Dear members, partners, and friends of EuroCham Cambodia,
A tremendous week comes to an end during which EuroCham board members and committee heads had the opportunity to meet with 11 ministries, 8 ministers, 2 government agencies and Prime Minister H.E. Hun Manet. Further below in this week’s newsletter, we share all meetings of the week and their contents with you.
This tightly scheduled mission trip to Cambodia by the EU - ASEAN Business Council, the roof organization for 9 European Chambers of Commerce in ASEAN and over 50 direct multinational members from Europe, was the first large-scale business mission visiting the new Royal Government following its inception. More than 70 participants from 20 companies gained invaluable insights on the development vision for this new era, and the policy direction and priorities the government aims to launch. We were impressed by the encouraging path to economic reforms that was laid out. In all of our meetings with the Royal Government, we had the pleasure to encounter many friends and partners from years past, and had an opportunity to meet the new ministers in various ministries through open and highly informative exchanges.
It has become clear that this Government is dedicated to bring more sustainable development to the country fast, which will create significant opportunities for European businesses. Whether it is in traditional areas such as textiles, agriculture or tourism or in new and fast developing ones such as green transition, energy transition, manufacturing of higher value goods and digitisation - significant opportunities will open up in the coming months and years.
Cutting red tape and reducing administrative burdens and processes, a key EuroCham advocacy topic of the last months, was mentioned by various ministers and government agencies as a priority during this past week. At the same time, the Royal Government has made it clear that it is treading carefully during its first months in office as it strengthens its foundations and will accelerate reform in the coming months.
Cambodia is, in this new political era, also entering a new socio-economic era of development. The incoming political leadership realises that the country needs to better connect to its regional peers with hard (energy, roads, rail) and soft (digital trade, finance, customs services) infrastructure, while at the same time become more competitive, efficient, and progressive to accommodate sustainable, quality investment from all corners of the world. This more clearly voiced approach to doing business with everyone offers safer and more diversified growth opportunities and will strengthen economic stability and long-term investment security. In this vision for development of the Kingdom, EuroCham and our stakeholders are much aligned with the new Royal Government.
While connecting better with regional peers is a priority, at the same time Cambodia has to compete with them for jobs, trade, and investment. This competition encompasses not only direct neighbors such as Vietnam and Thailand, but also ASEAN and the world. It can succeed in this competition by modernising and streamlining governance and becoming more efficient, while remaining an open business destination, attracting investment from everywhere. It will be important for Cambodia to become more international in its approach to and formulation of governance processes and administrative procedures.
In particular, we were very glad to hear from H.E. Keo Rattanak, Minister of Mines and Energy, that sustainability and climate action has moved up even further on the agenda of the Royal Government. His Excellency highlighted the ambition to achieve a 70% renewable energy share in Cambodia by 2030, largely underpinned by hydropower, much more solar, and wind energy. Rooftop solar and energy efficiency, long-time matters of concern for the international private sector in Cambodia, were also mentioned during this week’s meetings as contributors to upscaling the Kingdom’s energy requirements. The minister also promised an easing of procedures, application processes and overall administrative requirements.
A great networking event topped off the visits, an opportunity for EuroCham members to meet with the visiting delegation members and make new contacts. A big thank you goes to the EU-ASEAN Business Council and its Executive Director Chris Humphrey and Advocacy Director Liyana Othman for their tireless work in putting this week’s intense programme together.
Last but not least, the EuroCham Cambodia team has again done an outstanding job in facilitating, organizing and documenting a great week for our organisation. I much look forward to the coming months and to work with you and the Royal Government on the initiatives that are on the table as we aim to transform Cambodia‘s business environment.
Thank you for your support of EuroCham Cambodia, and for working with us via our many committees and initiatives. Very clearly, your contribution and participation has an impact on how good business will be done in future in the Kingdom of growth.
Please have a nice weekend. |
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Soputhyka has been an integral part for the events team for almost two years and she will be sorely missed, not just for her great work ethic, but for her positive personality that never fails to put a smile on your face. From organising events to designing social media posts and stories, she can really do it all. We all wish you luck in the future! |
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Welcome Suntheara Huong, Junior Event Admin at EuroCham Cambodia! Currently, he is a senior student majoring in international relations at Paragon International University, and an intern at the Center for Advanced Research and Legal Studies (CARLS) of the Asian Vision Institute (AVI). Before joining EuroCham, in 2021, he was a member of Incoming Local Volunteers at AIESEC LUCT in Cambodia, and also a Media Team Leader at Ponleu by TAC. In 2022, he was the President of the Paragon International University Student Ambassador, and the head of Media Production at Ignite in Cambodia as well. In 2023, he was a Mentor & Program Coordinator at The Global Peace Alliance – Cambodia, and also a Project Lead at Digital Talent hosted by the Ministry of Post and Telecommunications. |
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Mobile phone users in Cambodia use an average of 33GB per month, according to the 2024 White Book, compared to a global average of 12GB. A topic that was discussed during the trade mission this week with the Ministry of Post and Telecommunications, this puts strain on the country's existing mobile networks to deliver promised speeds, and creates an urgency to invest in 5G architecture. |
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| EU-ASEAN Business Council Delegation - Meeting with PM H.E. Hun Manet |
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At the end of day one of the mission trip, the EU-ASEAN Business Council delegation visited Prime Minister H.E. Hun Manet (pictured) at the Peace Palace, where they held an hour and a half discussion on his roadmap for the future. The delegation expressed a desire to collaborate on the development of Cambodia during this crucial time, with the Prime Minister saying he was always open to private sector collaboration and investment and was prioritising helping the Cambodian people.
EU-ABC Chairman Jens Ruebbert said: " We had an excellent meeting with H.E. Samdech Thipadei Hun Manet, Prime Minister of Cambodia. We constructively discussed various important areas including health, education, environment, foreign policy, increase in trade, exploring investment opportunities, expanding existing investments and trade as well as the general economic outlook and positive growth perspectives.The Prime Minister also reaffirmed the RGC’s stance to open to all investments by companies from around the world, including the European Union through various incentive policies to create attractiveness" |
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| German Trade Mission Update |
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The EU-ABC Delegation wasn't the only trade mission happening this week. Organised by EuroCham and the Business Scouts for Development, under the theme of waste management and resource recovery, 9 mostly German company delegates met with Minister of Environment H.E. Eang Sophalleth and waste collectors in Phnom Penh, governors and deputy governors of three Cambodian provinces, and various landfills and waste management sites across the country. |
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| EU-ASEAN Business Council Delegation Meeting Recap - Day 1 |
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European Union Delegation to Cambodia |
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The first visit of the trip: a meeting with recently appointed EU Ambassador to Cambodia H.E. Igor Driesmans. Topics discussed included the direction of the new government. Will the Pentagonal strategy translate to enforceable policies? While there was optimism surrounding improved waste management, questions linger on issues of transparent taxation, human rights issues, and a slowing real estate market.
The delegation was keen to find out where the EU fits into Prime MinisterH.E. Hun Manet’s plans, after his visits to the US and China. Another key theme discussed was ensuring Cambodia’s competitiveness as it is confirmed the Kingdom will become a Middle-Income country by 2024, but there are several years of grace periods available for Cambodia to transition to other trade schemes such as GSP+. |
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Meeting with the Council for the Development of Cambodia (CDC) |
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Next up was a meeting the Council for the Development of Cambodia and Deputy Secretary General H.E. Nut Un-Voanra. The recently promulgated Law on Investment was a hot topic, as well as the 18 prioritised sectors that are eligible for tax incentives. There was a push for more awareness around sustainability principles and lower logistics costs to increase investment potential.
Clarification was sought on the automotive sector, which is currently losing reputation as name brands leave and the grey market remains strong, causing hesitancy in the market. One question for the CDC was about the importance of crafting a unique Cambodian story to tell the world, a potential boon for investment because people would have a clearer image of the Kingdom and its business benefits. |
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Ministry of Environment (MOE) |
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The delegation then met withMinister of Environment H.E. Eang Sophalleth and discussed sustainability, waste management, and areas of collaboration where the private sector could help achieve goals related to these topics. Bamboo was mentioned as a potentially lucrative commodity for Cambodia to cultivate, process, and sell.
Priorities mentioned included plastic was reduction and planting trees to organically contribute to sustainability goals. Carbon credits were discussed as a potential means for generating revenue and contributing to these goals as well. Both sides of the meeting expressed a willingness to work together, through volunteer efforts, investment projects with potential incentives, and the exploration of new products such as sustainable packaging. |
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Ministry of Industry, Science, Technology, and Innovation (MISTI) |
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The delegation also paid a visit to H.E. Hem Vanndy, Minister of Industry, Science, Technology & Innovation to discuss research and development (R&D) of renewable energy, sustainable practices, and the circular economy as well as how the government promotes R&D activities by incentivising research and development and fostering new technology adoption.
During the meeting, the ministry also shared several initiatives that the government has worked on to encourage industry, science, technology, and innovation, as seen by Cambodia's Science, Technology, and Innovation Roadmap 2030 and the National Science, Technology, and Innovation (STI) Policy 2020-2030. Finally, the ministry encouraged significant collaboration among pharmaceutical corporations, local healthcare institutions, and all other stakeholders. |
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National Bank of Cambodia (NBC) |
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The delegation visited the newly appointed Governor of the National Bank of Cambodia, H.E. Chea Serey (pictured), on Day 1, to discuss a variety of issues including the pros and cons of dollarization, the success in pioneering and promoting e-payments, and the need to improve financial literacy in the country. Concerns raised included high lending interest rates, a souring global economy, and the ability to receive refunds for incentives.
Slowly transitioning to riel over time appears to be the plan, which would safeguard Cambodia from dollar fluctuations but also risks to make it a less attractive place to do business, at least initially. Despite the barriers to increasing FDI, the mood remained optimistic for the long-term, with a reminder that the Cambodian economy is really part of a 600 million strong (ASEAN) population as long as intra-regional economic connectivity is enhanced and sustained. |
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Ministry of Agriculture, Forestry and Fisheries (MAFF) |
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The delegates also paid a visit to H.E. Dith Tina, Minister of Agriculture Forestry and Fisheries. Contract farming, how to register and import animal health products (supplements and vaccines) into the nation, and concerns about the absence of a framework to bring in vet products were among the topics discussed. Delegates kindly requested the ministry for advice on this matter as it is essential to support Cambodia's agriculture sector in expanding. |
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| EU-ASEAN Business Council Delegation Meeting Recap - Day 2 |
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Ministry of Economy and Finance (MEF) |
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Day 2 kicked off with a meeting at the Minister of Economy and Finance with Secretary of State H.E. Ros Seilava (pictured) and his team. Several issues were raised, including cracking down on illicit and counterfeit cigarettes and other goods, taxation issues, and high energy costs preventing more foreign investment. Extra taxes on certain goods such as e-commerce goods was also brought up as a barrier to increased business.
Cambodia’s recent historic growth curve will be hard to maintain with external pressures but there was a willingness to reach across the aisle on both sides to maintain the upward trajectory. Incentives were mentioned to help support a green energy transition and a multi-pronged strategic vision was unveiled focused on economic diversification, regional connectivity, private sector collaboration, sustainability, and digitalisaton. Health sector representatives also expressed a willingness to contribute and advise on the NSSF. |
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Ministry of Post and Telecommunications (MPTC) |
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The delegation, then met with H.E. Chea Vandeth (pictured), Minister of Post and Telecommunications to discuss e-commerce, cross-border trade, mobile phone usage, and digitalisation. To streamline services, developing a platform to allow for seamless and secure government-to-government (G2G), G2B, and G2C data sharing.
Concerns raised included the limited capacity of existing 3G and 4G networks to handle the average of 33GB consumed monthly by users in Cambodia in 2022, with 5G investment a potential solution. Concerning the population, ideas were put forward to close the technical skills gap by teaching digital literacy in schools at a young age and offering education incentives such as scholarships. Potential revenue generators included strengthening e-commerce procedures and standards for the sale of pharmaceutical products online. |
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General Department of Customs and Excise of Cambodia (GDCE) |
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The delegation paid a visit to the General Department of Customs and Excise of Cambodia to meet Deputy Director Mr. Pha Eng Veng next. Unnecessary paperwork was cited as a major issue, in addition to aligning Cambodia’s ASCUYDA system with the ASEAN Single Window system to streamline the shipment of goods across borders and avoid the necessity of double submissions to multiple systems.
Again, the issue was raised of cracking down on illicit goods without new solutions presented. There appeared to be a consensus to move forward with integrating Cambodia customs into the ASEAN Single Window system and there was a willingness to work with the private sector to reduce customs clearance times and increase transparency to better attract business and investment. |
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The delegation traveled to the Ministry of Health to meet with Minister H.E. Chheang Ra (pictured) and his team. Consumer safety was a big theme, with a need to intercept parallel imports which can cause harm, especially considering infant formula and medications. Age restrictions for buying alcohol and partnerships to improve nutrition were also discussed, as well as illegal advertising and sampling of certain milk products which undercuts competition.
Joint efforts were also discussed to create national nutritional standards, and find ways to bring essential health services closer to the people. It’s clear that the pharmaceutical industry is ready to grow, especially with telemedicine, but concerns remain about counterfeit and illicit drugs on the market, which are not taxed and can cause harm to patients. |
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Ministry of Commerce (MOC) |
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The team headed to the Ministry of Commerce to finish off he second day with a meeting with recently appointed Minister H.E. Cham Nimul (pictured). Questions were raised surrounding the country’s plans to market itself in an effort to raise awareness of investment potential. Export readiness remained a clear priority for the ministry, as well as digitizing more processes to streamline registration and submission of documents. The Industrial Transformation Map for the Textile and Apparel Industry 2023-2026 was highlighted, in addition to plans for diversifying sourcing markets for the industry.
A heavy emphasis was placed on formalizing the informal sector, with the delegation again pushing for stricter enforcement of illicit and counterfeit goods. These efforts are designed to strengthen domestic markets in light of the upcoming graduation from LDC status while also creating a transparent and level playing field for international investors to enter the market. |
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| EU-ASEAN Business Council Delegation Meeting Recap - Day 3 |
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Ministry of Mines and Energy (MME) |
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To start the third day of meetings, the delegation met with Minister of Mines and Energy H.E. Keo Rattanak (pictured left, speaing with Mr. Erkan Bilal) at the MME headquarters. The meeting produced great optimism for the future of renewables with both sides expressing a desire to partner on projects that will catalyze the country’s green energy transition, with the government typically only stepping in to reach remote areas with low investment potential in the private sector. Estimates of 500MW installed solar over the next three years were made with the target of a 70-80% renewable energy mix by 2030. The delegation expressed a strong interest by European businesses to start investing in renewables as soon as possible. Long-term solutions for moving away from oil and gas were presented, including a possible shift to liquefied natural gas. The meeting painted a future for rooftop solar, with the government willing to embrace it as long as it could be effectively managed with the current grid. Better regional grid connectivity was mentioned by H.E. Keo Rattanak as one key ambition to be realised, and Mr. Brinzer mentioned that the European Global Gateway program could be an avenue to pursue for the development of a subregional power grid. |
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Ministry of Public Works and Transport (MPWT) |
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For the last meeting of the delegation, the team met with Minister of Public Works and Transport H.E. Peng Ponea (pictured centre, with Mr. Narath Chheav on left and Mr. Emerald Am on right). Both sides expressed a desire to install more charging stations in the country with plans made for hundreds more to become available in the short to medium-term future.
Roads are being planned after the successful Phnom Penh-Sihanoukville highway with international investors keen to invest, and the public sector willing to diversify their investors and partners on these projects. One key project to watch will be the Phnom Pen-Bavet expressway. Road safety was a major topic discussed, with the potential for the ministry to look into requiring ABS brakes for two-wheeled vehicles. A clear theme was that high technology is needed to aid a green, sustainable transition for the transport sector, and this transition creates an opportunity for international investors. |
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| GC Life Insurance PLC. (“GC Life”) is a life insurance company headquartered in Phnom Penh, Cambodia. GC Life has been on a mission to enrich people’s lives by pioneering the development of the most attractive and flexible life insurance products and personalising every aspect of the customer experience. |
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EuroCham hosts Open Office Day on 24 October |
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EuroCham Office held a warm welcome to new members on October 24. During the event, members learned about various benefits and activities provided by the chamber. It was a great opportunity and explore for new opportunities! |
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CCI France Cambodge hosts French Market at the French Embassy |
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Last Saturday, CCI France Cambodge hosted the annual French Market at the French Embassy drew a record-breaking 13,500 visitors and more than 70 exhibitors. The market promotes French culture and products where visitors can explore a wide range of French products and services. |
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[Public Lighting Tax] According to Sub-Decree no. 286 SD.Prk, dated 20 September 2023, the updated rate for public lighting tax (PLT) shall be 5% for the supply of all alcohol and beverage or tobacco products. The rules and procedures on the collection of public lighting tax shall be further determined by the Prakas of the Ministry of Economy and Finance (MEF), while any contrary provisions to this sub-decree shall be abrogated. This will be effective from 1st January 2024.
[Advertisement Tax] According to Sub-Decree no. 287 SD.Prk, dated 20 September 2023, issued to determine the rate and basis of calculating tax on advertisement, which will be implemented on all forms of advertising (both movable and immovable) in Cambodia. |
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New Minimum Wage for the Textile, Garment, Footwear, Travel Goods and Bags Sectors for the Year 2024 |
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According to Ministry of Labor and Vocational Training (MLVT) – Prakas No. 283/23 dated 29 September 2023 on the New Minimum Wage for the Textile, Garment, Footwear, Travel Goods and Bag Sectors for the Year 2024. The MLVT issued a Prakas to determine the updated minimum wage for the year 2024 for workers/employees in the textile, garment, footwear, travel goods and bag sectors at US$204/month, an increase of US$2/month compared with the minimum wage in 2023. The updated minimum wage shall be effective from 1 January 2024 onwards |
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EuroCham Cambodia and its Transport & Logistics Committee are proud to present the Customs Forum, "From Paper to Pixels: Transforming Customs Procedures through Digitalisation". During this half-day forum, we will highlight and address some of the major challenges faced by Transport and logistics professionals in Cambodia, particularly the lack of modernised Customs procedures.
Event Details Date: Wednesday, 8 November 2023 Time: 9:00AM-12:30PM (Registration from 8:30AM) Venue: Topaz Phnom Penh EuroCham members: $40 Standard ticket: $60 |
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Theato restaurant is securing The Balé Phnom Penh's reputation as one of South East Asia's leading new culinary destinations. Dishes include Mekong Broth with giant prawns, Seared Beef Salad with soft poached egg, and the South Cambodian classic Kep Crab and Kampot Pepper Stir-fry. To reserve a table: +855 023 900 425 or email: bliss@thebalephnompenh.com |
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Check out other EuroCham Member Restaurants: b. Consulting Hospitality & Hotel Solutions, Himawari Hotel Apartments, Hops Garden, Hotel Cambodiana, Hyatt Regency, Knai Bang Chatt, Oakwood Premier Phnom Penh, Raffles Hotel Le Royal, Rosewood Phnom Penh, Six Senses Krabey Island, Sofitel Phnom Penh Phokeethra, Sun & Moon, Urban Hotel, Thalias Hospitality Group, The Amanjaya Pancam Suites Hotel, The Balé Phnom Penh, TRIBE Phnom Penh Post Office Square, Newrest Catering (Cambodia) Co., LTD (Hagar) |
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