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The Cambodia investment opportunity

Rainer Michael Preiss, investment advisor & portfolio strategist
03.04.23 20:33
2023 year-to-date the small Asian country of LAOS and its LSX (Laos Securities exchange) is the best performing stock market in the world.

Historically, Vietnam, Laos and Cambodia made up Indochina. In French controlled Indochina they used to opine ” the Vietnamese grow the rice; the Cambodians watch it grow and the people from Laos listen to it grow”.

While Laos Year-to-date is the Best performing stock market in the world, in 2023 & beyond Cambodia is the one ASEAN market to watch and invest in.

Cambodia is a developing country in Southeast Asia, with a population of around 16 million people. In recent years, the Cambodian economy has experienced strong growth, with a GDP growth rate of around 7% per year on average over the past decade. Cambodia's economy is largely driven by agriculture, tourism, and manufacturing.

The pol pot regime of the Khmer rouge has become known for ‘auto-genocide” and the twentieth century’s worst cases of gross human rights abuses. The seriousness and terror of the Khmer rouge legacy broke into the western consciousness in 1984 with the release of the film the killing Fields. The story and personal tragedy of a Cambodian journalist named Dith Pran and his friendship with New York Times reporter, Sydney Shanberg.

Since the Khmer empire the country of Cambodia, had several names, today the country is again simply known as the Kingdom of Cambodia. Parliamentary constitutional monarchy, with a propitious economy and promising investment markets.

Cambodia is fast emerging as a hub for investment in Southeast Asia, attracting both local and foreign investors with its rapidly growing economy and supportive business environment. The country has seen tremendous growth in recent years and is poised for even more success in 2023.

Ranked among Asia’s fastest-growing countries, Cambodia will see greater demand for real estate as a natural result of its rising urbanization rate and growing middle class.

According to the world bank The Gross Domestic Product per capita in Cambodia was last recorded at 1429.94 US dollars in 2021. The GDP per Capita in Cambodia is equivalent to 11 percent of the world's average.

For a country that once outlawed money and any private poverty, Cambodia has now a money museum and a promising stock market. While PolPot of the Khmer rouge allegedly spent time in Pyongyang and admired Kim il sung the supreme leader of North Korea (democratic People’s republic of North Korea. The CSX Cambodia stock exchange was established by KRX Korea Exchange of south Korea. ROK republic of south Korea. South Korean banks have retail presence in Cambodia.

The Cambodia Securities Exchange was incorporated in February 23rd, 2010. The CSX is co-owned by the Ministry of Economy and Finance and the Korea Exchange (KRX) on a 55:45 basis.

A total of 18 corporate securities currently features on the Cambodia Securities Exchange (CSX) – nine stocks and nine bonds. Increasing of number of new securities listings is a key objective and several interesting IPOS are in the pipeline.

Cambodia is a dollarized economy in the orbit of China, where China is building Shenzhen like industrial zones in Sihanoukville.

Chinese and Cambodian central banks talk about settling cross-border transactions in local currency The development of local currency settlement for cross-border trade between the two nations has been explored, according to a statement issued by the National Bank of Cambodia.

As a future oriented economy, The Cambodian government approved the National Policy on Green Growth back in 2013, with the goal of transitioning even further towards a low-carbon economy.

With the right government policies in place, the capital market can play a significant role in collecting private capital for sustainable investment. Cambodia plans to launch the Collective Investment Scheme (CIS) market this year, another boost to the local capital market.

With the stock market in the Kingdom still in its early stages, with a limited number of registered bonds and investors participating, the Cambodia Securities Exchange (CSX) remains dedicated to promoting and growing it. CSX is committed to encouraging potential companies to consider choosing this new source of financing to diversify their capital. Global investors take notice.

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