中韓、カンボジア投資白熱 経済成長年１０％

　年率１０％近い経済成長でアジアの“ライジング・スター”とも称されるカンボジアへの投資熱が高まりを見せている。産業の多角化や外資誘致で成長を目指 す同国に対し中韓企業が投資を拡大させている一方で、タイやマレーシアなどに多くの拠点を持つ日本勢の進出は出遅れており、現地政府も日本企業の投資活性 化に期待を寄せている。

　カンボジアは東南アジア諸国連合（ＡＳＥＡＮ）の中でもトップクラスの経済成長を続けている。２００５年に経済成長率１３・４％を達成し０７年 見込みは９・５％、０８年の見通しも８％と１０％近い。情勢が安定したカンボジアは、中国やタイといったアジアの生産拠点で人件費や賃貸料が上昇しコスト 競争力が失われていく中で、低廉な労働力を確保できる新たな投資先として注目を集めている。

　対カンボジアの０６年国別投資額（認可ベース）は１位が韓国の約１０億ドルで、２位の中国が約７億ドル。１９９４～０７年の投資累計では１位がマレーシアの約２１億９７００万ドル、続く中国が約１７億６１００万ドルとなっている。

　一方、日本の０６年投資額は約２００万ドルの１４位で、韓国の５００分の１にすぎない。９４年からの累計額も約１億３５００万ドルと２位中国の １３分の１だ。政府関係者は「日本企業の関心は最近高まっていて投資も増えているが、慎重なのかスピードが他国に比べ遅い」と指摘する。

　カンボジアは７０年代のポル・ポト政権時代から内戦が続き、外資誘致など産業復興に注力する状況ではなかったが、９８年の総選挙を機に政情が安 定化。政府は、世界でも有数の遺跡のアンコールワットを呼び水に観光産業を育成したほか、繊維や鉱物、水力発電、資源エネルギーなど産業の多角化により経 済成長を促進している。

　さらに、外資誘致では１１カ所の経済特区を設置し通関手続きの簡素化や法人税免除などの優遇政策を展開し、外資の資金力と技術力を取り入れて産 業のてこ入れを図っている。最低賃金は月４５ドルと安く、政府関係者は「労働者は勤勉で、タイやマレーシアなど周辺国に拠点を持つ企業が進出しやすい」と カンボジア投資の魅力を強調。中国や韓国は政府支援を強化し民間企業の進出が加速している。

　ただ、インドシナ地域を横断する運輸インフラの東西回廊によって流通網が整備されつつあるものの、大手商社からは「インフラ整備がまだまだ必要」とカンボジア政府や日本の政府開発援助（ＯＤＡ）による法制度も含めた事業環境の整備を求める声も強い。（坂本一之）

Cambodia expects 2008 growth of 7.3 percent - PM

Reuters

PHNOM PENH, Feb 28 - Cambodia's economy is expected to expand by 7.3 percent this year, a slower rate than in 2007 due to the pressure of high world oil prices, Prime Minister Hun Sen said on Thursday.

However, a blossoming private sector, overseas aid, sustained foreign investment and continued political stability should ensure healthy growth in the key garment, tourism, construction and agriculture sectors, he said.

"Cambodia needs to sustain this growth to catch up with and keep pace with neighbouring countries," Hun Sen said at a economic conference for international investors.

Cambodia's economy struggled during the 1990s to shake off the legacy of decades of civil war and upheaval, including the atrocities of the Khmer Rouge "Killing Fields".

However, it has taken off in the last few years, and expanded at an estimated 9.6 percent last year, making it one of the fastest-growing economies in the world.

Its gross domestic product is $8.4 billion, giving a per- capita annual income of more than $500.

The garment sector, valued at $3.8 billion last year, represents the lion's share of exports, a government report showed.

The Southeast Asian nation also received 1.7 million tourists last year and expects a 25 percent increase in 2008.

The report said reserves had increased by $600 million last year to $1.7 billion, but said the country ran a trade deficit of $1.5 billion, mainly due to the increase in value of petroleum imports.

Food inflation hits Cambodia's poor, threatens hunger

by Seth Meixner Mon Feb 25, 10:49 PM ET

CHRANG CHAMRES, Cambodia (AFP) - On the long, gently sloping bank of Cambodia's Tonle river, Doem Lao chops half a dozen large fish heads in the early morning for the one meal that her family will eat that day.

It is the 45-year-old farmer's fourth unseasonably cold dawn in this quiet Muslim neighbourhood on the outskirts of Phnom Penh, where her extended family has set up camp with others from their village in the southern province of Takeo.

Like tens of thousands of rural Cambodians, they have joined the annual migration to the river to buy enough fish to make a year's worth of prahoc, a pungent fermented paste that is the only source of protein for many in the country's impoverished rural regions.

But the rice brought they from home has nearly run out and the fish have yet to appear in the large nets strung across the river in front of their camp.

The crude bamboo and metal mesh processing stalls on the riverbank are silent -- and February is the last month of the fishing season.

A sudden drop-off in the numbers of prahoc fish has seen their price more than triple this year, up to as high as 50 US cents a kilogramme from around 12 cents, putting this most basic of Cambodian commodities out of reach for many.

While not normally a benchmark by which to measure food security, prahoc prices have highlighted the spiralling costs of staple goods that are threatening Cambodia's poorest with hunger.

"We eat prahoc every day. Last year we made so much that we could sell some or trade it for rice," Doem Lao said, sitting in a tight circle with other village women and a few young children, while their men stood further up the river bank smoking cigarettes in anticipation of another long day spent waiting.

"This year I'm not at all hopeful. Some of us have left already. We're not going to have enough prahoc. We're not even going to have enough rice," she said.

Across Asia the cost of food is rising, for a variety of reasons, from higher demand and spiking global oil prices to environmental factors like global warming which disrupt the normal agricultural cycles.

But while other regional governments have responded by cutting import tariffs or establishing national food stockpiles, Cambodia appears reluctant to step in and halt the continuing upward climb of food costs.

For poor Cambodians, this means that in addition to losing their traditional staples like prahoc, they are not able to supplement their already meagre diets with other foods, particularly meat.

"Everything now is so expensive," said another village woman, Bhum Sap, rattling off the current prices of chicken, pork and beef, which can cost as much as five dollars a kilogramme, a fortune for Cambodia's estimated 4.6 million people struggling to live on less than one dollar a day.

Cambodia, in some ways, has become a victim of its own economic success. The country has recorded economic growth averaging 11 percent over the past three years, spurred on by a galloping tourism sector and strong garment and building industries.

Growing interest by foreign investors and a real estate boom that has helped create more than a few overnight millionaires have resulted in an unprecedented explosion of wealth.

But the sudden influx of cash into the fragile economy has not come without its pitfalls.

Over the past year inflation has spiked at 10.8 percent, compared with 2.8 percent at the end of 2006, driving up the cost of food and other staple goods and pushing the most vulnerable deeper into poverty.

"About 8.5 percentage points of December's inflation rate of 10.8 percent was accounted for by food price inflation," said the International Monetary Fund's Cambodia representative John Nelms.

For as many as 2.6 million people living in extreme poverty, the situation has been worsening over the last several years, which have been marked by poor harvests brought on by natural disasters such as flood or drought.

"Too many Cambodians still suffer from hunger and malnutrition for some or most of the time," the World Food Programme (WFP) said on its website.

The unrelenting rise in food costs only adds more depth to their misery.

"WFP is very concerned about the general increase of the cost of the staples, in Cambodia as well as elsewhere," the agency's country director for Cambodia, Thomas Keusters, told AFP.

Food inflation has even affected aid efforts at a crucial time, as aid agencies anticipate the need for more handouts in rural areas facing a leaner than normal year ahead.

In January last year, the WFP paid 237 dollars per metric tonne of rice, a cost that has now risen to 367 dollars a tonne, Keusters said.

"For every dollar received from the international and local donor community, we buy 55 percent less rice. With the general increase in the cost of food, the need for food assistance will not decrease," he said.

"On the contrary. As Cambodia faces new challenges such as climate change, changes in food availability, high energy prices, globalization and many more, we all need to strategise better," he said.

DEVELOPMENT-CAMBODIA: Urban-Rural Divide Set To Widen

By Marwaan Macan-Markar

BANGKOK, Feb 18 (IPS) - Phnom Penh’s skyline is set for a dramatic change, now that South Korean companies have confirmed plans to build two skyscrapers in the Cambodian capital. The 42-storey Gold Tower is scheduled to be completed by 2011, while a 53-storey structure will be ready the following year.

Such a transformation will invariably serve as visual symbols of the direction this nation has taken on the road to development. It will add to the impressive numbers Cambodia’s has recorded over the past two years, with the economy growing by 11 percent in 2006 and nine percent in 2007.

The likelihood of more tall towers wrapped in glass following these two appears possible. The South-east Asian country ‘’received more than 1,500 requests for construction projects worth 1.5 billion US dollars in the first nine months of 2007,’’ the ‘Phnom Penh Post’ newspaper reported recently, quoting Urban Planning and Construction Minister Im Chhum.

Yet such a picture only confirms why Cambodia is increasingly becoming a country with deep economic divisions, with the economic boom concentrated in only three urban centres -- Phnom Penh, Siem Reap and Sihanoukville -- at the expense of its rural areas, where 80 percent of the country’s 14 million people live.

A new study by a U.N. agency lays bare the extent of food insecurity, high malnutrition and the ‘’food poor’’ in one of this region’s poorest countries still struggling to put behind it the nightmare of a brutal war and oppression that lasted over two decades. ‘’The mix of food products available in Cambodia should normally be adequate for a balanced diet, but productive capacity or purchasing power of many households is limited,’’ states the World Food Programme’s (WFP) ‘Food Security Atlas’.

Currently, close to 35 percent of Cambodians, or some 4.6 million people, live below the poverty line of one U.S. dollar a day. Of that, 90 percent come from rural areas, states findings by the WFP. ‘’In 2005, over 630,000, or 37 percent of Cambodian children aged under five years were suffering chronic protein-energy malnutrition ( or stunting),’’ adds the WFP, quoting figures from the Cambodian Demographic and Health Survey Report.

Cambodian’s classified as ‘’food deprived’’ amount to 21 percent of the population, close to three million people, states the WFP, drawing on the 2007 Food Insecurity Assessment, conducted by, among others, the U.N. Food and Agriculture Organisation. The ‘’food poor’’ are those who eat less than the minimum diet to supply basic energy requirements.

The appearance of Siem Reap among the 10 provinces described as ‘’hot spots’’ due to ‘’high malnutrition rates’’ by the WFP in its mid-February study illustrates the two faces of Cambodia’s development story. For years, the city of Siem Reap has seen rapid growth, with many plush hotels coming up, to cater to the planeloads of tourists flying into the city. Its main draw: the majestic Angkor Wat and the surrounding temples built during the 14th century and before.

Yet the tourist dollars that have been pouring in have not trickled beyond the city’s borders. ‘’Siem Reap is one of the poorest provinces in the country,’’ Thomas Keusters, head of WFP’s Cambodia office, told IPS by phone from Phnom Penh. ‘’Tourism is only focused in the city. But only 15 miles away from the city centre, people are very poor.’’

The Cambodians left out from the city’s growth are those with little education in the province who cannot find jobs in the hotels, adds Keusters. ‘’The people who have found employment are those who can read and write and can help the tourism sector.’’

Cambodia’s weak education system beyond the main urban centres was highlighted Thursday in a report on education trends in the region released by the United Nations Education, Scientific and Cultural Organisation (UNESCO). It has one of the ‘’highest repetition rates’’ of school children in the first grade, at 24 percent, revealed the ‘2008 Education for All Global Monitoring Report’.

In addition, Cambodia and Laos ‘’have the lowest early childhood care and education coverage in South-east Asia, with only nine percent and eight percent of children aged three to five enrolled in pre-primary school, respectively,’’ added the UNESCO study.

Even the World Bank admits that despite Cambodia’s success on some fronts -- such as reducing the number of people living in poverty from 47 percent of the population in 1994 to 35 percent a decade later -- inequality is a problem. During the past 10 years, the consumption power of the country’s richest 20 percent grew by 45 percent, as against an only eight percent rise in the consumption power of the poorest 20 percent, the Bank noted in its 2007 study of equity in Cambodia.

This economic divide exposes what ‘’growth rates do not show, about who is benefiting and who are the losers,’’ says Shalmali Guttal, a senior researcher at Focus on the Global South, a Bangkok-based think tank. ‘’The ordinary people in the rural and urban areas have been losing for years. There is a systemic problem in the distribution of resources.’’

The prospect of immediate change for the economically marginalised appears remote, she explained in an interview, because of the poor being deprived or denied access to land in the rural areas or even to fish in the country’s largest lake. ‘’Fishing concessions have been sold to private companies and the local fishing communities have a little catch, depriving them of income and their main source of protein.’’

Amnesty International (AI) is the latest human rights group to raise the alarm about the harsh measures used by the administration of Prime Minister Hun Sen to support a trend of forced evictions in the urban and rural areas to acquire land for commercial ventures and ‘’development’’ projects. It warned that 150,000 Cambodians are in danger of losing their homes and lands to projects that cater to the whims of the country’s wealthiest.

Vireak and Sopheap are just two people from a village of subsistence farmers near the coastal town of Sihanoukville who were affected last April, said the London-based rights lobby in a mid-February report. Most of the village ‘’was burned to the ground by law enforcement and military officers, forcibly evicting more than 100 families,’’ states AI.

‘’The Cambodian government has adopted policies, supported by international donors, aimed at developing and improving the lives of the poor. But such policies are in stark contrast to the realities experienced by Vireak, Sopheap and other victims of forced evictions, who sink deeper into poverty through the actions of the authorities,’’ added AI.

(END/2008)

カンボジア：都市と地方の格差が広がる

カンボジアは、プノンペンの開発などで近年、大きな経済成長を果たしている。一方で、国連の世界食糧計画（WFP）の最近の調査によると人口の３５％（４６０万人）が１日１ドル以下で生活する貧困層である現実もあり、特に都市と地方の経済格差が進んでいるという。

【バンコクIPS＝マルワーン・マカン・マルカール、２月１８日】

　プノンペンの空が大きく変容する。韓国の企業がカンボジアの首都に超高層ビル２棟を建設する計画を正式に発表した。４２階建てのゴールドタワーは２０１１年に、５３階建てのもう一棟はその翌年に完成する予定である。

　２００６年に１１％、２００７年には９％の経済成長率を示したカンボジアに、新たな発展のシンボルが加わることになる。「プノンペンポスト」紙による と、超高層ビルの建設計画が目白押しだ。だがカンボジアの開発はプノンペン、シェムリアップ、シアヌークビルの３都市に集中し、１４００万人の人口の ８０％が住む農村部は取り残されている。

　国連の世界食糧計画（WFP）の最近の調査によると、カンボジアはいまだに食糧不足、栄養失調で苦しんでいる。人口の３５％（４６０万人）が１日１ドル以下で生活する貧困層であり、そのうちの９０％が農村部に住んでいる。

　たとえばシェムリアップは数年で次々と豪華なホテルができて、１４世紀以前に造られたアンコールワットなどの名所に観光客が飛行機で訪れて急成長している。だが観光収入が都市の境界を越えることはない。２５キロ離れれば教育もなく職も得られない人々が貧困に喘いでいる。

　ユネスコの世界の教育に関する報告書「グローバルモニタリングレポート２００８」によると、カンボジアでは小学校の留年率が最も高く、２４％だった。またカンボジアとラオスは幼児の保育および教育の普及率が東南アジアで最も低く、就学前に教育施設に通う３～５歳児はそれぞれわずかに９％、８％だった。

　世界銀行もカンボジアの貧困削減の努力は認めながら、貧富の差が問題であるとしている。富裕層の購買力は４５％高まったが貧困層は１％でしかない。アムネスティ・インターナショナルはフンセン首相の開発プロジェクトの強引な進め方に警鐘を鳴らしている。開発のために居住地から強制的に立ち退かされ、さらにひどい貧困に陥る人々も多い。

　開発の進むカンボジアの貧困問題について報告する。（原文へ）

中国、カンボジア：経済特区建設で協力

2月23日にカンボジア最大となる経済特区、シアヌーク経済特区定礎式がカンボジア、シアヌーク市で開催された。この経済特区は中国とカンボジア両国が出資し、建設されるとのこと。

　現在、南国企業、興達泡塑、天繍紡織、利佳包装、申錫建築、漢神電気の中国企業6社が特区入りを果たした。

　シアヌーク経済特区は中国江蘇太湖カンボジア国際経済協力区投資有限会社と、カンボジア国際投資グループ開発有限会社の提携によって建設される。

　今後8年間で合計30億ドル（約214億元）を投資する見通し。

World Bank boss farewells Cambodia with warning on future growth

Indian born Nisha Agrawal arrived in Cambodia as country manager for the World Bank in April 2003 to find herself eventually thrust into the bank’s biggest ever confrontation with the government of Cambodia over corruption. The problems culminated in June 2006 in the dramatic ten month suspension of funds for three World Bank projects. The ban was lifted in February 2007, but the bank cancelled over $2.5 million in project funding and the government subsequently was asked to repay the World Bank $2.9 million. The bank has since hired Crown Agents, a British company, to handle procurement in their Cambodia projects. At the end of February, Agrawal will leave the World Bank after 18 years to go back to India and take the helm of a new NGO, Oxfam India. In an interview with the Post’s Susan Postlewaite on February 7, the director discussed the highs and lows of her five-year tenure at the Bank, which, with a budget of $50 million, is one of Cambodia’s most influential development partners.

What do you count as the accomplishments of your five years as country manager for Cambodia?

Four things. Firstly we have done a lot of research that has generated very useful knowledge about what is happening in the Cambodian economy. Before I came we really didn’t know whether the growth that Cambodia has seen in the last decade was having an impact on poverty or not. The Poverty Report was a very important piece of work by the World Bank to show that growth was actually benefiting poor people and that their lives were getting better off as a result.

Secondly, a very big thing is helping Cambodia agree on the priorities for reform and supporting the reforms that are happening.

Third, the way the development community works together has changed very dramatically and the World Bank has played a key role in bringing all the donors together around a common agenda. When I came here everybody had different priorities. We helped put in place a very elaborate architecture – 18 technical groups which meet and talk together with the government, with NGOs, with the development partners. We have quarterly meetings at senior levels of the government to discuss major policy issues.

Finally, the World Bank has built a very strong and large country office. When I came we were about five people and now we are 45 and most of these are Cambodian staff, and very high capacity staff.

What do you leave for your successor? What needs to be done?

During my five years, the economy has almost doubled in size, and government revenues have almost doubled in size. Foreign investment has taken off and is now larger than foreign aid for the first time. The challenge ahead is to ensure there’s also high quality development going on at the same time as a high growth rate. These would be the things my successor would focus on. Cambodia after ten years has been having an impact on poverty but only about one percent of the population is being lifted out of poverty per year. Vietnam is able to raise four percent of its population out of poverty each year. The difference is the emphasis that Vietnam has on agriculture.

The second challenge is how to make sure the growth is not coming at the cost of just cannibalizing your natural resources. One big choice the government faces is in the mining sector. How the government decides to do mining in the future will have a big impact on how sustainable it will be. These debates should happen very openly and transparently. Do Cambodians really want to be mining everywhere including in the national parks, or do they value their national parks?

A second choice is on how to manage the oil and gas revenues. That is a huge challenge. Suppose there are these large orders of magnitude that people are talking about. How they are managed would really make or break this country. If the government doesn’t use those revenues well, Cambodia could go down a very bad path where the revenues not only kill off other industry and employment, but corruption levels rise to such a level that everything else could fall apart.

The World Bank has come under heavy criticism – from The Wall Street Journal and others – for allowing corruption in its programs in Cambodia. Are you satisfied that you’ve corrected the problems?

We are making a huge effort to make sure that funds from our own projects don’t leak. Our projects are implemented by the government and supervised by us. The biggest problem was in the way procurement was done and who got the contracts. Because there were systematic problems in procurement, we are taking a two-track approach to deal with this issue: in the short-run, all procurement will be done by an independent procurement agent, while in the medium to long term, we will work with government to build and strengthen their systems.

Ultimately it should not be just about whether the World Bank money is leaking or not, but it should be about the country’s own spending. Our funds in this country are $50 million a year. What we would like to do is work with the government to improve their procurement and financial management system in the long run to make sure that the whole $1.2-billion budget is spent wisely.

In retrospect was your decision to suspend disbursement on three World Bank projects in 2006 and then to reinstate the funding ten months later the most effective way to handle the corruption problem?

It was the best way. It was tough on our relationship with the government because it’s a very drastic measure to take. But once we have evidence that our funds are leaking, we really have no other choice but to halt disbursement while we put in place measures to prevent those kinds of leakages in the future. We wanted to send a very strong signal in this country that we are not going to tolerate corruption in our projects and the suspension did that. Many people in Cambodia felt reassured that the Bank was taking this issue very seriously

Boom time hits Cambodia, but not all are smiling

By Ed Cropley


PHNOM PENH (Reuters) - After decades of war and upheaval, including the Khmer Rouge "Killing Fields," Cambodia is enjoying an unprecedented boom, its economy expanding at around 10 percent annually for the last five years. But the breakneck growth, fuelled mainly by garment manufacturing, tourism and real estate development, is turning its once-sleepy capital into a building site and forcing many ordinary Khmers from their homes.
"I will move only when they pay me enough to find another place to live," said 49-year-old Ngay Tun, a fisherwoman living on Boeung Kak, a 120 hectare (300 acre) city-centre lake about to be drained and filled in to make way for a housing project.
"I worry about it every day, that they are going to come suddenly in the night to kick us out," she said, paddling a small wooden boat through floating banks of morning glory.
While the outlook for the garment industry and tourism appears solid -- especially while the U.S. dollar, Cambodia's de facto currency, continues to fall -- the same cannot be said for real estate, where prices are spiraling to dizzy heights.
Figures from Bonna Realty, a leading estate agent, suggest the price of prime Phnom Penh land doubled last year to $3,000/sq m -- compared to less than $500 in 2000.
By contrast, land in Bangkok's downtown Silom district is $5,000/sq m, while Ho Chi Minh City, the hub of neighboring Vietnam's red-hot economy, prices can be as high as $15,000.
"There is a debate about whether there's already a bubble," World Bank country economist Stephane Guimbert said.
"On the one hand, clearly the market was very depressed until a couple of years ago because there was little security and stability. But on the other hand, it's surprising that prices are increasing so fast," he said. In one of the first signs of overheating, annual price inflation has spiked to more than 9 percent in the last year, almost double its level in the preceding five years, and anecdotal evidence points to big upward pressure on wages.

MISSING BILLIONS COME HOME?
At the top of the market, prices are being driven by huge foreign-funded ventures such as "Gold Tower 42," a $300 million South Korean apartment block which, at 42 storeys, will be three times higher than Phnom Penh's current tallest building.
Even though it will not be ready until 2012, Cambodia's super-rich are already snapping up some of the 360 units on offer at $2,150 a sq m, only a shade cheaper than Ho Chi Minh City.
But such prestige projects are the tip of the iceberg, and foreign funding accounts for only a fraction of the boom, analysts say.
The domestic financial services industry is growing fast -- private sector lending by Cambodia's 20-odd banks grew 60 percent last year -- but remains too small to be funding projects to the tune of hundreds of millions of dollars.
Instead, analysts say, much of the funding is Cambodian cash stuffed into mattresses, locked up in gold, or squirreled away in anonymous offshore bank accounts for years.
"There are a lot of people in this town who are fantastically wealthy," said Trent Eddy, director of Phnom Penh-based Emerging Markets Consulting. "The banks are not doing mortgage lending for the sort of stuff that's driving up prices."
The most popular theory on the streets of Phnom Penh is that a global banking clean-up after the September 11, 2001 attacks smoked out billions of dirty Cambodian dollars sitting quietly in bank accounts in Singapore, which encouraged its repatriation.
With few other investment options, and a steadily improving regulatory and legal framework -- not to mention political stability under ex-Khmer Rouge strongman Hun Sen -- real estate is the obvious choice for the prodigal loot, so the theory goes.

HYPE MARKET
Even though the economy remains one of Asia's smallest, with a GDP of around $6.5 billion, the hype is such that international portfolio investors have been looking into setting up domestic real estate funds, mainly in the hotel sector.
U.S. property services firm CB Richard Ellis is also hoping to get in on the action with the opening of a Phnom Penh office in the next few months.
The prospect of revenues from off-shore oil and gas by 2010 reaffirms the view of outsiders that the economy is only heading in one direction, and that rapid urbanization and demand for better housing from Cambodia's 13 million people must follow.
The clearest example is another South Korean venture, a $2 billion "new town" called Camko City taking shape on the northern outskirts of Phnom Penh.
"They are targeting primarily the Cambodians. There's very little accommodation in Phnom Penh, but demand is growing," said Lee Sangkwang, commercial attache at the South Korean embassy. "It's kind of pioneering."
The changes, however, are not coming without costs.
The city's infrastructure, already in a dilapidated state after nearly three decades of civil war, is creaking under the weight of the expansion, with roads clogged by traffic, leaking sewers, and frequent floods and power blackouts.
Critics also point to a lack of transparency and vision in urban planning -- despite assurances from Mayor Kep Chuktema that he "listens to the views of all stakeholders."
Social tensions are also emerging, with many city centre communities living in fear of eviction and pop songs lamenting the growing obsession with property speculation and the desire to make a quick buck.
"Now, the war in Cambodia is over land," said tuk-tuk driver Ros Sopheak.
(Editing by Michael Battye and Megan Goldin)