NO.7 (APRIL 17, 2019)
MARKET INDUSTRY TRENDS
AGRI BUDDY AIDS THE ENTIRE PRODUCTION CHAIN. Agri buddy, a Japanese-owned start-up, is the first agricultural facilitator working with the entire production chain in the Kingdom’s agricultural sector. Launched in 2015 with $730,000 in venture capital funding, the Siem-Reap-based “agritech” company currently provides services to 20 districts comprising some 300 villages and reaches more than 50,000 farmers as Agri buddy members. (The Phnom Penh Post).
ACLEDA’S BANK ANNUAL PROFIT DIP 10 PERCENT. The decrease was against 2017 based on the audited financial report. Acleda’s profit in 2018 is $84,009,268 and it was $92,527,998. The bank’s CEO highlighted the stagnant growth in the first six months as the reason. (The Phnom Penh Post).
NBC SET TO LEAD BLOCKCHAIN USE. NBC will be one of the first central banks to use blockchain technology in its national payment systems for use by consumers and commercial banks. The expected implementation is in the second half of 2019 as the experiment in supporting financial inclusion and greater banking efficiency. (The Phnom Penh Post).
ASEAN PAYMENT CONNECTIVITY A MAJOR STEP TOWARD CUTTING TRANSACTIONS COSTS. Migrant workers, tourists and small and big businesses will be able to cut the cost of their financial transactions in Asean after regulators, bankers and non-bank operators decided to integrate and upgrade their financial services across the region. Eight Asean countries agreed on Asean Payment Connectivity during the meeting of Asean Finance Ministers and Central Bank Governors in Chiang Rai. (The Phnom Penh Post).
FOREIGN INVESTORS EYE IDLE VN BANKS. Foreign financial institutions eye up poorly-performing Vietnamese banks after being given the green light to acquire stakes in local institutions in a move to speed up the restructuring of the country’s banking industry. Mergers and acquisitions in the banking industry had remained quiet for the past two years after witnessing a record from 2011 and 2016. The Vietnamese financial market holds a lot of potentials, but license applications to establish a bank are very difficult, so purchasing shares in local banks or acquiring a 100 percent share in ailing institutions are the best options, according to a local expert. J Trust Corp expressed an interest in acquiring a stake in the Construction Bank (CB). (The Phnom Penh Post).
VN STEPS UP THE FIGHT AGAINST FAKE GOODS ONLINE. With the rate of growth of more than 30% in 2018 and the expected growth continue in 2019 and 2020 on the e-commerce market in the size to reach 13 billion, the Vietnamese relevant authority is seeking the solutions to stop fake goods appearing on e-commerce websites. (The Phnom Penh Post).
GUANGBO GROUP STOCK TO OPEN STATIONARY AND SPORTS PRODUCTS FACTORY. China-based Guangbo Stock Co Ltd plans to open a stationery and sports products factory in the Kingdom, following the meeting of the president of the company and minister of commerce of Cambodia. The group currently produces office stationery, paper, and plastic products in China, selling them domestically and overseas. On March 21, the group inaugurated a new production plant in Vietnam, its first overseas factory. (The Phnom Penh Post).
MOBILE CLOTHING MARKETPLACE ZILINGO PLANS TO EXPAND INTO THE KINGDOM. Mobile marketplace for clothing and lifestyle products Zilingo has unveiled plans to expand its business to Cambodia, among other Asian markets, after raising $226 million in a series D funding round1. The company has plans to invest capital for long-term value building across the supply chain, building a new and deeper relationship with manufacturing partners in Cambodia, Vietnam, Sri Lanka, and China, and expanding into the new markets like the Philippines, Indonesia, Australia, and the US this year. Zilingo has headquarters in Singapore. (The Phnom Penh Post).
HYDRO DAM, SOLAR POWER STATIONS APPROVED. A project on the hydroelectric dam and supplemental solar power stations with a total capacity of 220MW were approved by the government.
The hydro dam investment was granted to SPHP (Cambodia) Co Ltd investment project to build the hydro dam station along Pursat river in Veal Veng district’s Pramuoy commune. The project is Build-Operate-Transfer (BOT) with $231.10 million invested in 39-year concession term. 80MW will be launched in 2023.
On April 4, Schnei Tec Co Ltd received government approval for an investment project to build two more solar-power stations. One station will be in Pursat province with a 60MW capacity and another will be in Kampong Chhnang province with the same capacity. The project will be Build-Owned-Operate (BOO) with more than $116 million invested in a 20-year concession term. Currently, the company pumps 20MW of solar energy into the national network out of a total 60MW produced at its Kampong Speu station. The government also approved additional capacity of 20MW for the production in Kampong Speu. (The Phnom Penh Post).
NAGACORP LTD UNVEILS NAGA3. The company which is the only licensed casino in Phnom Penh announced $4 billion Naga3 Project on the site of the former “white building” in Tonle Bassac commune, a 29-page document filed with the Stock Exchange of Hong Kong Limited said. The company said the government had agreed in principle the construction of the Naga3 integrated entertainment complex in four 42-story buildings on 7,757sqm. (The Phnom Penh Post).
EDUCATION PROGRAM FOR ENTREPRENEURS TO START ITS SECOND ROUND. Private equity firm Cambodia Investor Club (CIC) will soon start the second round of its Beyond Investment Opportunity (Bio) programme, aiming to accelerate investment activity in Cambodia by educating investors and entrepreneurs. (The Phnom Penh Post).
ADB unveiled the growth forecast of the Cambodian economy of 7.0% for 2019 and 6.8% for 2020 at the launch of its Asian Economic Outlook on April 3, 2019. (ADB Press Release).