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NEWS

Economic Update 

Cambodia's economy continued to post solid growth in the first quarter of 2012. Tourist numbers surged, new garment factories opened, agricultural production expanded, and construction activity picked up. Cambodia hosted the ASEAN Summit, China's President, and EU Trade Commissioner, while President Obama and Secretary of State Clinton announced plans to visit the Kingdom later this year.

 

GDP and Inflation

The World Bank, IMF and ADB's 2012 GDP growth projections range from 6.5-6.6%, slightly below the 6.8-7.0% estimate for 2011. The mild deceleration reflects concerns that the worsening European debt crisis and sluggishness of the US economy will curtail export demand. ADB predicts 2012 industrial activity to grow by 11.4%, services by 5.3% and agriculture by 3.8%. The IMF and World Bank have favorably rerated Cambodia's debt distress risk from moderate to low. Inflation has also eased, with the consumer price index increasing 5.8% in January and 5.4% in February, both well behind 2011's peak of 7.1% in July. ADB expects 5% inflation for 2012 and 2013.

 

Tourism Surge

The tourism sector extended 2011's strong growth trend with visitors rising 26.8% in the first two months of 2012 to over 670,000. Vietnamese, South Korean and Chinese tourists led the parade. Two thirds of the Kingdom's visitors heading for the heritage hub of Siem Reap, where Park Hyatt announced their new 107-room hotel will open in Q1 2013. Meanwhile Sokha Hotels held a soft opening of their Bokor Mountain casino resort in late March, bringing a colonial era hill station back to life.

 

Increased Export Market Access and Diversification

Buoyant garment and rice exports, along with vibrant textile and construction imports, drove 1Q port revenues at Sihanoukville up 22% y-o-y to US$ 8.3 million. The number of garment factories in Cambodia increased from 270 to 320 over the past year as increasing costs in China converged with improving export market access. 1Q garment exports rose 15%, powered by sales to the EU which offers Cambodia duty-free and quota-free access under the Everything But Arms initiative. In agriculture, Cambodia made its first direct shipment of rice to China. Rubber planters, having expanded their land under cultivation by 17% last year, secured a new market in China's Yunnan Province.

In manufacturing, Cambodia is growing beyond garments. RM Asia began assembling Ford SUVs in Sihanoukville, coinciding with news that vehicle imports surged 40% in value in 1Q 2012. Japan's Nidec Group announced it will build an electronics plant in the border town of Poi Pet, creating 5,000 jobs. Malaysia's FTSB SAP Global JV signed a MOU to build a $100 million water treatment plant serving three southwestern provinces in Cambodia. Cambodia's first life insurance company and first credit bureau opened their doors. Internet penetration more than doubled in 2011 and local Facebook users reached 491,000.

 

Launch of First IPO on CSX

Cambodia's bourse attracted high investor interest for its first listing in mid-April. The book-building phase for the Phnom Penh Water Supply's initial public offering was oversubscribed by 17 times, and the shares were priced at the top end of the range. PPWS soared 60% above the IPO price in the first few days before correcting, but still held up well above the subscription price, unlike Facebook.

 

Strengthening International Ties

With Cambodia holding the ASEAN chair for 2012, regional and world leaders visited Phnom Penh in Q1 to cement international ties and promote regional economic integration goals. China and Cambodia vowed during a March visit of Chinese President Hu Jintao to raise bilateral trade to US$ 5 billion by 2017, with cooperation agreements signed to widen two national roads, build a bridge in Kandal province and improve irrigation infrastructure. European trade commissioner Karel De Gucht also held talks in the capital to boost EU ties.


 







INTERNATIONAL DATA GROUP (IDG)

Established in 1964, International Data Group (IDG) is the world’s leading technology media, research, and event company. A privately-held company, IDG published more than 300 magazines and newspapers including Bio-IT World, CIO, CSO, Computerworld, GamePro, InfoWorld, Network World and PC World. The company features the largest network of technology-specific websites with more than 400 around the world. IDG is also a leading producer of more than 170 computer related events worldwide including LinuxWorld Conference & Expo R, Macworld Conference & ExpoR, DEMO R, and IDC Directions. IDC provides global market research and advice through offices in 50 countries.

IDG CAMBODIA

IDG Cambodia is a member of the International Data Group (IDG). It has been developing in Cambodia since 2005 as the next avenue of business growth, through cooperating with National ICT Development Authority (NIDA) and Ministry of Posts and Telecommunications in Information Communication Technology industry. And most recently, it has made a break-through in business by organizing the 4th annual largest Cambodia ICT & Telecom World Expo in Phnom Penh in April 2008 successfully with a number of high ranking levels from Cambodia such as H.E Sok An _ Deputy Prime Minister, H.E So Khun _ Minister of Ministry of Posts and Telecommunications, H.E Khieu Khanarith _ Minister of Ministry of Information … and other 80 local and international vendors.

IDG Cambodia has been successful in firmly establishing its strong cooperation relations with various agencies of Cambodia. H.E Patrick J. McGovern _ IDG Founder and Chairman has visited Cambodia and met with high-ranking officals of Cambodia, including H.E Sok An _ Deputy Prime Minister and several Ministers to promote and strengthen IDG’s profile in Cambodia.


The courtesy call of Mr. Patrick J McGovern, IDG Founder & Chairman to Deputy Prime Minister, Minister, Office of the council of Ministers, H.E. Sok An


The courtesy call of Mr. Patrick J McGovern, IDG Founder & Chairman to Senior Minister, Ministry of Posts & Telecommunications, H.E. So Khun

As commitment to accompany with Cambodia growth, IDG Cambodia is planning to organize more two annual events named Banking Cambodia Conference & Expo 2009 and Cambodia Food, Beverage & Hotel World Expo 2009. They are not only commercial activities but also the national activities in developing Banking & Finance industry as well as Food, Beverage & Hotel services to international standard