Mekong Memo Cambodia 20230918

Mekong Memo Cambodia Weekly, September 18, 2023: Business, politics, finance, trade & legal news.

We monitor and filter the very best and most insightful stories from Southeast Asia directly to your inbox every week.

By reviewing a wide variety of media including legal, financial and other relevant industries along with government and NGO sources, we are able to sift through the noise and bring you only what we believe to be relevant to an informed observer of Cambodia business news.

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Here is your Mekong Memo Cambodia for the week of September 18, 2023.

Headlines:

China and Cambodia Strengthen Diplomatic and Economic Ties Amid Indo-Pacific Tensions

China's Electric Vehicles Gain Traction in Cambodia Amid Government Incentives

RCEP Offers Economic Upside Amid Implementation Challenges

Climate Risks Could Cost Asian Apparel Hubs $65 Billion by 2030

Cambodia and China Strengthen Science and Tech Partnership

Information Ministry Aims for Influential National Media Platform

Fostering Entrepreneurial Ecosystems for Social Impact in Cambodia

Insurance Sector Boasts 20% Decadal Growth, Aims for Higher Penetration

Strong Growth in Microfinance Deposits

Rapid Growth in Digital, Cross-Border Transactions

Toyota Set to Launch New Plant in Phnom Penh

Gov’t Secures $787M in Concessional Loans, Up 24% YoY

Phnom Penh Port Revenue Declines Amid Mixed Performance Metrics

Government Announces 20% Capital Gain Tax Effective January 2024

Balancing Between Fossil Fuels and Green Energy

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China and Cambodia Strengthen Diplomatic and Economic Ties Amid Indo-Pacific Tensions

Chinese President Xi Jinping and new Cambodian Prime Minister Hun Manet have pledged to deepen their countries' cooperation in areas such as law enforcement, security, and industry. This marks Hun Manet's first bilateral visit since taking office. The trip underscores Cambodia’s friendly political and economic relationship with the the Middle Kingdom. Both leaders committed to supporting each other's national sovereignty and development goals. The strengthened relationship comes as geopolitical tensions rise in the Indo-Pacific, particularly in the disputed South China Sea.

Read more: South China Morning Post, VOA Cambodia

China's Electric Vehicles Gain Traction in Cambodia Amid Government Incentives

Chinese electric vehicles (EVs) are becoming increasingly popular in Cambodia, driven by government incentives and consumer awareness of the benefits, such as reduced fuel and maintenance costs. The Cambodian government has lowered import duties on EVs to encourage adoption, aiming for 40% of cars and 70% of motorbikes to be electric by 2050. Local traders like Kim Kheang are making the switch to EVs, citing cost savings and environmental benefits. EVs are similarly priced to petrol vehicles but offer significant long-term savings.

Read more: The Star, Xinhua (video)

RCEP Offers Economic Upside Amid Implementation Challenges

The Regional Comprehensive Economic Partnership (RCEP) is poised to boost Cambodia's economy by attracting foreign investment, enhancing trade balance, and creating jobs. However, the country faces challenges like regulatory hurdles and capacity constraints. Cambodia aims to leverage RCEP to achieve its economic goals, including becoming an upper-middle-income country by 2030. Experts suggest that to fully capitalize on RCEP, Cambodia needs to invest in infrastructure, streamline regulations, and focus on sectors like textiles, agriculture, and manufacturing rather than speculative markets like real estate.

Read more: KiriPost, Khmer Times, Phnom Penh Post