H.E. Sok Siphanna talks about the potential of rice trade

H.E. Sok Siphanna talks about the potential of rice trade

(in Khmer language)

Part 1:

Part 2:

Riel reacts on Fed stimulus

PP Post, FRIDAY, 05 NOVEMBER 2010 15:02 NGUON SOVAN

CAMBODIA’S riel appreciated to 4,135 against the greenback at some money lenders yesterday, as the United States announced huge quantitative easing measures to kick start its economic recovery.
The value of the dollar has slipped since the Federal Reserve announced a plan on Wednesday to spend US$600 billion on government bonds over the next year as part of a scheme of quantitative easing.
The news – which was higher than many forecasts – lifted hopes that the world’s biggest economy could see stronger growth, although some policy makers fretted about the knock-on effects for Asian economies.
The dollar fell against other currencies following the Fed decision. It fetched 80.82 yen in Tokyo trade yesterday, slipping from 81.12 late on Wednesday in New York.
The dollar had fallen over the past few weeks as dealers anticipated the move, at one point hitting a 15-year low of 80.21 against the yen.
Meanwhile, the riel has appreciated after a six-month decline.

Cambodia, China announce 1.6billion dollar deal: officials

Thursday, November 04, 2010
AFP

China’s Wu Bangguo (L) toasts with Cambodian Prime Minister Hun Sen

PHNOM PENH — China will inject 1.6 billion dollars into Cambodian infrastructure over five years, officials said Thursday, just days after the US urged the country not to become too dependent on the Asian giant.

"Within the next five years, Cambodia and China will have 23 co-operation projects," government spokesman Khieu Kanharith told reporters after a meeting between China’s top legislator Wu Bangguo and the Cambodian Prime Minister, Hun Sen.

Hydropower dams, mining projects, bridges and railway linkswould be among the initiatives funded by China between 2010 and 2015, he added.

At their meeting in Phnom Pehn, Wu and Hun Sen witnessed the signing of 16 deals, including a loan agreement arranged by the Bank of China that will see Cambodia’s largest mobile operator CamGSM borrow over 590 million dollars.

China also plans to help Cambodia build a new railway to neighbouring Vietnam, providing one of the last missing links for a pan-Asian network that would connect Singapore with China’s Kunming by train, according to the spokesman.

He said Wu also promised to boost Chinese direct investment in the kingdom, which so far this year stands at 610 million dollars.

Rice is right at trade fair

PP Post, THURSDAY, 04 NOVEMBER 2010 21:04 SOEUN SAY

Indonesia is considering buying 300,000 tonnes of Cambodian rice, according to its ambassador.
Speaking at the Indonesian Trade Fair (pictured right) on Phnom Penh’s Diamond Island, Indonesian ambassador Soehardjono Sastromihardjo said that Cambodian rice imports were on the agenda.
“We want to import rice to our country. Now, we are looking for a lot [from Cambodia] – about 300,000 tonnes,” he said.
The ambassador hoped that trade between the two nations would also increase this year, perhaps by as much as 20 percent, and could be worth US$250 million in 2010. In addition, he said that Indonesia “wants to sell agricultural machinery to Cambodia, but now we are still in negotiations”.

Licences granted for Kingdom’s bourse

PP Post,  TUESDAY, 02 NOVEMBER 2010 19:37 NGUON SOVAN

 

Fifteen companies have been officially granted licences by the Securities and Exchange Commission of Cambodia to act for the Kingdom’s first stock exchange.

Commission chairman and Economy and Finance Minister Keat Chhon said granting the licences was a key step towards the bourse, scheduled to launch in July next year “at any cost”.

Banking boost

Phnom Penh post, SUNDAY, 03 OCTOBER 2010 21:18 NGUON SOVAN

Cambodia’s largest banks have reported substantial profit increases for the third quarter ending September, with demand for loans rising because of a resurgence in the garment, agriculture and tourism sectors.
Canadia Bank and ACLEDA Bank saw significant profit increases for the quarter from July to September compared to the previous three months, as industry officials voiced optimism about domestic economic growth.
The profit figures follow a spate of positive news for the Kingdom’s economy last week, including the Asian Development Bank increasing Cambodia’s growth forecast for this year to 5 percent from 4.5 percent and international experts at a conference in Malaysia lauding the forthcoming national stock exchange.
Canadia Bank – the Kingdom’s second-largest and most profitable bank last year – saw gross profits before tax increase by 14 percent quarter on quarter, according to Vice President Dieter Billmeier.
He said the increased profits enabled Canadia to boost its lending faster than expected with loans already surpassing its planned US$450 million budget for the year.

Plans for an Island, Far Away, and for a Tower, High Above – Thursday, 2.9.2010

The Mirror, Vol. 14, No. 680

As the Constitution of the Kingdom of Cambodia says, the “Cambodian people are the masters of their own country.” And in its Article 51, the Constitution, written in 1993 by the elected representatives forming the first National Assembly, who then established the Kingdom of Cambodia, were setting high goals for the future: “to restore Cambodia into an ‘Island of Peace’ based on a multi-party liberal democratic regime guaranteeing human rights and the respect of law, and responsible for the destiny of the nation.”

Recently, there were reports about some other high flying plans for Cambodia.

Islands are different from their environment – they can have a kind of life of their own.

The Pristine Island of Koh Rong – Picture: Hotel Online

Now there are big plans to invest millions of dollars – others say billions – to develop an island half an hour by boat off the coast of Sihanoukville – Koh Pich – into an ecologically sustainable resort area like the world famous tourism destinations of Phuket in Thailand or Bali in Indonesia. There had been no announcement about A bidding process which led to this contract for the 78 sqkm island – but this is similar to many other of the large, long range economic concessions. The Mirror had only briefly reported under the date of 12.8.2010:

• The Royal Government Gave Koh Pich Land Titles [to the Oversea Cambodian Investment Corporation of the director general of the Canadia Bank, Mr. Pung Kheav Se; the Koh Pich island covers a total area of 100 hectares and was contracted for 99 years for development]

The plans foresee really an island – something different from its environment of the country of Cambodia: a luxury resort, with hotels and a golf course an a yacht harbor – plus its own international airport. While international tourism so far has been mainly focused on Angkor Wat, this plan aims to add some new feature, comparable to other international island and beach tourism destinations in Asia.

But now one more grand plan was released – aiming still higher: To build the highest building in Asia, the second highest in the world. According to local newspapers, the Prime Minister said:

“Cambodia will build the tallest private building in Asia… I plan this building with the private sector, 555 meters… I think we can do it.”

Mr. Touch Samnang, responsible for planning in the Overseas Cambodia Investment Corporation, promoting this plan, is quoted to have said, “We have enough capital to build. We are not looking for investment partners.’ But for the technical construction we will need help from abroad.” The building would have commercial space for shopping and exhibition centers, but also residential sections. “It will reflect Phnom Penh. It is possible. It depends on the money, right? If you have the money, you can build anything.”

The press reports I have seen so far did not say anything about the need for such a building, and about its economic viability – for example calculating the prices for the rent of offices and housing in this 555 meter tall tower, totally depending or reliable electricity supply, etc. etc. But Mr. Samnang considers that this building “will be a triumph for Cambodia.”

“If you have the money, you can build anything.” For example also housing which the large number of people in Phnom Penh, who live in substandard crowded environments. If there exists a master plan how to solve the public housing needs in Phnom Penh during the coming years, we would appreciate to be informed where we can see it. The Mirror could be happy to help to share it widely, and invite to discuss it. After all, the Cambodian people are the masters of their own country.

Two Voices of the World Bank. Which One Says What? – Thursday, 9.9.2010

On 8 and on 9 September 2010, two high level statements from the World Bank were reported. Here follow some excerpts:

The Phnom Penh Post reported:

Chief Economist Meets Hun Sen, Praises Cambodia

The Chief Economist of the World Bank Justin Yifu Lin praised Cambodia for its economic development at a meeting with Prime Minister Hun Sen yesterday.

“Despite the world facing the financial crisis, Cambodia’s GDP is still positive,” Lin was quoted by Eang Sophalleth, spokesman for Hun Sen, as saying during a courtesy call to the Council of Ministers office in Phnom Penh.

The World Bank estimates that gross domestic product will rise 4.4 percent this year.

The spokesman said that Lin, who is also senior vice president of the World Bank, congratulated the premiere on the Kingdom’s development.

In response, Hun Sen highlighted that the government was trying to improve the economy through agricultural enhancements, physical and telecommunications infrastructure improvements, and energy and human resource development…

The Cambodia Daily reported one day later:

Economic Concessions Endanger Rights of Poor, World Bank Says

The World Bank on Tuesday warned that large-scale farmland purchases posed a threat to rights of farmers in Cambodia and elsewhere in the world, a conclusion that follows criticism by human rights workers of Cambodia’s economic land concessions to private firms.

Big land acquisitions by investors raise “a real concern about the ability of local institutions to protect vulnerable groups from losing land on which they have legitimate, if not formally recognized claims,” the World Bank said in a new report on growing global demand for farmland.

“The veil of secrecy that often surrounds these land deals must be lifted so poor people don’t ultimately pay the heavy price of losing their land,” World Bank Managing Director Ngozi Okonji-Iweala said in a statement.

Is one statement true, and the other is not? No. Both are true. The question is, however, who is looking at what, and for whose benefit. In macroeconomic terms, Cambodia is doing well – says the Chief Economist of the World Bank.

This does not lead to poverty alleviation helping a large number of Cambodian people, says the Managing Director of the World Bank.

The difference depends on the viewpoint. And depending on whether the interest is directed to overall finance figures of the country, or on the economic situation of many people in the rural countryside, different realities are seen.

The Managing Director of the World Bank sees a possible solution: “The veil of secrecy that often surrounds these land deals must be lifted so poor people don’t ultimately pay the heavy price of losing their land.” Worth to consider. Worth to do. Worth to observe if this is happening.

The Mirror, Vol. 14, No. 681, September 9th, 2010

GDP forecast: Analysts positive on growth

Phnom Penh Post, MONDAY, 13 SEPTEMBER 2010 15:00 MAY KUNMAKARA

Analysts believe Cambodia’s economy is set to match or surpass the International Monetary Fund’s forecast of 4.5 to 5 percent economic growth this year.
On Friday, the IMF issued its latest prediction for the Kingdom’s gross domestic product. Highlighting the role of anticorruption laws in improving international competitiveness and reducing business costs, senior economist at IMF’s Asia and Pacific department Olaf Unterroberdoerster said inflation, measured by the Consumer Price Index, was estimated at 4 percent in 2010.
GDP growth for 2011 and 2012 was forecast at about 6 to 7 percent.
He said that gains in tax collection offered the best hope to meet the dual objectives of securing fiscal sustainability and mobilising resources for development.
Other analysts welcomed the IMFs comments, and many were even more positive.
Senior researcher for the Economic Institute of Cambodia Neou Seiha said the forecast may yet be exceeded, predicting economic growth would increase from through November.
Bretton Sciaroni, Senior Partner of Sciaroni & Associates, agreed, highlighting growth potential in agriculture, tourism and garments.

Taking stock: Cambodia’s exchange

TUESDAY, 14 SEPTEMBER 2010 21:15 NGUON SOVAN

The government has said Cambodia’s first stock exchange will launch next July “at any cost”. As the country readies itself for the much-delayed bourse Inpyo Lee, project director of Korean Exchange, which holds a 45 percent stake in the Cambodian Securities Exchange, holds an interview with Nguon Sovan.

What  still needs to be done for CSX to launch in July?

Our project is now running to the finish line. We have almost completed our information technology system development and are now in the final stage of testing.

We are about to ship all the IT equipment and materials from Korea to Cambodia.

In the meantime, the first CSX board members meeting will be held soon. Then we will decide when we will apply to SECC to get a licence for CSX.

However, we need to develop more macrostructure – such as a balanced banking and financial sector, and an advanced accounting system.

Moreover, potential companies for listing must be carefully examined.   Another major issue is the education of potential investors, but CSX is preparing for that.

What have you observed about companies in Cambodia in terms of adherence to accounting standards, management systems and transparency? Are they qualified enough for listing?

For many companies, I think there is a long way to go to meet CSX requirements.

However, there are good, qualified companies that can be listed in the CSX next year – some companies already practice international
standards