The Cambodian side was led by H.E. Chhieng Yanara, Senior Minister in Charge of Special Missions and Second Vice-Chairman of the CDC, while the KOICA side was headed by Ms. Choi Moon Jung, Country Director of the KOICA Cambodia Office.

According to the KOICA Cambodia Office’s press release, AKP received this afternoon, the main purpose of this meeting was to discuss candidate projects for 2025, new projects identification plan for 2026, and update ongoing programmes.

Both sides also touched on the preparation for the inauguration ceremony of a new building for the National Incubation Centre of Cambodia (NICC) at the Royal University of Phnom Penh (RUPP).

During the meeting, Ms Choi Moon Jung commended Cambodia for its swift progress across all domains and conveyed her heartfelt gratitude to the Royal Government of Cambodia and its officials, specifically the CDCB/CDC, for their excellent collaboration in ensuring the success of the KOICA’s projects and programmes in Cambodia.

H.E. Chhieng Yanara in return highly expressed his gratitude to KOICA, and the Government and people of the Republic of Korea, for continuously supporting Cambodia’s socioeconomic development through the implementation of projects and programmes. He said that he highly valued all the achievements made by KOICA.

Moreover, the two sides discussed continued cooperation on the Official Development Assistance (ODA) between Cambodia and Korea. They also laid stress on the next step of working between KOICA, CDC, and the Cambodian relevant ministries to develop the most feasible new projects for 2026.

Last year, KOICA marked a milestone–the 20th anniversary of its presence in Cambodia. Since the establishment of its Cambodia Office on Sept. 1, 2003, KOICA has assisted the socio-economic development of Cambodia in four core-priority sectors, including Water Management and Public Health, Education, Agriculture and Rural Development, and Transport through various ODA projects and programmes of a total value of about US$366.5 million from 1991-2023.

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The meeting, led by Cambodian Deputy Prime Minister Sun Chanthol and Japanese Ambassador Ueno Atsushi, brought together representatives from various ministries, including Land Management, Urban Planning and Construction, Mines and Energy, Public Works and Transport, and the Japan International Cooperation Agency (JICA) Cambodia Office.

Two major topics dominated the discussion are, the Cambodia-Japan Special Economic Zone and the expansion of Sihanoukville Autonomous Port.

The potential creation of a dedicated economic zone aimed at attracting more Japanese investment to Cambodia was a central focus. This initiative aims to capitalize on existing economic ties and promote further collaboration between the two nations.

Other discussions focus on the Sihanoukville Port expansion. The plan to expand Sihanoukville Autonomous Port into a regional hub was also discussed. This strategic move aims to strengthen Cambodia’s position as a key player in regional trade and logistics.

In addition to these specific projects, the meeting also touched on the Comprehensive Intermodal Transport and Logistics Masterplan (CIT-MP) 2023-2033.

This ambitious plan, developed collaboratively by the Ministry of Public Works and Transport and the Supreme National Economic Council with the support of key partners, aims to improve and integrate seven major transportation master plans.

This comprehensive approach seeks to streamline the movement of goods, passengers, and services within Cambodia, the region, and beyond.

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The launching ceremony was held here on Nov. 10 under the presidency of H.E. Chea Chanto, Honorable Governor of NBC, H.E. Ms. Chea Serey, NBC Governor, representatives of the Japanese Embassy in Cambodia and Japan International Cooperation Agency (JICA) Cambodia Office, heads of commercial banks and microfinance institutions, and relevant stakeholders.

The 245-page book was jointly elaborated by the NBC and JICA Ogata Research Institute, and the work started in 2013.

As dollarisation has arisen in Cambodia in a context of weak confidence in the Riel, following nearly three decades of civil war and a massive influx of US dollars during the first general election under the United Nations Transitional Authority in Cambodia (UNTAC), the findings are outputs which are required to implement incentive and support policies to reduce dollarisation, said H.E. Ms. Chea Serey.

“The findings of the research would provide valuable experiences to least developed countries for better regulation of dollarisation and utilization of policies in the further financial and economic development,” she said in her opening remarks.

She emphasized that the Royal Government and the NBC have increased the public trust in Riel usage constantly and implemented a series of market-oriented measures to promote Riel since the early 2000s. These measures have increased the demand for Riel about 16 times as witnessed in currency in circulation, which rose up to 14.5 trillion Riel compared to 0.85 trillion Riel twenty years ago.

“The growth is an essential milestone and a strong hope of increasing usage of Khmer Riel,” she added.

Mr. Sanui Kazumasa, Chief Representative of JICA Cambodia Office, said that the book will be of great benefit to readers such as policymakers, researchers, and students working on dollarisation and economics.

The launch of this book took place on the occasion of the 70th Anniversary of Diplomatic Relations between Cambodia and Japan, which showcases more clearly the strengthened and long-lasting friendship between the two countries and the contribution of Japan to Cambodian socio-economic development, underlined H.E. Ms. Chea Serey.

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New office supply in the market is expected to continue to climb up this year with an addition of 215,00 sqm of office space to be complete within 2023, pushing the total supply by 24% to over 1 million sqm. In the first half of 2023, approximately 39% of the expected new supply this year was added to the existing supply.

The average occupancy rate across the market (centrally owned and strata title spaces) further decreased from 60% in the previous quarter to 58%.

Although, quoting office rents across all grades in the central business district and no-central business district increased between 2% to 4% H-o-H, achieved rents remained the same. Since office asking rents have experienced a huge drop of up to 20% since the peak in 2019, quoting rents have plateaued in the last 18 months.

This is because rather than reducing quoting rents, landlords opt for other incentives such as free parking space, longer rent-free periods, or tenant improvements. This means that effective rents are still being compressed.

“With the upcoming supply over the rest of 2023 and the fewer business expansions, thus low new demand of office spaces, we expect further pressure of office rents and occupancy level during the remaining period of 2023,” said Daluch Chin, Senior Manager, Valuation&Advisory of CBRE Cambodia.

“Cambodia being more globalized than ever faces a range of headwinds. The challenges observed over the first six months of 2023 are expected to persist as we observe a slowdown in the global macro context. ” Said Lawrence Lennon, Managing Director of CBRE Cambodia.

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The demand for residential properties in Cambodia, particularly in Phnom Penh, has been increasing. This has led to a rise in prices and new developments, particularly in the high-end market. Properties in the city are becoming more modern and luxurious, with several new shopping centers and grade-A office buildings being built. Developers are also investing in the development of new townships and satellite cities, providing residents with new housing options outside of the city center.

The office and retail sectors have also seen growth in Cambodia, with several new shopping centers and grade-A office buildings being built in Phnom Penh. This has attracted international retailers and businesses, who see the potential in the country’s growing economy and young, consumer-driven population. The retail sector in particular has been growing rapidly, with several new shopping centers being built and international brands entering the market. This has created a new generation of consumers demanding high-quality products and services, providing opportunities for new businesses to enter the market.

Despite the growth of the real estate market in Cambodia, the sector remains relatively underdeveloped compared to other Southeast Asian countries. One of the main challenges the sector faces is a limited pool of financing options. Most banks in Cambodia are still relatively small, with limited resources and limited experience in the real estate sector. This makes it difficult for developers to secure financing for their projects and can limit the growth of the sector.

Another challenge facing the real estate sector in Cambodia is limited infrastructure. The country still lacks many of the basic infrastructure facilities that are necessary for the development of the sector, such as adequate transportation systems and utilities. This can make it difficult for developers to build and market their projects and can limit the growth of the sector.

The weak legal framework in Cambodia is also a challenge facing the real estate sector. There are still several legal and regulatory barriers that need to be addressed in order to create a more transparent and stable investment environment. This includes the need for stronger protection of property rights, clearer regulations regarding land ownership, and better dispute-resolution mechanisms.

Despite these challenges, the real estate sector in Cambodia continues to grow, driven by the increasing demand for new housing and commercial space. The government has recognized the potential of the sector and is taking steps to support its growth. This includes the development of new regulations and policies to create a more favorable investment environment, and the investment in new infrastructure to support the sector’s growth.

In conclusion, Phnom Penh is a city on the rise, driven by the growth of Cambodia’s real estate market. The city’s skyline is changing, with new buildings and developments being built, making Phnom Penh a modern and dynamic city with a growing economy. Despite the challenges facing the sector, the future looks bright for the real estate market in Cambodia. Investors, developers, and homebuyers alike should take note of the opportunities available in the country, and consider the potential for growth in this exciting market. The development of the real estate sector in Cambodia will play a key role in the country’s economic development, helping to build a brighter future for the people of Cambodia and transforming Phnom Penh’s skyline.

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