to countries already capable of servicing their debt would send the wrong message.A similar measure is working its way through committees in the U.S. Senate.The House measure was supported by more than 80 development, human rights and religious organizations critical of international lending practices in the developing world, while opponents assert it would end up benefiting corrupt leaders.
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New Year: a Time for Local Tourism
By Mean Veasna, VOA Khmer Phnom Penh15 April 2008
Local tourism increases around Khmer New Year, the most popular time of the year for Cambodians to move around the country, a trend that is likely to increase this year, a top official said.“We expect that Cambodian people moved much more compared to last year,” Tourism Minister Thong Khon told VOA Khmer. The increase was “due to good living conditions of Cambodian people and to good infrastructure.”The exact number of local tourists moving throughout the country is unknown, but officials estimate at least 5 million local tourists travel across the country during the country’s three main festivals: New Year, the Water Festival, and Pchum Ben.Most of the travel comes at New Year, and this year has seen more, officials said.“Of course they move a lot, because they get money from selling land and because we have a good infrastructure,” said Meung Son, president of Eurasie Travel.
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Monday, April 14, 2008VNA (Hanoi)
The Ministry of Planning and Investment has issued an investment license to Can Tho Cement Company to establish a joint venture to mine laterite ore in Cambodia.Can Tho Cement and Cambodian company Omsaura will form a joint venture with a total capital of US$900,000.Can Tho Cement will contribute $459,000.The planned joint venture will start construction next month and begin exploiting laterite, a high-iron clay, two months later.The project, to expire in 49 years, will have an estimated output of 50,000 tons of ore per month.It marks the first mineral exploitation cooperation project between the Mekong Delta’s Can Tho City and Cambodia.


Southern Gold predicts major discovery in Cambodia
Southern Gold operations
Australian mining firm Southern Gold announced in Singapore on Friday that it was on the verge of a “major gold discovery” in Cambodia, prompting a 40 % increase in the company’s share price amid heavy trading. Southern Gold last month announced results of 3.45 grams of gold per ton over 1 meter at a depth of 74 meters in Kratie province. However, Southern Gold Managing Director Stephen Biggins said that his firm is now confident of something far better.
“We are on the verge of making a major gold discovery,” Biggins told the 4th Asia Mining Congress, a natural resources investor conference in Singapore, on Friday, “In some places, there is undrilled gold mineralization literally protruding out of the ground and this continues to add to our confidence in an imminent large discovery,” he added. The company is currently exploring for gold
14 Apr 2008
Asian equity market and resources investors have been told Adelaide-based explorer Southern Gold Ltd is on the verge of making a “major” gold discovery in Cambodia.Addressing the peak Asia Mining Congress in Singapore, Southern Gold’s Managing Director, Mr Stephen Biggins, said recent investments in the Company’s Cambodian campaigns had enabled it to “significantly” step up exploration activities at three of its eight gold projects in the country’s northeast. “We have now cemented our early mover advantage in Cambodia, and are on the verge of making a major gold discovery,” Mr Biggins told the mining and investment Congress.Southern Gold is the sole or majority owner of eight Cambodian tenements, covering a total of 1,800 km2 in the highly prospective northeast region, where artisanal mining has long pointed to extensive high-grade gold and base metals mineralisation.Exploration licences have been granted for three of Southern Gold’s wholly-owned tenements, with applications pending on a further four.The Company’s first drilling at its Snoul concession, completed in December last year, intersected gold in three holes. Detailed geochemistry and geological programs are currently being undertaken.“All eight tenements suggest the potential for high-grade gold finds, with widespread mineralised intrusive bodies and highly anomalous regional soils,” Mr Biggins said in Singapore.“In some places, there is undrilled gold mineralisation literally protruding out of the ground and this continues to add to our confidence of an imminent large discovery.”Last month, the Company’s exploration program received a fillip when the Japanese Government-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) agreed to invest US$4.5 million over three years in exploration at the Australian explorer’s Phnum Khtong, Preak Khlong and O’Kthung tenements.Through the agreement, JOGMEC joined a list of major Southern Gold shareholders that includes Chinese resource investor, CITIC and Australia’s Macquarie Bank.“The Joint Venture with JOGMEC has enabled us to significantly bring forward our exploration schedules – and potential discoveries – in Cambodia, which we regard as one of the world’s great mining frontiers,” said Mr Biggins.“As well as enabling us to commit to much larger surveying and drilling budgets, these investments also provide substantial potential for us to acquire additional projects."
Vietnamese company targets to plant 1,500 hectares of rubber in CambodiaApril 12, 2008Nhan Dan (Hanoi)
Nhan Dan – Phu Rieng–Kratie Rubber Joint Stock Company has set a target of planting 1,000 to 1,500 hectares of rubber in Kratie province of Cambodia this year.The company was established last year with three founding shareholders: the Phu Rieng Rubber Company, the Vietnam Rubber Industrial Group and the Song Da Corporation with the aim of promoting a project to plant rubber trees in Cambodia.Right in 2007, the company planted 200 hectares of rubber trees in Snoul district.The province governor Kham Phoeun said he appreciated the project to plant rubber trees by Phu Rieng-Kratie Rubber JSC because though the company has been established for a short time, it has created jobs for 250 Cambodian workers, contributing to stablising their lives.The company is building 150 houses for their workers and has donated US$27,000 to build a school for the locality and upgrade local pagodas.

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Canadia Bank to offer insurance
Canadia, Cambodia’s largest bank, is set to join the kingdom’s nascent insurance sector.
Canadia has joined forces with Malaysian insurer Kurnia Insurance Malaysia Berhad (KIMB) to offer general and life insurance in Cambodia. An agreement was signed Thursday at Raffles Hotel Le Royal in Phnom Penh.
The joint venture, in which Canadia Investment Holdings Plc will hold a 51 percent controlling stake and KIMB’s investment holding Kursha Asia Berhad (KAB) 49 percent, will trade under the name Cana Kurna Insurance and will be headquartered in Phnom Penh.
Canadia Investment Holding Plc (CIHP) holds the entire equity interest of Canadia Bank Plc, which is Cambodia’s largest bank, Canadia Bank, which had total assets amounting to US$553 million at the end of 2007 and at the beginning of this year, Canadia’s loan portfolio stood at US$347 million, an increase of 60 percent from a year previously.
Presently, the Cambodian insurance market in covered by five general insurance companies and one reinsurance company. At the end of September 2007, total gross premium amounted to US$12.2 million compared to US$12.1 million for the whole of 2006.
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Asia Pacific Breweries expand operations
Asia Pacific Breweries (APB), the producer of the ubiquitous Anchor and Tiger beers, has further expanded its operations in the last month with two new breweries, one in Laos and one in Vietnam.
APB will construct a second brewery in southern Vietnam to complement its already existing operation on the outskirts of Ho Chi Minh City which opened in 2003. The brewery, producing Tiger Beer, Heineken, Anchor and Bivina, has had its initial capacity of 30 million liters increased by more than 50%, to 46 million liters.
The new US$49 million Lao brewery is only the second to be granted a beer investment license by the Lao government. The new 30 million liter state-of-the-art brewery in Xaythany district, Vientiene will brew Tiger Beer using Australian malt, European hops and Dutch yeast. Laos becomes the ninth country in the Asia Pacific region to brew Tiger Beer.
APB was formed in 1931 and now has five operations in Southeast Asia, controlling 33 breweries in 12 countries in the Asia Pacific region, and selling over 40 brands of beer.

Cambodia expects 20 percent growth in local tourism this year alone
Tourism Minister Thong Khon said Thursday that he expected the local tourism industry to increase 20 percent in 2008. The increase is equivalent to around 6 million tourist visits.
“I think that the Koh Kong coast and the ecotourism area in the northeast are the two area in the northeast are the two areas which will drive local tourist growth,” said Thong Khon.
Ho Vandy, chairman of Cambodia Association of Travel Agents (CATA), said that Khmer New Year alone would see two to three million tourist trips, 50 percent of the predicted total.
“We are worried about the shortage of hotels, vehicles and food for our tourists,” he said. “And this is only local tourism that has increased 20-30 percent, not counting international visitors.”
A recent Tourism Ministry report claimed that five million Cambodian tourists took pleasure trips in 2007, mostly to Angkor Wat and the coast, claiming a total of 2, 015,128 tourist visits including foreigners. The ministry has said it is aiming at 3.2 million tourists by 2010.
Indonesian firm Rajawali confirms deal to form national airline
Deputy Prime Minister Sok An yesterday signed a bilateral deal with Indonesian firm Rajawali Corporation to establish a new national airline.
The national airline will need a joint capital of more than US$50 million, with Cambodia holding 51 percent of the shares and Rajawali the rest. There was no word on the airline’s name. The company is considering using new Boeing aircraft models 737, 757 and 767.
The previous national air carrier Royal Air Cambodge went bankrupt in mid-2000 after seven years in operation.
Sok An said the new airline will play an important role in transporting air cargo as well as offering tourism flights.
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2007 GDP: $580 per capita 09 April 2008The government outlook on the country’s GDP appears in a report written by Hang Chuon Naron, the general secretary of the Ministry of Economy and Finance. During the past 10 years, the per capita GDP has doubled in Cambodia to reach $589 at the end of 2007. Because of the maintained economic growth in the last few years, the poverty index fell from 35% in 2004 to 31% in 2007 .Nevertheless, even with $8.4 billion, the Cambodian GDP remains modest, but this index of the national wealth will keep on increasing. According to the projections included in Hang Chuon Naron’s report, the GDP should reach $1,000 per capita in 2015, and maybe more, if the oil and gaz revenues are accounted for.All will depend on the economic growth rate in the country. If this rate still hovers around 10%, the GDP could reach $3,000 in 2028. On the other hand, if the economic growth rate drops to 7%, the GDP would only be $1,500 per capita in 2025.Regarding the reliability of such long term prediction, it remains to be seen still. However, in 2008, The World bank predicts a growth rate of 7.5% in 2008, and 7% in 2009. But there again, the WB numbers are also predictions.
Japan's Mitsui is studying for food ventures in Cambodia
Thursday April 10, 2008The Japanese trading giant Mitsui & Co has short-listed Thailand as one of three potential destinations to expand its food business outside its home country to invest in fish cultivation and processing in the Greater Mekong Subregion (GMS) where food sufficiency is high. The project would involve freshwater fish such as catfish and tilapia. In its 100 years in Thailand, Mitsui's only food business has been sugar production. Its two local mills export sugar to Asian markets including Japan, Europe and the Middle East.About a quarter of its sales were generated from the iron and steel business, 15% from chemicals, 10% each from infrastructure and food, with the rest from consumer services, such as IT and telecoms, and logistics, he said.Mitsui is also looking at possibly expanding its infrastructure businesses, which include power and water supply.----------
Private equity lines up for a slice of Cambodia09 Apr 2008The bright hopes of private equity may have faded with the credit crisis, but not in Cambodia. At least $US200 million is being raised for deals there and it has drawn in some of the region's most influential investment advisers.A group of former CLSA investment bankers has established Leopard Asia and has been marketing its $US100 million fund. Another $US100 million fund, Cambodia Emerald, is also raising funds and is headed by two American entrepreneurs who last November broke away from Leopard.SAS Global, a Perth-based advisory firm, has also been working away quietly in Cambodia. It has a significant property investment on the coastline and may consider developing a hedge fund that would seek exposure to Cambodia's nascent mining industry.Another fund, JSM Indochina, raised $US220 million on London's AIM market last year to build shopping centres and flats in Vietnam and Cambodia.
Leopard, like Cambodia Emerald, sees a pipeline of deals in just about every sector: financial services (Cambodia's stock market starts next year), agribusiness, mining and oil services, tourism, infrastructure, power and telecoms.Brad Gordon, managing director of Cambodia Emerald, says his fund has seed investors such as New York-based LR Global Partners and investment in Cambodia might make sense for a portfolio diversification.He says Cambodia Emerald will target start-up companies rather than established firms and will be looking at deals of between $US5 million and $US10 million. "We don't see any difficulty in finding deal flow," Gordon says.
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Top consultancy tests local market

The world’s largest commercial real estate services listed company, Los Angeles-based CB Richard Ellis, has more than 300 offices globally with revenues of over $4 billion, is operating in Cambodia and evaluating the market with personnel working under its CB Richard Ellis Vietnam banner.

“We’re a services company; we service the investors and developers, so we provide all settlement, fee facilities, market studies, consultancy, advisory, sales, marketing, property management, investment brokerage in terms of introductions and straightforward brokerage of all types, whether we’re representing buyer or a seller, landlord or tenant.

The business manages the Colonial Mansion serviced apartments in Khan Daun Penh, Phnom Penh, and has other 4 construction projects underway.

Hopkins said the coast of Cambodia also has tremendous potential. “We feel very bullish about the development of the coast and the government seems very serious about allowing high-end development on the coast.

Cambodia also has another natural advantage over Vietnam, Hopkins said.

Govt creates property management team
The government has created a new ministerial working group to manage real estate development. The group’s chairman is Ngy Tayi, under secretary of state of the Ministry of Economy. The group is charged with drafting development policy and legal standard letters to control and manage real estate development companies.
Cargill eyes Cambodia entryUS agricultural giant Cargill is considering opening a representative office in Phnom Penh on the back of projected strong sales from Vietnam, according to Chanh Truong, chairman of Cargill Vietnam Ltd. The company’s Cambodian affairs are currently handled by its Ho Chi Minh City-based subsidiary but an increase in sales could see Cargill entering Cambodia on a permanent basis. “It all depends on the volume of animal feed that we sell to Cambodia from Vietnam. We would have to increase sales by 500 percent to 1000 percent for us to consider a permanent office in Cambodia,” Truong said. “We are at a very early stage at the moment. We estimate maybe six months to a year,” he added. Microsoft arrives Microsoft has unveiled a market plan for Cambodia to take advantage of what it calls a “budding and opportunistic” environment for IT. Chris Atkinson, president of Microsoft Southeast Asia, said at the launch of Microsoft’s Marketing Development Program for Cambodia that the company will use a business model previously applied in Vietnam. “We hope that MDP Cambodia will have more people on the ground, more resources and therefore more opportunities for technology transfer and technical support as well to our partners and customers,” he said. (Mom Kunthear)DuPont to open Cambodia officeAmerican plastics and chemicals conglomerate DuPont is seeking a license to open a branch in Phnom Penh for what will be its first Cambodian office. DuPont is a major supplier of materials to the agricultural, electronics, communications and construction sectors. “We expect to obtain a license to open a representative office in early April,” said DuPont (Thailand) Ltd managing director Montri Simagrai. “We want to … recruit several local employees first, hopefully by the end of May,” he said, adding that the company aimed to be fully operational by June or July. (Sebastian Strangio)
Cambodia launches first satellite TV network
April 3 -- The national Television of Kampuchea (TVK) and the Cambodian DTV Network Limited (CDN), a branch of the Shin Satellite Company from Thailand, here on Thursday launched Techo-DTV, the first satellite TV network of Cambodia.
People who live at all kinds of geographical locations will be able to watch TV programs through this satellite TV service. The viewers will enjoy watching all local Khmer channels and some foreign channels, adding that people can also subscribe to pay TV service in the near future.
Dumrong Kasemset, Chief of Executive for the Shin Satellite Company, said that the main benefit of Techo-DTV service includes digital quality of picture and sound similar to that of DVD and convenience to install at every location of houses and buildings. The DTV service sells 75 U.S. dollars with satellite dish and antenna.
Urban Cambodian people can now access cable TV networks, while about 20 percent of the 14 million population in remote places can't access TV service. Satellite TV will be their solution if they can afford it.
Oil-rich gulf waters to be negotiated with Thailand
Wednesday April 02, 2008Thailand expects to start negotiations with Cambodia on April 21 in Bangkok on offshore petroleum fields in the disputed waters of 26,000 square kilometres in the Gulf of Thailand.
The Thai government was prepared to propose to Cambodia a model based on the successful Malaysia Thailand Joint Development Area and the Timor Gap Australia-Indonesia Co-operation pact. The department also expects PTT Exploration and Production (PTTEP)’s Nang Nual offshore field to be ready to resume crude production this year after being suspended in mid-2006 due to technical errors. The Nang Nual block was producing 18,000 barrels of crude per day before the suspension.------
Golf course planned at former Khmer Rouge strongholdTue, 01 Apr 2008Last week, Prime Minister Hun Sen visited the remote area, more than 100 kilometres of rugged dirt road from the nearest city of Battambang, and proposed a golf course for the municipality.Pailin is perched on the nation's north-western border with Thailand and is just four hours by road from Bangkok, but up to 10 hours from the Cambodian capital. Pailin's biggest draw is currently its mainly Thai-owned casinos, which operators say draw up to 10,000 Thais per month. But they lie within a quick sprint of the border and more than 12 rough kilometres from Pailin town, so most gamblers drop their money there and go no further.Pailin Tourism Chief So Korng said "People will have more jobs, and many people inside Cambodia and from overseas will come to see our natural attractions like our waterfall, gem shops, mountains and our agricultural programmes".
That will be the 4th golf course in Cambodia. -------------
Qatar PM arrives in Cambodia for visit
April 1 -- Sheikh Hamad bin Jassem bin Jabor Al Thani, the Prime Minister and Minister of Foreign Affairs of Qatar, arrived here on Tuesday and resulted in agreements on: assistance in training Cambodians in oil and gas exploration, accepting Cambodian laborers, concession loans to build roads and irrigation systems, promoting investment in tourism, agro-industrial investment, and direct flights between Doha capital, Phnom Penh and Siem Reap, import rice from Cambodia, as well as cooperation in oil and mineral exploration.
The Premier is also the chairman of the Qatar investment group and the chairman of a major Qatar airline which owns a large number of planes. The Premier's visit coincides with the start of the flight of his airline between Doha, Qatar and Siem Reap of Cambodia.
Mekong leaders pledge stronger links
March 31, 2008National leaders from the Mekong region: China, Thailand, Vietnam, Cambodia, Burma and Laos have endorsed the 2008-2012 Plan of Action to boost road, rail and power links between their six countries at a meeting in the Laotian capital, Vientiane.There will also be new streamlined border rules, to ease the flow of people and goods.
The leaders are being joined by Asian Development Bank (ADB) President Haruhiko Kuroda. ADB has been the lead supporter of the Greater Mekong Subregion Economic Cooperation Program since 1992. The First GMS Summit was held in Phnom Penh, Cambodia in November 2002, while the Second GMS Summit was held in Kunming, China in July 2005.

Exports from GMS countries, excluding China, have quadrupled from 37 billion U.S. dollars in 1992 to 179 billion U.S. dollars in 2006, and foreign direct investment in the GMS has more than tripled from 2 billion U.S. dollars in 1992 to 7 billion U.S. dollars in 2005.Annual tourist arrivals have also risen dramatically, from 10 million in 1995 to over 22 million in 2006.Over the past 15 years, approximately 10 billion U.S. dollars in investments have been made in 34 regional development projects. ADB has contributed over one-third of the overall amount.The GMS program focuses on nine development areas: agriculture, energy, the environment, human resource development, private investment, telecommunications, tourism, trade and transportation.
Cambodia’s black gold
Deputy Prime Minister Sok An said on Friday that “The windfall of petroleum income is an exciting prospect for our country,” however, “offshore oil fields are modest in size” but that “smaller oil fields may be more easily developed.”

CNPA Director General Te Duong Tara agreed the extend of hydrocarbon reserves was a big question. “Oil in the ground is like fish in the sea,” he mused, chastising journalists for not distinguishing between oil in the ground (OIG) and estimated ultimate recovery (EUR) in their reports. Such distinctions are important, as EUR in the neighboring gulf of Thailand is a mere 10-15 percent of OIG reserves.

Thai and Cambodian disputes over a large offshore overlapping claims area (OCA) were also a major feature of discussions and “the profits must be shared on a 50/50 basis”.

Based on the research conducted by the United Nations, the World Bank and other institutions in 2007, the oil reserves under the Cambodian seabeds were estimated to be about 2 billion barrels and natural gases at 283 million litres, which will generate revenues to the tune of 6 billion US dollars in the next two decades, based on the world market prices.
The government’s current estimate is that Chevron’s Block A alone contains 500 million barrels of reserves with a recovery rate of 15 or 20 percent.
Other than Block A oil wells that Cambodia plans to extract for the first time in 2011, Cambodia has contracted with Singaporean and Malaysian companies to extract oil from Block B, with Hong Kong and Macau companies to extract oil from Block C, with Chinese companies in Block D and with Indonesian and Kuwaiti companies, Energy, in Block E.

Onshore drilling in areas around Tonle Sap lake- a primary food source for millions of Cambodians – had been a great deal of interest from “many companies” in onshore blocks, including from TOTAL.

Cambodia Aims for 1,100 megawatts of hydropower by 2016
If everything goes as planned, more electricity will be on the way for Cambodia.
Cambodia currently produces only 180 megawatts (MW), of which 12 MW is produced by hydropower dams, said Ith Praing, secretary of state for the Ministry of Industry, Mines and Energy. The figure should jump to over 1,000 MW produced by hydropower by 2016, he said.
The Cardamon Mountains Protected Forest Area in southwest Cambodia- encompassing parts of Kompong Speu, Koh Kong, Pursat and Kampot- will produce about 700 MW, he said, while the Kingdom’s eastern provinces- Kratie, Mondulkiri, Ratanakkiri, and Stung Treng- will produce 400 MW.
The expansion in hydropower would help 70 percent of Cambodians access electricity by 2030, Ith Praing said.
Cambodia has 30 sites with hydropower potential, five of which have Chinese investment (two are under construction and three are being studied for feasibility).
Addressing social and environment impact concerns, Ith Praing said, “the government is most concerned about this, so before we allow for the development of any hydropower, we’re urging a thorough study to assess the impact.”
Cambodian Rubber bounces Back
Cambodians could have 400,000 hectares of rubber trees by 2030, as both small privately owned plantations and larger plantations owned by corporations are becoming more common, annually growing by 10,000 hectares.

Although Preah Vihear province has no history of growing rubber, ten companies have applied for investment in rubber plantations on 80,000 hectares and potential land for rubber trees of about 200,000 hectares.”
Nut Bunheng, cabinet chief of Ratanakiri Provincial Hall, said his province is also seeing a massive increase in rubber plantations, with plans for hundreds of thousands more hectares to be cultivated.

Ly Pholla said that, to promote rubber cultivation, the government should consider planting on denuded forests. “The government must think about allotting partially denuded forest land to expand rubber tree cultivation because rubber is also a natural tree,” he said, warning that Cambodia may soon have difficulties expanding the rubber sector without new land for cultivation.

In 2007, to promote rubber plantations, the government allocated about 250,000 hectares for rubber. Currently, Cambodia has a total of nearly 70,000 hectares of rubber plantations yielding about 40,000-50,000 tons of dry resin annually. Rubber resin currently costs US$2,600 per ton.

Sunday March 30, 2008China the dominant force at Mekong region summit
When six Mekong country premiers meet in Laos from Sunday, China will be the elephant in the room, having lavished highways and sports stadiums on its neighbours and expanded its search for resources.In Cambodia, China is the largest foreign donor and has invested in power projects along Cambodia's south coast as well as mines in the northeast.The China National Overseas Oil Corp has won rights to explore at least one offshore oil field block although no production date has been set.The garment export industry, which accounts for some 80 percent of Cambodia's foreign earnings, is heavily crowded with Chinese firms.

Chinese road crews are helping build transnational highways, such as a link between Bangkok and the southwest Chinese province of Yunnan, that are transforming the region of more than 266 million people under a scheme promoted by the Asian Development Bank.
According to the report, a total of 9.87 billion U.S. dollars, a shared contribution by China and the other five countries as well as the Asian Development Bank, has been poured into 34 projects, and another 146 technological aid projects also cost a total of 166 million U.S. dollars.-- The Laos one-third section of the western line of the south-north economic corridor (Kunming-Laos-Bangkok Road)-- Cooperation on the Pan-Asia Railway, and research into both the China and other sections.-- The 110 kw power line connecting Hekou, Yunnan Province, and Lao Cai in Vietnam-- The GMS Information Highway (GMS IS) phase I projectAbout 320 million people live within the GMS region, and their common link, the Mekong River, winds its way for 4,200 km.
Vietnam to boost economic cooperation with Cambodia
March 30 - Vietnam and Cambodia have agreed to beef up their cooperation, especially in the fields of oil and gas, electricity, mining, cash crop cultivation, and construction material production during the meeting the 3rd Greater Mekong Sub-region Summit.
Trade between Vietnam and Cambodia should reach 2 billion U.S. dollars in 2010, said the two prime ministers.
The two sides have also agreed to finish their land border demarcation in 2012 as scheduled, and closely cooperate in dealing with some other issues, including those on using Mekong water resource.
Gov’t to Study Petroleum Sector Job Creation
March 29, 2008
The government plans to study the number of Cambodians who could ultimately be employed in the nascent petroleum sector and the governing bodies that will regulate it, Cabinet Minister Sok An said Friday.
By 2012, the annual number of graduating high school students will more than triple to 200,000, said Sok An; whereas the International Labor Organization estimated last year that the Cambodian labor market has had 275,000 new entrants every year since 2004.
Sok An said that, while the civil service can currently absorb only 5,000 to 6,000 new employees per year, the data used to channel workers to the oil sector may be a model in future job placement by the government, which hopes to establish “employment agencies.”
The government is currently in discussions to chose the best of six options to extract oil from offshore exploration Block A, which is controlled by Chevron and where the Japanese firm Mitsui Oil Exploration also holds a 30 percent stake.
Te Duong Tara told reporters on Thursday that the government thought 15 to 20 percent of an estimated 500 million barrels could ultimately be extracted from the block A, which Chevron along with minority partners Mitsubishi and GS Caltex.
Extraction options include floating concrete platforms and a Floating, Production, Storage and Offloading unit, or FPSO, he said Friday.
“This is a kind of boat that you can bring the oil up on the boat and process and separate it,” he said, adding that such operations, at $120,000 to $130,000 per day, could be prohibitively costly.
Te Duong Tara also said that the Norwegian firm Petroleum Geo Services had recently begun airborne gravity surveys to help determine the extent of oil deposits in the Tonle Sap Basin, where seismic surveys have yet to be performed.
The US-based firm ATI Petroleum announced this month it expected to sign an agreement this year for exploration rights in Cambodia’s onshore blocks 10 and 15.
Thailand wants revived Emerald Triangle Cooperation
March 29 (TNA) - After delaying implementation of the Emerald Triangle Cooperation for nearly five years, the Thai government now plans to promote the plan, which emphasizes tourism in the three countries involved – Thailand, Laos and Cambodia.A seminar at the national level will be held to push for implementation of the project for the private sector in the northeastern province of Ubon Ratchathani has already developed the province to cater for the project.The first meeting of the Emerald Triangle Cooperation was held Aug 2, 2003 in the southern Lao town of Pakse by the foreign ministers of the three countries.
Japan provides 36 million USD to Cambodia [to build Sihanoukville SEZ]
Phnom Penh, Mar 28, 2008 -- Japan has pledged to provide a loan worth 3,651 million JPY (36 million USD) to build a special economic zone in Sihanoukville, Cambodia.Under an agreement signed in Phnom Penh on March 27, aid will be part of a preferential loan to develop infrastructure, workshops and ports in a special economic zone covering 70 ha in Sihanoukville.The agreement was signed by Japanese Ambassador to Cambodia Shohiro Shinohara and Cambodian Deputy Prime Minister and Foreign Minister Hor Namhong.
Turkish entrepreneurs open second school in Cambodia
29.03.2008The second Turkish school in Cambodia, an additional campus of the Zaman International School, which began its educational activities in 1997, was opened on Thursday in a ceremony attended by Cambodian Deputy Prime Minister Sok An and Justice and Development Party (AK Party) Deputy Chairman Dengir Mir Mehmet Fırat.The new campus will initially host 300 nursery and primary school students. The old campus is used to educate 700 high school students. Principal Ali Kökten told Today's Zaman on Thursday that the Turkish school is among the leading schools in the country and that its team won the bronze medal at the Computer Olympics held last year in Romania.
Economic and cultural relations between Turkey and Cambodia were not noteworthy in the past due to a mutual lack of knowledge about each other; however, this changed when the first school was opened, boosting Turkey's popularity among Cambodians.
ADB pledges budget for development projects in three GMS countries
March 28, 2008
The Asian Development Bank has promised the budget for a variety of development projects in three Greater Mekong Sub-region (GMS) countries for 2008 and 2009, an ADB official said here Friday.There is no lending project from ADB under the GMS program for Cambodia in 2008, but there are two projects tentatively planned for 2009, namely the Flood and Drought Risk Management and Mitigation project worth 20 million U.S. dollars, and the Cambodia Northwest Road Improvement Project also worth 20 million U.S. dollars, said Chamroen Ouch, senior program officer for governance unit of the ADB Cambodia Resident Mission. -----------------------------
M'sia Leader Universal to build 200 MW power plant
28-03-2008Leader Universal Holdings Bhd’s upcoming 200MW coal-fired power plant in Cambodia will supply electricity to state-owned Electricite du Cambodge (EDC) under a 30-year power purchase agreement (PPA).Leader told Bursa Malaysia it had also signed an implementation agreement with the Cambodian Industry, Mines and Energy Ministry for the project. The deals were inked yesterday.“Discussions are still ongoing with the turnkey contractor on the engineering, procurement and construction works. The financial adviser is also in the midst of making the necessary arrangement on the project financing,” Leader said.Both agreements followed a joint venture (JV) deal between Leader and MKCSS Holdings Co Ltd in November 2006 to bid for the electricity project in Sihanoukville.The Cambodian government had awarded the job to both companies in February 2007, and subsequently a JV company, Power Synergy Corporation Co Ltd (PSC), was formed to undertake the project.Under the PPA, PSC will build four 50MW coal-fired electricity generators, and a double-circuit 230 kV transmission line. The base tariff has been fixed at US$0.07212 (23 sen) per kilowatt-hours with indexation.
Japanese Joint Venture with Southern Gold in Cambodia
Mar 26, 2008 The Japanese government organisation, JOGMEC, plans to fund accelerated exploration on three Cambodian gold and base metal projects under a Letter of Intent with Southern Gold.JOGMEC (Japan Oil, Gas and Metals National Corp) and Southern Gold will JV over three of Southern Gold's Cambodian tenements.JOGMEC will invest $US4.5 million within three years to earn a 51 per cent interest in Phnum Khtong (Kratie North project) and two adjoining blocks, Preak Khlong and O'Kthung (Kratie South project). The agreement includes an up-front payment to Southern Gold of approximately $US400,000 on signing of the LOI for current exploration costs, followed by a decision to proceed with a full joint venture on the Kratie North and/or the Kratie South Projects by June 2008.The three tenements are among eight gold projects, wholly or majority owned, by Southern Gold under its strategy to establish a cornerstone gold business in Cambodia to compliment the Australian gold projects.
Chinese dams threaten Cambodia's forests, farmers
Tue Mar 25, 2008CHAY ARENG RIVER, Cambodia (Reuters) - Along the Chay Areng valley in Cambodia's remote Cardamom mountains, children still scamper barefoot through one of mainland southeast Asia's last remaining tracts of virgin jungle.With this in mind, in the last two years he has agreed to at least four Chinese-funded hydropower projects as part of a $3 billion scheme to boost output from a measly 300 MW today to 1,000 MW in a decade, enough to power a small city.The deal was signed in late 2006 with China Southern Power Grid Co (CSG), one of China's two grid operators, to build a 260 MW plant at an estimated cost of $200 million and with a completion date of 2015.Environmentalists who have conducted their own studies say the dam's lake will cover 110 sq km (42 sq miles) and displace thousands of indigenous people in nine villages and more than 200 animal species, including elephants, sun bears, leopards and the endangered Siamese crocodile.
A 2003 plan developed by the Ministry of Mines, Minerals and Energy, with the support of the Mekong River Commission, estimated that Cambodia has the potential to generate 10,000 megawatts of energy for internal use and export. Almost 50% of that power would be generated from projects along the mainstream Mekong River, which runs through Cambodia.Phnom Penh has identified about 14 priority projects, of which six are under development - all by Chinese companies. For instance, China's Sinohydro is building a 145-meter dam on the Kamchay River in Kampot province, representing Beijing’s biggest investment in the country.There is no disagreement among officials and activists that Cambodia needs to generate more power. Currently, only 20% of the population has access to cheap, reliable sources of electricity, mainly in urban areas. Meanwhile domestic demand for electricity is estimated to be growing at around 20% per year.------------------
Cooking gas price increases to $33 per tank
Tuesday, March 25, 2008Following the sharp increase in the price of rice and there is no let up in sight yet, now it is the turn of the price of cooking gas also. The price of one tank of gas weighing 15 kilos has increased to $30 on Monday. This price increase is due to Thailand preventing the export of gas from Thailand to Cambodia, thereby depleting the Cambodia stock of gas and causing the shortage. This is the reason of this sharp price increase. The Rasmei Kampuchea reported also that, at 02:00 PM on Monday, people have called the newspaper to report that the price of a tank of gas has increased up to $33. The owner of the Rasmei Mekong gas dealer said that on Monday, the prince of gas increased to $30 a tank, and he couldn’t even find gas to sell. The price of gas has increased significantly in less than one month, and the price increased took place twice more often than last year. An official from the Total company said that its stations have a hard time finding gas to sell. He said that Thailand blocked all gas export since 10 March, and this caused the shortage of gas in Cambodia. The same Total official said that nowadays, 80% of the gas used in Cambodia is imported from Thailand, 10% from Singapore, and the remainder from Vietnam. With the supply shut off from Thailand, there is a shortage of cooking gas.
Cambodia develops cultural heritage and eco-tourism
Mar 24, 2008In recent years, the government of Cambodia has given priority to the development of the country’s tourism industry, focusing on cultural and eco-tourism in order to promote the advancement of national economy and rapid poverty alleviation.The Cambodian government has plans to develop the Preah Vihear temple into a cultural tourism destination in an effort to reach the goal of attracting 3 million tourists by 2010.Preah Vihear Temple is located in a pleasant environment with an attractive countryside slightly east of the mid section of the Dongrek Mountains. It is perched on the edge of a giant cliff, about 525 meters above sea level in Preah Vihear Province, Northern part of Cambodia. It is also situated close to the Cambodia-Thai border Sisaket province.The Preah Vihear temple was built from year 900 to 1150. Preah Vihear, which means sacred monastery in Khmer, was built over a span of about 300 years, starting in the 9th century. It was occupied by Thailand from 1949 to 1952. In 1962, the Hague International Court decided that the ownership of the temple went to Cambodia. The government has proposed the sacred Hindu Temple Preah Vihear to the UNESCO’s World Heritage Committee.
Small car Lots Cater to Increasingly Diverse Tastes
The number of registered car owners has increased from 9,549 in 2003 to about 173,300, according to figures from the Ministry of Public Works and Transport, though the number of actual owners is higher.
Around 30 to 50 lots selling new and used cars imported from other countries exist all over the city, often because people want variety they can’t find at a Cambodian dealership. And with a large number of car manufacturers without official dealerships—such as GM, Saab or Lexus—the lots have appeal.
At the Toyota dealership on Russian Boulevard, owned by TTHK Co Ltd, General Manager Ly Bunhay said that uniqueness in not a big issue. He said most customers want the warranty and service that a dealership provides. But he added that Toyota has a long-standing popularity in Cambodia that makes buying something different less important to his customers.
Seng Voeung said the cars at his Ford dealership aren’t unique but they are selling well. Five years ago his dealership sold only 10 percent of its cars to individuals, he said with the rest being sold to embassies, the government and corporations—that number is now 50 percent.
Council Defines Arms Licenses for Civilians21 March 2008
The Council of Ministers passed a sub-decree Friday allowing for the licensing of very limited arms and munitions by civilians.Under the new sub-decree, civilians can apply for licenses of arms and munitions for sports, art, fireworks, and engineering.The licensing follows the passage of the Cambodian Arms Law in April 2005 and the subsequent closure of several weapons reduction programs.Article 4 of the Arms Law prohibits weapon possession, ownership and transport by civilians.
Ministry Approves Coal Power Plant for S’ ville

The Council of Ministers announced Friday it has approved a plan to construct a 200-megawatt coal-burning power plant for $390 million in Sihanoukville.
Power Synergy Corporation Co Ltd and the Ministry of Industry, Mines and Energy will sign an agreement on an unspecified date. State-owned utility Electricite du Cambodge will also sign an electricity purchase deal with the company, according to the meeting minutes.
Media reports identified Power Synergy Corp as a joint venture seeking to build the plant with the Malaysian holding company Leader Universal Holdings; however the company could not be reached Friday.

Maybank opens second branch
Maybank opened a second branch in Cambodia on March 17. “We decided to open a new branch because we think that it is good market and good opportunity here for customers to find a good bank that they can be confident with,” said Ragu Mani, chief operations manager of Maybank.
He said the new branch on the airport road at Tektla in the Attwood business center is staffed by eight people.
Maybank opened its first branch in Phnom Penh in 1993. “We are very positive about the Cambodian economy and are planning to open another four branches in the next two years,” Lim Hong Tat, Maybank’s chief of international business.
"The second branch also will enable us to support our customers from Malaysia, Singapore and other regional locations who have trade and investment links with Cambodia," he said.
Australian firm finds gold in Kratie
Australian gold and base metals explorer Southern Gold Ltd announced the results of preliminary drillings in Kratie province, the firm’s first foray into Cambodia.
In tests conducted in Snoul district, Southern Gold obtained readings of 3.45 grams of gold per tonne for one meter at a depth of 74 meters, according to a company statement. Southern Gold managing director Stephen Biggins said the test results were encouraging. “Southern Gold believes that the prospect for gold deposits in northeast Cambodia is substantial and that is why the company is funding such large exploration projects.
“We expect to see more exciting results in coming months,” he said. In 2006, Southern Gold reached an agreement with the Cambodian government covering 959 square kilometers in Kratie and Mondulkiri provinces, where the firm has the rights to eight concessions.
In the coming year, it also plans to conduct an airborne geophysical survey of the eastern provinces, the first such survey to be conducted in Cambodia. Since it signed the contracts, the price of gold has soared, hitting a record high of $1,032.70 an ounce at the London Bullion Market on March 17.
RM Asia opening ambulance factory
RM Asia will open an ambulance assembly factory in Sihanoukville, with plans to ship about 500 ambulances a year to Iraq and Afghanistan, according to a company official. The project is funded by US Department of Defense. The factory is close to completion, but the official said no date has been set for its inauguration.
Cambodian first ever agriculture, business censuses to begin next year
Mar 21, 2008 -- Cambodia will hold its first ever agriculture census in 2009, and a business establishment census in 2011. The $ 3 million agriculture census will gather agriculture-related data from 2008 such areas as agricultural land, crop fields, livestock and various type of forest land.The first ever $ 2 million business census will be conducted in the first half of 2011, gathering data from 2010, will gather data on all types of business, their number of employees, wages and other salient information.Both the agriculture and business censuses will be conducted at intervals of 10 years.
ATI Petroleum to explore oil in Blocks 10 and 15 onshore
PARIS -, ATIP’s investment banker, responsible for listing the company on the Marché Libre, along with Actifin, ATIP’s communication and Public Relation agency met with Dr Huu Duc Dinh in Paris this week. For the past several months, Dr Huu Dinh, President and CEO of ATIP, has been extensively travelling to Canada, Vietnam and China to take care of several business opportunities regarding the oil, gas and uranium exploration and production. Actively researching and catching up with the trend, ATIP is committed to explore and produce oil and gas in Blocks 10 and 15 onshore of Cambodia. This would be mutually beneficial for ATIP and Cambodia. Returns from investment in the oil and gas industry will help build roads, hospitals and schools and enhance the living standard of Cambodians. The discovery of oil and gas has nurtured hope for an economic re-birth in Cambodia. The Production Sharing Contract of petroleum will be signed in 2008.
Cambodia unveils new hospital for major-shot clients
March 20 -- Cambodia here on Thursday unveiled the Royal Ratanak Hospital to provide health services at international standard to rich Cambodians as well as foreigners.Prasert Prasarttong Osoth, owner of the Bangkok Airways and the Bangkok Dusit Medical Service, altogether invested about 8.5 million U.S. dollars in building the 30-bed hospital. The Royal Ratanak Hospital will cooperate with the Bangkok Dusit Medical Services and it is also a sister hospital to the Royal International Hospital in Siem Reap, he said.The six-floor hospital will become a main emergency referral center for local Cambodians, foreign tourists and other residents, he added.
After the 30-bed hospital, another $38 million 100-bed facility is also under construction in Phnom Penh to be completed within 2010.
Bangkok Dusit Medical Services, Thailand's largest hospital operator, projects it worldwide revenue growth of 10-15% this year to $696 million.

According to Cambodian official statistics, there are over 1,100 medical units, including major hospitals, all over the country. An average of some 5,000 Cambodians can share one doctor.
Cambodia wants more border gates18-03-2008Cambodia’s Ministry of the Interior wants to open two more border gates to Viet Nam, the ministry’s spokesman Khieu Sopheak recently announced.Opening more border gates should help attract investment, generate jobs, reduce the migration of job seekers into the cities, help eradicate hunger and alleviate poverty for border residents, according to Sopheak.Sopheak said the ministry would propose that the Government open the border gates of Labakhe and Nam Lieu, both in Mondulkiri Province, which shares a border with Viet Nam’s southern province of Binh Phuoc.The ministry said the new border gates should help turn the border area into major industrial zones, helping to raise incomes for local residents via investment and commodities export between the two countries, he said.The ministry also asked the Cambodian Government to upgrade the Prechak national border gate in Kampot Province and the Ozadao national border gate in Ratanakiri Province into international border gates and to also construct the Ton Lon national border gate in Kampot Province and look at opening other border gates.Cambodia now has 64 border gates, with 60 border gates managed by cities and provinces, and four international gates.
Redknee's Enables 013 to Differentiate Their Offering
March 19
Redknee Solutions Inc., today announced that it has been selected by Cambodia Advance Communications ("CADCOMMS") to provide Redknee's Turnkey Converged Billing Solution.
As a new entrant in the highly competitive and emerging growth market in Cambodia, CADCOMMS saw that its opportunity to carve out a majority share of the market depended on its ability to differentiate itself with a flexible, personalized billing solution.
The system provides self-care features that allow all subscribers to query and modify their attributes, reducing call center costs, said Don Maclean, chief information officer at CADCOMMS. "
Cambodia Advance Communication Co Ltd or "CADCOMMS" launched its services in March 2008. CADCOMMS operates a 3.5G HSPA mobile telephony service using the 'qb' brand 013 network.
Korean Investors looking at Garment industry
Korean investors from about 30 firms met yesterday with local officials to seek clarification over the nation’s labor laws as part of an exploratory visit concerning investment in the country’s garment industry. The meeting was organized by the Korean embassy in Phnom Penh and the Cambodian Ministry of Labor and Vocational Training.
Garment factories have increased to 500, with approximately 300,000 workers, exported $2.80 billion in 2006 mainly to US and European Union.
Development Projects cause land price buzz in Kampot
Recent development projects in Kampot including an international seaport, a luxury resort on Bokor mountain and a restoration of the road linking the province to Phnom Penh have caused local land prices to soar.
According to a recent report from the Council for the Development of Cambodia, a US$15 million, 145-hectare Special Economic Zone (SEZ) is also being readied in Kampot, which will begin operation as soon as work begins on the US$4 million, 1,000 hectare seaport—hoped to be completed by 2013.
Another project thought to be pushing land prices up is the renovation of National Highway 3, the 148 km road link between Kampot and Phnom Penh, which will commence soon thanks to a US$41.5 million loan from South Korea.

But the most significant investment project to date is the US$1 billion project to develop a luxury resort atop Bokor mountain, which recently began construction.

The Sokha Hotel Group development has caused land prices along the road leading to Bokor to more than quadruple, added the deputy governor. Previously, a square meter was between US$10 and US$15 and there were no buyers, but now it costs from US$50 to US$100.
RedMAX Product Line Chosen by CityLink for Wireless
3/19/08 - Redline announced that CityLink, the largest Internet Service Provider in Cambodia, has chosen Redline's WiMAX Forum Certified RedMAX products for its multi-city WiMAX network.
CityLink has initiated its two-city allows its WiMAX subscribers to choose WiMAX@Night, WiMAX@Home and WiMAX Unlimited. The internet service provider plans to extend its RedMAX network to Siem Reap, serving thousands of subscribers in 2008, and to extend its network to an additional ten cities in 2009.
The CityLink deployment is being managed by ECOMM Tech, a systems integrator and Redline Certified Silver Partner.
There are now more than 150 deployments of our WiMAX Forum Certified RedMAX products worldwide, 49 of which are revenue-generating commercial networks.
Cambodia-Thai joint venture
On March 14, four companies has signed business venture with Cambodia at the Thai embassy.
$11 million between Siam I-mobile with Siam International to sell mobile phone.
$6 million between Unique Charm Thailand with Siam International to sell children diaper and clothes.
$6 million between Oichi Trading with Siam International
$3 million between Chhouk Di International with Heng Leang Investment to sell cake.
Cambodia breaks ground on first skyscraper [the Gold Tower 42]
Over 600 CAMBODIAN officials on Friday broke ground on the $240 million project of 192-metre-tall Gold Tower 42, which will include a library and medical facilities along with luxury apartments and is backed by South Korea's Yon Woo company; is expected to be completed by 2011.
Company officials say at least half the available units have already sold.At least two other high-rise buildings are planned, a 53-storey financial institution along with another South Korean-backed Camko City project, the sprawling Camko City planned community located on the outskirts of Phnom Penh.
Trades Between Cambodia And Thailand Increased:
15th March 2008Minister of Commerce, Mr. Cham Prasidh, has said on Friday that the volume of trades between Cambodia and Thailand had increased 10.56% in 2007, which worth US$1.404 billion in total while Cambodia exported goods to Thailand worth $US49 million per year.
He further said that Cambodia had provided an investment opportunity to Thai industries to set up shops and produce goods in Cambodia for exporting to countries that provide preferential treatments to Cambodian products.
Southern Gold Intersects Gold Grades at First Cambodian Drill Holes
Friday March 14, 2008Southern Gold announced that gold grades have been intersected in the first batch of holes drilled into gold‐in‐soil anomalies by Southern Gold under its maiden exploration foray into Cambodia. The highest grade intersection was 3.45 grams per tonne gold over one metre at just 74 metres below surface.
Cambodia to host meeting on ASEAN integration in 2015
March 13, 2008
Sixty officials from Cambodia, Indonesia, Laos, the Philippines and Vietnam will meet on March 17-20 in Siem Reap province to boost their progress on commercial law and trade reform that will support the ASEAN integration in 2015.They will review the findings and best practices identified in the SEA CLIR stands for the South East Asia Commercial Legal and Institutional Reform and Trade Diagnostics Report. The meeting will bring together public and private-sector officials to meet in small groups to discuss the best regional legal and institutional models to meet the challenges in Southeast Asian trade and business, it said.
Group Hopes to Rate Pharmacies Like Hotels
13 March 2008
The Ministry of Health, the Cambodian Pharmacy Association and the World Health Organization are working to form a pharmacy accreditation body by the end of the year. The agency will seek to control pharmacies by independently evaluating them and rating them. Just like hotels.The agency as planned will evaluate the location of the pharmacy, the character of its staff and the quality of its drugs, he said, adding that the committee will strengthen the service of the pharmacy, but will not control counterfeit drugs. Such a committee already exists.In Phnom Penh there are 480 legal and 10 illegal pharmacies while the whole Cambodia has 1,300 legal pharmacies, but twice as many do so illegally.
It’s hip to be square with new mobile brand
Cambodia Advance Communications (CADCOMMS) joins several other mobile phone service providers that already serve 2.5 million customers. The company only covers Phnom Penh at the moment, but will cover 60 percent of the country by the end of the year. The new 013 phone package ‘qb’ (Cube) offer 3.5G high-speed downlink packet access (HSPA) –streaming content from international TV giants MTV, said CEO Morten Erikson.
Cambodia hopes to reduce foreign debt to US$2 billion after election
In the face of recent US appeals for Cambodia to pay back its foreign debt, Cambodia yesterday announced plans to make substantial repayments after the 2008 election. “We hope that foreign debt will be reduced to US$2 billion,” Hang Chuon Naron, secretary general of the Economy and Finance Ministry, said at a review of the Agence Francaise de Development’s (AFD) aid projects.
Cambodia currently owes over US$3 billion to foreign countries, according to Finance Ministry figures from 2006 that do not include new loans from China.
“The Cambodian government will hold negotiations [with loan providers] both to reduce debts and set aside a portion of the state budget to repay them,” Hang Chuon Naron said. “We will need US$20 to 50 million each year to repay the US and Russia.”
There is no clear information on how much Cambodia has borrowed from foreign countries since 1979 but SRP parliamentarian Son Chhay has said Cambodia owes nearly US$6 billion: starting from 1993, Cambodia owes more than $3 billion. Russia is Cambodia’s largest creditor with more than US$1.5 billion outstanding. The Cambodian government is asking Russia to cancel the debt, although Russia has yet to give a response.
Market Data Show Contours of Emerging Middle Class
Cambodians living in major cities are leaving home earlier, buying more homes and filling them with a greater variety of goods, according to October report by the marketing firm Indochina Research.
Between 2003 and 2007, the average size of an urban household dropped from 5.6 to five people, creating new entrants to the housing market, driving up real estate speculation and demand for household durable goods, the monitor said.
The monitor also found a slow but steady rise in consumer confidence after a spike during the Khmer New Year in April, and the emergence of a $24-million market for the education and entertainment of 675,000 urban children under 10.
The number of television ads in the first nine months of this year was up to 18 percent to a total of 292,244, while beverages and beauty and hygiene products accounted for 30 percent of television advertising revenues.
Between 1993 and 2004, consumption in Phnom Penh grew by about 30 percent and was spread fairly evenly among economic strata, according to the World Bank.
Insurance Companies Fighting “Luxury” Image
Despite double-digit, industry-wide growth last year and expected growth this year, insurance industry officials say they still face the challenge of a market full of people who have never owned insurance, don’t see its value and are sometimes unfamiliar with how it even works.
Last year, Infinity and Campu Bank Lonpac Insurance became Cambodia’s fourth and fifth insurance providers, joining Asia Insurance, Forte Insurance and state-run Caminco Insurance.
Insurance revenues increased 31 percent from $12.1 million in 2006 to $17.5 million in 2007, according to the Ministry of Finance. In 2002, revenues amounted to only $4.6 million.
Five years ago, many Cambodians had never heard of some of the insurance companies now in the country, but then again many Cambodians had never owned insurance before.
He said that 85 percent of the insurance his company sells is to NGOs, embassies and corporations. He said as more business projects in real estate and other sectors are completed the number of those policies will increase. About 15 percent of policies at Infinity and issued to individuals, which is a small percentage compared to most countries, he said. He said a 50/50 ratio is a reasonable target over the next 10 years.
Another company like Forte Insurance, which began in 1999 and got its license to operate independently in 2003, have seen rapid growth, said Youk Chamroenrith, general manager of Forte.
Rubber Plantations will be up to 150,000 hectare in 2015
Rubber plantations will be increased up to 150,000 hectares by 2015, according to Mr. Ly Phalla, director general for Rubber plantation department of the Ministry of Agriculture.
At the present, there is 80,000 hectares of rubber partly increase from family and private owned. Among this, 30,000 hectares are belonged the state and likely remain stable. AFD plans to stop giving loan to family rubber owner after 3,000 hectares loan and the land requested affect forestry administration. Most medium size private owner hold between 10 to 20 hectares while the big one own between 50 to 100 hectares.
The price of rubber is about $2,500 to $2,600 per tone.
Chinese company request for 20,000 hectares in Steung Treng
· Chinese Company [Loning Intertrading Company] Asks for Land Concession of 20,000 Hectares in Stung Treng to Invest in Agriculture
· Long Nin company director Mr. Zhang Yi met Prime Minister Hun Sen and Deputy Prime Minister Sok An on March 11 to request for 20,000 hectares of land in Steung Treng for agricultural investment. Long Nin Company has $ 1 billion capital invested since 2006 in tourism, mineral exploration, and agriculture.
Thailand to build a new coal-fired power plant in Pailin ...
Wednesday March 12, 2008A coalition led by Dragon One Plc (D1), 124 Communication and foreign investors expects to generate returns of $222 million over the next two years from its new coal-fired power plant in Pailin, for the project, worth around $633 million, would produce 350 megawatts of coal-fired power.D1 and 124 will take 20% each in the project, with the remaining 60% held by an international energy company. The initial investment if the project is $88 million, with revenues expected at $222 million per year. Power will be sold to the Electricity Generation Authority of Thailand under a 25-year contract. Mr Jrarat said the Cambodian government would offer the consortium a 99-year lease for the project at a relatively low cost.D1 will invest in the project through its new Dragon Power subsidiary. Mr Jrarat said D1 expected to receive steady revenues of $44 million per year from the project.He said D1 was also studying the possibility of setting up an industrial business zone in Pailin on some of the 1,600 hectares of land to be leased from the Cambodian government for the power plant.Mr Jrarat said Dragon Pailin would require an initial investment of $16 million, and would leverage infrastructure to be built to support the Dragon Power plant.Revenues could reach $316 million per year for the industrial zone project within three years. Mr Jrarat said that for holding company D1, revenues by 2010 would come equally from three segments: Dragon Power, Dragon Pailin and IT services.--------
Angkor Park Revenue $ 32 million per year
March 12, 2008

Opposition party member Son Chhay said that the five-year concession of Angkor entry to Sokimex Group, which was renewed in 2005, should be reconsidered.

In a March 3 Hun Sen writes that reports of $32.7 million of revenue in 2007 and $25.3 million in 2006 were correct and the concession will stand.

Under the concession deal, Sokha Hotels, a division of Sokimex, takes home half of the first $3 million in ticket sales and 17 percent of sales in excess of that.

Under that formula, Sokha Hotels made about $6.5 million in 2007, but Son Chhay claimed that Sok Kong’s company earned more than $60 million in 2006 and again in 2007.
Chevron Corp. to start work on big Gulf of Thailand gas project
Monday, March 10, 2008Chevron Corp. and two partners will start work on a $3.1 billion natural gas project in the Gulf of Thailand.Now the company will begin building the Platong Gas II project, which should start working in the first quarter of 2011. It will put out about 420 million cubic feet of natural gas per day. Chevron hopes eventually to boost gas production from its leases in this area to 1 billion cubic feet per day. The leases are in the center of the gulf bounded by Thailand on the north and west and Cambodia and Vietnam on the east. The Unocal contracts from the Thai government were set to expire in 2012 and have now been extended to 2022.Platong and the other lease areas -- named Erawan, Satun, Funan, Banpot, Plamuk, Yala and Pla Daeng -- are along a rough north-south line to the west of another area where Cambodia and Thailand have disputing claims going back to 1972.Chevron (NYSE: CVX) shares the leases with Mitsui Oil Exploration Co. and PTT Exploration and Production Public Co. Chevron has a 69.8 percent stake in the Platong Gas II project, and is also its operator. Along with its venture partners, Chevron, which has about 180 platforms in the gulf, has paid about $3.5 billion in royalties to Thailand since 1981.Chevron has 195 platforms in the Gulf of Thailand producing both oil and natural gas.
Chevron to spend $4bn in region [including Cambodia]
Saturday March 08, 2008Chevron Corporation says it will invest a total of US$4 billion in upstream petroleum activities in nine countries in the Asia-Pacific region, with Thailand receiving the largest share.The US-based oil company will expand activities in seven countries where it already has operations: Bangladesh, Burma, China, Australia, Indonesia, the Philippines and Thailand.New offshore projects are planned in Vietnam and Cambodia, according to Joseph Geagea, managing director of the company's Asia South Business Unit. However, the main activity would be in Thailand, Indonesia and Australia, he said.The region's largest gas and oil producer said the Asia-Pacific budget accounted for 20% of the group's global upstream investment budget.Mr Geagea said the region's demand for oil and gas had been growing rapidly for several years, making it the world's largest consumer with a 23% share of global oil and gas demand of 133 million barrels of oil equivalent per day (boed) in 2005, equal to the United States.Asia-Pacific demand is expected to meet 29% of world demand in 2030, forecast at 199 million boed.Tara Tiradnakorn, president of Chevron Thailand's exploration and production unit, said upstream natural gas exploration in Thailand required an investment of $3.1 billion from this year to 2022 for additional output of 740 million cubic feet per day (mmcfd) in 2012, compared with 500 mmcfd last year.Its major resources in Thailand will come from the 330-mmcfd Platong 2 field and the remaining 170 mmcfd from existing platforms in the Gulf of Thailand.Chevron last year produced 1,638 mmcfd of gas, representing 48% of the total supply in the country.Net daily production of oil and gas was 224,000 boed from its 20 sites in the Pattani Basin in the Gulf of Thailand.In Indonesia, the group will develop a deep-water gas project at the Gehem and Gendolo fields, while it will also expand crude production at North Duri, its largest field in Indonesia.

Samak says he has talked to Cambodian Govt over joint tourism development
March 9, 2008Prime Minister Samak Sundaravej said Sunday that he has talked to the Cambodian government over proposal to jointly develop tourism industry of the two countries.He said Thailand would develop roads to link the two kingdoms so that tourists could travel by buses from Thailand to Cambodia.He said the joint development could allow foreign tourist who visit Pattaya to continue to visit Cambodia with convenience.
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Cambodia's thriving real estate market enriches the elite
Sunday, March 9, 2008Political stability and robust economic growth of nearly 10 percent have lured investors to the real estate market that has seen prices surge over the last few years — though they are still lower than in neighboring Vietnam or Thailand.
Prime city land prices have tripled over the last two years to US$3,000 per square meter. Those kinds of returns have drawn rich and middle-class Cambodians, as well as those living abroad."In buying and selling land, they could get profit 100 or 200 percent a year, if they make the right bet on the right location," said Dith Channa, the sale manager of CPL Cambodia Properties Ltd., a Phnom Penh-based real estate agency.World City Co. Ltd., a South Korean company, is investing US$2 billion to build a "satellite" urban complex called Camko City on a 120-hectare (300-acre) area on the northwest side of Phnom Penh. The project, the single biggest foreign direct investment in Cambodia to date, will include residential, commercial and public facilities — villas, condos, trade and financial centers, office buildings, shopping centers, hotels, schools and hospitals.Meanwhile, at a busy corner leading up to the city's landmark Independence Monument, an old government hospital has been torn down to make way for a 42-story condominium and shopping complex worth about US$250 million. That's going to dramatically change Phnom Penh's skyline, where the tallest building now is a 15-story hotel.The towers will have about 500 units of apartments, office space and retail shops with price tags ranging from US$112,000 to US$1.8 million a unit. Construction will start next month and take 3 1/2 years to complete, but Kim said nearly half of the units have already been bought.----------
Cambodia to expand [Sihanoukville] international airport
07 March 2008Access to Cambodia is set to be improved in the future, with plans to expand Sihanoukville airport, according to reports.The government is set to invest around $35m (£17.3m) as it attempts to develop the Cambodian tourism industry.Finance minister Keat Chhon said that the developments will turn Sihanoukville airport into a thriving international hub, according to the Cambodia Daily newspaper.Larger aircraft will be able to land at the airport, with runways set to be extended to 2,500 metres this year and eventually to 4,000 metres.The expansion plans have been enabled by a loan that was given to Societe Concessionaire des Airports, the company that operates Sihanoukville, along with Siem Reap and Phnom Penh airports.Cambodia is situated in south-east Asia, where it is sometimes overshadowed by the more popular locations of Thailand, Malaysia and Indonesia.
Gov't, UNDP Fight Harmful Car Air-Conditioners
07 March 2008
The Ministry and Environment and UNDP said Friday they would help car owners pay to have polluting air-conditioners in old cars updated.Cars built before 1996 have air-conditioners that cool through the use of chlorofluorocarbons, or CFC, a chemical compound harmful to the atmosphere's ozone layer.UNDP officials said Friday they would help car owners change to healthier systems, subsidizing half the cost of the upgrade. Cambodia has 23 garages that can change the system, including 13 in Phnom Penh, for a cost of about $52.Khieu Muth, secretary of state for the Ministry of Environment, said that the ministry has been working on the problem with UNDP. Cambodia, which leads the region in such efforts, expects to emit no harmful CFC by 2010, he said.