NO.4 (FEBRUARY 20, 2019)MARKET INDUSTRY TRENDS
IN SECOND WEEK OF FEBRUARY, VIETNAM AGREED TO EXPAND ITS [ANNUAL] IMPORT QUOTA FOR CAMBODIA’S RICE TO 300,000 TONS. The agreement was announced by the meeting of the Cambodian Minister of Commerce with Vietnam high official on Asia-Africa Market Department of Vietnamese Ministry of Industry and Trade. In 2018, official data recorded 26,712 tons of rice export to Vietnam. (Phnom Penh Post).
ON JANUARY 30, 2018 A SEMINAR ON CONNECTING FDI AND SMES WAS HELD IN PHNOM PENH by the cooperation of the CDC, International Financial Corporation (World Bank) and Japanese Embassy, attended by 160 from policy makers, research institutes, local and foreign business associations, and investors in Cambodia. The seminar agenda included existing government policies, challenges & opportunities, results of need survey, good international practices, and Q&A. (Government).
GLOBAL CONNECTEDNESS INDEX (GCI). CAMBODIA MOVED UP FOUR SPORTS TO 49 IN 2018 FROM 53 IN 2015 OUT OF 169 COUNTRIES ON ITS STATUS OF THE WORLD’S MOST CONNECTED NATIONS. The move means greater cultural diversity, more choices, more opportunities to learn and develop, greater integration and opening new market opportunities, said the report. Top ten countries of Cambodia’s international flows are China (17%), Thailand (17%), Vietnam (11%), US (9%), South Korea (4%), Japan (4%), Singapore (4%), the UK (3%), Lao PDR (3%), and France (3%). Cambodia is one among four countries – Malaysia, Mozambique, Singapore and Vietnam – where the international flows most exceeded expectations. The Southeast Asian nations Cambodia, Malaysia, Singapore and Vietnam beat expectations by the widest margin, reflecting improved supply chain networks within the region and ASEAN policy initiatives promoting economic integration. Singapore also remains the world’s second most connected country, being the only Asia Pacific country to feature in the Top 10 ranking. Myanmar experienced the biggest improvement, jumping 23 spots to 133rd position. Hong Kong retains its second place behind Singapore on the depth dimension of the Index, which measures the proportion of overall physical, intellectual and human capital that crosses national borders; while Japan and South Korea continue to rank amongst the top 5 in global breadth of the same flows. (DHL Website).
KINGDOM SEES MINIMAL CHANGE IN RICE EXPORTS BETWEEN 2016-2018. The sector appears to face new challenges requiring the government and private sector to work harder to keep the industry healthy. The challenges are centered around the EU market as the bloc imposes tariffs on Cambodia’s rice, added on the existing issues such as higher production costs and a lack of infrastructure. Nevertheless, the industry insiders said the volume of this year’s rice exports will remain steady due to a new quota from China and Vietnam. (Phnom Penh Post).
ON JANUARY 11, AN INVESTOR DELEGATE FROM CHINA’S CHONG QING MET WITH THE SECRETARY GENERAL OF THE COUNCIL FOR DEVELOPMENT OF CAMBODIA (CDC) to discuss the investment opportunities on solid waste processing into energy and the construction of the urban sky train. (Government).MARKET DEALS
TEMI TOURISM PROJECT APPROVED BY THE CDC. The project is Qualified Investment Project (QIP) registered capital at the application and approval of $500.4 million, and promises 5,150 new direct jobs. The project locates in Koh Kong province.LEGAL AND REGULATIONS
ON 18 FEBRUARY 2019, A CONSULTATIVE MEETING TO COLLECT INPUTS FOR DRAFTING NEW INVESTMENT LAW, from private sector, research institutes, legal consultants, and development partners was held in Phnom Penh by the Council for Development of Cambodia. The new law aims to attract more direct investments and improve Cambodian competitiveness. However, the above mentioned process indicates that the new law adoption is still at least one to two years ahead. (Government).
DECLARATION NO. 100 OF THE MINISTRY OF ECONOMY AND FINANCE, DATED JANUARY 29, 2019 – SUSPENDING THE COLLECTION OF THE MONTHLY WITHHOLDING TAX ON REVENUE FOR ENTERPRISES AND BUSINESSES PRODUCING AND SUPPLYING AGRICULTURAL PRODUCTS FOR DOMESTIC MARKETS OR EXPORTS of products namely paddy, rice, corns, beans, peppers, cashew nuts, cassava, rubber. Application period is from January 2019 for five years. (Government).
MACRO ECONOMY AND POLICIES