Monday, April 9, 2012

How Many Cambodians in the U. S. ?

With the issue of repatriated Cambodians from the U. S. once again in one of the recent Phnom Penh Post headlines, I wondered how many Cambodian Americans are there really in the U. S. Sometimes one is led to believe that there are vast numbers. So I once again checked those numbers.

The 2010 U. S. census counted 244,000 Cambodians in the U. S., of which about 15,000 live in Long Beach and 13,000 in Lowell. One Cambodian civic leader said in a Voice of America interview that there are 300,000 Cambodians in the U. S. but only 100,000 show up in the census. This is, of course, belied by the census. The census figure matches another survey done in 2005, which counted roughly 241,000 Cambodians (http://portfoliolab.org/portal/DesktopDefault.aspx?pId=2&TabId=67&HtmlId=256&MenuId=59 ). The 300,000 probably applies to the Cambodian population outside Cambodia.

The latter survey also points out an interesting factor - the median age is 25.3. Now that’s pretty young. Unfortunately, the median age doesn’t give you the proportion of age groups. Nevertheless, it’s lower than the number for the entire U. S. population. The younger people grew up in the U. S. and identify as Americans. All the more surprising is that 44.2% speak English less than well. This figure speaks directly to the average level of education.

So altogether, I believe Cambodian-Americans, not the least that relatively paltry number in Long Beach, are vastly overrated in their significance on homeland Cambodian life. I now also seem to notice a more critical view in native Cambodians of life in the U. S. as a more realistic view sets in.

Friday, April 6, 2012

Importing a Vehicle

I got a response on one of my posts dealing with cars in Cambodia. This poster mentioned he is planning to import cars from the U. S. to Cambodia. I can only say, ‘Good luck.’

The way I see it the field is not exactly undercrowded. There is practically a used-car dealership on every corner. Now if somebody wanted to import a car on his own because they just don’t want to drive another Toyota or Lexus, here is a look at what awaits them.

First you need to get an import company to do all the customs clearances, import license, etc. If you do it on your own a ‘penalty’ fee of 20% on the import duty becomes due. Seeing that most import companies charge only 2% of the cargo value or a minimum of $150, I found this very reasonable. Plus who can negotiate with the customs officers? Certainly, not an in these matters ignorant foreigner. One may drive a good bargain at the market but with these people you are lost.

First you need to find out the assessed value of the car you are planning to import. The customs code does not do this by make, mileage and market value but uses an ‘arbitrary’ value as the basis for their computation of any duty and tax due on the vehicle. This may sound pretty simplistic but in essence is the only practical way of dealing with the high potential of rigged invoices. The customs code uses the engine displacement and the year. Here is the schedule:


The ad valorum duty and tax can be found in this schedule. The 35% is the import duty, the 45% is the excise tax (I call it the luxury tax), and the 10% is the added value tax. These rates are compounded so that the total will be 115.325%.


But, of course, this is not all. You will have to pay for shipping the car wherever it comes from. If it is only one car this is extremely expensive. There are no roll-on/roll-off services available to Cambodia. So most cars are shipped in containers. This can run anywhere from $4500 to $5,500 for a single car from the West Coast of the U. S. It’s not a whole lot cheaper from Europe but there are plenty of RO/RO services to Singapore. Let’s just use $1500 as an average. Your importer may hook up with another shipment so that 4 cars can be shipped in one 40’-container.

So here is the tally for a 2006 Audi A6 2.4ltr., which is officially listed at $12,800 (though you will be lucky to get one for this kind of money. They are around $15,000 to $20,000 depending on mileage).

Shipping $ 1,500
Misc. shipping fees (bunker adjustment, THC, etc. $ 500
Import duty/tax $14.760
Customs clearance $ 350
Customs permit $ 250
Camcontrol $ 15
Use of import license of the import company $ 256

For a total of $ 17,631
If you just use the customs value of the car $ 12,800

You end up paying $ 30,431

Now you understand where those high used-car prices come from. 115.325 % is steep; but governments of poor countries that have to import most of their goods always levy high import duties as their primary revenue. Originally Cambodia used a flat rate of $2500 per car; but when they came in in bigger numbers they quickly raised it based on market values – Sam Rainsy was the initiator of that back when. The customs people at that time sat there poring over French and U. S. classified ads in car magazines and newspapers.

Finally they arrived at more varied tax rates, very high ones that goes without saying, but the World Bank mandated a set schedule not to exceed 35%, which will eventually come down to 10% in 4 or 5 steps until 2020, if I am informed correctly. But the government being no slouch quickly instituted the ‘luxury’ tax of 45%, which will most likely stay forever.

On the whole the car values are pretty decent in my view. Last year I bought a 2006 Prius for $17,500. I was amazed it was so cheap. In the U. S. that car still went for around $14,000 but in the duty schedule it is listed at a mere $7,720 because the gasoline engine only has 1.5 ltr., never mind that the combined HP output is something like 150.

Now after all, perhaps you don’t really need that Audi, BMW, or Mercedes you fancy and can do with a nice Toyota Camry, although a 2007 model will still set you back something like $27,000. But seeing the benefit of cheap service and repairs, it certainly makes economic sense.

Sunday, March 4, 2012

Cambodia's Sweet Spot

For those who don't read the New York Times, here is an article they published about Kep this weekend.

http://travel.nytimes.com/2012/03/04/travel/cambodia-in-and-around-kep-open-but-undeveloped.html


The author visited Kep last year so the information about Bokor is a bit outdated. You can read more of an update in my recent post.

http://about-cambodia.blogspot.com/2012/02/good-food-and-big-hassle.html

Although she mentioned the tranquility and the nice boutique hotels and at the same time warning that the crowds will eventually follow, she chose hotels in a price range that are exactly the precursor to mass tourism. $300 a night is definitely for wealthier people. The average individual tourist would be turned off by such hotel rates. Thankfully, there are sites like Trip Advisor that give a wider variety to choose from. But the tourism market tends to follow  backpackers and, ironically, rich people. All inclusive package tour operators get cut-rate hotel rates for the promise of high occupancies.

One thing is clear though. If Kep would be turned into a mass tourism destination like Koh Samui (which it can't for lack of beaches) or Chiangmai in Thailand, this would most certainly spoil and ultimately destroy the rather unique character of this serene beach town. Let's hope it will stay the way it is now for a long time to come.

Saturday, March 3, 2012

What’s in a Title?

My wife reconnected with a long-time friend after about almost 10 years. They simply had lost sight of each other mainly because my wife went to live in the U. S. with me. Now that we settled here permanently as opposed to our previous in-and-out status they just chanced to meet at one of the many weddings taking place all over the country (see previous post). As it happens the friend’s husband had been promoted to 2-star general in the intervening years, and that entails the title ‘His Excellency’, and for his wife ‘Look Chumteauv’.

Excellency in Khmer is translated as Aek O Tom (pronounced Ayodom), which roughly translates into ‘person of high standing’. This title sort of automatically attaches itself to people who have reached a certain level in the government. To my information it starts with Under Secretary of State. Directors of ministerial departments to their chagrin are not beneficiaries of that important honorific.

However, as soon as an officer reaches the rank of one-star general or brigadier general he/she automatically becomes an ‘Excellency’. One has to remember that this title originally derives from a Latin word mean outstanding; the verb ‘excel’ says it succinctly. Now informed people know that there are more than 1,000 generals in the Cambodian Armed Forces. The actual size of the army is for some reason a somewhat mysterious figure but it is estimated to be around 120,000. Given the size of Cambodia and that there is no real threat to Cambodia’s security, this is a somewhat inordinate high number. Theoretically, that puts a general in charge of 1200 men and women. The actual number is higher since there are many generals in staff functions that do not command any soldiers (koan te hean). In comparison to Western armies this would be about the size of a large battalion, which is normally commanded by a colonel.

If relevant reports are to believed many a star was bought; the benefits are clear: better business connections. (So there goes the meaning ‘excellent’.) Military personnel seemingly have a hand in everything. One of the largest brokers of land concessions, for instance, is a major general. He almost exclusively deals in concessions for rubber plantations Vietnamese companies have acquired over the past years. Way back in the late eighties and early nineties, generals virtually controlled their own fiefdoms, which explained the brisk timber business they were conducting at that time. Obviously, this was also the foundation of much of their wealth.

However, many a general is just that – a commanding officer who worked his way up the ranks. Some of them were sent to Hanoi to attend a military academy there, others got promoted out of gratitude for loyal services rendered to the powers that be. The picture is gradually changing as we can see with the PM’s son, Hun Manet, who graduated from West Point and Sandhurst. Nevertheless, are generals ‘Excellencies’? Are they really on the same level as ministers, state secretaries, and ambassadors?

The pay for a regular general is low, the benefits are modest – free housing, driver, car. Sometimes the military units grow their own rice and raise some chickens or even cattle. The Look Chumteauv – the wives – are ferried around in their large SUVs with their own drivers. Of course, since they lead such a hazardous life they also need a body guard. If you look behind the façade though, you will often find a plain woman from the countryside, barely able to read and write. But they are all ‘Excellencies’. An added benefit is that when a general dies he gets awarded an additional star posthumously. Nice, isn’t it. At least the widow get a higher pension, which is around $250 a month for a 2-star general.

Besides the many military personnel you have a multitude of state secretaries that don’t even work in a ministry. These are the advisers to all those important government officials, usually ministers. Some of those officials have close to 200 advisers. Of course, these are all ‘Excellencies’ too; and their wives ‘chumteauvs’. I know one of those advisers to one of the three top officials in Cambodia. He is an adviser in legal matters - without being an attorney, mind you. Otherwise, he is just a very successful businessman who, as it happens, made his money quite legally. He is a nice and friendly guy too, but he needed that title, the award certificate of which is prominently and proudly displayed in his house.

Then, of course, you have the state secretaries who got the job because they switched allegiance or were otherwise deemed helpful for a worthy cause. During one of my recent business dealings I met a couple of those as well – husband and wife. They have no real authority but to the unsuspecting businessperson they act as if they sit at the levers of power and promise you the world – for a fee, as you might surmise. Rest assured, I didn’t fall for it. On the other hand, I also know another state secretary who fulfills his job to a fault; he is often seen on TV handing out food to rural people in distress or the poorer minorities, which in itself might not mean a lot, but I know he is downright honest.

Granted, the title ‘Excellency’ is definitely a stroke to their ego and sometimes valuable as a door-opener for business opportunities. But, by and large, you could just do away with it as with increasing numbers of theses titles they tend to become rather worthless.

A case in point is the proliferation of PhDs for all kinds of so-called ‘very important people’. Read this article the Cambodia Daily published last year. http://yebc.blogspot.com/2011/08/phd-latest-status-symbol-for-cambodias.html (The publisher of that newspaper is a crusty old dickhead who hasn’t realized that the age of the internet has arrived, so one needs to use other websites to find these articles.)

The psychology behind this is clear. Cambodia has no aristocracy to speak of, so in order to stand out you need something that differentiates you from the rest – a PhD is the title of choice as it signifies you might have money and power but you are a person of brains too, especially if it is so easily available. ( Not only in Cambodia, this goes for practically the rest of the world too.) A medical doctor has something to show for his title – his work as a doctor, so you know this man/woman really did go through the ordeal of obtaining an academic degree. But a PhD in history from some obscure institute that no one has ever heard of? Or even an honorary degree from similar institutions? Don’t these people see how laughable this is? As the article says, you got your big car, big house, now you need something to round off your personality.

A collector of PhDs is the PM. With a title of Samdech Akkak Moha Sena Padey Techo does he really need that? I have always wondered what this really means in translation. Here it is (as taken from the dictionary):
Samdech - nobleman, prince, lord (high honorific title that can be given to people of non-royal birth
                 usually in recognition of great service to the nation); his highness, his majesty
Akkah (Akkeak) - first, foremost, highest, illustrious, excellent, best; top, summit'
Moha (Maha) - Indicative word used only in compound words to mean 'grand,' 'big,' 'awesome,'
                 'superior,' 'numerous' etc.
Sena – servant
Padey – husband (?)
Decho (Deja) means power, authority, etc.

If you are not connected to the government you can always purchase one of the highest civilian titles in the land ‘Oknha’. Although this originally was a title bestowed by the king to high civil servants, this has now also become a manifestation of wealth. It is said that a cool $100,000 will get that title. Roads, schools, and other public institutions may be named after you. Never mind how you got that money. People who were in prison for fraud and later became prominent, successful businessmen got it. Of course, simple people bow deeply when an Oknha approaches them. I guess that’s the least you can expect for $100,000.

I remember a hit entitled: ‘You’re so vain’ I guess it all goes under this heading.

For an overview of royal titles visit: http://www.royalark.net/Cambodia/titles.htm

Wednesday, February 22, 2012

'Tis the Wedding Season

Actually it has been going on since the dry season started around mid-October. It seems like it started slowly but the farther we progress into the dry season the more weddings take place with a culmination shortly before the Khmer New Year in April. After that it sort of peters out again. But of course, it all depends on what the fortuneteller deems a propitious time and day. The reason it takes place early in the morning is that the bride and groom are supposed to receive the spiritual blessings (suesday somnaang) before sunrise. The strange thing is, though, that all fortunetellers seem to agree on that time of day. Possibly they don’t even address that issue any more as it has become such a fixture in Khmer tradition.

One can say it starts with a big bang. Just the other day, one of my neighbors married off one of his children. When we saw the tent being erected in our street we anticipated with dismay the next morning. Sure enough, at exactly 6 o’clock they started the generator which they had so considerately put right in front of our house and the tape started blaring wedding songs. But who am I to complain? I am the foreigner here – different folks, different strokes.

Roang Kaa - Wedding Tent for the morning ceremonies

How refreshing - the generator a few meters from the tent - together with music, wedding chants - cacophony at its best.

Normally, the religious ceremonies last until midday or 2 o’clock. The wedding reception for all the friends and people deemed worthy of being invited is held later in the day, usually starting at 6 o’clock, at a restaurant or venues that specialize in this, like the Mondial center on Mao Tse Tung Blvd. or the new center at Koh Pich. Depending on the status of the parents this can be a most lavish affair ranging from 10 tables to well over 100 tables. A table usually seats 8 or 10. The parents’ purse also determines how many dishes will be served. Anything less than three is absolutly impossible and three is already considered stingy. The upper class will serve up to 10 different dishes, including small crabs, beef with mango salad, duck, etc.

A big difference to Western weddings are the gifts. Of course, the bride and groom receive a more or less large present from their parents, and some smaller ones from the closest relatives. Normal guests, however, hand over money at the reception in an envelope that is included in the original invitation. No other gifts are given. The amount depends on the social standing of both the parents and the guests. Naturally, as can be expected, the higher the status the more money. Cambodia’s neighoring countries have the same customs in this respect, but the amounts are somewhat more moderate in Vietnam and in Thailand. The Nouveaux Riches in Cambodia know no bounds here either. A wealthy couple attending can easily hand over $500 or even $1,000. This generosity will be returned, however, when a child of that couple gets married. And there is no way around it. I attended a wedding in Vietnam once. The envelope there was neutral, that is, it had no name on it - not so in Cambodia. The preprinted envelope is clearly marked with your name, so the parents can clearly identify you for a miser if you give less than is usual and customary. The benefit of that system, of course, is that the parents might even make a profit as the guests practically pay for their own meals. And this is the exact reason why so man people can hold these wedding parties in such style, many a time well above their social or professional standing. Saving face and showing status is paramount in Cambodian, as in all Asian, societies.

Just imagine a Westerner holding a wedding reception for 1000 guests. Consequently, you don’t see too many of those in the West. If the Khmer parents were to pay for everything out of their own pockets they would easily have to shell out up to $25,000, and sometimes more, for morning ceremony and wedding reception, band, and other entertainers. A nice tent in Phnom Penh including the wedding singers, the musical and electronic equipment can cost around $2,000 - $3,000; more modest ones around $1,000; people in rural areas are luckier – it’s about $300 there. So, altogether, if they had to pay with their own money we would probably see a lot fewer weddings along the streets and roads.

It’s a hassle for the guests, especially the ladies, too. They need a new dress, or they rent one. Make-up and hair-style will take hours; everything for just 2 -3 hours as most receptions end at 8 or 9 o’clock. My wife was invited to the wedding of the son of an ‘Excellency’ just this week. The ladies (look chumteauv) try to outdo each other on these occasions. My normally rather Westernized wife fell back into her traditional Khmer attitude, and felt she needed to look particularly special, not she doesn’t look special every day. This is also the occasion where the ‘successful’ businesswomen, say wives of rich government officials and high-ranking military people, show off their jewelry. While Westerners like to enjoy travel first and head off to a honeymoon in far and exotic locations that can also cost a fortune, Cambodian women appreciate jewelry over everything else. (Sometimes it also serves as consolation for her husband’s infidelities.) Some people receive so many invitations they have to attend 2 or more in one day. Another government official whom I happen to know said he has wedding invitations for virtually every day of the week. Poor guy.

My wife and stepdaughter ready to compete.

When will she get maried?


Thankfully, we have received only two invitations so far. I bowed out of the Ayadom’s (Excellency’s) invitation but attended the simpler one in the town where I have my ‘weekend’ house. This is a small town and I am the only foreigner there. I needed to show my face so as not to offend these good people, and good they all are. They are all very friendly and helpful.

Visitors