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CONTENTS

LEAD STORY: ELCs the good, the bad and the ugly           CAMBODIA AGRICULTURE: Cambodian Rice Exports Gaining, Still Well Short of Target           CAMBODIA TRADE: Cambodia Mulls Rival Us And China-Led Trade Blocs           CAMBODIA: Cambodia Seeks To Lure Japanese Property Investors           TRAVEL: A Pull As Strong As Love           ASEAN: ASEAN Ignores the Elephant in the Rooom           CULTURE: Kipling to Jinnah: Mumbai's crumbling colonial homes           GLOBAL ECONOMY: Tougher Lending Rules Post Risk To Fedís Outlook           GLOBAL ENERGY:Is Saudi Arabia Winning The Shale War?           CHINA: As Chinaís Economy Struggles, Ignoring the Environment Has a Big Price           CONVERSATION: Why native English speakers fail to be understood in English Ė and lose out in global business           INDONESIA:Struggling Indonesia Scraps Foreign Investment Limits            ADVERTORIAL: Building IT Foundation and Capabilities For Business Transformation            AGRICULTURE:Commodities' Well-travelled Road to Nowhere: Cutting Output           KEY INDICATORS

Cambodian Business Review
 




 LEAD STORY   Mekong's 'Drought of a Century' About More Than Just Water

In parts of the Lower Mekong countries. it's the worst drought in almost a century, affecting vast swathes of the five nations. Exacerbated by El Nino, it is expected to last until July and is constraining national economies, devastating crops and fish stocks, hitting livelihoods and worsening the salinity crisis striking Vietnam's Mekong Delta.

The International Center for Tropical Agriculture says it is the worst drought to hit Vietnam in recorded history and levels in parts of the river are at their lowest since 1926.

Across the region, failed crops are putting farmers into crippling debt and accompanying unusually high temperatures are causing health problems. And the drought is hitting economic growth - shaving at least 0.1 percentage point off GDP in Cambodia, according to the government's own assessment. That could be optimistic, analysts say.

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  CAMBODIA SUGAR  

$1 bln Chinese Sugar Project Comes On-Stream

Chinese agro-giant Rui Feng (Cambodia) International has opened the first phase of a three-stage, $1 billion sugar mill and plantation project in Cambodia - one of the country's biggest single foreign investments and one of Asia's largest sugar operations.

The Preah Vihear mill, factories and the surrounding plantation - which will expand to 60,000 hectares by the end of next year - will eventually employ about 21,000 people.

The operation will also produce ethanol from factory waste for export to China and organic fertilizer to use on the plantation, as well as electricity from waste for its own use and to add into the provincial grid to reduce Preah Vihear's reliance on power from Phnom Penh.

The first of three factories, which came online in April, will produce up to half a million tonnes of sugar a year. That will rise to 1.8 million tonnes when two more factories are completed next year.

The Chinese company will also build ...

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  CAMBODIA GARMENTS  

Cambodia's Garment Workers Want to go Home

By Hong Limtong, Wang Yue and He Jun

NANJING, China - The garment industry is one of the largest global industries in the world. Throughout the past three centuries, it has undergone remarkable changes.

Over the centuries, many countries had at one time or another developed substantial clothing and textile industries and the sector was once second only to agriculture. Britain, Japan and the US once dominated the world.

Following their success, countries such as Hong Kong, Korea, Singapore and Taiwan charted a similar course as the evolution of Japan. Today, the industry is mostly centered on ASEAN, South Asia and China.

The success of earlier countries encouraged Cambodia to follow their path towards economic development. It has helped make the Kingdom one of the fastest growing economies in the world.

The Economic Institute of Cambodia has determined the garment industry not only creates direct jobs - about 700,000, making it the country's biggest employer - but about the same number ...

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  INTERVIEW  

China Increasingly Important to Cambodia

China's economy, the world's second-largest, is in its worst slowdown in a quarter of a century. And the fallout is wide-reaching, including Cambodia. Despite the downturn, China is becoming increasingly important for trade and for its foreign investment around the world as the global economy shifts from West to East.
What does the economic and geostrategic competition between the China and the US mean for Cambodia? What does Cambodia do to maintain its impressive growth in this climate? Chheang Vannarith is co-founder and chairman of the Cambodian Institute for Strategic Studies, a consultant for the Southeast Asia program at the Nippon Foundation and a regular columnist. He spoke with the Business Editor of our sister publication, Khmer Times, May Kunmakara:


Q:Since China became the largest economy after the US, its government has taken initiatives to influence not only Asia but Europe by encouraging investment there. What is your view of the expansion of Chinese influence in the global economy? ...

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Germany and Cambodia:
21 Years of Warm Ties

 

It has been 21 years that Germany has re-bridged diplomacy with Cambodia via the establishment of Germany’s official relations with the kingdom's Supreme National Council (SNC) in 1992 after the initial diplomacy was...

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