Cambodia Update: Continued Challenges in the U.S.-Cambodia Relationship

Cambodia and Vietnam to boost ties Khmer Times 14th Feb 2018
Foreign Affairs Minister Prak Sokhonn yesterday met with newly appointed Vietnamese ambassador to Cambodia Vu Quang Minh to discuss boosting ties between the two nations. Ministry spokesman Chum Sounry spoke to media after a closed-door meeting between Mr Sokhonn and Mr Quang Minh at the ministry. Mr Sounry said that Mr Sokhonn spoke of how the top leaders of the two countries have made official visits to one another over the past year, reflecting the progressive and developing relationship between the nations.

What does China mean to Cambodia? The ASEAN Post 13th Feb 2018
2018 marks the 60th anniversary of the establishment of diplomatic ties between Cambodia and China. Chinese Premier Li Keqiang visited Cambodia in January 2018 and oversaw the signing of 19 new deals to celebrate this milestone. The deals represent an opportunity for Cambodia to build much-needed infrastructure and develop its industries to compete in regional and global markets. In recent years, China has showered Cambodia with aid in the form of investments for the country’s development after encouragement from Prime Minister Hun Sen’s government. This situation has long triggered the golden question; is Cambodia slowly losing its sovereignty to China?

Cambodia 'shocked' by 'disrespectful' aid cut, says democracy... Reuters 28th Feb 2018
Cambodia said on Wednesday it was saddened and shocked by a “disrespectful” U.S. decision to rein back aid programs because of perceived democratic setbacks and defended its record on democracy. The White House said on Tuesday it was suspending or curtailing several Treasury, USAID and military assistance programs that support Cambodia’s military, taxation department and local authorities - all of which, it said, shared blame for recent instability. A Cambodian court on Tuesday ordered the seizure of the headquarters of the main opposition party, pending the payment of damages to Prime Minister Hun Sen, the latest blow to the dissolved opposition Cambodia National Rescue Party.

US cuts Cambodia aid over democracy concerns BBC News 27th Feb 2018
The United States has announced it is suspending some assistance programmes to Cambodia over its concerns with "setbacks to democracy" in the country. Last year the country's main opposition party was dissolved and its leader was charged with treason. On Monday, the ruling party said it had won every seat in a Senate election. The result has been questioned by international groups, and the European Union has already threatened economic sanctions in response.

Cambodian court orders seizure of former opposition HQ Daily Herald 27th Feb 2018
A court in Cambodia has ordered the seizure of the headquarters of the country's former opposition party, which was dissolved last November after a ruling that it was involved in trying to overthrow the government of Prime Minister Hun Sen. A lawyer for Hun Sen said Tuesday that the Phnom Penh Municipal Court ruled that the headquarters of the Cambodian National Rescue Party be seized because the party's former leader, Sam Rainsy, failed to pay a $1 million judgment against him for defaming Hun Sen as well as compensation to another ruling party leader. Sam Rainsy is the owner of the property. The case is generally seen as part of an intense push by Hun Sen's government and his Cambodian People's Party to neutralize political opponents and silence critics ahead of a general election in July. The court system is considered politicized and normally rules in the government's favor.

Cambodia’s Ruling Party Just Held Senate Elections. It Won Every Seat Time 26th Feb 2018
Cambodia’s ruling party swept the country’s Senate elections on Sunday, winning every seat in the legislature’s upper chamber in an all-but-predetermined contest that observers and analysts say is the latest symptom of the faltering political health of the southeast Asian country. Preliminary results from Sunday’s poll showed the ruling Cambodian People’s Party (CPP)claimed all 58 elected seats in the Senate, according to the National Election Committee (NEC), further entrenching the dominance of the CPP and Prime Minister Hun Sen, who has ruled Cambodia since 1985.

EU council condemns situation in Cambodia, hints at 'targeted measures' Phnom Penh Post 26th Feb 2018
The Foreign Affairs Council of the European Union today passed a conclusion condemning “recent worrying political developments and the continuing deterioration of democracy” in Cambodia. The conclusions, passed by the European Union’s foreign affairs ministers, warn the Cambodian government that the council could consider “specific targeted measures” if the political situation does not improve. They also demanded the release of jailed opposition leader Kem Sokha, as well as the reversal of the forced dissolution of his Cambodia National Rescue Party.

U.S. Senators Propose Cambodia Sanctions Bill VOA 15th Feb 2018
A group of U.S. Senators last week proposed a new bill that could see restrictions placed on Cambodian officials including asset freezes. The bill, known as the Cambodia Accountability and Return on Investment (CARI) act, could see senior officials’ assets frozen if the leader of Cambodia’s main opposition group, Kem Sokha, remains in prison and free and fair elections are not held later this year. "Democracy is dead in Cambodia today because the Cambodian government is under the influence and control of China," Senator Lindsey Graham said in a statement after introducing the bill.

Industries left guessing as Cambodia fails to release customs data for 2017 Phnom Penh Post 20th Feb 2018
When government-aligned Fresh News reported on Sunday that bilateral trade between the US and Cambodia had increased to $3.46 billion last year, up more than 8 percent from the year before, they weren’t using Cambodian government data. Nor was the state-run Agence Kampuchea Presse using government statistics when it reported in November that trade with Vietnam was up sharply in 2017, quickly approaching the $5 billion target set by both governments. And nor were figures released in recent weeks of bilateral trade with Indonesia, Japan and China originating from Cambodian sources. Instead, they were relying on customs data from foreign governments, whose reports are currently the only available source of data for the majority of Cambodia’s trade last year.

Cambodia a sweet option for investors The Nation 25th Feb 2018
“Cambodia benefits from the most favourable regime designation available under the EU’s Generalised Scheme of Preferences, namely listing in the ‘Everything But Arms’ [EBA] scheme,” said Heng. The EBA gives the 47 “least developed countries” duty-free access to the EU for exports of all products except arms and ammunition. Thai investors considering a new manufacturing base in Cambodia would also qualify to benefit from that country’s EBA listing, he said. Heng added that Cambodia needed innovative technology to develop its industries, including agricultural processing, garments and service sector.

$15 bn in frame for bilateral trade with Cambodia The Nation 21st Feb 2018
Trade between Thailand and Cambodia in 2017 jumped 9.9 per cent from the prior year to US$6.16 billion. The neighbours aim for an annual trade value of US$15 billion in 2020. Jirawuth Suwanna-Aat, minister counsellor (commercial) at the Commerce Ministry, yesterday said initiatives were planned for the countries to achieve that target. Thailand would encourage domestic investors to expand their investments across the border, especially in innovative businesses, information technology, organic food, restaurants and other hospitality ventures. Cambodia needed more of these kinds of investments to develop the country's capabilities, especially in information technology, software and digital services, Jirawuth said.

With Brexit in the horizon, Cambodia hopes for UK trade deal Khmer Times 15th Feb 2018
Cambodia is seeking a free trade agreement (FTA) with the United Kingdom, in a move to ensure that bilateral trade remains robust once the UK officially leaves the EU. In a meeting on Tuesday with Edward Vaizey, a member of the UK parliament on an official visit to the kingdom, Pan Sorasak, the Minister of Commerce, expressed his desire to strengthen bilateral trade through an FTA. “Once the UK leaves the EU, we must ensure that we don’t lose the trade preferences we now have under the Everything-but-arms agreement with the EU,” Mr Sorasak told Mr Vaizey.

Cambodia's tourism makes 3.63 bln USD revenue in 2017, up 13 pct - Xinhua | English.news.cn Xinhua 7th Feb 2018
Cambodia's tourism earned gross revenues of 3.63 billion U.S. dollars in 2017, a 13-percent rise compared to a year earlier, an official said Wednesday. Kong Sopheareak, director of the Tourism Ministry's statistics and planning department, said the Southeast Asian country attracted 5.6 million international tourists last year, up 11.8 percent from a year earlier. China was the biggest source of tourists to the kingdom, followed by Vietnam and Laos. "Tourism sector has contributed 12.3 percent to Cambodia's GDP last year," he told Xinhua. The official predicted that the country was expected to receive 6.1 million international tourists this year. Tourism is one of the four sectors supporting the economy. The country has three world heritage sites, namely the Angkor Archeological Park, the Preah Vihear Temple, and the Sambor Prei Kuk Archeological Site.

South-east Asia: Is Cambodia's economic boom over? Financial Review 4th Feb 2018
Cranes building Phnom Penh's rapidly rising skyline attest to Cambodia's economic success as well as to China's commitment to investing in the Kingdom's infrastructure.Cambodia has been highly successful in attracting foreign direct investment, creating employment and alleviating poverty for millions. The outstanding performance of its economy has been widely acknowledged: the Asian Development Bank calls Cambodia the "new tiger economy" and the World Bank announced Cambodia's transition from a low-income to a lower-middle-income country. The widely held expectation is that Cambodia will achieve upper-middle-income status by 2030 if recent growth rates are sustained. But Cambodia is still among the least developed countries. For this reason, Cambodia is likely to retain the preferential trade agreements and donor payments that the country has enjoyed for decades. Economic prosperity is set to advance — unless politics get in the way. 

ADB issues guide to local bond market Khmer Times 2nd Feb 2018
Aiming to inject momentum into their nascent debt markets, the Asian Development Bank (ADB) released yesterday bond market guides for Cambodia and Myanmar. Titled ‘ASEAN+3 bond market guide’, the publications provide practical and detailed information on the investment climate, rules, laws, opportunities, and characteristics of the bond markets of the two Southeast Asian countries.

Central banks of Malaysia, Cambodia plan link-up for ATMs The Star Online 2nd Feb 2018
Bank Negara Malaysia and the National Bank of Cambodia will explore a plan to set up a link between the national automated teller machine (ATM) networks in both countries. In a joint statement issued on Friday following a bilateral meeting in Siem Reap, they said such a link would facilitate efficient cross-border ATM cash withdrawals and retail payments. During the meeting, they discussed matters of mutual interest including regional central banking cooperation, the progress and achievements of bilateral technical cooperation, recent economic and financial development, fintech regulation and development and central bank governance and structure.

Bank Negara, National Bank of Cambodia to collaborate in fintech NST Online 2nd Feb 2018
Bank Negara Malaysia and the National Bank of Cambodia are looking at avenues to enhance collaboration on the application of technology in financial inclusion. In a statement, Bank Negara said that this collaboration will also explore the establishment of a link between the national automated teller machine (ATM) networks in both countries to facilitate efficient cross-border ATM cash withdrawals and retail payments. In capitalising on the financial technology (fintech) momentum, both central banks reaffirmed their commitment to support the regional development and adoption of fintech in enhancing innovation, efficiency and effectiveness of the financial services sector.

Cambodian Rice Organization Facing Own Problems VOA 25th Feb 2018
In a report last month, the Cambodian Rice Federation (CRF) warned the country's market for exports could be destroyed by secret or unlawful sales of rice. The report gave a long list of problems within the organization and the rice industry as a whole. It showed the deep problems and weaknesses in an industry that occupies a central place in Cambodia's society and economy. The CRF was founded in 2014 as part of an effort to strengthen and expand the country’s rice industry. Cambodia was exporting much less rice than its neighbors Thailand and Vietnam, reports showed. Last year, Cambodia exported about 700,000 tons of rice, a 17.3 percent increase over 2016 rice levels. Yet it exports less than Vietnam, which exported 6 million tons, and Thailand, which sold more than 11 million tons to overseas buyers over the same period.

Price of Cambodian rice abroad increasing Khmer Times 27th Feb 2018
The price of Cambodian rice abroad has been on the rise since the beginning of February due to higher demand in China and the European Union, a representative of a local rice export company told Khmer Times. Hun Lak, vice president of the Cambodia Rice Federation, said Cambodian milled rice now sells for $480 per ton, compared to $450 three weeks ago. The price of fragrant rice (known as sen kro oup) is also rising, and has now reached $775 per ton from $735 earlier this month.

Plantations of subsidiary crops continue to increase Khmer Times 27th Feb 2018
Land used in Cambodia to plant subsidiary crops increased by 9,000 hectares last year, reaching a total of 35,415 hectares, according to a recent report from the Ministry of Agriculture, with officials hailing the hike as an important step in reducing vegetable imports. Currently, Cambodian imports about half of all the vegetable it consumes. A key point in the government’s strategy for the sector is to reduce those imports and boost local production. The term subsidiary crops generally refers to non-major crops. In Cambodia, they include certain vegetables and fruits. The expansion of the total land area used for subsidiary crops is a sign that the government’s strategy to reduce imports and boost local production is working, said Ho Puthea, director of the horticulture and subsidiary crops department.

Agricultural communities to rise Khmer Times 20th Feb 2018
In an effort to increase agricultural production and raise living standards for farmers, the Ministry of Agriculture is prioritising the creation of agricultural communities throughout the nation. In 2017, there were 880 agricultural communities across the country, of which, Takeo province had 100, Battambang 77, and Kampong Thom 55. Up to 89,474 farmers are involved in agricultural communities in the kingdom, according to ministry figures. Agricultural communities boost cooperation among farmers and make it easier to find buyers for their products, said Hean Vanhan, director-general of the ministry’s general directorate of agriculture.

Swiss aid gives $4.6M for farmers Phnom Penh Post 2nd Feb 2018
The Swiss Agency for Development and Cooperation (SDC) yesterday pledged $4.6 million over three years for phase two of an agriculture assistance program that is intended to help small-scale Cambodian farmers in four northern provinces. The Cambodia Horticulture Advancing Income and Nutrition (Chain) program began in 2014 and trained 6,800 farmers in Preah Vihear, Oddar Meanchey, Stung Treng and Kratie provinces on nutrition, farming techniques, processing and business skills during its first phase of operation, which ended last year.

China offers medical equipment to Cambodia Khmer Times 26th Feb 2018
China’s Ministry of Defence today provided 24 kinds of medical equipment to the state-run Preah Ket Mealea military hospital to support heart and blood treatments. During a ceremony in Phnom Penh, Lieutenant General Ly Sovan, director of Preah Ket Mealea hospital, said that the hospital has often been short of medical equipment and human resources. Lt Gen Sovan said that since 2000, China’s Ministry of Defence has been filling the voids with donations while also renovating five buildings.

Malaria cases in Cambodia almost double in 2017 Xinhua 23rd Feb 2018
Cambodia reported 45,991 malaria cases last year, a 95-percent rise from the 23,627 cases in a year earlier, a senior health official said on Friday. Huy Rekol, director of the National Center for Parasitology, Entomology and Malaria Control, said the disease killed one person in 2017, the same as that of 2016. He attributed the remarkable increase in malaria cases last year to changing climate and expired insecticide-treated mosquito nets.

Hun Sen’s wife issues plea for maternity care Khmer Times 21st Feb 2018
Prime Minister Hun Sen’s wife Bun Rany yesterday called on all civil servants and health officials to implement the government’s social protection policy to reduce the infant mortality rate. Ms Rany, who is president of the Cambodian Red Cross, issued the call yesterday prior to today’s National Mothers, Infants and Children Day. In an open letter to civil servants, Ms Rany said the goal of reducing maternal and infant mortality rates could be achieved if all stakeholders worked together to implement the policy.

Japan funds education and health Khmer Times 16th Feb 2018
The Japanese government yesterday provided grant assistance worth nearly $350,000 to support IT education for disabled young Cambodians, as well as the construction of hospital buildings in three provinces across the kingdom. The agreement was signed at the Japanese embassy in Phnom Penh yesterday afternoon between Horinouchi Hidehisa, the Japanese ambassador to Cambodia, and four representatives of the funding recipients. According to Mr Hidehisa, the NGO Marist Solidarity Cambodia will get $72,100, Takeo province’s Bati Operational District Health Office will receive $91,000, the Mondulkiri provincial department of health will take $90,000 and the Kampong Thom provincial department of health will get $90,000.

‘Critical’ year for dengue, as cases jump by 130 percent and one death reported in Phnom Penh Phnom Penh Post 7th Feb 2018
Dengue fever cases have spiked by more than 130 percent in the first three weeks of 2018 as Cambodia enters an “epidemic” year, the likes of which haven’t been seen since 2012, when the mosquito-borne virus infected nearly 40,000 and left some 160 people dead. Dengue cases spike according to natural cycles, and health officials had predicted that another epidemic would strike the country in 2017 or this year, with this year’s number of cases already having already reached alarming rates, officials and experts said.

Cambodia to Host STEM Workshop for ASEAN Youth VOA 16th Feb 2018
A four-day workshop focusing on science, technology, engineering, and mathematics will be held in Phnom Penh this month where fifty young Southeast Asians will showcase their work. Sponsored by the U.S. State Department through the U.S. Embassy in Phnom Penh, the YSEALI STEM Education Regional Workshop provides an interactive platform to forty members of the Young Southeast Asian Leaders Initiative (YSEALI) and ten young Cambodians to discuss ways to integrate STEM into their schools’ curriculum, find ways to address challenges in applied technology and discover STEM education's best practices. According to a statement by the Asia Foundation, which is a co-organizer of the event, between February 28 until March 3 participants from ASEAN nations will attend informational sessions, engage in discussion and a group presentation on topics of STEM education, and participate in invention challenges. Allen Dodgson Tan, founder, and managing director of the Cambodia Science & Engineering Festival, said hosting the workshop allowed Cambodia to showcase its vibrant technological transformation and leadership in STEM education over the past four years.

Cambodia Blocks Online Access to Shuttered Cambodia Daily Radio Free Asia 5th Feb 2018
Cambodia’s government has ordered internet service providers to block online access to The Cambodia Daily newspaper, which closed last year amid a widespread crackdown on media and civil society groups criticizing Prime Minister Hun Sen’s ruling Cambodian People’s Party. In a letter dated Sept. 28, 2017, and only now made public, Cambodia’s Ministry of Posts and Telecommunications instructed Cambodia-based service providers to block IP addresses to the newspaper’s website. The government’s order extended also to the paper’s Facebook page and Twitter account, though technology experts say these remain largely unblocked. Speaking to RFA’s Khmer Service, Cambodian Center for Independent Media executive director Nop Vy called the government’s move damaging to media freedom and open access to information in the increasingly authoritarian Southeast Asian country.

Three new airlines set to launch this year in Cambodia Phnom Penh Post 27th Feb 2018
Three new airlines set to launch this year in Cambodia Cambodia looks set to add three new airlines this year to bring the total number of operating carriers to 10, an unsustainable number in the long term, according to research released today by the Centre for Asia Pacific Aviation (CAPA). Cambodia Airways, China-backed KC International Airline and Thai-backed Air Siem Reap plan to enter the market. All three companies are in the process of applying for their air operating certificates in Cambodia. Cambodia’s aviation sector has seen rapid growth in recent years, going from two airlines flying seven planes in 2013 to its current fleet of seven airlines flying 30 planes. CAPA predicts there will be 45 planes by the end of the year.

Indochinese Defence Ministers Agree to Further Enhance Trilateral Cooperation KPL: Lao News Agency 7th Feb 2018
(KPL) Lao, Vietnamese and Cambodian armies have agreed to further enhance their trilateral cooperation and solidarity. Defence Ministers from the three countries met in Vientiane on January 15. The meeting was co-chaired by Lt Gen. Chansamone Chanyalath, Minister of Defence of Laos, his Vietnamese and Cambodian counterparts, Gen. Ngo Xuan Lik and Gen. Tea Banh, respectively.

Cambodia Passes Lèse-Majesté Law VOA 16th Feb 2018
Cambodians will now be constitutionally obligated to “defend the motherland” and forbidden from insulting the king under a number of new legislative changes that observers say suggest a prolonged assault on civil liberties in the country. A new lèse-majesté law similar to one in Thailand that observers say has been blatantly and systematically misused to silence political dissent will carry a one- to five-year jail term. It was passed by Cambodia’s National Assembly on Wednesday along with a suite of vague constitutional amendments, among them a change allowing the permanent removal of voting rights for convicted felons.

Cambodian Parliament Passes Controversial Amendments to Constitution VOA 16th Feb 2018
Cambodia’s parliament on Wednesday voted unanimously to approve controversial amendments to the constitution and criminal code which could see people who insult the monarchy face up to five years in prison. The 123-member National Assembly held an extraordinary session on Wednesday to vote the proposed amendments through in the presence of Prime Minister Hun Sen. Leng Penglong, National Assembly spokesman, said the amendments were intended to strengthen the rule of law and the democratic process ahead of the general election in July.

Mekong countries forge growth plan Bangkok Post 24th Feb 2018
Member countries of the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) are working to develop a master development plan for 2019-23 to strengthen sustainable economic growth and enact better economic management. Deputy Prime Minister Somkid Jatusripitak said the ad hoc committee working on ACMECS's master plan is scheduled to finalise it in April before submitting it for approval to the eighth ACMECS summit scheduled for June in Thailand. Thailand is chairman of ACMECS from October 2017 to June 2018.

Greater Mekong states endorse joint five-year plan The Nation 1st Feb 2018
The environment ministers of Cambodia, China, Laos, Myanmar, Thailand and Vietnam attended the fifth GMS Environment Ministers’ Meeting in Chiang Mai yesterday to discuss cooperation on the five-year plan, which is supposed to support sustainable growth, promote environmentally friendly development and tackle transboundary environmental impacts within the region. Thailand’s Natural Resources and Environment Minister General Surasak Karnjanarat said the government had signed an MOU with Cambodia to work together to conserve biodiversity and manage forests and wildlife.