Cambodia, Laos See Surge in Korean Investments

Cambodia and Laos are emerging as the next window of opportunity for Korean investors.

Figures by the Korea International Trade Association show a steep on-year growth of US$1.3 billion in Korea's corporate investment in Cambodia last year. That makes the Southeast Asian country the second-biggest destination after China in terms of Korea's overseas investment.

Investments to Laos, meanwhile, posted a 16-fold jump in 2006 from the year before and chalked up $81 million in 2007.

Analysts say such expansion in investment has helped Korean exports to the two countries post significant growth, especially for auto parts, textiles and steel.

Arirang News

Source: http://english.chosun.com/w21data/html/news/200806/200806250006.html

China to build $540m hydro plant in Cambodia -media

BEIJING, June 21 (Reuters) - A Chinese company will build a $540 million hydropower plant in Cambodia's Koh Kong province to help ease a power shortage in the poor southeast Asian nation, China's Xinhua news agency said on Saturday.

The Stung Tatay project, to be built by China National Heavy Machinery Corporation, will take five years to complete. The company will operate the plant for 37 years and sell the power to the government, the report said.

After that, ownership of the plant will be transferred to the Cambodian government, it added.

China and Cambodia have close ties, and Beijing was a keen supporter of the brutal Khmer Rouge regime that was toppled by invading Vietnamese troops in 1979. (Reporting by Ben Blanchard; Editing by Clarence Fernandez)

Source:http://uk.reuters.com/article/oilRpt/idUKPEK21739420080621

Chinese companies to build hydro-power plants for Cambodia

PHNOM PENH, June 21 (Xinhua) -- The China National Heavy Machinery Corporation (CNHMC) has signed BOT agreements with the Cambodian government to build the Stung Tatay hydro-power plant in Koh Kong province, according to the Chinese Embassy here Saturday.

CNHMC will construct the project of 246 megawatts in five years at 540 million U.S. dollars, according to the agreements signed here Friday.

After the construction is completed, CNHMC can still operate the plant on the Tatay River for 37 years to generate electricity and sell it to the Cambodian government. When the BOT period terminates, the plant will be transferred to Cambodia.

The Cambodian government approved the project on June 13 in order to obtain more electricity, help maintain appropriate power price and promote economic growth and development of the country.

On the same day, the Cambodian government also gave green light for China's Michelle Corporation to build the Stung Russey Chrum Krom hydro-power plant of 338 megawatts in the same province at 495.7 million U.S. dollars.

Both projects will also harmonize with the people's living conditions there and the overall development of those areas, according to a government statement.

Cambodia has been in extreme shortage of power. Electricity even sells one U.S. dollar per kwh in some rural areas.

The government has been pursuing a strategy to develop hydro-power projects along the Mekong River to meet the desperate demand for electricity.

Source: http://news.xinhuanet.com/english/2008-06/21/content_8411431.htm

Ambassador expects more S Korean investment to Cambodia

South Korean ambassador to Cambodia Shin Hyun-suk has said that he expected more investment from his country to the kingdom, local media reported Thursday.

"I am optimistic about further (South) Korean investment (to Cambodia)," Shin Hyun-suk told the Mekong Times in an interview.

In 2007, Cambodia became the 6th biggest host of South Korean investment after China, the U.S., China's Hong Kong region, Vietnam and Malaysia, he said.

"Recently, some South Korean investors who had invested in China and Vietnam have been moving into Cambodia. With this trend, South Korean investment in Cambodia has been diversified," he added.

Initially, South Korean investment was concentrated on the garment manufacturing sector, he said, adding that banking, agro-industry, manufacturing, real estate development and IT sectors are the dominating fields of South Korean investment in Cambodia now.

Beginning in the late 1990s, South Korean investors began to look at Cambodia as the country regained political and social stability, Shin Hyun-suk said.

In particular, South Korean investment in Cambodia has increased sharply since 2006, as Cambodia recorded high economic growth and achieved further political and social stability, he added.

Source:Xinhua

Cambodia: Construction of Cambodia's Tallest Building Commences

PHNOM PENH, CAMBODIA: Construction of a building that will be Cambodia's tallest structure _ 52 stories _ began Wednesday (18 June), the project's developer said.

The International Finance Complex, worth about US$1 billion, will dramatically change Phnom Penh's skyline _ where the tallest building now is a 15-story hotel _ when construction is completed by 2012.

Covering an area of 737,000 square feet (68,461 square meters), the complex is to house serviced apartments, a convention center and an international school upon its completion, according to a statement by its South Korean developer, GS Engineering and Construction.

South Korean companies have become the leading investors in Cambodia following the resumption of diplomatic ties between the two countries in 1997. Investment and tourist arrivals from South Korea surged following a 2006 visit to Cambodia by former President Roh Moo-hyun.

Cambodian Deputy Prime Minister Sok An said at the ceremony to start the structure's construction that not only will it be the country's tallest building, but it is "also a symbol of economic development in Cambodia."

Sok An said the project is expected to provide hundreds of jobs to Cambodians.

In March, South Korean company Yon Woo Inc., started building 42-story luxury condominium twin towers worth about US$250 million in central Phnom Penh.

World City Co., of South Korea, is investing US$2 billion to build a "satellite" urban complex called Camko City on a 300-acre (121-hectare) area on the northwestern outskirts of Phnom Penh.

The project, the single biggest foreign direct investment in Cambodia to date, is to include residential, commercial and public facilities, including villas, condominiums, trade and financial centers, office buildings, shopping centers, hotels, schools and hospitals. (AP)

MySinchew 2008.06.19

French company to invest $250 million for resort development in Ream

Friday, June 13, 2008
Everyday.com.kh
Translated from Khmer by Socheata

The Ream Resort French company plan to invest $250 million in the Ream area in Sihanoukville. The investment plan was presented by Alain Dupuis, president of the Ream Resort, to Hun Sen during a meeting on 12 June in (Hun Sen’s fortress in) Takhmao. Alain Dupuis told Hun Sen that his company will build the resort in Ream, at a cost of $250 million, and it will include a 5-star hotel, a town, lodging, golf course, beaches, and watercrafts, etc… Alain Dupuis said that this plan will start in the next dry season, and the project will be completed in 2010. Hun Sen welcomed the development plan and he asked the company to work with the Council for Development of Cambodia (CDC) for this investment to become successful.

Source: KI-Media

South Korean investor to build 52-story skyscraper in Phnom Penh

PHNOM PENH, Jun 12, 2008 (Xinhua) -- South Korean investors will hold ground-breaking ceremony here next week for its 52-story skyscraper, the tallest building currently designed for Cambodia, said English-Khmer language newspaper the Mekong Times Friday.

GS Engineering and Construction, the largest real estate developer in South Korea, will take four years to complete the project near the Tonle Bassac River, the paper quoted Mu Hion Woo, its chief of business division in Cambodia, as saying.

The project will include a 52-story office block, a 32-story residential block, an international school and a shopping mall, he said.

"Which country has the most experience in developing satellite cities? The answer is South Korea. There are probably four or five such cities near Seoul," he told the paper.

"But for us, it is business on one hand and a contribution to the development of Cambodia on the other. If you want to see the potential of Cambodia, you can see it in this project," he added.

Currently, a second South Korean real estate developer is constructing a 42-story skyscraper of comprehensive functions in downtown Phnom Penh and a third one developing a satellite city in the suburb.

When all South Korean projects were accomplished, the skyline of the capital would be totally renewed, as it is now dominated by buildings only four- or five-storey high.

Source: (Xinhua)

French company to invest $250 mln to develop resort in Cambodia

A French-financed company will invest $250 million to develop the Ream area in Cambodia’s port city of Sihanoukville into a resort, according to Ieng Sophallet, assistant to Prime Minister Hun Sen, Friday.

Alain Dupuis, French citizen and director of the Ream Resort Development Company, met with Hun Sen Thursday to find support from the government for his project, he added. Khmer-language newspaper the Rsamei Kampuchea Friday quoted Alain as telling the premier that his company will construct five-star hotels, other accommodation facilities, golf course, leisure places along the beach and motor-boat sporting project for tourists in the Ream region.

The premier welcomed the investment and requested the company to work with the Council for Development of Cambodia to achieve success, it added. Construction of the project will start in late 2008 and be finished in 2010. Sihanoukville is Cambodia’s major sight-seeing destination. Sandy beach and clean sea used to attract tens of thousands of travelers annually.

Source: http://www.bbj.hu/main/news_40560_french+company+to+invest+%2524250+mln+to+develop+resort+in+cambodia.html