Mekong Monitor: Cambodian stock market sees first bank listing

Photo credit: B2B-Cambodia

 

TRADE, ECONOMY, AND INVESTMENT

 

CAMBODIA

Cambodian stock market sees first bank listing
(25 May 2020) The Cambodia Securities Exchange (CSX), which opened in 2011, saw its first bank listing when Acleda Bank listed on the stock market on 25 May 2020. Cambodia’s largest commercial bank became the sixth firm to join CSX, behind a garment factory, two state-owned ports, and a special economic zone. Acleda has been operating since 1993 and owns assets worth US$7.5 billion. The initial fanfare for Cambodia’s trading future has dimmed, with the country’s lack of financial literacy and a dearth of eligible companies being major obstacles. The Business Research Institute for Cambodia questioned the timing of the initial public offering in the middle of the COVID-19 pandemic but Acleda’s chairman and managing director In Channy downplayed the risks of debuting on the CSX during the pandemic, saying the bank would not have listed if there had been concerns.
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MYANMAR

Myanmar’s Mandalay region to boost national rice reserve to 5,000 tonnes
(25 May 2020) Myanmar’s Mandalay region intends to increase its national rice reserve to 5,000 tonnes for emergencies, in case the COVID-19 pandemic drags on. The region currently stores over 1,800 tonnes of rice. The Ministry of Commerce had previously announced on 22 April that it would buy and stockpile 50,000 tonnes of rice and 12,000 tonnes of palm oil as reserve food for emergencies. The ministry plans to purchase the items at a reasonable price. According to Oakkar Kyaw, Secretary of Mandalay Region Chamber of Commerce and Industry (MRCCI), the 5,000 tonnes of rice will be stored in Kyaukse Township, Mandalay Region where the current 1,800 tonnes of rice is being stored.
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THAILAND

Thailand extends state of emergency until end of June 2020
(26 May 2020) The Thai government has agreed with the Centre for COVID-19 Situation Administration’s (CCSA) proposal that the nation-wide state of emergency is extended for another month, to the end of June. According to government spokesperson Narumon Pinyosinwat, the government views the extension as necessary because it helps in the containment of COVID-19. She added that the state of emergency also supplements the Communicable Disease Act, which is not enough to deal effectively with the COVID-19 pandemic. Prime Minister Prayut Chan-o-cha has insisted the extension is not politically motivated but government critics claim the special law is unnecessary now that the situation has improved significantly with single-digit daily COVID-19 infections.
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VIETNAM

Vietnam seeking a US$679 million tax cut for small businesses
(25 May 2020) Vietnam is planning a US$679 million (15.8 trillion dong) cut in corporate income tax for small-sized enterprises in 2020 to help them overcome the economic impact of the COVID-19 pandemic, its Ministry of Finance announced on 25 May. For companies with annual revenue of less than US$2.1 million (50 billion dong), the ministry is planning a 30% cut in corporate income tax, pending government approval. Small-sized enterprises account for 93% of the 760,000 companies present in Vietnam, according to the ministry. Apart from small-sized enterprises, the ministry is also seeking approval from lawmakers for a US$1.6 billion (37.5 trillion dong) tax exemption for agricultural land use during the period 2021-2025.
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LAOS

US announces US$3.2 million of CDC support for Laos’ COVID-19 response
(26 May 2020) The US announced on 22 May its commitment of an additional US$3.2 million in funding support from the US Centers for Disease Control and Prevention (USCDC) for the prevention, preparedness, and response activities in response to COVID-19 in Laos. The resources will be used for surveillance, laboratory capacity building, infection prevention and control, community mitigation, emergency response, and vaccine preparedness. The latest assistance is part of the US’s long-term health collaboration with Laos. As part of that effort, USCDC has since 2006 supported Laos’ Ministry of Health to prepare for and respond to past outbreaks such as avian and pandemic influenza, and currently, the COVID-19 pandemic.
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