Cambodia, Pakistan plan to ink agreement on protection of trade, Investment

Pakistani ambassador to Cambodia on Thursday met with Dr. Sok An, deputy prime minister and minister of office of council of ministers on strengthening tourism and bilateral cooperation.

Ambassador Dr. Fazal-ur-Rahman Kazi said: “The two countries should sign a bilateral agreement on the protection of trade and investment as soon as possible”. Pakistan has opened its economy and this has caused no more problems”, the Ambassador assured the Deputy Prime Minister. Dr. Kazi said that current two-way trade is worth $25 millions and there is much more room for improvement in various sectors.

Dr. Sok An said: Cambodia fully supports these points. Dr. Sok An said that the Kingdom of Wonder has high potential for investment, especially in tourism and agriculture. Tourism arrivals in Siemreap province, the home of Angkor, have recently increased 27 percent.
Cambodia receives an estimated 3 million tourists a year.Cambodia has commercial flights linking Siem Reap to Sihanoukville, where the Kingdom’s beaches have been recognised among the 32 Most Beautiful Bays in the World. The Kingdom of Wonder has an estimated 1000 historic temples, including 90 historic sites in Siemreap province, said Dr. Sok An.“Once our bilateral cooperation in tourism is in place, other sectors will follow suit”, Dr. Sok An told the diplomat.

The Deputy Prime Minister recalled that previously Japan led tourist arrivals in Cambodia, but it is now replaced by South Korea thanks to bilateral cooperation in tourism. H.E. Dr. Sok An also encouraged Pakistani investors to look into investment in aviation to support an increasing tourism sector. “Tourism cooperation is really a window for all sectors”, Dr. Sok An assured the diplomat.

Pakistan has good services in banking and railroads in addition to training in English, a commercial language, said the Ambassador.Pakistan also looks to help train Cambodians in the oil and gas sector, and Cambodian Buddhist monks would be invited to visit a holy site that has been existed for 5,000 years in Pakistan. Pakistan congratulated Cambodia, which is now the rotating chair of the Association of Southeast Asian Nations, will host the ASEAN summit next year.

Source: thesoutheastasiaweekly.com 

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Kingdom awaits US trade law

A jeweller displays gold necklaces at a shop in Phnom Penh earlier this year. Photo by: Sreng Meng Srun

THE US House of Representatives has renewed a trade law experts said could have a substantial effect on Cambodia’s exports to the United States, as well as the future of the Kingdom’s manufacturing sector. 

The Generalized System of Preferences (GSP) program waived tariffs on about US$13 million of the Kingdom’s $2.3 billion in exports to the United States in 2010, largely on more skill-intensive products. 

The number represents a roughly 225% increase since 2005, which is seen as a sign Cambodia’s manufacturing industry is growing ever more sophisticated. 

While the GSP law still requires Senate approval before it is passed, insiders have said it would have a significant impact on the Kingdom as its economy develops.

“GSP has been only a minor factor in US-Cambodian trade until quite recently,” Ed Gresser, president of the Democratic Leadership Council, said via email.

“It is likely to grow more important as Cambodia develops, diversifies and begins to export things like jewellery, foods and small-scale machinery.”

The GSP, originally approved by the US Congress in 1974, waives duties on certain exports from about 130 developing countries. The waivers apply largely to skill-intensive goods such as jewellery, electric wiring and wooden doors, but exclude the vast majority of Cambodia’s garment exports.

The duty-free status the Kingdom did enjoy, however, stopped late last year when the US Congress adjourned without renewing the program. GSP now awaits a review in the Senate, though a deadline for passage has not been set.

Cambodia exported $1.29 billion in garments to the United States in the first eight months of 2011, according to statistics from the Ministry of Commerce, little of which would be eligible for duty-free importation into the United States. 

Bicycles, which Cambodia began exporting in 2009, were the Kingdom’s biggest GSP product, with exports reaching 40,000 a year, Gresser said. Other duty-free exports from Cambodia included mattresses and some craft products like baskets, he said. 

The program pushes Cambodian manufacturers toward higher-value production in an industry sector almost wholly dependent on garments and textiles, Chheng Kimlong, a lecturer of business and economics at the University of Cambodia, said yesterday. 

“We cannot rely on garments to support the export industry forever,” he said. New tariffs on goods after the expiration of GSP have worked against Cambodians hoping to export to the United States, he added.

Cambodia was declared a “least-developed beneficiary country” in 1997, qualifying it – in theory – to export some 4,300 products duty-free to the United States, US Embassy in Phnom Penh spokesman Sean McIntosh said via email.

“GPS gives Cambodia a competitive edge in the US market,” he said, adding that gold necklaces, textile headbands, plastic bags and some silk products formerly enjoyed duty-free treatment under the GSP program. 

Regionally, GSP has become a major factor in trade with the United States. About 18 percent of Thai exports to the United States are GSP products, ranging from rubber tyres to microwave ovens, the Democratic Leadership Council’s Gresser said. GSP exports are also significant in the Philippines and Indonesia, he added. 

While the GSP program is not highly controversial, it’s packaged with other bills likely to generate debate on the Senate floor, Gresser said. Renewal of the GSP program is linked to approval of free-trade agreements with South Korea, Panama and Columbia.

The expiration of the GSP program costs US importers $2 million per day in tariffs, according to a statement from the Coalition for GSP. According to PPP

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CDC approval Investment coming from Cambodians

CAMBODIAN businesses have emerged as the Kingdom’s leading source of investment funds, surpassing China in the first four months of 2011, according to figures from the Council for the Development of Cambodia (CDC).

Cambodian investors received approval to invest US$1.2 billion, while China and the United States invested $1.09 billion and $95 million respectively between January and April.

The total value of approved projects in Cambodia doubled in that period, with 27 projects, worth $2.506 billion, approved by the CDC, a 176 per cent increase on the 35 projects, worth $907 million, certified during the corresponding period last year.

The tourism sector benefited most from the increase in capital investment during the first four months, according to CDC director of the evaluation and incentive of investment Youn Heng.

“In this period we saw a large increase [in capital], especially in the tourism sector, showing the confidence investors have regarding Cambodia’s situation,” he said.

As the backbone of the Kingdom’s economy, investments in the tourism, industry and service sectors were crucial,  University of Cambodia Business and Economics lecturer Chheng Kimlong said. according to ppp

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Vietnamese projects get thumbs up in Cambodia

The Cambodian government will grant licences to five projects invested by Vietnamese investors with total investment capital of $1 billion.


The commitment was made via seven memorandum of understandings signed between Cambodian and Vietnamese government agencies at the second Investment Promotion to Cambodia Conference held in Phnom Penh on April 24.
The projects comprise Lower SeSan II hydro-electronic project developed by the EVN International, an iron ore exploration project developed by Hoang Anh Ratanakiri Company, a cassava flavour production factory, a refined sugar production factory developed by International Star Company and a plantation developed by Hoang Anh Oyadav Company.
There were around 165 enterprises participating in the conference including 94 Vietnamese enterprises. According to a report from Vietnam’s Foreign Investment Agency, Cambodia ranked the second investment destination of Vietnamese investors with 87 projects and $1.9 billion as of February 28, this year.
The first Investment Promotion to Cambodia Conference was held in Ho Chi Minh City in December 2009, raising Vietnamese investors’ interest in Cambodia. At that time, Cambodian and Vietnamese government agencies signed a memorandum of understanding on cooperation to support exploration and exploitation of a bauxite mine in MoldulKiri, next to Vietnam’s Central Highlands’ Dak Nong province, home to Vietnam’s first alumina project. The Cambodia’s Ministry of Industry, Mines and Energy also signed an agreement on exploration and exploitation and granting licence to the joint venture of alumina exploitation (Cambodia - Vietnam) in December, 2009.
The memorandum paved the way for Vinacomin and Cambodia’s Nadaco in cooperation with BIDV to produce 1.5 million tonnes of alumina in the first stage with total investment capital of $2.5 billion and 2.5 million tonnes in the second stage with investment capital of $3.5 billion.
BIDV chairman Tran Bac Ha said Vietnam’s large corporations wereng implementing their investment in Cambodia in sectors such as finance, banks and insurance, telecom, air carriers, agriculture, energy and mines.
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VN leading fertilizer producer to expand agri-business in Cambodia
PetroVietnam Fertilizer & Chemicals Corporation (PVFCCo), a major fertilizer manufacturer in Vietnam, announced Saturday plans to expand its agricultural technical transfer programs for Cambodian farmers in at least three more provinces over the coming year.
“In 2011, PVFCCo intends to maintain its leading position in the domestic market while expanding its activities abroad. In Cambodia, we are particularly keen to continue implementing our programs while improving our image and position in the local market,” said Mr. Nguyen Hong Vinh, PVFCCo’s vice president for sales and distribution.
He was speaking at an announcement ceremony in the Cambodian capital Phnom Penh.
The manufacturer, which shares almost 50 per cent of the domestic demand for urea, opened its Phnom Penh representative office in May last year.
PVFCCo has since then launched agricultural technical transfer programs for local rice farmers. Numerous workshops have been held and demonstration plots established in several provinces such as Battambang, Kompong Chhnang and Takeo.
Mr. Vinh said PVFCCo would continue to expand such technical transfer programs to farmers in Kompong Cham, Kompong Thom and Kandal provinces.
“Besides the domestic market, PVFCCo has been trying to establish positions in other regional countries. Cambodia is our top priority thanks to its close geographic location, economic structure and cultural attitudes,” he added.
In addition to training Cambodian farmers, PVFCCo donated 50 tons of urea to poor farmers in Svay Rieng and Prey Veng provinces last year. The company also donated $25,000 to the families of victims of the Diamond Island Bridge stampede tragedy last November that killed almost 350 people.
PVFCCo enjoyed a successful year in 2010 with impressive business results.
At its annual meeting of shareholders in HCM City on April 8, the company announced an after-tax profit of 1,703 billion dong ($82 million) for 2010 which was 84 per cent higher than forecast by the company. Sales came to 6,999 billion dong ($337 million) in the same period. During the year, PVFCCo produced 807,000 tons of urea which was 9 per cent above the company’s forecast and more than 10 per cent higher than average production in recent years.
According to Vietnamnet.vn, 3rd May, 2011

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Inventor hammers out a de-mining machine

FOUR years of work on a homemade de-mining machine has paid off for “part time” Siem Reap expat and US inventor Gary Christ, with a new version of his apparatus shipping out from Chicago next month bound for Phnom Penh, where it will undergo field testing aimed at securing funding to roll out the machine nationwide.

Christ, who dubbed the machine “The Peace Hammer”, based on the way it pounds the ground with reinforced steel weights at up to 10 times the force of a human footstep, told 7Days the new version of his machine, which he first tested in Siem Reap, incorporates feedback received from the government-run Cambodian Mine Action Centre during its first round of trials in 2007.
“CMAC said they need something extremely manoeuvrable so I upgraded the machine with remote-controlled steering and lifted it onto caterpillar tracks to make it bi-directional. They like the idea and they’ve been extremely supportive of the new version.”
Cobbled together on Christ’s Illinois farm out of donated scrap metal and tractor parts, the inventor explained his machine works by using a hydraulic crane to lift steel weights at the front of the vehicle and drop them like hammers on top of suspected mines.
“The arm of the machine lifts the weights with hydraulics and holds it in suspension before it’s released remotely. Once the hammer hits the ground without detonating anything, it’s safe to walk on.”
The hammer mechanism, which is suspended from the front of the vehicle, is ringed with tyres which act as shock absorbers to diffuse the explosive force of any mines the machine destroys.
“Most anti-personnel mines contain around 200 grams of TNT. Once the hammer hits one and it explodes, this force is absorbed by the layers of tires cushioning the hammer. If it’s a larger mine and you need more impact you just lift the weights a little higher before dropping them.”
Christ explained his machine is able to travel across more difficult terrain than older de-mining vehicles which use a “flail” technique to whip the ground in front of the machine with chains.
“With a flail-based machine if it’s a heavily wooded or rocky area you’re out of luck, if you use the chains they’ll be caught on the all obstacles. My machine is more manoeuvrable and able to get into areas you couldn’t otherwise.”
After Christ’s machine arrives in Phnom Penh, it will have additional equipment installed, a bigger motor fitted, and undergo testing at the headquarters of de-mining machine manufacturer Development Technology Workshops before field trials scheduled for September.
Christ, who has been a regular visitor to Cambodia since 2001, said the idea of building a de-mining machine first occurred to him through his work with the Angkor Association for the Disabled in Siem Reap, and his ultimate goal is to see landmine victims using his device.
“The biggest reason I’m doing this is to employ people with disabilities in a job that will make Cambodia safer and give them the satisfaction of getting rid of landmines so they don’t hurt anyone else. After all, who knows more poignantly about what a landmine can do than someone who’s stepped on one?”
While the prototype cost only $2500 to build out of recycled and donated materials, Christ estimates the price of mass producing his de-mining machine will be around $50,000.
He said: “The next step is to contact de-mining organisations to hopefully get a contract to manufacture some for their use.”
According to PPP, April 29, 2011

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Thai-Cambodian border clashes may affect trade, investment: KRC

BANGKOK, May 2 - The ongoing Thai-Cambodian border clashes, if continued, will tend to lower the market share of Thai goods in Cambodia despite the continous growth of trade between the two countries, according to the Kasikorn Research Center (KRC). The leading think tank said the situation may affect, at a certain level, the confidence of Thai exporters and investors having businesses in Cambodia. They may be pressured by investors from other countries in the Association of South East Asian Nations (ASEAN), especially Vietnam. Trade and investment between Thailand and Cambodia has risen continuously risen from US$1.4 billion in 2007 to US$2.5 billion last year, with Thailand gaining the positive balance of trade. The two countries' border trade counts about at least 70 per cent of overall trade. In this year's first quarter, trade between both countries increased to Bt16 billion, or counting for 14.3 per cent, year-on-year. However, the export volume in March grew only slightly. Thailand held the biggest market share among Cambodia's imported goods in 2008-2009 although the figure dropped from 34.9 per cent in 2008 to 29.9 per cent in 2009 following border clashes. As a result, more merchandise from Vietnam entered the Cambodian market, rising from 19.5 per cent in 2008 to 23.7 in the following year, while Vietnam's exports to Cambodia last year increased 35.3 per cent, counting about US$1.5 billion. The value of exports rose again 44.3 per cent in this year's first quarter, compared to that of Thailand at 31.1 per cent. Vietnam is also the biggest investor in Cambodia with its accumulated investment value about $49.5 million, followed by Thailand at US$47.2 million and Singapore with US$24.9 million respectively. Thai investment in Cambodia decreased significantly from US$30.7 million in 2008 to only US$1 million last year. (MCOT online news)

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Gold Price Rise Blamed on Inflation Fears

A rush by members of the ruling junta and their families to buy gold was cited as a major reason for the sudden rise in the price of the precious metal in Burma recently. Trade in gold was slack until Dec. 29, in line with trends on the international market. But at the end of the year and in the early days of 2010, gold shops reported a boom in business. In that time, the gold price increased from 594,000 kyat (US $594) a tical (16.4 grams) to 598,500 kyat ($598), peaking on Jan. 5 at 602,100 kyat ($602). The gold price increase occurred as reports circulated that low-paid civil servants would receive a salary increase of 20,000 kyat ($20) a month, and many junta members were investing in gold as a hedge against inflation.

Junta Issues New Government Bonds, Securities

Many investors snapped up newly issued Burmese government treasury bonds and securities, released on Jan. 1 by the Myanmar [Burma] Central Bank. More than 1 billion kyat (US $1 million) worth of bonds and securities sold on the first day. In addition, the Central Bank issued two-year treasury bonds for the first time and raised the maximum investment per speculator from 1 million kyat ($1,000) to 10 million kyat, making government bonds more attractive to long-term investors. The Central Bank has recently changed some of its investment regulations allowing speculators to buy and sell bonds freely and will pay 11 percent and 11.5 percent interest rates for three-year bonds and five-year bonds respectively.

Tay Za Granted Electricity Contract

The Htoo Trading Co Ltd., owned by Tay Za, a business crony of senior Burmese generals, and other companies were awarded a contract to build, operate and sell electricity from two hydro power projects in Burma. Sources in the Rangoon business community said the contract between the government and Htoo Co. was for 75 years. Observers in Rangoon say privatizing hydro-power projects could be a first step in the military government’s attempt to resolve electricity shortages in the country. Almost the entire country lacks enough electricity to fill its needs.

China Eyes Burmese, Cambodian Textiles
China appears interested in cheap-labor garment factories in both Burma and Cambodia under the terms of the new China-Asean Free Trade Area agreement. Beijing has already singled out textiles as a sector where the two regions could move closer, according to the official newspaper China Daily. Many garment factories in Cambodia—where thousands of workers are employed at low wages—are Chinese-owned. Some Asean countries have expressed concern that they risk being flooded with cheap Chinese goods which could undermine their own industries and lead to unemployment. The new agreement reduces or eliminates import tariffs on a huge range of goods. Burma along with Vietnam, Cambodia and Laos, however, will not have to drop their tariffs until 2015 because of their underdeveloped economies.

Global Recovery Stronger Than Expected: IMF
Dominique Strauss-Kahn, the managing director of the International Monetary Fund (IMF), said China and other developing Asian economies are leading a global recovery that is faster and stronger than expected, but warned that money rushing into emerging markets could lead to asset bubbles and a sudden drop in foreign investment. He strongly suggested that the IMF would raise its 2010 global growth forecast from the 3.1 percent it projected in October. While hundreds of billions in stimulus spending by governments around the world avoided another Great Depression, he said, the most important risk facing the global economy is deciding how and when to reverse those policies and deal with resulting debt burdens. The best indicators for timing fresh growth strategies are monitoring private demand and employment, he said.
According to irrawaddy.org, May 02, 2011

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Construction approvals to double

CONSTRUCTION starts approved by the government more than doubled in the first quarter of 2011 compared year on year, according to figures from the Ministry of Land Management, Urban Planning and Construction.Construction projects worth US$324 million were given the green light in the first three months to the end of March, compared with projects worth $159 million in the same period of 2010, the figures show.Department of Construction Director Lao Tip Seiha said the increase came as a result of the ministry’s efforts to make it easier to do business in the sector.“In three months of this year, we saw an increase in construction investors coming to ask for licenses,” he said, adding the same period last year had been “so quiet”. Lao Tip Seiha said a number of large developments were approved, including a Koh Kong province hydropower plant, garment and textile factories, hotels and gas stations. He also pointed to large several housing developments receiving approval during the period, including a New World project consisting of 1,440 houses in Sen Sok district, a 320-house Camko City project in Russey Keo district, and another phase of development on Diamond Island “We are very happy to see value construction increase and we hope that it will continue increasing for the first half of this year,” Lao Tip Seiha said. “We had fewer projects than last year, but we received a lot of requests for large-size construction  evelopments.” Industry insiders said their businesses had also seen large growth in the beginning of the year, though some claimed the size of the increase had been unexpected. Cambodia Properties Limited Managing Director Cheng Kheng said that foreign investors were returning to invest in Cambodia. “Transactions of large property developments are improving in the outskirt areas [of Phnom Penh],” he said, calling the increase a “surprise”. “My business is running much better. It has increased 100 percent in the first three months of the year compared to the same period last year,” he said. CPL claims to have closed deals with investors from Vietnam, Philippines, Malaysia, and in particular, South Korea. CB Richard Ellis Cambodia Country Manager Daniel Parkes said that 2010 probably represented the property market’s bottom, adding the large increase in the first quarter was partly attributable to the drop in the previous year. “Certainly, as an indication of general market activity, we have seen an up-tick and despite challenges to the global economy Cambodia has potential for sustained growth,” he wrote. “We have seen more investment in public sector projects, and the private sector will follow where the government leads in terms of intelligent investment in infrastructure and public works projects.” Some experts expressed caution against placing too much stock in approval figures. Leopard Capital Managing Director Douglas Clayton said yesterday that planning permissions were only a crude indication of property trends, and not as convincing as construction activity, unit sales or occupancy rates. "I think the property market remains fairly subdued in Phnom Penh," he said. Previous figures from the Ministry of Land Management, Urban Planning and Construction showed that 2,149 construction projects worth a combined US$840 million were approved during 2010. That compared to 2,230 projects worth $1.988 billion approved back in 2009.

According to PPP. May 02, 2011

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CPL inks deal with South Korean firm

A LOCAL real-estate company has found a South Korean partner to capitalise on the Kingdom’s burgeoning property market, officials said yesterday.
Cambodia Properties Limited and South Korea’s Pacific Appraisal Co, a consultation and real-estate valuation firm, have signed an alliance agreement in which the two companies will work together to keep up with the sector’s latest developments.
Pacific Appraisal Chief Executive Officer Lee Sang-koo noted Cambodia’s status as a developing country and the opportunities inherent in doing business here.
“We are very interested to do business in Cambodia’s real-estate sector as it’s very popular among investors,” he said.
“We hope that we can work well [with CPL] and grow our businesses,” said Lee Sang-koo.
CPL’s Managing Director, Cheng Kheng, said he was excited about the partnership, saying Pacific Appraisal was a top firm in its field.
“This is our first big company-to-company agreement. We’re confident in them and our chances for success in the future,” he said.
Transactions in property market in the first quarter were up over last year, Cheng Kheng said.
“Our business was good for the first three months of this year. We closed many deals with investors from Vietnam, Philippine, Malaysia and especially South Korea,” he said, adding that the investors were interested in land development for food and beverage processing plants.
According to PPP. April 29, 2011

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Hong Kong, Macau business chamber in Cambodia marks 13th anniversary

PHNOM PENH, April 28 (Xinhua) -- The China Hong Kong and Macau Expatriate and Business Association of Cambodia (CHKMEBA) on Thursday marked its 13th anniversary, pledging to bring more investment to Cambodia.
The celebration was attended by Cambodian Deputy Prime Minister Sok An, Deputy Prime Minister Yim Chhay Ly, and Chinese ambassador to Cambodia Pan Guangxue, as well as about 350 Chinese and Cambodian businesspeople.
Speaking at the celebration, Yum Sui Sang, chairman of CHKMEBA, said that since 1998, a lot of Hong Kong and Macau investors have done business in Cambodia mainly in garment industry, banking and finance, insurance, transportation and tourism industry.
"With the support from the government of Cambodia and Chinese embassy, we would continue to bring more investment from Hong Kong and Macau to Cambodia," he said.
Sok An said that the association is very important to strengthen and expand business relation and cooperation between Chinese Hong Kong-Macau investors and Cambodian investors.
"The government will fully support the association in its efforts to bring more Chinese investors to Cambodia, which contributed to the economic and social development of Cambodia," he said. "We also appreciate the association for its contribution to education, culture and humanitarian activities."
According to dep-news, 28 April 2011

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Chevron takes another step

Cheveron Cambodia President Steve Glick’s arrival in Phnom Penh this week has been touted as a sign of the firm’s commitment to its offshore Block A oil project.
The company is actively exploring offshore Block A, and plans to make a final investment decision on whether to proceed by the end of 2011, according to company officials.
“Chevron is committed to this project, and building our office strength here in the Kingdom is a clear indicator of that commitment,” Glick said in a speech on Wednesday.
Gerry Flattery, who previously oversaw the Block A project, was based in Thailand.
The firm has said it expects to receive a 30-year production permit in the second quarter of 2011. Government officials have set a deadline of December 12, 2012, to begin oil extraction in Cambodia.
Cambodian National Petroleum Authority Vice Chairman Ho Vichit said the authority welcomed Glick’s arrival.
“We are pleased to see this project move ahead with the commitment that Chevron and the Block A partners have demonstrated to oil and gas development in Cambodia,” he said in a speech on Wednesday.
Company spokesman Gareth Johnstone said Chevron has indicated it is keen to move the project forward, adding: “We want to make sure everything’s in place when we do that.”
He said that the design phase of the project was ongoing, but also highlighted challenges with producing oil from its Cambodian concession.
“Block A is a challenging development as the oil is located in dispersed, small pockets,” he said.
“Unlike other reservoirs around the world where there are large deposits of oil or gas – offshore Nigeria and offshore northwest Australia are examples – Block A will require multiple wells to extract the resource,” he said.
The company drilled three successful exploration wells in Block A last year, but Johnstone emphasised it was just one of a range of factors taken into consideration when reaching a final investment decision.
He also listed three principles that apply for the firm regardless as to where it operates. Chevron requires a transparent and consistent regulatory regime, contract sanctity and adherence to the rule of law, he said.
“Taking into account all these factors, we are saying: we expect to make a final investment decision this year,” he said.

According to PPP, 29 April 2011

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Cambodia's Property Recovery Helped by Foreign Ownership Law

Cambodia's property market recovery is being helped by a new foreign ownership law. This law allows foreigners to own apartments and condo units, but not land. Despite this, the Cambodian market still has a long way to go. Read more about this in the full article by Global Property Guide.


Cambodia’s property market is still somewhat depressed. However, the new foreign ownership law is undoubtedly helping the property market recover.
The number of property transactions increased threefold in 2010 thanks to the new law, according to Sung Bonna, President of National Valuers Association of Cambodia (NVAC).
Foreigners are now allowed to own apartments and condominium units, but not land, and therefore not the first floor of buildings, under the new foreign ownership law approved by King Norodom Sihamoni in May 2010. In 2010, tax revenues from property-related transactions soared 60% to KHR76.21 billion (US$19.5 million), from KHR47.7 billion (US$12.2 million) in 2009. This is still far below the level of transactions seen in 2007 and 2008 - but it is a real recovery.
“We have already sold 80% of our project, and 60% is foreign-owned,” said Un Mouy of Two Town Co., the developer of Bal Resort. ’Thanks to the new law our project sales are better and better.’
The Camko City megaproject is also benefitting. “We have sold better since the National Assembly approved the foreign ownership law, and we strongly hope that we will get more and more foreigners to buy our condos this year (2011),” said Kheng Ser of World City, the developer of Camko City. About 70% of Cambodia’s upper-end real estate market relies on foreign investors.
In 2005, the Cambodian government had amended the investment law to allow foreign ownership of buildings. However, the law was never implemented and the idea floundered, since the country was then experiencing one of Asia’s biggest property booms.
Land ownership is against the Constitution and is still out of the question.. However land can be held by foreigners on long (renewable) leases, and through majority locally-owned companies incorporated in Cambodia. These structures are argued by lawyers in Cambodia to be safer than legal schemes in any other South East Asian country in which foreign land ownership is formally prohibited.
Struggling construction sector
Due to the crisis, Cambodia’s biggest residential developments have been badly hit:
In August 2010, Posco Engineering & Construction stopped work on the three-tower Star River complex, due to weak demand.
In September 2010, the construction of the US$300 million Gold Tower 42, was also halted, after Seoul-based Hanil Engineering & Construction went into financial restructuring. The 42-storey building in the heart of Phnom Penh is twice as high as the city’s current tallest building
The developers of the US$500 million Grand Phnom Penh International City, a 4,000 residential villas and apartment complex unveiled in 2006, have admitted that they are suffering from financing problems and low demand.
The Diamond Island City, unveiled in 2006 to include condominium units and villas, hospital, restaurants, and shopping centres, was downsized due to the global crisis.

Camko City, a 120-hectare satellite city which initially included 6,000 residential units at a projected cost of US$2 billion, has also been delayed and downsized due to the global crisis. World City Co. Ltd., a South Korean company, is the megaproject’s developer.
In 2010, there were a total of 2,149 construction projects approved, down by 3.6% from 2,230 approved projects in 2009, according to the Ministry of Land Management, Urban Planning and Construction.
Property prices still falling
Residential land prices fell 11.4%, across the country in 2010, to KHR6.1 million (US$1,550) per sq. m., according to the National Valuers Association of Cambodia (NVAC). This follows a 40% drop in land values in 2009.
House prices dropped by around 10% in 2010, according to Seng Sopheak of CPL Cambodia Properties Ltd.
The boom before the bust
Cambodia’s housing market enjoyed unprecedented price rises from 2004 to 2007, with property prices rising by about 25% to 40% annually. Land price increases were at first confined to Phnom Penh, Siem Reap and Sihanoukville, but the boom spread right across Cambodia. Other hot spots were the border areas with Vietnam and Thailand and, to a lesser extent, Laos.
Residential land prices in Phnom Penh soared to KHR6.25 million (US$1,600) per sq. m. in 2007 from KHR2.34 million (US$600) per sq. m. in 2006.
Cambodia also experienced a construction boom, particularly in Phnom Penh, fuelled by foreign investment. The government is aggressively pro-development, and squatters and other eyesores are simply cleared away, by a government which is in league with wealthy developers.
The value of construction projects skyrocketed to more than US$3.2 billion in 2007, from US$500 million in 2003, according to a United Nations Development Programme (UNDP) study. Average project costs increased to US$1.65 million in 2007, from just US$157,000 in 2003.
A downturn started in July 2007 after the government announced new investment guidelines for developers.
Then in mid-2008, the bubble burst. The global economic and financial crisis had adversely affected South Korea, the country’s biggest investor. As a result, South Korean investors either pulled their investments or delayed their projects in the country.
Investments in real estate developments in the country have continuously dropped from US$3.19 billion in 2008, to US$1.99 billion in 2009, and finally to just US$840 million in 2010, according to the Ministry of Land Management, Urban Planning and Construction.
By end-2010, land values in Phnom Penh, the capital, were about 40% to 50% down on their peak values in mid-2008.
Rents falling, yields high
Apartment rents rose by about 25% to 35% from 2005 to mid-2008, according to NVAC. However, rents started to fall during the second half of 2008.
In the second quarter of 2010, average monthly rents across all grades fell by up to 25% q-o-q, according to Keuk Narin of Bonna Realty Group.
The average monthly rent for a one-bedroom class-A units were KHR1.56 million (US$400) to KHR3.91 million (US$1,000) in Q2 2010, down by up to 23% from KHR1.95 million (US$500) to KHR5.1 million (US$1,300) from the previous quarter.
Two-bedroom apartments rent for KHR4.7 million (US$1,200) to KHR5.86 million (US$1,500) per month in Q2 2010, down by up to 42% from the same quarter last year.
The average monthly rent for a three-bedroom class-A apartments located in central Phnom Penh was KHR8.6 million (US$2,200) to KHR9 million (US$2,300) in Q2 2010, down by up to 22% from the previous quarter.
Rents for residential apartments are expected to continue to drop in 2011 due to weak demand and increased supply of apartments, according to local real estate experts.
Small-scale luxury apartments, which are usually between four and six-storey buildings, are widespread across Phnom Penh, particularly in Keng Kang 1 and Toul Kork. Some of the most popular apartments in the capital are the Pasteur Villa, City Palace Apartments and Grand Residence.
Gross rental yields on apartments located in Phnom Penh are now very attractive. First floor apartments are the most attractive, with rental returns of around 11%, according to Global Property Guide research of May 2010. Second floor Phnom Penh apartments are also attractive, with gross returns of around 7.7%.
Nonexistent mortgage market
Cambodia’s mortgage market is still very small. Mortgages and housing loans were introduced to the real estate sector only in 2008. The total amount of outstanding mortgage loans was KHR455.3 billion (US$116.5 million) in November 2010, or only 1% of GDP, according to the central bank, the National Bank of Cambodia (NBC).
Nevertheless the banking sector could face serious risks during the next two years if the collapse of property prices continues, the Economist Intelligence Unit (EIU) has warned.
From January to November 2010, the average interest rate on loans denominated in US dollars was 16.3%, according to the NBC. The Riel loan rate was far higher, averaging 22.8%.
GDP growth of 7% forecast
GDP growth in 2011 is forecast to be 7% (Ministry of Economy and Finance) despite the weak construction sector. Cambodia’s rapid economic growth is being driven by strong garment exports, agriculture, and rapidly rising tourism. Tourist arrivals rose 16% in 2010 to 2.5 million. Cambodia’s annual GDP growth from 2003 to 2007 roared along at 10.6%, then slowed to 6.7% in 2008. There was a 2% GDP contraction in 2009 due to the global crisis, but in 2010 GDP growth recovered to 4.8%, with inflation at 4%.
The Cambodian economy is heavily dollarized; the Riel (KHR) and the US dollar (USD) can be used interchangeably. However, the government has a long-term goal of reducing its reliance on the greenback, which accounts for more than 90% of all currency in circulation, according to the Asian Development Bank (ADB).
Cambodia is still dependent on foreign assistance, which accounts for about half of the government’s budget.
What next for Cambodia’s real estate market? “The market has already hit the bottom – it will stabilize this year,” said NVAC President Sung Bonna. “I hope that it will start to increase again for the next two years, but it is not likely to be a boom like in 2007 and mid-2008.”
According to nuwireinvestor

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Asian Currencies Weaken, led by Rupiah, on Middle East Concern

April 26 (Bloomberg) -- Asian currencies weakened for a second day, led by Indonesia’s rupiah, as political violence in the Middle East intensified, sapping demand for emerging-market assets. The Bloomberg-JPMorgan Asia-Dollar Index, which tracks the region’s 10 most-traded currencies excluding the yen, fell to a one-week low after Syrian security forces attacked the city of Daraa yesterday, killing at least 20 people, in a bid to crush anti-government protests. The MSCI Asia-Pacific Index of regional equities dropped by the most in a week and the euro declined.

“The Middle East situation is quite turbulent at the moment,” said Tetsuo Yoshikoshi, a Singapore-based senior economist at Sumitomo Mitsui Banking Corp. “Traders see the euro being sold and we have seen a correlation between the euro and Asian currencies.”

The rupiah slid 0.7 percent to 8,666 per dollar as of 9:56 a.m. in Jakarta, according to data compiled by Bloomberg. South Korea’s won, Thailand’s baht and the Philippine peso dropped 0.3 percent to 1,084.65, 29.99 and 43.32, respectively.

The rupiah declined the most in three months on speculation the central bank intervened to curb gains that may hurt exports and amid concern U.S. economic growth is slowing.

Gross domestic product in the U.S. rose at a 2 percent annual pace in the first three months of the year from the previous quarter, according to the median estimate of economists surveyed by Bloomberg before data due April 28. That compared with a 3.1 percent annualized gain in the fourth quarter.


‘Investors Are Cautious’

“Bank Indonesia fears that if the currency appreciates too fast it may reduce the country’s export competitiveness,” said Mika Martumpal, a currency analyst at PT Bank Commonwealth in Jakarta. “Investors are cautious as we’re expecting a lot of important data this week” from the U.S., he said.

South Korea’s won dropped the most in two weeks after the financial regulator said it will audit holdings of currency derivatives at four banks, fanning concern trading curbs will be stepped up to limit bets on appreciation.

The Financial Supervisory Service will inspect transactions conducted by the local branches of Credit Agricole SA and ING Groep NV for four days starting today, while Woori Bank and Standard Chartered First Bank Korea Ltd. will be investigated from May 2, Doh Bo Eun, head of the regulator’s foreign-exchange coordination team, said yesterday.

“There are concerns the authorities will impose financial regulation after it warned of rising short-term debt,” said Cho Young Bok, a currency dealer at Daegu Bank in Seoul. “Anxiety over further regulatory moves is keeping the won low.”

Thai Border Clashes

The baht retreated from a four-month high as Thailand renewed a call for one-on-one talks with Cambodia yesterday after three days of fighting along a disputed border which has killed 11 soldiers.

“Investors are a bit concerned about the conflict between Thailand and Cambodia,” said Sumitomo Mitsui’s Yoshikoshi.

Elsewhere, Taiwan’s dollar was little changed at NT$28.938 against its U.S. counterpart, according to Taipei Forex Inc. Malaysia’s ringgit weakened 0.2 percent to 2.9960 and Singapore’s dollar dropped 0.3 percent to S$1.2373. China’s yuan strengthened 0.03 percent to 6.5256.

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Camera capture: Distributor for Canon opens outlet

PHOTOGRAPHY firm i-Qlick Cambodia opened an outlet in Phnom Penh on Saturday, with the Prime Minister’s son in attendance.

The three-storey outlet on Sihanouk Boulevard distributes Canon cameras, as well as other imported electronics for sale.

Andy Lee, Country Director for i-Qlick, said his company was attempting to capitalise on a rising demand for photography products, as well as bring consumers the latest in technology.

Prime Minister Hun Sen’s son, Hun Manet, said at the launch the country’s political stability and business-friendly environment make it attractive for investors.

According to PPP

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Large Vietnam deals inked

A man walks through a sugarcane field. Sugarcane was one area targeted by Vietnamese investment yesterday. Photo by: HENG CHIVOAN

VIETNAM Prime Minister Nguyen Tan Dung yesterday urged Vietnamese investors to look to Cambodia for increasing opportunities, as the two nations signed nine Memorandums of Understanding worth nearly US$900 million.

Although Vietnamese investments in Cambodia currently total more than $2 billion – excluding yesterday’s MoUs – Nguyen Tan Dung said: “It is still not enough to harness the huge potential that Cambodia has.”

“So I would like to encourage more Vietnamese investors to consider ventures in Cambodia, and I urge Vietnamese investors already here to strengthen and expand their capital investments to build closer economic cooperation...” he said at the 2nd Cambodia-Vietnam Conference on Investment Promotion held at Phnom Penh’s Peace Palace yesterday.

The largest MoU signed yesterday was for a hydroelectric plant on the Lower Sesan River, which has been pegged at $700 million by Royal Group, a partner in the joint venture, though a number of other deals were signed.

MoUs were also inked for a $32-million iron ore project by Hoang Anh-Ratanakiri, part of the Hoang Anh Gia Lai Group conglomerate, a $20-million cassava plantation by Cam-Viet Rural Development Ltd in Ratanakkiri province, and $75-million investment by Star Premier International for sugarcane farming in Kampong Speu province.

Agreements for investments in rubber plantations and a carbon credit project by Indochina Green JSC Company were also signed yesterday, though dollar figures were not announced at the conference.

Nguyen Tan Dung said the latest investments join significant Vietnamese projects ongoing in Cambodia, in areas such as telecommunications, banking and finance, mineral resources, and rubber plantations.

Prime Minister Hun Sen pointed to Cambodia’s open business environment and investment laws as important in attracting outside investment – with agriculture in particular offering opportunity.

“Cambodia has abundant potential in the agriculture sector, and with preferential law and economic incentives, it is a good opportunity for investors to grow rice, corn, cassava, bean, rubber and agro-industry, as well as in food-processing plants.”

“Beside the agriculture sector, we have some others sectors with strong potential. Infrastructure, industry exports, oil and gas, mining and tourism are waiting for investment from foreign investors, including those from Vietnam,” he said.

University of Cambodia professor of business and economics Chheng Kimlong said yesterday’s agreements were a positive sign for bilateral trade between the countries, which has been increasing year to year.

“The deal shows the very strong trade relationship between Vietnam and Cambodia, which has been building up for a long time,” he said, adding that Vietnam investors have been able to take market share in the agriculture and agri-business sectors.

Peter Brimble, Senior Country Economist for the Asian Development Bank, said that while he hadn’t reviewed the MoUs, the Vietnamese government was serious about promoting investment in the Kingdom.
“There’s no question that Vietnam is going to play a bigger role in Cambodia,” he said.

Trade between Cambodia and Vietnam increased by nearly 50 percent in the first quarter of the year compared the same period last year, according Vietnam Trade Office figures released last week.

According to PPP

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Border closure costing [Thai] traders dearly

Trade worth 15 to 20 million baht a day is being lost due to the closure of the Chong Chom border checkpoint in Kab Choeng district of Surin because of the renewed fighting on the border with Cambodia, a local business leader said on Monday.

Published: 25/04/2011


A large quantity of good, particularly fuel, was held up on the Thai side of the border unable to cross to its usual destination in O-Samet in Cambodia’s Oddar Meanchey province, said Nanthawat Kijsakulpaisarn, secretary-general of Surin Chamber of Commerce.
Cross-border trade at this checkpoint was worth some 800 million baht annually. The closure was costing between 15 and 20 million baht a day in lost revenues, he said.
He called on the Thai and Cambodian governments to urgently hold talks to end the conflict.
The border crossing has been closed since Friday.

According to Bangkok Post

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[Vietnamese] Prime Minister Dung holds talks with Cambodian leader Hun Sen

Prime Minister Nguyen Tan Dung (left) greets Cambodian counterpart Hun Sen in Phnom Penh. — VNA/VNS Photo Duc Tam

PHNOM PENH (25th April)— Vietnamese Prime Minister Nguyen Tan Dung on Saturday held talks with his Cambodian counterpart, Hun Sen, in Phnom Penh on issues relating to the two countries' relations and other matters of common concern.

During the talks, the two PMs expressed their delight in the solidarity, friendship and co-operation enjoyed by Viet Nam and Cambodia, which they said would go from strength to strength.

They also applauded preparations made for the second Viet Nam – Cambodia Investment Promotion Conference, which was hosted by the two PMs yesterday.
They also applauded preparations made for the second Viet Nam – Cambodia Investment Promotion Conference, which was hosted by the two PMs yesterday.

During the conference, the two sides said they expected to sign a number of co-operative agreements in areas such as aviation, banking, telecommunications, hydropower, mining, rubber and sugarcane production.

The two leaders expressed their belief that the conference would be a success, and contribute to bolstering economic co-operation between the two nations.

Dung and Hun Sen acknowledged the great effort made by the two countries' offcials border demarcation and marker planting, adding that the completion of the programme would bolster borderline peace, friendship and co-operation and boost development and prosperity in the region.

The two Government leaders asked border demarcation and marker planting forces to continue to closely co-operate and do everything in their power to fulfil the targets that had been set by the two countries.

The two PMs agreed to entrust the two countries' Joint Committee for Land Border Demarcation and Marker Planting to designating where to position markers No 30 at the Le Thanh (Gia Lai) – Odadao (Ratanakiri) international border gate, No 275 at the Tinh Bien (An Giang) – Phnom Don (Takeo) international border gate, marker No 314 in Kien Giang and Kampot provinces (the last on the land border line between the two countries). Further posts are earmarked for Chang Riec, Tan Ha, Tan Dong and Tan Binh (Tay Ninh Province of Viet Nam), On Lung Chrey, Thlok Trach, Bung Chron and Phum Don (Kampong Cham Province of Cambodia).

The settlement of these areas would be implemented under the principles specified by the 1985 Treaty on Delineation of National Boundaries and the supplementary treaty in 2005 signed by Viet Nam and Cambodia, they said.

They added that border demarcation would be based on existing maps and on the traditional work habits of the people in both countries.

The PMs said the border demarcation and marker planting work along the entire Viet Nam – Cambodia land border would be completed by the end of 2012.

Meanwhile, on the subject of building hydropower works on the Mekong River, such as the Sayabouly dam, the two leaders said they hoped countries bordering the river, such as Laos, Cambodia, Thailand and Viet Nam, together with the International Mekong River Commission would take into account the possible negative impacts of the work.

Hun Sen discussed with his Vietnamese counterpart the border conflict with Thailand in recent days. Dung expressed his deep concern about continued clashes over the Cambodian – Thai border.

He said Viet Nam hoped the two sides would do their utmost to avoid armed conflict and would settle their differences peacefully according to international law and the UN Charter, and in the spirit of friendship and solidarity within ASEAN.

He added that Viet Nam would like Cambodia and Thailand to implement commitments reached at the ASEAN Ministerial Meeting Retreat in Jakarta on February 22, 2011, to prevent the situation from becoming more complicated.

After the talks, the Vietnamese and Cambodian PMs witnessed the signing ceremony of a memorandum of understanding between the two governments on borderline adjustments and a co-operative agreement on aviation.

Lasting impressions

On arrival in the Cambodian capital, Dung paid a courtesy visit to former Cambodian King Norodom Sihanouk, and met Acting Head of State and President of the Senate Samdech Chea Sim and Acting President of the National Assembly Nguon Nhel.

During the meeting with King Norodom Sihanouk, Dung said the visit to Viet Nam by the former King, the Queen Mother and the King of Cambodia in June 2010 had left a great impression on the Vietnamese people. He also thanked the former King for the great support Cambodia had given Viet Nam during its struggle for national independence and during the later reunification and construction process.

He said he was delighted with the great achievements made by the Cambodian people over the past few years and affirmed Viet Nam's commitment to maintaining and consolidating the good relations enjoyed by the two countries and with the region and rest of the world.

The former Cambodian King warmly welcomed Dung's visit to Cambodia and expressed his deep gratitude to the Vietnamese Government and people for the invaluable support and assistance they had given.

He said he hoped the friendship and co-operation enjoyed by Cambodia and Viet Nam would continue to prosper.

During Dung's meeting with Acting Head of State and President of the Senate Samdech Chea Sim and Acting President of the NA Nguon Nhel, the two sides expressed their satisfaction with the traditional friendship enjoyed by the two countries and co-operation between the two parliaments and people.

The leaders of Cambodia's legislative bodies thanked the Vietnamese people for their support during the process of national revival.

They said they would do their utmost to foster greater ties between Cambodia and Viet Nam.

Investment Promotion

Prime Minister Nguyen Tan Dung and his Cambodian counterpart Hun Sen yesterday co-chaired the second Viet Nam-Cambodia Investment Promotion Conference.

The one-day event attracted 600 representatives from ministries and agencies and 200 leading enterprises of the two nations.

Dung told the conference he appreciated the outcomes of bilateral co-operation in economics and trade since the first conference was held in HCM City in December, 2009.

Those outcomes would be a foundation for further fostering co-operative relationships and developing the potential of the two sides, he said, and the conference would become a regular information exchange channel for both business communities.

Dung asked Vietnamese companies doing business in Cambodia to comply with the country's laws, manners and customs and pay attention to ensuring employment and social welfare as well as eliminating hunger and reducing poverty to maintain the good image of Vietnamese businesses in the country.

"The Vietnamese Government is determined to boost and facilitate Vietnamese enterprises' investment to foreign countries in general and to Cambodia in particular," Dung said.

For his part, Hun Sen said the conference would contribute to consolidating the two nations' traditional friendship and co-operation.

He said the Cambodian Government was making every effort to create a favourable investment environment and implement reforms in specific fields in which the country had an advantage, such as telecommunications, rubber planting, minerals and hydropower plants.

To encourage Vietnamese investment in Cambodia, Minister of Planning and Investment Vo Hong Phuc suggested State agencies of the two sides speed up the implementation of bilateral agreements such as on investment protection and promotion, double taxation avoidance and rubber planting co-operation.

He urged the prompt completion of the legal system of investment and business, reform of administrative procedures and improvement of infrastructure, especially transport and electricity, which were needed to encourage the participation of economic sectors.

Meanwhile, representatives of the Cambodian Development Council and Cambodian Chamber of Commerce introduced the country's economic development strategy and investment incentives, and commitments of the council, to Vietnamese enterprises operating in Cambodia.

Hoang Anh Gia Lai Group chairman Doan Nguyen Duc said Cambodia was a country full of untapped potential. It was convenient that the two countries had one common border, with many border gates, and had similar cultures, he said.

The private group has had large investments in Cambodia in minerals, rubber and sugar processing,

Ho Chi Dung, general director of Viettel Telecom, which has poured US$235 million in to Cambodia, said two years after the group entered the market, its Metfone subscribers increased by three times.

Over the past year, Viet Nam and Cambodia have signed more than 60 co-operation agreements and formed the necessary co-operation mechanisms.

This contributed greatly to increasing two-way trade from $950 million in 2006 to $1.8 billion in 2010. Viet Nam is now one of the three biggest foreign investors in Cambodia with 87 projects worth over $2 billion, focusing on telecommunications, airlines, agriculture, energy, minerals and banking.

Also at the conference, the two Government leaders witnessed the signing of memorandums of understanding on:

° Promoting investment between the Ministry of Planning and Investment and the Cambodian Investment Council,

° Granting an investment licence to the Se San 2 hydropower plant project between Viet Nam's Ministry of Industry and Trade and Cambodia's Ministry of Industry, Energy and Mining.

° Licensing other production projects.

On the same day, the two leaders cut the ribbon to open the Viet Nam-Cambodia Securities Company. — VNS

According to khmerization

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Cambodian market welcomes Vietnamese businesses

(VOV) - Prime Minister Nguyen Tan Dung’s official visit to the Kingdom of Cambodia is expected to open up more opportunities for Vietnamese investment in the country as well as bilateral economic cooperation.

Many major Cambodian newspapers run articles about it and reviewed positive achievements in bilateral trade.

In 2010, trade revenues between Vietnam and Cambodia hit more than US$1.8 billion, up more than 35 percent from the previous year. Vietnam also invested over US$2 billion in nearly 90 projects in Cambodia. Nearly 470,000 Vietnamese tourists visited Cambodia in 2010, ranking first and accounting for one fourth of the country’s total foreign tourists.

A Cambodian entrepreneur of Vietnamese descent, Xieng Minh, told VOV that he hoped PM Dung’s visit will help Vietnamese enterprises boost the presence of their goods in Cambodia. He added that Vietnam’s agricultural products have secured a firm foothold in the market and he expects more opportunities in other fields.

DPM (PetroVietnam Fertilizer & Chemicals Company) is an example of a successful Vietnamese business that brings practical benefits to the local people.

In 2010, DPM transferred techniques to some Cambodian farmers and helped them double their rice output to nearly nine tonnes per hectare. This year, the company has set a target to expand this technical transference to three provinces – Kampang Cham, Kampang Thum, and Kandal.

Kieng Kieng, a farmer from Kandal province, praised Vietnamese experts for giving farmers like him expertise in rice cultivation and helping them create a better model for growing rice. “Before this we farmers only cultivated according to our experience,” he said.

With assistance from Vietnamese agriculturists, Cambodia is expected to achieve its target of exporting one million tonnes annually by 2015.

According to english.vovnews.vn

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Cambodia, Vietnam sign investment contracts of nearly 1 bln USD

 PHNOM PENH, Apr. 24, 2011 (Xinhua News Agency) -- Some 500 Cambodian and Vietnamese businessman met here on Sunday in the 2nd Cambodia- Vietnam conference and some investment projects worth nearly 1 billion U.S. dollars were signed.

The annual conference was chaired by the two countries' prime ministers.

Speaking in the conference, the visiting Vietnamese Prime Minister Nguyen Tan Dung said that to date, excluding the investment costs, which would be signed in the conference, Vietnamese investments in Cambodia have mounted to more than 2 billion U.S. dollars in the fields of telecommunication, aviation, banking and finance, mineral resources, and rubber plantations.

Cambodian investments in Vietnam have mounted to 51 million U.S. dollars.

Nguyen Tan Dung encouraged more Vietnamese investors to consider their ventures in Cambodia, and urged existing Vietnamese investors to strengthen and expand the investment to build closer economic cooperation.

Meanwhile, Cambodian Prime Minister Hun Sen said that Cambodia is implementing favorable investment policies for overseas investors.

"There are good opportunity for investors in growing rice, corn, cassava, bean, rubber industries," he said.

He also stressed the government has made its efforts to develop new industries such as car assembly plants, electronic manufacturing.

(Source: Quotemedia)

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