EU wants to invest in cashew nut processing facilities in Cambodia

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CSX index shows marginal dip, DBDE and JSL shine on the growth board  As of December 7, 2023, the CSX index closed at 451.1 points, reflecting a marginal decrease of 0.01% from the previous session. PAS (+0.81%), MJQE (+0.48%), PEPC (+0.39%), GTI (+0.35%), and ABC (+0.21%) all registered positive movements today. Conversely, PPSP (-0.46%) and CGSM (-0.40%) experienced declines, while PWSA remained unchanged. On the growth board, DBDE and JSL posted gains of 1.44% and 4.91%, respectively. The overall trading activity involved 55,641 shares, with a total trading value of KHR 410 million. (Source: YSC Research)

Economy and Industry

EU wants to invest in cashew nut processing facilities in Cambodia The European Union (EU) is actively encouraging European investors to relocate cashew processing operations from neighboring countries to Cambodia. In collaboration with the Ministry of Commerce, Ministry of Agriculture, Forestry and Fisheries (MAFF), and Ministry of Industry, Science, Technology and Innovation (MISTI), the EU organized a comprehensive two-day Cashew Forum in Kampong Thom province. This initiative underscores the EU's commitment to Cambodia's agricultural sector, emphasizing sustainable development and economic diversification in line with the "National Policy on Cashew 2022-2027". Bryan Fornari, Head of Cooperation of the EU Delegation to Cambodia, highlighted the significant potential of bringing cashew processing to Cambodia, with the country currently producing 1.1 million tonnes of cashew nuts annually. Through collaborative efforts under the ARISE+ and CRAS programs, the EU and Germany are working closely with the government to achieve this goal, potentially expanding cashew growing areas to one million hectares. (Source: Khmer Times)

The transportation sector is growing slowly due to global stressors and a decline in orders This year, Cambodia's transportation sector is facing sluggish growth, primarily influenced by geopolitical tensions among major powers. From January to October 2023, the country's exports to global markets saw a marginal increase of 0.2%, while imports experienced a 6% decline. The freight sector heavily depends on international orders, which have been diminishing for more than a year. Despite these challenges, the Cambodia Logistics Association anticipates a turnaround in transportation activities in 2024. Sin Chanthy, the president of the association, observes that transport activity and freight prices are on par with or slightly lower than those in 2022, linked to weak global economic growth. Despite the current situation, Chanthy expresses optimism, foreseeing a potential increase in overseas orders by the end of 2023, which could reenergize the transport sector. (Source: The Phnom Penh Post)

UAE-Cambodia chambers deepen their cooperation The Cambodia Chamber of Commerce and the Dubai Chamber of the United Arab Emirates (UAE) have affirmed their commitment to enhance trade and investment cooperation, culminating in the signing of a memorandum of understanding (MoU). This agreement aims to strengthen collaboration and advocate for direct flights between the two nations. The meeting, conducted in Phnom Penh, focused on identifying business opportunities in Cambodia for UAE companies. The Dubai Chamber of Commerce provided insights into its business and investment activities, with the delegation expressing interest in exporting agricultural products from Cambodia. The MoU specifically targets fostering cooperation in investment and trade while pushing for direct air connectivity. Discussions also centered on expanding bilateral trade in Cambodia's agricultural sector, particularly in rice production, tourism, and food safety. In 2022, bilateral trade between the UAE and Cambodia amounted to $407 million, encompassing various traded items such as clothes, footwear, bicycles, travel goods, tobacco, milled rice, electrical appliances, vehicle components, asphalt, tuber sugars, animal feed, plastics, vehicles, and paper. (Source: Khmer Times)

Corporate News

The new PAS terminal is scheduled to open in 2025 The Sihanoukville Autonomous Port (PAS) is on track to complete the initial phase of its expansion project by mid-2025, unveiling a new container terminal in the same year. Originally slated for completion by 2026, the project's timeline was expedited following Prime Minister Hun Manet's directive to hasten the process. The upcoming terminal, supported by a $203 million soft loan from the Japan International Cooperation Agency (JICA), will enable the port to accommodate larger container vessels with a capacity of 60,000 DWT (equivalent to approximately 4,000 TEUs). This expansion, aimed at matching ocean freight costs in neighboring nations, holds the potential to bolster Cambodia's trade and economic growth. The subsequent third phase, scheduled for 2029, will further amplify the port's capacity to 160,000 DWT and extend its shipping connections to the Europe and North America regions. (Source: Khmer Times)

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