Rebuilding Cambodia: Cultivating a New Generation of Women Leaders
Showing posts with label khmer economy. Show all posts
Showing posts with label khmer economy. Show all posts
Tuesday, August 25, 2009
Cambodian intellectual property law to draw drug firms: govt official
PHNOM PENH, Aug 25, 2009 (Xinhua) -- A senior Cambodian Commerce Ministry official said he hopes a draft law easing intellectual property restrictions on imports and exports of essential medicines will encourage major manufacturers of generic drugs to set up operations in Cambodia, local media reported on Wednesday.
The Law on Compulsory Licensing for Public Health will be submitted to the Council of Ministers "soon" and is expected to be passed by the National Assembly by the end of this year, Var Rath San, director of the Ministry of Commerce's Department of Intellectual Property Rights, which drafted the law, was quoted by the Phnom Penh Post as saying.
The law would bring Cambodia into line with the World Trade Organization (WTO) regulations allowing developing countries to bypass patents when importing and exporting drugs used to treat serious diseases such as malaria and HIV.
"Hopefully, foreign investors and large foreign pharmaceutical firms that are not eligible to produce generic drugs at home will come to set up factories to produce generic drugs for local and overseas pharmaceutical markets," Var Rath San said.
The WTO's 1995 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) allows developing countries to issue a compulsory license to drug manufacturers, allowing them to produce a patented drug without the consent of the patent owner.
A "proper fee" must be paid to the patent holder, but the fee is determined by the government according to its ability to pay.
Ministry of Health Secretary of State Chou Yin Sim said the law will help expand the pharmaceutical manufacturing sector in Cambodia.
The Law on Compulsory Licensing for Public Health will be submitted to the Council of Ministers "soon" and is expected to be passed by the National Assembly by the end of this year, Var Rath San, director of the Ministry of Commerce's Department of Intellectual Property Rights, which drafted the law, was quoted by the Phnom Penh Post as saying.
The law would bring Cambodia into line with the World Trade Organization (WTO) regulations allowing developing countries to bypass patents when importing and exporting drugs used to treat serious diseases such as malaria and HIV.
"Hopefully, foreign investors and large foreign pharmaceutical firms that are not eligible to produce generic drugs at home will come to set up factories to produce generic drugs for local and overseas pharmaceutical markets," Var Rath San said.
The WTO's 1995 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) allows developing countries to issue a compulsory license to drug manufacturers, allowing them to produce a patented drug without the consent of the patent owner.
A "proper fee" must be paid to the patent holder, but the fee is determined by the government according to its ability to pay.
Ministry of Health Secretary of State Chou Yin Sim said the law will help expand the pharmaceutical manufacturing sector in Cambodia.
Monday, June 29, 2009
If Thailand reserves the rights to PV listing, Cambodia also has reserved rights on Thai occupied Khmer-provinces
PM: Govt to Reserve Rights on Opposition to Preah Vihear's World Heritage
30 June 2009
Thai ASEAN News Network
Prime Minister Abhisit Vejjajiva gave an interview at the Civil Service Commission Office yesterday, clarifying the Deputy PM Suthep Thaugsuban's interview with regard to his meeting with Cambodia's PM Hun Sen, in which the Deputy Prime Minister commented that the Preah Vihear Temple controversy is like a nightmare between the two countries.
The PM said that the dispute must not become an issue that affects the collaboration between the two countries now or in the future.
He added that the mechanisms of this settlement are based on each party's standpoint, which stem from past actions.
Abhisit also mentioned that during Suthep's visit to Phnom Penh, there were no discussions regarding the Preah Vihear Temple, as both the Thai and Cambodia government have acknowledged past disputes and feel that they should not affect current and future actions.
The PM reiterated that the settlement would continue peacefully and according to the agreements made in the Memorandum of Understanding signed at the Joint Boundary Commission. He warned that, therefore, we should not fall victim to those who are trying to create conflict.
When asked if this means that Thailand will drop the issue and concede to Cambodian wishes, the PM said that his standpoint remains the same, which is preventing UNESCO and other countries from getting involved in land disputes between Thailand and Cambodia.
He said that he believes that a third party is trying to exacerbate the conflict, adding that despite this, there is an understanding between the countries and two countries still maintain good relationship.
He reaffirmed that Thailand remains firm in its position of preserving its rights to oppose the registration of the Preah Vihear Temple.
The PM said that there was no plan to use force in the area and believes that cautious actions should be taken regarding this controversy because it is a sensitive case.
The Natural Resource and Environment Minister, Suwit Khunkitti has been assigned to deliver a petition to the World Heritage Committee of the United Nations Educational, Scientific and Cultural Organization asking for a revision on the matter, as the organization's decision could jeopardize the peace and relationship between Thailand and Cambodia.
Suwit is expected to report to the PM when he returns. In the mean time, the World Heritage Committee is well aware of the situation and have agreed to reconsider the procedures; but the process has been postponed to the beginning of 2010.
Further, the PM also said that there has been no report that the Thai military force will withdraw from the Thai-Cambodia border, however, the act was created under a negotiation framework that has been discussed by many related committees.
Thursday, June 11, 2009
Cambodia: 40% of children between 7-17 involved in child labor
11 Jun 2009
Source: ChildFund Australia
Website: http://www.childfund.org.au
In Cambodia, 40% of all children aged between 7-17 years are engaged in some form of child labour - work that is defined as undesirable for children or potentially injurious to their wellbeing.
While Cambodia has enjoyed a period of economic growth during the last ten years, poverty remains widespread, and many families must supplement their household income through the earnings of their children. The global financial crisis has exacerbated the problem with even more families forced to rely on earnings from their children.
Over one-third of families are still forced to survive on less than one dollar a day, and most children in Cambodia suffer some level of malnutrition, enough to cause at least moderate stunting of their growth. Improved economic conditions have also created greater inequalities in society - widening the gap between the rich and poor.
ChildFund Australia CEO Nigel Spence says: "For most families, sending a child out to work is not a voluntary choice - parents regret having to remove their children from school, and worry about the dangers they face. But the additional income is often the key to survival for the whole family."
While the majority of Cambodian children living in rural areas perform agricultural tasks on the family farm, or participate in household duties, children involved in child labour face much greater risks. The salt production industry, fishing sector, brick factories and plantation work are environments where children are known to be subject to abuse and exploitation.
ChildFund Cambodia country director Carol Mortensen adds: "The use of children from rural areas as extremely poorly paid domestic servants in provincial towns and cities is common. Some receive no pay at all, but are simply given shelter and food. This form of labour can be very risky due to the vulnerability of such children to various forms of abuse, including violence and sexual exploitation."
Preventing child labour
ChildFund is tackling the incidence of child labour with preventative strategies. The central goal of ChildFund's programs is to encourage school attendance for as long as possible.
Carol explains: "Most Cambodian children really want to attend school, at least to primary school level. And those attending school are, by definition, unavailable for child labour. The longer children remain at school and the higher the level of formal education they reach, the greater their chances of avoiding exploitative labour and finding decent employment in their adult life."
In Svay Rieng, ChildFund Cambodia is addressing the child labour problem through its Voices of our Children project. This increases attendance at school by improving the quality and accessibility of schools, ensuring schools are safe places to learn, improving play and recreation facilities and increasing the relevance of curriculum and learning through teacher training.
ChildFund also recognises that young people not in school are particularly vulnerable to exploitative forms of child labour. ChildFund's Youth for Development programs are teaching practical lifeskills, providing small business training and assistance in establishing livelihoods such as fish farming, improved rice growing, animal husbandry and ceramic pot making.
Girls and boys participating in the project learn about money management and business planning, take out micro loans and establish small businesses which will assist their families and build their own confidence and skills as decision-makers.
Cambodia asked America to cancel $300 million debts
MP Cheam Yeap (L) and MP Sik Bun Hok (R).
Source: Khmer Sthapana newspaper
Reported in English by Khmerization
A delegation of the Cambodian members of parliament has asked the U.S government to forfeit $300 million of debts that Cambodia owed since the early 1970s, reports Khmer Sthapana.
A delegation led by Mr. Cheam Yeap, an MP from the ruling Cambodian People's Party, visited America from 30th May t0 8th June and has asked the officials from the U.S State Department to cancel the debts which were owed by the Lon Nol regime since 1972. The U.S officials have told them that the request will be passed on to Secretary of State Hillary Clinton for consideration.
Mr. Cheam Yeap said that the original debt was $160 million but due to compounded interests for the last 37 years, the debts have doubled to $300 million.
During the 1980s, under the Heng Samrin regime, Cambodia had borrowed about $1,000 million from Russia. Cambodia had already asked Russia to cancel that debt, but so far has not received an answer from the Russian government yet.
Cambodia was said to be heavily in debted to China as the Khmer Rouge regime was said to have borrowed heavily from the Chinese government during their 3 year-rule in the 1970s.
Tuesday, May 12, 2009
Israel sends first economic attaché to Cambodia
05.12.09
Navit Zomer
Israel Money
The Ministry of Industry, Trade and Labor has opened Israel's first economic mission in Cambodia's capital of Phnom Penh, under the charge of the economic attaché in Thailand, Tzahi Selzer.
During May a first Israeli delegation of telecommunications companies visited the Southeastern Asian country. Some 15 companies took part in the delegation, including such high profile names as ECI, Gilat and Comverse, whose representatives met with top local government officials.
Simultaneously, a Cambodian agricultural delegation came to Israel last week to participate in the Agritech agricultural exhibition in Tel Aviv.
According to Selzer, Cambodia is mainly interested in Israeli companies involved in irrigation technologies, agriculture, infrastructure and medical devices.
Friday, May 1, 2009
$4 million from Japan to sustain corruption at the Cambodian side of the ECCC
Japan donates $4 million to Khmer Rouge tribunal
Friday, May 01, 2009
By SOPHENG CHEANG
The money will be used to offset a salary shortfall for 251 court staffers until at least the end of the year, tribunal spokesman Reach Sambath said. The court has been troubled by political wrangling and allegations that some Cambodian officials were demanding kickbacks from people trying to secure jobs with it.
The tribunal is tasked with seeking justice for atrocities committed by the Khmer Rouge during their four years in power in the late 1970s. An estimated 1.7 million Cambodians died under the radically communist regime from forced labor, starvation, medical neglect and executions.
"The donation arrived on time since the Cambodian side of the court was running out of budget. We really appreciate what the Japanese government has done," Reach Sambath said.
The donation comes as Kaing Guek Eav, alias Duch, is being tried by the tribunal for crimes against humanity, war crimes, murder and torture.
The 66-year-old Duch (pronounced Doik) commanded the Phnom Penh prison, where as many as 16,000 men, women and children are believed to have been tortured before being sent to their deaths. Only a handful survived.
Four other former Khmer Rouge leaders, aging and infirm, are being held for trial on charges of crimes against humanity and war atrocities. The are likely to be tried in the next year or two.
The tribunal operates under the joint administration of Cambodia and the U.N., which have separate budgets. In January, Japan gave $21 million to the U.N. side of the operation.
In March, Japan donated $200,000 to the Cambodian side for that month's payroll.
"Japan places a great emphasis on the progress of the Khmer Rouge tribunal, as it believes that this process will promote peace, democracy, the rule of law and good governance in Cambodia," a statement from the Japanese Embassy said.
Tuesday, April 28, 2009
As Losses Mount, Plans To Help Economy Emerge [-Where's that loud mouth PM who said that Cambodia will not be affected by the economic crisis?]
Kong Chandararoth, president of the Cambodian Institute of Economic Study and Development.By VOA Khmer, Reporters
Reports from Phnom Penh & Washington
28 April 2009
Cambodia’s four main economic drivers have sustained multi-million dollar losses so far this year, despite insulation from the financial markets, a leading economist said Monday.A report released by the International Labor Organization released Monday shows losses of $280 million in garments, $260 million in tourism, $180 million in agriculture and $45 million in construction.
Despite those losses, Cambodia remains somewhat insulated from the global financial crisis, said Kong Chandararoth, president of the Cambodian Institute of Economic Study and Development.
“Our country is not close to the financial market, so that does not have an impact as serious as other countries,” he said, as a guest on “Hello VOA.”
Cambodia’s agriculture has also made the global financial downturn easier that industrialized countries, he said.
Organizations like the International Monetary Fund and Asian Development Bank have warned that Cambodia’s economy will shrink this year, thanks to the financial crisis.
However, Kong Chandararoth said such predictions were “too dark about Cambodia,” and he predicted economic growth around 5 percent for 2009.
Cambodia’s situation is further different from other countries, he said, because it does not have a stock exchange or other financial markets, which have been hard-hit by the collapse of the US financial market.
Meanwhile, the government has prepared a package to restore the economy, including tax exemptions, tourism promotion, and help for construction, agriculture, garment factories and other investments.
The government announced Tuesday it will release $25 million to the agriculture and garment sectors, in an effort to mitigate the effects of the global downturn.
The money—$18 million to agriculture and $7 million to garments—will be used to increase farm production and help train people who have lost their jobs thanks to the slowdown.
Government officials made the announcement during the semi-annual donors meeting on Tuesday.
Thursday, April 2, 2009
Finance minister rejects ADB's growth forecast
Finance Minister Keat Chhon rejected independent growth projections for 2009, saying that the government’s policies can lead to a better economic performance. (Photo by: TRACEY SHELTON)Thursday, 02 April 2009
Written by Chun Sophal
The Phnom Penh Post
GDP GROWTH 2009Cambodian government dismisses Asian Development Bank’s latest GDP growth prediction of 2.5 percent for this year as too pessimistic
- Government: 6.5 percent
- ADB: 2.5 percent
- World Bank: -0.5 percent
- IMF: -0.5 percent
- EIU: -3 p
- 2008: 6.5 percent
THE Cambodian government has rejected the Asian Development Bank's latest economic forecast of 2.5 percent GDP growth this year, saying that a strong agricultural and informal sector will lead to growth of more than 6 percent.
"I think it is hard for [the ADB] to be fortune tellers, and we hope that Cambodia will see higher economic growth because the government is walking on the right path to develop the country," Finance Minister Keat Chhon said Wednesday.
The government has rejected major independent forecasts on 2009 growth, including those of the International Monetary Fund (IMF), the World Bank, the ADB and the Economic Intelligence Unit (EIU).
The EIU forecast a 3 percent contraction, the IMF and World bank separately predicted a 0.5 percent contraction, and the ADB projects 2.5 percent growth. Analysts from all four organisations agree that a slowdown in garment sales, construction and tourism will drag down 2009 growth.
Keat Chhon told reporters outside the National Assembly on Wednesday that ADB and IMF reports were unacceptable and that their estimates failed to account for agricultural growth and the country's informal "non-system" economy.
"I am determined to make cambodia’s … growth higher than the forecasts."
"We have big potential for our non-system economy, and we believe that it can help Cambodia see higher growth than the ADB and the IMF forecast," Keat Chhon added.
Agriculture to stay strong
Agriculture is expected to be the one bright spot for the year, and the ADB explained that its more optimistic forecast for productivity growth is because its analysis puts a greater emphasis on the sector.
Agricultural yields are expected to increase in 2009 as irrigation and infrastructure projects are completed. The government and agriculture organisations have also made headway establishing new markets for Cambodian agricultural products and attracting new foreign investment to the sector.
Government forecasts
The Cambodian government's latest prediction was that growth would hit 6.5 percent in 2009, but the finance minister said that figure is under review pending first-quarter results for the country.
"I am determined to make Cambodia's economic growth higher than the forecasts, and I won't let the country decline into chaos because the government has tools ready to move forward," Keat Chhon added.
Eric Sidgwick, the ADB's senior country economist for Cambodia, had no response to the government's latest statement, but said that the ADB and the government had "very good relations".
ADB country director Arjun Goswami said Tuesday that the Cambodian government is coping well with the crisis.
"There is an understanding of the crisis and what needs to be done.... This is a very difficult time for all organisations, including the Cambodian government," Goswami said.
The ADB also predicted that regional growth would slow to 3.4 percent in 2009 on lower exports.
Monday, March 23, 2009
Progress in Cambodia?
Tuesday, March 24, 2009
Opinion by C. Sann
The truth of the matter is Cambodia is truly developing into the future. However, they sacrificed locals in achieving them. It's a sad fact of reality that the people are powerless when confronting the government. If any type of injustices that people would bring up about the government it will be seriously denied resulting in a number of massive killings to the people.
Everybody questions why investigation regarding deaths related to assassination of journalists or opposition members or even celebrities always lead to a void. A void where nobody will be able to find an answer. The reason why this void exists is because it involves a high ranking government official. And, any attempt to bring this official to justice would be death. For the Cambodian people, this is a scary thought. Their lack of education, and awareness will mute them from ever bringing any type of injustices from the government out to the open. Every Cambodian student in the USA must be educated to know the history of Cambodia so we can slowly bring Cambodia system to par with many other democratic nations.
Cambodia Seeks Trade, Export Development [-It's about time!]
By Chun Sakada, VOA Khmer
Original report from Phnom Penh
23 March 2009
The project is being financed by the European Commission, the Danish International Aid Agency and the UN Industrial Development Organization.
The money will be spent according to a direction set by the government, Cham Prasidh said. The project will be based on three pillars: solving cross-cutting issues; promoting of export production and a focus on services; and improving institutional capacity.
“This fund will be managed in accordance with the World Bank’s procurement procedures and financial procedures,” said Qimao Fan, Cambodia’s director for the World Bank, which is administering the project.
The European Union, one of Cambodia’s trade partners, will promote different products for Cambodia to export, said Rafael Dochao Moreno, charge d’affaires for the European Commission in Cambodia.
“This project will build the capacity of Cambodia to be able to promote the different products and production exports to the EU,” he said.
Yim Sovann, spokesman for the opposition Sam Rainsy Party, said Monday the project would be important for the promotion of Cambodian agricultural exports. However, he said he had little confidence that corruption would be controlled in the project.
KOTRA and Korean Air look to boost flagging visitor numbers
| Written by Kay Kimsong | |
| Monday, 23 March 2009 | |
| New Korean trade and investment office in Phnom Penh to work out ways to halt the precipitous drop in South Korean travellers to the Kingdom  BLOOMBERG Korean Air has seen passenger numbers on its Cambodia routes decline. |
Vietnam shook the trend with arrivals in January up 27.06 percent year-on-year to 22,875. The surge meant the country overtook South Korea as the top market for tourist arrivals.
Sokhara Ted Tan, deputy general manager of the airline's sales office in Phnom Penh, said Korean Air had been hit hard on its twin routes to Cambodia as tourist arrivals dwindled in the wake of the global financial crisis.
"This year is a difficult one, but by 2010 we hope the economy will be recovering," he said. Korean Air runs seven flights a week between Cambodia and Incheon with routes from Phnom Penh and Siem Reap.
Visiting China official talks rice mills: ministry
| Written by May Kunmakara | |
| Monday, 23 March 2009 | |
| VISITING Cambodia last week, the governor of China's Guangxi province, Ma Biao, said Chinese investors were eyeing Cambodia's undeveloped rice production sector, according to a Foreign Ministry official. |
Koy Kuong, an undersecretary of state at the ministry, said the Chinese governor said he would encourage more Chinese companies to invest in rice mills in Cambodia.
Cambodia's agriculture industry has long-suffered from a shortage of mills to process and store its sizeable rice yields. With insufficient capital, many farmers are forced to sell raw paddy - earning little profit - or even let crops go to waste due to poor storage capacity.
The visiting official signed a memorandum of understanding to promote trade between his province and Cambodia, Koy Kuong said.
Yaing Saing Koma, president of the Cambodian Centre for the Study and Development of Agriculture, said Cambodia lacked the milling capacity it needs to cash in on exports. Insufficient capital to purchase raw paddy from farmers was another deficiency, he added.
Sunday, March 22, 2009
Global downturn threatens Cambodian garment success
A Cambodian garment worker inspects checks children's clothing at a factory in Phnom Penh February 26, 2009. Many garment factories in Cambodia are closing as shoppers in the United States, Europe and elsewhere cut back on clothing purchases due to the global financial crisis. Picture taken February 26, 2009. (All photos: REUTERS/Chor Sokunthea)
Cambodian garment workers sew at a factory in Phnom Penh February 26, 2009. Many garment factories in Cambodia are closing as shoppers in the United States, Europe and elsewhere cut back on clothing purchases due to the global financial crisis. Picture taken February 26, 2009.
Cambodian garment workers work at a factory in Phnom Penh February 26, 2009. Many garment factories in Cambodia are closing as shoppers in the United States, Europe and elsewhere cut back on clothing purchases due to the global financial crisis. Picture taken February 26, 2009.
Cambodian garment workers from a closed Malaysian-owned factory inspect sewing machines for auction in Phnom Penh February 26, 2009. Many garment factories in Cambodia are closing as shoppers in the United States, Europe and elsewhere cut back on clothing purchases due to the global financial crisis. Picture taken February 26, 2009.
Cambodian garment workers walk to a factory in Phnom Penh March 2, 2009. Many garment factories in Cambodia are closing as shoppers in the United States, Europe and elsewhere cut back on clothing purchases due to the global financial crisis. Picture taken March 2, 2009.
Cambodian garment workers have lunch after work near a factory in Phnom Penh March 2, 2009. Many garment factories in Cambodia are closing as shoppers in the United States, Europe and elsewhere cut back on clothing purchases due to the global financial crisis. Picture taken March 2, 2009.
Cambodian garment workers from a closed Malaysian-owned factory sit in their rented house while they wait for their pay in Phnom Penh February 25, 2009. Many garment factories in Cambodia are closing as shoppers in the United States, Europe and elsewhere cut back on clothing purchases due to the global financial crisis. Picture taken February 25, 2009.
New WiMAX network in Cambodia: real revolution or lark’s lure?
Phnom Penh (Cambodia), 26/02/2009. A Cambodian Buddhist monk is reading international news on the Internet.
©Vandy Rattana
Mid-February, the news was broken and circulated by most economic media in France: Alcatel-Lucent was chosen by Chuan Wei to set up a national WiMAX Rev-e network in Cambodia. The new technology, somehow the big sister of WiMAX Rev-d already operational in Cambodia and used by many Internet Service Providers (ISPs), would not just allow a simple home connection in a restricted perimeter of a few hundred yards – like Wi-Fi (wireless transmission) in a slightly more powerful version – but would also allow users to access the Web via a high-speed wireless connection, and move around, for example out in the street, thanks to a mobile phone or a laptop computer. Thinking with optimism, Chuan Wei even plans to gather a million subscriptions in the space of two years, starting with the launching of services in mid-2009. The thing is, WiMAX Rev-e seems idyllic and some Internet specialists in Cambodia prove more than cautious towards this new telecommunications technology. For instance, having to equip oneself with a modem or the appropriate equipment that would support WiMAX technology might not be on the plus side of the newcomer. Besides, some point out that this technology might be difficult to set up if in the end, the connection is bound to be worse than regular DSL or fibre-optic broadband Internet. On a developing and much competitive market, the struggle affects technologies as much as the world of communications.
On February 17th 2009, outside the GSMA World Mobile Congress in Barcelona (Spain), the French telecommunications corporation ALU Alcatel-Lucent announced that Chuan Wei selected them for the deployment of the first national WiMAX Rev-e network in Cambodia. The French specialist in telecommunications will then be in charge of putting up all the antenna towers allowing the relay of micro-waves that will eventually provide high-speed wireless Internet. ALU became a specialist in such missions after taking part in numerous operations in developing countries. Chuan Wei Ltd, created in 2008 by Thaï Boon Roon Ltd Conglomerate, is the only one who obtained the necessary operating licenses from the government. The company will happily operate the service and forecasts the launching of its services in the Khmer Kingdom in mid-2009, and plans to reach no less than a million subscribers in two years!
The bet is very ambitious, to say the least. “I am curious to see where they’ll find them”, says Xavier Lafut, the director of the company AsiaForm , specialising in the development of communications solutions. In the country, there are currently about 20,000 subscribers and some 150,000 people use Internet cafes. To me, the number of people who could potentially sign up is more around 200,000 people, no more than that...”
Optimism is the rule for last-minute WiMAX believers
However, one cannot but notice that optimism is the rule at ALU Alcatel-Lucent and Chuan Wei. “Being the first provider to deploy a national WiMAX Rev-e network in Cambodia, Chuan Wei will contribute to the future of communications in the region. The network will considerably help the country’s economic growth by improving communications and allowing local and multinational companies to develop”, Chuan Wei president Alan Khov declared.
“We think that the market of wireless DSL will greatly develop within the next five years and more, all over the world, since close to 90% of WiMAX Rev-e subscribers will use that service by 2013”, said Mike Iandolo, president of Alcatel-Lucent’s wireless networks activities. It is true that at first sight, the offer looks tempting as anyone, thanks to WiMAX Rev-e, will be able to connect to high-speed wireless Internet from anywhere. “With its antenna towers, WiMAX Rev-e can reach a range of 50 kilometres and cover isolated zones, in big towns as in port towns. Installation is very easy since we can plant these towers anywhere. It is therefore ideal for a country like Cambodia”, ALU claims.
Mixed feeling among experts
“That is all very well to offer such a technology and it is true that from a distance, everything about it is appealing, but all the same, those services need to be accessible, i.e. you need to have the appropriate equipment”, Xavier Lafut says, without however trying to be a spoilsport. Indeed, one of the main objections to WiMAX development lies in users’ need to have a special modem or at least some equipment that is compatible with this new technology. In order to enjoy it fully, subscribers will either need a modem-type terminal box, conform to that standard, into which they will plug their computer (to transfer data or access the Internet) or their own mobile phone (to make calls via the VoIP technology (Voice over Internet Protocol)), or even via a specific USB flash drive which allows the use of a laptop computer in a nomad handheld mode.
Alcatel-Lucent is confident that the hurdles will not be too difficult to surmount: “It is planned that PCs sold in Europe and in the rest of the world will progressively integrate, in turn, a WiMAX chip, which will allow users to avoid the burden of equipment”. “For the time being, all PCs are far from having the WiMAX chip in them”, Xavier Lafut says. “Cambodians cannot afford those equipments. I think that the operator will have to provide it with the subscription for it to work out.” The possibility is not ruled out yet.
Mobile phones and WiMAX: an innovation in a not-that-near-future?
As for the use of WiMAX Rev-e on mobile phones, this idea still belongs to the future. Indeed, as it is the case for PCs, phones with a built-in WiMAX chip will be the only ones to be compatible with the WiMAX technology. “Most of the equipments for mobile phones, especially the MID (Mobile Internet Device) or UMPC (UltraMobile PC) ones are still just prototypes. They will be progressively available by late 2009 or 2010”, Xavier Lafut reckons. Just like for every new little state-of-the-art technological gem, this technology will most likely reach sky-high prices, which as a consequence might make it unaffordable to a wider majority of Cambodians.
“For WiMAX, development perspectives are severely limited by the lack of PCs as well as low purchasing power and the increase in the use of cellular services”, as explained by computing science expert Mark Heath , back in 2006, in a report released by the British research and consulting firm Analysys-Mason. Cellular telephony is a lot more appealing for most people living in this country, since phones are available at very good prices.”
Little reaction on the part of service providers
On the side of ISPs operating in Cambodia, comments are not on the agenda. Only one provider accepted to react on the topic, without citing his name. He has been in Cambodia for ten years and his manager says he is very doubtful as to the arrival of WiMAX Rev-e technology: “The national arrival of WiMAX Rev-e in Cambodia doesn’t worry me at all. First, I don’t understand how Alcatel-Lucent are going to install new antenna towers when it is now forbidden to build such infrastructures”, he explains. “This is non-symmetrical norm (256Kb/s upstream, 64Kb/s downstream), so it is bad for file sharing. Besides, it might interfere with the existing Wi-Fi network. Then, the problem of WiMAX is that it cannot support high speed, when the development of Internet services in the region requires 10Mb/s, which WiMAX cannot provide. Around 2011, the average need in terms of bandwidth will be 1Mb/s and in 2012, between 3 and 6 Mb/s. There again, it is an impossible mission for WiMAX. How will the world of enterprises possibly take interest in it if there are few possibilities like that? But this is what they are aiming at: 80% of Cambodian companies! Only a fibre optic network could allow such speed.”
What are the solutions for the Internet in the near future?
Today, many solutions do exist for all those who simply wish to surf the Web or access their email account. Many ISPs such as Online, Angkornet or Ezecom offer WiMAX Rev-d for limited use, since the coverage only applies to a few square kilometres. Today in Phnom Penh, any Internet user can find a subscription for about 40$, when the average subscription used to be 100$ per month last year. The latest provider in town is QB- they allow users, for 35$/month, to surf without any time limit. However, this offer is limited to private use and geographically concentrates on the centre of Phnom Penh.
When it comes to professional use... there’s the rub: “Today, decent connections – at least for professional use like in my own company, are those using fibre optic technology”, Xavier Lafut indicates. “Indeed, DSL depends on the existing phone network, which is a problem: recurring cuts, different protagonists on the helpline in case of connection problems... And current WiMAX solutions do not allow high-speed connections: WiMAX works on 512 Kb/s at the highest but more generally on 256 Kb/s.” Prices for these professional connections are about hundreds, if not thousands of dollars.
“The problem is that Cambodia does not have its own access point”, AsiaForm director details. “ISPs must buy their bandwidth in Thailand or in Vietnam, which is very expensive. Today, connections in Cambodia are ten or fifteen times more expensive than in other countries in the region. For fares to go down again, there must also be more demand for wider bandwidth. In that way, ISPs will develop their network and speed will increase.” Most service providers are currently working on that and looking to expand their coverage zone and fibre optic network, but most remain quiet about future evolutions. WiMAX, fiber optic or DSL, it still seems a long way till Cambodia becomes an E-nation.
Friday, March 20, 2009
Cambodia tries alternative products to offset impact of financial crisis
"We still have potential in the agriculture sector for basic development," Khmer-language daily newspaper The Island of Peace quoted Suy Sem, Minister of Industry, Mine and Energy, as saying.
Besides, 548 large-scale factories and 2,800 small- and medium- sized ones can also help counter the crisis, he said.
These factories have employed 471,539 laborers, or 15 percent of the total labor force of the country, he added.
Meanwhile, the minister admitted that the crisis has seriously hurt Cambodia's garment industry, with 82 factories closed and some 50,000 workers unemployed so far.
As the kingdom's foremost pillar industry, garment exports increased by 7 percent on annual basis in the past years, but decreased by 2 percent in 2008, he said, added that the situation is compelling Cambodia to find alternative products to guarantee sustainable growth of its economy.
Garment exports used to account for 70 percent of the kingdom's annual export volumes.
The industry employed around 300,000 people and had over 300 factories nationwide at its peak times.
Thursday, March 19, 2009
SKorea expands presence
| Written by Kay Kimsong | |
| Thursday, 19 March 2009 | |
| New KOTRA office reflects increased economic relations with Cambodia, says South Korean official, as plans for presidential visit to Phnom Penh announced  Photo by: TRACEY SHELTON Hostesses at the new KOTRA office launch in Phnom Penh on Wednesday. South Korea said the new premises reflected its increasing business presence in Cambodia.KOREAN economic ties
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The announcement was made at the launch of the new Korean Business Support Centre in Phnom Penh, which Minpha Hwang, KOTRA's senior executive vice president, said reflected the sharp increase in South Korean investment.
"We are expanding our office in Phnom Penh because trade volume and investment have increased," said Minpha Hwang, adding that Korean investment in 2008 had risen by 50 percent compared to 2007.
He said that the Korean government sees Cambodia as an important investment destination and that the Korean Business Support Centre would aim to facilitate commerce between the two countries.
He estimated that more than 1,000 Korean traders and investors are currently operating in Cambodia.
"Everyday, Koreans are coming to Cambodia on holiday and for business ... we can cooperate with each other in every sector to create a strong relationship in areas such as agriculture, industry and natural resources," Minpha Hwang said.
He added also that the Korean and Cambodian economies were in a good position to recover quickly from the global economic slowdown.
Recovery prospects
"Manufacturing-based economies are stronger than economies based on services, and I have not heard of any Korean investment projects in Cambodia that have been cancelled or suspended," he said.
We can cooperate with each other ... to create a strong relationship.
Commerce Minister Cham Prasidh told Korean investors Wednesday that the planned visit by the South Korean president this year will pave the way for more trade and investment between the two nations.
Shin Sujoo, general manager of Korean Air, said he welcomed the planned Korea Business Support Centre in Phnom Penh and that he expects bilateral tourism to increase.
The Cambodia-South Korea Free Trade Agreement allows duty-free access for 11,261 categories of Cambodian goods, but Cambodia has yet to capitalise on its export potential.
Increasing deficit
According to Commerce Ministry figures, Cambodia ran a US$214 million trade deficit with South Korea in 2008, making it the sixth-largest exporter to Cambodia.
In 2007, South Korean exports totalled $177 million, which meant a trade deficit for Cambodia of $172 million.
Korean investment in Cambodia grew from $172 million in 2006 to $828 million in 2007 and $1.257 billion in 2008, said a KOTRA statement.
Cham Prasidh also said that Seoul had imposed restrictions on some agricultural goods like bananas, pineapples, rice, beef, pork and fish to protect South Korean prices.
The commerce minister was nonetheless complimentary of South Korea's economic policies over the past 65 years that he said had led from ruin to prosperity in a relatively short period of time.
"Cambodia should learn from Korea and its recovery after World War II to become a strong economy in the region," he said.
Prime Minister Hun Sen is also scheduled to visit South Korea from June 1 to 2.
Falling rubber prices hit Cambodian plantations
| Written by Chun Sophal | |
| Thursday, 19 March 2009 | |
| Profit margins slashed as rubber price nosedives on world markets PLUMMETING prices are threatening Cambodia's once-booming rubber sector, with exporters reporting tight margins and declining international demand. |
Ly Phalla, director general, told the Post Wednesday that he expects prices to stay low because of falling tyre demand.
"I think the rubber price will not recover any time soon because the automobile industry has reduced production," he said.
He said that he does not expect a return to last year's soaring prices, which saw rubber hit a 54-year high.
"I am very worried about the decline in rubber prices and the drop in purchase orders," he said, but added that even with falling prices, farmers still favoured rubber over growing corn and cassava.
"The government still has a policy of encouraging rubber plantations because our rubber production is still small," he said.
"I think rubber farmers are willing to plant more trees if the price stays between $1,000 to $1,500 per tonne."
From now until 2015, the government will expand rubber plantation land to about 150,000 hectares from the current 100,000 hectares, Ly Phalla said.
In 2008, Cambodia exported over 40,000 tones of dry rubber, and this year exports are expected to reach 50,000 tonnes, and Ly Phalla said he hoped Cambodia would eventually produce over 100,000 tonnes.
The price of rubber will go up next year ... there are no other raw materials.
Cambodia's rubber harvests are set to double by 2011, as recently planted trees mature. More than 30,000 Cambodians are employed in the rubber sector.
Men Siphan, the deputy director general in charge of rubber plantations at the Ministry of Agriculture, said that rubber prices are still high enough for local farmers to earn a profit.
"Rubber was $450 per tonne in 1998, but farmers were still earning a profit even then," he said. "I think the decline will not influence agricultural development in the country, so rubber development will not be a problem."
He added that although there has been a decline in purchase orders and rubber prices, it has not seriously affected Cambodia because it was comparable to a decline in oil prices and other raw materials.
"I believe the price of rubber will go up next year because there are no other raw materials to replace rubber," Men Siphan said.
Rubber prices got a boost this week when the Chinese government announced it would buy 10,000 tonnes of the commodity to support prices.
Chan Sophal, president of the Cambodia Economic Association, said the decline in rubber prices will hurt rural incomes but that farmers would be able to profit at current prices.
"I think that the decline in rubber prices won't kill rubber farmers," said Chan Sophal.
Trade with US, Canada up
| Written by Nguon Sovan | |
| Thursday, 19 March 2009 | |
| Overall trade with North America climbed in 2008, but slowed in the final months of the year as the global crisis took hold, the Commerce Ministry says  BLOOMBERG A customer shops in a clothing store in Rosemont, Illinois. The United States is Cambodia’s biggest importer, primarily of garments, figures show.Selling to the West The Kingdom's top five export destinations based on 2008 figures:
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The US was Cambodia's No 1 export market, with US$2.04 billion, followed by Canada at $212 million and the UK at $158 million.
Total trade was up 4 percent and 39.6 percent for the US and Canada respectively, with UK trade down 4.3 percent.
On the flip side, Vietnam was the No 1 exporter to Cambodia at $988 million, adding up to a trade deficit of about $904 million.
China was No 2 at $784 million, with the Kingdom recording a trade deficit of about $775 million, the figures showed.
Cambodia's total exports were $3.35 billion, with imports of $4.42 billion. Total trade was up 11.8 percent.
Garments the key export
Thon Virak, deputy director general of the Directorate General of International Trade at the Ministry of Commerce, said Wednesday that garments made up the bulk of exports to the top-three countries.
"We exported mostly garments and shoes, and some handicrafts to those countries," said Thon Virak.
"Even though those countries are faced with the crisis, exports to US and Canada increased [in 2008] because the quality and price of our products is strong.
"They are buying more low-cost Cambodian garments instead of more expensive ones from other countries," he said.
Despite the sharp decline in garment sales in January this year, Thon Virak said he was still optimistic that exports could recover later this year as the sector homes in on the budget overseas market.
But garment manufacturers and government officials say that garment exports are down as much as 50 percent so far this year, compared with the same period in 2008.
