Chom Chao (Cambodia), 06 October 2008. For several months now, customers are hard to come by in Phnom Penh, especially on the eve of the Water Festival (Photo: John Vink/Magnum)11 Nov 2008
By Chan Soratha
Ka-set
Unofficial translation from French by Tola Ek
Click here to read the article in French
Click here to read the article in Khmer
While the Water Festival will take place during three days and thousands of provincial visitors will come to Phnom Penh, the capital, business among small shopkeepers has been bad for past several months, even though, these shopkeepers claim that the current period is when people buy the most. The crisis with Thailand does not help boost orders either, some shopkeepers said, several of their wholesale customers from border provinces have decided to slow down their business activities. The following gives an overview of the situation.
Market gloom
Channy is bored in her mosquito net shop that she operated for the past eight years in Phsar Olympic market. “I can’t say that I sell much! Customers from the province have disappeared this year! Maybe people are afraid to spend their money right now…” she tried to explain.
It is 2PM and the market alleyways remain desperately deserted. Shopkeepers kill their time by chatting among themselves. Be Vouch Shaing, comfortably wedged behind piles of clothes, said that she does not understand the situation. “I’ve never seen this! Every year, near the Water Festival period, we make good business. Look at my stock! The volume remains the same!”
The shopkeeper disarray can be seen in every market in the capital. If Cambodian customers are nowhere nearby, tourists are nowhere to be found either. “November had always been a good month, but this year: nothing! There are very few tourists who came to the market,” Sok Eng, a souvenir store shopkeeper in Tuol Tompoung market, lamented.
The same complaints can be heard at the O’Russei market. Chheng’s dry fish has no buyer since the July general election. “Before, I sold 200 kilos each day, but now only 10 kilos! Can you imagine that? I’m waiting to see what I can switch my business to!” she grumbled.
Whose fault?
While everyone displays their gloom, Laing, a jewelry shopkeeper at the Tuol Tompoung market, blamed the financial crisis which shook up the US as the culprit of her misfortune. “During the past years, I sold my jewelry well starting from September.. Now we are in already in November, I don’t know what I am going to do … but, I only know how to sell jewelry!” she said in desperation.
At the Phsar Kandal market, shopkeepers are busy chatting about the future of their businesses. Meng’s trees find no buyer for the first time since 1989. “Maybe people don’t want to spend their money on superfluous stuff when inflation takes out a big chunk from their budget…” he speculated with other shopkeepers who nodded their agreement.
Concerns over the financial crisis
Chan Sophal, president of the Economic Association of Cambodia, indicated that fear about political instability in the country slows down consumption in Cambodia. “When people are not assured, they don’t spend and they save for the upcoming hard time. However, if domestic consumption is not getting back on track, the Cambodian economy will pay a price for it, and it could even collapse,” he warned.
To Kang Chandararoth, director of the Cambodia Institute for development studies, the border conflict with Thailand would not have an impact on the consumption level by Cambodians, but, according to Kang Chandararoth, the galloping inflation and the worldwide financial crisis eroded the purchasing power and now people are looking twice before they spend.
Market gloom
Channy is bored in her mosquito net shop that she operated for the past eight years in Phsar Olympic market. “I can’t say that I sell much! Customers from the province have disappeared this year! Maybe people are afraid to spend their money right now…” she tried to explain.
It is 2PM and the market alleyways remain desperately deserted. Shopkeepers kill their time by chatting among themselves. Be Vouch Shaing, comfortably wedged behind piles of clothes, said that she does not understand the situation. “I’ve never seen this! Every year, near the Water Festival period, we make good business. Look at my stock! The volume remains the same!”
The shopkeeper disarray can be seen in every market in the capital. If Cambodian customers are nowhere nearby, tourists are nowhere to be found either. “November had always been a good month, but this year: nothing! There are very few tourists who came to the market,” Sok Eng, a souvenir store shopkeeper in Tuol Tompoung market, lamented.
The same complaints can be heard at the O’Russei market. Chheng’s dry fish has no buyer since the July general election. “Before, I sold 200 kilos each day, but now only 10 kilos! Can you imagine that? I’m waiting to see what I can switch my business to!” she grumbled.
Whose fault?
While everyone displays their gloom, Laing, a jewelry shopkeeper at the Tuol Tompoung market, blamed the financial crisis which shook up the US as the culprit of her misfortune. “During the past years, I sold my jewelry well starting from September.. Now we are in already in November, I don’t know what I am going to do … but, I only know how to sell jewelry!” she said in desperation.
At the Phsar Kandal market, shopkeepers are busy chatting about the future of their businesses. Meng’s trees find no buyer for the first time since 1989. “Maybe people don’t want to spend their money on superfluous stuff when inflation takes out a big chunk from their budget…” he speculated with other shopkeepers who nodded their agreement.
Concerns over the financial crisis
Chan Sophal, president of the Economic Association of Cambodia, indicated that fear about political instability in the country slows down consumption in Cambodia. “When people are not assured, they don’t spend and they save for the upcoming hard time. However, if domestic consumption is not getting back on track, the Cambodian economy will pay a price for it, and it could even collapse,” he warned.
To Kang Chandararoth, director of the Cambodia Institute for development studies, the border conflict with Thailand would not have an impact on the consumption level by Cambodians, but, according to Kang Chandararoth, the galloping inflation and the worldwide financial crisis eroded the purchasing power and now people are looking twice before they spend.
