Motorcycle sales gain traction in Cambodia after slow year
Nov 29, 2009PHNOM PENH, Nov. 30 (Xinhua) -- Motorcycle dealers in the capital Phnom Penh say sales have finally started to pick up following this year's downturn prompted by the global economic crisis, as buyers spend money generated in the provinces on upgrading to new models that have recently entered the market for 2010, local media reported on Monday.
Kim Chhay, one of the many dealers who operate on Phnom Penh's Sihanouk Boulevard, was quoted by the Phnom Penh Post as saying that sales had risen between 10 and 20 percent since October "due to demand for new models" of brands including Honda, which he said had recently launched its 2010 range.
Having seen sales plummet from around 100 units a month to between 30 to 40 during the first 10 months of 2009, he said sales have climbed. "Now we're selling around 60 motorbikes per month."
A reduction in retail prices had also spurred demand, he said. Last year's Honda Dreams sold for 1,700 U.S. dollars to 1,800 U.S. dollars per unit, compared with about 1,500 U.S. dollars for the new series.
Taing Ang, another dealer in the capital, said that people from the provinces who had completed land transactions were propping up demand, adding that Honda in particular had seen an upswing in sales.
"The Suzuki series hasn't seen an improvement yet," he said.
Vouch Lay, who deals Suzukis, said she had not seen sales pick up, blaming the rising demand for Honda's newly released models. "I don't see any recovery yet," she said.
She added that Suzuki was due to begin a new promotion shortly, which she hoped would "spur the number of sales to improve on the current situation".
Demand for motorcycles in Cambodia was expected to fall to 100,000 units this year from the previous 140,000 units, according to Matoba Micifumi, managing director of Yamaha Motors Cambodia Co, who previously said Yamaha motorcycle sales had dropped 25 percent in the first quarter.
read more “Motorcycle sales gain traction in Cambodia after slow year”
Kim Chhay, one of the many dealers who operate on Phnom Penh's Sihanouk Boulevard, was quoted by the Phnom Penh Post as saying that sales had risen between 10 and 20 percent since October "due to demand for new models" of brands including Honda, which he said had recently launched its 2010 range.
Having seen sales plummet from around 100 units a month to between 30 to 40 during the first 10 months of 2009, he said sales have climbed. "Now we're selling around 60 motorbikes per month."
A reduction in retail prices had also spurred demand, he said. Last year's Honda Dreams sold for 1,700 U.S. dollars to 1,800 U.S. dollars per unit, compared with about 1,500 U.S. dollars for the new series.
Taing Ang, another dealer in the capital, said that people from the provinces who had completed land transactions were propping up demand, adding that Honda in particular had seen an upswing in sales.
"The Suzuki series hasn't seen an improvement yet," he said.
Vouch Lay, who deals Suzukis, said she had not seen sales pick up, blaming the rising demand for Honda's newly released models. "I don't see any recovery yet," she said.
She added that Suzuki was due to begin a new promotion shortly, which she hoped would "spur the number of sales to improve on the current situation".
Demand for motorcycles in Cambodia was expected to fall to 100,000 units this year from the previous 140,000 units, according to Matoba Micifumi, managing director of Yamaha Motors Cambodia Co, who previously said Yamaha motorcycle sales had dropped 25 percent in the first quarter.
Economic Thrust Eastwards
Hun Xen embraces Nguyen Tan Dung, meanwhile....
Villagers from the beseiged Kraya commune in Kampong Thom province say they have been forced to hide in cassava fields for fear of arrest and now face increasing health risks from a lack of medicine and the threat of malaria from sleeping outdoors. Authorities blockaded the commune following a violent protest last month over their impending eviction, during which equipment belonging to the Vietnamese-owned rubber company Tin Bean was set on fire (Photo by: Heng Chivoan, The Phnom Penh Post)Op-Ed by Ung Bun Ang
Almost three decades after sending its troop into Cambodia, which has since paid dividends so handsomely, Vietnam makes another strategic move that will have far-reaching implications for Cambodia. This year sees a thrust of Vietnamese investments that reaches a total of US$1.5 billion in Cambodian vital sectors: land, natural resources, and telecommunications.
Vietnam has secured the right to exploit in Block 15 – a 6,900 square km site off the northeastern shore of Tonle Sap – oil reserves for the next 30 years, and gas reserves for 35 years. It holds 100 percent interest in the venture giving Cambodia only an option to obtain later a share of up to a mere 5 percent. Meanwhile, to sweeten the deal, Vietnam presents to Cambodia a “social benefit fund” of US$2 million. There is no mention of how they will address inevitable environmental damages.
Back on land, Vietnam is to develop 100,000 hectares of rubber plantations in five Cambodian provinces to be completed in 2015. These involve land concessions that last almost 100 years – long enough for any land located close to the border to inconspicuously become part of Vietnam. The development has already led to a violent clash with local villagers; more than one thousand families live on the land that is now part of an 8,000 hectare land concession belonging to Vietnamese plantation firm Tin Bien.
Vietnam is shrewd in managing its own forests; it protects them and develops its economy by exporting its deforestation to Cambodia. Cambodia has become a major source of supplies of illegally logged wood to help fill a substantial hole left in Vietnam’s local lumber supply after the government implemented reforestation policies in the 90’s.
Vietnam sets itself up to control a significant chunk of the Cambodian telecommunication network. Vietnamese military-run telecommunication corporation Viettel is now the largest telecommunication service provider in Cambodia – six months after launching its Metfone mobile service network. Metfone currently accounts for 60 percent of all ADSL internet services and 50 percent of the fixed phone market; it has two million mobile subscribers. Vietnam claims its satellite system Vinasat-1, with its coverage over the Southeast Asia, can meet all the Cambodian needs ranging from television to internet. The sweetener is the Viettel’s donation of US$500,000 to help poor Cambodian children in need of medical treatments; it promises to provide internet services to 300 Cambodian schools this year. Vietnam agrees to help build a radio station in Siem Reap the Cambodian government claims it needs to give the local Vietnamese community a better access to information. With these benefits, Cambodia puts its national security that links to its communication network at the mercy of Vietnam.
The economic thrust eastwards will, first and foremost, benefit Vietnam. Cambodia will also gain; but the extent and nature of long term costs will be unknown for some time. Meanwhile, the thrust will divide Cambodian opinions, just like the Vietnamese military intervention and occupation of Cambodia. The combined impact of the two major Vietnamese strategies could only weaken Cambodia.
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