Business and Tech News Brief in Cambodia on 15 June 2021

Here are the compilation of the news brief about business and technology in Cambodia from various news outlets, published on 15 June 2021. You can stay informed with me by following our Facebook page or Telegram channel.

List of Important News Brief on Business and Technology in Cambodia 15 June 2021

1. Return of Foreign Direct Investment to pre-pandemic levels seen as key to economic growth

Cambodia reported its highest ever foreign direct investment (FDI in 2019, valued at $3.7 billion, according to the 2020 World Investment Report by UNCTAD, even though FDI fell in Asia by 27 percent to $9 billion in 2019.Its main investors were China, accounted for 43% of FDI in the Kingdom, South Korea contributed 11% , Vietnam at 7% and Japan and Singapore, tied at 6% each.While Covid-19 has had an overall negative effect on global foreign direct investment (FDI), Cambodia appears to be prepared to withstand this deficit as international companies look to diversify their investments in the Kingdom. Source: KhmerTimes (PDF), UNCTAD

2. Cambodian mangoes prove to be hot item in China

The first shipment of Cambodian mangoes to arrive in China late last month proved to be a major hit. Four of the six shipping containers delivered to Hebei province’s Xinfadi Wholesale Market sold out immediately.Mangoes and bananas are currently the only Cambodian fruits cleared for export to China, with Cambodian bananas making up around 30 percent of China’s total banana imports.According to the Ministry of Agriculture, Forestry and Fisheries, Cambodia exported a total of 156,724 tonnes of fresh mangoes to international markets in the first five months of 2021. This represented a 255 percent increase from the same period last year. Besides China, Cambodia sent shipments of mangoes to Vietnam, Korea, Singapore and Kuwait. Source: KhmerTimes (PDF)

3. Bilateral trade with South Korea tops $300M

Bilateral trade volume between Cambodia and South Korea topped more than $302 million from January to May this year, an increase of 2.66% year-on-year according to the Ministry of Commerce.Cambodia exports to South Korea included clothing, electronics, beverages, travel bags, rubber, medicine and cardboard.Imports from South Korea included textiles, trucks, beverages, electronics, machinery, home décor products, medicines, soaps and plastic products.The ministry said Cambodia exported more than $75 million to South Korea while Cambodia imported more than $226 million worth of goods. Sources: KhmerTimes (PDF),

4. GMAC welcomes nearly $15M of investment in garment sector

The Garment Manufacturers Association in Cambodia (GMAC) is welcoming three large investments to the sector after the Council for the Development of Cambodia (CDC) approved a trio of new garment projects yesterday.

A total of $14.9 million is earmarked for the projects collectively.  They are anticipated to generate some 3,200 new jobs. Sources: KhmerTimes (PDF), PPPost (PDF)

  • J.A.K Garment Co Ltd is to build a facility in Takhmao district, Kandal province with a capital investment of $2.4 million. The factory will employ 1,053 people.
  • Premier Tech Garment (Cambodia) Co Ltd is to build a $4.3 million in Bati district with an investment of $4.3 million. The project is anticipated to create 748 new jobs.
  • Chanco Textiles (Cambodia) Co Ltd is to build a factory in the capital’s Russey Keo district. A total of 424 new jobs will be generated to create bed sheets, pillowcases and other linens.

5. Cambodia’s insurance sector growth continues through Q1, 2021

The Cambodian insurance sector continued its positive momentum through the first quarter of 2021 with a growth rate at 16.3%. That rate of growth was down somewhat from 20.8 in Q1, 2020.Total insurance premiums for Q12021 were $85 million according to a report from the Insurance Association of Cambodia (IAC) that was issued on Monday. The IAC report cited that the general insurance and life insurance categories continued to see growth but expansion in the micro-insurance category actually reversed, with a loss in total revenue from the same time period last year.Cambodia currently has 16 general insurance companies, 11 life insurance companies and five micro-insurance companies. Sources: KhmerTimes (PDF)

6. Cambodia tops ASEAN in social security spending

Moody’s placed Cambodia in “Group 2” (the second best) out of five tiers ranking social safety nets in frontier markets. The Kingdom shared the distinction with Chile, Bosnia and Mauritius.Spending only 1.4 percent of its gross domestic product (GDP) on a social safety net, Cambodia outranks ASEAN contemporaries in its relief to financially vulnerable people during the pandemic but continues to lag globally, Moody’s Investor Service reported yesterday. Source: KhmerTimes (PDF), Moody’s Periodic Review of Cambodia Rating.

7. Grab postpones Nasdaq IPO as it eyes Q4 as target date

Grab Holdings Inc – the ride-hailing giant that managed to take out Uber Technologies Inc in its pursuit of the dominance in Southeast Asia – postponed its initial public offering on the Nasdaq last week after it agreed to a reverse acquisition with Altimeter Growth Corp (AGC) at a valuation of approximately $40 billion.However, the company expects that it will be available for trading by the end of the year. Source: KhmerTimes (PDF)

==#==

Leave a Comment