Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia's first agency to value business assets opens

Cambodia's first agency to value business assets opens

Cambodia's first agency to value business assets opens

pg-13-story-1.jpg
pg-13-story-1.jpg

Establishment of valuation association a key step in opening the Kingdom's stock market, but some business leaders say it will not be capable of doing the job

VANDY RATTANA

New condominiums and businesses for sale in Phnom Penh.

FAMILY SECRET

The requirement that companies declare their assets is widely believed to be one of the biggest obstacles to establishing Cambodia’s stock market, sources say. Most enterprises that could list are family-owned and guard the value of their businesses.

CAMBODIA'S first agency to assess the value of corporate assets opened last week, in what company sources are describing as a key step in establishing a Cambodian stock exchange.

But business figures are sceptical the new body will be able to establish sufficient nationwide transparency in time to meet the stock market's 2009 deadline for opening.

Sung Bonna, chairman of the new National Valuation Association of Cambodia (NVAC), which is supported by the Ministry of Economy and Finance, said the body will play an important role in Cambodia's future growth.

"We will try to push this nascent association to attract foreign investors and to assist in the process of setting up a stock exchange next year," he said, adding that the stock market will not go ahead in the absence of credible asset evaluations.

"If we have professional assessors and good management, the stock market process will be smoother," he said.

In Channy, CEO of Acleda Bank, said the new agency could provide independent assessments for firms wishing to register on the Kingdom's stock market.

"We need an assessor that has enough independence to determine the accurate value of a company's assets. This concept generally exists in other countries," he said.

'2012 more realistic'

But Nguon Meng Tech, director general of the Cambodian Chamber of Commerce, said he does not think the association will be successful.

"I do not believe that they are capable enough for this work for the time being," he said.

He added that the 2009 deadline for a Cambodian bourse was little more than a pipe dream.

"Cambodia does  not have enough human resources and experts," he said, adding that 2012 was a more realistic target.

In Channy said Acleda currently assesses its own assets and is unlikely to use NVAC until it establishes more branches across the country. "We do not reject the use of the service, but we trust our own assessment," he said.

Likewise, Kong Triv, CEO of KT Pacific Group, said that he has not considered using the NVAC to evaluate his company's assets. "We will wait and see how independent [it] is and how it builds confidence, and then we will consider it," he said.

Sung Bonna admitted the NVAC was untested, but he said he was optimistic it will valuate properties accurately. "The association will seek training from foreign experts to make sure that the evaluation is internationally acceptable," he said.

Cambodian Economic Association President Chan Sophal said Cambodia must have a property evaluation association that is fully independent, "otherwise companies could lose confidence".

MOST VIEWED

  • WHO: Covid in Cambodia goes into new phase

    The World Health Organisation (WHO) in Cambodia said that Cambodia has reached a new phase of the pandemic with “decreasing case numbers, high vaccination coverage and a more transmissible circulating variant threatening a hidden surge”. In a press release on September 6, the WHO said that

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • International air visitor arrivals dip 93%

    The number of foreign tourists entering Cambodia through the Kingdom’s three international airports witnessed a sharp 92.5 per cent year-on-year decline in the first seven months of this year, according to the Ministry of Tourism. The airports handled 51,729 international tourists in the January-July period versus

  • Purging Sihanoukville’s past with a new masterplan

    Amid illicit activities, haphazard development and abandoned projects, the coastal city of Sihanouk province needs a reset to move forward. A new masterplan might be the answer to shake off its seemingly mucky image to become the Shenzhen of the south Gun toting, shootouts, police

  • School reopening ‘offers model for other sectors’

    World Health Organisation (WHO) representative to Cambodia Li Ailan said school reopening process should be used as a role model for reopening other sectors currently mothballed by the Covid-19 pandemic. Li strongly supports the government’s decision to reopen schools, saying it is a decision

  • Covid jab drive for 6-11 age group to begin Sept 17

    Prime Minister Hun Sen has permitted Covid-19 vaccinations for over 1.8 million children aged 6-11 across the country from September 17 in order for them to return to school after a long hiatus. Hun Sen also hinted that vaccinations for the 3-6 age group will follow in