Weekly news round up 2016/ Week 4

Political (Cambodia-Specific)

Access to information law site goes online 28-01-16
http://www.phnompenhpost.com/national/access-information-law-site-goes-online

The Ministry of Information has launched a website featuring drafts of the upcoming public information law and providing opportunity for the public to comment on its articles. The law was first proposed over ten years ago and is expected to be completed by 2018. The website can be accessed at www.a2i.info.gov.kh .

The drafting process is being supported by UNESCO and the Swedish government. A UNESCO official commented that “An ideal access to information legislation in Cambodia will promote maximum disclosure and open government; have limited scope for exceptions; and protect whistle-blowers”.

Europe, European Business, EuroCham Members

Private equity fund invests in Park Cafe chain 29-01-16
http://www.phnompenhpost.com/business/private-equity-fund-invests-park-cafe-chain

Emerging Markets Investments, sister company of EuroCham member Emerging Markets Consulting, has acquired a minority stake in local food and beverage company Park Café which operates seven food outlets in Phnom Penh. EMI manages Cambodia-Laos Development Fund (CLDF) and has invested upwards of $1 million to support the brand’s local expansion. The company intends to add four more branches this year, and aims to have 34 nationwide by 2020.

Kuy Vat, chairman of VTrust Property Group, the parent company of Park Cafe, has expressed interest in listing the group on the Cambodian stock exchange, a move that would give CLDF an exit option.

GIZ pumps euros into workplace inspections 29-01-16
http://www.phnompenhpost.com/national/giz-pumps-euros-workplace-inspections

GIZ, the German state aid agency, have committed 1.3m USD to a new program focused on enhancing Cambodia’s labour inspections system for the garment sector. The program’s coordinator commented that sustainable production, fair wages and good working conditions were becoming increasingly important to the European market.

Chea Serey, director-general of the National Bank of Cambodia, confirmed that BRED had in principle been given a green light to invest in the Kingdom and hoped it would contribute to the development of the financial services sector: “The presence of a European bank here will further improve Cambodia’s trade relations with the EU. And we hope to see knowledge transfer from a renowned bank like BRED to the Cambodian banking sector”.

Infrastructure, Development and Core Industries

First solar power investment granted to GPP 23-01-16
http://www.phnompenhpost.com/post-weekend/first-solar-power-investment-granted-gpp

Thai company Global Purify Power Co., Ltd is being described as the first company to be given registration in Cambodia to invest in solar power. GPP are planning a $400m investment to produce 225 megawatts or more of solar power to be distributed to businesses and factories in Kampong Speu, Kampong Chhnang, and Takeo.

Kratie Sees Surge in Visitors as Tourists Rush Northeast 25-01-16
http://www.khmertimeskh.com/news/20534/kratie-sees-surge-in-visitors-as-tourists-rush-northeast/

Domestic tourism in Cambodia’s northeastern provinces increased considerably in 2015.

Kratie province saw an 80% year-on-year increase to over 450,000 tourists including 24,000 foreigners with the River Festival in March proving popular. Amongst foreigners it was French nationals that were most numerous.
Ratanakkiri drew only modest growth of 2.4% to 179,000 tourists including 22.5k foreigners.
Mondulkiri grew by 18.9% to 137,000 tourists of which 7,000 were foreigners.

Firms urged to take rail route 26-01-15
http://www.phnompenhpost.com/business/firms-urged-take-rail-route

Speaking at the annual forum of the Cambodia Rice Federation, Prime Minister Hun Sen has urged logistics companies transporting heavy goods to switch from container truck shipping to rail shipments.

According to Sam Oeun Tith, commercial manager of Royal Railway, the company holding the 30-year concession to operate the country’s railways, freight trains run daily between Phnom Penh and Sihanoukville carrying oil, coal, building materials, garments and rice. Shipping a standard 20-foot container by rail from the capital to Sihanoukville costs about $100, and about $120 for a 40-foot container. Trucks, by comparison, cover the same route for about $200 per container.

However, some companies are unconvinced of the benefits of this route and point out how the terminus in Sihanoukville was built just short of the seaport, requiring firms to unload their cargo from train cars onto hired trucks to transport it the last several hundred metres to container ships in the port. Thus whilst the base cost of transporting goods may be lower by rail, these savings can be considered lost once the time and expense of loading and unloading is factored in.

Tourism plan looks to China 27-01-16
http://www.phnompenhpost.com/business/tourism-plan-looks-china

Cambodia’s Tourism Ministry has released a white paper named ‘China Ready for Cambodia Tourism’ aimed at capitalizing on the rapid growth in Chinese inbound tourism, with the aim of drawing and catering to roughly 2 million Chinese tourists per year by 2020.

The white paper lists steps to be taken by tourism authorities to facilitate visits by Chinese tourists, such as providing Chinese signage and documents for visa processing, encouraging local use of the Chinese yuan currency, and ensuring that food and accommodation facilities are suited to Chinese tastes.

It points out that the Chinese tend to be high-end tourists. They prefer to stay in four- and five-star hotels, are less price-sensitive than other foreign visitors, and like to shop for expensive brands.

Rubber Export Volumes Rise, Value Falls 28-01-16
https://www.cambodiadaily.com/news/rubber-export-volumes-rise-value-falls-106666/

Cambodia’s total rubber export volume for 2015 reached 124,614 tons, a 24.4% increase. However, the average price per ton of Cambodia’s rubber dropped 21.6 percent to $1,207 which impacted upon the profitability of local rubber companies.

Thematic pieces

Vietnam congress ‘not likely to affect Cambodia ties’ 25-01-16
http://www.phnompenhpost.com/national/vietnam-congress-not-likely-affect-cambodia-ties

International relations experts do not expect this week’s leadership congress in Vietnam to have much impact on relations with Cambodia – regardless of the outcome, Vietnam is expected to continue to follow “a policy of balanced proximity” towards regional powers and to seek to ensure that Cambodian relations with China do not become too close. Whilst China is Cambodia’s largest aid donor and biggest foreign investor, the close relationship between the Cambodian military and Hanoi ensures that Vietnam will retain some influence.