Without garment industry, Cambodian workers will face tough time ahead. Some
Chinese factory owners have disappeared into thin air. Those who have
factory job to become " Neary Lancer" will also face new problems.
Virak
=======
Cambodia Braces for Global Finance Woes
By Ros Sothea, VOA Khmer
Original report from Phnom Penh
17 September 2008
_Khmer audio aired 17 September 2008 (1.83 MB) - Download (MP3) _
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_Khmer audio aired 17 September 2008 (1.83 MB) - Listen (MP3) _
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An investor looks at the stock price monitor at a private security company
in Shanghai Wednesday, as Chinese shares fell to a 22-month low. Analysts
worry that weakened Asian markets could hurt Cambodia.Economic turbulence in
the
US and Asian markets this week will indirectly affect Cambodia's industries,
even as inflation and other factors have weakened the economy so far this
year, economic and finance experts said Wednesday.
The bankruptcy announcement by US financial firm Lehman Brothers and the
sale of brokerage firm Merrill Lynch to Bank of America this week upset US and
Asian markets and led to worries of a global economic crisis.
"The longer term concern is that the world economy will be impacted and that
will have follow-on effects for Cambodia, but how big those effects will be
remains to be seen," said Stephen Higgins, chief executive officer of ANZ
Royal Bank.
Cambodian and international economists said Wednesday falling markets could
harm Cambodia's leading sectors: garments and tourism.
The US is the top importer of Cambodian garments, and the sector, which is
Cambodia's economic engine, already has seen weakened growth in 2008, analysts
said. Tourism, the second-highest earner for Cambodia, could be hurt as
potential visitors stay at home to weather the economic storm.
Cambodia could also be affected by a drop in foreign investment from its
Asian neighbors.
"One thing that we would need to keep a close watch on is sort of providing
finance to Cambodia in terms of foreign direct investment," said Eric
Sidgwick, an economic officer at the Asian Development Bank in Phnom Penh.
"You
know, China, Korea, Thailand and other countries. How will they be affected by
the turmoil in the US? They may in turn have less resources to bring to
Cambodia."
Meanwhile, the Asian Development Bank said in an outlook report released
Tuesday that Cambodia's economic growth would drop to an estimated 6.5
percent,
down from 9.6 percent in 2007.
The decline in economic growth was a product of a garment sector suffering
from the decline of US consumption, as well as inflation and the drop in value
of the US dollar, the ADB said.
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