Cambodian Garment Sector to Reach US$5 billion

The Cambodian garment and textile industry continues its upward momentum and exports are expected to reach about US$5 billion this year, Commerce Minister Cham Prasidh said at an opening ceremony of gems and jewelry, textiles, and mineral testing on March 5 in Phnom Penh.

The value of the country’s garment and textile sector was US$4.24 billion last year, making up 87 percent of the country’s total exports, valued at some US$5 billion. “Garment and textile is the leading sector in Cambodia and its outlook this year is very optimistic,” he said. “The potential to expand capacity means we expect exports to hit US$5 billion this year.”

In 2010, the Kingdom’s garment and textile exports grew by 25 percent over the previous year.

A new textile testing laboratory, which will be run by Intertek, which tests various materials in countries around the world, will ensure that Cambodian products meet international standards, which the country hopes will make them more attractive on the international market.

To be continued...

Source:  Economics Today, Issue 111, March 12-18
Link: http://www.etmcambodia.com/blog.php?article=287

Oji Paper to Establish Second Plant in Cambodia

Due to the rapid growth of the Cambodian economy and increasing need for corrugated boxes, Japan’s Oji Paper Company, Ltd. has said it will establish a new company incorporated in Cambodia and build a plant in the southeastern city of Sihanoukville, its second factory in the country. The company made the announcement on February 28 at a board of directors meeting, saying production capacity at its facility established in Phnom Penh in 2004, which makes both boxes and plastic bags, had almost been fully reached.

The company will invest 1.2 billion yen (approximately US$14.8 million) under the name of Ojitex Harta Packaging (Sihanoukville) Ltd. The facility will be set up in the Sihanoukville Port Special Economic Zone and is set to start operation in early 2013. Production capacity is estimated at 67 million square meters annually.

The new factory in Cambodia will bring the number of corrugated box plants the company has in Southeast Asia to 15.

To be continued...

Source: Economics Today, Issue 111, March 12-18
Link: http://www.etmcambodia.com/blog.php?article=291

Maybank Upgrades its Banking Products

Cambodia is a growing market that’s currently experiencing remarkable economic growth, and is expected to grow by 6.5 percent this year.

Amid the overall positive outlook of the country, there are a growing number of affluent and high-income customers as well as professionals. In response, Maybank is upgrading its banking products to serve its widening range of customers, both foreign corporations and local businesses to contribute to the progress of Cambodia’s economy. As the effort of innovation to develop a banking solution to meet financial challenges in Cambodia, Maybank is launching the Maybank Premier Current Account for Cambodian entrepreneurs and professionals as part of its continuing effort to offer customers value added and innovative banking products.

Jubely Pa, Maybank Cambodia Country Head, noted Maybank was first established in Cambodia in 1993 with the goal to serve the banking needs of Singaporean and Malaysian ventures in Cambodia for infrastructure, manufacturing and services. As Maybank intends to play a bigger role in Cambodia’s economy, it’s necessary to expand its network and offer a wider range of services in an overall attempt to secure a larger customer base in the Kingdom.

To be continued...

Source: Economics Today, Issue 110, March 05-11
Link: http://www.etmcambodia.com/blog.php?article=261

Cambodia’s 1st IPO Will Start Trading in Mid April

The Phnom Penh Water Supply Authority (PPWSA) began its book building process on Feb 29 with about 13 million shares to prepare for its Initial Public Offering (IPO), which aims to list on the Cambodia Stock Exchange (CSX) on April 18 this year.

PPWSA’s IPO will be the first IPO in Cambodia and also the first in Cambodia’s history of it’s soon-to-open security market.

Dong Hyuk Yoon, Representative of Yong Yang Securities, said that PPWSA has issued 13,045,975 shares as its IPO with 1,000 riel or US$ 0.25 of par value and the offering price is between 4,050 riel to 6,350 riel (US$1-1.57) as total value is 52.8 billion to 82.8 billion (US$13-20.4 million).

About 70 percent of 13 million shares have been sold during the book building process while another 30 percent will sell during the subscription period, which runs from March 29 to Apr 4 for the unsuccessful bids and for those who did not participate in the book building.

For the book building process, investors have to book 10 percent of the amount which requirement of a minimum of 1,000 shares.

To be continued...

Source: Economics Today, Issue 111, March 05-11
Link: http://www.etmcambodia.com/blog.php?article=268

ADB to Discuss on Global Economic Crisis at Annual Meeting

At the 45th Asian Development Bank (ADB) Annual meeting, which takes place in Manila, Philippines from May 2-5 this year, the governors’ seminar will focus on Asia’s response to the global economic crisis, according to an ADB press release.

“Good governance is essential for ensuring sustained, inclusive growth and creating an environment for a competitive private sector. The mutual commitment of both the Government and ADB to good governance is reflected in the theme of this year’s Annual Meeting,“Inclusive Growth through Better Governance and Partnerships,” and several of its seminars and knowledge sharing events are dedicated to discussing this issue,” President Haruhiko Kuroda, President of ADB said during meeting with Philippines’s President Benigno S. Aquino III and Finance Secretary Cesar Purisima on March 1 as the part of preparations for the organization’s Annual Meeting.

To be continued...

Source: Economics Today, Issue 110, March 05-11
Link: http://www.etmcambodia.com/blog.php?article=272

Brazil Forges Closer Links with Cambodia

Brazil is promoting bilateral cooperation with the Cambodia in the areas of politics, agriculture, trade, investment and other fields.

Both countries on March 2 signed a Memorandum of Understanding (MOU) between Ouch Borith, Secretary of State of the Ministry of Foreign Affairs and International Cooperation and Maria Edileuza Fontenelle Reis, Undersecretary-general for Asia of the Brazilian External Relations Ministry, with the aim of boosting bilateral cooperation between two countries.

Brazil, the largest economy in South America, not only expects to expand its cooperation with Cambodia, but also with other countries in Southeast Asia.

“The MOU aims to promote bilateral cooperation between Cambodia and Brazil in all fields, especially in politics, agriculture, trade and investment,” Ouch Borith said after signing ceremony.

To be continued...

Source: http://www.etmcambodia.com/blog.php?article=273

Nokia Asha 302 Arrives in Cambodia

Nokia’s new Asha 302 smartphone has arrived in Cambodia. The new smartphone is well suited for developing countries like Cambodia, given that its’s selling for roughly US$155.

It comes in three colors: dark grey, white and red. The Nokia Asha 302 is powered by 1 GHz processor, which works fast and is difficult to find in other QWERTY devices offered in the current market.

It is the first of a series of 40 phones to support mail for exchange, which lets the user access mails, contacts, and calendars on an exchange server, which is a significant step in helping families, friends and businesses connect with each other while achieving productivity and employee satisfaction as a result of greater mobility.

To be continued...

Source: http://www.etmcambodia.com/blog.php?article=279

Phnom Penh Hosts 2nd ASEAN-EU Business Summit

Cambodia’s Ministry of Commerce, the EU Delegation to Cambodia, Eurocham Cambodia and the Cambodian Chamber of Commerce are organizing the 2nd ASEANEU Business Summit (AEBS), which will take place in Phnom Penh on Apr 1.

About 300 international business leaders are slated to convene during a day of meetings, discussions and closed door sessions on how to improve business in the most relevant trade and investment sectors. It will also bring together entrepreneurs, private investors and public policy-makers from both the EU and ASEAN to address important issues concerned with EU-ASEAN trade relations, while identifying new business and investment opportunities on both sides.

The event will provide participants from the EU and ASEAN private sector with an opportunity to exchange views and voice their concerns on ASEAN-EU trade and investment relations directly with the ASEAN Economic Ministers (AEM) and the EU Commissioner for Trade, Karel De Gucht.

To be continued....

Source: http://www.etmcambodia.com/blog.php?article=280

Cambodia’s First Ever IPO

The Phnom Penh Water Supply Authority (PPWSA) has announced it will be starting its book building process to determine the stock pricing for its Initial Public Offering (IPO) with the aim of being listed on the Cambodia Securities Exchange (CSX). The final offering price will be announced after getting approval from the CSX and the Securities and Exchange Commission of Cambodia (SECC).

It will be the first Initial Public Offering in Cambodia, and the first in the history of Cambodia’s stock market, which is slated to start trading in the near future.

Book building is essentially a process used by a company which wants to raise capital through an Initial Public Offering (IPO) and a Follow-on Public Offering (FPO) to aid the price and demand discovery.

To be continued...

Source: http://www.etmcambodia.com/blog.php?article=242

Japan Provides Assistance to Build Taches Rivers Wharf

The Government of Japan is providing US$102,805 to the Taches Commune Council at Kampong Trakacg District in Kampong Chhnang province to construct a wharf on the Taches River Wharf.

The grant contract was signed on Feb 22 between Kawamura Hiroshi, Deputy Chief of Mission/Minister of the Japanese Embassy in Cambodia, and Suos Siphay, Chief of Taches Commune Council, at the Embassy of Japan in Phnom Penh.

Kawamura Hiroshi said that the grant will enable the Taches commune council in Kampong Chhnang Province to construct a concrete river wharf and pontoons along the Tonle Sap River as replacement for a wooden facility that was in poor condition.

“With this new wharf, 28,720 people from four communes will be able to cross the Tonle Sap River safely throughout a year and they will face no difficulty to access schools and clinics,” he said.

To be continued...

Source: http://www.etmcambodia.com/blog.php?article=243