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Port shipments to soar

June 16, 2011 Leave a comment
Photo by: HECTOR BERMEJO
SHIPMENTS through Sihanoukville Autonomous Port have increased this year
largely on increased exports of rice and acacia wood, Director General
Lou Kim Chhun said.

Some 91,100 Twenty-foot Equivalent Units
(TEUs) were transported through the facility between January and May, an
8.7 percent increase on shipments during the same period last year,
according to port statistics.

An increase in shipments of
products such as garments, oil and coal were main drivers of the growth,
though agriculture and timber products were showing the largest
increase, he said.

“Rice and acacia-wood exports jumped better than expected in the first five months,” Lou Kim Chhun said on Tuesday.

The port is currently shipping 10,000 tonnes of acacia wood to China each month, while imports of oil are also on the rise.

Lou Kim Chhun highlighted the potential of rail shipments from Phnom Penh to the port as increasing overall exports.

The
rail link between the capital and Touk Meas in Kampot province opened
last year, while the leg between Kampot and Sihanoukville is slated for
completion this year.

“We strongly believe that when the
railroad from Touk Meas links with Sihanoukville port, shipments through
the port will increase more next year,” he said.

One of Cambodia’s largest trucking companies, So Nguon Group, is taking a wait and see approach to competition from rail.

“We
don’t think it will affect our business of transportation, but we don’t
know yet. We will wait to see the situation at the time,” said its
President So Nguon on Tuesday.

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8 Home Buying Secrets Your Real Estate Agent Won’t Tell You

June 10, 2011 Leave a comment

When they’re finally ready to make the jump from renting to home ownership, most first time homebuyers enlist a real estate agent to help them through the process. No wonder: buying a home is complicated and when it’s your first time, you feel like you could use some hand-holding.
Real estate agents provide a valuable service and are generally well-paid as a result. There’s nothing wrong with that. But money does have a way of distorting relationships — even when honest people are involved.
Here are some tips that will help you, as a first time homebuyer, take full advantage of today’s real estate market and get the most out of your relationship with your real estate agent.

1. Your agent is your agent

When you’re new to the process, it is easy to believe that the guy with 20 years’ experience calls the shots. This couldn’t be further from the truth. Your real estate professional is your agent: he or she works for you, gives you advice and negotiates on your behalf. He doesn’t make decisions for you and you should not expect him to.

2. Only fools fall in love

After you’ve looked at a few houses that weren’t quite right, your agent will probably tell you not to get discouraged, and that eventually you will “fall in love” with the right property.
Love makes you do stupid things. Stupid things like paying too much or looking past costly repair items. As a first-time homebuyer, you should develop a healthy ‘like’ for a property, but keep the relationship open, see other houses. There will be plenty of time for “love” after you’ve put in the 300 hours of sweat equity to make your house a home.

3. Be willing to walk away

If you never fall in love with a piece of real estate, you’ll never cry when you have to walk away from it. Real estate agents often use the phrase “my client will walk away” and some use it quite loosely to stress the importance of a point for negotiation. If you want to retain the full strength of your position as a buyer, you’ll need “I’ll walk away” to mean that you are done if your demands aren’t met.
For your agent to communicate this correctly to the seller, he needs to know that you mean what you say. And yes, if it reaches that point, you will need to walk away from a property. Not to worry: there are others out there. But don’t be surprised if you hear back from the seller a week later that he is willing to work with your demands.

4. Time is on your side

Your agent is going to tell you that you have to move quickly and make the best offer possible when you find the right property. This is not always the best advice. As a first time homebuyer, you are in a unique position of strength in terms of the real estate transaction. You aren’t selling your home, so you don’t have to move. You can look at and make offers on many properties. You can start with a low offer and negotiate upwards if the seller balks. You can table a counter-offer and look around a bit before deciding to pay more. The opposite is generally true of sellers in a buyer’s market. They need to sell the property and are motivated to move as quickly as possible. Use time to your advantage.

5. Your agent is not your friend

Your agent performs valuable services in the real estate transaction, but he really doesn’t make anything until you buy a piece of real estate. That makes him a salesman. Being a salesman, he wants you to feel like he is a friend who has your best interests at heart.
The reality is that your interests and your agent’s may not be aligned. He is actually better off financially if you make a quick decision and pay too much for a property. This is, after all, likely the largest business transaction of your life. Make sure that your agent, regardless of how personable he is, understands that you are a customer and that you need him to drive the best business deal for you.

6. The listing agent just might be your best friend

In the New York Times best-selling book Freakanomics, authors Steven D. Levitt and Stephen J. Dubner point out that real estate agents typically market their own homes for 10 days longer than they market their clients’ homes. Is this because they are so busy with their clients that they don’t have time to market their own homes?
No, it really comes down to how we incent real estate agents with commission. When an agent is selling his own home, he enjoys the full benefit of any increase in sales price so he is extremely motivated to market for as long as possible to get the best sales price possible. But when it comes to a client’s home, an extra week on the market might lead to a higher sales price for the seller — but the agent will only enjoy a very small amount of that increase in the form of marginal increase to commission. Meanwhile, marketing a home for another week would take him away from marketing someone else’s property. As such, the listing agent is highly motivated to convince the seller that your offer is the best offer he is going to receive. Use this to your advantage and make offers that are good for you.

7. There is no such thing as an embarrassingly low offer

When it comes to a property that has been sitting with no action, there is no such thing as an offer that is too low. Some agents will tell you that that you could offend the seller or that your offer is embarrassing. A good agent will encourage you to make strategically low offers. Offers are really not a lot of work and the worst thing that can happen is that your offer is not accepted. Often, however, in a buyer’s market a low offer will turn into a counter-offer. Think of the first offer as the starting point for negotiations and be prepared to consider counter-offers.

8. Online real estate companies can save you money

Over the past decade, online real estate companies have started to take market share away from traditional brick-and-mortar agencies. They’ve grown by offering discounts and rebates on the traditional 3% real estate commission. RedFin, one of the leading online real estate companies, offers buyers a rebate of up to 50% of the commission at close. RedFin also compensates their agents with salary as opposed to commission, which alleviates some conflict of interest issues. Granted, the service may not be as extensive or personalized — but the extra cash may offset the drawbacks.
Categories: Business, Real Estate

2011 Cambodia can export high quality, and hug quantity rice to supply to other countries

June 8, 2011 Leave a comment
Surplus of 2 million tons of rice in Cambodia can be a good position in exporting oversea….

Photo by: leolaksi’s photostream
With the recent effort from the Cambodia Royal Government, the high quality of the Cambodia rice herself and setting up of the international standard of rice millers. These factors lead Cambodia to get more and more attraction from rice importers from French, Poland, Russia, Sweden, Netherlands, New Zealand, China, America, and Africa. Significantly, the importers and wholesalers have repeated in larger quantity their purchase order after the first shipment done. This is because the importers have been accepted not only the high quality of Cambodia Rice, but also the huge quantity that is available to buy from Cambodia.

The history shows that Cambodia is in the good position to supply from the premium fragrant rice to the normal white rice to the world. As the matter of fact, Cambodia has been exporting paddy rice and rice to Thailand, and Vietnam over two decades. And the exported paddy rice/ and rice are good in term of their quality, and are re-exporting to many developed countries. From the study research, And the export has been done through the Northwest Cambodia (Those provinces are: Pursat, Battambang, Bontheaymeanchey), and Southeast Cambodia (Takeo, Prey Veng, Svay Reng, Kandal, Kompong Cham) and much more.

In the first quarter of 2011, the leading exporting types of rice are: Cambodia Jasmine Rice, Cambodia Romdul Rice, Ginger Rice, and Cambodia White Rice.

Note:

13 percent is reserved as the seed for the growing in next season : 1,072,429MT

Paddy Rice remains for consumption : 7,177,023MT

Total Rice after milled : 4,593,295MT

Local consumption : 2,076,542MT

Remaining rice for exporting : 2,516,752MT

From the above chart, we can draw out the conclusion that Cambodia is now ready and in the good position to export over 2 millions tons of rice to other countries.

Find our more for rice in Cambodia and inquiry: www.cambodiaorganic.com/

OSK looks to tap Cambodian securities market

June 8, 2011 Leave a comment

KUALA LUMPUR, June 7 — OSK Investment Bank is hoping to tap opportunities in the Cambodian securities market with the official launch of its local securities unit OSK Indochina Securities in Phnom Penh today.
Cambodia Deputy Prime Minister Keat Chhon (third from left) with Malaysian Ambassador to Cambodia Datuk Pengiran Mohd Hussein Pengiran Mohd Tahir Nasruddin (third from right) and Nik Mohamed Din (fourth from right) together with senior officials from OSK Investment Bank and the Securities Exchange Commission of Cambodia at the launch of OSK Indochina Securities Limited in Phnom Penh.
OSK Indochina Bank and OSK Indochina Securities chairman Datuk Nik Mohamed Din said in a media statement that OSK hopes that it will be able to support and participate in the Cambodian government’s initiatives to develop its capital market, and also enhance OSK Indochina Bank’s role in the financial services industry in Cambodia.

OSK Indochina Securities, which received its securities licence from the Securities and Exchange Commission of Cambodia (SECC) in October last year, is a wholly-owned subsidiary of OSK Indochina Bank which in turn is a 100 per cent subsidiary of Kuala Lumpur-based OSK Investment Bank.
OSK Indochina Bank was established in October 2008 and currently has nine branches in Cambodia.
Other than Cambodia, OSK Investment Bank also maintains a presence in Singapore, Indonesia and Hong Kong and expects to enter the Thai market upon completion of the acquisition of a 48.87 per cent stake in BFIT Securities Public Co.
By Lee Wei Lian

Thai Businesses Cancel Investments in Cambodia

June 7, 2011 Leave a comment

The Board of Investment will review a total of nine investment applications with a value of over 20 billion baht today. 

The board will also evaluate the effects of the Thai-Cambodian border dispute on Thai investments in the neighboring country.

The Board of Investment or BOI met this afternoon to discuss the impacts of the Thai-Cambodian border dispute on Thai investment. 

During the meeting, chaired by acting Prime Minister Abhisit Vejjajiva, it was reported that the effects from the recent border clashes have been minimal. 

However the border clashes have derailed some Thai investment projects such as the construction of a sugar manufacturing plant in Oddar Meanchey Province in northwestern Cambodia. 

The project was suspended after the Thai staff were recalled back to Thailand for safety reasons. 

In addition, the Hong Seng Group, Nice Group, Hi-Tech Group and Thong Thai, which are some of Thailand’s largest garment manufacturers, have decided to set up plants in Vietnam instead of Cambodia. 

Meanwhile, the board is reviewing a total of nine different projects worth over 20 billion baht this afternoon. 

Some of the projects include investment plans in steel beams, glass bottles, paper fibers and natural gas production.
TAN Network

Nidec chief talks investment in Kingdom’s tech manufacturing

June 2, 2011 Leave a comment
REPRESENTATIVES from Japan’s Nidec Corporation had met with Prime
Minister Hun Sen to discuss setting up manufacturing in Cambodia, the
premier’s personal assistant, Eang Sophalleth, said.

Nidec Corporation chief executive officer Shigenobu Nagamori in 2010. He
spoke with Prime Minister Hun Sen on Tuesday, raising the possiblity of
investing in Cambodia. BLOOMBERG

Speaking
after a meeting between Hun Sen and Nidec chief executive officer
Shigenobu Nagamori, Eang Sophalleth said the firm was looking to the
Kingdom after investing in Vietnam and Thailand.

“I travelled to
Cambodia this time to express my willingness to invest in this
technology [here],” Eang Sophalleth quoted Nagamori as saying.

Nidec Corporation manufactures mid-size motors, fan motors and pivot assemblies for the IT industry.

It operates in 28 countries, has about 130,000 employees and earned revenues of US$8.5 billion in the latest fiscal year.

Hun
Sen expressed his support for the investment, and urged further
discussions with the Council for the Development of Cambodia, Eang
Sophalleth said.

“He has an absolute intention to invest in Cambodia, though more talks need to be done,” he added.

CDC deputy secretary-general Duy Thov said Japanese investment in Cambodia would step up in the future.

“We
have established a joint commission between Japan and Cambodia to boost
investment, and we have compromised and provided incentives,” he said.

CDC
investment figures show there were no Japanese investments receiving
approval in 2010, while Japanese investments in Cambodia in 2009
totalled US$5 million.

Nidec competes with Minebea in the manufacture of motors for hard drives, according to Reuters.

Minebea,
which broke ground on its own $60 million factory in the Phnom Penh
Special Economic Zone on May 24, aims to wrap up construction on the
site at the end of 2012.

 

Tourism potential seen in Beautiful Bay status

June 2, 2011 Leave a comment

Cambodia is counting on a designation bestowed on its coast to increase investment in its beachfront, as statistics show an overall double digit percentage increase in visits to the Kingdom over the first four months of 2011.

Photo by: Ellie Dyer

A man walks through the surf at Ochheuteal beach in Sihanoukville town in February. Ministry officials hope a title recognising the coast’s beauty will increase tourism.

The Kingdom’s 450 kilometre coastline between Koh Kong and Kep would become the second largest tourist draw behind the Angkor temples, Minister of Tourism Thong Khon said Tuesday, as he returned from 

Senegal with official recognition that Cambodia’s coast had joined the Most Beautiful Bays in the World club.

The ministry is seeking private investment from developers, aiming to raise incomes through increased tourist visits.

“If the beaches are developed well, our people will earn more money from tourists,” he said.

Along with having an attractive natural environment, becoming a member of the club requires the country to show potential for economic development and have the means of protecting its natural resources, Thong Khon said.

Meanwhile, the Tourism Working Group for the six Greater Mekong Subregion countries, including Cambodia, met in Pakse last week, aiming to promote and develop the tourism industry in the region.

The overall performance of GMS tourism has been impressive over the past decade, but its contribution to economic growth and heritage protection is held back by several constraints, an Asian Development Bank press release said.

“Some of these constraints include limited institutional capacity and human resources to plan, develop and manage socially responsible tourism and safeguard heritage assets,” said Chong Chi Nai, ADB Country Director to Lao PDR Resident Mission. “GMS countries will need to make substantial investments in human resources and infrastructure to sustain tourism growth and manage its negative impacts.”  

More than a million foreign visitors arrived in Cambodia in the first four months of the year, an increase of 13.2 percent compared to the same period last year, according to statistics from the Ministry of Tourism.

Vietnam was the largest overall source in foreign arrivals, and increased 13 percent year-over-year. 

South Korean and Chinese tourist numbers were number two and three, with increases of 22.5 percent and 34.4 percent respectively, the statistics show.

Thai tourist numbers, however, fell 35.5 percent in the first four months of the year, according to the statistics. Fighting has broken out on the Cambodia-Thai border in February and again in April.

“We’re not stopping them [Thai tourists] from coming,” Thong Khon said. “We welcome all international visitors to the Kingdom.”