Cambodia 20240812: Imaginative, Empathetic, Motivating
Cambodia 20240812: Imaginative, Empathetic, Motivating
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
News from Southeast Asia directly to your inbox every weekday.
The Mekong Memo is proudly presented by:
Horton International is your premier partner for executive search in Southeast Asia. Whether you're a small startup or a global corporation, our reliable and effective recruiting solutions are tailored to meet your unique needs. With extensive experience and offices across the region, we excel at overcoming recruitment challenges and securing top talent for your organization.
Click here to learn how Horton can make your life easier.
The Memo is published weekdays - Cambodia (every Monday), Myanmar (Tuesday), Laos (Wednesday), Vietnam (Thursday) and Thailand (Friday). The Thailand edition is free in its entirety; the others usually abbreviated for non-paid subscribers.
Please go to https://www.mekongmemo.com/account to select country editions you would like to receive without affecting your overall subscription status.
Headlines:
Canal Project Sparks National Pride
Climate Action Plan Updated
Digital Currency Adoption Rises
Real Estate Market Sees Challenges
Exports Surge in First Half
Air Travel Rebounds
US Trade Relations Strengthen
Defense Cooperation with Vietnam
Tourism Sector Seeks Revival
Palm Tree Cultivation Promoted
Fisheries Sector Eyes Global Markets
Journalism Charter Established
Opposition Leader's Appeal Denied
E-Arrival System Announced
Ex-Construction Worker Succeeds as Rat Farmer
Canal Project Sparks National Pride
The Funan Techo Canal project has begun construction. Prime Minister Hun Manet has been at pains to hail it as a symbol of national unity and economic sovereignty. While supporters praise its potential economic benefits, some experts continue to voice worries about environmental impacts and funding uncertainties. Vietnam is now publicly expressing support the Canal project while calling for cooperation among Mekong countries. The 180-kilometer canal will connect the Mekong River to the Gulf of Thailand. Vietnam continues to assess the project's impacts and says it wants to work to ensure sustainable development of Mekong River resources. The $1.7 billion project is expected to be completed by 2028.
Read more: Khmer Times (Local Reactions), Deutsche Welle (Analysis), Tuoi Tre News (Vietnam's Response), Khmer Times (Vietnam’s Response)
Climate Action Plan Updated
Cambodia is developing its Climate Change Strategic Plan 2024-2033 to guide climate-smart development. The plan builds on previous successes and lessons learned, with a focus on addressing climate issues and supporting the nation’s most vulnerable people.
Read more: Khmer Times (details)
Digital Currency Adoption Rises
The Bakong digital currency system is gaining traction, with 10 million wallets created since its 2020 launch. Recent statistics show an increasing percentage of transactions in the local riel currency, which is helping to address rising dollarization concerns. The system's success is attributed to cross-border payment arrangements and a lot of work from the government to encourage local currency use.
Read more: Ledger Insights
Real Estate Market Sees Challenges
The real estate sector, particularly the borey housing market (typically a sort of gated village), is experiencing a downturn. Oversupply, risky financing, and economic pressures have led to project delays and a rising number of disputes between developers and buyers - especially lower and middle class purchasers. The government is looking for solutions, but experts are saying that we should expect continued struggles in the sector.
Read more: Radio Free Asia
Exports Surge in First Half
Cambodia's exports reached $14.76 billion in the first seven months of 2024, a 14% increase year-on-year. The US remains the largest market, followed by Vietnam and China. The growth is being credited to rising global demand and trade facilitation programs, including free trade agreements with China, Korea, and RCEP partners.
Read more: Khmer Times, Cambodianess
Air Travel Rebounds
Cambodia's three international airports handled more than 3 million passengers in the first half of 2024, a 22% increase from the previous year. The newly opened Siem Reap Angkor International Airport is expected to pull in more international airlines and travelers. Officials are optimistic about continued growth in the aviation sector.
Read more: The Star (Statistics), Khmer Times (Details)
US Trade Relations Strengthen
Cambodia's exports to the US represented nearly 40% of all exports in 2023, creating more than a million jobs. The US is now Cambodia's fifth largest agricultural market. A recent US Food & Beverage Showcase in Phnom Penh was a good opportunity to see how the growing commercial ties between the two countries are developing.
Read more: Khmer Times (statistics)
Defense Cooperation with Vietnam
Cambodia and Vietnam have agreed to work together more closely on defense cooperation during a recent high-level meeting. The two countries plan to put joint activities, including training programs and participation in defense exhibitions into action.
Read more: Khmer Times (details)
Tourism Sector Seeks Revival
Cambodia is launching a few new programs to support its flagging tourism sector. The newly established Cambodia Tourism Board plans to raise the country's profile through roadshows, new travel products, and a handful of overseas marketing campaigns. The goal is to attract some of the most important and valuable target markets and breathe new life into the industry over the next 6-12 months.
Read more: Cambodia Daily (overview)
Palm Tree Cultivation Promoted
The Ministry of Environment plans to hand out a million palm seedlings next year as part of efforts to promote palm tree cultivation as a commercial crop. The project was put together in the hope that it will help to transform palm sugar production from a family business to an international trade model while also increasing forest cover and preserving Cambodian national identity.
Read more: Khmer Times (details)
Fisheries Sector Eyes Global Markets
The fisheries sector is taking steps towards export compliance for global markets. The country is implementing a food safety system in line with EU standards and preparing for an EU audit to improve market access. The program is expected to expand exports to international markets, including China, Australia, and ASEAN countries. The sector is focusing on improving quality control and official inspections to meet international requirements.
Read more: United Nations Cambodia
Journalism Charter Established
The Ministry of Information has introduced Cambodia's first unified "Charter for Professional Journalism" to codify ethical standards in the media sector. The charter, made up of 27 articles, attempts to tackle issues like as fake news and is intended to reorganize media operations. All entities requesting media licenses must now sign the charter, and the government claims that press freedom will be maintained, so long as it remains within “legal boundaries.”
Read more: Khmer Times
Opposition Leader's Appeal Denied
Cambodia's Supreme Court upheld a three-year prison sentence for opposition leader Thach Setha on charges of incitement. The case has drawn criticism from human rights groups, who view it as part of a crackdown on political dissent. Thach Setha's wife expressed concerns about his health and treatment in prison.
Read more: Radio Free Asia (Details), UCA News (Context)
E-Arrival System Announced
Cambodia is planning to launch an e-arrival system for international flight passengers in September. The digital system will replace paper forms for immigration, health, and customs declarations. Officials say the new process will streamline arrival procedures and improve data management for foreign visitors.
Read more: Cambodianess
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap with a less business-focused article.
A familiar sight on Southeast Asian roads is the overloaded truck, but its days may be numbered in Cambodia, a doctor is asking buddhists to refrain from giving monks energy drinks as they are leading to a spike in diabetes, a mystery man is rescued from a local sewer and, finally, King Rat :
Ex-Construction Worker Succeeds as Rat Farmer
Former migrant worker Muy Reun, after returning from Thailand, turned to raising rats in his hometown of Battambang, capitalizing on apparently rising demand for rat meat. With more than 100 farm tanks, Reun’s rat farming operation brings in more than $500 a month, with rat meat selling for up to $12.50 per kilogram. Despite the simplicity of care required, demand is currently outstripping supply, prompting Reun to encourage others to explore this niche yet profitable venture.
Read more: Cambodianess
That’s all for this week! Please don’t forget to share this with someone who would find it useful. Also, your voice matters to us. Feel we're missing something? Have additional sources to suggest? Don't hold back— hit reply and tell us what you think.
If you value the Mekong Memo, please consider buying (or gifting!) a paid subscription, sharing it on social media or forwarding this email to someone who might enjoy it. You can also “like” this newsletter by clicking the ❤️ below (or sometimes above, depending on the platform), which helps us get visibility on Substack.