Prime Minister urges MSMEs to contribute to socio-economic development

Economy and Industry

Prime Minister urges MSMEs to contribute to socio-economic development  Cambodian Prime Minister Hun Manet has urged the owners of Micro, Small and Medium-sized Enterprises (MSMEs) to work together to contribute to the country's socio-economic development. MSMEs play a crucial role in creating jobs, increasing income, reducing migration, and promoting economic development, social stability, and private sector growth. The United Nations General Assembly has designated June 27 as International MSME Day to highlight the critical role MSMEs play in sustainable, inclusive, and resilient economic growth. In Cambodia, MSMEs are the backbone of the economy, playing a crucial role in employment, food security, and poverty reduction. The Royal Government of Cambodia is expanding public investment, strengthening institutional mechanisms, and providing public services to support the development of the MSME ecosystem. The celebration of the First National Day of MSMEs aims to increase awareness and provide practical insights for unlocking MSMEs' growth potential and global competitiveness through formalization, compliance, adoption of good standards, access to finance, and market intelligence.

Energy drinks market valued at $49.3 million in 2023 The energy drink sector in Cambodia, valued at $49.3 million in 2023, is projected to reach $82.3 million by 2032, growing at a CAGR of 5.85%, according to an Astute Analytica report. Despite this growth, local consumers are increasingly favoring healthier alternatives, influenced by government regulations on highly sweetened and caffeinated drinks. Key drivers include Cambodia's youthful demographic, with 60% of the population under 30, increasing urbanization, and rising disposable income. Urban youth prefer energy drinks over alcoholic beverages due to their suitability for social environments and perceived health benefits. However, awareness of health risks associated with high sugar and caffeine intake is shifting demand towards healthier options, with government taxes and regulations reinforcing this trend. Non-organic energy drinks dominate the market, but organic alternatives are growing faster, driven by health-conscious urban consumers. (Source: Khmer Times)

MISTI Minister praises Honda Motorcycle factory for SME engagement Hem Vanndy, Minister of Industry, Science, Technology, and Innovation (MISTI), praised Honda for its innovation, local production, and economic impact on Cambodia. During a recent visit, Minister Vanndy highlighted the importance of motorbikes in Cambodia's daily life and economy. He encouraged Honda to allow local SMEs to visit the factory to learn from its standards and workforce practices, commending its efforts in import substitution. He also urged Honda to collaborate with local SMEs to produce some of the over 500 components for Honda motorbikes. Honda executives showcased their production lines and environmental efforts, including wastewater management and robotic technology. The Minister suggested providing opportunities for local designers and exploring financing options to make motorbikes more accessible to Cambodians. Honda, through N.C.X. Co., LTD., has generated over 2,000 jobs and produced over 4.3 million motorbikes, with the Cambodian motorcycle market to increase at a CAGR of 7.67% by 2026. (Source: Khmer Times)

Corporate News

Lagardere Travel Retail and HSC Group Secure 12-Year Contract at Techo International Airport Lagardere Travel Retail SAS and local partner HSC Group have won a twelve-year contract to manage Duty-Free, Duty-Paid Retail, Travel Essentials, and select food service operations at the soon-to-open Techo International Airport (TIA). The agreement is based on a profit-sharing model, showcasing CAIC's innovative approach. Charles Vann, Director of Canadia Group, expressed confidence in the partnership, highlighting its potential to enhance TIA's appeal with new retail and dining experiences. Under the agreement, Lagardere will develop 34 state-of-the-art outlets, including high-end duty-free stores, hybrid retail and dining concepts, and new food service outlets. Severine Lanthier of Lagardere Travel Retail SAS emphasized the opportunity to elevate retail and food services for South Asian and international travelers. CAIC has invested over $1.1 billion in TIA, with the first phase set to be operational in early 2025, accommodating 13 million passengers. (Source: Khmer Times)

Stock Market

CSX index rises 0.29% on June 27, 2024, boosted by gains in PEPC and PPAP On June 27, 2024, the CSX index closed at 412.2 points, up 0.29% from the previous day. The main board saw gains in PEPC (+2.79%), PPAP (+1.10%), GTI (+0.70%), CGSM (+0.41%), and ABC (+0.26%), while PPSP (-1.36%) and PWSA (-0.29%) experienced declines. PAS and MJQE remained unchanged. On the growth board, JSL increased by 2.05%, while DBDE remained unchanged. The total trading volume was 86,781 shares, with a cumulative trading value of KHR 385 million. (Source: YSC Research)

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