Cambodia 20241021: Chronicling, Sparkling, Stimulating
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Headlines:
Gas-Fired Power Plant is an Energy Milestone
Exports Diversify Beyond Textiles
Investment Ops Draw Canadian, Aussie Interest
Parliament Leaders Chin-Wag for Better Ties
Peace Corps Returns to Cambodia
Anti-Trafficking March Draws Thousands
Tourism Recovery Hinges on Chinese Visitors
Railway Project Negotiations Accelerate
Cambodia Ranks 19th in Asia Power Index
Diplomatic Ties with Australia, Cuba
Air Tech Show Set for December
Real Estate Tax Incentives Extended
PM Outlines Path to High-Income Status
Monks Lead Child Protection Efforts
Gas-Fired Power Plant is an Energy Milestone
Cambodia has inaugurated its first gas-fired power plant in Koh Kong province, a $1.34 billion project which will become the nation's largest power-generation facility. The 900MW plant, owned by the Royal Group, will generate 6,000 GWh of electricity annually under a 30-year agreement with Electricité du Cambodge.
Read more: Khmer Times
Exports Diversify Beyond Textiles
The nation’s export profile has changed a lot over the past decade, with textiles' share of total exports shrinking from 70% to 40%. New export products like machinery, plastics, rubber, and vegetable products have and the country is expanding markets beyond the US, EU, and China to ASEAN. A balanced strategy focusing on food processing, garments, and machinery is being suggested to take best advantage of existing strengths and continue the gradual diversification of the export economy.
Read more: Khmer Times
Investment Ops Draw Canadian, Aussie Interest
A favorable investment climate is starting to grab more attention from abroad. The National Bank of Canada and ABA Bank recently discussed the country's potential during high-level meetings between Cambodian officials and Canadian investors. Separately, Australian Ambassador Derek Yip expressed interest in infrastructure development plans, with trade between Cambodia and Australia passing the $220 million mark in the first three quarters of 2024. New infrastructure projects and business landscape improvements are making it an attractive destination for investors across the board.
Read more: Khmer Times (Canada), The Star (Australia)
Parliament Leaders Chin-Wag for Better Ties
Parliamentary leaders from Cambodia, Laos, and Vietnam met in Vientiane during the 45th ASEAN Inter-Parliamentary Assembly. They discussed strengthening solidarity, friendship, and cooperation between their national assemblies and peoples. The leaders committed to nurturing traditional friendship and comprehensive, long-lasting strategic partnerships with a people-centered focus. They also shared views on promoting cooperation on transnational crimes, cross-border trade, tourism, and people-to-people connectivity.
Read more: Khmer Times
Peace Corps Returns to Cambodia
United States Peace Corps volunteers have resumed service in Cambodia after a six-year suspension. They will work on education, health, and youth development projects throughout the country. The program's return is expected to help improve US-Cambodia relations and bring skills and knowledge to local communities. The Peace Corps has a long history in Cambodia, having first sent volunteers in 1962.
Read more: Phnom Penh Post
Anti-Trafficking March Draws Thousands
More than 1,000 people participated in a march against human trafficking in Siem Reap. The "Walk for Freedom from Human Trafficking 2024" event was organized by local authorities and NGOs. Interior Ministry Secretary of State Chou Bun Eng emphasized Cambodia's commitment to combating human trafficking and protecting victims. The march was intended to raise awareness and promote a united stand against the issue.
Read more: Khmer Times
Tourism Recovery Hinges on Chinese Visitors
The tourism industry recovery is increasingly dependent on the return of Chinese tourists. Local vendors and service providers in Siem Reap are patiently anticipating their return, as visitor numbers still remain below pre-pandemic levels. The tourism sector's reliance on Chinese travelers does, however, raise questions about the sustainability of this dependence and the need for diversification in the country's tourism strategy.
Read more: Travel and Tour World
Railway Project Negotiations Accelerate
Prime Minister Hun Manet called on authorities to wrap up negotiations on a major railway project by year-end. He said there is an urgent need to improve the railway system, citing its benefits in reducing transportation costs and improving logistics. The PM requested that relevant ministries and companies negotiate and sign a Memorandum of Understanding, laying the foundation for improving railway infrastructure.
Read more: Khmer Times
Cambodia Ranks 19th in Asia Power Index
The Lowy Institute's 2024 Asia Power Index ranked Cambodia 19th out of 27 countries in terms of power in Asia. The index evaluates countries' resources and influence, considering factors such as economic capacity, military capability, resilience, future resources, economic relationships, defense networks, diplomatic influence, and cultural influence. The report also shows the continued dominance of the United States, China, India, Japan, and Australia as the region's most powerful influencer nations.
Read more: Khmer Times
Diplomatic Ties with Australia, Cuba
Cambodia is strengthening diplomatic relations with Australia and Cuba. Australian Ambassador Derek Yip pledged to support Cambodia's graduation from Least Developed Country status by 2029 and said that Australia remained interested in infrastructure development. Cuban Ambassador Milena Caridad Zaldivar Piedra has spoken publicly about her country’s long-standing cooperation in education, health, agriculture, and sports. Both countries committed to expanding bilateral cooperation in various sectors.
Read more: Khmer Times (Australia), Khmer Times (Cuba)
Air Tech Show Set for December
Cambodia will host the 4th edition of the Air Tech Show in Phnom Penh from December 15 to 17. The event will show off the latest aviation industry technology and innovations, providing a platform for industry professionals to network and share knowledge. Organized by the Ministry of Commerce along with Cambodia Airports and the Civil Aviation Authority of Cambodia, the show is expected to attract thousands of visitors and promote the country's aviation industry.
Read more: Khmer Times
Real Estate Tax Incentives Extended
Cambodia has clarified and extended real estate tax incentives. The main updates include an amnesty for registration and underdeclared tax, exemptions for agricultural use in Tax on Immovable Property, a five-hectare exemption for Unused Land Tax, and an extension of the Capital Gains Tax implementation date for physical persons until December 31, 2025.
Read more: DFDL
PM Outlines Path to High-Income Status
Prime Minister Hun Manet outlined five strategies to transform Cambodia into a middle-income country by 2030 and a high-income country by 2050. The recommendations focus on diversifying agriculture exports, expanding overseas market accessibility, developing interconnected infrastructure, implementing digital transformation, and preparing to exit from least developed country status. Cambodia aims to graduate from LDC status by 2029, with plans to enhance competitiveness and attract investment in new industries.
Read more: Khmer Times, Fibre2Fashion
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap with a less business-focused article.
Bogus gods are under the spotlight (but real ones should be okay?), the Ministry of Tourism has announced the 3rd ASEAN Public Toilet Competition, and Phare Ponleu Selpak is showing 139 paintings at its Battambang gallery. We will close out this week with this story about work to protect children from violence:
Monks Lead Child Protection Efforts
It is reported that more than half of Cambodian children experience severe violence, and Buddhist monks are playing a role in changing community attitudes. Through the so-called “Pagoda Program,” developed with UNICEF, monks are educating families about non-violence and child protection. The program has already reached 8,000 people, and there are plans to expand into regions that are also dealing with child marriage and teen pregnancy. The program is being delivered in conjunction with Cambodia’s push to pass its first child protection law, which would put a ban on corporal punishment.
Read more: ABC
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