Cambodia : Opportunities in a "Frontier" market

[drbubb]

Mark Mobius is interested...

 

Capitalizing on Cambodia

 

Tuesday, March 06, 2012 .. By Mark Mobius, Executive Chairman, Templeton Emerging Markets Group

 

Few talk about this Southeast Asian country, but it’s emerging swiftly, and has its neighbors Vietnam, Thailand, and Malaysia as examples of building dynamic and successful markets, says Mark Mobius of Investment Adventures in Emerging Markets.

 

My recent visit to the enchanting Cambodia can only be described as exciting.

 

This charming kingdom is home to the Angkor Wat, one of the most important archaeological sites in Southeast Asia. The temple contains the magnificent remains of the different capitals of the Khmer Empire, in power from the 9th to the 15th centuries, and is a UNESCO World Heritage Site.

 

The airport at Siem Reap is an international entry point because of the many tourists visiting. The terminal was very tastefully decorated with Khmer statues and decorations, but travelers may appreciate the quick customs and immigration formalities even more—something which is becoming rare around the world.

 

Cambodia has a land area of 181,040 square kilometers, about the size of the US state of Missouri, and it sits in the southwestern part of the Indochina peninsula, consisting of Vietnam, Thailand and Laos. This location brings a lot of opportunity for cross-trade among those countries; the potential for investment opportunity certainly appears to be there.

 

One thing that is clear from my visit is that Cambodia has been making strides into the capital market arena. The government has been encouraging foreign and local investment. Eventually, the local capital market should follow suit. The Cambodia Securities Exchange opened last year, making it one of the last Southeast Asian nations to open a stock exchange.

 

Neighboring Laos opened its bourse in January 2011, and Vietnam’s exchange has been operating since 2000. Though the Cambodian exchange has no stocks listed as I write this, the plan is to have state-owned companies—such as utilities, telecoms, and ports—to be listed.

 

There are a few sectors in Cambodia I’m watching with particular interest. There has been substantial investment in railroads—Cambodia is part of the southeast railroad project to link the south of China to Singapore—so transportation has been interesting.

 

Cambodia’s tourism industry has benefited from, for instance, the magnetic lure of the Angkor Wat, which has been a boon for the airports and hotels. The hotels there are generally up to international standards and maintain the general milieu of the Angkor site.

 

As Cambodia was part of French Indochina, the French influence is evident in the hotels and restaurants, providing many nice lodging choices.

 

While we can’t get direct access to Cambodian companies just yet, Cambodian companies listed in overseas markets do present opportunities to get early exposure to its prospects

 

/more: http://www.moneyshow.com/investing/article/29/GlobalPer-26878/Capitalizing-on-Cambodia/

[bkkandrew]

Dr B.

 

I am tring to send some non-public info on your pm, but your inbox is full. Could you perhaps pm your email address as a way round this.

 

Thanks

[drbubb]

MYANMAR IS NOT FOR MUNCHIES

 

I suppose Cambodia has moved past this stage, and offers better culinary options.

 

Myanmar’s Newest Challenge: Hungry Journos

 

 

Picture this, if you can: Myanmar is overrun with journalists.

For years the country’s secretive military regime refused to let in most foreign reporters, leaving the Western world’s scribes and TV personalities to seek entry posing as tourists or by other means. Those who succeeded tended to skulk around trying to look inconspicuous, while bouncing around from hotel to hotel to avoid detection. The more imaginative among them pretended to be antique dealers or “consultants” of various stripes.

 

So it has come as quite a shock to many residents – and journalists – that Myanmar’s commercial capital of Yangon is now crawling with nosy reporters. They can be seen prowling the streets with big, bulky cameras and fuzzy microphones ahead of Sunday’s crucial parliamentary by-election that will be contested by none other than dissident Aung San Suu Kyi.

 

A planeload of the reporters descended upon Yangon Thursday, the day when most officially approved journalist visas became valid. They were issued laminated press badges upon their arrival. Since journalists often move in packs, many of them proceeded quickly to the headquarters of Ms. Suu Kyi’s National League for Democracy, where camera-ready dissidents were gathering. A few of the most intrepid reporters disappeared in search of “visuals,” or camera footage of election rallies. There weren’t many.

 

“I never thought I’d see the day when journalists would be walking around wearing badges” in Myanmar, one of the reporters said as he hung about outside of the NLD headquarters.

 

On Friday, reporters moved on to Ms. Suu Kyi’s residence, where the famed democracy leader was planning to hold a press conference. It was unclear how the journalists would occupy themselves on Saturday, the day before the big vote, though Ms. Suu Kyi’s followers were expected to organize other events.

 

Most of the journalists on hand were at least happy to see the country changing after so many years. That meant it was possible to lounge freely sipping espresso in the spacious lobby of the Traders Hotel, a main business hotel in the center of Yangon, without worrying about government spies or wiretaps in the plants, as were believed to be common in the old days.

 

/more: http://blogs.wsj.com/searealtime/2012/03/30/myanmars-newest-challenge-hungry-journos/

[drbubb]

The new Vattanac Tower looks like it will be a very important landmark

That's a big step from the historical old city of Phenom Penh

PRICES AND RENTS - for Modern offices in Phenom Penh

 

RENTS range from $18 to $26 per SM

That's for modern buildings, like Canada Tower and Phnom Penh Tower, which are highrises.

Another possible choice would be old villas, or standalone buildings, which are not highrise.

 

The newest buildings typically have: central A/C, phone and internet connections

BUSINESS SUITES can also be rented in hotels, with a size of perhaps 100 Sq M, with rents being negotiable with the hotels, and you can expect to pay anywhere from $12 per SM, to double that.

[bkkandrew]

More news:

 

Cambodia is lighting up with solar power as international politics gluts the world market with inexpensive equipment options, according to industry insiders.

 

ReaderPrintEmail Related News: 0Comment: 0 EmailGoogleTwitterFacebook

 

 

 

Wednesday, 29/08/2012| 13:41

 

 

 

 

The lowering or complete end of subsidies for US, European and Australian firms, along with China’s backing of the renewable energy sector, has seen a“dramatic drop” in the price of solar energy and one that Cambodia is moving swiftly to take advantage of, said PowerTopia Cambodia CEO Andrew Wallace.

 

“It’s a very exciting time for Cambodia: It’s been priced out of the market for such a long time due to the floor under pricing in Europe and the US. The subsidies have been withdrawn pretty much across the board. So Cambodia is for the first time ever able to compete for pricing,” he explained.

 

Wallace believes that Cambodia should have been in on solar energy from the start, given the country’s latitude, its number of daylight hours and its need for cheap energy.

 

“Solar is coming of age– it’s not just a‘wouldn’t it be nice’ argument. It’s the most cost effective measure for Cambodia’s peak power needs. It can compete with diesel generators and the grid in some cases,” he said.“It’s not only green but makes economical sense now.”

 

Arjen Luxwolda, technical director of Kamworks, sees the price drops as great news for Cambodia as well, but doesn’t see the trend holding.“I think if you look back at the situation in the US and Europe, the subsidies are being reduced, so price may go up a little,” he said.

 

Any price increases would only be for American and European products and would not be as high as they were last year, while Chinese products are likely to stay low, according to Luxwolda, because of the range in quality on offer and the support from the Chinese government.

 

“[Price] depends largely on what kind of quality you want. Smaller Chinese factories are not as strict on standards and may not have all the certificates, so they are cheaper,” he said.

 

Chinese competition is seen as the drive behind cheaper prices, according to Chan Thy, a saleswoman at Khmer Solar, who said energy is now“US$1.30 to $1.40 per watt for Chinese-made solar panels and $2.50 per watt for Japanese-made units”.

 

Wallace believes that Cambodia is“undoubtedly the correct place for solar energy to be installed”, as it only has five megawatts, compared to Germany’s seven gigawatts, and says he expects to see more installed in the coming year.

 

Bloomberg reported Indian solar panel maker Surana Ventures Ltd was planning to double its production after prices had dropped almost 34 per cent during the past year.

 

From:

 

http://indochinastock.vn/2012/08/cambodia-seeing-a-solar-surge-as-prices-drop-974-134450.htm

[drbubb]

Sounds good.

 

I hope you get more Solar going

[drbubb]

I've seen another interview where Rogers talks of investing in Myanmar. How does the small guy go about doing this?

That's the problem, even Rogers doesn't know how.

 

There's one Australian mining explorer I know there, but I'm not recommending the stock,

nor am I recommending against it.

 

A few months ago, I met a guy who was going to move there and set up a PE fund,

and he was talking about the high level contacts he would have to have and how he would

"bring them in on deals" to win their support.

 

We have someone who lives in Cambodia who posts on the site.

 

 

Maybe he has some ideas about how to invest in an economy at Myanmar's stage

 

/see Myanmar thread: http://www.greenenergyinvestors.com/index.php?showtopic=16549

[bkkandrew]

It seems that the world and his wife is making their way to 'invest' in Myanmar. Virtually every counterparty in Cambodia has some kind of project they are trying to start there. I sent a Board member there a few weeks ago to investigate.

 

The summary seems to be that, indeed, there is half a century of investment needed and potentially more than that in resource available to obtain an return. The problem would seem to be the world's corporations, deviod of ability to derive return from maturer markets, are in danger of over-investment, which will then follow over capacity and, untimately, price crash.

 

We have taken the decision to be circumspect. Wait and see. We have a couple of medium sized jobs we are likely to get from clients from Cambodia that are expanding there, but we will not expand beyond that. There is enough opportunity in Cambodia without the costs of another 'frontier' market.

[bkkandrew]

A further recent interview I gave to The Phnom Penh Post on Cambodian energy issues:

 

Andrew Wallace, CEO of PowerTopia Cambodia, said solar energy was appropriate for Cambodia, in contrast to wind energy.

 

"Cambodia has one of the lowest average wind speeds in the world. So it is just about the worst place you could put a wind turbine,” he said. "Whereas we think Cambodia has a very good sun, so solar is particularly applicable.”

 

According to Wallace, the cost of a solar panel in terms of dollars per watt nowadays was 10 per cent of what it was 10 years ago, while at the same time, the prices of other energy sources such as oil, diesel and other fuels have gone up in Cambodia and worldwide.

 

But according to Wallace, Cambodia faces a double problem concerning all forms of electricity. He said Cambodia’s provinces lack the electrical infrastructure to carry the power from one province to another. "But the other side of the problem is that even if there was electrical infrastructure to carry the power, there is no power to carry,” he said.

 

At the same time, people that may be able to produce power such as solar generators may be reluctant to invest money if they do not have the infrastructure to distribute it.

 

http://spkgroups.com/news~local-news~3203~more-sustainable-energy-is-needed.html

[drbubb]

"the cost of a solar panel in terms of dollars per watt nowadays was 10 per cent of what it was 10 years ago"

 

That's a big drop - which is bound to help electricity users in places like Cambodia, Mongolia, and Myanmar

 

It is good to see you are getting some press coverage on it !

====

 

I started a New Thread about this big savings:

http://www.greenenergyinvestors.com/index.php?showtopic=16923

[bkkandrew]

An update:

 

Vattanac Tower still not open. 18-months late now. A construction nightmare. I looks impressive enough from a distance though.

 

Power projects popping up everywhere - We may even be getting mains power line to our remote Cardamom Mountains Resort at Ta Tai!

 

Residential sector strong, quite a few nice developments.

 

Political situation stabilising after the protests and chaos of 2013.

 

 

Andrew

[drbubb]

"Vattanac Tower still not open. 18-months late now."

 

 

That's a long delay.
What went wrong?

[bkkandrew]

What went wrong?

 

Totally chaotic planning, project management and delivery. People in charge that made insane decisions on contractors and suppliers.

 

The irony is that, despite aiming to be the first proper mall in country and having a 3-year head start, Aeon Mall has just opened, much to the chagrin of the Vattanacs!

 

It might open this year, who knows. The external glass structure is all in place now at least, so, again, from a distance it makes for a modern skyline.

[drbubb]

That's sad it took so long.

But good to hear that someone (Aeon) got it right

[drbubb]

Drugs and Slave labor - would be an unfair depiction of Cambodia

 

But, that's the sort of news we get in the West

 

(1)

Record bust in Cambodia signals Thai US$ counterfeiting boom

The Star Online-3 hours ago

BATTAMBANG Cambodia: Brigadier General Sar Theth is the police chief of Battambang, a languid riverside town in western Cambodia.

 

(2)

Garment Workers March for Higher Wages

The Cambodia Daily (subscription)-5 hours ago

The unions also want U.S. and European brands that buy from Cambodia to increase the prices they pay Cambodian factories, to help make a ...

Cambodian trade unions lead protest to demand higher wage for ...
GlobalPost-20 hours ago

[drbubb]

Quietly, some progress is being made in dealing with the Energy challenges

.

Solamon Now in Vietnam ; ElectrifyAsia Launched

PR.com (press release)-22 hours ago

nearby markets including Thailand, Cambodia and Laos, we felt that ...

Solamon Energy Corp is pleased to announce the deployment of Mr Steve Kuiak in Vietnam, as the company eyes further expansion across the rapidly developing region. In the immediate-term, Mr Kuiack will continue to work with executives in the construction industry and key administrators in order to implement a diverse array of turnkey solar solutions.

"I also look forward to working with companies who could produce solar panes, as in transparent window panes," explains Kuiack, effectively launching the Solamon ElectrifyAsia campaign, "so a whole building is solar - solar car ports, solar rooftop panels and solar window panes. This technology is in its infancy, but will get refined and cheaper as time goes on."

A senior member of Solamon’s executive team since his appointment as Senior Vice President in 2011, Mr Kuiak has previously worked closely with politicians and business leaders across the Cayman Islands and Central America to influence policy in countries often burdened by an outdated transmission system and century-old monopolies. "Based on the successes emanating from his meetings with investors and local decision makers," adds Solamon CEO Graeme Boyce, "we've decided to launch and be most effective in the region from within Vietnam; after all, the country's economy experiencing tremendous growth and Mr Kuiack is well-positioned to integrate our product line."

Prior to joining Solamon, Mr Kuiack has enjoyed a diverse and distinguished entrepreneurial career spanning several notable and competitive industries around the world. He is a skilled communicator, recognized author and former broadcaster. His book “Let’s Talk Business” provides readers an intriguing investigative analysis examining 20 key topics, including Migrant Workers, Outsourcing, Copyright Piracy and Globalization. While working in South Korea, Mr Kuiack was presented the Distinguished Reporter Award by the former Prime Minister (Park Geun Hye) on behalf of the Hanvit Welfare Association, a Korean non-government organization focused on the historical and present treatment of those affected by Hansen’s Disease (leprosy).

“Recognizing the sheer size of the opportunities, and appetite present in the nearby markets including Thailand, Cambodia and Laos, we felt that we needed one of our top people present and on the ground to take charge of our operations and oversee the implementation and initial roll-out of our strategy in Asia,” concludes Boyce. “Vietnam is ideally situated to act as a hub for that strategy, enjoying an annual GDP growth of nearly 6%, making it a fast growing, attractive market for foreign investment.”

Solamon :: http://www.solamonenergy.com/

[drbubb]

Here's another company investigating Solar-related opportunities in the Far East, including SEA

 

Rame Energy CEO expects 'substantial rebound' this year

 

https://www.youtube.com/watch?v=fgLLK1GQu6Q

 

Published on 10 Jul 2014

Tim Adams, chief executive of recent AIM entrant Rame Energy (LON:RAME), explains why revenues were down last year and why we should expect a "substantial rebound" this year. He puts the South America-focused power producer's three-year, 300 megawatt target into context for investors and says the company is motivated purely by returns and not scale.

. .

 

Commodity-TV European Gold Forum Interview with Rame Energy

 

https://www.youtube.com/watch?v=rYR0FL74qJU