Investment meet zeroes in on key Russia projects
CAMBODIA is eyeing an expansion in trade with Russia as the two sides explore the possibility of negotiating a free trade agreement (FTA) and step up trade and investment cooperation.
This was the main topic discussed at a February 17 interinstitutional meeting held at the Ministry of Commerce ahead of the as-yet unscheduled second meeting of the high-level working group tasked with promoting Cambodia-Russia priority investment projects.
Chairing the meeting, ministry undersecretary of state Samheng Bora said there are five such priority projects – roof-tile and sewer-pipe manufacturing; Kamaz-branded truck assembly and supply chain services; solid-waste incinerator supply; the production of thermal insulation materials based on agricultural residual rice-hull and -straw biomass; and the supply of Gigabit Passive Optical Network (GPON) equipment for high-speed internet access.
“The Cambodia-Russia joint priority investment projects will provide new business opportunities for the private sector from both sides . . . further strengthening and expanding bilateral trade cooperation in more comprehensive terms,” he said.
Bora expressed hope that the upcoming high-level working group meeting would provide the direction necessary to begin FTA talks.
“We are supportive of and committed to actively taking part in the ... joint priority investment projects, and these will help promote economic development and improve livelihood standards of the two countries’ peoples through the transfer of technology and management techniques, as well as the creation of myriad job opportunities,” he said.
In a meeting with Economy and Finance Minister Aun Pornmoniroth in November last year, Russian ambassador Anatoly Borovik reiterated Moscow’s commitment to assist the Cambodian government in shoring up bilateral trade volume and alluring more investment to the Kingdom, highlighting the untapped potential of many sectors in Cambodia.
“Seeing the potential of Cambodia, many Russian companies, both large and medium, are interested in and looking for opportunities to invest in and do business in Cambodia. Going forward, the volume of bilateral trade between the two countries will see continued growth,” he said.
Commerce ministry spokesman Seang Thay previously said entering FTAs with trading partners is a government priority, adding that Cambodia and Russia are important trading partners with a long history.
“With a bilateral trade agreement in place, our trade volume will be better equipped to grow down the road,” he said.
The value of Cambodia-Russia trade clocked in at $63.81 million last year, rising by 15 per cent compared to 2019’s $55.36 million, the commerce ministry reported. Trade relations between the two countries remained strong overall, even as Covid-19 raged on.
MINISTER of Commerce Pan Sorasak on February 18 announced that he will attend the longdelayed Expo 2020 hosted by Dubai at the invitation of the UAE government.
The minister was speaking at a meeting of the interministerial committee tasked with organising and preparing for Cambodian participation in international exhibitions and trade fairs.
Kicking off on October 1 and lasting until March 31, 2022, Sorasak said the event will showcase products from across the world to about 25 million participants from 200 countries and international organisations.
According to Expo 2020, the event will be under the theme “Connecting Minds, Creating the Future” and will also have three subthemes – “opportunity”, “mobility” and “sustainability” – each with its own “district”.
Sorasak said Cambodia will build a two-storey pavilion – to be designed by Malaysia’s Pico International (M) Sdn Bhd – on 384.5sqm in the “Sustainability district”, adding that the ministry will bring agricultural products to the event.
“To attract the attention of visitors, the committee will finely decorate the [pavilion]
with Khmer architecture from across four periods – pre-Angkorian, Angkorian, LongvekOudong and Chaktomuk, or today’s era which has Phnom Penh” as the Kingdom’s capital, he said.
Hun Lak, director of Longmate Agriculture Co Ltd, which has invested $32 million in yellow banana plantations on more than 1,000ha in Kampot province’s Chhouk district, told The Post on February 21 that with the private sector’s support, the government and the ministry always bend over backwards to secure markets
for the Kingdom’s products, especially those in agriculture.
He affirmed that the ministry will bring those agro-industrial and agro-commercial crops that are flagged for their market potential, pointing out that Cambodia has directly exported fresh bananas to China for more than two years and will soon begin shipping fresh mangoes to the Asian giant.
“The more open the market, the better. This will boost exports and provide better opportunities for investors in the agro-industrial sector,” Lak said.
Cambodia Rice Federation secretary-general Lun Yeng said participation in the event offers an opportunity for the Kingdom to introduce its national wares to the greater international community.
Cambodian netted $62 million in exports to the UAE in 2017 – mainly garments and footwear, while imports were valued at $19.8 million, according to the latest figures from the ministry.
According to Expo 2020, the event was originally scheduled to be held between October 20, 2020 and April 10, 2021.