Retail News CRM

Tag: Cambodia

  • Wines and spirits contribution to LVMH luxury business

    Wines and spirits contribution to LVMH luxury business

    It has been a bubbly nine months for the LVMH luxury business – with the exception of its wines and spirits division, which was hampered by supply constraints.

    Revenue grew by 14 per cent for the period to reach €30.1 billion (US$35.4 billion).

    With organic revenue growth of 12 per cent, the third quarter continues the trend for the year, says the group. The revenue increase was despite a negative currency impact of 5 per cent and a positive structural impact of 7 per cent, reflecting the integration of Christian Dior Couture.

    All business groups recorded double-digit organic growth, with the exception of wines and spirits where growth was 8 per cent. Champagne volumes were up 4 per cent, with particularly strong demand in Europe and Japan. Hennessy cognac had a volume increase of 9 per cent despite a third-quarter decline related to limited supply.

    LVMH’s selective retailing business group had organic revenue growth of 12 per cent. Online sales grew at a steady pace, and DFS had sustained growth, particularly in Hong Kong and Macau. The T Galleria store in Cambodia has also developed well, says the group.

    Organic growth of 14 per cent was recorded by the fashion and leather goods business group. It attributes this to innovation, such as the launch of Louis Vuitton’s first smartwatch.

    “The qualitative development of the distribution network continues, as illustrated by the opening of the Maison Louis Vuitton Vendome in Paris, which brings together under one roof all the savoir-faire of the maison,” says the group.

    Highlights during the period included Fendi opening stores in the US and Rimowa being consolidated. Donna Karan was sold at the end of last year.

    There was also 14 per organic growth in perfumes and cosmetics. Perfumes benefitted from the launch of the eau de parfum Miss Dior. Guerlain rolled out Mon Guerlain fragrance internationally, and Fenty Beauty by Rihanna had an “exceptional” start.

    Watches and jewellery had 13 per cent organic revenue growth, with Bulgari achieving “a remarkable performance” with the rapid growth of its signature jewellery collections Serpenti, Diva and B.Zero1.

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  • Vietnamese retailers look to foreign retail markets

    Vietnamese retailers look to foreign retail markets

     

    In late June, The Gioi Di Dong JSC, which owns the largest mobile phone distribution chain in Vietnam, opened its first shop in Phnom Penh, Cambodia. The shop in Cambodia is named BigPhone, but it has a brand identity like The Gioi Di Dong shops in Vietnam.

    The Gioi Di Dong hopes it can earn $100,000 a month from the first shop, and plans to open 10-15 shops in Cambodia this year.

    A senior executive of Pico, a home appliance distribution chain, in early 2016 told the press that the chain was considering penetrating markets like Myanmar, Laos and Cambodia. Of the neighboring markets, Myanmar is the first choice because of favorable conditions of the market: it is easy to find retail premises, and there is less competition.

    Nguyen Ngoc Hoa, when he was chair of Saigon Co-op, affirmed the importance of foreign markets for Saigon Co-op, saying that the retail chain targets Laos and Cambodia for its plan to expand the network.

    “The most important thing in implementing the expansion plan is that Saigon Co-op find reliable partners in doing business overseas,” he said.

    A senior executive of Pico said he can see that there would be both economic and non-economic barriers in the Cambodia and Myanmar markets. He said it would take time to learn about the consumption habits, local culture, the laws and economic factors of the target markets.

    Ho Viet Dong, CEO of The Gioi Di Dong in Cambodia, said though the retail chain has good relations with mobile phone manufacturers, it still faces difficulties in doing business in Cambodia.

    “The mobile phone market here is very complicated,” he said. “Besides, the training of the labor force for long-term business plan also needs consideration.”

    Meanwhile, according to Saigon Co-op’s CEO Nguyen Thanh Nhan, the plan to open a supermarket in Cambodia has been delayed because of the change of the Cambodian partner.

     

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  • Cambodia’s Smart Axiata launches 4.5G

    Cambodia’s Smart Axiata launches 4.5G

    Cambodia’s Smart Axiata has launched 4.5G mobile connectivity in the country in collaboration with Huawei.

    The launch supports speeds 10 times faster than those available over normal 4G, the companies said.

    Smart Axiata will also potentially be able to use the technology to introduce new services including wireless home broadband and IoT services for residential and business customers. The deployment also marks part of Smart Axiata’s evolution to 5G.

    “I’m very pleased that together with Smart, we are able to build a better connected Cambodia through accelerating the mobile broadband development,” Huawei Cambodia CEO Margaret Hu said.

    “With increasing demand for personalized and diversified services, emerging markets represent tremendous new opportunities for the telecom operators. Huawei is committed to supporting operators seize new opportunities by driving sustainable development in emerging markets.”

    Smart Axiata is Cambodia’s top mobile operator with a market share of an estimated 57% as of last year. The company recently secured a $66 million investment from Japanese conglomerate Mitsui & Co and an affiliate, which secured a 10% stake in return. But Smart Axiata’s parent company Axiata Group has committed to maintaining a majority stake in the venture.

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  • Tim Ho Wan Cambodia launches in Aeon Mall

    Tim Ho Wan Cambodia launches in Aeon Mall

    Tim Ho Wan Cambodia has launched its first Hong Kong dim sum outlet at Aeon Mall Phnom Penh, drawing on the brand’s roots as the “world’s cheapest Michelin-starred restaurant”.

    Its officially launch follows a five-day soft opening that attracted about 700 diners a day, according to Tim Ho Wan Cambodia GM Chum Phirun.

    Starting as a hole-in-the-wall eatery in Hong Kong’s Mong Kok district in 2009, Tim Ho Wan earned a Michelin Star in 2010, being the least expensive restaurant on the planet at the time for the French dining guide.

    With this reputation, the outlet soon became a chain, expanding to 45 locations in Asia, Australia and the US. Despite this success, the restaurant failed to catch on in Malaysia.

    Openings in Singapore and New York attracted queues, with customers waiting up to three hours for a table. However, Phirun says few Cambodians are aware of the dim sum chain’s fame or the significance of a Michelin Guide rating.

    “The income of Phnom Penh residents is growing rapidly, and many people are now seeking hygienic, high-quality food, so we want to educate them on the advantage of a Michelin-starred restaurant like Tim Ho Wan.”

    While two Hong Kong branches of the chain have a Michelin Star, the 33-table restaurant in Phnom Penh does not. It serves 24 varieties of dim sum, and Phirun says there are plans to open two more branches in the city next year.

    Founders Mak Kwai Pui and Leung Fai Keung were brought to the official launch by Tim Ho Wan Cambodia director Seak Guech.

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  • AirAsia now flies direct to Sihanoukville

    AirAsia now flies direct to Sihanoukville

    Malaysia-based  low cost carrier AirAsia officially launched its first direct flight from Kuala Lumpur to Sihanoukville International Airport yesterday to cater to the increasing number of tourists keen to visit Cambodia’s coastal areas and enjoy its beaches.

    The inaugural AirAsia flight, with 180 passengers onboard, landed at 1:00 PM and returned back to Kuala Lumpur 40 minutes later, according to a Cambodia Airports press release.

    AirAsia’s four times weekly flights from Kuala Lumpur to Sihanoukville is its third route into Cambodia, with the airline flying daily to Phnom Penh and Siem Reap.

    Spencer Lee, commercial head at AirAsia, said that with the expansion of the airline’s services to Cambodia, AirAsia has become one of the key players in the kingdom’s tourism sector.

    “We are thrilled that our first flight to Sihanoukville marked a milestone with a successful full flight for our 50th unique route. As a truly Asean airline, it is our commitment to drive tourism efforts to all countries that we operate in – especially within the region,” said Mr Lee. 

    “This coastal city in Cambodia presents great potential and dynamic opportunities in terms of tourism, trade and economy. We are happy to be a part of this journey to develop Sihanoukville further,” he added.

    “Our footprint in Cambodia to date would not be possible without the help from local parties and we would like to thank the Cambodian airport authorities for their tremendous support.

    “With Sihanoukville added into our extensive network map of over 120 destinations, we hope to enable this city to be a popular tourist destination that enables travellers from the region to experience a hidden side of Asean that has yet to be discovered.”

    Mr Lee said AirAsia aims to develop Sihanoukville to become a tourist hotspot like how it has introduced unique destinations such as Luang Prabang in Laos, Indonesia’s Banda Aceh and Bhubaneswar in India.

    “Travellers looking to bask in the sun and enjoy the waters can look to the unspoiled tropical island of Koh Rong Samloem for beautiful sandy beaches, jungle mountains, mangrove and marine life. While the most popular beach in Sihanoukville, Ochheuteal Beach, boasts a late night scene with restaurants and bars.”

    Eric Delobel, CEO of Cambodia Airports, said that AirAsia’s direct flights to Sihanoukville would better facilitate Cambodia’s connectivity to all parts of the world.

    “Our successful partnership with AirAsia is moving up another step and it is a key driver in connecting Cambodia to the world,” he added.

    Mr Delobel said Cambodia Airports was keen to attract more airlines to Sihanoukville and for that reason it would inaugurate in early 2018 a new airport terminal and at the same time renovate the airport runway to cater to bigger aircraft.

    Taing Sochet Krisna, director of Sihanoukville provincial tourism department, said that AirAsia will help to promote the image of the country’s coastal area and attract more tourists, investment and trade.

    “Now tourists will be able to fly directly to my province,” he said.

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  • Axiata, iflix sign non-binding MoU

    Axiata, iflix sign non-binding MoU

    Axiata Group and iflix, a subscription video on demand service provider, have inked a non-binding Memorandum of Understanding (MoU) relating to the expansion of their strategic collaboration to provide entertainment to Axiata’s more than 125 million customers in six countries.

    In a statement, Axiata said from two existing successful partnerships with Celcom in Malaysia and Dialog in Sri Lanka, the regional collaboration is intended to extend to Axiata’s customers at XL in Indonesia, Smart in Cambodia, Robi in Bangaldesh and Ncell in Nepal.

    “Axiata has always demonstrated a strong focus on customer experience and innovation, as we strengthen our position in new sources of value, specifically in digital entertainment products and digital content distribution platforms across the region.

    “The expansion of our collaboration with iflix is a testament to that commitment. We are thrilled to make iflix’s world-class service and content available to over 125 million customers in Malaysia, Indonesia, Bangladesh, Cambodia, Nepal and Sri Lanka,” Axiata group chief strategy and marketing officer Dominic Arena said.

    Axiata said the collaboration would further strengthen the group’s leading regional telecommunications position.

    Meanwhile, iflix group chief executive officer Mark Britt said it was committed to provide all Axiata customers with unlimited access to the world’s best TV shows and movies through an exceptional user experience and unparalleled service, already enjoyed by Celcom and Dialog customers.

    “Together with Axiata’s highly innovative and award winning Mobile Internet Fulfilment Exchange application platform and music service Yonder, we look forward to working with Axiata to further redefine media and entertainment for Axiata’s customers in Malaysia, Sri Lanka, Indonesia, Cambodia, Bangladesh and Nepal, over the coming months,” he said.

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  • Aeon to open second Cambodia mall in 2018

    Aeon to open second Cambodia mall in 2018

    Japanese group Aeon is expanding its presence in Cambodia with a new location, Aeon 2, announced for 2018.

    Covering 70,500 square metres of retail space, it will be the second Aeon Mall in Cambodia. The exact location has not been disclosed, nor has a date been given for completion.

    According to local media, Cambodian retailers are hailing the entrance of Aeon in 2014 as a huge success, saying its “high standards” are having a positive impact on the Kingdom’s retail sector.

    “Aeon is the first international mall operator and developer in Phnom Penh, and they have set an industry standard and expectations for other such malls in Cambodia,” said Cambo-Sia CEO, Daniel Li.

    “The demand for entry into Aeon is very high, and there is a waiting list for brands wanting to make a debut in the mall.”

    Aeon Mall, the first large-scale modern shopping mall in Cambodia, recently celebrated its third year of operation in the Kingdom.

    CBRE’s first-quarter real-estate report said prime retail rents for malls have dropped by 0.9 per cent compared to the previous quarter, averaging US$31.1 a square metre per month. Prices gained 1 per cent year-on-year.

    The second half of last year, prime rental prices in Cambodia ranged from $32 to $70 a square metre per month, according to a Frank Knight report. The upscale Vattanac Capital mall held highest priced leases for its 5000 square metres of retail space, said the report.

    Looking forward, the retail sector in Cambodia is set to further evolve over the next three years as the total modern retail space could surge from the current 212,000 square metres to 582,000 square metres.

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  • Au Bon Pain bakery bound for Cambodia

    Au Bon Pain bakery bound for Cambodia

    The Au Bon Pain bakery chain is to expand into Cambodia, Laos, Myanmar and Vietnam by the end of the year, to serve growing middle classes in the region.

    The expansion was announced by Mudman Plc, the authorised Thai franchisee of the Au Bon Pain bakery chain, and international retail food brands including Baskin Robbins and Dunkin’ Donuts. The firm said the development is intended to capitalise on increasing consumer purchasing power and the strong economies in the Cambodia, Laos, Myanmar and Vietnam (CLMV) market.

    Nadim Xavier Salhani, chief executive of Mudman, was quoted in the Bangkok Post as saying the company recently won rights from ABP Corporation, the owner of Au Bon Pain in the US, to open branches of the bakery in the CLMV market.

    “The company is considering forming a joint venture with local partners or investing on its own in CLMV. The investment model will be finalised by year-end, while the expansion of Au Bon Pain bakery chain into the CLMV market reflects the market’s potential.” said Salhani. “Mudman expects to open the first Au Bon Pain branch in Cambodia or Vietnam by the end of this year or next.”

    Express Food Group general manager Virak Tep told Khmer Times there is plenty of room for coffee and bakery chains to expand into the Cambodian market. He added that many international brands are entering into Cambodia, with the notable exception of McDonald’s. “I think Au Bon Pain is a good brand and with strong potential for a franchiser who wishes to bring it to Cambodia,” said Virak.

    Salhani said purchasing power is increasing due to economic stability and growth in the CLMV, while international brands are popular among younger people.

    Sales volumes in the food and beverage sector in Cambodia is rising at about 10 percent year-on-year, attracting many international franchises, according to Virak.

    “Cambodian consumer trends show increasing preference for international brands from Thailand, Korea, Vietnam, Singapore, Malaysia and the US. As long as the taste of the food or drink meets their expectations, they will go for those brands,” said Virak. He added his company will open another outlet of the chain restaurant Bar B Q Plaza in Cambodia by the end of this year.

    Hem Samnang, area manager of BreadTalk Cambodia, a franchise brand from Singapore, agreed that coffee and bakery chains have room to grow in Cambodia. He said consumer awareness of international brands has been getting better over the past decade, as peoples’ incomes have gone up.

    “Purchasing power in cafes and bakeries is rising day by day, both among youths, middle-aged people and families,” said Samnang said. “Cambodia still has more opportunities for international brands to enter the market as the country’s GDP is rising. I cannot say Au Bon Pain will be my competitor until I see their products.”

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  • AirAsia Cambodia to debut soon

    AirAsia Cambodia to debut soon

    Asia’s largest budget airline AirAsia, headquartered in Kuala Lumpur, plans to open a subsidiary company in Cambodia to handle an anticipated increase in the number of passengers travelling to Phnom Penh, Siem Reap and Sihanoukville from Malaysia.

    The subsidiary, said the Minister of Public Works and Transport Sun Chanthol yesterday, would be named AirAsia Cambodia.

    “The purpose of forming AirAsia Cambodia was brought up by AirAsia CEO Tony Fernandes in his meeting with Prime Minister Hun Sen last week at the sidelines of the World Economic Forum on Asean,” said Mr Chanthol.

    “Mr Fernandes told the prime minister that AirAsia Cambodia, as AirAsia’s new subsidiary company, would be needed to handle an increasing number of air travelers from Malaysia to Phnom Penh, Siem Reap and Sihanoukville,” he added.

    “The prime minister, in turn, replied that he was behind Mr Fernandes’s decision 100 percent.”

    Mr Chanthol said AirAsia’s decision to start a new subsidiary company in Cambodia reflected the aviation industry’s confidence in the country’s open skies policy.

    “Cambodia’s open skies policy promotes Asean connectivity and this in turn allows more goods to be transported and more people to travel to other countries,” he said.

    When asked by reporters when AirAsia Cambodia would start up in the country, Mr Chanthol said the proposal was now with the Council of Ministers for approval.

    The decision to form AirAsia Cambodia came after Mr Fernandes announced at a press conference on Thursday that his airline plans to launch a new service from Kuala Lumpur to Sihanoukville city.

    “There will be four AirAsia flights a week from Kuala Lumpur International Airport 2 to Sihanouk International Airport on the Airbus 320,” he said. The first flight is scheduled for August 9.

    Mr Fernandes said he recognised the potential of Cambodia’s international airports to handle an increased number of arrivals from overseas.

    “We think the Cambodian air travel market could be lucrative and the timing to expand our routes is perfect,” he said.

    AirAsia currently flies daily from Kuala Lumpur to Phnom Penh and Siem Reap.

    “We hope in time to come that people may come to Phnom Penh and then go to Sihanoukville,” Mr Fernandes said.

    “We are about to invest for the long term and see huge potential in these airports.

    “It is about connectivity and I think one of the most important aspects is for the people of Sihanoukville to have another option to fly.

    It is not just about tourism. We also hope small businesses can benefit by expanding their businesses into Asean.”

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  • Launch of inaugural Café Cambodia 2017 and Franchise & Licensing Cambodia 2017

    Launch of inaugural Café Cambodia 2017 and Franchise & Licensing Cambodia 2017

    Phnom Penh took center stage as the host for the inaugural Café Cambodia 2017 and Franchise & Licensing Cambodia 2017. The exhibitions mark one of largest gathering of visitors from the local business community and the region and members of the coffee industry including baristas, café and coffee purveyors, coffee roasters, equipment distributors and members of the public. Malaysia is the shows’

    Official Country Partner, supported by Perbadanan Nasional Berhad (PNS). The inaugural shows were officially opened by His Excellency Cham Prasidh, Senior Minister, Ministry of Industry and Handicraft, Cambodia. The official opening this morning was also graced by the presence of Yang Berhormat Dato’ Henry Sum Agong, Deputy Minister, Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC),Malaysia, Dato’ Sri Hasan Malek, Malaysia Ambassador to Cambodia, Yang Berbahagia Dato’ Sri Jamil bin Salleh, Secretary General, Ministry of Domestic Trade, Co-operatives and Consumerism, Malaysia and His Excellency, Mr Pak Sokhom, Secretary of State, Ministry of Tourism, Cambodia.

    Franchise and Licensing Cambodia 2017 and Café Cambodia 2017 offer exhibitors and participants a hub and a B2B platform for key decision makers to source for new business opportunities and explore new collaborations. Franchise & Licensing Cambodia 2017 will showcase well known Asian and international brands in various industries such as F&B as well as the educational and services sectors.

    This hub also serves the industry as a source for café supplies and equipment to cater to the demands of the rising number of specialty coffee drinkers. The show will gather coffee and tea industry players showcasing products such as coffee beans, specialty coffee, specialty tea and beverages, juices, coffee machine, roasting machines and equipment.

    Cambodia has enjoyed steady economic growth in the last two decades. This growth, the favourable investment climate, supportive infrastructure, the presence of established banking and financial institutions and a large domestic consumer market of 16 million population are important reasons why the two shows are timely and will be well received as Cambodia has been attracting an increasing number of international franchise brands and operators especially those in the food and beverage business.

    Café Cambodia plays host to the Cambodia National Barista Championship (CNBC) presented by Gourmet Beverage Solutions (GBS). This inaugural championship brings together Cambodia’s top baristas to showcase their talents and compete for the coveted title of National Champion. The competition focuses on promoting excellence in coffee and seeks to advance the barista profession regionally and globally.

    Positioned as the perfect place to meet coffee professionals of Cambodia and the ASEAN region and to understand the growth of Asia’s franchise, licensing and coffee industries under one roof, the shows boast of a comprehensive programme for visitors who can look forward to learn from franchising and licensing experts, attend an exciting line-up including live presentations, demonstrations and workshops on every aspect of the coffee, tea, gelato and baked goods industries. There is also an extensive range of specialty coffees and teas from around the world to sample. The 3-day exhibition will also be teeming with networking and business opportunities for trade visitors who are looking to elevate their business aspirations. Franchise & Licensing Cambodia exposition offers abundant opportunities for entrepreneurs and prospective franchisees to meet face to face with representatives of international brand concepts across various industries.

    Café Cambodia and Franchise & Licensing Cambodia are co-organized by Conference and Exhibitions Management Services (CEMS) with CamGlobe Business & Investment Consultancy, and are supported by the Cambodia’s Ministry of Commerce, the Ministry of Industry & Handicraft, and the Ministry of Tourism.

    Franchise and Licensing Cambodia is supported by Asiawide Franchise, Cambodia Franchise Association and World Franchise Associates. The Cambodia National Barista Championship is presented by Gourmet Beverage Solutions.

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  • Bold bid for expansion by Food Capitals

    Bold bid for expansion by Food Capitals

    Food Capitals, Thailand’s franchisee for Domino’s Pizza and South Korean fried-chicken restaurant chain Kyochon, has acquired two companies for THB400 million (US$11.6 million) in a bid to expand both domestically and overseas.

    It has spent THB289 million to acquire Osha Group’s food business in the US, with the remaining THB121 million for its takeover of Bangkok-based G Enterprise.

    California-based Osha has five restaurant brands – After Osha, Lao Table, Osha Express, Osha Thai and Osha Thai 3rd Street – while G Enterprise’s four restaurant brands are Chingcha Chalee, Moom Muum Park, Pirate Chambre and Umami Falabella.

    Food Capitals CEO Tanakorn Angpubate expects the acquisitions to boost the group’s revenue by more than 50 per cent from THB714 million last year – following five years of red ink.

    The company has also set aside THB200 million to open two restaurants in Thailand and another two in the US.

    Food Capitals’ brands include Domino’s Pizza in Thailand and Cambodia, Kyochon in Thailand, and Red Planet Hotels across Asia.

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  • Thailand’s Central Group set to build mall in Cambodia

    Thailand’s Central Group set to build mall in Cambodia

    Thai ambassador to Cambodia Nuttavudh Photisaro says Central representatives have already studied the proposed site, not yet revealed publicly.

    “By investing in a shopping mall, they hope the trade volume between the two countries will increase,” says Nuttavudh.

    CBRE Cambodia associate director Ann Sothida says shopping malls still have a chance to grow in Cambodia because the market has increased purchasing power and has only a limited number of shopping malls of international standard.

    Trade between Thailand and Cambodia eased by 6 per cent last year to US$5.6 billion. Cambodian exports to Thailand amounted to $936 million, while the country’s imports from Thailand amounted to $4.7 billion.

    Phnom Penh’s shopping centres comprise Aeon Mall, which is building a second outlet in the city, City Mall, Parkson and Soriya Mall.

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  • Malaysia-Cambodia-Thailand subsea cable launches

    Malaysia-Cambodia-Thailand subsea cable launches

    A new subsea cable connecting Malaysia, Cambodia and Thailand has been launched in Cambodia, adding at least 30Tbps of regional capacity.

    The Malaysia-Cambodia-Thailand (MCT) cable system was designed and deployed by Huawei Marine for Cambodia’s EZECOM, Telekom Malaysia and Symphony Communication of Thailand.

    The 1,300km cable system uses 100Gbps technology, and will connect to other submarie cable systems, including the Asia-America Gateway (AAG).

    Speaking at the launch of the system, EZECOM CEO Paul Blanche-Horgan said the launch is the culmination of six years of work. He said the launch of the cable will improve the security of Cambodia’s connection to the internet.

    “With this cable, we are now directly connected POP to POP, which means a much more secure connection for Cambodia. This is of great importance, as [Cambodian deputy prime minister and minister of interior] Samdech Krolahom does understand, for the context of national security as well as certain key sectors like banking.”

    Samdech Krolahom himself said that with the new cable, “Cambodia now has faster, more reliable, more affordable and, most importantly, a more secure internet connection for all.”

  • Warehouses coming to Laos, Cambodia gates

    Warehouses coming to Laos, Cambodia gates

    Viet Nam will have some 116 warehouses at the border gates with Laos and Cambodia by 2035, according to the Ministry of Industry and Trade.

    Under Decision 229/QD-BCT issued on January 23, the ministry said it would develop professional and modern warehouses with enough logistics services to keep import and export goods at these border gates.

    The warehousing system will promote sustainable development of import and export activities along the border lines, especially exports at border gates along border lines between Viet Nam and the two countries.

    According to specific targets of the plan, by 2025, the warehousing system will meet all demand of the area and have enough capacity to store import and export goods at the border gate regions.

    Eighty per cent of the warehouses will be required to provide important and necessary logistics services, such as storage, handling, inspection and implementation of customs procedures for import and export goods.

    The plan includes the upgrade or building of at least one warehouse at an international border gate region or a major border gate to meet the demand of import and export goods. All goods under the warehousing system will be inspected for quality, food hygiene, safety and other related standards.

    The ministry expected the plan to ensure stability and step-by-step promote growth of imports and exports at border gates along border lines between Viet Nam and the two countries.

    By 2035, all border gates along those border lines will have a completed warehousing system, including 116 existing and newly-built warehouses, to meet all warehousing demand for import and export goods and provide synchronous logistics services for promoting rapid and sustainable development of import and export activities, the ministry said.

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  • KBank unveils capital branch

    KBank unveils capital branch

    Kasikornbank (KBank), one of the largest banks in Thailand, officially unveiled its first branch in Phnom Penh with the aim of offering financial services to local businesses as well as corporate and retail customers.

    KBank entered the Cambodian financial market in November and initially, the branch’s objective was to facilitate Thai businesses in Cambodia in the area of corporate finance and fund mobilization for investment in infrastructure projects towards the production of garments and processed food.

    KBank services are available in Thai baht, US dollars and Cambodian riel for bilateral trade activities and other transaction services.

    KBank president Predee Daochai said the bank’s first injection of investment capital into Cambodia was $50 million and it will increase, based on bank performance and demand.

    Mr. Predee said recently that KBank’s loan portfolio was $2 million with a small amount of deposits. However, the bank expects to expand its loan portfolio to about 1.5 billion baht ($43 million) to corporate customers, local businesses and retail customers, both Thai and Cambodian, in the next three to five years.

    “We have to grow in terms of loans and deposits. Our loan portfolio is $2 million, but we have targeted that within the next three to five years, it should rise to two billion baht [$57 million] and we aim to have 800 million baht [$22.8 million] in deposits,” he said.

    “We can grow faster than that because there are many big Thai customers here since they came here many years ago. Most of them use our services in Bangkok so they are pleased to use our services here.”

    Mr. Predee said that KBank is not only looking to serve the financial sector in Cambodia, but also wants to help boost investment and trade between Cambodia and Thailand.

    He said if the first branch performs well, the bank will look to open a second branch in the country.

    Nattavudh Photisaro, Thai ambassador to Cambodia, said that KBank opened its representative office in Cambodia in February 2015, and had a soft opening of its Phnom Penh branch in November.

    He added that although KBank just officially unveiled its branch, it was no stranger to the Thai embassy in Phnom Penh as the bank had worked closely and has strong ties with the Thai diplomatic staff in Cambodia for the past couple years.

    “With KBank, Thailand has a total of four banks in Cambodia including Bangkok Bank, Krungthai Bank and Cambodian Commercial Bank. Now KBank has brought another Thai business to Cambodia,” he said.

    Mr. Nattavudh added that bilateral trade between Thailand and Cambodia reached $5.6 billion last year. He said several Thai companies have expanded their operations in Cambodia and more will follow.

    “I have always encouraged Thai businesses here to operate on three principles: mutual trust, mutual respect and mutual benefit. I think that Kasikornbank has taken these principles to implement here,” he said.