Elusive equality

Study find boosting women’s opportunities can boost growth, but there’s a long road ahead

Improving women’s access to jobs and economic opportunity could significantly boost productivity in Cambodia, according to World Bank report published in June. But, the study’s authors added, women’s economic progress has been slower in the Kingdom than in many other countries in the region and the government should work to level the gender playing field.

The study found that if women were to work in the same sectors as men and have the same access to resources, worker output in the Asia-Pacific region could be 7 to 18 percent higher.

----------

For full text, please visit http://www.etmcambodia.com/blog.php?article=491

or Economics Today Magazine, issue 125

The promise of pork

While the Kingdom’s biggest industrial pig farming company is seeing steady growth as the nation’s population and hunger for pork grows, small pig farmers are having a hard time of it in the face of fluctuating prices and lowercost imports from Thailand, according to experts and insiders who came to a recent briefing session in Phnom Penh on the swine industry.

Last year, pig production reached over two million head, up slightly from 2010, but that is down from 2.7 million in 2006.

The raising of pigs has a long tradition in Cambodia and is still one of the most important livestock-related sectors in the country, even considered by many only second to rice cultivation.

To be continue...

Source: http://www.etmcambodia.com/blog.php?article=476

Sweet deal

Canadian firm to grow natural sweetener in Kampong Speu

Stevia Nutra Corporation, a Canadian agro-business company, has announced its decision to grow stevia in Cambodia’s Kampong Speu province. The company will grow the plant, whose leaves are used as a sweetener or sugar substitute, on just over 20 hectares of land close to Phnom Penh.

Stevia Nutra has incorporated Mighty Mekong Agro Industries Co. Ltd, a Cambodia- based wholly owned subsidiary, which it says will allow the company to capitalize on significant labor and technical advantages as well as provide access to prime fertile lands, potentially in other areas of the Mekong River sub-region as well.

To be continue...

Source: http://www.etmcambodia.com/blog.php?article=481

Paddy potential

Indonesian rice sector representatives in Cambodia on fact-finding mission

Earlier this month, 60 representatives of the Indonesian rice industry as well as that country’s commerce ministry visited the factory belonging to Golden Rice (Cambodia), a leading rice miller in the Kingdom, to explore the potential for rice exports to the sprawling archipelago.

“Cambodia right now is a big rice exporting country and Indonesia is a big rice importing country,” said Benny A. Kusbini, chairman of the National Board of Indonesian Farmers’ Union. “Our group has come to look at how both countries can cooperate on rice,” he said.

Be to be continue...

Source: http://www.etmcambodia.com/blog.php?article=469

Exploratory study

Firms from the Chinese city of Liuzhou eye opportunities in Cambodia

Representatives from six large companies based in the city of Liuzhou in China’s southern Guangxi province recently visited Cambodia looking for investment opportunities and local business partnerships. The trade mission was led by Zheng Junkang, mayor of the city.

The six Chinese firms—Liugong Machinery Co., Liuzhou Chemistry Co., Liuzhou Tang Lili Import and Export Co., Liuyi Chemical Industry Co., Liuzhou OVM Machinery Co., and Liuzhou City Wei Ermu Prestressing Co.—are active in the machinery, automotive, iron and steel, fertilizer and chemical industries.

For more information, please visit http://www.etmcambodia.com/blog.php?article=456 

or Economics Today Magazine, Issue 122

ADB Institute Opens Developing Asia Journalism Awards Competition

The Asian Development Bank Institute today opened the 2012 Developing Asia Journalism Awards (DAJA) competition with a call for submissions of articles by journalists working in developing Asia and the Pacific.

"The DAJA competition is a unique opportunity to highlight the significant contribution of journalism and individual journalists to the development process in Asia," said Masahiro Kawai, Dean and CEO of the Asian Development Bank Institute, in opening the competition.

"Asian economies are changing rapidly," he said. "By providing clear and well-informed news reporting and analysis journalists play an important role in every society by helping the public better understand the issues and events shaping their future."

DAJA 2012 will focus on a critical question facing Asia and the Pacific: "Green Growth – or Growth versus Green?"

The Asia-Pacific growth and development story over the past five decades is unprecedented. And the rapid transformation of economies is continuing. But the process of rapid growth and rising prosperity has been resource and energy intensive. In many places the impacts on the environment have been severe. Often the poor and vulnerable suffer the greatest consequences.

It is now widely accepted that a new growth path is needed. Environmental damage is no longer viewed as an acceptable trade-off for economic expansion. Countries, cities, communities, and individuals around the region are acting on this belief.

"The choices are not easy. Economic growth is important. It creates jobs and raises resources to fund education, health, and other social programs critical to long-term development. But a business-as-usual scenario is no longer viable. Asia needs to find a new, sustainable way to grow and develop," said Mr. Kawai. "We hope the DAJA competition can explore this complex challenge through the work of journalists who are trying to understand and explain such issues better every day."

DAJA 2012 will highlight the opportunities, challenges, and solutions being uncovered as Asia and the Pacific seek a path to sustainable growth. Journalists are invited to submit published articles that explore the interaction between populations and the environment across the region.

• Can economies maintain rapid growth without damaging the environment?
• How are the development decisions and actions of communities, cities, and countries affecting the environment?
• What are individuals, community leaders, business people, politicians, the judiciary, governments and others doing to improve the balance between man and nature?
• How will the promotion of Green Growth impact efforts to alleviate poverty?

Possible topic areas include issues such as climate change (droughts, flooding, sea-level rise, etc.); energy use/efficiency; renewable energy; water, waste, and forest management; sustainable transport; pollution; urban development; and others.

In assessing submissions an international panel of judges will give special focus to stories that investigate how these issues are impacting the lives of the poor—the 1.8 billion Asians living on less than $2 a day—and stories that explore new ideas or approaches to managing environmental challenges that may be of use to others in Asia and the Pacific.

The deadline for submission of articles to DAJA 2012 is 31 August 2012.

The panel of judges will select 25 finalists. Cash prizes will be awarded to one Winner, one First Runner-up, one Second Runner-up and one Young Development Journalist of the Year (under age 30 as of 31 August 2012). All finalists will be invited to the Asian Development Bank Institute in Tokyo in November 2012 for a special DAJA forum and awards ceremony.

If you are interested in participating in the DAJA 2012 program, please register online. When you have registered, you will be sent instructions by email on how to login to your account to submit articles.

For information on competition rules and mechanics, as well as information on how to submit articles, journalists should visit the ADB Institute web site: ADBI Journalism Awards.

Source: http://www.adbi.org/news/2012/05/31/5069.daja.2012.entries.open

Vim and vigor

World Bank presents rosy outlook for Cambodian economy

Cambodia’s economy still shows signs of vigorous health despite the slowdowns in the key export markets of the United States and European Union, according to a report issued by the World Bank, which forecast the Kingdom’s GDP would grow by 6.6 percent in 2012.

6.6 percent in 2012. In its East Asia and Pacific Economic Update, released on May 23, the World Bank predicted slightly higher growth rates than the Cambodian government, the International Monetary Fund and the Asian Development Bank (ADB), all of which predicted the Kingdom’s economy would expand by 6.5 percent this year.

The report found that growth would be even higher in 2013, forecasting a 6.7-percent rate, slightly lower than the ADB’s forecast of 7 percent.

For more information, please visit http://www.etmcambodia.com/blog.php?article=444

or Economics Today Magazine, Issue 121

Giving them a fair shake

The Fair Trade certification aims to improve the status of producers in Cambodia

For Men Sinoeun, executive director of the Artisans’ Association of Cambodia, the problems facing craftspeople, artisans and small-scale producers in the country are many—they do not enjoy legal protections, market access or subsidies offered by some other countries. Their incomes are usually low and they often work in conditions that are poor, at best.

That is why his group is strongly promoting Fair Trade, a certification system that aims to ensure that producers receive a fair price for their products and that they adopt social and environmental standards which are sustainable. Products with the World Fair Trade Organization label are supposed to meet 10 principles, including fair trading practices, fair price, no child or forced labor, good working conditions, etc. On May 11, his group hosted an event to promote the Fair Trade to more producers and organizations in Cambodia.

For more information, please visit http://www.etmcambodia.com/blog.php?article=424

or Economics Today Magazine, Issue 120

Super Stalks

Bamboo could be basis for sustainable industry

Bamboo, one of the world’s fastest-growing plants, is used extensively in many parts of Asia for everything from food to musical instruments and furniture. But according to organizers of a recent conference on bamboo’s potential, the plant could form the basis of a sustainable and multifaceted industry, providing everything from materials for construction to fibers for the Kingdom’s garment industry and acting as a powerful weapon in the fight against climate change.

and traditionally, indigenous communities have made wide use of this largest member of the grass family for the construction of floating houses, or pens for aquaculture and livestock, according to Jeevanandhan Duraisamy, a climate change officer with UN’s Food and Agriculture Organization (FAO) and a speaker at the Bamboo Green Growth and Carbon Finance Conference in Phnom Penh.

Most fishing nets used in the Tonle Sap River are made using bamboo while Cambodians have long employed the material in cooking or building grain storage structures and fencing. Traditionally, ladders and furniture have been made with bamboo; it has also been burnt as fuel.

For more information, please visit http://www.etmcambodia.com/blog.php?article=396

or Economics Today Magazine, Issue 119

Finding new potential in the paddies

Cambodia prepares to conduct agriculture census

With US$1 million in aid from Australia, Cambodia is preparing to conduct the nation’s first agriculture census— a thorough study of the Kingdom’s agricultural sector which will research strategies to improve its performance. The entire cost of the project, set to be completed this year, will be US$7 million, according to Agriculture Minister Chan Sarun.

Penny Richards, Australian ambassador to Cambodia, said the census will provide vital data on Cambodia’s agriculture ector which will be used to improve policies and programs to address the needs of Cambodian farmers. The aim is to improve yields and reduce rural poverty. Cambodia is still largely an agricultural country, with between 75 percent and 80 percent of the population working in the sector.

For more information, please visit http://www.etmcambodia.com/blog.php?article=411
or Economics Today Magazine, Issue 119

“Cambodia’s potential for EU businesses is considerable”

Interview with EU Trade Commissioner Karel De Gucht

The European Union is ASEAN’s largest export market and the Asian bloc’s second-biggest trading partner. The EU is also ASEAN’s biggest investor. In 2010, it injected around US$17 billion in the region. Still, there is a lot of untapped potential, according to Karel De Gucht, the EU’s trade commissioner, for both ASEAN-EU and EU-Cambodian trade ties. Economics Today asked him about the future of trade between the two regions and his thoughts on Cambodia’s investment climate.

You have talked about the establishment of a free-trade agreement between ASEAN and the EU. Why do you want to see such a deal?

The ASEAN and the EU are the two major regional integration initiatives in the world, making them natural partners. I am convinced that a region-to-region deal would bring the most advantages to both EU and ASEAN exporters, industries and consumers. Indeed, a regional FTA would provide businesses on both sides with access to a large market based on consistent conditions and enhance not only inter- but also intra-regional trade. In stepping up our trade relations, we would provide new opportunities for importers, exporters and consumers as well as stimulate growth in both economies.

For more information, please visit http://www.etmcambodia.com/blog.php?article=416

or Economics Today Magazine, Issue 119

Media Awards Program For Excellent Fisheries Reporting with FHI 360

A Communications Task Force proud announce Media Competition honor excellence journalistic coverage fisheries Tonle Sap Lake. All journalists print, radio television are encouraged participate by submitting qualifying works Global FISH Alliance.

An Awards Event/Ceremony will held August 15th, 2012 announce winners honor participating media houses. Don’t miss out this opportunity participate excellent news coverage the sustainable fisheries sector.

This Media Competition being organized sponsored by Communications Task Force, made up representatives Coalition  Fishers (CCF),  n Center Human Rights (CCHR), Community Fisheries (CFi), Community Peace Networking (CPN), Dem Ampel newspaper website (DAP), Fishery Administration (FiA), Phnom Neang Kangrey Association (PNKA), National Television (TVK), Voice Democracy (VoD), Global FISH Alliance (G-FISH), FM 91 Battambang, FM 93.75, Siem Reap’s police, local authorities.

 Requirements

• A cross-sectorial panel of judges will consider all submitted publications focusing on fishery governance, food security, livelihoods and biodiversity issues in Tonle Sap Lake
• Award categories: print, radio broadcast, and television broadcast, and Honorable Mention.
• News must focus on fishery governance, food security, livelihoods and biodiversity issues in Tonle Sap Lake.
• Media houses or media agencies that provide more time and/or space will also be recognized and honored.
• Awards for all categories will be based on creativity (feature/ documentary), accuracy/ information quality, depth of research, reach (viewership/readership/listenership), educational value, frequency, and newsworthy
• Publications dating from April 2nd, 2012 to July 15th, 2012 will be qualified for this competition but ONLY submitted publications shall be considered. Everyone is encouraged to submit all items published during qualification period. There is no limit on the number of submissions made by any one journalist (the more application, the better)
• Journalists can be qualified for more than one category
• Print articles can be sent via email to: gfishalliancecambodia@gmail.com
• Radio and Video news must be burned into VCD, DVD and CD and dropped at FHI 360 office

For more information on criteria, prizes awards, how submit your application, please contact Ms. Vannsan NOU (Communications Networking Facilitator) Mr. Bunny YORTH (Communications Networking Facilitator).

Posting Date: 23-Apr-2012

Contact:

Name :	FHI 360 Ms. Vannsan NOU (Communications and Networking Facilitator) Mr. Bunny YORTH (Communications and Networking Facilitator)
Phone :	092 88 96 33, 012 500 142
Email :	vannsan_nou@yahoo.com, bunnyyorth@gmail.com
Website:	www.fhi.org

Dropped connection?

Nokia devises strategy to get back on top in Cambodia

When Seth Vitou, 22, started using a mobile phone in 2008, he got a Nokia. “It was the brand that had the highest quality and best design,” he said. Now he’s saving up his salary for a new phone, but this time he won’t be buying one from the Finnish company—Seth Vitou wants an iPhone.

“I think that Apple is the best brand for touch screen sensitivity, camera, and applications,” he said. Nokia, in his mind, just can’t compete with the iPhone or devices that run the Android operating system.

His is yet another small story in the larger, nearly tragic tale surrounding Finland’s Nokia, a company which was once the global mobile phone leader, but has watched its dominance fade as rivals like Samsung, Apple and low-cost Chinese-made phones hack away at its market share. Still, Nokia is not going down without a fight and has now adopted a strategy in Cambodia focusing on the middle-low range of the market. It recently released a new low-cost smartphone that aims to capture a healthy segment of the Kingdom’s still-growing market.

To be continued...

Source: Economics Today, Issue 118

Link: http://www.etmcambodia.com/blog.php?article=390

Women’s work?

Female restaurateurs have an edge over their male counterparts

Seven months ago, Ngov Sopheakdey opened the Samaky Restaurant along with her brother near Phnom Penh’s Independence Monument. Her 100-seat establishment keeps her busy since she manages all aspects of the business—helping set the menu, making sure regulations are adhered to, doing the accounting, solving conflicts among her employees and dealing with the occasional customer complaint.

“I love communicating with people and in running a restaurant I get to meet lots of new people from different countries,” she said, taking a break from her day to sit down and talk with Economics Today.

Before opening up, she got some help from her mother, who owned the property where the restaurant is located, and from an uncle, whose 10 years of experience in the guest house and bar business helped her avoid a few initial pitfalls.

To be continued...

Source: Economics Today, Issue 117, April 30-May 6

Link: http://www.etmcambodia.com/blog.php?article=375

Shares start moving

After delays, Cambodia’s stock exchange launches trading

After many delays and some doubt, shares finally began trading on the Cambodia Securities Exchange (CSX) on April 18 in what the Finance Minister Keat Chhon called “a big leap forward” for the economy and observers say will spur growth by making it easier for companies to raise capital.

Spirits were high as Prime Minister Hun Sen rang the opening bell via a video link from his home to start the first trade at the auspicious time of 9:09 am—the number nine is considered lucky in Cambodia.

“It is a historic day,” he said, adding that with the opening of the securities market, a long-awaited development was finally taking place.

“The establishment of the securities market will enable the country’s economy to provide financing for enterprises while strengthening their management and helping them earn the trust of investors and the public,” he said.

To be continued...

Source: Economics Today, Issue 116, April 23-29

Link: http://www.etmcambodia.com/blog.php?article=362

Skill shortages could hold back economic growth

Cambodia’s economic growth will continue to show positive growth in 2012 despite lingering effects from last year’s floods and the struggling EU and US economies, but a serious skill shortage could drag on the Kingdom’s economic growth, according to the Asian Development Outlook 2012 report.

The report, put out by the Asian Development Bank, said Cambodia’s economic growth will moderate to 6.5 percent in 2012 from 6.8 percent in 2011, and then edge up to 7.0 percent in 2013. The ADB forecast agrees with 2012 projections by the Cambodian Finance Ministry, the International Monetary Fund and the World Bank. But it comes in higher than the 6.2 percent forecast by the Economic Institute of Cambodia.

The expected slowdown in 2012 reflects a fall in exports with only slight growth upticks in the services and agriculture sectors. The picture brightens in 2013 as Cambodia is expected to track the expected upturn in the global economic outlook.

The report warned about a growing rich-poor gap in developing Asia, saying it threatens to undermine the region’s growth and stability. It recommends governments spend more on education and health and infrastructure to reduce imbalances between developed and lagging rural areas.

To be continued....

Source: Economics Today, Issue 116, April 23-29
Link: http://www.etmcambodia.com/blog.php?article=363

Cambodia benefits from ASEAN-EU trade ties, but looks to long term

Taken together, the European Union and ASEAN make up a market of more than 1 billion people and trade between the two blocs has been brisk—more than US$233 billion in 2011. The EU is ASEAN’s second largest export partner after China. In term of investment, EU companies invested around US$12 million annually on average between 2000 and 2009.

While those numbers are already impressive, the relationship promises to become even more important and growth appears to be in the cards.

“ASEAN as a motor for Asia’s economic development is set to have a major slice of that growth,” said Karel De Gucht, the EU trade Commissioner, who was in Phnom Penh for the ASEANEU Business Summit.
While ASEAN and the EU continue to cozy up to one another, Cambodia is already well positioned to benefit from its relationship with Europe.

“I think only Cambodia has more opportunities [for trade] than other countries in ASEAN region,” said Cambodian Commerce Minister Cham Prasidh.

To be continued...

Source: Economics Today, Issue 115
Link: http://www.etmcambodia.com/blog.php?article=354

Maybank Upgrade into Incorporation to Catch Market Growth

As the crowed market with 34 licensed banks in kingdom, 18 years experienced still see the space to grow in the future. In believe of grow opportunity of Cambodia, Maybank upgrade branch into incorporation to catch market growth and new opportunities and setting its sights on being among the top in Kingdom by 2015.

“Compare to mature market such as Malaysia and Singapore where the loan to Gross Domestic Product (GDP) is more than 100 percent, Cambodia banking market still have the space to grow measured by Cambodia’s GDP to loan was about only 30 percent,” Dato’ Sri Abdul Wahid Omar, President and CEO of Maybank.

Dato’ Sri Abdul Wahid Omar (center), President and CEO of Maybank

 In term of trade facilities between Cambodia and other countries, Cambodia absorbs a lot of business and investment from many countries and ASEAN countries into country, he mentioned.

While upgrading, the bank’s capital raised from US$30 million to US$50 million in a move to enable a better service and meet the demand in country.

At the same time, the bank will invest in a new 10 storey corporate office in Phnom Penh located in Norodom Boulevard which is expected to be read in two years. It will serve as Phnom Penh branch and other country operations of the bank.

“This initiative is a part of our broader strategy to further develop our regional footprint in line with our vision to become a regional financial services leader,” Dato’ Sri Abdul Wahid Omar said. Currently, Maybank Cambodia ranked 7^th in terms of assets among 33 banks operating in Cambodia.

The Maybank Cambodia had been growing at a healthy pace with assets and deposits doubling in the last 4 years since its branch. Total assets rose from US$129 million in June 2007 to US$313 million in December 2011 while deposits increased from US$100 million US$231 million and loans from US$30 million to US$168 million.

The revenue of the bank rose from US$0.45 million in June 2007 to US$10.2 million at the same time in 2011 while profit tax rose from US$0.38 million to US$8.4 million for the same period. In the last six month of 2011, revenue reached US$12.8 million while profit before tax was US$4.47 million.

The local incorporation would also enable the bank to adopt an enhanced governance framework which will provide additional assurance as it further grows its business in Cambodia. As the increasing of its capital to US$50 million, it will enable the bank to operate at a good capital adequacy ratio above 12 percent whilst maintain an aggressive growth strategy in the years ahead.

Maybank initially operated in Cambodia on a wholesale banking business model with a single branch, mainly serve home based customers doing business in the country. In 2008, it changed to a commercial banking business model which to meet growing demand of local enterprises and individuals.

Besides offering traditional banking products and services such as deposit accounts, financing and wholesale banking products, the bank has recently introduced various products such as Yippie children’s account, Premier current account, trade pack and electronic trade finance to leverage the booming business banking and consumer market.

“Maybank is intent to bring Cambodia market more innovative and value added products and service within this year to tap on the growing demand and increasing affluence in Cambodia,” said Dato’ Sri Abdul Wahid. “We will soon introduce internet banking, agriculture loans and more modules of TradeConnex.”

As seeing new opportunities in the new areas of business in kingdom, Maybank is on the way to include financial service such as investment banking, insurance, stock broking debit cards and credit card into industry.

“We are committed to develop Cambodia’s human capital and have provided significant training and development opportunities to our local staff which make up 94 percent of our 172 strong force,” he said.

Peter England, Head of Retail Financial Services of CIMB Bank said short time operate in Cambodia, the bank industry is growing very fast as now it has several branches and promoted effective business. “We believe that Cambodia’s market now is in a good position and the timing is also perfect for us here and we also plan to grow further in Cambodia.” To invest in Cambodia, “We believe that Cambodia has great potential and we are also serious about investing in Cambodia.

By Sok Lak

Cambodia’s rail revamp off the tracks?

Problems and delays hound the Kingdom’s railway project

Efforts to get Cambodia’s train system rolling and improving the country’s transport infrastructure have hit repeated problems and some wonder if the US$142 million project might end up derailing completely.

In March, Australia logistics firm Toll Group and the Royal Group of Cambodia decided to suspend all train operations in Cambodia for one year beginning in April, according to a statement by the Asian Development Bank (ADB). The two companies are part of a joint-venture called Toll Royal Railway, which won a 30-year concession to run the Cambodian Railway Network.

But construction delays due to last year’s heavy flooding, as well as land acquisition problems, resettlement questions and cost overruns have plagued the project. Toll Holdings told the Cambodian Finance Ministry in a letter in March that it would suspend its work because the sub-contracted firms that are building the railway network were taking too long, and the project is now not profitable.

To be continued...

Source: Economics Today, Issue 114, April 02-08
Link: http://www.etmcambodia.com/blog.php?article=336

ADB provides US$300 million Loan to ASEAN

The Asian Development Bank (ADB) provides US$300 million loans to ASEAN to broaden the relationship cooperation between ADB and Association of Southeast Asia Nation (ASEAN).

The ADB-ASEAN Memorandum of Understanding for 2012-2015 signed by ADB President Haruhiko Kuroda and ASEAN Secretary General Surin Pitisuwan on April 4 at Peace Palace in Phnom Penh.

Surin Pitisuwan said that this agreement will continue productive relationship corporation ADB and ASEAN.  “Without support and assistance from ADB, maybe the whole project including master plan of ASEAN connectivity, economic prospect and ASEAN agreement that has will not be possible and human development maybe worth than before.”

Arjun Goswami, Director of Regional Cooperation and Operations Coordination Division at ADB Southeast Asia Department said that the fund US$300 million is every year and it is small increase every year.

Each country in ASEAN could decide to take the fund, he added. However, each county should not take no more than 30 percent of the fund which make sure that every country can access to the fund.

“We hope that all overall countries in ASEAN could use the fund for their benefit,” he stressed.

“The loan will help ASEAN connectivity and the stronger infrastructure in ASEAN the more integrate become in region.”

Every year, ABD provides loans to ASEAN around $2 billion.