Price rises slow again, according to CPI data

CAMBODIA’S inflation showed further signs of slowing in September, official figures showed Wednesday, as Consumer Price Index (CPI) inflation grew just 0.5 percent month-on-month, the lowest rate since February.

The figures from the National Institute of Statistics (NIS) showed a 2.3 percent overall reduction in CPI last month compared to September last year, which represented less-severe deflation year-on-year than in August due to the high level of inflation recorded in July and August 2008.

The September rise in prices on the previous months was mainly due to increases in the cost of seafood and vegetables, the NIS said in its CPI report. Restaurants increased in price by 0.7 percent last month, it added. San Sy Than, director general of the statistics office, was unavailable for comment Wednesday.

Car sales bottom out in Q3

Dealers in the capital say new-vehicle sales stabilised from June to September compared to the second quarter, but that overall 2009 has been a tough year

DEALERS of new cars in Phnom Penh, including Toyota and Ford, said Wednesday that there were signs the market had bottomed out in the third quarter after what has been a hard year for the industry – with sales decline of about 50 percent compared to the first three quarters of last year.

Kong Nuon, president of TTHK Co Ltd, which imports vehicles built by Toyota, the largest manufacturer in the world by sales, said he sold about 150 new vehicles during the third quarter, about the same as the previous three months.

“We did not yet see a recovery in auto sales in the third quarter … over the second quarter, but it’s stable: It did not drop further,” he said, adding that sales had dropped by about half compared to the first ninth months of 2008.

He added that TTHK expected to sell between 550 and 600 new Toyotas in 2009, blaming the economic crisis for what is shaping up to be a huge decline in sales on last year.

New Kazakh cable TV service barred by govt from launch

DTV Star told it cannot run new broadband cable television service in capital with disclosure that PPCTV has been granted exclusive government licence.

THE Ministry of Information has barred new broadband service provider DTV Star from launching a cable television service over its fibre-optic network in a dispute that goes all the way up to Prime Minister Hun Sen, the Post has learned.

San Putheary, director of the ministry’s Broadcasting Department, said Wednesday that Phnom Penh Cable Television (PPCTV) had an exclusive license to provide Internet protocol television (IPTV) via fibre to the home (FTTH) technology in Phnom Penh, thereby excluding new entrant DTV Star.

“The market in Cambodia is too small” to support other providers, he said when asked why the ministry had granted the monopoly licence.
He refused to answer further questions, referring the issue to PPCTV.

TNT in fast lane despite slowdown

TNT Express Worldwide (Cambodia) Country General Manager Sjaak de Klein talks about the impact of the economic slowdown on the transport sector and TNT’s prospects for growth

The So Nguon Group has reported a 40 percent decline in freight volumes over the first nine months of the year. How is TNT doing?

We are lucky in that we have a diverse portfolio of customers, including mining, oil and telecoms. We also have imports by land and air as well as exports, while So Nguon obviously had a strong focus on connecting with the export shipping lane in Sihanoukville. Our Asia Road Network, which we extended into Cambodia this year, is also really starting to see some success because the crisis is encouraging people to look for a cheaper option than air freight. And it’s much faster than moving goods by sea from Bangkok through Sihanoukville, which can take up to 15 days. We drive overnight, so there is a tremendous opportunity for customers to get their goods shipped quickly. The garment slowdown has affected us because we import accessories and fabrics and export documents and garment samples, but we have not been as adversely affected as the freight forwarders that focus on exports of ready-made garments to the US.

Rubber prices rise on back of more demand

CAMBODIA’s rubber price, which fell sharply at the beginning of the year, is now rebounding with producers and analysts predicting stronger growth for the sector.

Cambodia’s Directorate of Rubber Plantation said on Wednesday that prices climbed 37.4 percent in October from the beginning of the year, when rubber had fallen to a low of just US$1,419 per tonne.

Ly Phalla, director general of the General Department of Rubber Plantation, said Wednesday that rubber prices will likely continue to rise as global demand begins to recover.

“We do not know the cause of the increase in rubber prices, but I presume it may be because of a recovery in the US economy resulting in an increase in demand,” he said.

Rubber climbed to the highest price in three weeks on international markets Thursday, with futures up 2.1 percent on the back of record gold prices, Bloomberg reported.

March-delivery rubber climbed as high as 212.6 yen per kilogram ($2,408 a tonne) on the Tokyo Commodity Exchange before closing at 211.6 yen.

Jatropha oil refinery ready to go

Japan-Cambodia joint venture to start production after ministry approval

NCT Jacam Energy Co is set to begin producing jatropha oil this month once approval from the Ministry of Industry, Mines and Energy is received, according to company President Chheuy Sophors.

The Japan-Cambodia joint venture plans to produce 100 litres of the oil, which can be converted into biodiesel, daily when the plant opens. It will raise capacity to 5,000 litres a day within a year, he said.

The company planned to present documents to the ministry Thursday, having already received permission from the Ministry of Commerce.

Permission appeared to be a formality, with ministry Secretary of State Sath Samy telling the Post Thursday that he welcomed all entrants to the sector. “I haven’t seen the permission letter yet, but I will support them if they can produce jatrapha oil in our country and reduce our need to import oil from outside,” he said.

Forex reserves up to $2.52bn

Prime Minister Hun Sen says National Bank of Cambodia, which celebrated 30 years in operation Thursday, has weathered the global financial crisis

PRIME Minister Hun Sen said Thursday that Cambodia continued to increase its foreign exchange reserves to the end of August reaching a near-record high of US$2.522 billion, while beating analysts’ forecasts of a sharp drop for 2009.

Speaking at the 30th anniversary ceremony for the National Bank of Cambodia (NBC), which was re-established after the end of the Khmer Rouge regime, Hun Sen said forex reserves had climbed 21.48 percent so far this year.

“Despite Cambodia suffering from the global financial crisis, we have still been able to ensure international reserves,” the prime minister said during the event at Chaktomuk Theatre in Phnom Penh.

International Monetary Fund (IMF) data shows that reserves reached a record high of $2.594 billion in May after climbing steadily at the beginning of the year from $2.076 billion at the end of 2008, a figure quoted by Hun Sen Thursday.

Lenovo officially launches in Cambodia

THE world’s fourth-largest computer manufacturer, China’s Lenovo Group Ltd, officially launched its personal computers in the Kingdom on Thursday, announcing partnerships with two local resellers for its Think and Idea range.

The firm, which took over IBM’s personal computer division in 2005, will retail its desktops and laptops in Cambodia through Anana Computer Co and PTC Computer Technologies, Howie Sin, general manager of Lenovo ASEAN, said at the launch. The companies would offer Lenovo customers sales and support, he added.

“We strongly believe in partnering with local business because they understand the local market, so we can grow that market,” Sin said.
Commenting on Lenovo’s unusual strategy of starting out in the Kingdom with two partners, Sreang Tito of Anana said: “We’re going to compete in the areas of capacity and service.”

Ministry passes prakas on telecom connections

Edict marks first step taken by MPTC to introduce legislation following sector disagreement between Mobitel and Beeline.

THE government signed into force a new prakas, or edict, regulating interconnectivity between mobile phone operators Monday as part of efforts to resolve a dispute over alleged call-blocking between market leader Mobitel and new entrant Beeline.

Ministry of Posts and Telecommunications Director General Mao Chakrya said the prakas replaced interconnection regulations dating from 2003 that had grown obsolete in the face of intensifying competition in the sector as new players entered the market.

The ministry was also preparing a second prakas on industry tariffs in response to accusations against Beeline of unfair competition and price dumping, but its timing would depend on consultations with the sector over the issue, Mao Chakrya said.

South Korean President to Visit Cambodia Soon

The president of South Korea will visit Cambodia October 22-23 to strengthen the bilateral cooperation between the two countries, an official said on Monday.

Eang Sophallet, assistant to Prime Minister Hun Sen, told reporters at the Foreign Ministry that Hun Sen met visiting Shin Jae Hyun, ambassador in charge of cooperation, natural resources and energy affairs to the South Korean President about cooperation between both sides.

Cambodia and South Korea will sign an MoU on oil and energy cooperation during the visit of South Korean President Lee Myung-bak, Eang said. “Both sides will sign the contract on seeking mines, oil, gas, and energy cooperation to push the economic development in the country,” he said. “The bilateral cooperation will provide the mutual benefits.”

US$10 Million for Promotion of Cambodian Companies: KHTDC

Cambodian Companies will get benefit from funds of US$10.3 million allocated to promote the kingdom’s business potential, Hong Kong Trade Decorated Council (KHTDC) said at a Tuesday press conference at Intercontinental Hotel.

KHTDC said its goal was to extend trade in Cambodia through a promotion to be held through October and November 2009.

Johnny Wan, senior manager of KHTDC, called Hong Kong “a core or heart as many free market of the potential trades all over the world, Cambodia whose is the fortieth member in the project, in 2008, KHTDC cooperated as two parties in trading.”

Wan said he will hold a meeting with a Cambodian delegation related to trading, especially Cambodian Government officials in Hong Kong, to discus how best to enhance Cambodia’s economy.

Agriculture Key to Overcoming Crisis: Expert

By Sok Khemara, VOA Khmer
Original report from Washington
06 October 2009

Of Cambodia’s main economic earners, it is not tourism or garments that will help it through the economic crisis, but rather agriculture, a leading Cambodian economist said Monday.

“What we have seen and learned from the world crisis is that the agricultural sector should be focused on as an economic target,” said Kang Chandararoth, head of the Cambodia Institute of Development Study, as a guest on “Hello VOA.”

A policy to set up a reserve fund for agriculture is the “pressing issue,” he said. Agriculture was Cambodia’s “gateway to growth.”

Tourism, garment export and construction have all been hard hit by the global economic downturn, with orders for clothing down, number of visitors diminishing and a depressed real estate market.

Cambodia's trade with Hong Kong down 24 pct to end July

PHNOM PENH, Oct. 7 (Xinhua) -- Bilateral trade between Cambodia and China's Hong Kong dropped 24.39 percent in the first seven months year-on-year, local media reported Wednesday.

Citing the data released by the Hong Kong Trade Development Council, the reports said trade between the two sides fell to 288 million U.S. dollars from 380.94 million dollars last year.

Hong Kong's total exports to Cambodia fell to 279 million dollars from 375.5 million dollars, while Cambodia's shipments in return increased to 9 million dollars from 5.44 million dollars during the year up to the end of July.

The figures were released Tuesday at a press conference to attract Cambodian companies to hold trade exhibitions in Hong Kong.

New taxi firm launches

CAMBODIA’S second taxi company began operations in the capital Monday with a fleet of 20 vehicles. South Korean-owned Trans Choice Cambodia Co has earmarked US$3 million to set up the company and has already spent $500,000 to buy its starting fleet and employ and train 60 drivers, company spokesman Din Radeth said.

The company, which is operating under a 20-year licence from the government, will go head-to-head with Global Trade Development (Cambodia) of China, the Kingdom’s first metred taxi service – and the city's tuk-tuks and motodops – for passengers.

Ministry warns telcos

Letter on pricing and interconnectivity 'crisis' in mobile industry sent to prime minister's office

THE Ministry of Posts and Telecommunications (MPTC) and the Ministry of Economy and Finance have attempted to bring a dispute in the mobile-phone sector under control through an inter-ministerial circular released last week promising to crack down on “unfair competition”.

In the September 29 circular, a copy of which was sent to the prime minister’s office and all mobile-phone operators, MPTC Minister So Khun and Finance Minister Keat Chhon called on companies to “cease immediately any advertising, programmes and strategies for market competition, any blocking of interconnection between networks, which have caused the telecom crisis in Cambodia”.

Although the letter doesn’t specify the “crisis”, it is almost certainly referring to a feud between Mobitel and Beeline that led the former to launch legal action against its Russian-based rival in August over alleged price-dumping, an accusation most operators in Cambodia have backed. Meanwhile, Beeline says Mobitel has blocked interconnectivity, thereby undermining consumers’ interests, and has in turn been accused of using Mobitel’s prefixes to circumvent the blocks.

South Korea to sign energy, mining deal

CAMBODIA is set to sign an agreement on energy and mining exploration with South Korea when the country’s President Lee Myung-bak makes a state visit to the Kingdom late this month, a government spokesman said Monday.

Shin Jae-hyun, South Korea’s visiting ambassador in charge of energy and natural resources cooperation, held a meeting with Prime Minister Hun Sen on Monday to discuss plans for joint study agreements in Cambodia, said Eang Sophalleth, the prime minister’s spokesman.

But further details of the proposed deal were not immediately available, including whether the energy deal would apply to offshore or onshore exploration.

Capital's freight rises again

Phnom Penh Autonomous Port saw freight volumes increase last month, showing good Q3 results as Sihanoukville suffers.

FREIGHT exports through the Phnom Penh Autonomous Port continued to increase in September after gains in both July and August followed year-on-year losses in the first six months of 2009.

Official figures obtained by the Post Monday show the port handled 4,484 outbound 20-foot-equivalent units (TEUs) in September, up 22.7 percent on the same month last year, when 3,654 TEUs were handled.

The increase follows a 22.65 percent rise in outbound cargo in August, which saw 5,063 TEUs shipped down the Mekong, compared with just 4,128 TEUs a year earlier. July exports through the port were up 0.84 percent year-on-year to 4,191 TEUs.

Falling exports in the first six months of the year mean outbound throughput volumes still fell 11 percent year-on-year across the first nine months of 2009 from 36,079 TEUs to 32,087 TEUs.

Possible caps on investment by foreigners concern telcos

Companies describe parts of draft telecoms law, including relicensing issue, as vague in final meeting before formally submitting feedback to government.

MOBILE phone executives were due to finalise a joint private-sector submission Monday afternoon on a forthcoming telecoms law that contains a provision that some have said appears to limit foreign ownership within the sector.

In a meeting with Australian law firm Allens Arthur Robinson, company heads from the Kingdom’s mobile providers were due to put the finishing touches to a response that is due to be passed on to the government.

Marae Ciantar, head of Allens Arthur Robinson in Cambodia and Thailand, said late last week that a provisional nine-page response earlier obtained by the Post could be revised during the meeting.

Two more Viet companies to operate in Cambodia

Vietnam, Cambodia enterprises jointly establish food, fertilizer companies

10/06/2009
VNA/VOVNews (Hanoi)

Four Vietnamese and Cambodian companies signed official contracts on the establishment of the Cambodia-Vietnam Foods Company and the Cambodia Five-stars International Fertiliser Company in the Cambodian capital of Phnom Penh on October 5.

These companies include the Investment and Development Company of Cambodia (IDCC) and its partners, the Vietnam Southern Food Corporation (Vinafood II), the Green Trade Company and the Five-stars International Group Company (Five-stars).

The signing ceremony was attended by Cambodian Senior Minister of Commerce Cham Prasidh, Senior Minister cum Secretary General of the Council of Development of Cambodia Sok Chanda and representatives from the Vietnamese embassy.

Almost 3,000 hectares of rice crop destroyed by flood in Stung Treng

05 October 2009
By Ratha Visal
Radio Free Asia
Translated from Khmer by Socheata

The Stung Treng provincial authority indicated that almost 3,000 hectares of rice crops are flooded. The flood also affects 3 inhabited villages and communes along main rivers.

Loy Sophat, Stung Treng provincial governor, indicated on Monday 05 October that 95% of the flooded [rice crop fields] were completely destroyed and more than 300 families were evacuated to safety: “The flood is rising fast in the past few days….”

Rising water along the Sesan and Sre Pok rivers flooded numerous villages and communes along the rivers in Ratanakiri province. The flooding started on 28 September 2009, and it is taking place along 3 major rivers in Stung Treng province: the Sekong, Sesan and Mekong rivers. The flooding overcame houses where more 3,000 families are living in.