Cambodian Online News November 1-15, 2004

November 2, 2004 - Cambodian PM leaves for trade fair in China

Cambodian Prime Minister Hun Sen left Cambodia Tuesday for a four-day trip to China to attend the China-ASEAN Expo. Heading a 20-member delegation, Hun Sen said before boarding the plane that the "Expo is important as that will push better relations between ASEAN and China." The presence of Cambodia, Laos, and Myanmar at the forum will reflect the full integration into the region, he said. According to the schedule, the China-ASEAN Expo will be held in south China's Nanning city from Wednesday to Saturday. While staying in China, Hun Sen will attend a number of meetings with delegations from other nine-member states of Association of Southeast Asian Nations (ASEAN) and China to discuss trade issues, according to his cabinet staff. China is one of the main dialogue partners with ASEAN, particularly on economic cooperation.

November 2, 2004 - ANZ plans Cambodia bank

ANZ Banking Group Ltd is teaming up with Cambodian mobile phone company Royal Group to establish a joint venture bank in Cambodia. The agreement follows an approach earlier this year by Royal Group, Cambodia's leading mobile telecommunications company, to ANZ. The new bank, to be known as ANZ Royal Bank Cambodia Ltd, will focus on providing retail banking services to support the 700,000 foreign tourists who visited Cambodia annually and ANZ's multinational clients who operated in Cambodia. ANZ will contribute $US9.9 million for a 55 per cent stake and Royal Group will take the remaining 45 per cent. Initially services would be provided in Cambodia's capital, Phnom Penh and Siem Riep, the site of Angkor Wat. ANZ chairman Charles Goode, who announced the new venture at a signing ceremony in Phnom Penh, said the bank will complement ANZ's existing presence in 11 other Asian countries. "The joint venture will create a leading retail banking presence and introduce modern payment systems to Cambodia and assist the nation's economic development," Mr Goode said. ANZ group managing director Asia-Pacific Elmer Funke Kupper said the venture is a win-win opportunity for Cambodia, Royal Group and ANZ.It creates the opportunity to bring modern banking systems and services to Cambodia to assist the nation's economic development and a new business for Royal Group," Mr Funke Kupper said."It provides a further growth option for ANZ at low risk, based on our experience in developing banking services in emerging economies."ANZ chief executive John McFarlane hinted at the new venture when he addressed a luncheon last week on the bank's growth plans in Asia.He said then that ANZ was sizing up Cambodia where there are only 120,000 bank customers out of a population of 14 million.Mr McFarlane said that while Cambodia remains one of the world's least developed economies, its economy has performed relatively well with annual growth rates averaging six per cent over the past five years.Shares in ANZ reversed nine cents to $20.56 on Tuesday in a weak banking sector.

November 2, 2004 - ANZ Bank Starts Venture With Royal Group of Cambodia (Update2)

Nov. 2 (Bloomberg) -- Australia & New Zealand Banking Group Ltd., the third-largest Australian lender, will start a bank in Cambodia through a venture with Royal Group. ANZ Bank will own 55 percent of the venture with Royal Group, a closely-held Cambodian telecommunications company, and will contribute $9.9 million of capital, Melbourne-based ANZ said. ANZ Royal Bank Cambodia will focus on retail services to support the 700,000 foreign tourists who visit Cambodia each year and ANZ's multinational clients who operate in Cambodia. It will have branches in Phnom Penh and Siem Riep, the site of Angkor Wat. ``ANZ has developed the opportunity as part of its strategy to establish a small portfolio of lower-risk, consumer-focused growth options in Asia,'' Elmer Funke Kupper, ANZ's group managing director for the Asia-Pacific, said in a statement. Last week, the ANZ Bank said it signed an agreement to provide risk-management and technology assistance to Shanghai Rural Credit Cooperatives Union, and plans to buy 19.9 percent of the Chinese lender next year after it incorporates as a bank.

November 1, 2004 - Delicate dance for Cambodia king

November 1, 2004 - CAMBODIA: Hytex To Double Production With New Cambodian Factory

Malaysian Garment manufacturer Hytex Integrated Bhd is planning to double its production capacity with the opening of a second factory in Cambodia, to meet increased demand when textile quotas expire next year. The company, whose customers include sports giants Nike and Puma, says the factory will have the capacity to procuce 350,000 items a month – the same as its existing Cambodian factory, and will make garments for the European and US markets. Hytex said it chose Cambodia because of its cheap labour, and the confidence people have in products and delivery from the country. The company will open its US$25 million factory in the Jiangsu province of China before the end of 2005, and has also said that it will increase the capacity of its Malaysian manufacturing operations.