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Monthly Archives: October 2010

Deregulation encourages overseas investment in Cambodian real estate

The new law permitting foreigners to own up to 70% of a Condominium complex has helped increase investment in Cambodia’s property market. In the residential market, developers have experienced a boost in condo and villa sales from investors expecting an attractive rental yield. Furthermore, since the sub-decree was passed, a number of Korean investors have obtained licences to build villas, apartments and condos to increase the housing supply within the next 3-5 years.

The law compares favourably with other countries in Asia such as Thailand where foreigners are only allowed up to 49% of a condominium block and in Vietnam where only a long leasehold title is available. Farther afield, the Hong Kong government announced plans to remove the long-established right of foreigners right to residency if they purchase property.

Deregulation forms part of the government’s overall strategy to encourage more overseas investment into the Cambodia property market to complement its already flourishing tourism and export sectors.

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Air France to offer direct flights to Cambodia

Air France plans to resume direct flights from Paris to Phnom Penh for the first time in 35 years. The proposed move has the support from both the French ambassador and Prime Minister, Hun Sen.

Currently, visitors from Europe have to take connecting flights to Phnom Penh from Thailand, Malaysia or Vietnam which can be time-consuming and expensive.

European tourists and entrepreneurs will be pleased to hear this news as it will mean a reduction in travel time. It will also encourage more tourists from Europe to visit Cambodia.

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Profits rise in Cambodia’s biggest banks

Cambodia’s two largest banks, Canadia and ACLEDA, reported substantial profit increases for the second quarter of the financial year compared to the previous three months. Canadia’s profits rose by 14% while ACLEDA’s grew by 29.6%.

Both banks attributed the profits rise to the strong performance of the tourism, garment and agricultural sectors. The increased income will encourage the banks to lend more to businesses to enable further expansion.

This news demonstrates investors’ trust in Cambodia’s banking and financial institutions which only adds to the continuing positive economic outlook for the Kingdom.

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Profits rise in Cambodia's biggest banks

Cambodia’s two largest banks, Canadia and ACLEDA, reported substantial profit increases for the second quarter of the financial year compared to the previous three months. Canadia’s profits rose by 14% while ACLEDA’s grew by 29.6%.

Both banks attributed the profits rise to the strong performance of the tourism, garment and agricultural sectors. The increased income will encourage the banks to lend more to businesses to enable further expansion.

This news demonstrates investors’ trust in Cambodia’s banking and financial institutions which only adds to the continuing positive economic outlook for the Kingdom.

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ADB touts Cambodia’s strong economic prospects

The Asian Development Bank (ADB) has upwardly revised its 2010 growth forecasts for Cambodia, boosting them from 4.5% to 5%. The success enjoyed by the agricultural, garment and tourism sectors were the main reasons cited for the predicted increase in the higher forecasts.

The report also focused on the benefits generated by the growing Chinese investment into the Kingdom. In the first six months of 2010, Chinese investment in Cambodia increased by 119%, compared to the same period last year.

On a related matter, the US has announced it is pledging an additional $17 million to its current economic assistance program for Cambodia. The additional funds will focus on improving agricultural production and on helping small and medium-sized enterprises (SMEs) to expand.

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