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Posted by: | Posted on: April 14, 2019

How China changed Sihanoukville

How China changed Sihanoukville

តាមអត្ថបទនេះ គម្រោងមហិច្ចិតាគំនិតផ្តួចផ្តើមផ្លូវសូត្រ(BRI)របស់ចិន កម្ចីគឺមានលក្ខណៈជាកិច្ចសន្យាគ្មានការស្មោះត្រង់(opaque contracts) អត្រាការប្រាក់ខ្ពស់ហួសហេតុ(exorbitant interest rates) ការផ្តល់កម្ចីដោយយកប្រៀបខ្លាំងលើម្ចាស់បំណុល(predatory loan practices) និងការឃុបឃិតគ្នាដោយអំពើពុករលួយ(corrupt deals)។ ជាលទ្ធផល ប្រទេសក្រីក្រជាច្រើននិងទន់ខ្សោយខាងស្ថាប័នល្អ(weak states and weak governance countries) មានបំណុលវ័ណកររើខ្លួនមិនរួមរហូតយល់ព្រមធ្វើសម្បទាលក់ឬប្រគល់ដីធ្លីក៏ដូចជាសម្បត្តិដាក់ចំណាំប្រកាន់ទៅអោយចិនទាំងដុលតែម្តង។ ចំណែកទេសចរណ៌និងវិនិយោគិនចិនវិញ និយមប្រើប្រាស់តែក្រុមហ៊ុនចិន សម្ភារៈចិន និងកម្មករចិន ដើម្បីទាក់ទាញយកលុយនោះទៅផ្តល់ផលប្រយោជន៌អោយចិនវិញ ទុកអោយប្រជាជនអ្នកមូលដ្ឋាននិងម្ចាស់ប្រទេសត្រដររស់តាមសម្មាអាជីវោខ្វះខាតដដែល។ គ្រាន់តែដើម៦ខែនៃឆ្នាំ២០១៨នេះ ជនប្រព្រឹត្តបទអាជ្ញាកម្មចិនដែលប៉ូលីសខ្មែរចាប់បានមានដល់៦៨ភាគរយនៃការចាប់សរុបទាំងអស់ទូទាំងប្រទេស។

Op-Ed: The ASEAN Post Team, 13 April 2019

This photo taken on 13 December, 2018 shows one of the many Chinese casino establishments in Sihanoukville, the coastal capital of Preah Sihanouk province. (Tang Chhin Sothy / AFP Photo)

Sihanoukville used to be a sleepy coastal town in south Cambodia. Its beaches were known for their quiet, cosy – albeit a little seedy – atmosphere that attracted mostly families, individual travellers and backpackers. Aside from the goings-on of the tourists and those connected with the country’s sole deep-water port, nothing much had changed over the years. That was until the Chinese investment flooded in as a result of China’s Belt and Road Initiative (BRI).


Cambodians Lose, As China Tourists And Cash Pour In

Fast forward to 2019 and the once-tranquil city has been transformed beyond recognition. Now an enclave of Chinese investment, Sihanoukville is peppered with Chinese-run, operated and patronised hotels, apartments towers, restaurants and gambling dens. The area is dotted with Chinatowns, festooned with neon signs in Mandarin which have taken the place of Khmer and English language signs.

The magnitude and make-up of its tourists has also changed with the new influx. Tourism increased more than 700 percent between 2012 to 2017, with Chinese tourists accounting for one-third of the 6.2 million visitors Cambodia received last year. Officials estimate that Chinese nationals make up some 90 percent of the expatriate population in Sihanoukville. A number of the long-term Western tourists living in the city have either been pushed or kicked out to make way for better paying Chinese. Some have moved out to avoid the area because of the loss of tranquillity.

Within the BRI framework, Sihanoukville is known as the first port of call on China’s massive infrastructure programme. The area, previously known as Kampong Som before it was renamed after former king Norodom Sihanouk, received US$4.2 billion in Chinese investment for power plants and offshore oil operations.

Beyond Sihanoukville, with the strong support of Prime Minister Hun Sen, the BRI has spread Chinese investment further inland into the kingdom. Cambodia is a key beneficiary of infrastructure projects under China’s trillion-dollar BRI, and this includes financing for new highways, national roads, power plants, airports, and special economic zones (SEZs) dedicated to technology innovations. China has also bequeathed US$100 million in aid to help modernise Cambodia’s military.

Source: Various

Chinese investment and related discontent

With the massive influx of Chinese investments, loans and aid, many have cautioned Cambodia on China’s debt-trap diplomacy. The Chinese loan model, often characterised by opaque contracts, exorbitant interest rates, predatory loan practices, and corrupt deals, has left smaller countries further debt ridden and in danger of losing their sovereignty.

The China Road and Bridge started construction of the country’s first highway last month, a US$2 billion four-lane road linking Sihanoukville and Phnom Penh. The growing dependence on China has led Hun Sen to insist that Cambodia is not a colony of China – going on to rubbish rumours that China plans to set up a naval base in the South China Sea, a strategic area which has long been an issue of contention between China and some ASEAN member nations.

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Posted by: | Posted on: April 14, 2019

The Rising Cost of Strongman Rule in Cambodia

The Rising Cost of Strongman Rule in Cambodia

Op-Ed: Project Syndicate

Apr 12, 2019 SAM RAINSY

Despite boasting unrivaled tourist attractions, large stores of natural resources that could be profitably and responsibly exploited, and one of the world’s youngest labor forces the country’s economy is floundering. And, after 34 years of Prime Minister Hun Sen’s dictatorial rule, Cambodians could soon be facing a higher price.

PARIS – On April 4, a group of international buyers’ associations from the garment, footwear, sporting, and travel goods industries sent a letter to Cambodian Prime Minister Hun Sen to express concerns over abusive labor practices and human-rights violations. Already, Cambodia’s tax-free access to the vast European Union market, granted under the EU’s Everything But Armsscheme, is in danger of being suspended over such violations.If the country is excluded permanently from EBA and other preferential trading arrangements, the associations warned, their sectors – and the Cambodian economy – will take a serious hit.

Hun Sen claims that the international community is unfairly singling out Cambodia. But the truth is that intensifying pressure on the country is consistent with a broader global shift, in which investment is increasingly guided – even dictated – by environmental, social, and governance (ESG) factors.


Cambodia’s descent into dictatorship under the Hun Sen regime | Four Corners

Gone are the days when strong ESG performance was a nice bonus for investors. Pension trustees and fund managers now insist that the companies in which they invest operate in ethical, transparent ways that limit reputational risk. Investment decisions at emerging-market funds are thus increasingly preceded by rigorous ESG screenings – screenings that, after 34 years of Hun Sen’s dictatorial rule, Cambodia has no chance of passing.

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Posted by: | Posted on: April 13, 2019

Scare tactics won’t work with Hun Sen

Op-Ed: Bangkok Post, Scare tactics won’t work with Hun Sen

Cambodian Prime Minister Hun Sen speaks during a ceremony in Phnom Penh on Jan 14, where he said he would ‘step on the throat’ of his rivals if the EU ends preferential trading with the country. (AFP photo)

After six months of close monitoring and engaging with the Cambodian government, the European Union (EU) found that Cambodia has made very little tangible progress in complying with the EU’s demands that it reinstate democratic checks-and-balances, respect human rights and the independence of the media, and drop charges against members of the opposition party.

ASEAN and EU concerned on Cambodia as Hun Sen is heading to turn down democracy

As a result, the EU on Feb 11 began the process to temporarily strip Cambodia of its Everything-but-Arms (EBA) status, which gives it a preferential, tariff-free channel to export all of its products — except for weapons — to the EU.

EU’s Resolution on Cambodia

On the surface, it may seem as if the EU is trying to hurt Cambodia’s economy. However, the objective behind the use of such a “threat” is to force Hun Sen and the executives of the Cambodian People’s Party (CPP) — many of whom are running lucrative businesses across the country — to soften its stance and comply with the EU’s conditions.

Unfortunately, this sort of coercive diplomacy may not yield results.

Hun Sen is still consolidating his grip over the CPP, and any attempt to challenge his position in the party is virtually impossible. After Chea Sim, the former chairman of the CPP passed away in 2015, he took over the party helm and became its chief.

After he took up the position, Hun Sen has been strengthening his faction by promoting his close allies and relatives to the party’s central and permanent committees. During the CPP’s General Assembly last December, for instance, the premier promoted two of his sons — General Hun Manet, the Commander of the Royal Cambodian Armed Forces, and MP Hun Many — to the party’s permanent committee, along with several other senior military officials.

While it is true that Hun Sen has yet to fully bring the the CPP under his control — there are other political factions that are loyal to other CPP elites, including Interior Minister Sar Kheng and National Assembly President Heng Samring — his firm control over the military and civil sectors means his opponents within the CPP have very little chance of challenging his dominance.

As such, the EU’s use of a threat to indirectly pressure Hun Sen into compliance might not be practical after all.

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Posted by: | Posted on: April 10, 2019

Chinese tourists win, poor Cambodians lose with US$4 billion Hong Kong-backed casino in Phnom Penh

Chinese tourists win, poor Cambodians lose with US$4 billion Hong Kong-backed casino in Phnom Penh

  • Tenants turfed out of Phnom Penh’s iconic low-income housing block, the White Building, were told it would be redeveloped to house Cambodians
  • Instead, NagaCorp is planning a development the size of Marina Bay Sands in Singapore that it hopes will attract high-rolling Chinese gamblers
Clothes hang out to dry at the residential complex known as the White Building in Phnom Penh before its demolition. Photo: AFP

Andrew Nachemson  Kong Meta  , Published: 9:00am, 10 Apr, 2019

Op-Ed: This Week in Asia of SCM

Phnom Penh’s White Building, designed by Cambodian architect Vann Volyvann, before its destruction. File photo
Documentary of White Building before Demolition

Phnom Penh’s White Building, designed by Cambodian architect Vann Volyvann, before its destruction. File photoAn iconic Phnom Penh housing site known as the White Building is being turned into a multibillion-dollar casino development, as Cambodia woos Chinese tourists by catering to their penchant for gambling.Hong Kong-listed developer NagaCorp, controlled by Malaysian billionaire Chen Lip Keong, estimates it will spend US$3.8-US$4 billion on the Naga3 project, its third casino in the country, which will have hotels, condominium facilities and a 12-floor entertainment centre and outlet mall.NagaCorp’s deputy chairman Philip Lee told local media on Tuesday: “Naga3 is the single biggest private sector investment so far in the country and may be for years to come. It is about the same size as Marina Bay Sands in Singapore … which is the most expensive entertainment complex in the world.”

A Cambodian worker (R) looks through a window during demolition work at the White Building residential complex in Phnom Penh. Photo: AFP

A Cambodian worker (R) looks through a window during demolition work at the White Building residential complex in Phnom Penh. Photo: AFPS

But the news has surprised and upset former residents of the low-income housing block and conservation activists, who had been under the impression the site was being redeveloped to house Cambodians.

Is Cambodia’s Koh Kong project for Chinese tourists – or China’s military?

Among them is Nhek Chantha, 67, who was turfed out of the White Building in 2017 and moved in with her children as she could not afford a new place.

“[The government] told such a big lie to us. It’s a very central place, they should renovate it and allow us to keep living there so it becomes a cultural site for people to see, but they think only about profit,” she said.

A Cambodian man prays to Buddhist monks at the residential complex known as the White Building before its demolition in Phnom Penh. Photo: AFP

A Cambodian man prays to Buddhist monks at the residential complex known as the White Building before its demolition in Phnom Penh. Photo: AFPS

A Japanese company, Arakawa Co Ltd, was supposed to rebuild the landmark site and turn it into a 21-storey condominium block. Five of the floors were to be reserved for low-income housing that would go to the previous residents of the White Building and 12 floors would be used for private flats. Land Management Minister Chea Sophara in 2016 had asked Cambodians to “be patient while waiting for the new White Building to be finished in four years”.

‘They only go to Chinese shops’: why Cambodia’s influx of mainland tourists is causing tensions

Arakawa did not respond to requests for comment on Monday and Land Ministry spokesman Seng Lot said he did not know how or why the land was transferred to NagaCorp.

Constructed in 1963 as part of the Bassac River Front cultural complex and overseen by legendary architect Vann Molyvann, the White Building was, along with the rest of the city, evacuated in 1975 by the ultra-Maoist Khmer Rouge occupation which targeted artists and intellectuals.

A Cambodian boy walks past spirit houses at the residential complex known as the White Building in Phnom Penh before its demolition. Photo: AFP

A Cambodian boy walks past spirit houses at the residential complex known as the White Building in Phnom Penh before its demolition. Photo: AFPS

After the regime fell in 1979, a mixed crowd including artists and musicians moved in, turning it into a colourful and close-knit, if sometimes seedy, community until the government demolished it two years ago, saying it was not structurally sound.

Continue to read more: SCM

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