Property News Roundup 10th June 2024

Property News Roundup June 10th, 2024

We’re delighted to share the weekly news highlights below.

1. A Chinese firm interested in investing in industrial park creation in Cambodia

Guangxi Beibu Gulf Investment Group, a Chinese company, has expressed interest in establishing an industrial park in Cambodia. The company’s delegation recently visited Lor Tith Chansopheak, an advisor to the Council for the Development of Cambodia (CDC), to discuss potential investment opportunities. The proposed industrial park is expected to boost economic growth, attract investments in potential areas, and strengthen Cambodia-China bilateral relations. The Royal Government of Cambodia is supportive of such initiatives and offers favorable incentives for investments, particularly in key sectors. This move signifies the growing interest of foreign investors in Cambodia’s industrial sector.

June 1st 2024 | Khmer Times | Link:t.ly/r3wSd

2. Cambodia’s famed Angkor sees 37-pct rise in int’l tourists in first 5 months

In the first five months of 2024, Cambodia’s renowned Angkor Archaeological Park witnessed a remarkable 37 percent surge in international tourists compared to the same period in 2023. The park welcomed 839,404 foreign visitors, generating $36.9 million in revenue from ticket sales. Chinese tourists topped the list, accounting for 25 percent of all international visitors. Following closely were South Koreans, Americans, Vietnamese, and Thais. This growth in tourism can be attributed to Cambodia’s reopening to fully vaccinated travelers in late 2021, easing entry procedures, and improving connectivity through direct flights from China. The Angkor complex, a UNESCO World Heritage Site, is a major attraction for Cambodia, showcasing the grandeur of the Khmer Empire’s architecture and art. The Ministry of Tourism aims to attract 4 million international visitors by 2028, with Angkor Wat playing a central role in achieving this goal.

June 2nd 2024 | Xinhua | Link:t.ly/LTz7T

3. High NPL to Persist in 2024 as Banks Tighten Lending Amid Slow Economy

Cambodia’s banking sector is facing challenges in 2024, as slow economic recovery and tightened lending have led to a surge in non-performing loans (NPLs). Both commercial banks and microfinance institutions (MFIs) are experiencing a spike in NPL ratios, reaching a seven-year high of 5.1 percent for commercial banks. The rise in NPLs is primarily attributed to lower incomes and economic hardship, rather than changes in interest rates. While interest rates on existing loans remain largely unchanged, reduced incomes have made it difficult for borrowers to meet their repayment obligations. The upward trend in NPLs is expected to continue, particularly in sectors like retail trade and small business credit. The banking sector is responding to this situation by tightening lending practices, which could further impact economic growth. However, there are expectations of credit growth recovery from 2024 onwards, depending on overall economic improvement.

May 31st 2024 | KiriPost | Link:t.ly/hpR6M

4. Aeroprime appointed GSSA for Cambodia Angkor Air

Aeroprime Group, a leading Indian cargo General Sales and Service Agent (GSSA), has been appointed as the exclusive GSSA for Cambodia Angkor Air, the flag carrier of Cambodia. This partnership, effective June 1st, 2024, will see Aeroprime manage cargo sales and services for Cambodia Angkor Air’s flights, including a new route connecting Delhi and Phnom Penh starting June 16th. This route, utilizing A320 aircraft, will offer the only direct air cargo connection between India and Cambodia, facilitating increased trade and business opportunities. Aeroprime aims to expand Cambodia Angkor Air’s network and meet growing cargo demands, with plans to extend services to other Indian cities in the future. This strategic move strengthens Aeroprime’s position in the Indian air cargo sector and aligns with its vision to provide comprehensive logistics solutions.

June 04th 2024 | Aircargonews | Link:t.ly/aR4KN

5. Accor Expands Footprint in Phnom Penh with Novotel Debut in BKK1 in 2024

Accor, a leading hospitality group, is expanding its presence in Phnom Penh with the opening of the Novotel Phnom Penh BKK1 in June 2024. Located in the bustling Boeung Keng Kang 1 district, the hotel offers 253 rooms, including suites, catering to both business and leisure travelers. The hotel features various amenities such as meeting rooms, a fitness center, an outdoor pool, and multiple dining options, including a rooftop bar with city views. This addition strengthens Accor’s portfolio in Cambodia, showcasing its commitment to the country’s growing hospitality sector. The Novotel Phnom Penh BKK1 is expected to contribute to the city’s vibrant tourism scene and provide guests with a modern and comfortable accommodation option.

June 03rd 2024 | Cambodia Investment Review | Link:t.ly/MP5dr

6. Cambodia’s exports surge, led by garments, agricultural produce

Cambodia’s exports experienced significant growth in the first five months of 2023, reaching $9.98 billion, a 16.7 percent increase compared to the same period in 2022. The garment, footwear, and travel goods sector remained the dominant contributor, accounting for 65 percent of total exports. This sector witnessed a 23.7 percent rise, reaching $6.5 billion. Agricultural products also played a crucial role, contributing 14.9 percent to total exports, with a notable 51.2 percent increase, reaching $1.49 billion. Non-garment products, including bicycles and electronic components, also saw growth, with a 5.1 percent increase, totaling $1.99 billion. This positive export performance reflects Cambodia’s economic resilience and diversified trade portfolio, despite global economic challenges. The government’s efforts to attract foreign direct investment and expand market access have also contributed to this growth. The outlook for Cambodia’s exports remains positive, driven by increasing demand in key markets and ongoing government support.

June 05th 2024 | MENAFN | Link:t.ly/g3iVA

7. Cambodia-Canada discusses promoting transport infrastructure development and public transport services

Cambodia and Canada are exploring opportunities for future collaboration in the development of transport infrastructure and public transport services. Sun Chanthol, the Minister of Public Works and Transport, met with Kelvin Mo, the Head of the Office of the Representative of the Cambodian Chamber of Commerce in Montreal, Canada, to discuss potential areas for cooperation. The focus is on improving roads, waterways, railways, and urban public transport systems in Cambodia. Additionally, the discussions touched upon logistics, digital transformation in the public sector, and enhancing trade relations between the two countries. This initiative aligns with the Cambodian government’s strategy to attract investment and foster economic growth through improved infrastructure and connectivity.

June 05th 2024 | Khmer Times | Link:t.ly/5wa4q

8. PM: Funan Techo Canal groundbreaking set for August 5

Prime Minister Hun Manet has set August 5 as the groundbreaking date for the Funan Techo Canal. He confirmed 51% of the investment comes from Cambodian financiers, rejecting claims of foreign loans. State-owned companies are participating as majority holders in the investment, alongside private firms. The $1.7 billion, 180km canal will be built under a build-operate-transfer model, with the investment company bearing the costs and operating it for 50 years before transferring it to the government. The project aims to boost tourism, transportation, and benefit provinces along the Mekong and Tonle Sap rivers. The exact date announcement has been welcomed as it dispels ambiguities and marks a significant milestone for Cambodia.

June 06th 2024 | Khmer Times | Link:t.ly/BwitE

9. World Bank June Report Highlights Key Areas for Sustained Growth with Projections of 5.8% for 2024 and 6.1% for 2025

The World Bank’s June 2024 report reveals a rise in Cambodia’s economic activity in early 2024, projecting a growth of 5.8% for 2024 and 6.1% for 2025. The report highlights key areas for sustained growth, emphasizing the importance of investment in infrastructure, education, and skills development to diversify the economy and create higher-paying jobs. The World Bank also stressed the need for further structural reforms to improve the business environment and attract more foreign direct investment. This positive outlook comes as Cambodia continues to recover from the impact of the COVID-19 pandemic, driven by a rebound in tourism, manufacturing exports, and construction.

June 07th 2024 | Cambodia Investment Review | Link:t.ly/hkfDc

10. Cambodia inaugurates 140-mln-USD seaport in SW Kampot province

Cambodia inaugurated a new multipurpose seaport in Bokor city, Kampot province, on June 6th, 2024. The port, developed by local firm Kampot Port at a cost of $140 million, is aimed at bolstering the kingdom’s logistics and maritime transportation sector. It features a shipyard, container terminal, warehouse, and a terminal for tourist vessels, with a capacity to accommodate vessels weighing 10,000 tons. Prime Minister Hun Manet hailed the port as a new international gateway to facilitate trade and contribute to the nation’s economic growth and social development.

June 06th 2024 | Xinhua Asia&Pacific | Link:t.ly/iF30r