Business in brief: Economic growth to slow to 7.5pc: WB, Cargill eyes Cambodia entry, Microsoft

Written by The Phnom Penh Post

Courtesy of Phnom Penh Post at http://www.phnompenhpost.com

Economic growth to slow to 7.5pc: WBCambodia’s economic growth is expected to slow this year from 9.6 to 7.5 percent due to high inflation and a downturn in garment exports, the World Bank said on April 1. The garment industry grew only eight percent last year after suffering a dismal fourth quarter that saw orders plummet by nearly half. The key industry faces increased competition from China and Vietnam, with further risks looming due to an economic slump in the US, Cambodia’s largest market for textiles.

Cargill eyes Cambodia entry

US agricultural giant Cargill is considering opening a representative office in Phnom Penh on the back of projected strong sales from Vietnam, according to Chanh Truong, chairman of Cargill Vietnam Ltd. The company’s Cambodian affairs are currently handled by its Ho Chi Minh City-based subsidiary but an increase in sales could see Cargill entering Cambodia on a permanent basis. “It all depends on the volume of animal feed that we sell to Cambodia from Vietnam. We would have to increase sales by 500 percent to 1000 percent for us to consider a permanent office in Cambodia,” Truong said. “We are at a very early stage at the moment. We estimate maybe six months to a year,” he added. (Sebastian Strangio)

Microsoft arrives

Microsoft has unveiled a market plan for Cambodia to take advantage of what it calls a “budding and opportunistic” environment for IT. Chris Atkinson, president of Microsoft Southeast Asia, said at the launch of Microsoft’s Marketing Development Program for Cambodia that the company will use a business model previously applied in Vietnam. “We hope that MDP Cambodia will have more people on the ground, more resources and therefore more opportunities for technology transfer and technical support as well to our partners and customers,” he said. (Mom Kunthear)

DuPont to open Cambodia office

American plastics and chemicals conglomerate DuPont is seeking a license to open a branch in Phnom Penh for what will be its first Cambodian office. DuPont is a major supplier of materials to the agricultural, electronics, communications and construction sectors. “We expect to obtain a license to open a representative office in early April,” said DuPont (Thailand) Ltd managing director Montri Simagrai. “We want to … recruit several local employees first, hopefully by the end of May,” he said, adding that the company aimed to be fully operational by June or July. (Sebastian Strangio)