– The World Bank has approved a 274-million-U.S. dollar credit to Cambodia, to help support boost the country’s economic recovery and long-term resilience, said its press release today.
The financing for the Cambodia Growth and Resilience Development Policy Operation, will support reforms that will streamline the business registration processes, promote competition, and expand access to finance for small and medium enterprises.
Other reforms will enhance fiscal resilience, including by improving the management of public-private partnerships and facilitating the issuance of government debt in the domestic market, the press release said, adding that, the operation will also facilitate the timely provision of relief to a broader set of vulnerable households, in the event of a natural disaster or economic shock.
“This new operation will help Cambodia boost private sector competitiveness, strengthen its fiscal position, and provide assistance to its most vulnerable people,” Maryam Salim, World Bank country manager for Cambodia, said.
The operation is anchored in the government’s economic recovery plan, which has three broad objectives of recovery, reform and resilience, the press release said, adding that, the financing provided by this operation will help alleviate some of the fiscal pressures that the government is facing.
Source: NAM News Network
Cambodia-ROK Bilateral Trade Worth US$659 Million in First Ten Months of 2022
Cambodia-Republic of Korea (ROK) bilateral trade rose by 4 percent to US$659 million in the first ten months of this year, compared to the same period last year.
The figures were released by H.E. Pan Sorasak, Minister of Commerce, while receiving here yesterday afternoon a farewell visit from H.E. Park Heung-Kyeong, Ambassador of ROK to Cambodia.
For the first two weeks after the entry into force of the Cambodia-Korea Free Trade Agreement (CKFTA) on Dec. 1, 2022, the two-way trade value was recorded at US$ 0.5 million, the minister added.
H.E. Pan Sorasak congratulated H.E. Park Heung-Kyeong on his successful diplomatic mission in Cambodia, and thanked him for his contribution to Cambodia’s economic development in all sectors, mainly to the strengthening of bilateral cooperation between both nations.
Taking the opportunity, H.E. Minister informed his guest about the new Law on Investment of Cambodia, and asked the Korean diplomat to encourage Korean investors to invest in manufacturing, processing and automotive industry in Cambodia.
H.E. Pan Sorasak also affirmed the Ministry of Commerce’s readiness to continue working closely with the new Korean ambassador for more new achievements.
For his part, H.E. Park Heung-Kyeong spoke highly of the good bilateral relations between Cambodia and ROK, especially in the areas of politics, economy-trade, and the exchange of human resources.
The outgoing Korean diplomat thanked Cambodia for her support to ROK’s candidacy as the Director General of World Trade Organisation in 2021, and congratulated Cambodia on the successful hosting of ASEAN Summits and Related Summits this year, especially the ASEAN Economic Ministers’ (AEM) Meeting.
H.E. Park Heung-Kyeong was also optimistic about the entry into force of CKFTA and the Double Taxation Agreement which will increase confidence among investors and boost more Korean investments and businesses in Cambodia.
Source: Agency Kampuchea Press
Japanese Ambassador Admires Great Achievement of Cambodian People after Devastation Caused by Civil War
Outgoing Japanese Ambassador to the Kingdom of Cambodia H.E. Mikami Masahiro has admired the great achievement of Cambodian people after the devastation caused by the civil war and he is pleased that Japan has been able to contribute to the peace process and reconstruction.
According to his message at the end of his mission released this afternoon, the relationship between Cambodia and Japan has been expanding not only in terms of assistance from Japan but also in business and other fields as Cambodia’s economy grows and its capabilities improve.
“During my tenure, I had opportunities to meet a lot of Cambodian people and to experience Cambodian culture in various ceremonies, events and meetings and now I have a better understanding of Cambodia and its people, compared to when I arrived,” said the outgoing diplomat.
“I am pleased that People’s life improved very much in the past 30 years, but there are many challenges ahead. I wish for a continued democratic development Cambodia towards a society in which no one is left behind and everyone can be happier,” H.E. Mikami Masahiro underlined.
H.E. Mikami Masahiro said he started his mission in September 2019, and today he is leaving Cambodia with a lot of good memories after he work for three years and four months in the country.
After Cambodia, H.E. Mikami Masahiro will fulfill his diplomatic mission in Belgium.
Source: Agency Kampuchea Press
New Financing to Support Cambodia’s Economic Recovery and Long-Term Resilience
Cambodia’s efforts to promote a resilient recovery from recent economic shocks were today bolstered by a $274 million credit from the World Bank for the Cambodia Growth and Resilience Development Policy Operation. The financing approved by the World Bank’s Board of Executive Directors will support reforms that will boost growth and strengthen Cambodia’s resilience.
Cambodia’s economy was badly affected by the COVID-19 pandemic, with GDP contracting by 3.1 percent in 2020, the country’s first recession in 30 years. Simulations show that the poverty rate increased by 2.8 percentage points, pushing about 460,000 individuals into poverty. The government responded quickly and effectively to the pandemic, assisting business and vulnerable families, but the associated rise in spending has meant that fiscal consolidation will be required in the period ahead.
While the economy has recovered in 2021 and 2022, the weakening external environment means that returning to the strong rates of growth seen prior to the pandemic will prove challenging. The ongoing war in Ukraine, economic slowdown in the United States — Cambodia’s largest export market — and slower growth in China will all affect Cambodia’s trade prospects. The country is also highly vulnerable to the impacts of climate change, with high exposure to floods and drought.
The operation supports reforms that will streamline the business registration processes, promote competition, and expand access to finance for small and medium enterprises. Other reforms will enhance fiscal resilience, including by improving the management of Public Private Partnerships and facilitating the issuance of government debt in the domestic market. The operation will also facilitate the timely provision of relief to a broader set of vulnerable households in the event of a natural disaster or economic shock.
“While Cambodia’s ‘Living with COVID-19’ strategy has helped rebuild the economy, the country remains vulnerable to downturns in external demand and disruptions in global supply chains,” said Maryam Salim, World Bank Country Manager for Cambodia. “This new operation will help Cambodia boost private sector competitiveness, strengthen its fiscal position, and provide assistance to its most vulnerable people.”
The operation is anchored in the government’s post-pandemic Economic Recovery Plan, which has three broad objectives of recovery, reform, and resilience, and builds on the $200 million Cambodia Relief, Recovery, and Resilience Development Policy Financing operation approved in 2021. The financing provided by this operation will help to alleviate some of the fiscal pressures that the government is now facing, having run relatively large deficits in recent years. The $274 million credit is provided by the International Development Association (IDA), the World Bank’s fund for the poorest countries.
Source: World Bank
Ministry of Planning Disseminates Result of NSDP 2019-2023’s Mid-Term Implementation
The Ministry of Planning disseminated a report of mid-term implementation of the National Strategic Development Plan (NSDP) 2019-2023 in a workshop here on Dec. 21.
Speaking at the dissemination workshop, H.E. Tuon Thavrak, Secretary of State at the Ministry of Planning said that the Covid-19 pandemic has negatively impacted the implementation of the NSDP in the first mid-term, but the government’s efforts have been placed on time, contributing to minimising the impacts in advance.
“Cambodia’s socio-economic situation and the result of the implementation of NSDP 2019-2023 in the first mid-term had no improvement. But thanks to government’s efforts in controlling Covid-19, setting measures including economic development strategy in the post-Covid-19 has made Cambodia’s economy gradually better,” he said.
The NSDP 2019-2023 summarises the key achievements and challenges during the implementation of the NSDP 2014-2018, together with the macro-economic framework for NSDP 2019-2023.
In addition, the NSDP outlines policies and priority actions for 2019-2023 that relevant ministry shall carry out, and present estimated values, including expenses, resources and expenditure programme. The NSDP also presents the framework for monitoring and evaluation for 2019-2023 phase and shows extensive conclusions.
Source: Agency Kampuchea Press