Cambodia 20250217
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Nokia-Cellcard Partnership Improves Broadband
Export Strategy Demands Diversification
Mining Sector Yields Record Returns
AirAsia Cambodia Expands Regional Routes
Japan Funds Development Projects
Philippines-Cambodia Sign Tax Agreement
Interior Minister Voids Illegal Loans
Trade Volume Exceeds $5B in January
World Bank Strengthens Civil Service
Vanilla Farming Takes Root
Universities Partner for Financial Access
Railway Infrastructure Expands
Waterway Transportation Framework Advances
Construction Sector Shows Modest Recovery
High-Stakes Honey Investigation
Nokia-Cellcard Partnership Improves Broadband
Nokia and Cellcard are working on an upgrade to Cambodia's residential fiber broadband infrastructure, transitioning from GPON to XGS-PON technology. The project will make speeds up to 10Gb/s possible through Nokia's Lightspan and Altiplano solutions. The implementation includes deploying Optical Line Terminals and the Altiplano Access Controller across several major cities, with a built-in capability for future 25G PON upgrades.
Read more: SDX Central
Export Strategy Demands Diversification
Cambodia remains under pressure to diversify beyond garments, footwear, and travel goods, products which dominate exports with 60% going to US and EU markets. Historical export growth of 16% will require expansion into new sectors including agriculture, manufacturing, and the digital economy. Priority recommendations include taking another look abroad towards markets in India, Turkey, Brazil, and South Africa, and figuring out how to develop value-added agricultural processing, as well as supporting a further expansion into electronics and automotive parts manufacturing.
Read more: Khmer Times
Mining Sector Yields Record Returns
Renaissance Minerals' Okvau Gold Project has produced nearly 14,000 kilograms of refined gold, generating hefty mineral fees for the public purse. The operation employs 690 Cambodians, 90% of its workforce. Monthly extraction capacity has reached a high of 400 kilograms, and the mine has plans to produce more than 3 tonnes annually over 8 years. The company has secured a 3-year exploration permit for 107 sq km in Memot district.
Read more: Khmer Times
AirAsia Cambodia Expands Regional Routes
AirAsia Cambodia is expanding its network to improve regional connectivity, providing more than 10,000 weekly visitor seats across routes connecting Phnom Penh to Siem Reap, Kuala Lumpur, Singapore, Ho Chi Minh City, and Hanoi. The airline's recent Phnom Penh-Hanoi route launch adds 1,000 weekly seats. Operations began May 2024 as the result of a joint venture between AirAsia Aviation Group and Sivilai Asia.
Read more: Khmer Times
Japan Funds Development Projects
Japan has set aside more than $200,000 for two development initiatives through KUSANONE Grassroots Human Security Projects. The funding provides $63,470 for manufacturing equipment upgrades at the Orthopedic Component Factory in Phnom Penh and $141,250 for pier construction in Koh Rong commune. Since 1991, KUSANONE has contributed over $70 million over a whopping 694 projects.
Read more: Khmer Times
Philippines-Cambodia Sign Tax Agreement
A bilateral double taxation agreement between the Philippines and Cambodia is a good step forward in economic relations. The agreement, finalized after three rounds of negotiation, eliminates double taxation on income and will help to reduce tax evasion. The pact aligns with ASEAN Forum on Taxation commitments and is in support of strengthened tax system integrity.
Read more: The Star
Interior Minister Voids Illegal Loans
Interior Minister Sar Sokha has said that citizens are not obligated to repay illegal online loans, particularly from foreign entities. The directive distinguishes between licensed microfinance lending and personal loans, emphasizing legal financial regulations. The announcement is in alignment with National Bank of Cambodia actions prohibiting online loans requiring personal identification.
Read more: The Star
Trade Volume Exceeds $5B in January
International trade reached $5 billion in January 2025, marking a 24.6% increase year-on-year. Exports totaled $2.3 billion, rising 17.3%, while imports hit $2.7 billion, up 31.6%. China leads trading partners with $1.5 billion total trade, including $100 million exports and $1.4 billion imports. The United States ranks second with $900 million trade volume.
Read more: Khmer Times
World Bank Strengthens Civil Service
The Ministry of Civil Service and World Bank enhance cooperation through discussions in Phnom Penh. Deputy Prime Minister Hun Many met with World Bank Regional Director Lalita M. Moorty to advance collaboration in civil service development, focusing on public administration reform and technical assistance programs.
Read more: Khmer Times
Vanilla Farming Takes Root
Farm Ling establishes successful vanilla plantation in Kampot's Teuk Chhou district, spanning over 1 hectare with 600-700 Vanilla tahitensis vines. Production reaches 15-20 kilograms annually, commanding over $1,000 per kilogram. The 7-12 month cultivation process presents agro-tourism opportunities.
Read more: Khmer Times
Universities Partner for Financial Access
Phillip Bank and the University of Technology and Entrepreneurship form strategic partnership improving student access to education and financial services. The collaboration provides education loans, simplified tuition payment systems, and financial education programs. The initiative includes career development workshops and industry engagement opportunities.
Read more: Cambodia Investment Review
Railway Infrastructure Expands
Transport Ministry and Royal Railway sign public-private partnership agreement modernizing rail infrastructure. Freight transport volumes increased 8.29% to 1.16 million tonnes in 2024, while passenger numbers declined 16.98% to 104,100. Royal Railway invests in new locomotives to strengthen domestic and regional transport capabilities.
Read more: The Star
Waterway Transportation Framework Advances
The government develops comprehensive framework for river port business development under Economy and Finance Minister Aun Pornmonirath. The initiative aligns with Water Transport Law and logistics master plan 2023-2033. Focus areas include strategic port designation, legal frameworks, investment prioritization, and infrastructure development.
Read more: Construction Property
Construction Sector Shows Modest Recovery
Construction and real estate sectors project growth of 2.5% and 2.6% respectively in 2025, against overall economic growth of 6.3%. Growth stems from residential projects, emerging industrial construction, and low to medium-priced property transactions. Recovery remains subdued compared to pre-pandemic levels.
Read more: Construction Property
High-Stakes Honey Investigation
Authorities seize 20 tonnes of suspect honey from Chan Honey Import Export in Phnom Penh. The Economic Crime Police Department's investigation focuses on potential misrepresentation of the honey's origin by the Vietnamese-owned company. The action demonstrates Cambodia's commitment to protecting business reputation and investor confidence.
Read more: The Star
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