Saturday, 20 March 2010

China Signed Three Commercial Agreements with Cambodia – Friday, 19.3.2010

http://cambodiamirror.wordpress.com/

via CAAI News Media

Posted on 20 March 2010
The Mirror, Vol. 14, No. 656

“The spokesperson of the Royal Government told Deum Ampil on 17 March 2010 that a visit by a Chinese delegation to Cambodia concentrates on stepping up commercial ties between both countries, and three memorandums of understanding were to be signed.

“The spokesperson of the Council of Ministers, Mr. Phay Siphan, said that a Chinese Deputy Prime Minister, Mr. Hui Liangyu [ 回良玉 ], visits Cambodia for three days from 17 to 19 March 2010. And the visit is not just to improve the already-good relationship with Cambodia, but also to expand commercial ties.

“Mr. Liangyu presided over the signing ceremony of agreements on agriculture, a sector that accounts for almost 27% of the country’s GDP. According to the announcement, another agreement to be signed is in the field of post and telecommunications between the Huawei Technologies of China and the Cambodian telecommunication system of CamGSM.

“It is seen that Cambodia has been successful in agricultural production in the last decade. Also, it is expected that the rice production of Cambodia for 2009-2010 will yield 7.286 million tonnes where 3.1 million tonnes are planned to be exported.

“In February 2010, the Prime Minister of the Kingdom of Cambodia, Samdech Hun Sen, stated that Cambodia plans to invest US$310 million, including a loan of US$240 million from China, to develop the irrigation systems in the country, a key factor to increase rice production for export.

“Many analysts said that paddy rice is a potential for Cambodian investment, but the opportunity to boost export remains weak, as Cambodia has not had sufficient irrigation systems for rice production.

“The Minister of Agriculture, Mr. Chan Sarun, said that the paddy rice cultivation might increase to 3.5 million hectares, while previously, rice was grown on just 2.6 million hectares. And this might yield 12.25 million tonnes.

“In 2008, the total market value of the Cambodian post and telecommunications sector remains unchanged at US$429 million in 2008. According to a report of the Cambodian government, for six years, the average growth of the Cambodian post and telecommunications sector was 31%. There are eight mobile phone companies in Cambodia, except for the Mobitel company that is co-owned by Luxembourg-registered Millicom International Cellular [Note: Interesting in the environment of present discussions of planned increased regulations for the telecommunications sector in Cambodia: Millicom International Cellular's declared Mission is Freedom to access today's world for people in emerging markets].

“Mobitel, also under the name of Cellcard, http://www.mobitel.com.kh/ offers up to 66% of all services countrywide, followed by Camshin under the name of MFone http://www.mfone.com.kh/ with 12%. It is estimated that Cambodia might have more than 4 million mobile phone users among the population of 14 millions, where 90% of the population lives in rural areas. In addition, Cambodia has a potential for rice investment. Besides China, there are other big donors supporting Cambodia such as Japan and South Korea.

“Besides of the loans provided by the Chinese government to Cambodia, also the Kuwait government agreed to provide a loan of US$546 million to Cambodia, where US$486 million will be used to build up irrigation systems and US$60 million to construct roads in northeastern Cambodia, including in Battambang province, the biggest source of paddy rice. Moreover, Kuwait planned to invest US$200 million on rice production in Cambodia.

“Mr. Chan Sarun said, ‘We have money and we have land. They would not have come to invest if we would not have the potential to expand our agricultural systems.’

“It should be noted that the Chinese government had promised to provide more loans for investments for irrigation such as in Pursat, Prey Veng, and Oddar Meanchey.

“Responding to requests by the head of the Cambodia government to the Chinese government to invest more in Cambodia, the Chinese government eased Cambodian exports to China, allowing Cambodia to export up to 418 items of goods. In 2008, investment from China in Cambodia amounted to US$4.48 billion. But in 2009, the investment dropped to US$349.15 million due to the global financial crisis.

“Last December, the Chinese Vice President, Mr. Xi Jingping [ 习近平 ], visited Cambodia, and he encouraged more investments to be made in Cambodia. At that time, the Chinese government promised to provide US$1.2 billion in grant aid and loans for Cambodia to restore infrastructures which were devastated by two decades of civil war in the 1970s.”

Deum Ampil, Vol.4, #438, 19.3.2010
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Friday, 19 March 2010

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