BANKING - KTB Seeks Presence In Sihanoukville

Bangkok Post
Garment, tourism businesses targeted

NAREERAT WIRIYAPONG

PHNOM PENH : State-owned Krung Thai Bank is looking to expand its presence in Cambodia by opening a new branch in the port town of Sihanoukville. Sihanoukville, about 230 kilometres southwest of Phnom Penh, is considered a strategic location for the new branch of KTB as it is the centre of logistics, trade and investment, as well as tourism, said Pisit Buranakitpinyo, general manager and vice-president of KTB's Phnom Penh branch.

The Thai bank, which has had a presence in Cambodia since 1994, currently operates two branches in the country _ one in Phnom Penh and a sub-branch in Siem Reap.

''The deep-sea port at Sihanoukville has created a big volume of business transactions including shipments of goods exported from Thailand, China and Vietnam,'' said Mr Pisit.

''At the same time, factories, mainly those in the garment industry, are operated there while beaches have led to developments of tourism businesses around the area.''

Garments are the biggest industry in Cambodia since it has enjoyed tariff privileges from exporting to the US market. Through the operations of roughly 300 factories, garments accounted for a major share of Cambodia's gross domestic product (GDP), noted Mr Pisit.

According to the Office of Commercial Affairs of the Thai embassy in Phnom Penh, a cluster of 20 Chinese garment factories in Sihanoukville takes advantage of cheap labour and tariff privileges for exporting to the US.

Siam Commercial Bank (SCB), which operates in Cambodia under the name Cambodian Commercial Bank, has four branches at present including the one in Sihanoukville, Mr Pisit said.

According to Mr Pisit, Cambodia is currently the biggest overseas operation of KTB, which operates 200 branches locally. The bank has one branch each in Vientiane, Mumbai, Kunming, Singapore and Los Angeles. The two branches in Hanoi and Ho Chi Minh City had been closed.

''Cambodia is one of the emerging markets that have high potential,'' he said, citing the country's double-digit growth rates seen over the past decade. ''But this year, the (Cambodian) economy is likely to expand below 10% due to high oil prices and the global economic slowdown.

''The government here has introduced aggressive economic measures, for example the establishment of a stock exchange by the end of next year. Laws and regulations have been adjusted to facilitate the plan,'' he added.

On the bank's performance, Mr Pisit said first-half results remained on target despite tensions over Thailand's border with Cambodia.

''So far, I think we are still on track to achieve the whole year's target,'' he said but decline to elaborate the figures.

KTB shares closed yesterday on the SET at 7.50 baht, up 10 satang, in trade worth 112.13 million baht.

First Property Expo Set For October

Courtesy of Phnom Penh Post

Written by Nguon Sovan and Hor Hab
Wednesday, 27 August 2008

Hopes are high event will spur interest in housing market

CAMBODIA'S booming real estate market is attracting record interest from property companies with the Kingdom's first-ever real estate expo scheduled for October.

Whale Event Management, a member of Whale Group, expects to be at full capacity when it kicks off the three-day exposition on October 3 at Phnom Penh's Mondial Center, said Sorn Sovattey, senior sales executive for Whale Event Management.

"We expect to have 31 real estate companies registering for the expo, because we have only 31 booths," Sorn Sovattey told the Post.

She said the expo will focus on city developers, realtors, property agents and property development consultants. It will also feature a growing field of designers, contractors and urban planners.

Luxury and high-end real estate developers are especially interested in the Kingdom, which has so far remained sheltered from the property market turmoil in Vietnam and stagnation in Thailand.

"The event is a good chance to gather all real estate companies together, which is easy for customers to see," she said. "It is a premium and high-class expo, which is expected to attract about 40,000 businesspeople, company bosses and customers."

Exhibitors can choose from five categories of booths: diamond, costing US$20,000 for three days, gold ($10,000), silver ($8,000), platinum ($6,000) and standard booths ($2,500).

"The real estate market is improving with a lot of satellite cities," Sorn Sovattey said. "After the 2008 election, the trend will go further."

Nhem Sothea, marketing manager of the Grand Phnom Penh International City, one of the capital's housing mega-projects, said the expo would give developers a chance to reach a wider audience.

"It is a good chance to display real estate products such as house styles, villas, business centers," he said Monday.

Others said the event would allow potential customers to get an overview of Phnom Penh's rapidly evolving housing market by talking directly with developers and real estate agents.

"Customers can see the styles of houses that they prefer and negotiate prices," said Mao Thora, an undersecretary at the Commerce Ministry.

But some realtors have complained that the expo fees are too high and that the event was not planned far enough in advance.

In Sitha, general manager of Sovannaphum Realty, told the Post that his company would visit the event, but not join as an exhibitor.

"My company focuses on land speculation and building development, but I don't have any interest displaying at the expo. We have [other] ways to promote our products, and the expo schedule is too early to arrange for it," he said.

Sung Bonna, president of Bonna Realty Group, said that the initiative is good for the Cambodian market, but timing and costs could curb participation.

"My company has not made a decision yet.... The price for exhibiting is also too high for Cambodia's standards," he said.

Sorn Sovattey acknowledged that it was too early to tell how successful Cambodia's inaugural property expo would be, said she hoped it would be a top draw for the market.

"It is too early, of course, but we hope all real estate companies can participate," she said.

Cambodia mulls allowing foreigners to buy property

Courtesy of The Economic Times [India]

PHNOM PENH: The Cambodian government is considering allowing foreign ownership of property such as apartments and office buildings to boost the country's economic growth, an official said on Wednesday. Under the current rules, foreign property investments can only be made through the name of a Cambodian national, and many are unwilling to risk losing their assets to unscrupulous local partners.

Information Minister Khieu Kanharith said the government is evaluating the policy to ensure that foreigners will be allowed to own buildings and apartments but not land.

"The important thing is that foreigners cannot own land... They can buy things above the ground only," Khieu Kanharith told. He said that the plan would attract more foreign investment and more skilled foreign workers to the impoverished nation.

"This policy will boost our economic growth," Khieu Kanharith added. The move comes after the private sector last year urged the government to allow foreign ownership of certain properties like apartments or factories, saying a liberalised real estate market would spur the economy. Cambodia's investment law was amended in 2005 to allow foreign ownership of buildings, but the legislation has yet to be implemented and the initiative has floundered. Despite current restrictions, billion-dollar skyscraper projects and sprawling satellite cities promising to radically alter Phnom Penh have bloomed over the past few years.

They are mainly backed by South Korean companies working through local partners. After decades of turmoil, Cambodia has emerged as a rising economy in the region - posting average 11 per cent growth over the past three years on the back of strong tourism and garment sectors. But officials warn that the country, which still relies on international aid for half of its annual budget, must diversify by seeking more varied foreign investments.

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