Cambodia's GDP grows nearly 10 percent in 2005
Cambodia had good economic performance with a growth in GDP (gross domestic product) of nearly 10 percent for 2005, higher than the predicted 7 percent growth, local media reported on Friday.
Preliminary estimates from the government indicate that Cambodia's GDP grew at a strong 9.8 percent in 2005, up from a recent 7 percent estimate and dire predications of 2 percent growth made in 2004.
While the final 2005 GDP growth rate will be released in about one month, World Bank representatives, government officials and the Economic Institute of Cambodia (EIC) said Thursday that the high figure is most likely correct, making 2005 the best year for the Cambodian economy since 1999, The Cambodia Daily reported.
The apparent growth was driven by the country's growing agricultural, garment and tourism sectors.
The country's tourism rose by 35 percent, and its garment sector by 10.6 percent to 2.2 billion U.S. dollars in 2005, which was forecast to be a "dangerous year" for the Cambodian garment industry due to the end of the global quotas.
The second surprise factor was a boom in agricultural production with a 17 percent growth last year up from the negative two percent growth in 2004, thanks to good rainfalls and improvements in plantation techniques, according to the newspaper.
But World Bank country economist Robert Taliercio said that the agricultural growth, mostly stemmed from fortunate weather rather than increased irrigation.
World Bank also praised the government's better tax collection, increased foreign investment and loans in the private sector.
The rate of tax collection stood at 11.7 percent of the GDP in 2005, compared to 11.3 percent in 2004. Foreign investment grew to 216 million U.S. dollars in 2005 from 121 million in 2004, while private loans were up by 21.3 percent last year.
(source: Xinhua)
UN Recommends Adoption of IPSASs ( International Public Sector Accounting Standards)
After a full review of a range of options including adoption of IFRSs and national standards for not for profit entities, the UN Budget and Finance Network and High Level Committee on Management has endorsed the recommendation of a Task Force that United Nations System organizations adopt International Public Sector Accounting Standards (IPSASs). The recommendation will be referred to the UN General Assembly for approval in June 2006.
For further information, please contact Mr Key KAK, MKA Cambodia
KINGDOM OF CAMBODIA
Nation Religion King
MINISTRY OF ECONOMY
AND FINANCE
No 002 MEF
Phnom Penh, 06 January 2006
The Ministry of Economy and Finance has the honor to inform the owners and heads of private, private-state and state owned enterprises, and economic entities operating in the Kingdom of Cambodia that pursuant to Royal Kram No. NS/RKM/0702/011 promulgating the law on corporate account, their audits, and accountancy profession on 08 July 2002, the Ministry of Economy and Finance had issued Prakas No.798 & 799 MEF on 16 October 2003 to implement the Cambodian Accounting Standard (CAS) and Cambodian Standards on Auditing (CSA) ever since 01 January 2005.
All enterprises must comply with the Prakas by maintaining account records and making financial reporting according to the principles of CASs which are based on International Accounting Standard (IAS). By keeping account records properly and consistently, it will bring significant benefit to the entrepreneurs and owners of enterprises as accounting records are the measurement of effectiveness, competency, and quality of performance, and reflection of achievements of the entities.
According to clear studies and investigations by the World Bank, ADB, IMF, and the UN in many developing countries in the world, it shows that the implementation of the principles of accounting standards helps enterprises’ owners in strengthening the controlling of their businesses better because having the records and evidences or financial reporting accumulated by various accounts in hand could help tracking their operations effectively and efficiently.
On the basis of the integrity and reliability of these accounting records, companies can utilize these solid information-based documents to borrow capitals from the banks and capital markets when companies are short of financial resources.
In the meantime, the government is preparing a law to establish the stock market in the near future. Therefore, companies with fair and reliable accounting records can request the securities authority to list their companies on the stock exchange where it is the best source to mobilize the fund for the capital investment.
The National Accounting Council, under the tutelage of the Ministry of Economy and Finance, is anticipating to receiving from owners of enterprises and entrepreneurs all propositions or any doubts related to the application of CAS and CSA for all enterprises in the Kingdom of Cambodia.
KEAT Chhon
Senior Minister
Ministry of Economy and Finance
(source: Cambodian Daily January 16, 2006)
CAMBODIAN BUDGET FOR 2006
The national Assembly on Friday (Dec. 23, 2005) approved a budget of $ 926 million for 2006, 20 percent higher than $ 772 million in expenditures approved for 2005.
Passed by an Assembly vote of 84 to 12, the budget forecasts $ 683 million to be raised in tax revenue. To fill the deficit, the Assembly approved financing of $ 243 million in the form of grants and loans.
(source: Cambodia Daily)