Reuters, Bloomberg
A group of South Korean companies said it would spend US$2 billion (HK$15.6 billion) on building a new city in Cambodia, the biggest single investment in the impoverished country still recovering from decades of war.
The residential, commercial, cultural and business complex would be built on 119 hectares on the northern edge of Phnom Penh, the group said Wednesday.
The group, which includes Busan Mutual Savings Bank and property development company Landmark Worldwide, had been wary of Cambodia because of the country's violent recent history, marketing director Lee Yunyoung said.
"But actually when we came here we realized that it is really safe," he said at the ground-breaking ceremony.
"So we want to start our project before others start."
Deputy Prime Minister Sok An said the project would help attract more investors.
"Our population continues to increase sharply, so we need to expand our old city to meet the needs of the people," he said. "Foreign investors also need good infrastructure to run their businesses."
Cambodia's growth has been remarkably high in recent years. Its economy grew 10.4 percent last year, when foreign direct investment hit a record US$4 billion.
In another development, Samsung Engineering, South Korea's biggest engineering company, signed a preliminary agreement to build an ammonia plant in Saudi Arabia for US$946 million, the company's largest single contract.
The factory is for Saudi Arabian Mining and will be completed by December 2010, Samsung Engineering said. The company now expects to exceed a previous target for US$3.5 billion in orders this year.
Samsung Engineering and South Korea's other contractors are more than half way to matching a record set in 1981 for orders from the Middle East. Saudi Arabia has awarded the most contracts.
"It will only get better as a number of major projects are expected to be awarded this year in the Middle East," said Byun Sung Jin, an analyst at Mirae Asset Securities in Seoul.
"This contract will put Samsung Engineering in a better position to win some of those orders."
Saudi Arabia - the world's largest oil producer - is the biggest single source of overseas revenue for South Korean contractors, who have received US$58.1 billion in orders in the 34 years they have been doing business in the Arab kingdom, according to the International Contractors Association of Korea.
Shares of Samsung Engineering gained 7.6 percent to a record close of 85,000 won (HK$714) in Seoul. The stock has almost doubled this year, compared with a 16 percent climb in South Korea's KOSPI index.
Saudi Arabia is expected to invest about US$76 billion until 2010 for refineries and other chemical plants, according to Samsung Engineering. The ammonia plant will have the capacity to produce 3,300 tonnes of the chemical a day, making it the largest in the country.
South Korean contractors have received a combined US$7.45 billion in new orders from the Middle East this year, with almost half of that coming from the United Arab Emirates, the contractors' association said.
The residential, commercial, cultural and business complex would be built on 119 hectares on the northern edge of Phnom Penh, the group said Wednesday.
The group, which includes Busan Mutual Savings Bank and property development company Landmark Worldwide, had been wary of Cambodia because of the country's violent recent history, marketing director Lee Yunyoung said.
"But actually when we came here we realized that it is really safe," he said at the ground-breaking ceremony.
"So we want to start our project before others start."
Deputy Prime Minister Sok An said the project would help attract more investors.
"Our population continues to increase sharply, so we need to expand our old city to meet the needs of the people," he said. "Foreign investors also need good infrastructure to run their businesses."
Cambodia's growth has been remarkably high in recent years. Its economy grew 10.4 percent last year, when foreign direct investment hit a record US$4 billion.
In another development, Samsung Engineering, South Korea's biggest engineering company, signed a preliminary agreement to build an ammonia plant in Saudi Arabia for US$946 million, the company's largest single contract.
The factory is for Saudi Arabian Mining and will be completed by December 2010, Samsung Engineering said. The company now expects to exceed a previous target for US$3.5 billion in orders this year.
Samsung Engineering and South Korea's other contractors are more than half way to matching a record set in 1981 for orders from the Middle East. Saudi Arabia has awarded the most contracts.
"It will only get better as a number of major projects are expected to be awarded this year in the Middle East," said Byun Sung Jin, an analyst at Mirae Asset Securities in Seoul.
"This contract will put Samsung Engineering in a better position to win some of those orders."
Saudi Arabia - the world's largest oil producer - is the biggest single source of overseas revenue for South Korean contractors, who have received US$58.1 billion in orders in the 34 years they have been doing business in the Arab kingdom, according to the International Contractors Association of Korea.
Shares of Samsung Engineering gained 7.6 percent to a record close of 85,000 won (HK$714) in Seoul. The stock has almost doubled this year, compared with a 16 percent climb in South Korea's KOSPI index.
Saudi Arabia is expected to invest about US$76 billion until 2010 for refineries and other chemical plants, according to Samsung Engineering. The ammonia plant will have the capacity to produce 3,300 tonnes of the chemical a day, making it the largest in the country.
South Korean contractors have received a combined US$7.45 billion in new orders from the Middle East this year, with almost half of that coming from the United Arab Emirates, the contractors' association said.
10 comments:
This is great, but the better is
yet to come in the comming years.
No Doubt, huge huge victory for
CPP in the comming election.
Okay, everyone should supported
this Korean's project and unsure
that it get up and running smootly.
And we all can say, "Bye-bye" to
Ah Sam Nazi; So long, fool; Adio,
me amigo; ... ; Adieu, mon amie.
by the tradition in any country,
Chinese are patrons
Vietnamese are labours
(vietnamese men are thieves,
vietnamese women are prostitutes)
The only businesses that like to do business under AH HUN SEN Vietcong slave are the corrupted businesses such as Korean and the Chinese businesses!
I really want to know how many Cambodian people can afford to live in the so called " 2 billion dollars new Cambodian city?" I am willing to bet only a handful of Cambodian corrupted high official who could afford to pay all the fucken money at once to live in the new CAmbodian city build by the South Korean! For majority of Cambodian people , they will have to wait until the pig can fly to buy one of house in the Cambodian new city!
If you really want to live in the new city you better cough up all the money up front to buy one of those house! Do you have the money?
If dirt poor Cambodian people work for one dollar a day and do you really think that dirt poor Cambodian people can afford it? In Cambodia, even a fucken ugly looking building cost around $150,000 and now just imagine those Korean properties in the new Cambodian city which cost at least $500,000 or more!
I wouldn't be suprised if the new Cambodian city are mainly populated all by foreigners!
Everyone can afford to live anywhere if they wanted too.
Cambodia is no difference from
San Fransisco, if you work hard
you can afford to live in nice
house there and here.
Teachers' salary was $25/mon in 1994. 13 years later it still $25/mon. Why? Where is the economy plan?
Wrong, teachers' salary today is not
25$/month. It has increased in the
same proportion as the growth of
the government, and it is moving
faster and faster as we go along.
Furthermore, the government could
have grown 40% biggers, had Ah
Sam Nazi not assaulting the
bussiness community and done their
share of responsibility as they
are paid to do.
4:15 and 10:06
Korean businessmen are corrupted! They are flexible to the corrupted system. They come to cambodia, not through the Council for the Development of Cambodia (CDC) which is the government body to deal with investment, but through some middlemen who have close connection with generals like Meas Sophea, Tea Bunch and other colleagues in the Government like Sok An. The benefit again goes to those guys.
For 10:06, dont say the wrong thing if you dong know. The salary increase is 10% annually to the government's staff (10%*25$ or 35$=2.5$ or 3.5$), this policy is embedded in the Government Policy Framework called Rectangular Strategy. In spite of push by donors (with their support) to pay attention to the public admin reform, the Council for Admin Reform under the direction of Sok An, does not work out! he seems not want to do this reform! reason behind, when these civil servants are stronger and richer, they are the revolutionist (please note that also, during coming elections, each one, civil servants are to pay CPP; they are not forced to pay, it is voluntary, but if you dont pay, you cant satisfy your bosses who, in turn, needs to collection money for CPP; THAT S WHY CPP ALWAYS WIN)! Donors agree to pay the so- called MBPI (Merit based performance incentives system) by providing those staff with good work performance up to 200$-300$...depending on their ranks, but the work is stuck at the council of minister. They fear: by implementing this, the donors may play trick. While civil servants are highly paid, and once donors threaten to withdraw their assistance (putting conditions on the government to improving more...reforms), the public services will callapse (cos no one would work after their salaries are incidentally and dramatically decreased without assistance). There is no mutual trust between donors and government.! Understandably, some donors are work for their sake, their interests, many of whom want to get rid of Hun Sen (for USA, World Bank, Germany, it is obvious through their support to NGOs who are anti the government)!
12:19, we don't care how the Korean
got here. Fact of the matter is
they will invested 2 billions in
cambodia. Do you think they do
this for the fun of it? 2 billions
is a lot of money to risk. If you
are corrupted, where will the
profit come from? I don't think
you are making any sense.
As for teacher salary increase,
I was replying to 9:26, who claimed
that teacher haven't have a raise
in 13 years. Is he right or wrong?
Don't give long and nonsense
lecture, please.
Don't fuck up with your calculation. Civil Servants in Cambodia are paid in Riel not in Dollar. It's true the salary rises at a snail-moving rate, but dollar also rises. The salary can't catch up with the living expense.
You go ask a teacher what he feels about his income. Eat grass!
Well, so does the government grow
as a snail. How can the government
pay more than it bring in?
Anyhow, It is started to move
because we are near the knee of
the exponential growth. Therefore,
I suggest that we don't screwed
it up with any of the "getting rich
overnight" schemes, alright.
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