Cambodia’s Economic Growth To Accelerate In 2024, Fueled By Manufacturing And Tourism, Says ADB
Phnom Penh, April 11, 2024 --Cambodia’s economy is forecast to grow at 5.8 percent in 2024 and 6.0 percent in 2025, fueled by a further rebound in tourism and strong manufacturing prospects, according to the latest edition of the Asian Development Bank’s (ADB) flagship economic report released on April 11."Despite global economic challenges, Cambodia’s economy performed well in 2023,” said ADB Country Director for Cambodia Ms. Jyotsana Varma. “We expect growth to be robust in 2024-2025, with the garments, footwear, and travel goods (GFT) sector poised for a significant upturn building on the positive momentum during the last quarter of 2023.”The Asian Development Outlook (ADO) April 2024 estimated growth of 5.0 percent in 2023, driven by a robust recovery in tourism and solid activity in manufacturing outside the GFT sector. The report forecasts continuing economic expansion in 2024–2025, supported by stronger export-oriented manufacturing. It also expects inflation, which averaged 2.1 percent in 2023 mainly on falling global energy prices, to remain low at around 2.0 percent over the next two years.The government aims for gradual fiscal consolidation from 2024 to rebuild pandemic-diminished reserves. Yet, challenges such as potential global economic slowdowns, rising private debt, fluctuating energy prices, and climate vulnerabilities could impact the outlook longer-term.“These challenges add layers of complexity to Cambodia’s economic narrative,” said Ms. Varma. “But, the country is moving ahead with cautious optimism.”The report also discusses Cambodia’s strategic preparations to graduate from the least-developed country (LDC) category, as designated by the United Nations, in 2027. It notes that graduation will improve the country’s international standing and investment attractiveness, but simultaneously pose challenges from reduced access to concessional financing and preferential trade treatments that propel sectors contributing to high growth and employment.To effectively navigate this transition, the report stresses the importance of Cambodia enhancing its global economic integration, diversifying markets, focusing on higher value-added products, investing in sustainable infrastructure and human capital, and strengthening domestic resource mobilisation.Recently, Cambodia was ranked by Seasia Stats as the fastest growing economy in Southeast Asia, and third in Asia in 2024 by basing on the International Monetary Fund (IMF)’s October 2023 Outlook and January 2024 update, which forecasted Cambodia’s economic growth at 6.1 percent this year.For the government side, Cambodian economy remains robust with a projected growth rate of 6.6 percent in 2024, up from 5.6 percent last year, while the World Bank has forecasted that the Kingdom’s economy would grow at 5.8 percent this year.
Svay Rieng Clean Water Infrastructure Project Launched With Over $30 Million Grant From Japan
Phnom Penh 11-04-2024The Ministry of Industry, Science, Technology & Innovation hosted a groundbreaking ceremony for the Svay Rieng Water Supply System Expansion Project on April 11, 2024 to bolster clean water access in Svay Rieng Province. The project is funded by a Japanese grant of over USD 30 million via Japan International Cooperation Agency (JICA), which marks another key moment for the development of clean water infrastructure in Svay Rieng province.The groundbreaking ceremony was presided over by H.E. Hem Vanndy, Minister of Industry, Science, Technology & Innovation, and H.E. UENO Atsushi, Ambassador of Japan to Cambodia, with the participation of about 600 individuals, including representatives from MISTI, relevant ministries-institutions, Embassy of Japan in Cambodia, JICA, Kitakyushu City Administration, Svay Rieng Provincial Administration, Svay Rieng Provincial Department of Industry, Science, Technology & Innovation, local authorities, and communities.Svay Rieng Province has witnessed notable developmental in recent years, with advancements in physical infrastructure and robust economic and social progress. Amidst this growth, the demand for clean water has steadily risen. Svay Rieng City, serviced by the Svay Rieng Water Supply Authority, has faced challenges due to limited water production capacity—just 4,800 cubic meters per day, catering to just over 20,000 people, approximately 40% of the population in 2017.In response to the increasing demand for clean water for various purposes, including daily consumption, business, and industrial needs in the province, MISTI sought assistance from the Government of Japan to initiate the construction of a new water supply system expansion.As a result, the Japanese government, through JICA, has provided a grant of approximately 3.986 million yen or 30.6 million US dollars to implement the project, scheduled to span 23 months from February 2024 to December 2025.The project encompasses a raw water pumping station with a capacity of 7,480 m3/day, a 2.9 km raw water pipeline, a water treatment plant capable of processing 6,800 m3/day, and a water supply network spanning 110 km. Additionally, 375 home connections will be established, along with the construction of a 22m x 17.7m administrative building.Upon completion, the Svay Rieng Water Supply Authority is expected to elevate its water production capacity to 22,600 m3/day, serving a distribution network of 236.64 km. This expansion is anticipated to provide quality, safe and sustainable clean water access to more than 117,530 individuals residing in Svay Rieng City and Svay Chrum District by the end of 2025. The project will contribute to the Svay Rieng Water Supply Authority's achievement of the government's target of "expanding the city's water supply to 100% of the people by 2025 to serve the basic needs of the people as well as for production and service sectors.”The Svay Rieng Water Supply System Expansion Project underscores the government’s commitment to enhancing the well-being of citizens, driving socio-economic progress, and fostering an environment conducive to attracting investment to Svay Rieng Province.
ASEAN Secretariat Ready To Collaborate With Cambodia In ASEAN Community Building
Phnom Penh, April 11, 2024 --The ASEAN Secretariat is committed to working closely with Cambodia in contributing to the ASEAN Community building process.The commitment was reaffirmed by H.E. Dr. Kao Kim Hourn, Secretary-General of ASEAN, in a message to Samdech Akka Moha Sena Padei Techo Hun Sen, congratulating him on his recent election as the President of the Fifth Legislature of the Senate.“On behalf of the ASEAN Secretariat and on my own behalf, I would like to extend my warmest congratulations on your recent election as the President of the Senate of the Kingdom of Cambodia. It is indeed a remarkable achievement and a true testament of your exceptional leadership qualities as well as life-long dedication to public service,” he wrote.The ASEAN secretary-general expressed his belief that with Samdech Techo Hun Sen’s extensive experience and leadership in the executive branch serving as former Foreign Minister, Deputy Prime Minister and Prime Minister of the Kingdom of Cambodia, will greatly contribute to the progress and development of the Senate as well as to the overall advancement and transformation of the Kingdom of Cambodia.“I am confident that under your guidance and wise leadership, the Senate will effectively fulfill its roles and responsibilities and will largely contribute to the ongoing efforts of the ASEAN Community building in fostering regional cooperation, peace, and stability. In this regard, I wish to reaffirm that the ASEAN Secretariat stands ready to working closely with you and Cambodia in contributing to the ASEAN Community building process, especially as we have embarked on the crafting of the ASEAN Community Vision 2045 that would shape ASEAN's long-term strategic environment in the next two decades,” he underlined.H.E. Dr. Kao Kim Hourn looked forward to working closely with Samdech Techo Hun Sen to further strengthen the ties between ASEAN and the Kingdom of Cambodia and to the opportunity to officially pay a courtesy call on Samdech President at an opportune time in the near future during his visit to Cambodia.
Manhattan SEZ Chairman Wishes To Expand Business In Cambodia
Phnom Penh, April 10, 2024 --Mr. Clement Yang, Chairman of Manhattan Special Economic Zone (SEZ) in Bavet city, Svay Rieng province has voiced his wish to expand more business in Cambodia through investment in areas of agriculture, green energy, transport and logistics.The intention was revealed by Mr. Clement Yang while he was paying a courtesy call on H.E. SUN Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC), with participation of Mr. Hong Kian Lim, CEO of Surbana Jurong (SJ) Group of Singapore, to discuss further possible investment in the above-said sector in the Kingdom, at the CDC headquarters on April 9.According to Mr. Clement Yang, Manhanttan SEZ would collaborate with major companies such as SJ Group and Suzhou Industrial Park in Jiangsu of China.For his part, H.E. SUN Chanthol welcomed the investment plans and reassured that the CDC would provide facilitation for all investments in Cambodia in accordance with the laws and regulations of the country.
Cambodia, The Fastest Growing Economies In Southeast Asia, And Third In Asia In 2024
Phnom Penh, April 06, 2024 --Cambodia leads the growth projection in Southeast Asia in 2024, according to Seasia Stats based on Southeast Asia’s 2024 GDP growth projection from the IMF’s October 2023 Outlook and January 2024 update.“Cambodia tops the list with 6.1 percent, while the Philippines ranks second with 5.9 percent and Vietnam third with 5.8 percent,” the source said.For Asia, the Kingdom sits third among the top 25 fastest growing economies in Asia in 2024, just behind Macao and India with 27.2 and 6.3 percent, respectively.The rankings show the ability of the new Royal Government of Cambodia under the leadership of Samdech Moha Borvor Thipadei Hun Manet, especially to boost the economic recovery after the COVID-19 crisis and the Ukraine-Russia war crisis.Cambodia’s economy is mainly driven by garment, footwear and travel goods exports, tourism, agriculture, and real estate and construction.
CDC Approves US$2.2 Billion-Worth Investment Projects In First Quarter Of 2024
Phnom Penh, April 05, 2024 --The Council for the Development of Cambodia (CDC) has approved 106 investment and investment expansion projects in the first three months of this year, an increase of 67 projects compared to the same period last year.The total investment capital of the approved projects in the first quarter rose by 649 percent year-on-year to US$2.2 billion, pointed out a CDC’s press release made public this morning.The same source stated that the newly endorsed investment projects are expected to generate some 107,000 jobs for local people.Breaking down by sectors, it underlined, investment in industrial sector got the largest share with 90.57 percent, while agriculture and agro-industry, infrastructure, and tourism accounted for 3.77 percent, 3.77 percent, and 1.89 percent, respectively.About 58 percent of the total investment capital was from local investors, 35.34 percent from China, 3.16 percent from Singapore, 2.23 percent from Vietnam, and the rest from South Korea, the U.S. and Malaysia, the press release showed.Vice-President of the Cambodia Chamber of Commerce Mr. Lim Heng attributed the increase in investment project to the country’s potential under the new investment law, free trade agreements, mega-regional pact, and trade preferences.“The new investment law, along with free trade agreements – Cambodia-China FTA and Cambodia-Korea FTA, RCEP – are factors that attracted investment from China to Cambodia as part of production for exports to foreign markets,” he said.
The Cambodian Chamber of Commerce to allow to meet BNI Cambodia to discuss the work in preparation for CIBExpo
Phnom Penh: On the afternoon of April 4, 2024, HE Oknha Nguon Meng Tech, Director General of the Cambodian Chamber of Commerce, High Representative, Oknha Kith Meng, President of the Cambodian Chamber of Commerce, received Mr. Jonathon Chua, General Manager of BNI Cambodia and the working group to pay a courtesy call and discuss work at the Cambodian Chamber of Commerce.The General Manager would like to thank His Excellency Oknha, General Director, for allowing him to pay a courtesy call and discuss the current work, he has been organizing Cambodia International Business Expo 2024 (CIBExpo) on 10-12 May 2024 at the Koh Pich Convention and Exhibition Hall, if nothing changes.His Excellency Oknha, Director General, welcomed the General Manager to meet with His Excellency Oknha, Director General to pay a courtesy call and discuss work. His Excellency Oknha, General Director, was pleased to welcome and support the upcoming CIBExpo. In addition, the General Manager also gave a presentation on the whole CIBExpo program.
Emirates to resume flights to Phnom Penh (Cambodia) in May
Emirates said on Thursday that it will resume daily flights to Phnom Penh, Cambodia, via Singapore as of May 1. This move will improve the airline's connections throughout Southeast Asia to and from Dubai.Adnan Kazim, Deputy President and Chief Commercial Officer of Emirates, stated: "The resumption of our Phnom Penh services demonstrates our commitment to strengthening our Southeast Asian network, as we continue to create more opportunities for travelers to explore diverse and culturally rich destinations, and help businesses and exporters of all sizes establish stronger trade connections."360 passengers can travel in three classes on board a Boeing 777-300ER, including 8 suites in First Class, 42 in Business Class, and 310 in Economy Class.360 passengers can travel in three classes on board a Boeing 777-300ER, including 8 suites in First Class, 42 in Business Class, and 310 in Economy Class.The schedule that connects Phnom Penh with Singapore is well-planned, offering the best possible connections to and from a number of destinations in France, the United Kingdom, Germany, Switzerland, and the United States.Emirates will begin serving Singapore with four daily flights via this new connection on May 1.
Cambodia Ready To Be A Strategic Partner Of Businessmen And Investors
Phnom Penh, April 02, 2024 --Cambodia is ready to be a strategic partner of businessmen and investors to seize ASEAN's viable economic opportunities and is committed to working closely with ASEAN member states and dialogue partners to build a resilient, sustainable and competitive ASEAN Economic Community (AEC) for the common interest of the region.The remarks were underscored by Samdech Moha Borvor Thipadei Hun Manet, Prime Minister of the Kingdom of Cambodia, while presiding over the official opening ceremony of Cambodia-ASEAN Business Summit, held here this morning.With her strategic location, Cambodia provides a seamless connectivity and creates an ecosystem of collaboration that focuses on mutual benefits and common well-being throughout the region, the Premier said.At the same time, he continued, Cambodia's strategic membership in major regional and global trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and World Trade Organisation (WTO) makes the Kingdom a highly integrated player in the global market. "Made in Cambodia" products such as clothing and bicycles are now internationally recognised for their quality and competitive prices, which demonstrates Cambodia's growing presence in the global market.According to Samdech Thipadei, Cambodia firmly believes that a strong, resilient and integrated ASEAN Economic Community can bring common prosperity to all member states. In this spirit, the Royal Government of Cambodia has been promoting the implementation of the "Plus-One Strategy" by attracting investment in the production of spare parts or semi-finished products to supply large factories in neighbouring ASEAN countries, and has approved the new Investment Law to provide investors with potential and strategic excellence with many incentives for investment projects in key priority areas.Moreover, he underlined, Cambodia is investing in developing connectivity infrastructure, including highways, deep seaports and international airports, and modern logistic centre, which will promote smooth and efficient regional connectivity to key economic corridors in Cambodia and the ASEAN region as a whole, and these strategic investments will help reduce the logistics costs and increase the efficiency of businesses operating in Cambodia so that they can draw huge potential from the regional market.
Cambodian Statesman Praises China’s Role In World Development
Phnom Penh, March 28, 2024 --Samdech Akka Moha Sena Padei Techo Hun Sen, President of the Supreme Privy Council to His Majesty the King, has lauded China’s key role in the development of countries from Asia, Africa to Latin America.Samdech Techo made the remarks in his keynote address at the opening ceremony of the Boao Forum for Asia Annual Conference 2024, held in Hainan province, the People’s Republic of China on Mar. 28.The former Cambodian Prime Minister emphasised that the common responsibility in Asia is to maintain peace and security in the region to ensure poverty alleviation and future development for common prosperity. Asia has achieved tremendous development and has played a leading role in growth, especially during a difficult period of global economic downturn. Asia's strong economic growth and position as the world's manufacturing and trade hub have given Asia an important global role, despite the slowdown in the global economy and the recent supply chain restructuring. Overall, Asia’s economy is expected to contribute 60 percent of the world's GDP growth in the coming year.“In this sense, our region needs to work together to maintain a positive momentum, our actions must be guided by the principles of multilateralism, based on the rule of law that applies to all of us, not to any group of countries. We must continue to strive for deeper integration and better connectivity, rather than push for disconnection and blockade. We must recognise that multilateralism is a principle that supports globalisation, sustainable development and poverty reduction that are of real benefit to our world today,” he underlined.Samdech Techo Hun Sen said that the Belt and Road Initiative has supported the construction of public infrastructure on continents. These infrastructures are an indispensable part of the efforts to develop and reduce poverty of the people of the beneficiary countries, including Cambodia. “We must recognise that China's model of growth and development has allowed other countries to prosper together, not abandon other countries for their own growth,” he added.“It is our shared responsibility to promote inclusive growth in a multilateral international order based on the rule of law that gives every country, large and small, the opportunity to stand out, grow and prosper. […] We must work to protect multilateralism that supports the community interests, so that people around the world can enjoy peace and a better quality of life,” stressed Samdech Techo Hun Sen.
11th Annual Macroeconomic Conference To Be Held In December
Phnom Penh, March 30, 2024 --Cambodia will hold the annual Macroeconomic Conference, the 11th of its kind, on Dec. 17, 2024, according to a recent announcement of the National Bank of Cambodia (NBC).Themed this year “Geoeconomic Fragmentation: Implications and Policies”, the 11th Macroeconomic Conference will be jointly organised by the NBC and the International Monetary Fund (IMF).The conference is aimed to strengthen and build the culture of research in Cambodia and provide a forum for dialogue among researchers, experts and relevant stakeholders on topics that are important for and relevant to the development of Cambodian economy.“In light of this upcoming conference, the NBC is accepting research proposals from candidates conducting their research on topics related to the theme of this macroeconomic conference,” said the announcement.Authors presenting their papers at the conference will be rewarded, and their papers will be published in the NBC's working paper series, the source added.Interested candidates are required to submit their research proposals to the Monetary Policy and Research Department via macroconfer@nbc.gov.kh by April 10, while the announcement of selected proposals/papers will be on April 20.
NBC Launches 'Love The Riel' Campaign
Phnom Penh, March 20, 2024 --The National Bank of Cambodia (NBC) marks the 44th anniversary of Riel banknote printing with the 'Love the Riel' campaign.According to a public notification issued by NBC on Mar. 19, the campaign welcomes the exchange of old and torn riel banknotes with the new ones across Cambodia.Running from Mar. 20 until 29, the campaign with 'Riel, Sustainability, Development' as its motto is launched in cooperation with capital, provincial and municipal banking and financial institutions.During the campaign, the public can access their nearest banking and financial institutions for the exchange.Cambodia re-printed the first Riel banknotes on Mar. 20, 1980.
More Korean Companies Seek Trade And Investment Opportunities In Cambodia
Phnom Penh, March 27, 2024 --A Korean delegation of 13 companies led by Mr. Hacheong Yun, Director General of Korea Trade-Investment Promotion Agency in Cambodia (KOTRA Phnom Penh), has sought for more trade and investment opportunities in potential sectors in Cambodia.The intention was revealed during a working meeting between H.E. Sun Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC), and the Korean delegation, at the CDC headquarters here on Mar. 26.On the occasion, H.E. Sun Chanthol explained to his guests the reasons why Cambodia is the best choice for their investment destination, ranging from full peace, political stability, economic growth, and exchange rate stability to human resource productivity and attention to physical infrastructure development.The Cambodian DPM also laid stress on the openness of Cambodian investment law which provides many incentives to investors, the regular organisation of Government-Private Sector Forum to address investors’ challenges, and especially on the connection of the Cambodian market to the world through Cambodia-Republic of Korea Free Trade Agreement (FTA), Cambodia-China FTA, and Cambodia-United Arab Emirates Comprehensive Economic Partnership Agreement, Regional Comprehensive Economic Partnership (RCEP) Agreement, Everything But Arms (EBA) scheme, and so on.The Royal Government also encourages investment projects in heavy industries such as electronic assembly, automobile assembly, and technology projects to name a few, he underlined.The 13 Korean companies include Samsung Electronics, Hyundai Motor, LG Electronics, CJ Group, LX International, DAEJOO KC Group, Booyoung Group, Hanshin Engineering & Construction, KORINDO Group, Kolao Group, KBIZ, World OKTA, and Maekyung Media Group.
PM Hun Manet Urges Laos to Explore Importing Goods from Cambodia, Particularly Beverages
26 March, Phnom Penh - In a bilateral meeting with Laotian Prime Minister Sonexay Siphandone, Cambodian Prime Minister Hun Manet asked the Lao side to look into the possibilities of importing some items from Cambodia, especially drinks, according to Cambodian Delegate Minister Jean François Tan.After Samdech Thipadei's visit to the Lao PDR came to an end on Tuesday, March 26, Jean François Tan spoke during a news conference.Delegate Minister Jean François Tan pointed out, "In order to increase the trade volume between Cambodia and Laos, we have asked our Laotian friends to consider importing some goods from Cambodia, such as beverages, which are high-potential and abundant in Cambodia."In addition, Prime Minister Hun Manet urged his Laotian colleagues to investigate the prospect of strengthening economic integration through trade in services, including as banking, transportation, and tourism services, according to Jean François Tan. This was in reference to the trade boost.The importance of arranging the Joint Commission on Bilateral Cooperation's (15th) meeting, reviving the Joint Trade Commission, hosting forums for business and investment, and promoting economic integration through trade in services like financial, travel, and tourism services were all topics of discussion between Prime Minister Hun Manet and his Laotian counterpart.
Conservationists Witness Explosion Of Life Coral Spawning In Cambodia
Phnom Penh, March 22, 2024 –Synchronised mass coral reef spawning has been observed for the first time in Cambodian waters, demonstrating that the coral remains healthy despite challenging conditions, said Fauna & Flora in a news release AKP received on Mar. 22.According to the same source, the spawning event – which will help to inform future conservation efforts in this area – was observed during the first week of March by Fauna & Flora’s Cambodia team, alongside local partners.Partners included Cambodia’s Fisheries Administration and Ministry of Environment, Song Saa Foundation, Bubbles Up! Dive Centre with advice from Dr. Rahul Mehrotra and Aow Thai Marine Ecology Centre.Coral spawning – or coral reproduction – usually occurs once per year, when entire colonies of coral reefs release their eggs and sperm at the same time. The length of the release varies from just a few minutes to over an hour, depending on the genera of the coral.Understanding when coral reproduction occurs is important for coral reef management, as it allows conservationists to effectively deploy restoration techniques and assess the health of hard coral communities. Significant mass spawning is an important sign of coral reef health, and this event shows that Cambodian coral reefs have not been severely affected by major stressors, such as climate change - that could prevent reproduction.Coral reefs near the Cambodian coastline are characterised by high sedimentation and are subject to significant variations in temperature between the wet and dry seasons. Therefore, Cambodia’s coral reefs may act as important refugia for thermally tolerant coral genotypes that can seed coral reefs elsewhere in the Gulf of Thailand.Matt Glue, Fauna & Flora’s Marine Technical Specialist in Cambodia, comments: “What a spectacular event to witness along our coastline. It was like an explosion of life as the reef released thousands of eggs, spreading as far as the eye could see.“Coral reefs provide a crucial habitat for marine life as well as vital ecosystem services through tourism and fisheries that coastal communities in Cambodia rely on. It is therefore enormously reassuring to see that the coral here remains healthy, and this sighting will help to improve our knowledge of coral reproduction in the Gulf of Thailand.”Chantha Chroeng, a Marine Species & Ecosystems Officer at Fauna & Flora, adds: “It is difficult to explain, but the mass spawning is like snow, except instead of falling, it moves up slowly, slowly. It is a wonderful spectacle.”Anne Groeneveld, Bubbles Up!, observes: “It was like diving in a Blue Planet documentary! To see something so rare and special is amazing.”Sorn Srenh, Deputy Chief of Koh Sdach Commune, says: “Coral spawning is truly captivating, and it has left a lasting impact on my soul. When corals spawn, it is a sign that they are flourishing and that the environmental conditions are conducive to their survival and growth.”Fauna & Flora is working with the Cambodian Fisheries Administration, and the Ministry of Environment, and local NGOs to protect marine and coastal ecosystems in this region. The work, which receives funding from the Blue Action Fund and Fondation Prince Albert II de Monaco, includes biodiversity research, such as the mapping of coral reef, seagrass, and mangrove habitats; marine protected area development; and the restoration of mangrove forests along the coastline.Fauna & Flora and its partners are also engaging with local communities and other stakeholders along the Cambodian coastline to raise awareness of the value of marine resources and develop sustainable conservation methods and livelihood activities.
Microfinance Sector Propels Cambodian Riel Circulation In 2023, Says CMA
Phnom Penh, March 25, 2024 --The Cambodian microfinance sector has emerged as a transformative force in the national economy, championing an impressive surge in the adoption and use of the Khmer Riel (KHR) in 2023.The sector reported that 25 percent of its loans and 16 percent of deposits are now denominated in Riel, the Cambodia Microfinance Association (CMA) said in a press release issued on Mar. 25.The total loan balance in Cambodian Riel escalated to an unprecedented KHR 5.56 trillion. Furthermore, the volume of Riel deposits at Microfinance Deposit-taking Institutions (MDIs) has swelled to KHR 1.52 trillion, signaling a notable shift in the public's saving habits toward the local currency.These figures are indicative of a growing confidence in the national currency, greatly surpassing the benchmarks previously set by regulatory bodies, CMA said.Under the stewardship of the National Bank of Cambodia (NBC) and collaboration with the CMA and other stakeholders, extensive efforts have been made to broaden the public's understanding and embrace of the Riel. Initiatives focusing on improving financial literacy, advocating for adopting digital transactions in Riel, and highlighting the advantages of a vigorous local currency system have been critical. These endeavours have paved the path toward establishing a more inclusive and durable financial environment nationwide.Ms. Dith Nita, Chairperson of the CMA, highlighted the strategic importance of these initiatives. "The comprehensive approach that our members adopted in 2023 was designed to elevate the Riel's role in our financial transactions and to deepen our community's relationship with our national currency. This effort is crucial for creating an inclusive and resilient financial ecosystem,” she said.The influence of microfinance loans on the Cambodian economy has been significant, touching upon various sectors such as households, commerce, agriculture, and beyond, she added."Our targeted interventions across these sectors have not only propelled economic activity but also emphasised the microfinance sector's integral role in supporting Cambodia's developmental ambitions," Ms. Dith Nita commented.According to CMA, the remarkable growth in transactions through Cambodia's Bakong payment system, with a 3.4-fold increase in Riel transactions, significantly outstripping those in U.S. dollars, underscores a year of unparalleled success for the national currency.“This leap forward symbolises a concerted push towards cementing the Khmer Riel's position as a preferred medium of exchange, bridging the gap between digital and traditional commerce. It's a clear indication of Cambodia's journey towards economic self-sufficiency and sustainability,” CMA said.Cambodia has 59 commercial banks, nine specialised banks, and 87 microfinance institutions across the country, with 16.5 million deposit accounts and 3.8 million credit accounts, pointed out the NBC report.
The Riel Has Gained Noticeable Confidence In National Economy
Phnom Penh, March 21, 2024 --On the 44th anniversary of its reintroduction, Cambodian banknote Riel sees noticeable confidence in its, while more measures are being taken to sustainably 'Rielise' in Cambodia.At an official event to mark the Riel reintroduction anniversary, Governor of the National Bank of Cambodia (NBC) H.E. Dr. Chea Serey reported that the Riel circulation in the Cambodian market has increased by an average of 15 percent in the last two decades.Loans and deposits at banks and financial institutions have grown remarkably at 35 percent and 30 percent, respectively.The NBC governor added that it needs time to build confidence in Riel both among the locals and investors.To bring the use of Riel to a new height, NBC has promoted the use of electronic payment, especially through the well-known Khmer-introduced Bakong system, resulting in a 44 percent increase in 2023 compared to 2022, while such transactions rose only 3.1 percent for U.S. dollars.Cambodia has also connected the electronic payment system in Riel with Laos, Thailand, and Vietnam and will expand it to more territories in the near future.NBC, continued H.E. Dr. Chea Serey, has also been building public awareness of the importance of using the Riel, including the establishment of Cambodia's first ever museum of economy and money, widely referred to as the Sosoro Museum in Phnom Penh.Macroeconomic stability has returned to normal with confidence, but the level of dollarization has risen to more than 60 percent by the late 1990s and about 80 percent by the late 2000s.
Cambodia, Russia Boosting Effective Legal Cooperation
Phnom Penh, March 20, 2024 --Cambodia's Ministry of Justice and the Russian Embassy in Phnom Penh have agreed to establish a joint mechanism for more effective implementation of legal cooperation.The move was shared during a meeting between H.E. Koeut Rith, Deputy Prime Minister and Minister of Justice, and H.E. Anatoly Borovik, Ambassador of Russia to Cambodia, in Phnom Penh on Mar. 19.They also discussed the progress of bilateral relations between Cambodia and Russia on legislation, including the addition to the implementation of a treaty on the transfer of prisoners.Cambodia and Russia have entered into agreements on extradition and legal aid to promote comprehensive legal cooperation between the two countries.
Minister, World Bank Discuss Active And New Water Projects
Phnom Penh, March 20, 2024 --The Minister of Water Resources and Meteorology received a senior World Bank delegation to exchange lessons learned from on-going water and irrigation projects to improve the implementation of a new one.The minister, H.E. Thor Chetha, met with Ms. Maria Angelica Sotomayor, a Water Practice Manager for East Asia and the Pacific at the World Bank, and her team on Mar. 19 at the ministry.He underlined the Royal Government's water priorities to support Cambodia's sustainable socioeconomic growth, as well as the progress and challenges in the sector.He suggested that the World Bank consider supporting the strengthening of national policy and institutional capacity development in water and irrigation at both the national and subnational levels.The two also touched on rehabilitation of irrigation infrastructure, the Tonle Sap and Mekong river management plans, and active projects supported by the World Bank.According to Ms. Maria Angelica Sotomayor, a new water resources development project for Cambodia will be submitted for the approval of the Board of Directors at the World Bank in April, along with insights from the minister and concerned technical team.
Ministry, Korean Development Partners Discuss Project Cooperation
Phnom Penh, March 19, 2024 --The Minister of Water Resources and Meteorology has received the President of the Korea Water Resources Development Corporation (K-Water) and Chairman of the ASIA Water Council (AWC) to discuss project implementation cooperation in Cambodia.The minister, H.E. Thor Chetha, met his Korean guest Mr. Seog-dae Yun and his team for the discussion on Mar. 18 at the ministry office.He appreciated Mr. Seog-dae Yun as well as K-Water and AWC for contributing to the development of Cambodia's water resources and meteorology.Mr. Seog-dae Yun thanked the minister for his insights and support for the projects supported by K-Water and AWC in Cambodia and invited the minister to attend the upcoming World Water Forum in May in Bali, Indonesia.Since 1999, the ministry, in cooperation with K-Water and AWC, has implemented various projects along the Mekong Delta and in provinces, including Kampong Speu, Kampong Chhnang, and Battambang.