Cambodia delays stock market debut to next July

By SOPHENG CHEANG
Associated Press Writer

(AP:PHNOM PENH, Cambodia) Cambodia has delayed the opening of its proposed stock market for a second time, pushing the date back to July next year.

A statement Wednesday from the Finance Ministry said the delay was due to technical issues and the global economic crisis.

"The postponement of the stock market is to adapt to the evolving situation of the global economic and financial situation, which shows some positive signs of recovery but is still fragile," the statement said.

Last December, officials said Cambodia's stock market would open by the end of this year after initially targeting it to begin operating in 2009. After receiving the approval from Prime Minister Hun Sen, the Cambodia stock exchange is expected to kick off in July 2011, the statement said.

The Cambodian economy is small and reliant on textiles, which account for nearly 80 percent of exports, and hundreds of millions of dollars in international aid. Foreign investment has been deterred by the country's reputation for endemic corruption.

Neighboring Vietnam started its stock market in July 2000. Nearby Laos is also planning a stock exchange.

Hong Sok Hour, director general of the Cambodia Securities Exchange, said the delay was necessary because Cambodia needs everything to be in place before the opening.

"We want our bourse to be a good one when we open. That is why we need the infrastructure and human resources to be ready at the same time," Hong Sok Hour said.

In December, Cambodia awarded a contract to a South Korean firm, World City Co. Ltd., to build the $6 million, four-story, 71,900-sq. foot (6,682-sq. meter) stock market building in Phnom Penh's planned financial district on the outskirts of the capital.

Hun Sen announced plans in 2007 to launch a stock market, saying Cambodia needs to find new ways to attract international capital beyond international aid and bank loans.

Soon after, lawmakers approved a securities law on issuance and trading of nongovernment securities to pave the way for the market.