Cambodia Electricity prices, rice and garment production

Electricity purchases shown local supply short

The Cambodian government has released its first breakdown of energy
purchasing from neighboring countries, highlighting what officials say
is the importance of domestic power production and continued
investment in the sector.

Of the 500 megawatts of power consumed each year by Cambodia, 42% was
bought from Thailand, Laos and Vietnam.

The Kingdom's demand for power would increase by as much as 500%
during the next 15 years, reaching about 3,000 megawatts by 2025.

The high cost of electricity had stymied Cambodia's milled-rice and
garment-production capacity.

High priced power was the leading cause of un competitive milled rice exports.

The Kamchay hydroelectric dam-a $280 million investment by China's
Sinohydro Corporation is scheduled to open on December 6.

The dam, 112 meters high, will generate 193 megawatts a year.

Sinohydro has a 40-year contract to operate the dam.

(The Phnom Penh Post)

First leather furniture factory ever in Cambodia

DeCoro, one of the most highly renowned brands in the leather
furniture industry, has announced it is opening a new state-of-the-art
manufacturing facility in Phnom Penh, Cambodia.

Headed up by Chief Executive Officer Luca Ricci, DeCoro Cambodia Co.,
Ltd. will again focus on producing the finest quality, popular-priced
Italian-style furniture for global consumers. The new facility will
employ approximately 1,000 workers and is now fully operational.

DeCoro is the first leather furniture factory ever in Cambodia. In
addition to the jobs and general benefits it will create in the
country's capital and beyond, the company is making a direct effort to
improve the social welfare of Cambodian children by partnering with
Amici dei Bambini Association or Ai.Bi. (http://www.aibi-us.org/), a
non-governmental organization (NGO) registered in Italy and active in
25 countries including Cambodia. Ai.Bi. is dedicated to finding a
family for every child who lives in an orphanage. DeCoro will donate
U.S. $.75 to Ai.Bi. in Cambodia for every product it produces.

DeCoro was initially launched in 1997 by Mr. Ricci with manufacturing
facilities in Shenzhen, China. The company was the first international
sofa company producing in China and was followed by many others.

"DeCoro is back, and as a real Italian company, we will use our
knowledge and experience to produce the finest quality, superior
designed products at the best possible price," said Luca Ricci, chief
executive officer, DeCoro Cambodia Co., Ltd. "Moreover, we are very
happy to be involved in supporting social and charitable activities in
Cambodia that will help local children here to enjoy a better future."

Nov. 28, 2011
PRNewswire

Cambodian exports to China

Cambodia's commerce officials said Thursday China's tax exemption for
418 items of Cambodia's products to its market is an impetus for
Cambodian producers; however, the country has still not taken the
maximum advantage of the offer.

"The China's tax exemption is the open of the market for Cambodian
products and is an encouragement for Cambodia's producers to increase
their production," Ok Boung, secretary of state at the Ministry of
Commerce, told Xinhua in an interview.

"The provision is very useful to reduce Cambodia's reliance on only
the European markets, or the United States."
However, the country is still unable to maximize the benefits from the
bilateral cooperation due to the shortage of resources, quality
products, and market information.

"Cambodian producers need to learn more about Chinese market in terms
of product characteristic and qualities," he said. "It's important to
know about the needs of Chinese consumers."

Ok Boung said among the 418 tax-free items, Cambodia has exported to
China mostly garment and textile, footwear, some agriculture and
forestry products, and food products.

"Our export to China is still in small amount, but, in the future, we
see China as the largest market for our products," he said.

The tax-free products the government of China provided to Cambodia
include garments, textiles, shoes, food products, living animals such
as cattle and swine for breeding, according to the list of tax
exemption items, provided to Xinhua by Cambodia's Commerce Ministry
on Thursday.

Also, a number of agriculture and forestry products include cashew
nut, cane sugar, fruits, coffee, furniture, vegetations for using in
pharmacy, rattans, crude maize oil, castor oil, sesame oil and other
fixed vegetable fats.
Rice, cassava, rubber and corn, which are mostly grown in Cambodia,
have not been included in the tax exemption list.

Kong Putheara, director of the Commerce Ministry's Statistics
Department, said the tax exemption was very good for Cambodia to boost
production and to diversify Cambodia's export destinations.

"We see China as a stable and huge market for us -- unlike the
European markets that now are facing debt crisis," he said.

He said the exemption also helped boost Cambodia and China bilateral
trade relations.

According to the Commerce Ministry's reports, the two countries '
trade volume was $912.76 million in the first six months of this
year, up 82 percent from $501 million in the same period last year.

During the period, Cambodia's exports to China was $66.31 million,
increased 275 percent from $17.68 million, and Cambodia's imports from
China reached $846.45 million, up 75 percent from $483.37 million.

The two countries expected that the trade volume in 2011 would hit $2 billion.

China's tax free provides impetus for Cambodian producers
http://www.chinadaily.com.cn/usa/business/2011-11/25/content_14163616.htm
2011-11-25