Cambodia 20241118: Primordial, Disruptive, Imperative
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Illegal Border Crossings Ordered Closed
Export Growth and Investment Drive Momentum
Netherlands Vows to Strengthen Ties
Chinese Tourists Arrive in Record Numbers
New Flights in Time for High Season
Calls to Maintain Non-Alignment in U.S. Relations
Climate Action Handbook Ahead of COP29
Australian Troops Gain Insights on Visit
Australia Tops Countries Eyeing SEA Investment
Education Minister Promotes Chinese Language
$10B Railway Development Plan
Trade Agreements Boost Economic Prospects
Deputy PM Urges Work on Construction Sector
Cambodia Post Partners with UK Tech Firm
Film Shoot Permits on the Fast-Track
New Law Targets 50% Reduction in Discharges
Bakong Tourist App Tie-up With Mastercard
Strengthening Trade and Security With Vietnam
Chinese High-Speed Networks Support Digital Transformation
Cambodia Climbs Web3 Adoption Index
PM Orders Groups to Tackle Tourism Challenges
Website to Preserve Khmer Rouge Trials History
Illegal Border Crossings Ordered Closed
The Interior Ministry has ordered the shuttering of all illegal border crossings with neighboring countries to strengthen border management and prevent transnational crimes. The crackdown follows recent discoveries of illegal crossings, particularly along the Thai border, which have raised concerns about human trafficking, smuggling, and other security issues.
Read more: Nation Thailand (Closure Order), Khmer Times (Bordering Countries)
Export Growth and Investment Drive Momentum
Exports rose 16% to $21.57 billion in the first ten months of 2024, driven by shipments of garments, footwear, and agricultural products to major markets, including the U.S. and China. Alongside these trade gains, the country pulled in more than $5 billion in foreign direct investment during the same period - a 38% rise over 2023 and creating 270,000 jobs.
Read more: Khmer Times (Export Growth), Khmer Times (Investment Rise)
Netherlands Vows to Strengthen Ties
Netherlands Ambassador to Cambodia, Jeroen Steeghs, has promised to expand cooperation between the two nations. During a meeting with Cambodian officials, the ambassador spoke about opportunities for collaboration in agriculture, water management, and education. The commitment to stronger bilateral ties is the latest example of growing interest of European nations in engaging with Cambodia and the ASEAN.
Read more: Khmer Times
Chinese Tourists Arrive in Record Numbers
Chinese tourist arrivals have risen by nearly half in the first nine months of 2024. The flow of Chinese visitors, which reached 1.2 million during the period, has been credited to the easing of travel restrictions, increased flights, and targeted marketing campaigns. The trend is expected to continue, with Cambodia hoping to draw 2 million Chinese tourists by the end of the year.
Read more: Xinhua
New Flights in Time for High Season
AirAsia Cambodia has launched new flights to Ho Chi Minh City and Hanoi, and the State Secretariat of Civil Aviation (SSCA) says that it is adding six international routes linking major cities across Southeast Asia and beyond. These new flights, targeting both leisure and business travelers, are expected to fuel tourism and support the aviation growth, which has already seen a 22% increase in passengers this year.
Read more: Khmer Times (AirAsia Routes), Khmer Times (SSCA Expansion)
Calls to Maintain Non-Alignment in U.S. Relations
Senior Cambodian officials have recently been talking up the importance of maintaining the country's policy of not seeking favors from the United States, as they watch the ongoing geopolitical tensions between Washington and Beijing simmer. The call for non-alignment comes as Cambodia looks to balance its relationships with major powers while prioritizing its own national interests and sovereignty.
Read more: Khmer Times
Climate Action Handbook Ahead of COP29
The Ministry of Environment has released a new handbook showing off Cambodia's climate action initiatives and progress ahead of the upcoming COP29 climate conference. The publication specifically showcases efforts in areas of sustainable land management, forest conservation, and renewable energy adoption.
Read more: Khmer Times
Australian Troops Gain Insights on Visit
A contingent of Australian troops recently finished up a visit to Cambodia, where they were engaged in joint training exercises and cultural exchanges. The visit, part of ongoing defense cooperation between the two nations, provided learning opportunities for the Australian soldiers, who gained insights into Cambodia's unique military practices, peacekeeping operations, and humanitarian assistance efforts.
Read more: Australian Department of Defence
Australia Tops Countries Eyeing SEA Investment
Australian investors are increasingly targeting Southeast Asian markets, including Cambodia, according to a recent report. Growing interest in the region is driven by favorable demographics, economic growth, and the emergence of a rising middle class. Cambodia, with its good location, competitive labor costs, and improving business environment, is well-positioned to draw Australian investment in agriculture, manufacturing, and tourism.
Read more: Khmer Times
Education Minister Promotes Chinese Language
Education Minister Hang Chuon Naron delivered a speech at the World Chinese Language Conference on the importance of Chinese language education in building cultural understanding and furthering economic cooperation. The minister said that there are more than 100,000 students currently enrolled in Chinese language courses across the country. The conference, attended by educators and policymakers from around the world, provided a platform for sharing best practices and discussing the future of Chinese language education.
Read more: Khmer Times (Conference Speech), Khmer Times (Chinese Language Education Growth)
$10B Railway Development Plan
The government has announced a $10 billion railway development plan which includes the construction of new rail lines, the upgrading of existing infrastructure, and the establishment of modern logistics centers. By expanding the railway network, Cambodia hopes to reduce transportation costs, attract foreign investment, and improve trade links with neighboring countries, particularly within the Greater Mekong Subregion.
Read more: The Star
Trade Agreements Boost Economic Prospects
The proliferation of regional and bilateral free trade agreements (FTAs) has created favorable conditions for trade and investment in Cambodia, according to experts. These agreements, including the Regional Comprehensive Economic Partnership (RCEP) and bilateral FTAs with countries such as China and South Korea, have opened up new market opportunities for Cambodian businesses and helped to increase foreign investment. As Cambodia continues to integrate into the global economy, the benefits of these trade agreements are expected to drive further economic growth and development.
Read more: Khmer Times
Deputy PM Urges Work on Construction Sector
Deputy Prime Minister Say Samal has called for better collaboration between stakeholders to develop Cambodia's construction sector, which plays a necessary role in the country's economic development. Speaking at a recent industry event, the Deputy PM said that there was a need for public-private partnerships, technology adoption, and skills development to ensure the sector's competitiveness and sustainability. He also called on construction firms to prioritize quality, safety, and environmental responsibility in their projects.
Read more: Khmer Times
Cambodia Post Partners with UK Tech Firm
Cambodia Post has teamed up with a UK-based technology firm to improve the precision and efficiency of its delivery services. Booster say the partnership will leverage advanced mapping and routing solutions to optimize postal operations, reduce delivery times, and improve customer satisfaction.
Read more: Khmer Times
Film Shoot Permits on the Fast-Track
The government has said that it will speed up the process of granting permits for film shoots in the country, in a bid to support the local film industry and attract international productions. The promise comes as part of a package of efforts to promote Cambodia as a destination for film and television projects, capitalizing on its landscape, cultural heritage, and competitive production costs.
Read more: Khmer Times (Permit Streamlining)
New Law Targets 50% Reduction in Discharges
A new law recently passed sets an ambitious target of halving wastewater discharges by 2030, as part of the country's efforts to improve water quality and protect public health. The legislation demands stricter regulations on industrial and municipal wastewater treatment, encourages the adoption of cleaner production technologies, and imposes penalties for non-compliance.
Read more: Phnom Penh Post
Bakong Tourist App Tie-up With Mastercard
The government has released the Bakong Tourists App, developed together with Mastercard, to provide a seamless and secure payment solution for visitors to the country. The app allows tourists to make cashless transactions using their smartphones, eliminating the need to carry physical currency or worry about exchange rates. The application has so far been savaged in app-store reviews, and privacy questions remain a concern as the app says that it will associate your profile with your contacts.
Read more: The Paypers
Strengthening Trade and Security With Vietnam
Cambodia and Vietnam are working closely on their trade and customs cooperation, with Cambodia’s exports to Vietnam rising by a third to $2.9 billion in 2024’s first ten months. Both nations have also promised better collaboration to fight tax evasion, smuggling, and transnational crime. In recent talks, officials suggested strategies for improved border security, information sharing, and more efficient customs processes to support growth and regulation. Both sides are focused on facilitating trade, especially agricultural exports, while tackling illicit cross-border activities.
Read more: AKP (Trade Increase), Khmer Times (Customs Cooperation)
Chinese High-Speed Networks Support Digital Transformation
China is supporting the development of high-speed mobile networks in Cambodia. Chinese telecom giants, including Huawei and ZTE, are partnering with local operators to deploy 5G infrastructure and expand network coverage. The cooperation is expected to unlock new opportunities in e-commerce, telemedicine, and smart cities, while also bridging the digital divide and bringing widespread connectivity to Cambodian citizens.
Read more: Construction Property
Cambodia Climbs Web3 Adoption Index
Big strides have been made in the adoption of Web3 technologies, as the nation climbed 13 spots in a recent global rankings report. The country's supportive regulatory environment, growing blockchain ecosystem, and increasing public awareness have contributed to an emergence as a regional leader in the Web3 space.
Read more: Tiger Research
PM Orders Groups to Tackle Tourism Challenges
Prime Minister Hun Manet has called on officials to form specialized working groups to address challenges facing the tourism industry. The working groups will work on infrastructure development, service quality improvement, and marketing and promotional strategies. By taking a targeted approach to problem-solving, the government hopes to improve the competitiveness of the tourism sector, attract higher-spending visitors, and ensure sustainable long-term growth.
Read more: Khmer Times
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.
There’s no better way to see Cambodia than from the mighty Mekong, the CEO of Lifestyle Brands International reflects on 5 leadership lessons he learnt from Cambodian students, and we had to include this story simply because it contained the phrase “clandestinely indulged in a midnight debauch.” We close this week with this story about saving the past so that it may be remembered:
Website to Preserve Khmer Rouge Trials History
The Extraordinary Chambers in the Courts of Cambodia (ECCC), also known as the “Khmer Rouge Tribunal,” has published a legacy website to save the history and lessons learned from the trials of former Khmer Rouge leaders. The website serves as a digital archive, featuring court documents, testimonies, multimedia materials, and educational resources related to the legal proceedings. By making this information widely accessible, the ECCC hopes to make sure that the memory of the Khmer Rouge era is never forgotten and that future generations can learn from this darkest chapter of Cambodian history.
Read more: Khmer Times
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