Property News Roundup 30th September 2024
- Cambodia Pulls Out of Economic Agreement With Vietnam and Laos
Cambodia has decided to withdraw from the Cambodia-Laos-Vietnam (CLV) Triangle Development Area, a significant economic agreement established in 1999 aimed at developing the border provinces of the three countries. Prime Minister Hun Manet announced this decision, citing concerns about national sovereignty and political pressure from opponents. The CLV agreement has faced criticism over the years, with detractors arguing that it effectively ceded Cambodian territory to Vietnam. This move marks a notable shift in Cambodia’s foreign relations, particularly with Vietnam. Cambodia’s increasing alignment with China is evident, as the country seeks to reduce its reliance on Vietnamese ports through initiatives like the China-backed Funan Techo Canal project. This decision is seen as a strategic move to address public concerns and disarm political extremists who have used the agreement as a point of contention. The withdrawal from the CLV agreement underscores Cambodia’s evolving geopolitical strategy and its efforts to balance relations with neighboring countries while strengthening ties with China.
September 23rd 2024 | The Diplomat | Link:t.ly/10jBm
- Cambodia to continue all development projects in north-eastern part
Despite Cambodia’s decision to end its participation in the Cambodia-Laos-Vietnam Development Triangle Area (CLV-DTA), the country will continue all development projects in the northeastern regions. The government remains committed to infrastructure development, particularly focusing on border demarcation and the construction of interconnected infrastructure such as border ring roads. Investment incentives for promoting development in the northeastern provinces will also remain in place for the next year. Prime Minister Hun Manet expressed gratitude to citizens for their contributions to the Border Infrastructure Development Foundation and confirmed that the free tour program to the northeast regions will continue until the end of the year. This approach underscores Cambodia’s dedication to regional development and public engagement, even as it navigates changes in its international agreements.
September 23rd 2024 | Khmer Times | Link:t.ly/UQY4C
- World Bank Project to Boost Education Quality in Cambodia
The article is about a World Bank project that aims to improve education quality in Cambodia. The project has a number of goals, including improving access to higher education for women and students with disabilities. It also aims to update curricula and train lecturers. The project will also provide support for research in science, technology, engineering, and mathematics (STEM). Overall, the project is expected to benefit some 32,000 students.
September 24th 2024 | Miragenews | Link:t.ly/DpxMl
- AirAsia Takes Flight New Route to Singapore Soars High for Cambodia’s Tourism Industry
Despite Cambodia’s economic recovery, many businesses are struggling, leading to closures. A 44-year-old entrepreneur who ran a successful bakery across Phnom Penh had to shut down his stores due to low footfall and unfulfilled promises by mall operators to attract customers. Similarly, Vann Bora, a young entrepreneur, had to close his food delivery service and cafe due to declining orders and customer visits. In Siem Reap, vendors face challenges with soaring rents. Veng Chomreaun, who ran a popular pizza house for 24 years, had to close his restaurant due to economic challenges and disruptive construction work. Other businesses, such as Darany BBQ and Khema Angkor, also had to shut down due to various reasons including increased taxes and dwindling customers. Special education schools and businesses adapting to new technologies like AI are also facing challenges. Economists observe that while some businesses are closing due to declining orders, others are opening. They suggest that more solutions are needed, including support from the government and foreign direct investment, to prevent rising unemployment rates and negative societal impact.
September 24th 2024 | Travelandtourworld | Link:t.ly/g4-dh
- Bay of Lights Entertainment Partners with Millennium Destinations to Lead Sustainable Tourism in Sihanoukville
In the first half of 2024, Cambodia’s real estate and construction sectors experienced a significant surge in loan disbursements. The real estate loans saw an increase of 25%, while construction loans rose by 15% compared to the same period in the previous year. This growth in lending, however, was accompanied by a rise in Non-Performing Loans (NPLs). Banks and microfinance institutions reported an NPL rate of 6. Despite the challenges posed by the rising NPLs, the robust growth in lending underscores the resilience and potential of Cambodia’s real estate and construction sectors. The data suggests a positive outlook for these sectors, albeit with the need for cautious optimism given the increasing NPL rates. The situation calls for effective risk management strategies to ensure the sustainability of growth in these sectors. The increase in lending is a testament to the confidence of financial institutions in the potential of Cambodia’s real estate and construction sectors, even in the face of rising NPLs. It remains to be seen how these sectors will navigate the challenges ahead and continue their growth trajectory.
September 23rd 2024 | The Phnom Penh Post | Link:t.ly/z1Ucr
- The Rise of Fintech in Cambodia: Driving Growth and Financial Inclusion
Cambodia’s fintech landscape has witnessed remarkable growth in recent years, driving financial inclusion and economic development. The country’s burgeoning fintech industry has been fueled by a combination of factors, including a young, tech-savvy population, government support, and the increasing adoption of digital technologies. One of the most significant trends in Cambodia’s fintech sector has been the rapid expansion of mobile payments. E-wallets and QR code payments have become increasingly popular, providing convenient and accessible financial services to a wide range of individuals and businesses. This shift towards digital payments has helped to reduce the reliance on cash and has facilitated financial transactions in both urban and rural areas. In addition to mobile payments, Cambodia’s fintech industry has also seen growth in other areas, such as peer-to-peer lending, crowdfunding, and digital insurance. These innovative financial services have the potential to address the needs of underserved segments of the population and promote economic growth.
September 23rd 2024 | thefintechtimes | Link:https://shorturl.at/EJMKl
- ADB maintains Cambodia’s economic growth forecast for 2024/25
The Asian Development Bank (ADB) has maintained its forecast for Cambodia’s economic growth in 2024 and 2025. The ADB expects Cambodia’s economy to grow at a rate of 5.5% in both years, driven by strong domestic demand and continued recovery in the tourism sector. Several factors are contributing to Cambodia’s positive economic outlook. The country’s garment and footwear industries are expected to continue to perform well, supported by increased exports to key markets. The tourism sector is also recovering from the impacts of the COVID-19 pandemic, with a gradual increase in international arrivals. However, the ADB has also highlighted some risks to Cambodia’s economic growth. These risks include potential disruptions to global supply chains, geopolitical tensions, and climate change. If these risks materialize, they could have a negative impact on Cambodia’s economy.
September 25th 2024 | The Phnom Penh Post | Link:t.ly/zJ3oh
- Cambodia Data Center Colocation Market to Reach US$ 415.56 Million by 2032, Growing at a 12.3% CAGR | Astute Analytica
Cambodia’s data center colocation market is poised for significant growth, with a projected valuation of US$415.56 million by 2032. This represents a substantial increase from US$156.42 million in 2023, reflecting a compound annual growth rate (CAGR) of 12.3%. Several factors are fueling this expansion. The demand for data management and cloud-based services is surging in Cambodia, driven by rapid digital transformation across various industries. Additionally, the rise of internet and mobile broadband penetration is creating a need for robust and secure data centers. Data center colocation providers offer businesses a cost-effective solution for storing their data and IT infrastructure. By leveraging colocation services, companies can access state-of-the-art infrastructure, secure facilities, and diverse connectivity options without the upfront capital investment required to build and maintain their own data centers. This flexibility is particularly attractive for businesses of all sizes looking to scale their IT needs efficiently. The growth of the data center colocation market in Cambodia signifies the country’s increasing reliance on digital technologies and its transformation into a regional hub for data storage and management.
September 25th 2024 | OpenPR | Link:t.ly/kxp06
- Tourism sector expects positive signs as challenges addressed
The article highlights the positive outlook for Cambodia’s tourism sector as it enters the fourth quarter of 2024. The government and private sector are collaborating to address challenges that have impacted tourism for over four years. Newly appointed Minister of Tourism Huot Hak and CATA president Chhay Sivlin express optimism about the industry’s future. Key concerns include enhancing global marketing efforts, reducing barriers for foreign tourists, and resolving tax issues for tourism operators. Recent measures taken by the government include allowing photography in previously restricted temple areas and focusing on improving the aesthetics and environment of tourism sites. These efforts aim to rejuvenate the tourism sector and attract more international visitors, signaling a hopeful recovery for Cambodia’s tourism industry.
September 26th 2024 | thestar | Link:t.ly/tZnPQ
- Cambodia expects nearly 6 million international tourists in 2024: PM Hun Manet
Cambodia is anticipating nearly 6 million international tourists in 2024, a significant increase from the 5.45 million visitors in 2023. The primary sources of these tourists are expected to be Thailand, Vietnam, and China. The tourism sector generated $3.08 billion in revenue in 2023, creating approximately 450,000 direct jobs. This growth is supported by infrastructure developments, including the new Siem Reap Angkor International Airport and the upcoming Techo International Airport. Prime Minister Hun Manet highlighted these projections, emphasizing the positive impact on Cambodia’s economy and the continued efforts to enhance the country’s appeal to international visitors.
September 27th 2024 | The Shillong Times | Link:t.ly/fEi8q