CDC gives nod to 16 projects worth $700M last month
THE Council for the Development of Cambodia (CDC) approved 16 capital investment projects last month totalling more than $700 million that are expected to create 11,414 local jobs.
The projects are mainly factories in the manufacturing industries of garments, textiles, bags, tyres, furniture, spare parts, grills, stationery and electrical appliances, but also include an international polyclinic, according to the CDC.
The investment capital behind the projects sums up to $702.5 million, but could range between $701.7 and $703.3 million as the CDC rounds each of its figures to two digits – creating a discrepancy in the final number.
Anthony Galliano, the group CEO of financial services firm Cambodian Investment Management, told The Post that the Kingdom has attained a record of unparalleled Covid-19 containment and achieved superior economic management and political stability despite the pandemic.
He said these are accomplishments that international investors who are seeking foreign direct investment destinations will notice and where Cambodia will score very high, given “trouble spots” in the region.
“Cambodia is now a pillar of political steadiness and robust economic growth and development, with consistent improvement in infrastructure, consistent upgrading of its workforce – which remains comparably inexpensive – and reducing electric costs.
“Given neighbouring countries that are undergoing turbulent times, Cambodia is shining as the momentum for the country is directionally positive for most checks for foreign investment.
“The industries entering are exactly what the Kingdom needs, manufacturing, medical, automotive and furnishings. This is recognition that Cambodia can now compete regionally for investment dollars in these sectors,” Galliano said.
Cambodia Securities Exchange vice-chairman Ha Jong-weon told The Post that in every economic circumstance, investors and entrepreneurs are always looking for opportunities.
He said Amazon.com Inc’s Jeff Bezos became the world’s richest man during the Covid19 pandemic as more people shifted towards online purchases.
Bezos was dethroned by South African-born entrepreneur Elon Musk as his net worth crossed $185 billion, numerous sources reported early in January.
Ha noted that as more people believe that the arrival of viable vaccines signals a quick end to the pandemic, new investment opportunities are coming in as well.
He claimed that hospitality, sanitation, technology and middle- to high-end products were some of the sectors and markets set for an upcoming boom as a result of Covid-19.
“$700 million valued projects approved by CDC is a good sign of economic recovery and [optimism] toward Covid-19. Since Cambodia is an emerging country, there will be more and more investment coming to the country. Meanwhile, the new Investment Law is [expected] to be effective soon.
“The law will attract more foreign investment and production in the country, since the companies do not need to pay taxes on production-input imports.
“The investment climate will be improved to fit with the current needs of the investors and industry 4.0 development. The law will also cut unnecessary spending and process and add incentives for local and foreign investors,” he added.
In 2019, the CDC approved $9.40 billion worth of investment projects, of which mainland Chinese investors accounted for $2.75 billion. Hong Kong ranked second at $912.55 million, while Japan took third with $298.84 million.
THE General Department of Vietnam Customs recently issued an action plan to implement Resolution 02/NQ-CP of the government to improve the ranking of the trading across borders index by 10 to 15 spots compared to 2019 in the ‘Ease of Doing Business’ rankings of the World Bank.
Resolution 02/NQ-CP aims to improve the business environment and national competitiveness by 2021. The department said that to effectively implement the resolution, it will carry out administrative reform.
Customs offices will continue to promote the reform of customs administrative procedures by putting people and businesses at the centre; ensure the efficiency of state management; and create a fair, open, convenient and transparent business environment to support people and businesses.
At the same time, the customs office will reduce and simplify business conditions; remove difficulties for businesses, shorten processes, modernise, and apply information technology in state management; reduce the time for implementing administrative procedures, ensure publicity, transparency and enhance the responsibility of state administrative agencies.
The customs agency has advised the Ministry of Finance to work with ministries and branches to comprehensively reform regulations on specialised management of import and export goods in accordance with international practices.
The department will continue to provide online public services at level 3 and level 4, aiming to apply 100 per cent of practical public services to people and businesses and help them restore production and business and overcome the negative impacts of the Covid19 pandemic.
The plan also aims to improve the efficiency of the National Single Window (NSW), the ASEAN Single Window; reform specialised inspection for import and export goods and facilitate trade benefits in the period of 2018-2020 and conclusions of the Chairman of the National Steering Committee on ASEAN Single Window and NSW.
At a conference of the customs agency, Deputy Minister of Finance Vu Thi Mai said this year was set to have many opportunities but also many difficulties and challenges.
Therefore, she suggested that the customs agency perform state budget collection and modernisation well.
In addition to striving to collect more than five per cent of the estimate assigned by the National Assembly of 315 trillion dong ($13.68 billion), the customs agency must continue to implement administrative procedure reform, modernisation, and facilitate trade and import-export activities to shorten the time and cost of goods clearance.
YEMEN’S Iran-backed Huthi rebels on February 28 claimed missile and drone strikes that targeted neighbouring Saudi Arabia overnight and threatened more attacks, as fighting in the grinding civil war escalates.
Huthi fighters have intensified operations against the kingdom as air strikes by the Saudi-led military coalition pound rebel positions in the north of Yemen, in a bid to stop their offensive to seize the government’s last northern stronghold of Marib.
Years of war have already pushed Yemen to the brink of famine.
Saudi Arabia – which has been backing the Yemeni government against the rebels since 2015 – on February 27 said it thwarted a Huthi missile that targeted Riyadh.
“The operation was carried out with a ballistic missile and 15 drones . . . targeting sensitive areas in the enemy’s capital of Riyadh,” said Huthi spokesman Yahya al-Saree, according to the rebels’ Al Masirah TV channel.
“Our operations will continue and will expand as long as the aggression and siege on our country continues.”
Fragments of the missile scattered over several Riyadh neighbourhoods, damaging at least one home but no casualties were reported, Saudi state-run Al Ekhbariya television said.
AFP correspondents in the Saudi capital reported hearing multiple loud explosions, with state television footage showing the night sky light up with a bright flash.
Separately, the coalition said it had intercepted six Huthi drones targeting the kingdom, including the southern cities of Khamis Mushait and Jizan.
Saree on February 28 claimed those attacks as well, warning residents in the region to “stay clear from all military airports and sites”.
The US on February 28 said it “strongly condemns” the Huthi attacks on population centres in Saudi Arabia.
“These attacks threaten not only innocent civilians but also prospects for peace and stability in Yemen,” said Department of State spokesman Ned Price.
The Huthis have escalated cross-border attacks on the kingdom even after the US delisted the rebels as terrorists, reversing a decision by the administration of former president Donald Trump.
The designation had been widely criticised by aid organisations, who warned it would hamper their efforts to alleviate a humanitarian crisis in Yemen.
US President Joe Biden halted support to Saudi offensive operations in Yemen’s war, which he called a “catastrophe” that “has to end”.
But he has also reiterated US support for Saudi Arabia in defending its territory.