Property News Roundup 11th November 2024
- Kratie Celebrates the Official Opening of its First USD 140 Million Tyre Factory
The Newbustar (Cambodia) Tire Co., Ltd. has officially opened Cambodia’s first-ever tyre factory in the UBE Snuol Special Economic Zone (SEZ) in Kratie province. This $140 million investment, which began operations in May 2023, spans a 40-hectare site with an annual production capacity of up to 8.5 million tyres. The inauguration ceremony on September 6, 2024, was led by Chea Vuthy, secretary-general of the Council for the Development of Cambodia (CDC), who emphasized the factory’s role in economic diversification and job creation. He also acknowledged former Prime Minister Hun Sen’s vision in establishing the SEZ development programme in 2006. The UBE Snuol SEZ is part of a broader initiative to attract high-value industries and advanced technology, contributing to Cambodia’s 26 operational SEZs, which host around 775 investment projects worth nearly $10 billion and employ approximately 180,000 workers.
November 4, 2024 | Construction & Property | Link: https://t.ly/CzsNd
- Preah Sihanouk: Cambodia’s gateway to global trade and growth
Preah Sihanouk province, located along Cambodia’s southwestern coast, is poised to become a major hub for global trade and economic growth. The Sihanoukville Autonomous Port, Cambodia’s only deep-water seaport, provides a strategic advantage for international trade. The province is undergoing significant transformation through a Master Plan aimed at developing it into a Model Multi-Purpose Special Economic Zone by 2038. This plan includes major investments in infrastructure, such as upgrading the port, modernizing the airport, and enhancing road and railway networks. The development will focus on four key industrial clusters: tourism, modern agro-processing, high-tech manufacturing, and advanced producer services. Additionally, the province aims to promote sustainable tourism by preserving its natural beauty and biodiversity, similar to Langkawi in Malaysia. By diversifying its economy and investing in human capital, Preah Sihanouk is set to become Cambodia’s gateway to the world.
November 4, 2024 | The Phnom Penh Post | Link: https://t.ly/Wmxp3
- The 250 km Cambodia Border Ring Road is starting the construction under FBID’s Nearly USD 27 Million
Cambodia has commenced construction on a 250-kilometre border ring road, funded by nearly $27 million raised by the Foundation for Border Infrastructure Development (FBID) through public contributions. The project, officially launched on November 1, 2024, aims to enhance connectivity in the northeastern provinces of Mondulkiri and Ratanakiri. The road will feature a 9-10 meter paved roadbed with a 7-meter-wide driving surface and is expected to be completed by April 2027. This initiative is part of a broader effort to secure Cambodia’s borders and improve infrastructure, with significant contributions from local and international donors.
November 5, 2024 | Construction & Property | Link: https://t.ly/wt0tM
- Cambodia sees just 1% rise in MFI loans this year
In the first three quarters of 2024, Cambodia’s microfinance sector saw a modest 1% increase in loan volume compared to the previous year. This slow growth reflects the impact of unfavorable global economic conditions on the Cambodian economy. Despite the challenges, the microfinance sector remains crucial for providing financial services, especially in rural areas where access to traditional banking is limited. The sector’s resilience highlights its importance in supporting local economies and fostering financial inclusion. Efforts to enhance regulatory frameworks and promote financial literacy are ongoing to ensure sustainable growth and protect borrowers.
November 5, 2024 | Khmer Times | Link: https://t.ly/Nd23d
- NBC taking on microfinance challenges; $5B out on loan
As of August 2024, microfinance institutions in Cambodia have provided loans totaling over $5 billion, with the sector’s assets reaching approximately $6.2 billion. At the 2024 Annual Microfinance Conference held in Siem Reap, Sum Sannisith, deputy governor of the National Bank of Cambodia (NBC), acknowledged the sector’s challenges, including over-indebtedness, lack of financial literacy, and limited customer protections. The NBC is addressing these issues by developing regulatory frameworks, promoting financial literacy, and enhancing customer protection. The microfinance sector plays a crucial role in providing financial services to rural areas, with about 74.4% of Cambodians living in these regions. The Cambodia Microfinance Association (CMA) continues to ensure that rural communities receive quality and responsible financial services.
November 6, 2024 | The Phnom Penh Post | Link: https://t.ly/c4PnV
- Cambodia Maintains the World’s Highest Central Bank Interest Rates, Defying Global Trends
In the third quarter of 2024, Cambodia’s central bank interest rates remain the highest globally, ranging between 10% and 12%. This is in stark contrast to the 0% to 6% range maintained by most major economies. The National Bank of Cambodia’s decision to keep these high rates is aimed at controlling inflation and stabilizing the national currency, despite global trends of lower interest rates. This policy reflects the central bank’s cautious approach to economic stability, prioritizing the containment of inflationary pressures and ensuring the robustness of the Cambodian riel. While this strategy helps maintain economic stability, it also poses challenges for borrowers who face higher costs of credit. The high interest rates are part of a broader effort to safeguard the economy against external shocks and maintain investor confidence in the country’s financial system.
November 6, 2024 | Construction & Property | Link: https://t.ly/lbR22
- CDC approves 31 new investment, production expansion projects
In October 2024, the Council for the Development of Cambodia (CDC) approved 31 new investment and production expansion projects, with a combined capital exceeding $226 million. These projects are expected to create approximately 16,000 new jobs. The investments include factories for shoes, decorations, household goods, camping accessories, beverages, bags, agro-industrial products, car accessories, furniture, chemicals, and mining, as well as a shopping mall. Chinese investors were the largest contributors, accounting for 53.39% of the total investment, followed by local investors at 29.47%, with additional financing from Singapore and Vietnam. More than 93% of the funds were directed to the industrial sector, while over 6% went to agriculture. Notably, 21 of the 31 projects are located outside special economic zones (SEZs), with the remaining 10 within SEZs.
November 7, 2024 | The Phnom Penh Post | Link: https://t.ly/1e7Fh
- Plans to Relocate Boeung Chhouk Market Vendors After Blaze
Following a devastating fire at Battambang’s Boeung Chhouk Market on November 3, 2024, which affected over 150 vendors, authorities are planning to relocate the displaced traders. The cause of the blaze is still under investigation. In the meantime, vendors face uncertainty about their future business locations. Efforts are underway to find a suitable temporary site to ensure that the vendors can continue their operations while the market is being rebuilt. Local authorities are also considering measures to prevent such incidents in the future.
November 7, 2024 | Kiripost | Link: https://t.ly/fMjLF
- Chinese Company to Establish Cashew Processing Plant in Cambodia
Shandong (Cambodia) Economic and Technological Development Zone, a Chinese company specializing in cassava and cashew cultivation, has announced plans to establish a cashew processing plant in Cambodia. The plant, which will be located in Kampong Thom province, represents a significant investment aimed at boosting the local cashew industry. This facility is expected to enhance the processing capacity for cashew nuts, allowing for direct exports to major markets such as China, Europe, the United Arab Emirates, and the United States. The initiative aligns with Cambodia’s national policy on cashew nuts, which aims to attract more investors and promote sustainable agricultural practices.
November 8, 2024 | Construction & Property | Link: https://t.ly/bdC7C
- Techo International Airport completed more than 90%, cost of USD1.3 billion
As of the first week of November 2024, the construction of Techo International Airport has surpassed 90% completion, with costs exceeding $1.3 billion. The major construction work is expected to be finished by the end of December 2024, while the remaining tasks, including applying for a civil aviation license and conducting safety tests, will be completed by mid-2025. This project has created employment opportunities for over 15,000 staff and managers. The airport, located 20 kilometers south of Phnom Penh, is being developed by the Cambodia Airport Investment Co., Ltd. (CAIC), a joint venture between the Royal Government of Cambodia and the Overseas Cambodian Investment Corporation (OCIC).
November 8, 2024 | Construction & Property | Link: https://t.ly/o-W9-