New high-speed entry in crowded Cambodian ISP field

A new internet service provider has launched in Cambodia offering highspeed, optical fiber technology in the hopes of carving out a niche for itself among corporate customers in an already crowded arena.

The company, Mega, is elbowing onto a playing field that already has 28 ISPs, but which has invested in an FTTH (fiber-to-the-home) infrastructure that will offer faster speeds but at relatively low cost.

“We’re offering dedicated internet access and differentiating ourselves by focusing purely on high-quality dedicated internet access,” Spencer Weed, chairman of Mega, told Economics Today.

The Cambodian internet market has gone through a period of rapid growth recently as companies increasingly invest in infrastructure upgrades, such as fiber-optic cables, which feature speeds much faster than earlier satellite-based systems.

To be continued...

Source: Economics Today, Issue 114, April 02-08

Link: http://www.etmcambodia.com/blog.php?article=345

Women mean business in Cambodia

They’re a driving force in the economy, but face high hurdles to advancement

Entrepreneurship in Cambodia is showing its feminine side. Women are more active than ever in Cambodian business, at least on the micro and small end of things. And while traditional Khmer culture often relegated women to the home, more and more have decided to take their talents to the marketplace. Today, more businesses are owned by women than men.

That’s not to say it’s all rosy for females in the Cambodian business world. They still face mighty obstacles, especially if they want to take their small or micro enterprises to the next step. Higher rates of illiteracy and poor educational backgrounds make it harder for women to succeed than men. Still, the outlook for women in business is looking better than it ever has.

Heng Seltik, national coordinator for a project by the International Labor Organization promoting women-owned businesses and gender equality, says the role of Cambodian women entrepreneurs has changed dramatically over the last few years. She says women are very active in many types of businesses today and often running those enterprises with a high degree of professionalism.

To be continued...

Source: Economics Today, Issue 114, April 02-08
Link: http://www.etmcambodia.com/blog.php?article=323

Pain at the Pump

Cambodians Hurting as Gas Prices Climb and Threaten the Larger Economy

Filling up at the gas station probably counts as few people’s favorite activity, but over the past year, it’s become almost a source of dread for many Cambodians as prices at the pump have jumped at a rate that far outstrips inflation.

According to data from the National Institute of Statistics, while the inflation rate in Cambodia was 5.8 percent from January 2011 to January 2012, gas prices jumped a whopping 10.8 percent. Consumers have been shocked recently as the increases have become more regular, and many have come to simply expect paying more every time they fill up.

The blame can be partly placed on rising world oil prices. Earlier this month, Brent crude topped US$128 per barrel, although prices have eased somewhat since then. Still, a sharp spike in the first two months of this year has kept prices at the pump high. Tensions in the Middle East and concerns about sanctions against Iran over its nuclear program have made investors nervous. Analysts do not think prices will come down below US$100 a barrel very soon.

Source: Economics Today, Issue 112, March 19-25

Link: http://www.etmcambodia.com/blog.php?article=303

Keeping Cool is Good Business in Cambodia

Cambodia’s healthy economic growth rates of the last decade have led to the rapid expansion of the urban middle class and the wealthy. These people want to stay cool in the country’s tropical heat, and they have the money to pay for it.

In addition, the growing numbers of tourists from cooler climes like Europe may be willing to sweat as they scramble around the temples of Angkor Wat, but they want plenty of refrigerated air back in their hotel rooms.

Demand for air conditioning units in Cambodia has shot up recently and is on an upward trajectory that appears to be here for the long haul.

“Cambodia’s economy is growing very fast and the demand of modern equipment, especially air conditioning, is growing along with it,” said Sok Pheng, chairman of IP Hybrid Air Con, a seller of air conditioners in Cambodia.

To be continued....

Source:  Economics Today, Issue 112, March 19-25

Link: http://www.etmcambodia.com/blog.php?article=314

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