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Thailand Gears up for FTA Discussions with EU in January

Thailand aims to finalize free trade agreement with EU within two years.
Thailand is gearing up to host the second round of discussions on a free trade agreement (FTA) with the European Union (EU) at the end of January. The goal is to reach an agreement within the next two years. The Department of Trade Negotiations Director-General, Chotima Iemsawasdikul, emphasized that the talks will prioritize liberalizing trade, investment, and services. The plan is to hold three meetings annually, with the aim of completing negotiations by 2025.

Recent developments in Thai-EU FTA negotiations
The first round of discussions took place in Brussels, Belgium, in September. The negotiations involved 19 expert-level subcommittees covering various trade aspects, including digital trade, intellectual property, and sustainable development. Commerce Minister Phumtham Wechayachai discussed the FTA with members of the European Parliament in Bangkok, expressing hope for their support in swiftly concluding and enforcing the Thai-EU FTA. Discussions also included green trade, environmental sustainability, and climate change issues.

Currently, the EU has signed FTA agreements with Vietnam and Singapore. And in the meantime, EU in talks with Indonesia. As for the EU-Thailand FTA, it is in the process of resuming negotiations. Like the EU FTA with Malaysia and the Philippines.

EU’s significant role in Thailand’s global trade
The EU is a crucial economic partner for Thailand, being the country’s fourth-largest trading partner. In the first ten months of the year, two-way trade between Thailand and the EU reached US$35 billion, accounting for 7.3% of Thailand’s total global trade. Thailand’s exports to the EU, including computers and rubber products, were valued at $18.2 billion, with imports from the EU, such as machinery and medical products, totaling $16.7 billion. The EU’s approval is vital for the FTA, and recent interactions underscore the EU’s keen interest in Thailand as an economic partner.

Cambodia's Trade talks with Saudi Arabia set to commence

Cambodia and Saudi Arabia are set to hold discussions on the draft of a memorandum of understanding (MoU) on the promotion of trade relations between the two countries. 

The step comes on the heels of an imminent agreement with the United Arab Emirates (UAE) as the country aims to advance work in the Middle East in line with the government’s directive to enhance trade, tourism and investment.

Penn Sovicheat, spokesperson for the Ministry of Commerce, told The Post on January 17 that the authority held an internal meeting led by Tekreth Kamrang, a secretary of state at the ministry, to review the draft MoU on January 16. 

The move is intended to bolster trade and investment between the two countries and other Middle East nations.

“The internal discussion is to pave the way for negotiations to open a new market with Saudi Arabia. It will serve as a gateway to promote our products to Middle Eastern countries, while we are also [working with] the UAE on a Comprehensive Economic Partnership Agreement [CAM-UAE CEPA],” he said. 

“Reaching an agreement with these countries will not only expand our product range there but will also provide a gateway to African nations.

“We do believe that in the near future, there will be a significant increase in trade and investment from Arab countries. This will also enhance our ability to boost agricultural product exports to these and other surrounding nations,” he added.

To read full article, please click here.



Author: May Kunmakara

Source: The Phnom Penh Post

French firm to invest in wind energy sector - Cambodia


French firm The Blue Circle, a pioneer in wind power generation, is keen on investing in Cambodia, citing the country’s high potential in the sector.

This came as The Blue Circle team headed by President and Chief Executive Officer Olivier Duguet met Prime Minister Hun Manet on Monday in Paris.

During the meeting, Olivier Duguet briefed the Premier that his company has been exploring opportunities within the wind energy sector in many Asian countries including Cambodia.

The company has held talks with local partners to conduct a feasibility study in Cambodia and “found locations rich in air and speed suitable for generating power,” he said.

The CEO of The Blue Circle said the company has identified a number of locations that are suited for wind power investment – one located on top of Bokor Mountain in Kampot province and the other is in Mondulkiri province.

“The company will be able to generate a lot of electricity, in the first phase. It can initially produce 100 megawatts, which can be expanded in the future,” he said.

The company would like to ask for support and good cooperation with relevant partners in Cambodia and the support of the Royal Government on this wind power project, he emphasised.

“Cambodia will have access to more renewable energy sources in future and be able to export electricity abroad,” Olivier Duguet added.

For full article, please read here


Reporter: Chea Vanyuth 

Source: Khmer Times 

Thailand's joint business group sees 2.8-3.3 pct growth for 2024

Thailand's economy is expected to expand between 2.8 percent and 3.3 percent this year, a joint business group said on Wednesday, maintaining its previous projection.

The growth will be bolstered by government stimulus measures, such as a tax rebate scheme and the ongoing recovery in the tourism sector, which is anticipated to welcome up to 34 million foreign tourists in 2024, according to the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).

The global economy is facing increasing uncertainty due to geopolitical conflicts. These uncertainties are compounding the global slowdown, and make it necessary to monitor the impact on Thai exports, a key driver of the kingdom's economic growth, the JSCCIB said in a statement.

The JSCCIB noted that the government should accelerate the disbursement of the budget, implement additional stimulus measures, and coordinate with state enterprises and local governments to expedite the use of existing investment budgets to keep the economy moving forward.

For 2023, the Southeast Asian country's economy is expected to have expanded between 2.5 percent and 3.0 percent, as projected earlier, the JSCCIB said.

 

Source : Xinhua

Cambodia’s agritech segment draws huge investors’ interest

The Kingdom’s agritech segment is drawing huge interest from the part of investors, according to EcoBusiness, a digital platform dedicated to sustainable development across the Asia-Pacific region.

The trend is attributed to the growing agritech startup ecosystem, deployment of the latest agricultural technologies as well as the role of agriculture in the country’s economic development. The number of active agritech startups has doubled between 2018 and 2022.

Among the investments in the sector which hogged the limelight include Azaylla, an agriculture supply chain platform, receiving an undisclosed amount of pre-series A funding from Singapore-based investor Insitor Partners.

Azaylla, works with smallholder farmers and co-operatives across the country to source fresh produce and the firm is expected to use the new funding to grow its sustainable and socially responsible agri-business network, leveraging technology to supply supermarkets, hotels, restaurants, and caterers with Cambodian agricultural products.

The country has been pioneering the latest technologies across the agriculture and water management areas including drip irrigation, sprinkler systems and water sensors.

Farmers have been using precision agriculture systems encompassing GPS, remote sensing and drones to gather data on soil conditions, crop health and pest infestation. According to the platform, the widespread use of smartphones has led to farmers accessing agricultural information through various mobile applications.

For full article, please read here



Author: Sreekanth Ravindran 

Source: Khmer Times

Hong Kong Ready to Cooperate with Laos on Yuan Trading

Hong Kong has identified three areas for cooperation with Laos and Vietnam during the Secretary for Financial Services and the Treasury’s visit to the two ASEAN members on 11-14 December.


According to his official blog, Christopher Hui stated that Hong Kong is ready to cooperate with Laos and Vietnam on yuan trading, talent exchange, and green finance, as the city leverages on its key strengths as Asia’s third-largest stock exchange based on market capitalization.


Hong Kong is the largest offshore yuan trading market outside of China, handling approximately 75 percent of global offshore yuan transactions, totaling around 1.1 trillion yuan (USD 115 billion). 


In this regard, Hui urged the governments of Laos and Vietnam to “consider the benefit of issuing yuan bonds to enjoy lower-interest rate costs [and to consider] issuing offshore yuan [sovereign] bonds in Hong Kong.” 


In October of this year, Beijing allowed Laos to operate a yuan clearing center, making the country the fifth largest market in Southeast Asia.


Hong Kong also plans to negotiate a comprehensive double taxation avoidance agreement (DTAA) with Laos, bringing tax clarity to cross-border investments between the two countries. The DTAA is a pact signed by two countries that encourages trade and investment by circumventing international double taxation.


“Laos is an emerging market in the region. Politically, it will take over from Indonesia as the rotating chair of ASEAN next year. Economically, the completion of important infrastructure such as the Laos-China Railway has transformed it from a land-locked country to a land-linked country. The socio-economic benefits are obvious,” Hui stated.


The collaboration between Laos and Hong Kong extends to the talent sector, with the Hong Kong Special Administrative Region (HKSAR) government relaxing visa policies in October, allowing Lao individuals to travel for employment, training, and study in UGC-funded institutions.


Furthermore, Hong Kong aims to foster cooperation in green and sustainable finance with Laos and Vietnam. The special administrative region has taken strides in green financing, planning amendments in January 2025 to enhance climate-related disclosures by listed companies. Hui expressed Hong Kong’s readiness to share experiences and collaborate with Laos and Vietnam in this critical area.


The country has also expressed its commitment to supporting Laos’ ASEAN Chairmanship, as “Hong Kong stands ready to provide solutions for Laos and ASEAN to attract international capital to support their projects and development,” Hui said during his visit to Laos on 11 December. 


By Jonathan Meadley


Source: Laotian Times

High-Speed Rail Linking Nong Khai, Vientiane Expected to Complete in 2028

The Nong Khai-Vientiane stretch of the Thai-China high-speed rail (HSR) project is anticipated to conclude construction in 2028, revealed Thai Deputy Transport Minister Surapong Piyachote on 14 December.


With an estimated cost of THB 3 billion (approximately USD 86 million), the 7.3-kilometer section will undergo a feasibility study commissioned by the State Railway of Thailand (SRT). The final design selection is expected in the upcoming year, followed by the bidding process scheduled to kick off in 2025.


Thailand is advancing its goal of integrating the rail system with the Bangkok-Nong Khai high-speed train project, aiming to bolster regional connectivity and trade prospects with China via the Laos-China Railway. 


Notably, Thai fruit exports, particularly durian, have seen significant growth in 2023. The Nong Khai crossing has witnessed substantial growth, with fresh durian exports dominating at over THB 2 billion (USD 57 million), reflecting a 364 percent surge from 2022.


The entire Thai section of the Thai-China HSR project, covering 606 kilometers from Nong Khai to Bangkok, is in progress. 


However, the initial phase, which aims to lay 253 kilometers of tracks between Bangkok and Nakhon Ratchasima at a cost of THB 179 billion (around USD 5 billion), is only 28.6 percent complete. Delays attributed to land expropriation issues have hindered progress, impacting the project’s timeline, which ideally should now be 50 percent, as reported by the Bangkok Post.


Additionally, concerns regarding the project’s impact on World Heritage sites have prompted a wait for the assessment results required by the United Nations Educational, Scientific, and Cultural Organization (UNESCO), according to Surapong.


Nonetheless, the feasibility study for the segment connecting Nakhon Ratchasima and Nong Khai has been finalized. However, the Ministry awaits the submission of the environmental impact assessment from the SRT. 


Upon completion, these segments are expected to enhance cargo and passenger movements between Thailand and China.


By Chono Lapuekou


Source: Laotian Times

Cambodia aims to dominate the cashew market globally by 2027

To boost the domestic processing capacity and achieve Cambodia’s 2027 goal of becoming a leading nation in not just the cultivation of cashews but their processing and export, it is estimated that at least 50 medium-sized processing facilities will be required, according to insiders. At present there are three.

Uon Silot, president of the Cashew nut Association of Cambodia (CAC), shares that more than 90 per cent of the Kingdom’s raw cashews are currently exported to neighbouring countries for further processing. 

One of the existing facilities, “Cashew Village”, is tucked away in the picturesque Banteay Srei district, approximately 25km northeast of Siem Reap town and province.

Founded by Phal Phearum in 2022, this community-driven cashew processing operation has transformed from a small local endeavour to a thriving business which is ready to tap into global export markets.

The journey began with a collaborative effort between Phearum and cashew farmers from Banteay Srei and adjacent Phnom Kulen district. 

Together, they began processing cashew nuts, providing meaningful employment opportunities for six individuals, the majority of them women.

“We buy high-quality nuts from farmers and process them immediately,” said Phearum, who initially worked as a tour guide in the Angkor area after graduating.

“We want good products that will reach consumers, rather than seeing our farmers sell raw nuts to foreign companies which process them and then import the finished products back to us,” he adds.

For full article, please read here


Author: Hong Raksmey 
Source: The Phnom Penh Post 

4 luxury consumer profiles across Asia-Pacific cited

Trend forecaster WGSN has cited luxury consumer profiles reshaping the future of engagement in Asia-Pacific (APAC), which continues to represent the largest market for luxury goods accounting for nearly half of all expenditure.

In a white paper, the WGSN said the APAC luxury consumer will become more discerning, and seek hyper-relevant and seamless luxury experiences while leveraging hyper-local resources.

It urged brands to keep up with this fast-evolving cohort to retain loyalty and grow market share, and engage with them in authentic and humanizing ways through innovative technology and retail.

WGSN identified these consumers as Mindful Luxurians, Self-Rewarders, Multidimensional Escapists and Change Makers.

“Affluent and reflective, Mindful Luxurians are looking for moments of pause through leisure, luxury and wellbeing,” it said, adding they expect brands to provide value and promote local production that celebrates their culture.

 WGSN said that optimistic yet cautious, Self-Rewarders are looking to brands for empathy and support during key stages and life events.

“This means there is (an) opportunity to develop strong loyalty and followings during such events. In addition to feeling successful and rewarded, this upbeat cohort is forming smart digital purchasing habits to indulge themselves with luxury goods after years of uncertainty,” it said.

Overwhelmed and tired of mundanity, the paper said Multidimensional Escapist consumers seek moments of escapism through virtual and phygital worlds and purchases.

“Idealists at heart, Change Makers are looking for ethical and sustainable brands and retail experiences,” it added. “They look to retailers to combine products and meaning in interesting and original ways.”

WGSN said luxury consumer sentiments have evolved, and their priorities or expectations have shifted over recent years of global disruptions.

“Despite recent years of tumult and widespread uncertainty due to a shifting geopolitical order, the Covid-19 pandemic, climate change and other global issues, consumers across the Asia-Pacific region are showing resilience and optimism as their consumption reflects their hopes for the future, as well as their values for strengthened ties within their local communities,” it said.

Modest growth seen for PH garment, textile exports in 2024

Exports of garments, textile and apparel are seen growing by measly 2 percent to around $1.33 billion starting in the middle of 2024 as industry players expand into new markets to boost revenues.  

Robert Young, president of Foreign Buyers Association of the Philippines (FOBAP) and trustee for the textile, yarn and fabric sector of the Philippine Exporters Confederation Inc., said that 2024 will “not be an easy year” for the sector amid Russia’s invasion of Ukraine and the Israel-Hamas war causing disturbances in the supply chain.

Young said they are now looking for other markets that can be tapped aside from the current export markets which include the United States, Canada, European Union (EU) and Association of Southeast Asian Nations (ASEAN).

“So we are now looking for some other countries in South America and in the Middle East, we are now talking to them which somehow can add up to our production quantity,” he said. “We are already in the process of receiving orders from the new markets and the usual markets, they are still there. However, (these are) not as big as last year.”

Young sees high demand for basic wearables and fast fashion or high-end garments next year.

He said the achievement of 2-percent export growth by the middle of next year also hinges on government initiatives on establishing more free trade agreements (FTAs) with other countries, and a remedy to reduce power cost in the country or provision of energy subsidy especially in the export sector.

“Our free on board price is 15 percent higher than the ASEAN competitors therefore, it will be not an easy task for us in getting the appropriate quantity for our production,” he said.

Young said more FTAs and lower or subsidized power costs can somehow ease up production costs.

He also particularly cited the looming extension of the EU’s Generalized Scheme of Preferences Plus (GSP+) boosting the sector’s revenues.

“As far as productivity is concerned, we are ready and we have ample laborers as of now. This is due to lesser production orders,” he added.

Young also expressed hope that the labor cost will be maintained amid the proposed P150 legislated wage hike, which he said “for sure will again deter our plan or our projection to increase the export revenue in the midyear (of 2024).”

EU circularity policy marks shift from recycling to ‘resourcing’

Companies should shift to “resourcing” from “recycling” and make sure to integrate circularity strategies into their business value chains if they aim to comply with the European Union’s stringent circular economy (CE) policy, according to an international circularity expert.

Kazunori Kitagawa, chief of the Eco Management Center of the Japan Productivity Center, identified two key trends in the EU’s circular economy plan that he urged enterprises with business ties to Europe to keep up with.

One of these is the move from recycling to resourcing, in which products cannot be distributed or sold unless recycled materials are used.

“CE emphasizes resourcing over recycling,” Kitagawa said. This entails that products manufactured for use or consumption must undergo material recovery for recycling and waste management. These recycled materials and parts are resourced, either destined for the second raw materials market for manufacturing purposes or reused by the company for remanufacturing or refurbishing.

The other major trend is the integration of circularity strategies into the business value chain, which is part of the EU’s key Sustainable Product Policy or SPP, according to Kitagawa in a recent presentation.

The Sustainable Product Policy—the most important policy of the EU’s CE action plan—seeks to integrate circularity into the business value chain through designing products that are more durable and easy to repair and upgrade, and total life-cycle management.

 “Ultimately, companies have a responsibility to build and operate a total value chain management that incorporates product design and life cycle management systems that enable the systematic and continuous use of products and materials,” Kitagawa explained.

He added: “Through these efforts, both arteries and veins of a resource supply chain, which had been divided, will be integrated into the body of the business, making the most of the circular value of products and materials, creating a highly resilient value chain.”

In this way, since supply chain management is changing significantly from the traditional way, tracking becomes more important than ever. “This is because tracking data plays an important role in ensuring reliability and safety when using products and materials in a circular manner,” he continued.

These two CE trends are part of the EU’s ultimate objective of “decoupling,” which means creating economic systems that don’t depend on resource consumption and that separate economic growth from resource consumption.

Essentially, absolute decoupling is a “regenerative growth model that gives back to the planet more than it takes,” Kitagawa said.

MSMEs urged to use digitized financial tools

Micro, small and medium enterprises (MSMEs) are advised to utilize digitized financial tools to boost their efficiency while accessing financing they need to succeed.

Maria Isabel Ridad, founder of fintech platform Monetize, said digitization is not just a buzzword but a necessity.

“It starts with making your data readily available so it is there when you need it. But that’s not all. Automation also comes in to take care of those manual tedious tasks and take them off your plate to reduce errors and costs, minimize your cost from these errors. And then we added a layer of artificial intelligence (AI) to give you actionable business insights,” she told exporters.
 
Ridad said digitization accelerates business’ decision-making process –financials, revenue streams, expenses, disbursement to suppliers and employees, and unifies systems.

She said the Monetize is engineered with AI that minimizes errors and helps the MSMEs make smarter decisions faster.

“With Monetize, uploading your bank statements –whether manually or automated– the flow of funds is tracked, your disbursements and your collections, the inflow and outflow for your back account and payments to your suppliers, to your team, uploading of financial statement, so you can have immediate overview of where you are,” she added.

Apart from AI-based business advisory, Ridad said the platform has a marketplace for businesses needing to access financing.   

She said MSMEs do not need to approach traditional financial institutions and go through a very long application process.

“(So) Monetize is not just about adopting another business tool. It is about embracing a comprehensive future-proof solution especially designed for MSMEs. It is about embarking on a transformative journey to digitize your business, make smarter decisions and ultimately drive sustainable growth,” she added. 

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