Fintech Plays Important Role in Promoting Financial Inclusion in Cambodia
Phnom Penh, November 30, 2023 --The FinTech industry has been given the opportunity to play a significant role in promoting financial inclusion in Cambodia, said H.E. Mrs. Chea Serey, Governor of the National Bank of Cambodia (NBC).She made the remarks in CamTech Summit 2023 held at the Centre for Banking Studies, Phnom Penh on Nov. 30.The summit was organised by the NBC in collaboration with the Cambodia Association of Finance and Technology around the theme: "Forging Partnerships: Fostering Collaboration and Innovation for Digital Financial Services in Mekong and Beyond."The CamTech Summit is a unique opportunity to provide an integrated platform for policymakers, regulators, businesses and Tech players from various sectors to discuss the recent advancement of technologies both in Cambodia and globally, the opportunities and challenges they provide, and their growing importance in shaping the Cambodian economy in the digital era especially in the context of recovery from the Covid-19 pandemic.“This platform will promote awareness, coordination, exchanging of views, knowledge and experience among all stakeholders and enable policymakers and regulators to gather input for better design of appropriate policies and regulations to cope with fast-evolving technology, and especially prepare Cambodia for the transition towards a digital economy and moving from a middle income to an upper middle-income country,” she said.In partnership with and in support of the private sector, the NBC has been at the forefront of this trend, leveraging new technologies to modernise payment systems by introducing a range of innovative solutions - the most prominent being our Bakong backbone for payment systems to enhance interoperability, promote financial inclusion, and facilitate the ease of using the Cambodian Riel, she said.While the offer of digital financial services has kept growing over the years, especially since it enabled the financial sector to demonstrate its resilience throughout the Covid-19 pandemic, the FinTech industry has been given the opportunity to play a significant role in promoting financial inclusion, provided a number of challenges be addressed, NBC Governor said, adding that such challenges include digital literacy especially in the rural areas; cybersecurity risks; data privacy and data protection.The NBC is committed to further supporting FinTech adoption, innovation and fair and transparent competition as reflected in its FinTech Development Roadmap (FDR) 2020-2025 in alignment with the objectives of the Financial Sector Development Strategy (FSDS) 2016-2025, the National Financial Inclusion Strategy (NFIS) 2019-2025 and Digital Economy and Society Framework by the Royal Government of Cambodia (RGC).
CDC Approves 7 New Investment Projects worth Almost US$33 Million
Phnom Penh, November 30, 2023 --The Council for the Development of Cambodia (CDC) has granted licences to seven more investment projects with a total capital of US$32.9 million.According to a CDC’s press release issued this morning, the newly approved projects belong to seven different companies. Four of the projects are located in special economic zones (SEZs) in Svay Rieng province, and the rest in SEZs of Preah Sihanouk province.The new investment projects cover the manufacturing of fabrics, bags, Christmas trees and decoration materials, plywood, wood products and furniture, and wooden door and window, the CDC said.They will generate a total of some 3,500 jobs for the locals, the same source pointed out.
Financial Inclusion Contributes to Sustaining Economic Growth and Reduce Poverty: NBC
Phnom Penh, November 30, 2023 --Financial inclusion has been playing a crucial role in sustaining economic growth and reducing country inequality and poverty in Cambodia, thanks to the National Financial Inclusion Strategy 2019-2025 (NFIS) and efforts by the central bank with coordination from financial services providers, a senior official of the National Bank of Cambodia (NBC) said.H.E .Yim Leat, NBC Deputy Governor, made the remark at the UNESCAP Community of Practice Study Visit Programme on "Financial Inclusion" held at Sokha Phnom Penh Hotel, on Nov. 29, attended by delegates and colleagues from Colombia, Fiji, Malaysia, Bhutan, and Nepal.The National Financial Inclusion Strategy 2019-2025 (NFIS) had been formulated to determine clear priority activities and action plans to increase access to and usage of quality formal financial services from unserved or underserved populations.“Over years of NFIS implementation, Cambodian financial inclusion landscape has significantly improved. These achievements were consequences from efforts made by NBC with the coordination from associations, financial services providers and other relevant stakeholders which have continuously involved in accelerating financial inclusion and consumer protection in Cambodia,” he said.To promote financial and digital financial literacy, NBC, with the cooperation from various relevant stakeholders, has been implementing many financial literacy and financial inclusion programmes such as, the integration of financial subject into national curriculum, the enhancement of women's financial literacy and digital literacy, catalysing of women entrepreneurship (under ESCAP's project).NBC has been always supportive in financial services diversification and innovation to expand usage of financial services to underserved and unserved populations.NBC has developed various payment infrastructures such as National Clearing System, FAST payment, Retail Pay, Cambodian Shared Switch, and Bakong system etc.“This enables interconnectivity in payment industry that allows users to conduct payment transactions across different payment service providers, payment schemes, and e-wallets. The KHQR is not only widely used for retail payment in Cambodia, but it allows the NBC to develop cross-border payment system within other countries,” he said.KHQR is a universal quick response (QR) code system created for retail payments in Cambodia. It only requires a single QR for receiving payment from any mobile app including the Bakong app.According to the NBC, there were a total of 19.5 million e-wallet accounts in 2022, up from 13.6 million in the year before.The country recorded 1 billion online payment transactions with a total amount of US$272.8 billion last year, the NBC said.
US$50 Million Loan from ADB to Deepen Cambodia’s Public Financial Management Reforms
Phnom Penh, November 24, 2023 --The Asian Development Bank (ADB) approved a US$50 million policy-based loan to support the Government of Cambodia improve its public financial management (PFM) systems to deliver effective and efficient public services for inclusive growth.According to an ADB’s press release AKP received this morning, the second subprogramme of the Strengthening Public Financial Management Programme builds on the first subprogramme’s achievements to enhance policy and regulatory frameworks for expenditure and revenue management; improve the absorptive capacity of selected government ministries to implement PFM reforms; and strengthen the oversight responsibilities of the National Audit Authority.Reform measures supported under the second subprogramme to modernise PFM systems in Cambodia have been fully implemented prior to approval. These include improvements in strategic planning and budgeting to improve alignment with policy objectives, boosting revenue mobilisation to further expand fiscal space for public expenditure priorities, enhanced public investment management for effective public expenditure management, and strengthened public debt management.Greater efforts to boost digitalisation of PFM systems and strengthening of internal and external audits were among the reform measures to improve operational efficiency, foster financial accountability, and enhance oversight of public expenditure.“The reforms under ADB’s financing respond to the development constraints identified by the government in Cambodia’s expenditure and revenue management processes. They will enhance the implementation capacity of line ministries and strengthen external audit functions,” said ADB Country Director for Cambodia Jyotsana Varma. “Interventions under the programme will provide extra fiscal space, enabling the government to improve the availability and quality of public services and support inclusive growth.”ADB has a long-standing partnership in supporting Cambodia's PFM reforms both at the national and subnational levels since 2008. This second subprogramme builds on these foundations and includes capacity development for government officials on gender-responsive budgeting and integrates gender mainstreaming in governments budgets to improve gender equality. It also includes the integration of climate adaptation and mitigation considerations in public investment projects to boost resilience to natural hazards and ensured focused budget allocations to build climate resilience.ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.Deputy Prime Minister and Minister of Economy and Finance H.E. Aun Pornmoniroth (4th L), who is also the Chair of the Public Financial Management (PFM) Reform Steering Committee, and ADB Country Director for Cambodia Ms. Jyotsana Varma (5th R) pressing a symbolic button in an event to officially launch the rollout of the Financial Management Information System. (Photo: ADB)
Cambodia, EU to Continue Cooperation on Agricultural Development in Cambodia
Phnom Penh, November 23, 2023 --Cambodia and the European Union (EU) are committed to fostering cooperation on the development of agriculture and natural resources in Cambodia.The commitment was made in a meeting between H.E. Dith Tina, Minister of Agriculture, Forestry, and Fisheries, and a working group of the EU delegation here in Phnom Penh on Nov. 22.H.E. Dith Tina shared with the EU delegation a new agricultural community policy, which was launched on Nov. 20, adding that the policy needs cooperation and support from development partners as well as other players.The minister welcomed the EU working group to promote green agri-trade and added value to agricultural products that benefit small-scale farmers.He also encouraged the EU working group to cooperate and conduct studies on its development projects, especially those in line with the Cambodian government's priorities.
More Investments in Agriculture Encouraged
Phnom Penh, November 23, 2023 --The Ministry of Agriculture, Forestry, and Fisheries has asked the Japan-Cambodia Association (JCA) to invest more in Cambodia's agriculture.The request was made by the minister, H.E. Dith Tina, during a meeting with H.E. Fumiaki Takahashi, President of JCA and Former Ambassador of Japan to Cambodia, here in Phnom Penh on Nov. 22.H.E. Dith Tina affirmed that the ministry is ready to cooperate and coordinate with Japanese investors wishing to invest in the country.Cambodia has potential agricultural products for export to Japan, including fresh mango and cashew nuts, said the minister, adding that Cambodia is also trying to expand the market for the cashew shell, which can be processed into biomass energy.He also underlined Cambodia's agricultural development policy to promote solid and reliable modern agriculture community development to supply large-scale investment.The ministry will deploy 1,600 of its technical officials to help train local farmers technically and support them to expand the markets for their produce.
USAID Announces New Project for Enhancing Quality of Healthcare Across Cambodia
Phnom Penh, November 23, 2023 --The United States Agency for International Development (USAID) announces the award of its new, five-year Enhancing Quality of Healthcare Activity II (EQHA II) to continue supporting efforts to improve the quality of public and private health services for all Cambodians.According to a USAID’s press release, EQHA II builds on significant success achieved under USAID’s flagship, five-year EQHA I project from 2018 to 2023 in furthering national systems for improved licensing and accreditation, leading to improved accountability of providers in the provision of healthcare across Cambodia.USAID’s US$35 million EQHA II project will be implemented by FHI 360, an international organisation that has partnered with Cambodia and USAID/Cambodia for over 25 years. USAID’s support through EQHA II will, in coordination with the Ministry of Health, support Cambodia to catalyse and accelerate systems for assuring, monitoring, and increasing quality standards across the national health system, the same source added.It will also help Cambodia to accelerate and sustain progress against priority public health challenges including reducing the incidence of infectious diseases such as HIV/AIDS and tuberculosis, reducing deaths among mothers and children, improving reproductive health, and strengthening preparedness and response to emerging disease threats, it said.“By supporting Cambodia’s health system, including both public and private healthcare providers, to improve the quality of healthcare, USAID is continuing to deliver on our longstanding commitment to the Cambodian people,” explained USAID Mission Director Kerry Pelzman. “This work is critical to enabling Cambodia to sustain impressive gains in public health achieved over the past decade.”Key areas of focus include augmenting service integration to increase efficiency and effectiveness, advancing regulation and accreditation systems, and bolstering the health system’s institutional capacity to address emerging national health priorities. This comprehensive approach ensures a robust response to Cambodia’s evolving health needs.
China approves $69bn US technology merger
With the completion of its $69 billion (£55 billion) acquisition of cloud computing company VMware, computer chipmaker Broadcom has closed one of the largest takeovers in the technology industry.International regulators examined the deal before China gave its final approval.There were worries that the US-China tensions would have an impact on it.The approval comes after Presidents Xi Jinping and Joe Biden met last week at the Apec summit in the US.Based in San Jose, California, Broadcom is an American corporation that creates, develops, and manufactures semiconductor chips in addition to providing infrastructure software solutions.Another American business, VMware, is based in Palo Alto, California. It creates virtualization software that enables users to operate virtual computers on real computers to boost productivity.Hock Tan, the president and CEO of Broadcom, expressed excitement about uniting their teams to create "the world's leading infrastructure technology company".By working together, they intend to develop hybrid and private cloud environments that enable customers to run "apps anywhere".The firm has applied for and been granted legal merger clearances in Australia, Brazil, Canada, China, the UK, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, and the United States in order to finalize the deal.According to the firm, shares of VMware will no longer be traded on the New York Stock Exchange (NYSE).Since 2018, when US President Donald Trump put tariffs and other trade obstacles on China, the US and China have been embroiled in a trade war.The newest popular commodity is advanced chips, which are utilized in anything from fighter jets to automobiles and cellphones.China retaliated last month over the Biden administration's move to place additional export restrictions.However, the two leaders that convened at the Apec summit were able to reach a consensus on other matters, such as cooperating to combat climate change and restarting military contact.President Xi was described as "a dictator" by President Biden, but China's state-run media celebrated the summit as "historic" and said it would be a "new starting point" for their relationship.Tensions between the two largest economies in the world have affected Broadcom.The company revealed plans in 2017 to acquire rival Qualcomm in what would have been the biggest buyout deal ever.However, after US national security experts warned that a pact could help China overtake America in the race to build 5G technology, Mr. Trump stopped it four months later.A few weeks later, Broadcom made the decision to relocate from Singapore to the US.
Cambodia, China Reach Cooperation on Financial Innovation and Payment System
Phnom Penh, November 22, 2023 --Cambodia and China have entered into cooperation on financial innovation and clearing and settlement arrangements, to facilitate efficient and secure cross-border payment transactions between the two countries.The Memorandums of Understanding (MoUs) on the Cooperation in the Area of Financial Innovation and Payment Systems, and the Establishment of a Clearing and Settlement Arrangement in Cambodia were signed on Nov. 21 in Beijing, China between the National Bank of Cambodia (NBC) and the People's Bank of China.H.E. Dr. Chea Serey, Governor of NBC, and H.E. Dr. Pan Gongsheng, Governor of the People's Bank of China were the signatories.According to NBC, the first MoU intends to facilitate efficient and secure cross-border payment transactions between Cambodia and China, and to foster innovation and the adoption of financial technology in the banking and financial services industry.This cooperation will enhance confidence, security, efficiency, stability and inclusion in the sector, and support the policies of the Royal Government of Cambodia in the development of the economy and digital society.For the second MoU, both parties have agreed to enhance coordination and cooperation to strengthen the capabilities of the Cambodian banking sector to better serve the increasing bilateral trade, investments and financial flows between China and Cambodia.By innovating financial products and services offered by Cambodian banks to Chinese investors, this MoU will contribute to enhancing Cambodia's competitiveness and attractiveness as an investment destination.
60% of Japanese gold credit card customers earn less than $27,000 annually, Surveys
Tokyo -- According to a recent survey, almost 60% of Japanese credit card holders have annual incomes of less than 4 million yen (about $27,000), suggesting that once-prestigious credit cards are becoming increasingly widespread in the nation.The credit card usage poll was carried out in mid-October by mobile carrier giant NTT Docomo Inc., with 7,000 respondents countrywide in the 15–79 age range. The results among gold card holders have been examined by the corporation (1,613 in the preliminary poll and 617 in the main survey).When asked what their yearly income was, "less than 2 million yen (roughly $13,500)" came in first place with 39.6% of respondents, followed by "2 million yen and more, but less than 4 million yen" with 23.2%. This means that 62.8% of gold credit card holders earned less than 4 million yen per year. At 17.2%, "4 million yen and more, but less than 6 million yen ($40,500)" came next. In all, the income group of less than 6 million yen accounted for 80% of gold credit card holders.Twenty.6% of respondents said that "it's easy to earn points or miles" was the reason they had gold credit cards. Merely 4.2% of respondents gave the gold card's "prestigious status" as their explanation.When asked which credit cards they use as their primary credit cards, 48.6% of gold card holders responded with "return rates for points or miles," followed by 42.3% with "various ways to use points or miles" and 27.7% with the statement that their primary credit cards are those issued by the stores or establishments they frequent. According to these responses, a lot of people utilize their gold credit cards to accrue miles or points.NTT Docomo made the following observation: "Many homemakers and students fall into the income band of less than 4 million yen. Today, anyone can obtain a gold credit card; one is no longer required to demonstrate their social standing in order to obtain one."
Oil prices fall after OPEC+ postpones meeting
Global oil prices dropped on Wednesday as a result of the Organization of the Petroleum Exporting Countries (OPEC) and its allies postponing their important ministerial meeting from Sunday to November 30.The Vienna-based organization issued a succinct statement announcing the OPEC+ alliance's postponement without offering any justification. The ten partners led by Russia and the 13 OPEC members led by Saudi Arabia are expected to deliberate on their output strategy in the face of falling oil prices and recent reports of disagreement among alliance members.Following the unexpected statement, the price of crude fell by more than five percent globally.The primary US crude oil contract, WTI, was down 4.6% to $74.21 at 15:25 GMT, while the primary European contract, Brent, was down 4.3% to $78.88.Contrasting OpinionsGiovanni Staunovo, an analyst at UBS, told AFP that "uncertainty is never good for financial markets," as they would now have to wait longer to find out what OPEC+ will do next year.He continued, verifying what two OPEC+ sources had told AFP under condition of anonymity—that there were "different views among the group's participants"—by saying that the postponement proved this.According to Jorge Leon of Rystad Energy, the alliance had previously postponed ministerial sessions, "but never for four days," signaling problems in reaching a consensus.Since September's peak, oil prices have fallen below $80 per barrel, and analysts predict that the alliance will continue to reduce production.The way the cuts may be distributed among members and how they would be applied the following year, however, is a big unknown.The way the cuts may be distributed among members and how they would be applied the following year, however, is a big unknown.Nine OPEC+ countries, including Dubai, Baghdad, Moscow, and Riyadh, have cut back on their supply in recent months.Saudi Arabia took the most hit, willingly reducing output by an additional million barrels per day since July.Commerzbank analyst Carsten Fritsch stated that Saudi energy minister Prince Abdulaziz bin Salman recently "blamed speculators for the oil price slide" instead of sluggish demand, expressing dissatisfaction at the decline in prices.End of the Saudi cutbacks?On Wednesday, Russian Deputy Prime Minister Alexander Novak struck a different tone, stating that "the current situation is reflected objectively in the oil prices."Because they have reached a proper level, the market is in equilibrium. However, we will go into more depth about these matters at our next meeting," he continued, as cited by Russian news outlets.The price of oil is a long way from what it was after Russia invaded Ukraine, when it was close to $140 per barrel.Nevertheless, despite worries about demand, especially in China, the world's largest importer of petroleum, they are still higher than the average of the previous five years.However, the $80 threshold is crucial for the Saudis since, based on IMF projections, the break-even price is marginally higher.According to Fawad Razaqzada of City Index, investors worry that Riyadh may stop making further cutbacks in the absence of an agreement, as reported by AFP.He went on, "It's obvious that they're not happy with some of the other OPEC+ members who are not complying with the cuts."According to reports, Russia is hesitant to carry out its obligations because it needs the money from oil sales to fund its war in Ukraine."Disagreements between Riyadh and African countries over quotas" were also cited by the two people close to the conversations whom AFP contacted.A few participants expressed their desire to boost their output.At the last conference in June, the United Arab Emirates won an increase in their volume for 2024, to the prejudice of other countries such as Angola, Congo and Nigeria.
World Bank Lowers Cambodia's Economic Growth Forecast to 5.4% in 2023 and 5.8% in 2024
Phnom Penh: Cambodia's economy is projected to grow by 5.4% in 2023, slightly lower than the 5.5% forecast in May and up to 5.8% in 2024 and 6.1% in 2025, with expectations of increased infrastructure investment and the benefits that Cambodia will have from trade agreements with countries in the region. This is according to the latest report on the current state of the Cambodian economy released by the World Bank on November 22, 2023.This year, a combination of external pressures and structural challenges put pressure on growth despite the recovery in tourism and other services. In its latest Cambodia Economic Update: From Recovery to Reform, the World Bank says that if structural reforms go hand in hand with investment in infrastructure and trade opportunities, it will lead to more economic growth that can accelerate in the medium and long term. In 2022, Cambodia's economy will grow by 5.2%.Mariam Salim, World Bank Country Manager for Cambodia: "In order to maintain economic growth, Cambodia needs to help the private sector to function as a growth engine, and this can be achieved by taking immediate action to improve the performance of the public sector.""Maintaining financial stability is also a priority and more needs to be done to restore fiscal space," she added. Despite past investments in public infrastructure, transportation and logistics systems with limited capacity and unreliable power supply continue to be a heavy burden on business and consumer costs. . In the medium term, the simultaneous external crises, including the global epidemic, Russia's war of aggression against Ukraine, and high interest rates on international markets, are expected to continue as an obstacle to economic growth.
CDC officially approves two hydropower projects worth over $ 400 million
Phnom Penh: Two hydropower projects worth more than $ 400 million have been officially approved by the Council for the Development of Cambodia to invest in Mondul Seima and Thmar Bang districts, Koh Kong province.According to a release from the Council for the Development of Cambodia on November 21, the 70-megawatt Stung Russey Chrum Kandal hydropower project in Mondul Seima district and the 100-megawatt Veal Thmor Kambot hydropower project in Thmar Bang district Koh Kong province, which is behind the investment from KHMER ELECTRICAL POWER CO., LTD, has been officially approved by the CDC in the form of construction, business, and transfer (BOT) with an investment capital of approximately 447 million US dollars and can create 230 jobs.In addition to the above large-scale projects, the Council for the Development of Cambodia on the same day also decided to grant investment rights to six other companies with an investment of about $40 million to operate in Cambodia, located in Kampong Chhnang, Kampong Speu and Phnom Penh with thousands of additional job opportunities.
Alipay+ Now Integrated With Cambodia’s National QR Code KHQR
National Bank of Cambodia and AliPay Connect Pte. Ltd. Signed a Memorandum of Understanding (MoU) on "Cross-Border Payment Cooperation via Qur Code" signed directly by HE Dr. Chea Serey, Governor of the National Bank of Cambodia and Mr. Douglas Feagin, Senior Vice President of Ant Group on November 15, 2023 during the Singapore Financial Technology Event 2023 in Singapore.This Memorandum of Understanding aims to promote cross-border payment transactions via QR Code between KHQR Code network of Bakong system and AliPay QR Code network efficiently and securely. Through this collaboration, Bakong users can make payments with 83 million Alipay merchants worldwide.Similarly, international tourists visiting Cambodia can also make payments through the KHQR system easily and get a better payment experience in Cambodia to contribute to better economic growth. It should be reminded that Cambodian traders must have an account in riel and accept riel. At the same time, Lok Chumteav Bandith requested all banking institutions to encourage their traders to open riel accounts and make payments in riel to get the most benefits from this system.
Timor-Leste to Buy 4,000 Tonnes of Milled Rice from Cambodia
Phnom Penh, November 16, 2023 --Timor-Leste will buy 4,000 tonnes of milled rice from Cambodia for the first time under the state mechanism after the two countries signed a memorandum of understanding on rice trade on Oct. 20, 2022.A contract on the rice purchase was inked here on Nov. 15 during a working meeting between H.E. Chan Sok Ty, President of Green Trade Company of the Ministry of Commerce, and a delegation from Timor-Leste, led by Mr. Anibal Carvalho Muniz, Senior Representative of the Ministry of Economic Affairs of Timor-Leste, and colleagues from the National Logistic Centre (CLN).Ambassador of Timor-Leste to Cambodia H.E. Ermenegildo Kupa Lopes was also present on the occasion.The meeting was aimed to explore the potential for rice trade cooperation and negotiate technical terms for export to Timor-Leste.H.E. Chan Sok Ty confirmed that this is to open more new markets for Cambodia in the rice sector, and the Ministry of Commerce will continue to seek new markets in this field.
Australia Committed to Supporting Cambodia’s Clean Energy Transition
Phnom Penh, November 13, 2023 --The Australian Ambassador to Cambodia H.E. Justin Whyatt has expressed his country’s commitment to support Cambodia’s clean energy transition goals, said the embassy in a news release this morning.Through Cambodia Australia Partnership for Resilient Economic Development (CAPRED), Australia will support Cambodia to increase the uptake of variable renewable energy, support professional development of energy officials, connect remote Cambodians to off-grid solar, and support energy efficiency through an Energy service companies (ESCO) market, H.E. Ambassador pointed out.Cambodia is going to host the annual Clean Energy Week on Nov. 16-23 with an aim to promote and celebrate the diverse opportunities that clean energy brings to the country.The forthcoming event incorporates dialogues, workshops, exhibitions, and awareness-raising events to showcase the innovations, successes, and inclusive benefits of clean energy while fostering collaboration between private and public sector stakeholders and awareness among the public.This year’s event is crucial as Cambodia has been advancing its clean energy opportunities in recent years, with a strong commitment to delivering energy system security, reliability and cost-effectiveness.The sixth edition of the Clean Energy Week is expected to attract a diverse audience, including policymakers, industry professionals, investors, and academics, with the shared goal of accelerating Cambodia's clean energy transition.
Electrical machinery sales close to double as tech exports surge
According to the General Department of Customs and Excise (GDCE), in the first nine months of 2023, Cambodia's exports of electrical machinery, equipment, and related products exceeded $2.4 billion, nearly doubling in value from the same time the previous year.Under Harmonized System (HS) Code 85, the exports achieved a value of $2.476 billion from January to September 2023, a 93.5% increase over the $1.28 billion registered in the same period in 2022.This is 14.6% of Cambodia's overall export earnings for the same time, which came to almost $17 billion. Merely 7.5% of the entire exports in 2022, totaling over $17 billion, came from this sector.Economist Hong Vanak of the Royal Academy of Cambodia's International Relations Institute stated on November 6 that the nation has become a diverse production hub for the global market as a result of its strategic efforts to attract both foreign and local investors and its steady development.The speaker emphasized that the increase in electrical exports is indicative of both the capacity of the workforce and the attraction of major firms to develop factories and production facilities in the nation.According to him, "the construction of factories in Cambodia that can produce machinery and components is a significant draw for large companies, who may prefer to manufacture or assemble products locally to avoid the shipping costs incurred from overseas assembly."He pointed out that the industries connected to these products might make more money than the labor-intensive ones.He cited a number of reasons for the rise in these products' exports, including the nation's political stability, advantageous location, cheap and abundant labor, effective transportation system, investment-friendly laws, and accessibility to export markets with favorable tariff agreements.To put things in perspective, the Kingdom's Code 85 product exports reached $1.998 billion in 2022, up 84.8% from $1.081 billion the previous year. According to the GDCE, these exports and allied goods made up 8.9% of the nation's total export value in 2022, which came to $22.482 billion.
China trade fuels agricultural investment
Greater tax incentives to encourage investment have also been suggested, and Chinese-ASEAN financiers have been asked to consider investing in Cambodia's agriculture industry.Director-general of the Institute of China Studies at the Royal Academy of Cambodia (RAC), Ky Sereyvath, delivered the following statements during the recently concluded Zhengzhou-Cambodia-ASEAN New Air Silk Road Development Forum in Zhengzhou, in the province of Henan, China.He emphasized Cambodia's strategic location at the center of ASEAN and proposed that it might act as a major trading hub for Henan, boosting global trade by exchanging goods, capital, and services with ASEAN countries.The commerce hub function of Cambodia may enhance Zhengzhou's commercial ties with ASEAN. The impact of trade between China and Cambodia on the two countries' economic cooperation serves as evidence of this, the speaker said.Our goal is to process only the best mangoes, whether they are dried or turned into jam. Henan is considered to have a lot of locations that are good for farming, however, Cambodian mangoes are better in terms of flavor. With the full support of the Cambodian government, this offers Chinese investors a fantastic opportunity to import mangoes from Cambodia at a reduced price," he continued.He also voiced the hope that China will allow favorable tariffs and lower non-tariff barriers to Cambodian exports, particularly for chemicals and pesticides.In the first nine months of 2023, trade volume between the two countries totaled $9.099 billion. At $1.059 billion, Cambodia's exports to China represented an 18% increase over the same time in 2022. China's imports came to around $8.040 billion, up slightly over one percent from the year before, according to the Ministry of Commerce.
Cambodia has more than 600 products registered in 1 village, 1 product
Phnom Penh: Currently, Cambodia has more than 600 products listed in 1 village, 1 product, while some products are popular and have entered the international market, while some products are presented in major supermarkets in the country as well. This statement was made by Mr. Suong Noy, Deputy Secretary General of the National Committee for the Promotion of One Village, One Product Movement, in the dissemination workshop on the compilation of members of the One Village, One Product Movement 2023 on November 7, 2023. Mr. Suong Noy said that all the products listed include products, services, handicrafts, agricultural production, food, beverages, goods and consumables, cultural products, and fine arts.In fact, through the collection of 1 Village 1 Product's product collection in the past two times, the products that have been proposed for evaluation as Village 1 Product 1 products are mostly products in the food group with little processing from agricultural products such as dried meat, vegetables, pickles, sweets, fruits, and so on.Dr. Ouk Rabun, Senior Minister, Chairman of the National Committee for the Promotion of Village 1 Product 1, and Chairman of the Council for Agricultural Development, said that 1 Village 1 Product is an effective mechanism to promote local economic development and job creation. In place of reducing migration, reducing poverty, these are essential bases in contributing to Cambodia achieving its vision of becoming a high-middle-income country by 2030 and a high-income country by 2050.
Myanmar exports more than 250,000 tons of green beans, MOC
International: The Ministry of Commerce stated that Myanmar exported about 253,109 tons of green beans from April 1 to October 27 of the 2023-24 fiscal year to March next year, earning more than 170 million US dollars. According to a release by Xinhua.From April to October this year, more than 196,536 tonnes of green beans were shipped by sea and more than 56,572 tonnes were traded through cross-border trade, the ministry said. Ministry figures show the country earned more than $ 800 million from exports of more than 955,904 tonnes of soybeans and grain. Soybeans and grains are Myanmar's second largest crops after rice, accounting for 30 percent of total agricultural production, according to the ministry. Myanmar mainly exports soybeans and grains to China, India and European countries.