01 October 2009
World Wildlife Foundation (WFF)
Phnom Penh, Cambodia – Eleven rattan small and medium enterprise owners and other community rattan processors from Phnom Penh and provinces meet on September 28th to officially form Cambodia’s first rattan association. The agenda will focus on election of a management committee and discussion over conditions and roles of current and future memberships.
"While the association is perceived by members as creating space and opportunity for key actors in the rattan production chain to meet and work together, this institutional initiative is described as a fundamental first step to achieve the goal of maintaining sustainable rattan production and supply. We are delighted to support this project and this activity in particular," said the representative of the European Commission's Delegation in Phnom Penh.
“The formation of the rattan association is critical to ensure understanding of community suppliers, processors and traders about the need to maintain sustainable supply of rattan for clean and better production,” said Mr Lip Cheang, a founder of the rattan association and owner of Kampuchea Samay Thmei rattan factory.
Fast growing economies elsewhere in the region are motivating rapid expansion of processing activities leading to demand for rattan resource at an unsustainable level. There is urgent need to establish a model of sustainable production that can support continuous growth of rattan in forests, while maintaining seasonal harvesting and sustainable supply.
“This is the right time for moving forward with concrete actions that help the development of rattan industry of Cambodia if the country is to export clean and high quality products into international markets, while continuing to sustainably manage rattan resource in forest,” said Mr Ou Ratanak, Rattan Project Manager from WWF.
The rattan association will first of all put a legal identity to a group of rattan suppliers and processors. Such an identity is important for the recognition of their action and goal by national and international societies.
“As a legally established entity, we can make our voice heard when we need support from the Government, for instance, with coordination from WWF and NGO partners, we will meet and dialogue with relevant ministries to obtain licence for our business so that we can legally export our products in the future,” Mr Lip Cheang said.
One of the operational objectives of the association is to also provide Cambodian processors with new knowledge and experience related to rattan, processing techniques, trade and markets. This will be the key learning platform and guide for them to improve their processing and product quality.
“The project identified that processors and exporters are not familiar with using the environmentally-friendly production techniques and that there is lack of understanding about international market requirements,” Mr Ratanak said.
“Limited skill to creatively diversify design and style also refrain Cambodian products from being competitive in the international market,” he added.
WWF is working with Institute for Environmental Science and Technology based in Hanoi and Artisans Association of Cambodia to improve the current non environmentally friendly production practices of rattan as such: wasteful use of rattan during processing, poor grading and storing as well as chemical use, which has negative impacts on the environment and therefore affects the product quality.
“One of the project’s major objectives, funded by European Union, is to engage small and medium enterprises in Cleaner Production, which aim at introducing proper techniques for processing activities to ensure a system of quality assurance,” said Mr Thibault Ledecq, Rattan Programme Manager from WWF.
For more information, contact:
asnarith.tep@wwfgreatermekong.org
Friday, October 2, 2009
Thursday, October 1, 2009
Investors Lose Interest in Cambodia, Vietnam
SEPTEMBER 30, 2009
By ELLEN SHENG
The Wall Street Journal
In the private equity world, Cambodia just isn't what it used to be.
At one point in early 2008, fund managers were expecting to raise as much as $500 million for investment in the country. Instead, interest from investors evaporated with the financial crisis, forcing several funds to shut down or scale back.
Frontier Investment and Development Partners, which once hoped to launch a $250 million Cambodia fund, is struggling to find seed investors. Another, Cambodia Emerald postponed fundraising for their planned $100 million fund last year.
In total, Cambodia funds raised only $23 million in 2008, the Centre for Asia Private Equity Research, or APER, says. So far this year they've raised $5.6 million.
In neighboring Vietnam, once one of Asia's hottest investments, investors have also lost interest. Last month Indochina Capital Vietnam Holdings -- a prominent fund that invested in both listed and private companies -- was liquidated.
More broadly, Vietnam focused managers have raised no funds this year, according to APER data, a stark drop from the $1.6 billion raised in 2007. Naturally, deal making has declined. Dealogic tallies $20 million worth of private-equity investments in the two markets so far this year -- less than a third of the investments made the first nine months of 2008.
For those still in the game, the fundraising drought presents an opportunity. With fewer competitors sniffing around for investments, terms are better for buyers.
Managers say being smaller has its benefits, since most opportunities are in startups anyway. The majority of businesses in Vietnam are less than 8 years old.
Expectations for deal sizes have certainly changed. Leopard Cambodia, which has raised $28.6 million out of a planned $100 million, is now targeting investments between $1 million and $2 million. It once expected deals to be between $5 million and $15 million.
Leopard is among those that's resumed fundraising efforts. Another, Mekong Capital, a Vietnam-focused private equity firm, is raising a $150 million fund, its fourth.
But they're certainly not getting the reception they once might have. Investors are showing an increased appetite for risk, but few are willing to extend themselves as far as Cambodia just yet.
Write to Ellen Sheng at ellen.sheng@dowjones.com
By ELLEN SHENG
The Wall Street Journal
In the private equity world, Cambodia just isn't what it used to be.
At one point in early 2008, fund managers were expecting to raise as much as $500 million for investment in the country. Instead, interest from investors evaporated with the financial crisis, forcing several funds to shut down or scale back.
Frontier Investment and Development Partners, which once hoped to launch a $250 million Cambodia fund, is struggling to find seed investors. Another, Cambodia Emerald postponed fundraising for their planned $100 million fund last year.
In total, Cambodia funds raised only $23 million in 2008, the Centre for Asia Private Equity Research, or APER, says. So far this year they've raised $5.6 million.
In neighboring Vietnam, once one of Asia's hottest investments, investors have also lost interest. Last month Indochina Capital Vietnam Holdings -- a prominent fund that invested in both listed and private companies -- was liquidated.
More broadly, Vietnam focused managers have raised no funds this year, according to APER data, a stark drop from the $1.6 billion raised in 2007. Naturally, deal making has declined. Dealogic tallies $20 million worth of private-equity investments in the two markets so far this year -- less than a third of the investments made the first nine months of 2008.
For those still in the game, the fundraising drought presents an opportunity. With fewer competitors sniffing around for investments, terms are better for buyers.
Managers say being smaller has its benefits, since most opportunities are in startups anyway. The majority of businesses in Vietnam are less than 8 years old.
Expectations for deal sizes have certainly changed. Leopard Cambodia, which has raised $28.6 million out of a planned $100 million, is now targeting investments between $1 million and $2 million. It once expected deals to be between $5 million and $15 million.
Leopard is among those that's resumed fundraising efforts. Another, Mekong Capital, a Vietnam-focused private equity firm, is raising a $150 million fund, its fourth.
But they're certainly not getting the reception they once might have. Investors are showing an increased appetite for risk, but few are willing to extend themselves as far as Cambodia just yet.
Write to Ellen Sheng at ellen.sheng@dowjones.com
Food association says rice venture with Cambodia necessary
Wednesday, September 30, 2009
Source: Thanh Nien (Hanoi)
Cambodia is expected to export around 1 million tons of rice to Vietnam this year
A rice venture with Cambodia will help save Vietnam from tough competition against the neighboring country in future rice exports, an official of the Vietnam Food Association said.
The rice area in Cambodia is as large as Vietnam, but Cambodia’s rice production figures are low due to the lack of modern technology, Vietnam Food Association Deputy Chairman Nguyen Tho Tri told the Saigon Economic Times Tuesday.
Still, the country has a surplus of rice for export to Thailand and Vietnam, Tri said. Cambodia is expected to export around 1 million tons of rice to Vietnam this year.
“If the huge potential is tapped, Cambodia will become a rice exporter as large as Vietnam.”
Vietnamese and Cambodian officials met in August to discuss setting up a rice joint venture project to boost shipments of Cambodian rice. The Southern Food Corporation, one of Vietnam’s two biggest state-owned agriculture food companies, and the Bank for Investment and Development of Vietnam would represent a 70 percent stake in the Cambodia-based joint venture, Tri said.
The joint venture plan has faced criticism from Vietnamese farmers, who said the government should focus only on exporting locally-produced rice products.
But Tri said the project is the right move.
“If other countries invest in the Cambodian rice sector first, Vietnamese rice will face fierce competition against Cambodian rice on the global market in the future.”
He noted that both Thailand and China also wanted to work with Cambodia in rice exports.
Source: Thanh Nien (Hanoi)
Cambodia is expected to export around 1 million tons of rice to Vietnam this year
A rice venture with Cambodia will help save Vietnam from tough competition against the neighboring country in future rice exports, an official of the Vietnam Food Association said.
The rice area in Cambodia is as large as Vietnam, but Cambodia’s rice production figures are low due to the lack of modern technology, Vietnam Food Association Deputy Chairman Nguyen Tho Tri told the Saigon Economic Times Tuesday.
Still, the country has a surplus of rice for export to Thailand and Vietnam, Tri said. Cambodia is expected to export around 1 million tons of rice to Vietnam this year.
“If the huge potential is tapped, Cambodia will become a rice exporter as large as Vietnam.”
Vietnamese and Cambodian officials met in August to discuss setting up a rice joint venture project to boost shipments of Cambodian rice. The Southern Food Corporation, one of Vietnam’s two biggest state-owned agriculture food companies, and the Bank for Investment and Development of Vietnam would represent a 70 percent stake in the Cambodia-based joint venture, Tri said.
The joint venture plan has faced criticism from Vietnamese farmers, who said the government should focus only on exporting locally-produced rice products.
But Tri said the project is the right move.
“If other countries invest in the Cambodian rice sector first, Vietnamese rice will face fierce competition against Cambodian rice on the global market in the future.”
He noted that both Thailand and China also wanted to work with Cambodia in rice exports.
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