As Cambodia gears up for the second France-Cambodia Business Forum next week, the Kingdom is awash with French-owned business success stories. Prominent French names in the business sector highlighted the infinite potential of Cambodia’s economy. The upcoming event follows the inaugural Cambodia Branding Forum on March 28, 2024.
Organised by the France-Cambodia Chamber of Commerce and Industry (CCIFC) together with the Cambodia Committee of French Foreign Trade Advisors (CCEF) and the Cambodia Chamber of Commerce (CCC), the event also has the support of the French Embassy in Cambodia, MEDEF International, and the Cambodian Oknha Association. Scheduled for July 8-10, the event will be staged under the presidency of Prime Minister Hun Manet.
Last year trade between the two countries soared to €1,363 million, making France the second biggest European trading partner, just behind Germany. French exports shot up 31 percent over the previous year. Exports mainly comprised agri-food, pharmaceuticals, metallurgical and metal products. In the same year, French imports from Cambodia notched €1,192 million, mainly in textiles, agri-food and bicycles.
There has also been a significant hike in French investments with stock escalating to approximately €560 million. This has mainly been in the sectors of construction, agro-industry and services.
French firms have been involved in critical infrastructure projects, including airports, transportation, telecommunications and energy, said Charles Julliard, Executive Director, French Chamber of Commerce in Cambodia (CCIFC) to Khmer Times on Tuesday. These projects have not only improved the country’s infrastructure but also facilitated smoother business operations and connectivity, which are crucial for economic growth.
Investments in airports made by French group VINCI (almost $1 billion invested since 1995) have fostered tourism development and, more generally, economic development of the country.
Today, as French investment in terms of FDI in Cambodia, is behind the US, Canada or the UK, there is a huge potential for improvement, said Tea Thierry, VP, Overseas Cambodian Investment Corporation. French businesses have been actively part of the Cambodian business ecosystem. He mentioned the presence of names like Total, Accor or Bolloré contributing to developing local talents and international standards in key industries from energy and hospitality to logistics.
French contributions are characterised by quality, cultural integration, and sustainability in specific sectors, said Jeremie Clement, General Manager, Peninsula Phnom Penh. French businesses have primarily focused on hospitality, retail, banking, and infrastructure, with notable contributions from companies like Decathlon, BRED Bank and Vinci.
The Ministry of Tourism (MoT) Tuesday reported that 524,390 international tourists visited Cambodia in May this year, a decrease of 2 percent compared to 533,932 in April but a rise of nearly 16 percent compared to the same month in 2023 which recorded only 442,114 foreigners.
The Tourism Statistics Department of MoT reported that the number of international tourists visiting the Kingdom over the past five months reached 2,640,999 people, accounting for about 48 percent of the total tourists travelling to Cambodia last year.
From January to May, foreign tourists travelled by land and waterways recorded 1,654,564 people while 986,435 passengers travelled by air transport through the three airports including the Siem Reap Angkor International Airport (SAI) received 281,370 tourists, the Phnom Penh International Airport (PNH) welcomed 699,007 tourists and 6,058 from the Sihanouk International Airport (KOS).
The PNH contributed up to 70.8 percent of the total air market in Cambodia in the first five months, followed by SAI which stands for 28.5 percent while the remaining travelled through the KOS.
The top 10 markets from January to May were tourists from Thailand, Vietnam China, Lao PDR, the United States, Korea, France Indonesia, the United Kingdom and Japan. The tourists from Thailand were the highest, reaching 770,371 people, followed by 528,252 Vietnamese and 326,003 Chinese.
As per the report, in May the international tourists who travelled by air recorded 161,478 passengers while 362,912 travelled by land and waterways, a sum of 524,390 tourists in the first month.
The number marked a tiny decrease of about 2 percent compared to the total international tourist in April which recorded 533,932 travellers nationwide but if compared to 442,114 tourists in the first five months of 2023, the report proved an increase of 15.6 percent instead.
Tripadvisor Inc – an American tour company – stated that four tourist destinations in Cambodia have been recognised as the top tourist attractions in Asia of which Angkor Wat ranked second on the list, followed by the Ta Prohm and Bayon temples standing at rank 19th & 20th and lastly is the Tuol Sleng Genocide Museum in Phnom Penh.
The Bank of Japan began delivering newly designed banknotes to financial institutions on Wednesday, marking the first renewal in 20 years.
The new banknotes will be available at financial institution counters and ATMs once they are ready.
Shortly after 8 a.m. on Wednesday, one-meter-tall stacks of the newly designed bills were loaded into a security vehicle at the BOJ’s head office in Chuo Ward, Tokyo, as a BOJ official instructed the staffers to “begin issuing the new BOJ banknotes.”
BOJ Gov. Kazuo Ueda said, “I hope the new banknotes will be widely distributed to the public and help lubricate the wheel axles of the economy,”
The new ¥10,000 bill features Eiichi Shibusawa, known as “the father of Japanese capitalism,” and the new ¥5,000 bill bears a portrait of Umeko Tsuda, a pioneer of women’s higher education in Japan. Bacteriologist Shibasaburo Kitasato is the face of the new ¥1,000 bill.
Advanced anti-counterfeiting technologies have been introduced with the banknote renewal. They include a type of 3D hologram technology that makes the banknote portrait appear to rotate when viewed from different angles.
The National Printing Bureau is expected to deliver about 7.5 billion banknotes to the BOJ’s head office and branches by the end of March 2025.
Prime Minister Fumio Kishida visited the head office on Wednesday morning to inspect the issuance of the banknotes.
Afterward, he attended a press conference with Ueda, saying: “The new banknotes are suitable for the new era. I hope the public will receive them well and vitalize the economy.”
Some financial institutions began handling the banknotes on Wednesday, but the three megabank groups — Mitsubishi UFJ Financial Group, Inc., Sumitomo Mitsui Financial Group, Inc. and Mizuho Financial Group, Inc. — said they will begin handling them at their branches on or after Thursday in principle.
A ceremony commemorating the change of the portrait on the ¥10,000 bill from Yukichi Fukuzawa to Shibusawa was held Wednesday morning at the Tokyo Stock Exchange.
The event was hosted by hometowns of Fukuzawa and Shibusawa, Nakatsu in Oita Prefecture and Fukaya in Saitama Prefecture, respectively.
The mayors mixed local sake from their cities into a kettle-like vessel, poured into two cups and drank together. and then recited the spirit of Fukuzawa and Shibusawa before ringing a bell to pray for the prosperity of the Japanese economy.
In Fukaya, a countdown event was held at the city center from Tuesday night, and more than 300 residents and other people gathered to celebrate the issuance of the new ¥10,000 bill. As the clock struck midnight, cheers and shouts congratulating the issuance of the new bills were heard, and a traditional decorative paper ball was split open.
Tsuda, whose portrait is on the new ¥5,000 bill, is the founder of Tsuda College, the predecessor of Tsuda University.
On Wednesday, the university held a commemorative talk event at Tokyo Gymnasium adjacent to the university’s Sendagaya Campus in Shibuya Ward. President Yuko Takahashi exchanged opinions with former Japanese women’s national soccer team member Mana Iwabuchi, 31, among others about women’s activities on the international stage.
Flags depicting the face of the new ¥1,000 bill were seen throughout tourist spots and along a national highway in Oguni, Kumamoto Prefecture, where Kitasato was born.
Trying to capitalize on this occasion, the town is selling related products, such as junmai sake with labels that resemble the new ¥1,000 bill and rice crackers branded with the new ¥1,000 bill.
In her maiden visit to Cambodia, Minister of Foreign Affairs of Japan, Kamikawa Yoko, along with Cambodian leaders, will discuss a new approach for the Cambodia-Japan relationship and cooperation.
The Japanese Foreign Minister will also take this opportunity to enhance landmine-clearance cooperation in Southeast Asia, with the support of Japan.
Cambodia’s Ministry of Foreign Affairs said yesterday that Japan’s Foreign Minister Kamikawa Yoko will pay an official visit to Cambodia Friday and Saturday this week.
In its statement, a ministry spokesman said Kamikawa will be paying separate courtesy calls to Senate President Hun Sen and Prime Minister Hun Manet. She will also be holding a bilateral meeting with her Cambodian counterpart, Sok Chenda Sophea.
“The visit by Her Excellency Kamikawa Yoko will keep the momentum of frequent high-level exchanges and further deepen the Comprehensive Strategic Partnership between Cambodia and Japan,” the Cambodian Foreign Ministry said.
In a recent press conference, Kamikawa announced her plan to visit Cambodia and the Philippines this month.
“From the 5th to the 9th of July, if circumstances allow, I will visit Cambodia and the Philippines for the first time as Foreign Minister,” she said while addressing the press in Tokyo.
She added that the visit, marking the 50th anniversary of ASEAN-Japan friendship and cooperation, aims to deepen heartfelt relations and address current issues.
“We will confirm the progress of the concrete cooperation in Cambodia through meetings with key decision makers in the government, including Sok Chenda Sophea, the Foreign Minister,” she said. “We will enhance the relationship with the Hun Manet administration based on long-term cooperation and development in Cambodia. We will make the new approach of bilateral cooperation.”
Kamikawa said that one main issue that she will focus on during the visit to Cambodia and the Philippines will be to facilitate both Southeast Asian countries’ efforts and cooperation on mine clearance.
“Japan has been cooperating with the Cambodia Mine Action Centre for many years, and it has become a leading mine action centre, not only in Cambodia but also extending its support to third countries, including Ukraine,” she added. “Taking advantage of the opportunity my visit to Cambodia offers, we would like to indicate the possibility of mine action support in the Philippines as well.”
Kamikawa added that she will hold a “two-plus-two” security dialogue involving Japanese and Philippine defence and foreign ministers while in Manila, adding that Japan will boost its support for stateless residents of the Philippines who were born to Japanese nationals and were left there amid the turmoil following World War II.
While meeting Chenda Sophea in December last year in Japan, Kamikawa already stated that she welcomes advances in cooperation with Cambodia in the areas of demining and peacebuilding, and, in the area of landmines in particular, cooperation is already advanced for demining assistance in third countries, including in Ukraine, and the two ministers confirmed their continued collaboration.
She added that Japan intends to further advance cooperation in security, digital, and cybersecurity measures. Kamikawa also stated that Japan intends to revitalise intellectual, cultural, and people-to-people exchanges through the “Next-Generation Co-Creation Partnership: WA Project 2.0” and exchange programmes, including JENESYS (Japan East-Asia Exchange for Students and Youths).
Japan stands out as Cambodia’s top donor country, having provided $1.2 billion in official development assistance since 1992.
According to Heng Ratana, Director-General of CMAC, Japan has been playing an exceptional role in helping Cambodia obtain advanced modern technology for clearing landmines as well as training deminers. For instance, Japan last year approved a grant of over $1.39 million for the clearing of cluster munitions, landmine and unexploded ordnance (UXO) in the country.
“Japan will also provide nearly $14 million to build the world’s largest anti-personnel mine-shaped museum and a mine action training centre in Siem Reap and Kampong Chhnang provinces,” Ratana added.
“Thanks to Japan’s assistance, Cambodia has grown to become a country that is even able to help other countries solve their landmine issues.”
Yang Peou, Secretary-General of the Royal Academy of Cambodia, said the visit by the new Japanese Foreign Minister will open more doors for more positive cooperation between the countries and unconditional assistance from Japan.
“Japan, as a great friend of Cambodia, has helped the Kingdom in every sector,” he said. “Even regarding politics, especially elections, Japan has never expressed any doubt or concern over the democratic process in Cambodia.”
“We hope that through the visit, both countries will discover more paths for cooperation, either bilateral or multilateral,” Peou added.
A veteran politician with an impressive résumé, Kamikawa’s academic background includes the University of Tokyo and Harvard University’s John F. Kennedy School of Government. She also served as a policy staff fellow for then-US Senator Max Baucus. In her political career, she was Japan’s Justice Minister three times and Minister of State for Gender Equality and Social Affairs.
In September 2023, Kamikawa became Japan’s first female Foreign Minister in 20 years. Since her appointment, she has demonstrated her diplomatic skills through several high-profile overseas visits, including to the Middle East, Ukraine, and a tour of Europe and North America. In January this year, Kamikawa launched a new “Women, Peace, and Security (WPS)” task force to address gender-inclusive security issues. While maintaining Japan’s long-term foreign policy stance as a proactive contributor to peace, her energetic diplomatic efforts have brought her significant international recognition.
Exports in the information and communication technology (ICT) sector in May jumped by over 30 percent for the second consecutive month.
According to the ICT ministry on Sunday, ICT shipments totaled 19-point-05 U.S. dollars last month, up 31-point-eight percent from a year earlier.
The on-year growth, which rose to 33-point-eight percent in April, has stayed above 30 percent for the second straight month.
Exports of semiconductors increased 52-point-four percent on-year, while shipments of displays rose 15-point-three percent and mobile phones increased ten-point-eight percent.
By country, exports to China jumped 35-point-three percent on-year, while those to the United States and the European Union rose by 20-point-seven and 21-point-three percent, respectively.
ICT imports also increased two-point-four percent on-year to eleven-point-48 billion dollars, resulting in a trade surplus of seven-point-57 billion dollars.
The government announced it will reduce fuel tax cuts from next month.
According to Finance Minister Choi Sang-mok on Monday, the fuel tax cut will be extended until August 31, but the tax rate will be slightly adjusted beginning on July 1.
The tax cut rate for gasoline will be adjusted from the current 25 percent to 20 percent, while the tax rate cut for diesel and liquefied petroleum gas(LPG) will be adjusted from the current 37 percent to 30 percent.
This means consumers will pay roughly 40 won, or around three U.S. cents more per liter of gasoline and diesel, while LPG users will pay 12 won or less than a cent more per liter.
Minister Choi said the government will decide whether to extend the fuel tax cuts by considering inflation and oil price trends after August 31.
Robert Bosch GmbH, a parent company of Bosch Cambodia Co Ltd and a world-leading engineering and technology firm headquartered in Germany, agreed to send a regional envoy to examine the possibilities of opening its factory in the Kingdom.
The commitment was made on Thursday during the meeting between Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC) and Alexander Weichsel, Commercial Plant Manager of Bosch in Nuremberg, Germany.
The Deputy Prime Minister is on a mission trip to the European Union (EU), leading the delegation to attract foreign investments into the Kingdom’s priority sectors from June 9-18.
During the discussion, Chanthol told Weichsel that the Royal Government of Cambodia (RGC) encouraged the private sector to explore investment opportunities that emerged in the country including agriculture, agro-industry, automobiles, electronic, renewable energy and tourism industries.
Noting the company’s potential, he urged Weichsel to consider choosing Cambodia as a prime location to expand the production chain, supplying to other Southeast Asia countries.
The Bosch Manager gave a positive response, promising to send the company representative based in Singapore and Vietnam to examine in detail aimed at opening the new factory in the Kingdom.
Later in the day, the Deputy Prime Minister also met Christiane Riefler-Karpa, Managing Director of Memmert GmbH, a company developing and manufacturing laboratory equipment.
During the meeting, the Mememrt working group presented their business activities and the production sites in Southeast Asia countries, modernising the art of production facilities to manufacture the appliances economically and in an environmentally friendly manner
Later the Managing Director guided Chanthol and the delegation to inspect the factory and the production hall in which the technology used by the company did not harm the environment.
Memmert GmbH is also a leading company in the development and production of high-quality laboratory equipment with over 90 years of experience and currently exported to over 160 countries around the world.
The mission trip to Germany was accompanied by Suon Sophal, Deputy Secretary General of the Cambodian Investment Board (CIB) of CDC, Hun Lak, Secretary General of the Cambodian Oknha Association (COA), Kuon Thida, President of Orienda International Hospital and Peou Rithjayasedh, Deputy Secretary General of the Ministry of Economy and Finance.
Ly Khun Thai, Vice President of the Cambodia Chamber of Commerce (CCC) told Khmer Times, “Germans generally invest in projects that have a clear master plan such as a suitable location for the project implementation, the competitive market in the industry and research on future risks.”
He said Khmer businessmen who want to operate their business along with Germans should prepare a clear development plan so that foreigners have the confidence to cooperate and invest in those projects.
Unionized workers at Samsung Electronics collectively used their annual leave to take the day off on Friday, after declaring their intention to take a joint leave of absence for the first time in the company's history.
The collective action is led by the tech giant's largest National Samsung Electronics Union(NSEU), which has a membership of over 28-thousand, amounting to 22 percent of the total workforce.
The union, meanwhile, has not revealed the exact number of members taking part in Friday's group action, as it said it wanted the members’ participation to be voluntary.
As labor and management had engaged in negotiations, including over wages, without progress since January, the union secured the right to take the collective action through a members’ vote, before announcing the planned strike on May 29.
Friday's group action, however, will not likely have an adverse impact on Samsung's production lines, as many workers were reportedly expected to take Friday off to enjoy a long weekend starting from Thursday's Memorial Day.
The importance of STEM education in Cambodia was underlined in a meeting between JICA and the Ministry of Education, Youth and Sports last week in Phnom Penh.
Om Romny, Secretary of State for the Ministry received the JICA delegation led by Vice Chief Representative of JICA Agency in Cambodia Miura Yuriko on May 30.
The courtesy meeting dwelt upon the long-term cooperation between the two countries in the area of technical education. The two sides pledged to constantly strive to improve relations and cooperation through the implementation of a variety of technical cooperation projects in the Kingdom. In particular Information and Communication Technology (ICT) cooperation projects would be given high priority.
The Secretary addressed the meeting detailing the progress made in the sector of education. He said the progress development of the STEM Education Program in high schools, strengthening the abilities of the teachers of STEM, promotion of ICT education in high schools and continuation of strengthening of educational databases were impressive.
Developing a workforce skilled in STEM is essential for structural transformation and sustainable economic growth in Cambodia, said Daiju Aiba, JICA Expert, National Bank of Cambodia to Khmer Times.
The country needs to transition from light manufacturing to heavy manufacturing industries, which requires an increase in skilled workers in STEM fields. Moreover, STEM education equips students with the skills needed to compete in the global job market, making Cambodia more attractive for foreign investments.
Speaking about the ties between the two countries, Daiju said that Japan has provided significant technical and financial assistance to Cambodia, including constructing teacher education colleges to improve teacher quality and providing assistance to the Institute de Technologie du Cambodge to enhance higher education in STEM. Given Japan’s expertise in ICT education, there is potential for collaboration to introduce and expand ICT education in Cambodia.
The biggest challenges in the education sector are equity and quality. Introducing ICT could improve access to quality education regardless of location or socio-economic status. Additionally, like many other developing countries, Cambodia faces low overall quality in higher education and limited budget allocation for universities.
Further collaboration with Japan could help improve the quality and equity of education in Cambodia. ICT education is one area where Cambodia can significantly benefit from Japanese expertise.
However, from Daiju’s perspective, there is a need for more focused assistance on higher education. Enhanced support in this area could improve the quality of STEM education (including social science) and contribute to economic growth.
