Templeton's emerging markets guru Dr Mark Mobius was suprised by the investment opportunities he found in Cambodia.
Monday 23 April 2007
Posted at Citywire (UK)
'Cambodia is a big surprise. And it’s not because of Angkor Wat but because of so much more that is happening in this country. It’s not a big country. Compared to its neighbours, its population is only 14 million, while Vietnam’s is 84 million and Thailand has 65 million. Of course, it has more people than Laos’ six million. Of those four adjoining nations, Cambodia has the smallest land area of about 177,000 square kilometers compared to Laos 231,000, Vietnam 325,000 and Thailand 512,000. I always look at these countries together since they share so many cultural and historical characteristics.
'We flew to the capital, Phnom Penh. There we could tell that Cambodia is enjoying an economic boom. Since 2003 the country has been growing at about 9% a year as a result of a spectacular construction boom, increased garment exports and tourism, which now results in almost two million visitors a year. Garment exports rose 17% to over $2.5 billion in 2006 with most of it going to the US. Tourism, mainly because of Angkor, earned the country about $1.4 billion in 2006. The optimism can be felt as we traveled around the country and particularly in Phnom Penh. Our visit to NagaCorp’s, NagaWorld hotel and casino complex in the heart of the city was an eye opener.
'Dr. Tan Sri Chen, who is Chairman of listed companies in Malaysia as well as an economic advisor to the Prime Minister of the Cambodian Government, has created an attractive complex drawing visitors from China, Hong Kong, Singapore, Thailand, Malaysia and other countries in the region. He graciously showed us the entire well run complex as well as his plans for extending the complex. Those plans call for the construction of a spectacular water fountain display in front of the complex as well as many other facilities.
'More and more countries are looking for investment opportunities in Cambodia. For example, Korean companies have already built up a strong market position in the IT sector while Chinese companies are also involved in some mega infrastructure projects.
'Despite the sad history with the Khmer Rouge and the “killing fields” atrocities, the people clearly are in a positive mood and look forward to a better life. Another hopeful sign: oil and gas reserves have been discovered off Cambodia’s coast in the Gulf of Thailand. Of course, a lot needs to be done if the country’s 14 million people are to rise out of a very low standard of living. Wages are low as I learned from the beautifully crafted handicrafts hawked at Angkor Wat at unbelievably low prices. The average wage for most Cambodians is less than $1 per day. This means that the country will continue to have an advantageous position in a number of high labour content industries.
'We left Cambodia knowing the country was moving rapidly towards a more dynamic and influential position in Southeast Asia. The prospects of investing in companies with exposure to Cambodia are good and we continue to look for such opportunities.'
Monday 23 April 2007
Posted at Citywire (UK)
'Cambodia is a big surprise. And it’s not because of Angkor Wat but because of so much more that is happening in this country. It’s not a big country. Compared to its neighbours, its population is only 14 million, while Vietnam’s is 84 million and Thailand has 65 million. Of course, it has more people than Laos’ six million. Of those four adjoining nations, Cambodia has the smallest land area of about 177,000 square kilometers compared to Laos 231,000, Vietnam 325,000 and Thailand 512,000. I always look at these countries together since they share so many cultural and historical characteristics.
'We flew to the capital, Phnom Penh. There we could tell that Cambodia is enjoying an economic boom. Since 2003 the country has been growing at about 9% a year as a result of a spectacular construction boom, increased garment exports and tourism, which now results in almost two million visitors a year. Garment exports rose 17% to over $2.5 billion in 2006 with most of it going to the US. Tourism, mainly because of Angkor, earned the country about $1.4 billion in 2006. The optimism can be felt as we traveled around the country and particularly in Phnom Penh. Our visit to NagaCorp’s, NagaWorld hotel and casino complex in the heart of the city was an eye opener.
'Dr. Tan Sri Chen, who is Chairman of listed companies in Malaysia as well as an economic advisor to the Prime Minister of the Cambodian Government, has created an attractive complex drawing visitors from China, Hong Kong, Singapore, Thailand, Malaysia and other countries in the region. He graciously showed us the entire well run complex as well as his plans for extending the complex. Those plans call for the construction of a spectacular water fountain display in front of the complex as well as many other facilities.
'More and more countries are looking for investment opportunities in Cambodia. For example, Korean companies have already built up a strong market position in the IT sector while Chinese companies are also involved in some mega infrastructure projects.
'Despite the sad history with the Khmer Rouge and the “killing fields” atrocities, the people clearly are in a positive mood and look forward to a better life. Another hopeful sign: oil and gas reserves have been discovered off Cambodia’s coast in the Gulf of Thailand. Of course, a lot needs to be done if the country’s 14 million people are to rise out of a very low standard of living. Wages are low as I learned from the beautifully crafted handicrafts hawked at Angkor Wat at unbelievably low prices. The average wage for most Cambodians is less than $1 per day. This means that the country will continue to have an advantageous position in a number of high labour content industries.
'We left Cambodia knowing the country was moving rapidly towards a more dynamic and influential position in Southeast Asia. The prospects of investing in companies with exposure to Cambodia are good and we continue to look for such opportunities.'
9 comments:
Could you please correct that Cambodia's land is 181,035 square kilometers not 177,000 square kilometers.
Well spotted, 3:58 PM!
Dr Mark Mobius should do a proper research instead of believing in everything that Tan Sri Chen, Hun Sen's Advisor, is feeding him. Cambodia has lost so much lands and islands already, and we don't need another idiot to fool the international readers by giving them the wrong facts.
NagaWorld hotel and casino complex in the heart of the city was an eye opener? It is located right next to the Buddhist Institute: religion and casino co-exist side by side, how sick can that be? It is culturally insensitive. In simple truth, the foreign companies come up with the development money and the local mafia families grab state assets and properties of the poor and defenceless people for the joint ventures.
Dr Mark Mobius should also examine the extent of Cambodia's foreign debts and why only a handful of the Cambodian elite families own so many prime lands and properties, while human rights abuses are still a daily occurrence.
Well, he stated a lot of true facts despite a few errors but, of course, as with all economic analysts they always leave out the human factor. What counts is money. These people always forget that money is a means to an end not the other way around. Of all that growth, how much has benefited the population as a whole? This report is definitely slanted and one must suspect that the ruling clique asked for a very favorable report so as to attract even more foreign investment which would benefit that same clique.
Gentlemen, I think Dr. Mobius did his research very well, I believed him when he said that Cambodia only have 171,000 sq. kilometers. The Vietnamese already owned the other 4,000 sq. kilometers and just this past week, Hun Sen agreed to give the Vietnamese 1 million hectares of land for the Vietnamese to plan their rubber. Do you think that Khmer will get any money from that rubber, I don't think so, and eventually, that land will be call Vietname. That is the old Vietnamese tricks, a million hectares at a time.
Whose fault is it? and yet, most of our people continue to vote for the same government.
How do you know the vote was real, if the suppressing force are threat to kille or hurt people every day and night!
Want the real voive of Cambodian? reform the Cambodia Royal police force and Army!
Or one day thing is going to be urgly once more time!
8:55 pm is right: What counts is money: And you should know, that Mr Dr Mark Mobius is a very influencal manager of an investment company (templeton), specialized in so called emerging markets. These people are searching around for chances to make a profit with an investment. -- Realize: you can make money with Naga, not with the buddhist institute. You can make money, if you cooperate with the political elite, not against them... whatever they stand for, that doesn't matter.
I am writing from outside, from europe. My impression is: Be careful, keep smart - if you are on the radar of people like Mark Mobius, the big money is not very far away... but most of it is not for you!
Yep, if you are looking for Profit,
Growth, ..., and Prosperity, come
to Cambodia. We are ready to help
you bring your dream to life!
To 5:26,
Do not copy people speech.
"My Khmer Compatriots, ask not what Cambodia and her People can do for you, ask what you can do for Cambodia and her People!"
it is belong to John Kennedy, If he know it, he will haunt you.
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