Tuesday, December 23, 2008

China Inks $215 Million Deal with Cambodia for Infrastructure Development

By Soy Sophea

The Royal Government of Cambodia and the Chinese People’s Political Consultative Conference (CPPCC) have signed on four agreements. These understandings were created during an official visit to strengthen bilateral relations and commemorate the fiftieth anniversary of diplomatic links between the two nations - 1958-2008.

Jia Qinglin, Chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), and Cambodian Prime Minister Hun Sen presided over the signing ceremony that was held December 3, in Phnom Penh.

The agreements promise effective exchanges and cooperation in the political arena, the economy and trade, cultural exchanges and a range of other bilateral activities, according to Cambodian Government Spokesman Khieu Kanharith, speaking to reporters after the signing ceremony.
China and Cambodia are the friendliest of neighbors, a relationship made stronger by the passage of time, according to Khieu Kanharith, Minister of Information and Cambodian Government spokesman. These sentiments were a repeat of those expressed to Cambodian Prime Minister Hun Sen by the leader of the Chinese delegation.

The Information Minister Kanharith said, “Since the establishment of diplomatic relations, China-Cambodia friendship has grown from strength to strength, adding China intends to increase their stake in the Cambodian Investment Industry by $1,000 million by 2010 or earlier”.

He quoted the Prime Minister Hun Sen as saying the Cambodian government attaches great importance to its friendly relations with China and will work with the Chinese side to expand bilateral exchanges and cooperation in various fields and strengthen coordination and support in international affairs.

The Prime Minister said that China's development will not only benefit itself, but also contribute to peace and development of the region and the world at large, said the Premier. He added that the Chinese delegation’s visit marks a conclusion to Chairman Jia's four-nation visit which has taken him to Jordan, Turkey and Laos.

Responding to the Cambodian Prime Minister, Jia said that China will work with Cambodia to promote bilateral good-neighborliness, friendship and reciprocal cooperation to a new stage. He made a three-point proposal for furthering bilateral cooperation.

The first is to expand economic and trade cooperation to bring mutual benefit. The two sides should make a joint effort if early realization of an annual bilateral trade volume of one billion U.S. dollars is to be reached by 2010. The Chinese side supports cooperation in its various forms between enterprises of both sides and hopes the Cambodian side will provide facilities for bilateral cooperation.The second is to strengthen cooperation in other fields such as culture, education, tourism and health, and expand exchanges between young people of the two countries.

The third is to enhance contacts between political parties of the two countries.Jia, who arrived in Cambodia on December 2 to make an official goodwill visit, said the invitation was made by the Cambodian Senate President Chea Sim. He said in the statement upon in his arrival that Sino-Cambodian friendship was based on the Five Principles of Peaceful Co-existence and conforms to the aspirations and fundamental interests of the two peoples.He said that China's policy on the development of bilateral friendship, which is part of China's foreign policy, will not change. He also added that China appreciates Cambodia's adherence to the one-China policy.

Friday, December 19, 2008

Flat Construction Prices Unclear as Global Financial Crisis

By Soy Sophea

Cambodian construction company owners are concerned about their businesses as they observe the momentum that characterized the real estate market over the last two months calm down. Cambodian economists and private sector specialists suspect the slowdown is a symptom of worries over the global economic crisis.

Sung Bonna, CEO and President of Bonna Realty Group, said that the real estate situation and underperformance in the construction industry, especially in Phnom Penh was also caused in part by the as yet unresolved border conflict between Thailand and Cambodia.

Bonna, who is ​a well-known in real estate circles, considered that the slow down constitutes nothing less than a “Dying time for real estate”. He said that most of real estate agencies and brokers are now relaxing with tea and coffee.

The President also noted that the three-year real estate boom in Cambodia was stimulated to a large extent by Korean investors who sought to benefit from impressive figures generated by the sector. Given the global financial crisis, this flow of investment has reduced to a trickle, according to Bonna, as the impact of the financial crisis makes itself felt in Seoul.

“Before Cambodia’s national elections held in July and the onset of the crisis, land or houses could be sold easily at a handsome profit. Now however, it is impossible to sell land or property at the previous rates” the President said, speaking to the Cambodia Weekly by telephone.

Bonna continued that home sales had declined by 20 to 30 percent. He said that this situation was a result of Cambodia’s lack of confidence and worries about the uncertain future. Laboring under these feelings, there is little wonder Cambodians hesitate to lay out large sums of cash to buy houses or land.

“People are now thinking twice about buying land or flats because they are not sure about the real value, and we are unsure about market prices since they have been out of control,” He added that construction speculators could sell their assets and avoid trouble with the banks.

He also noted that on previous occasions, the Ministry of the Economy and Finance had issued regulations ordering Cambodia’s private banks to suspend their home loans.

In Channy, President and CEO of Acleda bank Plc told the Cambodia Weekly, November 18 that his bank has limited its loans for real estate purchases since the Ministry’s order came into force in July.

“We know that real estate investors will find these measures restrictive. But we have to place limits on the amount we can lend out of respect to the Cambodian National Bank,” he told the Cambodian Weekly by telephone.

The President said that currently, his bank offers a maximum of 30 percent of the total price in loans for real estate and development land. He said that this measure has been implemented to lessen the impact of the global financial crisis and restrict its spread in the Kingdom.

Channy said that housing and land prices have fallen after the National Bank of Cambodia issued a statement to all commercial banks in June this year, ordering them to rationalize land and home loan conditions. Henceforth, only 15 percent ($15 million) of the banking industry’s capital reserves are to be farmed out in loans.

He also said that approximately 12 percent of his clients who have borrowed money from ACLEDA Bank used this cash to buy land and houses. In speaking of these changes, Channy took a global view, “I think that the National Bank of Cambodia has created these principles because we have the example of the U.S. Housing market before us and we do not want to make the same mistakes as them.”

Chan Sophal, Senior Research Manager at the Cambodia Development Research Institute (CDRI) told the Cambodia Weekly by telephone on November 18 that it was almost impossible to make predictions for or describe the state of the construction and real estate markets in Cambodia at present when the world faces another period of financial crisis.

Referring to the Cambodia and Thailand border conflict, he said that this was a minor detail compared to global concerns. He noted that the downwards trend in the real estate market was an international phenomenon as people across the developed world too were not so eager to put their hands in their pockets to buy houses.

He said that this was the case despite the fact that the price of oil has fallen from a high of 147 dollars per barrel in July 2008 to the current price of 54 dollars.

Speaking of his view of the future, he said that this situation will probably take years to work itself out of the system. However, it was not all doom and gloom, as the global decline in the price of oil would mean cheaper raw materials for the Cambodian construction industry.

According to Lim Veasna, a construction manager, the price of steel has dropped from US $1,100 to US $580 per tone and from US $1,000 to 400 for 10,000 bricks.

He said that construction of flats and apartments had now largely stopped as people were concerned about their ability to make profit out of land development and housing construction.
Seng Sereyroatha, an employee of a private bank in Phnom Penh, said that with the current situation, she has hesitated to buy a flat.

She said that she was afraid to speculate on house prices because she understood that the current economic situation was unsuited to making long term investments in housing. She said that she will wait for a couple of months to observe the outbreak of economic recovery.

Iem Sakmay, owner of Sakmey Civil Construction, said that although raw materials for construction are now much cheaper, the demand for housing has declined, as have the number of construction companies. He noted that the housing market in particular stood or fell on the strength of market demand.

The construction industry in Cambodia has expanded rapidly in recent years as the positive influence of political stability, improvements in economic performance and continuing assistance from the international community for infrastructure construction becomes increasingly evident.

This is according to the Annual Development Review 2007-08 of the Development Policy Research Institute. The Annual Development Review also showed that there are between 8,000 to 10,000 new flats built in Phnom Penh each year. The number of guesthouses and hotels is also increasing, particularly in Siem Reap to meet the increase in tourist activity. Cambodian economists wait with anxiety to see how much damage the global financial crisis will cause to these activities. //

Wednesday, December 17, 2008

Cambodia Introduces Public Financial Management Reform

By Soy Sophea

The Royal Government of Cambodia has announced the introduction of the Public Financial Management Reform Program- stage 2 (PFMRP) in honor of a pledge to enhance public budgeting. The announcement was made by Prime Minister Hun Sen at the Council of Development for Cambodia on December 3 in Phnom Penh.

The Prime Minister said that effective and efficient public financial management is necessary for national development and poverty alleviation, especially through ensuring sustainable economic growth and improving the efficiency of public service delivery. This is the main objective of the Rectangular Strategy-Phase II and the National Strategic Development Plan.

The Premier told his ministries and agencies that failure to prepare action plans, monitor key indicators or take specified action would lead to the failure of the whole reform program.

“If we reform, 99 percent will continue to live. But if we do not reform 99 percent dies,” Hun Sen said.

The implementation of the “Public Financial Management Reform Program” has received added significance given the depth of the financial crisis, currently creating chaos on world markets. Cambodia, as a contributor to globalization cannot really escape from this kind of consequence, said Hun Sen.

He added, “We are bound to experience some negative impact out of this crisis; the question is, how much? However, we are clear that the improvement and strengthening of public financial management will help strengthen us in the face of these challenges and will help reduce negative effects of this crisis.”

Therefore, in such unfavorable conditions as this, the strengthening of public financial management is actually more important than at any other time.

“In these unfavorable circumstances, strengthening budget management is more important than ever,” he said. “The PFMRP is very important to support other key reforms of the Cambodian government.”

Effective and efficient public financial management is the necessary foundation to promote country development and poverty reduction for the people. The Royal Government of the 4th Legislature still continues to place “Public Financial Management Reform Program” as its first priority.

The Prime Minister suggested that the Ministry of Economy and Finance must continue to play core roles in leading and supporting this reform process in cooperation with all ministries/institutions within the framework of the EFPC and PFMSC.

All ministries/institutions must actively participate and take charge in preparing their own reform action plan. They must manage and implement their own reforms and lead the management of the implementation of their own reforms as efficiently and effectively as possible. Furthermore, they must continue to draw the links between public financial management reforms pillars and development pillars, along with various other reforms. This will create more cohesiveness, interconnectedness and consistency.

This linkage ensures the effectiveness of important reforms within the framework of the “Rectangular Strategy”, especially Public Administration Reform and the De-concentration and Decentralization Program. Preparing a civil administration, based on democratic development principles, which is closer to people, efficient, and transparent enough in providing public services is the highest priority of the Royal Government in the 4th Legislature.

In this regard, the Council for Administrative Reform must cooperate with the EFPC and PFMSC to enhance quality, efficiency and the loyalty of the whole public administration.
Therefore, it is very important that the Royal Government and all relevant Development Partners must learn from the experiences of the 1st stage of implementation of the Merit Based Pay Initiative (MBPI). So far, this has been carried out in the spirit of national development and continues to expand its extensive positive influence across other relevant ministries/institutions.
Aun Porn Moniroth, Secretary of State for Economy and Finance and Chairman of the Public Financial Management Reforms Steering Committee, said at the meeting that the PFMRP is one of the key elements within the core of the “Rectangular Strategy.

The Secretary of State said the long term vision of this reform program is to build an international standard for public financial management system by 2015, through implementing a long-term strategic plan consisting of four platforms—building budget credibility, improved financial accountability, budget-policy linkages and performance.

Qimiao Fan, World Bank Country Manager for Cambodia echoed the Cambodian Prime Minster’s comment saying that the success of stage II will depend upon the extent to which the control of resources is delegated to line ministries and sub-national governments. He added that the new framework in both central and sub-national government will need to support de-concentrated and decentralized financial accountability, whilst maintaining aggregate central control of the budget.

“Development partners stand ready to support this review and capacity building process, both in terms of strengthening the government’s supply side capacity and with helping with demand side initiatives,” Fan said. “We will continue to harmonize our efforts around the government owned reform program.”

He said that the current financial crisis serves to remind all that external events provide a constant challenge to securing policy goals. He stated that building strong internal PFMRP arrangements will provide an effective way of mitigating the impact of the crisis on the economy and on the lives of the most vulnerable in Cambodia.

PFMRP-stage I was introduced on December 5, 2004.//

Tuesday, December 16, 2008

Cambodia, Laos and Vietnam Seek Aid for Triangular Development

By Soy Sophea

Meetings held last week between the leaders of Cambodia, Laos and Vietnam were organized to seek foreign aid to help develop the common border shared by the three nations and to improve infrastructure and living conditions for the people who live there.

This is according to Cham Prasidh, Senior Minister and Minister of Commerce, who was speaking to journalists at a press conference on November 28, at Phnom Penh International Airport, following his return from Vientian, Loas.

The Senior Minister shared information about the dialogue between three leaders, whose main purpose was to encourage close friends China, South Korea, and India in supporting regional development. He said that to date, Japan had pledged 20 million US dollars in support of the tripartite development initiative.

The commerce minister added that the Cambodian Prime Minister Hun Sen and his counterparts Nguyen Tan Dung from Vietnam and Bouasone Bouphavanh from Loas have agreed to construct a business sector forum and propose that the first meeting be held at the next ASEAN summit.

“We want to increase the number of investors in the area by giving them incentives and solve any outstanding or incidental problems,” he quoted the three prime ministers as saying at the meeting on Triangular Border Development, held in Vientian, Laos from November 24-28.
The Senior Minister continued to say that in order to reach the development goal, the member countries have to work doubly hard to develop the infrastructure and human resources.

Both Laos and Vietnam expressed thanks to the Vietnamese government for its great assistance in the field of human resource development. They also agreed to encourage the exchange visits of youth leaders from the three countries and considered organizing youth meetings during the next summit.

However, a postponement of the December 13-18 ASEAN summit in Chiang Mai now seems increasingly likely due to the situation in Thailand, according to Hor Namhong, Deputy Prime Minister and Minister for the Ministry of Foreign Affairs and International Cooperation. Long-running anti-government protests in Thailand have led to the closure of its two main airports, sent the Thai Cabinet into hiding and paralyzed its Parliament, leaving fellow ASEAN members increasingly concerned as the summit date approaches.

He noted that on Wednesday, after a summit of leaders from Cambodia, Laos and Vietnam held in Laos, Lao Foreign Minister Thongloun Sisoulith, speaking for all three of the national leaders, sent a letter to ASEAN Secretary General Surin Pitsuwan.

The letter asked him to consult with Thai and other ASEAN member states on whether the summit schedule should be maintained or postponed.While there is yet to be any official response from Thailand on the matter, Hor Namhong cited media reports that quoted Thai Foreign Minister Sompong Amornwiwat as saying his government would take its ASEAN partners' suggestions into consideration.

Friday, December 12, 2008

Cambodians Unite to Prevent HIV/AIDS

By Soy Sophea

The Cambodian health officials and Non-Governmental Organizations have reaffirmed their commitment to combat HIV/AIDS and to eliminate discrimination against sufferers of the disease in Cambodia.

Bun Rany Hun Sen, President of the Cambodian Red Cross (CRC), said that in recent years, Cambodia as a developing nation has suffered as the virus made its presence felt. She said that the as yet incurable disease has killed thousands of Cambodians and lead to greater hardships for communities and the nation as a whole.

“I have witnessed the hardships endured by the victims of HIV/AIDS for myself,” said First Lady Bun Rany, who spent World AIDS Day, December 1, visiting victims of the disease. These visits inspired her to rededicate future World AIDS Days to alleviating the suffering of victims and diluting the corrosive power of discrimination.

The President Bun Rany noted that this disease does not discriminate between rich and poor. It is always ready to exploit any opportunity afforded by the victim’s failure to protect against viral attack. She listed unprotected sexual activity and needle sharing as activities that promoted the spread of the disease.

“I would like to take this opportunity to send my message of support to all HIV/AIDS patients and I ask you not to give up hope in your lives. If you follow the guidelines set out by medical staff, you should be able to lead long and productive lives. Your families, communities and society as a whole will not abandon or keep you away from the opportunities the nation has to offer,” she said.

Nuth Sokhom, Chairman of National AIDS Authority (NAA), said during the World AIDS Day that AIDS is a disease without vaccine or cure and that sufferers could expect the disease to have a seriously negative impact, not just on themselves, but upon their family, their community and greater society. He noted that the onset of the virus had placed great strains on the nation’s human resources and ability to generate income.

Referring to the latest figures, he said that 33.2 million cases of HIV had been recorded across the globe, whilst the disease claimed 2.1 million lives in the previous year.

As for Cambodia, in 2007 there were 67,500 cases of HIV/AIDS. As these unfortunate people inevitably succumbed to the disease, they leave behind dependents that become a serious burden to society, according to Sokhom.

However, his assessment was not all doom and gloom. He pointed to Cambodia’s outstanding record in reducing the prevalence of the disease. Thanks to cooperation between the government, legislative bodies, religious groups and the general public, HIV infection rates had dropped from a high of 2 percent in 1998 to 0.9 percent in 2006. Out of 3,518 tests conducted over the course of November 28, 69 individuals returned HIV positive indications. This equates to a current prevalence rate of 1.9 %. The testing campaign was conducted in eight provinces throughout Cambodia and was expanded to cover the weekend. In total, the country expects over 30,000 HIV tests to be conducted during the campaign.

“We still have many things to do to change this issue from being a national tragedy to something that we can control and eventually eradicate. We must continue to translate the national strategic plan for a comprehensive and multi-sectoral response to HIV/AIDS into action,” he said.

He continued that the integrated strategy sought input from a range of programs with contributions made through a decentralization process. With an assurance of full participation from all affected walks of life, project sustainability was assured.

Teng Kunthy, Secretary General of the National AIDS Authority (NAA), said that this year marks the World’s twentieth World AIDS Day and the sixteenth such event for Cambodia, first commemorated here in 1993. The theme for this year’s World AIDS Day is “STOP AIDS: KEEP THE PROMISE.”

“Every year, the NAA plays a coordinating role among development partners to organize campaigns to highlight the continuing relevance of the day. Our goal is to spread vital information to all levels, starting with the higher administrative levels of government, down to community level. We set ourselves a timescale of two weeks to spread the latest information about the disease to all levels of society,” he said in his statement.

Alice Levisay, Deputy Chair of the United Nations Theme Group on AIDS, said that Cambodia has led the way in reducing prevalence and achieving the Millennium Development Goal for AIDS. This has been achieved under the guidance of the National AIDS Authority, full commitment from development partners and the meaningful engagement of people living with HIV.

“Leadership at the highest levels and in communes and villages across the nation remains the key to Cambodia’s dynamic response to AIDS,” she said. “Together let’s ensure that we all have the knowledge, power and access to information that leads to full, meaningful and HIV free lives.”

She continued by saying that the people must continue to be empowered with special attention paid to educating adolescents and younger members of society. She also revealed that over 7,400 people across the world will be infected by HIV on the occasion of World AIDS Day 2008 and that of that figure, 1,000 victims will be children below 15 years old. Technically, the remainder will be counted as adults, but 45% of these could be described as adolescent or “young” by any other measure.

Kai Chanra, 17, is described as being HIV positive. Even though mitigation treatment and support programs are provided through various Orphans and Vulnerable Children (OVC) programs, the young still face many issues and problems.

Chanra, urged the Cambodian Red Cross President Bun Rany to continue her generous support for orphans and vulnerable children affected by HIV/AIDS. /

Thursday, December 4, 2008

Government Urges Farmers to Stop Selling Rice at Low Prices

By Soy Sophea

The Royal Government of Cambodia has urged farmers not to hasten to sell their rice abroad because they are just about to harvest their produce at a time of plentiful supply and generally low rice prices.

Chan Sarun, Minister of Agriculture, Forestry and Fisheries (MoAFF), said that he was aware Cambodian farmers were anxious to export their rice to Vietnam and Thailand. He advised against this as it was impossible as yet to predict the market price so soon after the harvest and it was better to store the grains and wait for more concrete information as to prices.

Chan Sarun, speaking November 26 at a meeting held at the Ministry to assess the forthcoming harvest, urged provincial agricultural departments to collect information about Cambodian farmers and their rice sales to neighboring countries.

“We supply rice to cater for both domestic and international demand. But we will not sell to international buyers at a price lower than the market value,” he told the Cambodia Weekly during a personal interview on November 25. “Our plan is to increase rice production year after year and this will be all the easier when the commodity is sold at a price that reflects its true market value,” he said.

The Minister continued with a promise that current low prices are a result of a glut of rice following this season’s harvest and would not remain in place forever. He suggested that rice merchants should wait for higher prices to arrive early next year.

Despite the drought of July to September, Cambodian farmers can still produce approximately 6.553.171 tons, an average of 2.52 tons of produce per hectare. A dry 2008 resulted in a 0.62 percent decrease in production, compared to figures for 2007, when 6.727.127 tons of the staple were produced, according to Chan Sarun.

The Minister continued that the 6.55 million tons produced failed to meet the Agriculture Ministry’s goal of 7 million tons for the 2008 growing season. He added that the Ministry will review processes in order to increase production and meet the 7 million ton goal next year.

Oum Narith, Deputy Director of Planning and Statistics in the Ministry of Agriculture, Forestry and Fisheries, said that on average one person consumes 143 kilograms of rice per year. With a population approaching 14 million, total national consumption is 1,970,270 tons of rice.

Dr. Yang Saing Koma, President of the Cambodian Center for Study and Developmentin Agriculture (CEDAC), echoed the Minister’s comment by saying that this year’s harvest had decreased by approximately 0.62 percent on figures for 2007. He too agreed with measures taken to try and stem the flow of rice exports to neighboring countries.

Saing Koma said that a high yield depended on a sufficient supply of water. He conceded that this year’s decreased levels of rainfall had been responsible for the 2.52 ton per hectare yield; but he found comfort in the fact that these figures were not as bad as those for the harvest season in 2004, when only 1.98 tons per hectare were produced.

He pointed out that although there are many improved irrigation systems, there is still much to do in modifying the entire network of water channels. He further suggested that the government should take action to halt rice exports to Vietnam or Thailand so soon after the harvest season. He said it was better to wait for prices to stabilize once the rice glut had worked its way out of the international market.

According Ministry statistics released October 30, 2008, Banteay Mean Chey province produced 214,340 tons of rainy season rice, Battambong 245,127 tons, Kampong Cham 166,285 tons, Kampong Chhnang 105,222 tons, Kampong Speu 105,190 tons. The least productive province was Pailin with 2,750 tons.

Recently, Cambodian Prime Minister Hun Sen noted his pleasure when the yield reached about 6 million tons of rice. Once this mark is passed, roughly 2 million tons of rice becomes available for export.

Monday, December 1, 2008

Government Provides Passports Free of Charge to Workers

By Soy Sophea

Prime Minister Hun Sen, speaking at the 14th Government-Private Sector Forum, has agreed in principle to provide fee passports to all workers who have opted to work abroad.

The approval was in response to requests made by the 8th Working Group, Industrial Relations represented by Dr. Nang Sothy. He raised the issue of free passports in an earlier meeting of the Cambodia Council for Women. This organization is headed by the Honorary President, the Queen Mother Her Majesty Norodom Monineath Sihanouk and vice honorary president Bun Rany Hun Sen, the wife of Cambodian Prime Minister Hun Sen.

“From today, the Royal Government of Cambodia will start to provide free passports to our laborers,” the Prime Minister said at the Forum. He added, “We need to help those members of our society who find it necessary to find jobs abroad. Therefore, I am ordering the Ministry of Interior to take immediate action to cancel passport fees for laborers.”

He added that currently the Cambodian Government pays 100 US dollars out of the 125 US dollars total for electronic-chip passports. He also demanded that all bureaucratic processing of passport applications be cleared within 20 days.

The Economy

During the forum, the Prime Minister also touched on the economy. He said that Cambodia's banking sector remained stable despite the global economic crisis, but plans to establish a national stock exchange could be delayed.The Prime Minister said that the state of the country's finance industry was "in a stable position which is not worrisome" because Cambodia "has not yet received a stock market.""If there is no stock market, there is no problem,” said the Premier. But he affirmed that he still aimed to set up a bourse once fears of a global recession had receded.

"When the wind dies down, we will try to establish the stock market. I only know that when the red arrow sign is down it means the stock is also down...something that I see all the time nowadays," he said.

Earlier this year, Cambodia signed an agreement with representatives from South Korea's stock exchange, the Korea Exchange, to establish a stock market in 2009. These plans were based on annual economic growth rates averaging 11 percent over the past three years. These impressive figures were the result of vibrant garment and tourism sectors.But the International Monetary Fund recently said Cambodia's economy was expected to flounder next year as the world crisis deepened. Cambodia still remains a largely cash-only economy and a high degree of mistrust keeps many people hoarding their money at home instead of using banks.

Keat Chhon, The Deputy Prime Minister and Minister of Economy and Finance responded to the Premier’s speech by saying that the Government-Private Sector Forum (G-PSF), which was launched in 1999 on the personal initiative of The Cambodian Prime Minister Hun Sen was an effective mechanism for finding solutions to challenges faced by the private sector as it went about its business.

“The G-PSF is considered to be an enlarged plenary cabinet meeting with the attendance of private sector representatives at discussions of government policies and initiatives related to private sector development,” he said at the Forum. He continued that, “Having been successful in the past 13 meetings, the G-PSG will continue to improve and strengthen the business and investment climate in Cambodia.”

The eight working groups at the Forum include the Export Processing and Trade Facility, Energy, Infrastructure and Transport, Agriculture and Agri-Industry, Tourism, Manufacturing and Small and Medium Enterprises, Law, Tax, and Good Governance, Banking and Financial Services, and Industrial Relations.

Government Responds to Thai Aide d’ Memoir

By Soy Sophea

The Royal Government of Cambodia has summoned the Thai Ambassador Viraphand Vacharathit to respond to Thailand’s Aide d’ Memoir that accuses Cambodia of violations of Thai territory and sovereignty. The summons was made on November 20, by Hor Namhong, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation.

The Deputy Prime Minister spoke to reporters during a press conference at his office in Phnom Penh after the meeting with the Thai Ambassador Viraphand Vacharathit. He said that the complaints expressed in these documents contain insufficient evidence to support the claims.

He compared these complaints to the solid evidence and official documents that are internationally recognized that Cambodia uses to back up Her territorial claims. He noted that every move made by Cambodia during the standoff was made in light of this documentary evidence.

According to international maps created by France and Siam following a convention in 1904 and a treaty in 1907, Cambodia has the right to the disputed lands, Hor Namhong said, and added that the current tensions between Thailand and Cambodia had existed since July 15, 2008, a week after Preah Vihear temple was included in the World Heritage List.

The Deputy Prime Minister continued that the issues have been raised because Thailand objects to Cambodia’s efforts to bring the Hindu temple to the attention of World Heritage officials. He said Thailand has made allegations about plans to build a hotel on the Poi Pet border between the 48th and 49th boundary pillars. Tensions mounted with Cambodia’s Buddhist celebrations held at Keo Sikha Kirisvara pagoda. Thailand claims this territory for Herself.

The Deputy Prime Minister considered that the Thai claims were both disappointing an “laughable”. He said that Cambodia has drawn attention to the fact that Preah Vihear (Known to the Thais as “Phra Viharn”) is the original name for the temple and it is known as such by both UNESCO and the International Courts of Justice.

“I have told the Thai Ambassador that if Thailand wants to continue with its protests, they can do so having first understood the proper terms, the legal dimension and the extent of Cambodia’s territorial sovereignty. All concerned will be able to save valuable time if these complaints are presented in an appropriate manner,” he said.

He continued, “We want to create a peaceful deal to solve this matter. The Cambodian Government wishes to reiterate its firm commitment to exercising the utmost restraint and in negotiating and working closely with the Thai side to avoid any armed hostilities.”

However, Namhong assured reporters that Cambodia will not raise the matter at the ASEAN Summit which will take place in Chieng Mai, Thailand, scheduled for December 13_18. this is because Cambodia’s friends in the region and beyond have advised the nation to arrive at a peaceful and mutually acceptable resolution with Thailand. He added that so far, there are no plans for unofficial meetings between Cambodian and Thai delegates during the ASEAN Summit.