Foreign Tourists will be able to make payments using Bakong App

The National Bank of Cambodia (NBC) is set to introduce the Bakong payment system tailored for tourists. This initiative aims to simplify financial transactions for visitors by allowing them to use digital payments instead of carrying physical dollar bills. This announcement was made by Ms. Chea Serey, the Governor-General of NBC, during the bank’s first half-year meeting on July 19, 2024.

“Soon we will launch Bakong for tourists,” Ms. Chea Serey stated, explaining that tourists visiting Cambodia can download the Bakong app to facilitate their transactions. Even without a local bank account, tourists can use their credit cards, such as Visa, MasterCard, or UnionPay, to pay for goods and services directly through the app.

The introduction of the Bakong system will streamline the payment process for tourists in Cambodia. This system will provide a new digital cash payment experience and address various challenges in the tourism sector. “This will address some of the challenges that our tourists, especially in Siem Reap, face in spending large amounts of dollars,” Ms. Chea Serey noted.

This initiative is in response to Prime Minister Hun Manet’s directive to review the problematic conditions related to the exchange of torn and dirty dollar bills. By launching the Bakong system, the NBC aims to enhance the tourism and hospitality experience in Cambodia. This is a challenge for us that needs to be addressed to facilitate the experience of our tourists in Cambodia.”

The NBC has developed a comprehensive payment system to make digital payments easier, more efficient, and faster, both for domestic and cross-border transactions, contributing to the development of Cambodia’s digital economy and society. Among all the payment systems, Bakong offers the most extensive range of functions, driving its growing usage and contributing to an improved financial environment and Cambodia’s international image.

Currently, the NBC has established cross-border payment agreements with Thailand, Laos, Vietnam, and international company UnionPay. It is also expanding partnerships with regional countries and companies such as China, Japan, India, South Korea, Singapore, Malaysia, and Alipay.

The National Bank has established four emergency mechanisms to be implemented in Siem Reap:

1. The Siem Reap Commercial Bank branch is required to accept old or dirty US dollars from customers without any charge.

2. For very old dollar banknotes that should no longer circulate in the market, the commercial bank in Siem Reap will exchange them for new notes at the National Bank of Siem Reap branch at no cost, without needing to send them to the head office in Phnom Penh.

3. All banking and financial institutions in Siem Reap must place $20 and $50 US dollar banknotes in ATMs instead of $100 bills to facilitate tourist transactions. Deposits will still be accepted on deposit machines.

4. The National Bank will organize outreach programs for money changers, and hotel and restaurant owners to help them understand and support these measures, and to cooperate in implementing these mechanisms effectively.

In the past five months, Cambodia received over $2.9 million from international tourists, marking a 22.1 percent increase compared to the same period in 2023. Thai tourists ranked first with 770,000 visitors, followed by 520,000 Vietnamese tourists and 320,000 Chinese tourists.

Specifically, Siem Reap welcomed more than 520,000 foreign tourists who purchased tickets to visit Angkor in the first half of 2024, generating over $24 million in revenue, a 36 percent increase from the same period in 2023.

Benefits of the Bakong System for Tourists:

1. Convenient Digital Payments: Tourists can use the Bakong app for transactions, avoiding the hassle of carrying and exchanging physical dollar bills.
2. International Credit Card Compatibility: The system supports Visa, MasterCard, and UnionPay, allowing tourists to use their home country credit cards easily.
3. Enhanced Tourist Experience: Simplified payment processes improve the overall travel experience, especially in popular tourist destinations like Siem Reap.
4. Addressing Payment Challenges: The system helps mitigate issues related to handling large amounts of cash and the exchange of damaged or dirty bills.
5. Boosting Tourism and Hospitality: By improving payment infrastructure, Cambodia becomes a more attractive destination for international tourists.
6. Promoting Digital Economy: The Bakong system contributes to the growth of Cambodia’s digital economy, enhancing its financial ecosystem.
7. Cross-Border Payment Integration: The system supports seamless cross-border payments with various regional countries and international partners.
8. Increased Revenue from Tourism: Easier payment methods can lead to increased spending by tourists, boosting the local economy.
9. Improved Financial Image: The adoption of advanced payment systems enhances Cambodia’s reputation in the global financial market.
10. Strategic Partnerships: Collaboration with international payment companies and regional partners strengthens Cambodia’s financial ties and infrastructure.

Latest Update on August 19, 2024

The National Bank of Cambodia (NBC) launched the Bakong Tourists mobile payment system on August 19, aimed at simplifying transactions for travelers, promoting the Cambodian riel, and enhancing the tourism sector. Key points from the article include:

1. Launch and Functionality: The Bakong Tourists app, similar to the existing Bakong system, enables seamless, fee-free cross-bank payments, and is accessible via iOS and Android platforms. Tourists can spend up to $1,000 per day, or up to $3,000 after identity verification.
2. Widespread Adoption: The app supports payments via QR codes at 3.3 million locations across Cambodia, providing greater convenience compared to traditional credit cards or ATMs.
3. Collaborative Efforts: The NBC has partnered with banks, tourism operators, and immigration authorities to promote the app and ensure accessibility for tourists.
4. User Experience: Tourists can add funds at banks, hotels, or via Visa cards in the future. They can withdraw remaining funds or donate to charity directly through the app.
5. Regional Use: The app’s functionality extends beyond Cambodia, allowing use in neighboring countries like Thailand, Laos, and Vietnam.
6. Concerns and Feedback: Some tour guides and tourism professionals expressed concerns about the app’s ease of use, especially for older tourists, and emphasized the importance of promoting the use of the local currency, the riel.
7. Support and Issue Resolution: A dedicated NBC team is available to address any payment issues that may arise, ensuring smooth transactions for users.

This innovative step by the NBC marks a significant move towards modernizing Cambodia’s payment systems and improving the tourism sector.

3 Best Ways to Make Money from LinkedIn in Cambodia

LinkedIn isn’t just for networking and job hunting; it’s also a powerful platform for making money. Whether you’re a business owner, an affiliate marketer, or a group administrator, LinkedIn offers various opportunities to generate income.

According to DataReportal, LinkedIn’s audience in Cambodia at the beginning of 2024 was 3.8% of the total population, or 5.8% of the “eligible” audience. This is because LinkedIn doesn’t allow users under 18 to use the platform. LinkedIn’s ad reach in Cambodia at the start of 2024 was also 6.7% of the local internet user base, regardless of age. 43.3% of LinkedIn’s ad audience in Cambodia was female, and 56.7% was male.

Here are three effective ways to monetize your LinkedIn presence in Cambodia:

1. Selling Your Products or Services

One of the most direct ways to make money on LinkedIn is by selling your products or services. To do this effectively, you need to establish a LinkedIn presence, either through a company page or a showcase page.

Here’s how:

Steps to Get Started:

• Create a LinkedIn Page: Set up a company or showcase page that represents your business. Ensure it is professional, complete with high-quality images, a clear description of your offerings, and contact information.
• Optimize Your Profile: Use relevant keywords in your profile and page descriptions to make it easier for potential customers to find you.
• Share Valuable Content: Regularly post updates about your products or services, share customer testimonials, case studies, and industry-related news. This builds credibility and keeps your audience engaged.
• Leverage LinkedIn Ads: Utilize LinkedIn’s advertising options to target your audience precisely. Sponsored content, text ads, and InMail messages can help reach potential customers.

By maintaining an active and engaging presence on LinkedIn, you can attract and convert leads into paying customers.

2. Affiliation

You don’t need to own products or services to make money on LinkedIn. Affiliate marketing allows you to earn commissions by promoting other people’s products or services. Here’s how to get started:

Steps to Get Started:

• Find Affiliate Programs: Partner with local brands or companies offering affiliate programs. Look for products or services that align with your audience’s interests.
• Promote Affiliate Products: Share posts, write articles, or create videos showcasing the benefits of the affiliate products. Include your unique affiliate links to track sales.
• Build Relationships: Engage with your connections and groups by providing valuable content related to the affiliate products. Answer questions and provide insights to build trust.
• Track Your Performance: Use analytics tools to monitor the performance of your affiliate links and adjust your strategies to maximize earnings.

Affiliate marketing is a flexible and scalable way to generate income without the need for a physical store or inventory.

3. LinkedIn Groups

Creating and managing a LinkedIn group can be a lucrative venture. A well-managed group with a specific focus can attract a large number of members, providing multiple monetization opportunities.

Steps to Get Started:

• Create a Group: Choose a niche that interests you and has a potential audience. Ensure the group’s name, description, and rules are clear and attractive.
• Grow Your Membership: Actively invite professionals in your niche to join the group. Promote your group through your LinkedIn network and other social media platforms.
• Engage Your Members: Post regular updates, initiate discussions, and share valuable content to keep the group active and engaging.
• Monetize Your Group:
  • Sell Your Products or Services: Promote your own offerings within the group.
  • Affiliate Marketing: Share affiliate links to products or services that would benefit the group members.
  • Paid Posts: Allow members to pin their posts to the top of the group for a fee. This can be particularly attractive for businesses looking to promote their content.

By creating a vibrant LinkedIn group, you can establish yourself as a leader in your niche and unlock various income streams.

Conclusion

LinkedIn offers numerous opportunities for making money, whether through selling your own products or services, engaging in affiliate marketing, or managing a LinkedIn group. By leveraging these strategies, you can tap into LinkedIn’s vast professional network to generate income in Cambodia. Start by building a strong LinkedIn presence, creating valuable content, and engaging with your audience to maximize your earning potential.

How Cambodia is Attracting Foreign Investment in 2024

As we progress through 2024, Cambodia is making significant strides in attracting foreign investment under the leadership of Prime Minister Hun Manet. A key component of this effort is the implementation of the Pentagonal Strategy, which aims to foster employment, equity, efficiency, and sustainability, all towards the ambitious goal of elevating Cambodia to high-income country status by 2050.

Key Diplomatic and Economic Missions Boosting Investment

Cambodia has been actively engaged in international diplomatic and economic missions in the first half of the year, securing numerous deals and agreements. These initiatives reflect the Kingdom’s competitive edge in facilitating international investment and improving accessibility for investors.

Cambodian Investment in 2024: An Overview

Aligned with the Pentagonal Strategy introduced in 2023, the Asian Development Bank (ADB) launched its new country partnership strategy for Cambodia for the 2024-2028 period. This strategy focuses on accelerating private-sector-led economic diversification and enhancing climate adaptation initiatives in agriculture, water resource ecosystems, and urban infrastructure.

The Council for the Development of Cambodia (CDC) reported in July that 190 new projects, including production expansion and special economic zone investments, have been approved, totaling an investment of USD $3.2 billion in the first half of 2024. The industrial sector accounted for USD $1.843 billion (over 55%), while infrastructure and other sectors attracted about USD $753 million (23%).

Significant real estate and property development investments include:

• Establishing and operating 2,870 five-star hotel rooms and business centers in Sangkat 4, Sihanoukville, with an investment capital exceeding USD $500 million.
• Constructing a multi-purpose port and logistics center in Kampong Chhnang, with an investment of over USD $100 million.

Expanding International Economic Investments and Agreements

In a recent meeting between Prime Minister Hun Manet and Japanese Foreign Minister Kamikawa Yoko, Japan and Cambodia agreed to expand cooperation on infrastructure development, particularly focusing on the Sihanoukville Autonomous Port. Additionally, Japan will provide approximately USD $2 million to enhance Cambodia’s electricity network in the capital.

In July 2024, the Cambodian Prime Minister met with the Ambassadors of Malaysia and Germany to discuss boosting trade and investment and exploring specific projects in the commercial and tourism sectors. The second France-Cambodia Business Forum, also taking place in July, will cover sectors such as construction, infrastructure, digital technology, healthcare, energy, urban planning, tourism, logistics, transportation, agriculture, and agri-food.

State visits to France, South Korea, Laos, Thailand, and Australia in 2024 have resulted in various economic developments and Memorandums of Understanding across multiple sectors.

Simplified Entry Procedures with the New E-Immigration Process

Cambodia implemented a new e-immigration application process in July 2024, streamlining entry for tourists, expats, and Cambodians. The Cambodia e-Arrival (CeA) scheme requires travelers to complete an online application within seven days of arrival, even if they have a visa. While the process is straightforward and more convenient than the old paper system, visas still need to be applied for separately.

However, Cambodia faces competition from neighboring countries in visa policies. Thailand offers visa-free entry for several countries, and Vietnam has extended visa durations for selected countries. Laos has also introduced temporary visa facilitations from July to the end of the year, offering visa-free travel for Chinese citizens and select European countries, along with extended stay durations for multiple-entry visas. Indonesia has announced plans for visa-free travel for citizens of 20 countries, including China and India.

Land Ownership Options for Foreign Investors

While direct land ownership in Cambodia is restricted to Cambodian citizens or entities, there are alternatives for foreign investors:

1. Landholding Company: Foreigners can form a Cambodian company with at least 51% Cambodian ownership to buy land.
2. Trust Company: Allows foreigners to buy land through a trust company registered with the Ministry of Economy and Finance, covering various types of real estate.
3. Leasehold Property: Foreigners can buy leasehold property, granting them 15 to 50 years of access, renewable for another 50 years. This permits development and construction on the land, although the land itself remains state-owned.
4. Nominee Structure: Foreigners can enter into a legitimate partnership with a Khmer citizen or use a nominee arrangement where a local acts as a silent shareholder.

Additionally, the Special Investment Promotion Program for Sihanoukville in 2024 offers another investment mechanism in this region.

Conclusion

Cambodia is making significant efforts to attract foreign investment through strategic economic and diplomatic initiatives. The country’s focus on diversifying investments, enhancing infrastructure, and simplifying entry procedures are key factors contributing to its growing appeal. While challenges remain, particularly in visa policies, Cambodia’s proactive approach and innovative investment options for foreigners underscore its commitment to becoming a high-income country by 2050.

Source: http://www.realestate.com.kh

One of the unique nations in the world, Japan is able to keep up excellent connections with many other nations, including Cambodia. When we take part in conferences, intellectual discussions, or political gatherings in ASEAN countries, we often hear individuals discussing the US-China competition, the Russia-Ukraine War, India’s ascent, and the internal problems facing ASEAN member states.

Japan has been noted as the nation that has received the highest respect from all of the ASEAN countries when people prefer to discuss the US-China Competition in those countries. There isn’t a single ASEAN nation that struggles or has ill will against Japan.

Already, seventy-one years have passed since Cambodia and Japan established diplomatic ties. Seventy-one years of age ought to be sufficient for both nations to comprehend one another and learn everything from one another. Japan and Cambodia resumed formal diplomatic ties in January 1953. In 1955, Hirohito, the Japanese Emperor, granted Norodom Sihanouk, the King of Cambodia, the Order of the Chrysanthemum.

Japan is a democratic nation that has helped Cambodia under various regimes and during various circumstances. Even though western nations pressured Japan not to support Cambodia, particularly as Cambodia got ready for the 2017 election, Japan just wants to help Cambodia improve its own circumstances. Japan is aware of Cambodia’s political structure and its current state of affairs.

2017 brought many difficulties to Cambodia, including the closure of a well-known newspaper and numerous local radio stations that carried programming from outside the country. That year saw the arrest of Mr. Kem Sokha, the head of the opposition party.

2017 marked a significant turning point for Cambodia, with numerous changes to the country’s political landscape and atmosphere. While many Western nations had stopped supporting the government of Cambodia at that point, Japan persisted in its support of the country, offering the National Election Committee of Cambodia a great deal of technical assistance. Western nations did not think that Cambodia could turn things around, and at the time they advised the government of Cambodia to liberate the leader of the opposition party and reopen the newspapers that were seen as the country’s symbols of press freedom. The government of Cambodia has just replied to the international community, requesting that it be respected for its sovereignty and the laws that it has just implemented internally.

Japan, a longtime ally of Cambodia and a nation with close ties to the late King Norodom Sihanouk, did not ask the Cambodian government to take any action in lieu of continuing to assist Cambodia in getting ready for the general election. Japan feels that Cambodia ought to be allowed to handle its own domestic issues.

When there are issues or disagreements, Japanese diplomats and ambassadors always endeavor to have face-to-face discussions with the Cambodian government. They are extremely courteous and respectful of each nation’s internal matters. Before having a spoken discussion, Japanese diplomats never permit thoughts or suggestions for the Cambodian government to be shared with media. Communicating verbally and in person are crucial for mutual understanding.

Read full article at Khmer Times: https://www.khmertimeskh.com/501519013/why-japan-is-very-special-for-cambodia/

History of BYD Company in Cambodia

BYD, a publicly listed Chinese multinational manufacturing company, has been making waves in the global automobile industry, particularly in the electric vehicle (EV) sector. The company, founded in 1995, initially focused on rechargeable batteries, which laid the groundwork for its foray into the automotive market. BYD’s presence in Cambodia, though not as deeply rooted as in other regions, has seen significant developments over the past few years. BYD entered the Cambodian market with its electric buses and vehicles, aiming to introduce sustainable transportation solutions. Their efforts align with Cambodia’s increasing focus on green energy and sustainable development. Over time, BYD’s commitment to innovation and quality has earned it a reputation as a leader in the EV market. The company’s vehicles, known for their advanced technology and environmental benefits, have started to gain traction among Cambodian consumers and businesses alike. As Cambodia continues to develop its infrastructure and embrace modern technologies, BYD’s expansion into the local market signals a promising future for the company and the country’s automotive industry.

Recent Update

China’s BYD is leading the way in Cambodia’s emerging electric vehicle (EV) market. In the first half of 2024, BYD sold 658 cars in Cambodia, representing over 40 percent of the 1,614 EVs sold in the country during that period.

According to the Ministry of Public Works and Transport (MPWT), in the first six months of 2024, a total of 2,968 electric vehicles were officially registered in Cambodia. This number includes 914 motorcycles, 440 tricycles, and 1,614 cars.

Japan’s Toyota sold 261 EVs, while the US-based Tesla sold 186, with other brands accounting for the remaining sales, according to a recent report.

The MPWT noted that the demand for electric vehicles is steadily increasing in Cambodia. “We see daily registrations of EVs, with more people showing optimism and interest in electric vehicles, marking a new trend,” the ministry stated.

Electric vehicles offer several advantages, including low daily operational costs and reduced pollution levels, with some automakers claiming zero emissions. The Royal Government of Cambodia, in collaboration with the MPWT and other relevant ministries and institutions, is working to expand the number of charging stations across the country.

Cambodia aims to have over one million electric two- and three-wheelers on its roads between 2030 and 2040, and about 100,000 electric cars between 2035 and 2042, according to the recently released Electric Vehicle (EV) Roadmap for Charging Stations by MPWT.

The ministry outlines three scenarios for EV adoption by 2050. Scenario One is the most conservative, Scenario Two is the most likely, and Scenario Three is the most aspirational.

All three scenarios predict that Cambodia will have over a million two- and three-wheeler electric vehicles between 2030 and 2040, with the number growing to between 2.1 million and 7.3 million units by 2050.

In Cambodia, adopting electric vehicles can significantly reduce fuel expenses, saving users an average of $133 annually for electric motorcycles and $1,069 for electric cars. These savings could collectively amount to between $14 million and $78 million per year by 2030, and between $509 million and $1.76 billion annually by 2050. To support the growing number of electric vehicles, the country will need extensive charging infrastructure, requiring between 9,900 and 33,800 charging points by 2050, with an investment ranging from $168 million to $576 million. Additionally, Cambodia will need battery disposal facilities. By 2040, several hundred MWh of batteries will need to be repurposed for secondary applications, and by 2050, between 0.7 GWh and 2.5 GWh will be decommissioned annually for secondary uses, while between 0.3 GWh and 1.4 GWh will need to be recycled, meeting six to nine percent of the demand for new batteries.

Ministry of Public Works and Transport (MPWT)

BYD has recently announced its intention to open an automobile assembly plant in Cambodia. This exciting news was shared by Cambodian Prime Minister Samdech Moha Borvor Thipadei Hun Manet during a get-together and solidarity dinner with Cambodian small and medium enterprises and handicrafts in Phnom Penh on June 27, coinciding with the First National Day of Micro, Small and Medium Enterprises. The Prime Minister emphasized that BYD’s entry into Cambodia is a positive development for the nation, adding to the existing automobile assembly plants of prominent brands like Ford, Toyota, and others.

In his speech, Samdech Thipadei Hun Manet highlighted the significance of this development for Cambodia’s industrial sector and encouraged private sector entities, particularly micro, small, and medium enterprises, to collaborate closely with the Royal Government in achieving the country’s development goals. Currently, Cambodia boasts six automobile assembly plants: Daehan Auto, which manufactures Ssangyong vehicles; RMA Automotive, producing Ford cars; Camko Motor, making Hyundai vehicles; HGB Motors Assembly, manufacturing Kia cars; GTV Motor, producing local brand cars under the GTV label; and Toyota Tsusho Manufacturing (Cambodia), which produces Fortuner and Hilux models.

The Cambodian automotive market has seen substantial growth, with vehicle imports totaling approximately US$385 million from January to May 2024. This trend underscores the growing demand for vehicles in the country and presents a lucrative opportunity for BYD to tap into the market with its electric vehicles.

Top 7 Reasons Why BYD Company in Cambodia Could Potentially Supply the Leading Electric Vehicle (EV) in Cambodia

1. Growing Demand for EVs

As global awareness of climate change and environmental sustainability increases, there is a rising demand for electric vehicles. In Cambodia, the government and consumers are becoming more conscious of the benefits of EVs, such as reduced emissions and lower fuel costs. BYD, with its extensive experience and innovative technology, is well-positioned to meet this growing demand.

2. Supportive Government Policies

The Cambodian government has shown a commitment to promoting green energy and sustainable transportation solutions. Policies and incentives supporting the adoption of EVs and the development of related infrastructure make Cambodia an attractive market for BYD. The establishment of an assembly plant aligns with these policies, fostering local manufacturing and reducing import dependency.

3. Strategic Location

Cambodia’s strategic location in Southeast Asia provides a gateway to other regional markets. By establishing a manufacturing base in Cambodia, BYD can efficiently serve not only the local market but also neighboring countries. This regional presence enhances BYD’s competitive edge and logistical efficiency.

4. Skilled Workforce and Cost Advantages

Cambodia offers a cost-competitive environment for manufacturing operations. The availability of a skilled workforce at relatively lower labor costs compared to other countries in the region presents a significant advantage for BYD. This cost efficiency can translate into competitive pricing for BYD’s vehicles in the market.

5. Rising Middle Class

The growing middle class in Cambodia is driving demand for modern, reliable, and affordable transportation options. As incomes rise, consumers are increasingly looking for vehicles that offer value for money. BYD’s range of electric vehicles, known for their affordability and advanced features, is well-suited to meet the needs of this emerging consumer base.

6. Technological Leadership

BYD is a global leader in battery technology and electric vehicle manufacturing. Their continuous investment in research and development ensures that their vehicles are equipped with the latest advancements in EV technology. This technological leadership positions BYD as a frontrunner in the Cambodian EV market, offering consumers cutting-edge solutions.

7. Environmental Benefits and Social Impact

Electric vehicles contribute to reduced greenhouse gas emissions and lower levels of air pollution, leading to improved public health and environmental sustainability. BYD’s presence in Cambodia can significantly contribute to the country’s green initiatives, supporting the government’s goals of reducing carbon footprints and enhancing the quality of life for its citizens.

Conclusion

BYD’s intention to open an automobile assembly factory in Cambodia marks a significant milestone in the country’s journey towards industrialization and sustainable development. The combination of a supportive government, strategic location, cost advantages, and a growing demand for electric vehicles creates a conducive environment for BYD’s success. As the Cambodian automotive market continues to evolve, BYD’s innovative and eco-friendly vehicles are poised to become a leading choice for consumers. The collaboration between BYD and the Cambodian government not only promises economic growth but also underscores a shared commitment to environmental sustainability.

We would love to hear your thoughts on BYD’s plan to open an automobile assembly factory in Cambodia. Do you think this move will significantly impact the local automotive market and environment? Share your opinions and join the discussion in the comments below!