In a heartening development for trade and diplomatic ties, the Ambassador of Indonesia to Cambodia, Dr. Santo Darmosumarto, has expressed unwavering optimism about the burgeoning trade potential between the two countries. At a recent business dinner hosted by the Indonesian embassy, Ambassador Darmosumarto confidently predicted that the trade value between Indonesia and Cambodia could soar past the $1 billion mark by the end of 2023.

Indonesia has steadily climbed the ranks among Cambodia’s trade partners, currently holding the sixth position, trailing only behind major players like China, the United States, Vietnam, Thailand, and Japan. Recent data from the General Department of Customs and Excise (GDCE) of Cambodia reveals a significant increase in trade between these Southeast Asian neighbors, with a total value of $808.07 million. This represents an impressive 18.6 percent growth compared to the previous year.

The Ambassador highlighted the cultural and culinary similarities that bind the two nations together, explaining, “Indonesia has a lot in common with Cambodia, with the most basic similarity being the food we eat, as rice is the staple diet for both our countries. Usually, when people eat rice, there’s usually some common denominator there.” Such shared elements of culture and cuisine have fostered a growing appreciation for Indonesian products, particularly in the food and beverage sector among Cambodian consumers.

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Author: Surya Narayan 

Source: The Better Cambodia 

MOVING to clean energy and managing water risks are among the key issues for South-east Asia that will feature at the upcoming United Nations climate summit (COP28), experts from consulting firm BCG said on Friday (Nov 10).

On the topic of the energy transition, “the region needs confidence that the rest of the world is going to decarbonise in tandem”, said Edmond Rhys Jones, BCG partner and associate director, as part of a panel that discussed COP28. The conference will kick off in Dubai on Nov 30.

“There are also huge business opportunities here; we need a huge amount of new green technology to be scaled and deployed. We need new manufacturing capacity on established technologies like solar and wind, but also new ones like hydrogen,” he said.

Receiving more clarity around the “speed and shape” of the energy transition will be a great benefit to the region, Jones added, albeit acknowledging that “finding consensus on some of the language around the energy transition” could be a challenge.

The energy transition will also need to take place in parallel with protecting prices for end customers, which is a sensitive topic, said Marko Lackovic, managing director and partner at BCG.

Another complication is that South-east Asia has many coal-based power plants which are relatively new or still in the pipeline to be built. The phase-down of such assets will be a pertinent question for the next two or three decades. 

That said, South-east Asia can also play a key role in the energy transition. Indonesia, for instance, sits in the value chain for battery technology with its vast nickel reserves. The country is also a potential market for two-wheeler electric vehicles, said BCG managing director and partner Marc Schmidt.

Water resilience

Water is another big topic that BCG is watching. Water adaptation and resilience featured strongly at last year’s COP27, said Dean Muruven, associate director at BCG. Separately, the UN held a global conference on water this year, the first in almost 50 years.

“What we’ve seen is there’s a lot more movement, with water as a priority topic (on) the global agenda, both in the public sector and private sector. And there’s increasing recognition that we need to stop just admiring it as a risk, and shift that mindset towards resilience thinking. We genuinely believe that this is a strategic topic,” he said.

There is room to enhance tech innovation in South-east Asia to deal with water challenges, as well as by tapping nature-based solutions. Wetland restoration could be especially valuable in this region, said Muruven.

“Water needs to be a C-suite topic; it needs to be discussed in the boardrooms at a strategic level. This is not anything new for C-suite. If you go back to the World Economic Forum risk reports for the last 10 years, water is always in the top five, but we’ve never seen real, meaningful action,” he said.

Strong voice

It is important for South-east Asia to feature prominently in the COP process, said Varad Pande, partner and director at BCG. The region is not only rich in biodiversity, but also vulnerable to climate shocks.

He expects to see a “strong voice of Asean” at COP28, with a lot of activity at country pavilions, and announcements of national adaptation plans and new alliances.

“I think you’ll see a lot of activity on collective power and collective action of South-east Asia, both to demonstrate our commitment as a region, but also to attract the kind of capital that we need to unlock climate action,” he said.

To be sure, there could be challenges. One of the biggest hurdles at COP28 could be on deciding who pays for the “loss and damage” fund to help poor nations facing climate disasters.

Said Jones: “I think the loss and damage conversation is really hard, because it raises such domestic political difficulties for so many parties involved. There are humans in these negotiating rooms, and there is passion in the room. I really hope that some progress can be made, but I think that’s going to be challenging.”

Source: The Business Times. Link: Here.

A NEW survey released by HSBC showed that nearly half, or 45 per cent, of companies in South-east Asia have plans to expand their supply chain in China over the next 12 months.

Some 92 per cent of Indonesia businesses expressed an interest in expanding their supplier networks in China over the next three years, just a shade higher than the 89 per cent of companies in Vietnam and 87 per cent in the Philippines.

The survey findings were made public on Monday (Nov 6) in conjunction with this week’s China International Import Expo (CIIE) in Shanghai.

This sixth edition of the survey was the first to be conducted since Covid-19 restrictions in China were lifted in January this year, with participation from over 3,300 companies in 16 countries including the US, South Korea, Canada, the UK, France and Germany.

Overall, about three-quarters (73 per cent) of respondents expect to increase their supply chain footprint in China over the next three years, with about 25 per cent indicating the increase will be “significant”.

HSBC said that its survey findings suggest that many of China’s longstanding fundamentals, including its deeply integrated supply chain networks, continue to attract international firms.

A key reasons why companies are expanding in China is the ease of managing supply chains, with 28 per cent of respondents feeling this way. This, however, is down from 32 per cent who said so in 2022, despite the fact that China remained largely closed off to the rest of the world last year.

“This reflects the growing complexity of global supply chains, with businesses pushing to diversify and localise their networks and regulators imposing tariffs and restrictions on strategically important goods,” the report noted.

HSBC said that as supply chains continue to evolve, this could have an impact on China over time. The survey found that 27 per cent of companies expect to move their supply chains to new locations over the next three years.

Just over a quarter (26 per cent) said they expect to place a greater focus on strategic suppliers within their supply chains.

Some consolidation is also on the cards: over a quarter (26 per cent) expect to place more focus on strategic suppliers within their supply chains.

Manufacturing leads the way

By sector, it is companies in the manufacturing space that are particularly interested to grow their supply chain in China, with 74 per cent of respondents saying they are likely to increase it over the next three years.

Within the manufacturing industry, food and beverage (F&B) producers were the most keen to expand their China supply chains – 86 per cent said that they would do this over the next three years. In second spot was the computer and electronics manufacturing industry, with 71 per cent of companies there saying they would do so.

HSBC’s survey also found that international companies are attracted by China’s digital economy and the country’s leading position in e-commerce, artificial intelligence and digital payments.

Almost nine in 10 respondents (87 per cent) noted that China’s fast-growing digital economy is opening up new investment opportunities.

HSBC said that digitalisation remains a focus for international businesses in China. Technology and innovation, and digital capabilities and platforms, represent two of the top three investment priorities for businesses in the next 12 months.

On average, companies reported plans to invest 8 per cent of their global operating profit on technology and digitisation for their Chinese operations.

In the area of sustainability, renewable energy and electric vehicle (EV) production are seen as having the greatest growth potential. Respondents also see China, with its large domestic market, as an attractive place to develop and test new technologies and products.

Commenting on the survey findings, Barry O’Byrne, chief executive officer for HSBC Global Commercial Banking, said that China is “hardwired” into the global economy.

“While its relationship with business is evolving and economic headwinds remain, it’s still a critical market for many international firms. From its advanced manufacturing base, to its potential in renewable energy and EVs, and fast-growing digital economy, China offers a range of growth opportunities for international businesses,” he added.

Source: The Business Times. Link: Here

A new railway project between Laos and Vietnam is ready to kick off. The train will establish a direct link between the countries and aim to become a primary source of economic and infrastructure development in the region.

The project is part of the Vientiane-Vung Ang railway development plan for 2021–2030, with a vision towards 2050. It is a joint venture between Vietnam’s Deo Ca Group JSC and Petroleum Trading Lao Public Company (PTL) that will be developed under the form of a public-private partnership, Vietnam Plus reported. 

Covering a length of 103 kilometers from Vung Ang-Tan Ap-Mu Gia, the first section of the railway is estimated to cost nearly VND 27.5 trillion (approximately USD 1.12 billion). 

According to Vietnamese media sources, the joint venture must conduct a pre-feasibility study and submit a report on their findings in accordance with national and regional laws and planning schemes before starting work on the project.

Chanthone Sitthixay, President of PTL, stated at the signing of a joint venture in late February that the railway has the potential to greatly benefit the economies and societies of both Laos and Vietnam, as well as to strengthen the already close ties between the two countries.

The project is expected to be operational in early 2027.

As part of the Vientiane-Vung Ang railway, this project will play a vital role in connecting Laos to regional maritime trade, enhancing economic ties with Vietnam, and targeting markets in China, South Korea, and Japan.

The Vientiane-Vung Ang railway, a 554.7-kilometer project, will also be built under a public-private partnership for a total investment of VND 149.55 trillion (USD 6.3 billion).

Once completed, the line will connect Vientiane Capital to Thakhaek district in Khammouane province, then continue to the Vietnamese border and on to Vung Ang seaport in Vietnam’s central coast of Ha Tinh province.

By Chono Lapuekou

Source: Laotian Times

Cambodia’s Phnom Penh Autonomous Port recently signed an MoU with the Saigon Newport Corporation, which operates Vietnamese ports, to raise efficiency and reduce shipping costs between both sides.

Cambodia is building additional sub-ports along the Tonle Sap and Mekong rivers to connect to important industrial and agricultural areas.

Cambodia’s Phnom Penh Autonomous Port (PPAP) recently signed a memorandum of understanding (MoU) with the Saigon Newport Corporation (SNP), which operates Vietnamese ports, to raise efficiency and reduce shipping costs between both sides.

The signing ceremony was held at an SNP workshop to explore ways to strengthen connectivity and develop logistic routes. The workshop was organised on the sidelines of the Vietnam-Cambodia Defence Economic Production Exhibition 2023 in Phnom Penh in October last week.

PPAP deputy director Hei Phanin said logistics between Vietnam and Cambodia has developed rapidly in recent years, strengthening ties along the common border, according to Vietnamese media reports.

“PPAP is strongly committed to supporting the Cambodian government’s policy to grow the Cambodian economy by improving our infrastructure and services, in response to growing demand. We are constructing addition[al] sub-ports along the Tonle Sap and Mekong rivers to connect our services to important industrial and agricultural areas.

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Author: Fibre2Fashion News Desk

Source: Khmer Times

Cambodia collective trademark Sen Kra Ob (SKO) winning the gold award in the 1st China-ASEAN Taste Quality Appraisal Activities of High-Quality Indica Rice Variety will contribute to promoting the commodity to the foreign market, said Cambodia Rice Federation (CRF).

SKO rice was awarded the gold award in the international rice competition last week at the Guangxi Zhuang Autonomous Region Seed Management Station and Rice Research Institute of Guangxi Academy of Agricultural Science, China, a CRF statement on Tuesday said.

As many as 61 rice varieties, of which 12 from five ASEAN countries, were submitted for the contest, stated the report.

SKO rice was recognised by the award committee as a good and delicious rice variety and given the gold medal, CRF said.

“Winning the gold award will contribute to promoting the name of Cambodia’s fragrant rice to a wider market,” CRF said in the statement.

The collective trademark of SKO and Damnoeb Sbai Mongkul (DSMK) Cambodian premium glutinous rice were officially launched in June 2022 with the aim of boosting the export of milled rice.

SKO rice is popular all over Cambodia, as it provides a high yield, is aromatic and of good quality, and is also soft and delicious, according to the Ministry of Agriculture, Forestry, and Fisheries.

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Author: Chea Vanyuth

Source: Khmer Times

BANDAR SERI BEGAWAN – A new Brunei-based airline called GallopAir will take to the skies in the third quarter of 2024, positioning the sultanate as a potential aviation hub for the BIMP-EAGA region.

On Wednesday, the airline signed a letter of intent to purchase 30 aircraft from Chinese planemaker Commercial Aircraft Corporation of China (COMAC) in a deal worth US$2 billion.

The signing took place at the China-ASEAN expo in Nanning, witnessed by Hj Amer Hishamuddin, permanent secretary at Brunei’s Ministry of Development, and Daniel Leong, acting CEO of the Brunei Economic Development Board.

In a statement, GallopAir said the deal would have “profound implications” for both Brunei and Southeast Asia, enhancing connectivity in the region by offering direct flights from Bandar Seri Begawan to several cities in China and the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA).

Little is known about GallopAir, which is expected to be only the second Brunei-based airline operator after national carrier Royal Brunei Airlines. The Brunei government has yet to issue any statement about the airline, which has an office address listed in Batu Bersurat, but no official website.

Source: The Scoop

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The Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) continues to be an attractive hub for foreign and domestic investments, said Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah at the launch of BIMP-EAGA Trade Convention 2023 (BETCON 23) at Bridex Hall, Jerudong.

The minister said the sub-region saw foreign direct investments in 2022 rose to USD19.9 billion, a 46.7 per cent increase from 2021. Meanwhile, domestic investments grew to USD8.7 billion in 2022, an increase of 19.3 per cent compared to 2021.

“Tourism is showing full recovery, with arrivals increasing by 137.3 per cent to 114.8 million in 2022 from 48.4 million in 2021,” said the minister.

The minister said there is an increase in priority infrastructure projects, from 57 in 2017 to 129 in 2023, amounting to USD38.87 billion. These projects include road, sea and airports, infocommunications and technology infrastructure and power interconnections.

The minister also noted an improvement in the sub-region’s trade balance, from USD70.2 billion to USD84.8 billion from 2021 to 2022.

“With all these positive developments in BIMP-EAGA, I believe that BETCON23 is the right platform for our businesses to network, promote their products and services, and explore potential business opportunities that will further boost cooperation towards achieving the BIMP-EAGA Vision 2025 (BEV 2025),” said Dato Seri Setia Dr Awang Haji Mohd Amin Liew.

Yesterday, the minister launched the event alongside Indonesia’s Senior Advisor to the Coordinating Minister of Economic Affairs Dr Rizal Edwin, Malaysian Deputy Minister of Economy Dato Hajah Hanifah Hajar Taib; Chairperson of the Mindanao Development Authority Secretary Maria Belen S Acosta, Cese and BIMP-EAGA Business Council (BEBC) Brunei Chairman Pengiran Dr Haji Haris bin Pengiran Duraman, who is also this year’s BEBC Chair.

Source: Borneo Bulletin

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Brunei Darussalam is poised for economic growth, with the latest quarterly outlook from the ASEAN+3 Macroeconomic Research Office (AMRO) projecting a 1.1 per cent growth for 2023 and an expected 2.0 per cent growth in 2024.

This upward revision comes as a result of AMRO’s October quarterly update of the 2023 ASEAN+3 Regional Economic Outlook (AREO), which increased the Sultanate’s growth forecast from its previous estimate of 1.0 per cent made in July.

In addition to the growth forecast adjustments, AMRO also revised Brunei’s inflation outlook.

For 2023, the inflation forecast was raised to 1.0 per cent, up from the previous estimate of 0.9 per cent, while the 2024 inflation outlook was increased to 1.1 per cent.

The report highlighted that despite a less optimistic global economic outlook for the following year, the region’s growth will be bolstered by an expected turnaround in manufacturing exports and improved growth momentum in China.

The broader ASEAN+3 region is projected to grow by 4.3 per cent in 2023, slightly down from the 4.6 per cent projection in July. The dip is primarily attributed to weaker-than-expected growth in China during the second quarter of the year.

Source: Borneo Bulletin

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ASEAN Leaders adopted the Declaration on ASEAN as an Epicentrum of Growth at the recent 43rd ASEAN Summit. Read further details of the Declaration in the September edition of the ASEAN for Business Bulletin here.

The Lao-China Railway has surpassed expectations, transporting a total of 26.8 million tons of cargo as of 3 October, and carrying more than 2,700 types of goods since it began operating in December 2021.

China Railway Kunming Group Co., Ltd. reported that the Lao-China Railway has been in operation for 22 months, becoming a vital artery for trade and economic development in the region and a major international railway connecting China, Laos, and neighboring countries.

Since the beginning of its operations, the railway has transported over 5.5 million tons of import and export goods, including agricultural products, minerals, and manufactured goods, playing a key role in trade and economic development.

In 2023 alone, the railway transported over 3 million tons of goods, with over 345,000 tons imported from China to Laos and over 2.7 million tons exported from Laos to China.

Laos’s top exports to China include fruits, cassava flour, barley, rubber, beer, iron ore, concentrated iron ore, and chemical fertilizers.

The Laos-China Railway recently announced that it has carried over 3.1 million passengers since it opened in late 2021 until September this year, with an average daily ridership of 4,889 passengers and a peak ridership of 10,197 passengers.

In 2023, the Laos-China Railway saw a surge in passenger traffic, with over 1.75 million passengers traveling on the railway from January to September, a 103.7 percent increase from the same period in 2022.

The Laos-China Railway Company also purchased a new electric multiple-unit (EMU) train to meet the growing demand from both domestic and international tourists, especially in preparation for Laos’ Chairmanship of ASEAN and Visit Laos Year 2024.

By Chono Lapuekou

Source: Laotian Times