Cambodia 20241230: Determined, Meticulous, Abominable
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
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Headlines:
UNDP Study Analyzes Groups Left Behind
Mekong Communities Battle Plastic Catastrophe
Japan Granted Access to Ream Naval Base
Hopes Dashed as PM Cracks Down on Dissent
Reforms Ramp Up as LDC Graduation Looms
Crypto Innovations Now Welcome
EU Trade Surge Defies Global Slowdown
War on Scammers Ongoing
Japan Funds Urban Growth with Geospatial Tech
Warning Signs in Agriculture
Food Market Stabilizes
UNDP Study Analyzes Groups Left Behind
The United Nations Development Programme (UNDP) has released a new report examining which groups in Cambodia are being excluded from the country's development progress and why. The study, commissioned as part of UNDP's Strategic Plan 2022-2025, takes an intersectional approach to understanding the circumstances that lead certain segments of the population to be left behind. By analyzing quantitative and qualitative data, the report sheds light on the gaps in reaching these groups through current development interventions. It also provides recommendations on how to better integrate overlooked communities into future development strategies and planning.
Read more: United Nations Development Programme
Mekong Communities Battle Plastic Catastrophe
From the Golden Triangle to the Mekong Delta, communities along the Mekong River are grappling with a plastic pollution crisis that threatens wildlife and livelihoods. Fishers and farmers in Thailand, Cambodia, and Vietnam are struggling to cope with the influx of plastic waste in the river and its tributaries. While efforts are being made to address the issue at local levels, the scale of the problem far outpaces current solutions. A global plastic treaty could help, but disagreements have stalled its finalization, leaving Mekong communities to battle the plastic catastrophe on their own for now.
Read more: RFA
Japan Granted Access to Ream Naval Base
Cambodia has granted Japan access to its Ream Naval Base once construction is completed, making Japan the first country besides China to be invited. The base, which is undergoing China-funded upgrades, has raised concerns from the U.S. about the potential for it to become a Chinese military outpost. Recent satellite imagery shows Chinese navy ships conducting multi-day training patrols with the Cambodian navy, likely in preparation for the planned transfer of two Chinese corvettes to Cambodia. While a U.S. Navy ship recently visited Cambodia, it had to dock at a port 20km away due to the ongoing construction at Ream. The U.S. has expressed concerns about China establishing overseas bases but is taking a "wait and see" approach to China's relationship with Cambodia.
Read more: Marine Link (Japan Access), Radio Free Asia (U.S. Concerns)
Hopes Dashed as PM Cracks Down on Dissent
Under Cambodia's new prime minister, civil liberties remain restricted as authorities continue to silence critics and opposition figures. Despite initial optimism stemming from Hun Manet's Western education, activists, journalists, and dissenting voices face ongoing crackdowns. In the latest move, a court sentenced former Nation Power Party president Sun Chanthy to two years in jail for allegedly inciting social disorder after he criticized government policies on social media. Critics argue the conviction exemplifies the government's use of the judicial system to stifle political opponents, with over 100 arrests of activists and critics this year alone.
Read more: The New York Times (Hun Manet rule), RFA (Sun Chanthy Conviction), Reuters (Crackdown), Cambodia Daily (Leadership Transition)
Reforms Ramp Up as LDC Graduation Looms
Efforts to pull in foreign investment are in full swing with the approval of 414 projects worth $6.9 billion in 2024, a 54% increase from the previous year. As the country prepares to shed its Least Developed Country status by 2029, Prime Minister Hun Manet is saying there need to be further reforms to maintain competitiveness. Recommendations include regular consultations with major partners, sector-specific assessments, monitoring mechanisms, and improved services to investors. Economists say that the benefits of international companies, including capital inflows, job creation, skill development, technology transfer, and elevated business standards.
Read more: Fibre2Fashion (Approved Projects), The Star (Reforms)
Crypto Innovations Now Welcome
The nations’s central bank is now allowing banks and other service providers to handle cryptoassets, although to do so still requires formal approval. The new rules are intended to bring cryptocurrencies into a legal framework, monitoring diverse ranges from stablecoins to securities tokens.
Read more: VietnamPlus
EU Trade Surge Defies Global Slowdown
Cambodia's exports to the EU blew past $4 billion in the first 11 months of 2024, showing a 20.45% increase year-over-year. Total trade volume reached $4.887 billion, up 15.1%. Spain emerged as the largest EU buyer at $953 million, followed by Germany, Netherlands, France, and Belgium. The country's total international trade hit $49.87 billion, with exports at $23.93 billion and imports at $25.94 billion.
Read more: EAC News
War on Scammers Ongoing
The government is doubling down on its fight against online job fraud and human trafficking, specifically highlighting the cross-border work it is doing with both Vietnam and Laos. Recent successes include rescuing 11 Malaysian and 67 Indian nationals from scam compounds. The U.S. has sanctioned LYP Group, owned by tycoon Ly Yong Phat, over alleged human trafficking links at border casinos and forced labor in online scams.
Read more: The Star (Anti-Fraud Efforts), RFA (Sanctions Impact)
Japan Funds Urban Growth with Geospatial Tech
Japan has granted Cambodia a geospatial data platform worth $7.2 million, including satellite images, 3D city planning data, and thematic maps in support of Cambodia’s priorities in land registration and urban planning. The disbursement, formalized by Cambodian Foreign Minister Prak Sokhonn and Japanese Ambassador Atsushi Ueno, is a continuation of Japan's commitment to Cambodia’s infrastructure. The platform will serve multiple ministries, improving land management, environmental conservation, and agriculture planning.
Read more: Asia News Network
Warning Signs in Agriculture
A Swedish study is showing that perhaps overenthusiastic pesticide use is threatening Cambodia's agriculture and public health. The research found 56 polar pesticides in groundwater and 43 in soil across four Mekong River provinces. The issue apparently comes from farmers' limited understanding of safety instructions on imported chemicals from neighboring countries.
Read more: ScandAsia
Food Market Stabilizes
The WFP basic food basket cost decreased 2.1% to 113,348 riels per person monthly, with urban markets showing a 6.6% decrease while rural markets increased 2.4%. Cambodia experienced below-average rainfall, but vegetation conditions remained favorable with wet-season paddy rice harvesting completed across 1.2 million hectares. Good news on this front, across the board, thankfully.
Read more: ReliefWeb
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