ADB raises growth estimate

THE Asian Development Bank said yesterday that it was confident in Cambodia’s growth prospects for the coming year, though it highlighted a number of risks that could threaten its otherwise positive outlook.

The ADB yesterday released its annual Asian Development Outlook report for 2011, predicting Cambodia’s gross domestic product would jump 6.5 percent this year, from its previous prediction for 2011 of 6 percent growth made late last year.

In yesterday’s report, it added Cambodia’s GDP had increased 6.3 percent in 2010, from its previous prediction of 5.0 percent.

Key industries, meanwhile, should remain strong over the coming year, the ADB said. 

“Based on our analysis of 2010, and our initial observations of developments in the first two months or so of this year, I think we must continue to be quite bullish on Cambodia’s continued growth process,” said ADB Senior Country Economist Peter Brimble at a briefing yesterday.

Phnom Penh Commercial Bank opened its second branch

PHNOM Penh Commercial Bank launched its second Cambodian branch yesterday. “With two branches having been established, it positively implies the success and gradual growth of the bank,” said its President Kim Yang Jin. The branch is located on Monireth Boulevard in the capital’s Chamkarmon district.

Phnom Penh Commercial Bank is 60 percent owned by Korea’s Hyundai Swiss Financial Group and 40 percent by SBI Holdings of Japan. National Bank of Cambodia Deputy Director General Chea Serey said the domestic banking industry was improving partly through the sound supervision of the Central Bank.

Export of Cambodian rubber to European market

Cambodian people are planting rubber trees after the price of rubber plantation is increasing in the last few years. In addition, buyers from European countries are needed to import Cambodia’s rubber and its price doubles. It is the price that never increased before.

Mak Kim Hong Chub Rubber Plantation President said that the price of rubber is US$5,400 per tones in Ho Chinh City this month, compared with US$2,500 a tonne a year ago. He also added that global supply was declining due to Thailand’s flooding. It is an opportunity for Cambodia’s exports.

Located in Kampong Cham province, Chub plantation rubber received a certification at international quality level in December 2010, which Mak Kim Hong has said allows it to export at higher prices and to more demanding customers. (Posted by Cambodian Economy)

Limited use of credit card in Cambodia

Due to the stability of politics and the growth of economy, banking industry is trusted by Cambodian people. They turn from keeping their money at home to keep it at commercial bank. In addition, commercial banks also established its branches in provinces and districts in order to make people easy to use their service. In addition, the number of banking is increasing from other countries such as Singapore, Malaysia, China, Vietnam, Japan and so on.

Recently, bankers reported that the number of credit card use in Cambodia is limited and most of people living in Phnom Penh and other urban centers are holding credit cards because they are the businessmen and the type of a middle class.

The absence of consumer credit histories and a centralized bureau makes the number of credit card use very low in the Kingdom of Cambodia. Education is important for increasing the number of credit card use.

The National Bank of Cambodia [NBC] released figures by showing that using credit-card loans amounted to US$6.5 million, only 0.2 percent, of the US$3.1 billion in the total loan in November 2010. What the NBC defines as loans for “personal essentials”, which include personal lending, credit cards and home mortgages, the number is 2 percent of the $297,437,750 total in lending for the month.