Cambodia 20240729: Focused, Extensive, Crucial
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Headlines:
HK Tycoons Eye Cambodian Economic Sandbox
Digital Wallet Woos Tourist Dollars
New Dry Dock Fit for Chinese Subs
Trade with RCEP Nations Surges, Sort Of
Push for Improved Nationwide Water Access
Food Safety Gets a Seat at the Big Table
Tax Revenue Takes a Nosedive
Australia and Japan Show Investment Interest
Diplomacy: CN, VN, LA, SG, RU, NO, IN, NZ, LK
Move to Establish First Journalism Charter
Tourism Booms, Thailand Leads the Pack
AirAsia Direct Flights to Kuala Lumpur
Raksa Neth: From Hobbyist to Influencer
Tree-Planting Campaign Faces Skepticism
HK Tycoons Eye Cambodian Economic Sandbox
Hong Kong's business elites are salivating over trade opportunities in Cambodia. The new administration is expected to roll out an array of policies to diversify beyond textiles and pull in more foreign investment. A delegation led by Hong Kong's Chief Executive has scheduled a fact-finding mission to Cambodia, Laos, and Vietnam, to try and identify the best business prospects. Cambodia's stable political climate, dollarized economy, and competitive labor costs are being talked about as advantages, positioning it as Vietnam's understudy in the manufacturing world.
Read more: South China Morning Post
Digital Wallet Woos Tourist Dollars
The National Bank of Cambodia is rolling out the red carpet for foreign tourists with its Bakong payment system, a digital effort to ease currency exchange woes. Tourists are now able to use the Bakong system with credit cards from home, side-stepping the need for local bank accounts. The new app capabilities are intended to grease the wheels of the tourism sector and make it simpler for tourists to spend.
Read more: Khmer Times (Bakong for Tourists), Khmer Times (App Development)
New Dry Dock Fit for Chinese Subs
A 140-meter dry dock at Cambodia's Ream naval base, suspiciously tailored for Chinese submarines, is getting close to completion according to U.S. military analyst Thomas Shugart. Satellite images show that the dock and a 270-meter wharf are on the brink of readiness, potentially offering China a cozy spot to park its underwater fleet near the strategic Strait of Malacca. While too small for larger vessels, the dock's dimensions have set off alarm bells in Vietnam which is tied up in territorial tiffs with China in the South China Sea.
Read more: RFA
Trade with RCEP Nations Surges, Sort Of
Trade with Regional Comprehensive Economic Partnership (RCEP) countries swelled by 14% year-on-year to nearly $17 billion in H1 2024, making up 64% of total trade volume. Exports to RCEP members inched up by 11% to $4.52 billion, while imports ballooned by 15.3% to $12.38 billion. The Cambodian Foreign Minister, in a moment of optimism, called for effective use of RCEP and ASEAN FTAs to keep the momentum going. We wonder if the trade imbalance is a feature or a bug in Cambodia's ongoing economic strategy.
Read more: Khmer Times (Export Growth), Fibre2Fashion (Trade Stats), Khmer Times (FTAs)
Push for Improved Nationwide Water Access
The Cambodia Clean Water Forum brought together more than 500 stakeholders to chat about improving water supply services through better collaboration between public and private sectors. Topics included implementing the Law on Clean Water Management, increasing technical capacity, and boosting compliance. Financial institutions showed off support mechanisms, with SME Bank approving $14 million in low-interest loans for private operators.
Read more: Khmer Times (Collaboration), Khmer Times (Forum Details)
Food Safety Gets a Seat at the Big Table
Commerce Minister Cham Nimul recently talked up the government's commitment to food safety at a national workshop in Phnom Penh. Putting it up as a top priority among 12 pressing issues, the initiative calls for collaboration among ministries and other institutions to manage risks in the food production chain. Efforts include new laws on food safety, consumer protection, and e-commerce, in order to bring Cambodian processes up to international standards. The workshop was supported by the USDA, presumably to ensure Cambodia's food doesn't become an international incident.
Read more: EAC News
Tax Revenue Takes a Nosedive
In the first half of 2024, Cambodia's General Department of Taxation pulled in $1.91 billion in tax revenue, a 7.4% decrease from the same period last year. This drop is 46.06% of the target set in the 2024 budget law. The GDT is aiming to collect a total of $4.16 billion for the year, a goal that's looking increasingly optimistic. The collected taxes include profit tax, withholding tax, salary tax, VAT, and property tax, among others.
Read more: Khmer Times (Revenue Collection), Cambodianess (Revenue Drop)
Australia and Japan Show Investment Interest
Australia has set up a $1.3 billion Southeast Asia Investment Financing Facility and appointed Carolyn Bagster as First Secretary – Investment at the Australian Embassy to support trade and investment between the two nations. Japan's JETRO has reaffirmed its commitment to promoting Cambodian investment potential, focused on expanding Japanese businesses' horizons in Cambodia.
Read more: Khmer Times (Australia), Khmer Times (JETRO)
Diplomacy: CN, VN, LA, SG, RU, NO, IN, NZ, LK
Recent meetings include discussions with China to improve civil service cooperation and a meeting between Hun Sen and a senior Vietnamese Politburo member to deepen ties. Cambodian Foreign Minister Sok Chenda Sophea met with counterparts from Russia, Norway, India, and New Zealand in Laos to expand cooperation in trade, investment, and tourism. Cambodia committed to further cooperation with Sri Lanka as their ambassador brought her tenure to a close. The Singaporean Ambassador talked up strengthened partnerships in renewable energy and capacity building.
Read more: Khmer Times (China), Phnom Penh Post (Singapore), EAC News (Sri Lanka), EAC News (Vietnam), Khmer Times (FM meetings)
Move to Establish First Journalism Charter
More than 200 journalism experts and practitioners met to contribute to Cambodia's first-ever Charter for Professional Journalism. The workshop’s stated objective was to harmonize professional journalism ethics and guide media practice. The charter is claimed to help address fake news, misinformation, and promote public trust. Minister of Information Neth Pheaktra emphasized the charter's role in supporting democracy, the rule of law, and sustainable development while adapting to evolving technologies like AI. There was no mention of whether the charter could become a tool for censorship in disguise.
Read more: Khmer Times
Tourism Booms, Thailand Leads the Pack
The Cambodian tourism sector is seeing a continued post-pandemic surge. The country welcomed 3.16 million international tourists in the first half of 2024, a 23% increase from the previous year. Thailand was the largest source of visitors, with nearly a million tourists, followed by Vietnam and then China. Factors driving the growth include the new Siem Reap Angkor International Airport, tourism campaigns, and a growing interest in ecotourism. Cambodia is also shoring up its tourism infrastructure to attract more diverse international travelers, presumably hoping to become more than just a stopover on the Southeast Asia backpacker trail.
Read more: Khmer Times (Tourism Revival), Cambodianess (Stats), China.org.cn (Chinese Tourists), VnExpress (Thailand’s lead)
AirAsia Direct Flights to Kuala Lumpur
AirAsia Cambodia will begin daily direct flights between Phnom Penh and Kuala Lumpur starting August 1. This new route follows closely on the recent launches of other new connections, as Cambodia's tourism sector continues on it’s growth trajectory (see previous article).
Read more: Khmer Times
Raksa Neth: From Hobbyist to Influencer
Raksa Neth, a leading content creator and Cambodian fashion model, talks about insights into her career and the ever-changing landscape of influencer marketing. Starting as a hobby, she later turned content creation into a full-time role. Raksa manages her brand independently, sharing her time in roles between Cambodia and the Philippines. She talks about the importance of personal connections and the challenges of expanding into larger markets, offering inspiration to other aspiring content creators. It seems the business of being liked online is good these days.
Read more: Cambodia Investment Review
Tree-Planting Campaign Faces Skepticism
Cambodia plans to plant a million trees this year in a step towards increasing forest cover by 60% by 2030. Environment Minister Eang Sophalleth shared the benefits of reforestation for public health and investment. Despite these efforts, experts are saying that reforestation initiatives often have low long-term survival rates and are not appropriate replacements for old-growth forests. Critics argue that the government should focus more on protecting existing forests from deforestation driven by economic land concessions and illegal logging. It appears Cambodia is trying to see the forest for the trees, but the view remains unclear.
Read more: RFA
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