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Faces of the Crisis: Hang Sophany, 27, Phnom Penh, Cambodia

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Hang Sophany, the owner of a fledgling tourist office in Phnom Penh, has directly felt the impact of crisis. She’s lost many of her customers, and
her income is half what she made at the end of 2008.
  

Before the crisis:
Sophany opened her own tourist office shop in Phnom Penh in June 2008. Before that she worked for three years in another travel agency. Initially the new business was doing very well.

How has life changed since then?
Since the start of the crisis, the business has become difficult and she has lost a lot of money. Other than selling airline and bus tickets, more than half of her business came from sourcing work visas for Chinese management staff running garment factories in Cambodia. But many garment factories have since closed, and many of Sophany’s customers have left the country. She has retained some customers—about 30 percent—and they still use her business to prolong their visas and buy new visas.

Sophany’s income has dropped by 50 percent since the end of 2008.

How is she getting by?
The drop in business has forced Sophany to diversify. She has added several internet terminals to her shop and picked up some extra business with some Western embassies, applying for visas for Cambodian citizens. Her business now depends on selling tourist visas and air tickets to foreign nationals who want to come to gamble in the casino in Phnom Penh. She also sells bus tickets. Both of those businesses are holding steady at the moment because her clients are loyal.

What does she hope for the future?
Sophany is worried about the future and hasn’t figured out what she will do. She may need to close her office and work from home to save rental costs. She is neither optimistic nor pessimistic—as long as she can keep on going, she will.

April 2009

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»
The economy is expected to contract by 1 percent in 2009
»Net exports will slow with overall global trade volumes
»Agriculture has continued to sustain growth and should provide a well-needed safety net

More details:
Country Sections: Smaller Economies (163kb pdf)
 
Full EAP Update
April 2009
Cambodia country site
  
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-1.0%

GDP growth projected
All Cambodia Data and Statistics
  
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Ivailo Izvorski, Economist and author of the report, and Vikram Nehru, WB East Asia Pacific chief economist, answered your questions on a live chat. Read the transcript.


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 Stephane Guimbert



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