S. Korean bank to operate in Cambodia next month

S. Korean bank to operate in Cambodia next month

June 28, 2007

The first commercial bank funded by South Korean investors will begin operations in Phnom Penh next month, with unusual banking services on offer, local newspaper the Rasmei Kampuchea said on Thursday.

Camko Bank, which is in the family of Camko City, a 2 billion U. S. dollar South Korean housing project to construct a satellite city on the outskirts of Phnom Penh, will become operational late July, the report quoted a Camko City official as saying.

With capital from its parent bank in South Korea, Busan Bank, Camko Bank will provide a variety of "unprecedented" banking services such as loans, VIP services and savings, according to the official.

Different from commercial banks currently operating in Cambodia, Camko Bank will provide among other things a lending service that borrowers don't have to repay the principal, but only the interest, said the official, who declined to elaborate on the issue. According to the official, Camko Bank will play a main role in the future stock market in Cambodia.

The Korean International Cooperation Agency (KOICA) has been assisting the Cambodian government to set up a stock exchange market in Cambodia, which is expected to start in 2009.

Source: Xinhua 

Japanese Investors Eye Cambodia

Japanese Investors Eye Cambodia

Mony, VOA Khmer
Original report from Phnom Penh
22/06/2007

A delegation of Japanese investors plans to visit Cambodia, following a recent trip by Prime Minister Hun Sen to Tokyo where he signed a bilateral investment pact with Japan Prime Minister Shinzo Abe.

Japanese Ambassador Katsuhiro Shinohara said next month a delegation would arrive to study Cambodia's investment climate. If they like what they see, he said, Cambodia could reap Japanese investment for the next 30 year.

"Japanese companies usually do a lot of research before investing," Shinohara said through an interpreter. "Please be patient and wait, because after the research proves to be good, and we decide to invest, it is like a promise to invest and cooperate with Cambodia for 20, 30 years."

Japan is the country's largest donor, but falls behind China, South Korea and Malaysia when it comes to investment.
Shinohara said Japanese investment in Cambodia totaled about $22 million. Aid pledged this year alone was about $112 million.

Cambodia saw a rapid rise in foreign investment following peace accords in 1991, but businesses fled or folded in the wake of the 1997 coup. Since then, investment has risen again, with last year's nearly 11 percent economic growth rate astounding economists.


Opposition Sam Rainsy Party Secretary-General Mu Sochua welcomed a visit from the Japanese. 

"We especially applaud the Japanese investors, who are honest and law-abiding people," she said.

Thursday June 21, 02:30 PM

Vietnam Co To Grow Sugarcane In Cambodia

HANOI, June 21 Asia Pulse - The Bien Hoa Sugar Company (BSJC) has decide to cultivate 2,000 ha of sugarcane in Cambodia's Svay Rieng province to serve its future sugar refineries in southeastern Tay Ninh province.

The company has reached agreement on the project with authorities of Svay Rieng province, said BSJC Deputy General Director Tran Phuoc Anh on June 20, adding that the initiative is expected to bring a stable income to thousands of local workers.

Anh said that his company would supply capital and sugarcane cuttings, and transfer farming techniques to the farmers.

The firm is building a factory to produce sugar and sugared products in Chau Thanh district of Tay Ninh province which borders Svay Rieng.

BSJC is currently operating a sugar plant capable of processing 3,500 tonnes of sugarcanes per day in Tay Ninh province where it has developed 4,000 ha of cane crops.

(VNA)

 

Direct flight between Cambodia and Japan

Direct flight between Cambodia and Japan

Wednesday, June 20, 2007
Everyday.com.kh
Translated from Khmer by Socheata

Direct flight between Cambodia and Japan is part of the cooperation agreement between the two countries. Kim Sophorn, undersecretary of state at the State Secretariat of Civil Aviation, told The Cambodia Daily that direct flights from Phnom Penh and Siem Reap to Japan will start in the near future, and that this is part of the agreement signed in Tokyo last week between Hun Sen and Shinzo Abe, his Japanese counterpart, Kim Sophorn said Japanese Civil Aviation informed him that the two sides will coordinate to the flights together, however, Kim Sophorn said that he does not know when the direct fights will start. 

Source: http://www.ki-media.blogspot.com/

2,000 Cambodian workers in South Korea

2,000 Cambodian workers in South Korea

Tuesday, June 19, 2007
Everyday.com.kh
Translated from Khmer by Heng Soy

SRP MP Keo Remy said during an interview on 18 June that South Korea had accepted 2,000 Cambodian workers up until now. Following his recent visit to South Korea, Keo Remy said that Cambodian workers in South Korea have not met major problems based on his meeting with them. Keo Remy said that up to now, 2,000 Cambodia workers are providing their labors in South Korea. He added that South Korea is also interested in Cambodia railways system for transporting goods from rural areas to the capital, and that South Korea will participate in the repair of Cambodia’s decrepit railways system. Keo Remy said that following the visit, Nhem Vanda, the delegation leader, will send over all the issues to Prime Minister Hun Sen for his review.

Source: http://www.ki-media.blogspot.com/

 

Property firm plans $600 million IPO

 

 

LONDON — JSM Indochina Ltd, a company set up to invest in Vietnamese and Cambodian real estate, said on Tuesday it planned an initial public offering in London to raise between US$400 million and $600 million.

JSM, which is based in the Cayman Islands and focuses on the development and management of retail and serviced apartment assets, plans to sell up to 600 million shares at $1 each, targeting admission by the end of June, it said in a statement.

 

 

"JSM Indochina will give investors access to one of South East Asia’s fastest growing economies and a developing property market," Chief Executive Craig Jones said in a statement.

"We believe that Vietnamese and Cambodian real estate fundamentals now offer extremely attractive opportunities for investors."

 

 

The offering comes as real estate firms in Europe face slowing property price rises and higher interest rates.

 

Last week British hotel owner Vector Hospitality pulled a potentially record-breaking $4 billion IPO, and Spain’s Realia was forced to slash its offering price.

 

Jones, who plans to sell land in Viet Nam and Cambodia worth around $35 million to JSM in exchange for shares, shrugged off concerns of potential lukewarm investor demand for property stocks.

 

"Investor demand for access to markets in Viet Nam is quite strong... We feel very comfortable with our 400 to 600 million (dollar) raise. We think that is a result of strong investor demand globally," Jones said.

 

"There are very few international retailers there with exceptional (retail) parks... We see a number of retailers wanting to enter the market and we want to be there providing them with facilities."

 

The company, which will focus on HCM City and Ha Noi areas, is in talks with retailers such as Parkson Retail Group for letting, Jones said.

Lehman Brothers is acting as bookrunner to the issue, and Evolution Securities is acting as nominated adviser.

The company will give Lehman Brothers an over-allotment option over ordinary shares of up to a maximum of 15 percent. — REUTERS/VNS

 

---

 

 

JSM Property Plans $Us600mln IPO In Vietnam, Cambodia

Monday June 18, 01:24 PM

HANOI, June 18 Asia Pulse - JSM Indochina Ltd, a company set up to invest in Vietnamese and Cambodian real estate, said on Tuesday it planned an initial public offering in London to raise between US$400 million and $600 million.

 

JSM, which is based in the Cayman Islands and focuses on the development and management of retail and serviced apartment assets, plans to sell up to 600 million shares at $1 each, targeting admission by the end of June, it said in a statement.

 

"JSM Indochina will give investors access to one of South East Asia's fastest-growing economies and a developing property market," Chief Executive Craig Jones said in a statement.

 

"We believe that Vietnamese and Cambodian real estate fundamentals now offer extremely attractive opportunities for investors."

 

The offering comes as real estate firms in Europe face slowing property price rises and higher interest rates.

 

Last week, British hotel owner Vector Hospitality pulled a potentially record-breaking $4 billion IPO, and Spain's Realia was forced to slash its offering price.

 

Jones, who plans to sell land in Vietnam and Cambodia worth around $35 million to JSM in exchange for shares, shrugged off concerns over potential lukewarm investor demand for property stocks.

 

"Investor demand for access to markets in Vietnam is quite strong ... We feel very comfortable with our $US400 to $US600 million raise. We think that is a result of strong investor demand globally," Jones said.

 

"There are very few international retailers there with exceptional (retail) parks... We see a number of retailers wanting to enter the market and we want to be there providing them with facilities."

 

The company, which will focus on HCM City and Hanoi areas, was in talks with retailers such as Parkson Retail Group for letting, Jones said.

 

Lehman Brothers is acting as bookrunner to the issue, and Evolution Securities is acting as nominated adviser.

 

The company will give Lehman Brothers an over-allotment option over ordinary shares of up to a maximum of 15 per cent.

 

(VNA)

 

http://au.news.yahoo.com//070618/3/13rqq.html

 

Abe, Hun ink pact to attract more Japanese investment to Cambodia

TOKYO, June 14
KYODO

Japanese Prime Minister Shinzo Abe and visiting Cambodian Prime Minister Hun Sen on Thursday signed a bilateral investment pact aimed at attracting Japanese investment to the Southeast Asian country.

The pact liberalizes Japanese investment in Cambodia and states that this policy will be maintained in the future -- a move to boost Japanese investment and expand the presence of Japanese firms there, Japanese officials said.

Source: http://www.ki-media.blogspot.com/

Cambodia's Hun Sen tells Japanese he will fight graft

 

Cambodia's Prime Minister Hun Sen (L) shakes hands with Japan's Prime Minister Shinzo Abe after they exchange documents at Abe's official residence in Tokyo June 14, 2007. REUTERS/Toru Hanai (JAPAN)

by Hiroshi HiyamaThu Jun 14, 10:08 AM ET

Cambodian Prime Minister Hun Sen pledged Thursday to fight corruption to lure more investors from top donor Japan as he tries to wean his government away from foreign aid.

Hun Sen, visiting Japan for his 15th time, met with business leaders and signed a bilateral agreement with his counterpart Shinzo Abe on encouraging investment.

"By strengthening good governance, we will continue to thoroughly manage public agencies and to eradicate corruption and reduce costs for investors," Hun Sen said at the luncheon with business leaders.

"I firmly believe that Japanese investment is essential for further development of Cambodia," Hun Sen said.

Hun Sen himself has been embroiled in accusations of poor governance.

Earlier this month, London-based environmental group Global Witness -- in a report banned by the Cambodian government -- accused the political elite including Hun Sen's relatives of illegally logging the nation's forests.

Japan is the top donor to Phnom Penh, but the world's second largest economy accounts for a mere two percent of Cambodia's overall trade, according to Japanese official data.

Japan offered Thursday fresh grant aid of 295 million yen (2.4 million dollars) for a project to improve drainage and flood protection in Phnom Penh.

Donors are meeting in Cambodia next week, but many have expressed deep frustration over the lack of reform in the country including corruption.

Hun Sen has frequently praised China, which has a growing rivalry for influence with Japan, for handing over aid without any conditions.

But he said here: "Aid from Japan and China are both very important. I don't want to skip over Japan and look to China, nor the other way around."

"Japan and China are both irreplaceable important players when talking about an idea of an East Asia community," he said. "I am glad that the bilateral ties between Japan and China are increasingly more friendly."

Hun Sen said Cambodia was on a steady growth track, overcoming the regional economic crisis in the 1990s and occasional natural disasters.

Recently discovered natural resources, such as oil and natural gas, should also boost Cambodia's international standing, Hun Sen said.

"Cambodia historically had had difficulties and struggles. But we have overcome the difficulties with our strong will to develop the nation under democracy," he said.

Hun Sen voiced optimism that growth, which has surged ahead at around 9.0 percent a year since 2000, would help eliminate widespread poverty in Cambodia.

"It is my sincere hope that well thought-out social and economic development will further reduce poverty in our nation," he said.

He thanked Japan's consistent financial and other aid for his nation, adding that more assistance is needed to improve infrastructure, human resources, and business and technological know-how.

Japan pledged more than 100 million dollars at last year's donor meeting, which netted Cambodia some 600 million dollars in aid.

Hun Sen, who arrived late Wednesday and leaves Saturday, also had an audience with Emperor Akihito.

He will travel to the southern region of Fukuoka to observe a project in farm development, a top priority for Cambodia.

 

Source: AFP News

Cambodia investment pact inked

Cammodian Prime Minister Hun Sen, escorted by Prime Minister Shinzo Abe, waves during a welcoming ceremony Thursday at the Prime Minister's Official Residence in Tokyo. POOL PHOTO

Friday, June 15, 2007

By REIJI YOSHIDA

Staff writer

Prime Minister Shinzo Abe and his Phnom Penh counterpart, Hun Sen, signed a pact Thursday to promote investments by Japanese firms in Cambodia.

Under the pact, signed at the prime minister's office in Tokyo, Japanese firms will be treated equally in terms of regulation and taxation as Cambodian firms when they invest in the country.

The pact would bar Cambodian companies from requiring investing Japanese firms to transfer technology or procure products in the Southeast Asian nation, because such demands may discourage investments from Japan.

Japan is the top donor to Phnom Penh, but the world's No. 2 economy accounts for a mere 2 percent of Cambodia's overall trade, according to Japanese official data.

Donors are meeting in Cambodia next week, but many have expressed deep frustration over the lack of reform in the corruption-rife nation.

Hun Sen, who arrived on a four-day visit Wednesday, met Japanese business leaders at a luncheon and met with Abe earlier the day.

During the meeting, Abe expressed his intention to provide Cambodia with 3 billion yen in official development assistance over the next three years, even amid recent ODA cutbacks due to the government's austere fiscal policy.

Hun Sen, visiting Japan for the 15th time, welcomed the economic assistance.

In accordance with the pact inked Thursday, a business mission consisting of government and private-sector leaders will be sent in July to promote Japanese investments in Cambodia, Abe told Hun Sen during the meeting. Abe also stressed Tokyo's intention to back up a project to build a second major bridge over the Mekong River, the official said.

Information from AFP-Jiji added

Cambodia PM calls for more investment from Japan

Cambodia's Prime Minister Hun Sen (L) is welcomed by his Japanese counterpart Shinzo Abe, prior to a welcoming ceremony at the prime minister's official residence in central Tokyo June 14, 2007. REUTERS/Katsumi Kasahara/Pool

Thursday, June 14, 2007

Cambodia PM calls for more investment from Japan

TOKYO, June 14 (Reuters) - Cambodian Prime Minister Hun Sen on Thursday urged Japanese business leaders to invest more in one of the poorest Asian countries which he said could make a new start as a country build on rich natural resources.

"Development of natural gas and mineral resources provide Cambodia with great potential and this means Cambodia will make a new start as a country founded by natural resources in the international community," he told Japanese business leaders.

Japan's direct investments in Cambodia stood at $4 million for the five years from 2002.
"We will improve the environment for investments and I feel confident that investments by Japanese companies and investors will help the Cambodian economy grow stronger," Hun Sen said.

He said Japan's aid had helped Cambodia vastly improve its infrastructure in the last decade.

Japan's aid grants to Cambodia stood at $1.17 billion in the 1992-2007 period and Japan had extended yen loans totalling $137 million in the same period, Hun Sen said.

He said that the Cambodian economy had grown 13.5 percent in 2005 and 10.8 percent in 2006.

He also said Cambodia's per capita gross domestic product (GDP) had nearly doubled to $513 in 2006 from $288 in 2000, and inflation had remained below 3 percent between 2000 and 2006.

He said he would sign a bilateral investment pact with Japanese Prime Minister Shinzo Abe later in the day.

"I certainly believe that this pact will serve as a source of great confidence for those who invest in Cambodia," he said.

Japan's imports from Cambodia stood at 8.6 billion yen ($70.06 million) in 2005, while Cambodia's imports from Japan were 11.5 billion yen. ($1=122.74 Yen)

Source: http://ki-media.blogspot.com

Cambodia's Hun Sen in Japan to lure investment

 

  

Photos

1 of 1

Cambodian PM Hun Sen (C) and his Japanese counterpart Shinzo Abe

 TOKYO : Cambodian Prime Minister Hun Sen opened talks in Japan on Thursday as he tries to lure more investment to ease his country's dependence on foreign aid.Hun Sen, visiting Japan for his 15th time, walked a ceremonial red carpet as Prime Minister Shinzo Abe welcomed him at his office, with schoolchildren waving the flags of the two countries.

Tokyo has been the top donor to Phnom Penh, but Japan accounts for only two percent of Cambodia's overall trade, according to Japanese official data.

Donors are meeting in Cambodia next week, but many have expressed deep frustration over the lack of reform in the country including corruption.

Hun Sen earlier this month praised China, which has a growing rivalry for influence with Japan, for handing over aid without any conditions.

The Cambodian premier has said he would ask Japan for more investment in addition to handouts to improve infrastructure which is in tatters after decades of civil war and neglect.

"There will be a lot of discussions involving development issues, aid, investment and tourism for Cambodia," Hun Sen said during the opening of a Japanese-funded hospital in northwest Cambodia last month.

Japan pledged more than 100 million dollars at last year's donor meeting, which netted Cambodia some 600 million dollars in aid.

Hun Sen, who arrived late Wednesday and leaves Saturday, will also have an audience with Emperor Akihito and Empress Michiko and travel to the southern region of Fukuoka to observe a project in farm development, a top priority for Cambodia.

Source: http://www.channelnewsasia.com

 

 

Cambodia PM calls for more investment from Japan

TOKYO, June 14 (Reuters)

 Cambodian Prime Minister Hun Sen on Thursday urged Japanese business leaders to invest more in one of the poorest Asian countries which he said could make a new start as a country build on rich natural resources. 

"Development of natural gas and mineral resources provide Cambodia with great potential and this means Cambodia will make a new start as a country founded by natural resources in the international community," he told Japanese business leaders. 

Japan's direct investments in Cambodia stood at $4 million for the five years from 2002.

 "We will improve the environment for investments and I feel confident that investments by Japanese companies and investors will help the Cambodian economy grow stronger," Hun Sen said. 

He said Japan's aid had helped Cambodia vastly improve its infrastructure in the last decade. 

Japan's aid grants to Cambodia stood at $1.17 billion in the 1992-2007 period and Japan had extended yen loans totalling $137 million in the same period, Hun Sen said. 

He said that the Cambodian economy had grown 13.5 percent in 2005 and 10.8 percent in 2006. 

He also said Cambodia's per capita gross domestic product (GDP) had nearly doubled to $513 in 2006 from $288 in 2000, and inflation had remained below 3 percent between 2000 and 2006. 

He said he would sign a bilateral investment pact with Japanese Prime Minister Shinzo Abe later in the day.

 "I certainly believe that this pact will serve as a source of great confidence for those who invest in Cambodia," he said. 

Japan's imports from Cambodia stood at 8.6 billion yen ($70.06 million) in 2005, while Cambodia's imports from Japan were 11.5 billion yen. ($1=122.74 Yen)  

14 Jun 2007 05:16:47 GMT

Source: Reuters

Cambodia's Hun Sen in Japan to lure investment

Visiting Cambodian Prime Minister Hun Sen (C) and his Japanese counterpart Shinzo Abe (2nd L) bow to their respective national flags while reviewing an honor guard during a welcoming ceremony at Abe's official residence in Tokyo, 14 June 2007. Hun Sen is on a four-day official visit to Japan.(AFP/pOOL/Toru Yamanaka)

Wed Jun 13, 11:06 PM ET

Cambodian Prime Minister Hun Sen opened talks in Japan on Thursday as he tries to lure more investment to ease his country's dependence on foreign aid.

Hun Sen, visiting Japan for his 15th time, walked a ceremonial red carpet as Prime Minister Shinzo Abe welcomed him at his office, with schoolchildren waving the flags of the two countries.

Tokyo has been the top donor to Phnom Penh, but Japan accounts for only two percent of Cambodia's overall trade, according to Japanese official data.

Donors are meeting in Cambodia next week, but many have expressed deep frustration over the lack of reform in the country including corruption.

Hun Sen earlier this month praised China, which has a growing rivalry for influence with Japan, for handing over aid without any conditions.

The Cambodian premier has said he would ask Japan for more investment in addition to handouts to improve infrastructure which is in tatters after decades of civil war and neglect.

"There will be a lot of discussions involving development issues, aid, investment and tourism for Cambodia," Hun Sen said during the opening of a Japanese-funded hospital in northwest Cambodia last month.

Japan pledged more than 100 million dollars at last year's donor meeting, which netted Cambodia some 600 million dollars in aid.

Hun Sen, who arrived late Wednesday and leaves Saturday, will also have an audience with Emperor Akihito and Empress Michiko and travel to the southern region of Fukuoka to observe a project in farm development, a top priority for Cambodia.

Source: AFP

Cambodia's open door policy is a boon for foreign investors ... to the detriment of Cambodia's own industry

Saturday, June 02, 2007

Cambodia's open door policy is a boon for foreign investors ... to the detriment of
Cambodia's own industry

Phnom Penh holding out an open door close to home

Saturday June 02, 2007
UMESH PANDEY
Bangkok PostThai companies that have gained expertise locally and are looking to venture in neighbouring countries are being encouraged to consider
Cambodia for its low-cost labour force, various privileges and liberal foreign direct investment policy.

"We are more than happy to welcome Thai investors to our country and we offer among the freest and most investor-friendly policies," Kong Vibol, first secretary of state for the government of Cambodia, said at a briefing in
Bangkok this week.

He said the country was looking to attract companies in agricultural and agro-industries, transport, telecommunications, infrastructure, energy and electrical goods, tourism, mining, labour-intensive and export-oriented processing and manufacturing sectors.

Thai companies including the Charoen Pokphand Group, Siam Cement, Samart Corp, and the TCC Group have already made their mark in
Thailand's neighbour, with which relations at the national level have sometimes been rocky.

In 2003, the Thai embassy in
Phnom Penh and some businesses were burned by mobs reacting to anti-Cambodian statements erroneously attributed by the local press to a Thai actress. Relations have since improved and the incident was one of the factors prompting
Cambodia to improve its protection for investors.

"Let's put the past behind us and build the future. That was a political issue and we took responsibility," said Mr Kong Vibol, referring to the compensation that
Phnom Penh agreed to pay for the 2003 damages.

"Now we provide a guarantee to Thai investors in order to make them more confident."


Cambodia, he said, was among the freest countries in the region and had set itself firmly on the development path, offering a free hand to foreign investors to set up businesses. They cannot own land but can lease it for 99 years.

As well, he said,
Cambodia had no foreign-exchange controls on current-account transactions.


Cambodia's economy is among the smallest in the region but it grew by 10.8% in 2006 and 13.4% the previous year. The government expects gross domestic product (GDP) to grow by at least 9.5% this year, Mr Kong Vibol said.
Cambodia's average growth for the past five years has been 9.8%.

He said that real-sector growth, coupled with low inflation, expansion of the banking system and the overall development of the region had helped
Cambodia expand its economic base.

In addition to having a fast-growing hospitality sector,
Cambodia has become the base for low-skilled and labour-intensive industries such as garments. Its garment export industry grew by 22% in value terms year-on-year and nearly 40% in volume terms to more than $2 billion as of October 2006.

Tourism, which is one of the country's highest foreign-exchange earners, has also been surging with 1.18 million foreign arrivals or growth of nearly 20% year on year.

To support this growth, the banking system has expanded with private-sector deposits rising close to 18%, while bank lending to the private sector has increased by around 12% from a year earlier.

Cambodia, which had a per-capita GDP of just US$513 in 2006 against $454 in 2005, aims to attract more investment and has set up a "Council for the Development of Cambodia" headed by Prime Minister Hun Sen, as well as creating special economic zones.

Mr Kong Vibol described the Cambodia Special Economic Zone Board (CSEZB) as a "one-stop service provider with an open-door policy to foreign investors".

The CSEZB gives out information and applications, approves applications, takes care of customs duty and tax exemptions, issues visas and work permits, and registers companies, normally within 31 working days.

The open-door policy has helped attract investment of $12 billion from 1994 to 2006. South Korea is the biggest investor at $2.36 billion, followed by Malaysia at $1.98 billion and
China at $1.58 billion. Thai companies have invested a mere $431 million during that period.

"I therefore encourage Thai investors to participate in our growth story as not only will they reap good returns but companies can benefit from the Generalised System of Preferences privileges with some more developed nations such as Australia, as
Cambodia is still considered among the least-developed countries," Mr Kong Vibol said. 

http://ki-media.blogspot.com/2007/06/cambodias-open-door-policy-is-boon-for.

$450 million investment agreement signed [with China]

$450 million investment agreement signed [with China]

Saturday, June 2, 2007
Everyday.com.kh

Translated from Khmer by Socheata
On 30 May 2007,

the Chineseprovince of Kwangsi signed an agreement with Cambodia on a plan for 4 investments amounting to $450 million. The 4 investments include:

1. Development of new housing in Sihanoukville


2. Construction of a new oil terminal in Sihanoukville


3. Development of a potato plantation and a potato processing plant


4. Construction of 16-kilometer of BOT (Build/ Operate/ Transfer) highway linking Phnom Penh city and the
   Phnom Penh international airport.

These 4 investments become effective immediately upon signature of the agreement.

http://www.ki-media.blogspot.com/

Thai investors are urged to invest across the border ... especially in Cambodia

Saturday, June 02, 2007

Thai investors are urged to invest across the border ... especially in Cambodia

A chance well worth taking

Thai investors are urged to cross the border provided they have done their homework and have interesting products to offerSaturday June 02, 2007


UMESH PANDEY
Bangkok Post
Thailand's central location and strong economic fundamentals should give its investors the competitive advantage they need to expand their operations into more regional economies, senior government officials and bankers say. "We are centrally located. We are in the area where all the action is taking place, from increased manufacturing to being the link between the emerging global economic giants such as China and India," Deputy Industry Minister Piyabutr Cholvijarn said in a recent seminar organised by the Export Import Bank of Thailand (Exim Bank).

Thailand, he said, was witnessing a declining manufacturing production index mainly due to the increased costs, an indication that Thai companies now needed to move to other regional markets, especially Cambodia, Laos and Vietnam, to take advantage of the gradual opening of these markets."These are interesting markets we should try to look into, and I request all of us gathered here to look at opportunities that are beyond the frontiers of the Thai border," he said at the seminar held to help Thai investors familiarise themselves with prospects and regulations in neighbouring countries.

He said the timing could not be better. The US dollar value of Thai export products had been declining for three years, and the gradual decline in export growth from 20.6% in 2004 to 16.94% in 2006 was an indicator of slipping competitiveness in export markets. The global share of
Thailand's trade has declined to 1.23% in 2006 from 1.32% in 2004.

"All this is an indication that we are gradually losing our competitive edge. What we need to do is move up the value chain or look for alternative markets for investments," Mr Piyabutr said.

Citing the case of Italy, which has gradually moved its textile industry into a more value-added, innovative and design-oriented industry, he said Thailand should follow suit.

Other panelists agreed that Thai investors needed to take a bold step forward across the region, as only a handful of companies had so far taken the lead and those that did had been successful.

"The Commerce Ministry ... is also looking at ways of promoting Thais to invest in the region and the rest of the world," said Pisanu Rienmahasarn, the ministry's deputy permanent secretary.

He added that although the ministry had been pushing for Thais to invest in the neighbouring countries and other emerging Asian markets, very few investors had so far taken up the challenge. Most investors from small and medium-sized businesses, in particular, were fearful of going abroad.

Mr Pisanu, who handles China for the ministry, says fears that China will destroy Thai SMEs and that investing in
China would only burn them were something of the past, and investors who do their homework could succeed.

"Investing in China and losing your shirt is something of the past, as China is becoming a more international market," Mr Pisanu said.

The Board of Investment (BoI) also has been studying industries in Thailand that have gained the know-how and strength to operate outside the country.

"Our job is not only to help foreign investors come into
Thailand but also to look at Thai industries to move abroad," said BoI secretary-general Satit Chanjavanakul.

He added that as long as investors did their homework, had good technological processes, and products good enough to sell in the target markets at competitive prices, they should be ready to venture outside Thailand.

Citing the example of the global computer giant Dell, Mr Satit said the company, whose sales were done online, had not been successful in China due to its pricing strategy and the low level of internet penetration there.

"Investors who are willing to take the risk of investing in such markets are rewarded with very high returns as well," Mr Piyabutr said.

Narongchai Akrasanee, the chairman of the Exim Bank, said most Thais were not investing in neighbouring countries because they had not travelled abroad or studied how to do business there.

Although Cambodia was among the hottest destinations for Thai investors, especially in the hospitality sector, there was still a lot of room for expansion.

"What we would like to see is for the greater Mekong subregion to be the next epicentre for investments," he said.  http://ki-media.blogspot.com/2007/06/thai-investors-are-urged-to-invest.html

South Korean group to build $2 billion city in Cambodia in spite of land-grabbing, land-eviction, land-confiscation

South Korean group to build $2 billion city in Cambodia in spite of land-grabbing, land-eviction, land  confiscation

31-May-07
Group to build US$2b city in
CambodiaThe Brunei Times

PHNOM PENH: A group of South Korean companies said yesterday it would spend US$2 billion on building a new city in Cambodia, the biggest single investment in the impoverished country still recovering from decades of war. The residential, commercial, cultural and business complex would be built on 119 hectares on the northern edge of Phnom Penh, the group said in a statement. The group, which includes Busan Mutual Savings Bank and property development company Landmark Worldwide Co, had been wary of Cambodia because of the country's violent recent history, marketing director Lee Yunyoung said. "But actually when we came here we realised that it is really safe," he told reporters at the ground-breaking ceremony. "So we want to start our project before others start." 

Launching of the Camko City construction site

Thursday, May 31, 2007
By Nhim Sophal
Cambodge Soir
Unofficial translation from French by Luc Sâr

In order to recover the lost splendor of Phnom Penh, the government brings its support to the mammoth South-Korean “city” project located north of Phnom Penh. Vice-prime minister Sok An made this declaration yesterday during the groundbreaking inauguration of theCamko City construction site.

The groundbreaking for the construction site of the ultra-modern South-Korean city project, christened Camko City, located north of Phnom Penh, took place yesterday. $2 billion will be invested to build, from now until 2018, villas, skyscrapers, hospital, one university and several shopping centers. Sok An declared: “In the 60s, Phnom Penh was beautiful like a jade. But, after the war, it is impossible to compare Phnom Penh with other cities in the region. That is why, today, the government encourages the Camko City project which will embellish the city anew.” “I would like to live here, but I don’t know if I would have enough money,” Kep Ravy, a hardware store manager commented during the inauguration. An optimistic official from the Ministry of Economy believes thatCamko City will be accessible to one third of the population of the capital, because most of them own lands in the provinces which they can sell to buy an apartment here. 

Korean group to build US$2b Cambodia city

Thursday, May 31, 2007

Korean group to build US$2b
Cambodia city

Thursday, May 31, 2007
Reuters, BloombergA group of South Korean companies said it would spend US$2 billion (HK$15.6 billion) on building a new city in Cambodia, the biggest single investment in the impoverished country still recovering from decades of war.The residential, commercial, cultural and business complex would be built on 119 hectares on the northern edge of Phnom Penh, the group said Wednesday.The group, which includes Busan Mutual Savings Bank and property development company Landmark Worldwide, had been wary of Cambodia because of the country's violent recent history, marketing director Lee Yunyoung said.

"But actually when we came here we realized that it is really safe," he said at the ground-breaking ceremony.

"So we want to start our project before others start."

Deputy Prime Minister Sok An said the project would help attract more investors.

"Our population continues to increase sharply, so we need to expand our old city to meet the needs of the people," he said. "Foreign investors also need good infrastructure to run their businesses."

Cambodia's growth has been remarkably high in recent years. Its economy grew 10.4 percent last year, when foreign direct investment hit a record US$4 billion.

In another development, Samsung Engineering, South Korea's biggest engineering company, signed a preliminary agreement to build an ammonia plant in Saudi Arabia for US$946 million, the company's largest single contract.

The factory is for Saudi Arabian Mining and will be completed by December 2010, Samsung Engineering said. The company now expects to exceed a previous target for US$3.5 billion in orders this year.

Samsung Engineering and South Korea's other contractors are more than half way to matching a record set in 1981 for orders from the Middle East. Saudi Arabia has awarded the most contracts.

"It will only get better as a number of major projects are expected to be awarded this year in the Middle East," said Byun Sung Jin, an analyst at Mirae Asset Securities in
Seoul.

"This contract will put Samsung Engineering in a better position to win some of those orders."

Saudi Arabia - the world's largest oil producer - is the biggest single source of overseas revenue for South Korean contractors, who have received US$58.1 billion in orders in the 34 years they have been doing business in the Arab kingdom, according to the International Contractors Association of Korea.

Shares of Samsung Engineering gained 7.6 percent to a record close of 85,000 won (HK$714) in Seoul. The stock has almost doubled this year, compared with a 16 percent climb in South Korea's KOSPI index.

Saudi Arabia is expected to invest about US$76 billion until 2010 for refineries and other chemical plants, according to Samsung Engineering. The ammonia plant will have the capacity to produce 3,300 tonnes of the chemical a day, making it the largest in the country.

South Korean contractors have received a combined US$7.45 billion in new orders from the Middle East this year, with almost half of that coming from the
United Arab Emirates, the contractors' association said. 

Glitzy modern satellite city to be built near Phnom Penh and its poor slums

Saturday, June 02, 2007

Glitzy modern satellite city to be built near Phnom Penh and its poor slums

06/01/2007

“We should not have huge developments surrounded by slums, with the poorest of the poor looking up at the skyscrapers”

- Mu Sochua, SRP secretary-generalThe project is a sign of the country’s real estate boom after decades of civil war. Young people lead the residential boom as they buy new houses. Phnom Penh

(AsiaNews/Agencies) –
World City, a joint venture between South Korean and Cambodian companies, has begun building a satellite city near Phnom Penh. The US$ 2 billion urban development project will be financed by South Korea's Shinhan Bank.

The South Korean bank will provide US$ 65 million to build

Camko City's first thousand residential units, and infrastructure for the development, which is expected to take between 11 and 15 years to complete. The first phase is due for completion in two years and the latter phases will include a university, a hospital and schools.

The development is the latest outgrowth of Cambodia's building boom—one of the country's most visible signs of recovery after decades of civil war and destitution.

Bolstered by its newfound political stability and large injections of donor aid, Cambodia achieved GDP growth of 10.5 per cent last year. And new houses are being marketed to the growing numbers of young Cambodians.

“After the Khmer Rouge regime ended [in 1979], there were more children than average. Now they are 25, 26 years old, and they have families who need homes," said Hang Chuon Naron, secretary-general of the Ministry of Economy and Finance. Average price tags are US$ 120,000.Not everyone is enthusiastic about the trend. Some have voiced concern about
Cambodia's ability to manage its urban growth, particularly when 35 per cent of the population still lives below the poverty line.“

We should not have huge developments surrounded by slums, with the poorest of the poor looking up at the skyscrapers,” said Mu Sochua, secretary-general of the opposition Sam Rainsy Party. Noting Phnom Penh's “limited and inadequate housing supply,” Robert Taliercio, senior Cambodia economist for the World Bank, cited the capital's need to manage its building boom without losing its character. “[I]t would be a shame if it became just another generic-looking East Asian megalopolis,” he said. http://ki-media.blogspot.com/2007/06/glitzy-modern-satellite-city-to-be.html

Glitzy modern satellite city to be built near Phnom Penh and its poor slums

» 06/01/2007 17:56
CAMBODIA

The project is a sign of the country’s real estate boom after decades of civil war. Young people lead the residential boom as they buy new houses.Phnom Penh (AsiaNews/Agencies) –World City, a joint venture between South Korean and Cambodian companies, has begun building a satellite city near Phnom Penh. The US$ 2 billion urban development project will be financed by South Korea's Shinhan Bank.

The South Korean bank will provide US$ 65 million to build Camko City's first thousand residential units, and infrastructure for the development, which is expected to take between 11 and 15 years to complete. The first phase is due for completion in two years and the latter phases will include a university, a hospital and schoolsThe development is the latest outgrowth of Cambodia's building boom—one of the country's most visible signs of recovery after decades of civil war and destitution.Bolstered by its newfound political stability and large injections of donor aid, Cambodia achieved GDP growth of 10.5 per cent last year. And new houses are being marketed to the growing numbers of young Cambodians.“After the Khmer Rouge regime ended [in 1979], there were more children than average. Now they are 25, 26 years old, and they have families who need homes," said Hang Chuon Naron, secretary-general of the Ministry of Economy and Finance. Average price tags are US$ 120,000. Not everyone is enthusiastic about the trend. Some have voiced concern about Cambodia's ability to manage its urban growth, particularly when 35 per cent of the population still lives below the poverty line.“We should not have huge developments surrounded by slums, with the poorest of the poor looking up at the skyscrapers,” said Mu Sochua, secretary-general of the opposition Sam Rainsy Party. Noting Phnom Penh's “limited and inadequate housing supply,” Robert Taliercio, senior Cambodia economist for the World Bank, cited the capital's need to manage its building boom without losing its character. “[I]t would be a shame if it became just another generic-looking East Asian megalopolis,” he said.

http://www.asianews.it/index.php?l=en&art=9435&size=A

Investment News in Cambodia

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