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
A freight train service linking Vientiane Capital, Laos, and Shanghai, China, was officially launched on 8 October.
This freight service which links the Laos-China Railway and the Shanghai-Kunming Railway, will be operated both ways.
The inaugural freight journey from Vientiane to Shanghai transported a variety of cargo, such as fruits and rubber from Southeast Asia. Following its journey from Vientiane Capital to Kunming, the train continued to Shanghai from Wangjiaying West Station in Kunming, the capital of Yunnan Province, China.
According to the State Council Information Office of the People’s Republic of China, the trip to Shanghai is expected to take 82 hours (3.4 days).
The Laos-China Railway project is part of China’s “Belt and Road” initiative, which aims to enhance regional integration, boost trade, and stimulate economic growth by connecting Asia with Africa and Europe through both land and maritime networks.
Since its commencement in December 2021, this railway line has facilitated the transportation of approximately 27 million tons of cargo to various destinations, including Laos, Thailand, Vietnam, and Myanmar.
By Jonathan Meadley
Source: Laotian Times
Primaduta and Primaniyarta Award winners with top government officials during a photocall at the venue of TEI 2023. Cambodian firm Kabbas Co Limited has won the ‘Primaduta Award’ from the Indonesian Government under the import category.
Cambodian firm Kabbas Co Limited has won the ‘Primaduta Award’ from the Indonesian Government under the import category. The awards were declared at the Trade Expo Indonesia launching ceremony. Kabbas Co Limited is one of the eight companies to win the award for importing Indonesian products.
Primaduta Awards are the highest award and appreciation from the part of the National Government of Indonesia, handed over to companies that promote sustainable imports of Indonesian products. Primaniyarta Award is the greatest reward given by the Indonesian Government to the most successful Indonesian exporters and to them who can be the role model for the other Indonesian exporters.
Kabbas Co Ltd is an importer of various Indonesian products in Cambodia and the imported product list includes Kopiko, Danisa and Malkist Roma from PT.Mayora. It also imports Good Day Coffee from PT.Santos Jaya Abadi.
The Trade Expo Indonesia is an annual trade exhibition organised by the Trade Ministry. This year, TEI was held hybrid at the ICE BSD City, Tangerang, on October 18-22, 2023, and online from October 18 to December 18, 2023, through the official website www.tradexpoindonesia.com.
For full article, please read here
Author: Sreekanth Ravindran
Source: Khmer Times
Cambodia’s National Solar Park supported by the Asian Development Bank (ADB) will enable the country’s state-run national power utility Electricite du Cambodge (EDC) to charge local power consumers with the lowest tariff in the Association of Southeast Asian Nations (ASEAN) region, said a release by the Ministry of Mines and Energy (MME).
MME’s release pointed out that the comparison of to-be-charged power utility tariff was made during a meeting held on Tuesday between MME’s Minister Keo Rattanak and Winfried F. Wicklein, ADB’s Director General for Southeast Asia, which was also attended by other senior officials of the government and ADB including Dith Tina, Minister of Agriculture, Forestry and Fisheries (MAFF), Hang Chuon Naron, Minister of Education, Youth and Sport (MoEYS), Thor Chetha, Minister of Water Resources and Meteorology (MOWRM) and ADB Country Director for Cambodia Jyotsana Varma.
“The solar power project is the most cost-efficient in the region and a good model for other countries,” said Wicklein. The top-level working lunch was also attended by senior officials from other government ministries-institutions such as the Ministry of Economy and Finance (MEF) and the Ministry of Environment (MoE) at Rosewood Hotel Phnom Penh.
The National Solar Park project that has been completed in phase 1 was estimated at $26.71 million including $7.64 million financed by ADB as loans, $11 million co-financed under the Strategic Climate Fund (SCF), $5.07 million financed by the government itself and $3 million by grant financing.
Phase I of the tender, for the first 60 MW, was organised in 2019 and awarded to the firm Prime Road Alternative. The process resulted in a record-low price for utility-scale, grid-connected solar PV in Southeast Asia, at $0.039 per kilowatt-hours (kWh). The remaining 40 MW was tendered in 2020 and awarded to Trina Solar Co. Ltd. This led to another record-low procurement price for the region at $0.026 per kWh.
For full article, please read here
Author: Kang Sothear
Source: Khmer Times
The Lao head of the Party Central Committee for External Relations, Thongsavanh Phomvihane, met with a Russian delegation led by an MP and Secretary of the Moscow Capital Party Committee Denis Andreevich Parfenov this week, to discuss economic cooperation, including the possibility of launching a direct flight route between Vientiane and Moscow.
During the meeting, on 2 October, the parties stressed their interest in enhancing bilateral trade and boosting investment and tourism. The launch of a Moscow-Vientiane flight route would aim at increasing the number of tourists from Russia and bringing in more revenues and jobs in Laos.
More than 23,000 Russian tourists visited Laos in the first half of 2023, and this number is expected to increase in 2024, as Laos has designated the coming year as “Visit Laos Year 2024.”
Laos and Russia previously had a direct flight linking the two countries. The route was operated by Ural Airlines from Vladivostok to Vientiane Capital, but it was canceled in February 2023 due to limited demand and financial constraints, after starting operations just a few months earlier, in October 2022.
Now, a year later, Ural Airlines announced the resumption of flights from the port city of Vladivostok to Vientiane Capital for its winter schedule.
Ural Airlines will start operating a weekly flight from Vladivostok to Vientiane Capital starting on 29 October. The flight will depart Vladivostok at 9:30 a.m. and arrive in Vientiane at 3:50 p.m., with an estimated travel time of 6 hours and 20 minutes.
The return flight will depart from Vientiane to Vladivostok at 1:00 a.m. on 30 October and arrive at 7:35 a.m.
The two countries have a long history of close ties, but trade between them has never been highly profitable. In 2022, bilateral trade was valued at around USD 50 million, according to ASEAN Briefing.
To that end, the Russian delegation in Laos further discussed future plans to purchase Lao coffee and increase imports from Laos.
By Chono Lapuekou
Source: Laotian Times
The Ministry of Industry and Commerce in Laos is pushing for the increased use of Electric Vehicles (EVs) in the country to reduce funds spent on importing petroleum.
To support its EV ambitions, the Ministry is keen to facilitate the production, supply, and usage of these vehicles, as well as support the setting up of EV charging stations around the country.
Buavanh Vilavong, the Director General of the Department of Industry and Handicraft under the Ministry of Industry and Commerce, highlighted the importance of adopting EVs in Laos to minimize the financial burden of importing petroleum.
He emphasized that by transitioning to electric vehicles, the country can reduce its dependence on fossil fuels and move towards a sustainable transport system that uses clean energy and is better for the environment.
The Ministry of Industry and Commerce will also be working with the natural resources and environment sector to implement strategies for handling expired batteries, as electric vehicle batteries must be replaced every seven to 10 years for smaller vehicles, and three to four for larger vehicles like buses or vans. This is to ensure that there are no negative impacts on the environment and the population from the disposal of used EV batteries.
Due to its considerable potential for electricity generation through renewable sources, Laos aims to increase its EV consumption to at least 1 percent of total vehicles by 2025 including cars, buses, and motorcycles. It also plans to install at least 50 charging stations across the country to support this transition.
By Jonathan Meadley
Source: Laotian Times
Filipino micro, small and medium-sized enterprises (MSMEs) are advised to implement a quality-based excellence approach in their products and services, a key strategy for competitiveness and market access.
According to a quality handbook released by the International Trade Centre under “ARISE Plus Philippines Project” financed by the European Union, small entrepreneurs very often are not aware that not applying quality proves more costly than incurring costs of applying quality methods and techniques.
“From commanding favorable prices, encouraging repeat business and reducing risk and waste, to increasing market shares and profits, the benefits of quality are extensive and significant,” it said.
The handbook cited some good quality practices and tools, including Kaizen, quality circles, good housekeeping practices, and the seven basic quality tools.
Kaizen in Japan is a system of improvement that applies equally to both home and business life, as well as social activities. It has contributed to the success of many Japanese companies.
Every employee -from upper management to the cleaning personnel- is encouraged to come up with small improvement suggestions on a regular basis. Suggestions are not limited to any specific area such as production or marketing, but concern any area where improvements can be made.
“It would be useful for managers to spend some time on the shop floor working with employees to help and encourage them to develop suggestions. Managers should also ensure employees see their good suggestions acted on immediately. Suggestions should be implemented as far as possible on the same day. Employees should be kept informed about the outcome of their suggestions,” it said.
Tools used by quality circles include data gathering tools such as Check Sheets, graphical tools like histograms, frequency diagrams and pie charts, the Ishikawa or Fishbone diagram to identify causes of a problem, the Pareto Chart to set priorities and the PDCA (plan-do-check-act) approach for continuous improvement.
The handbook said issues that are generally addressed by quality circles in enterprises include improving occupational health and safety, improving product design, and improving manufacturing
processes.
The good housekeeping practices refer to the five steps of Japanese 5S involving Sort, Set in order, Shine, Standardize and Sustain.
Sort helps in determining which items are needed, Set in order enables one to decide how they are to be kept, while Shine includes cleaning and caring for equipment and facilities and inspecting them for abnormalities.
Standardize means ensuring that whatever level of cleanliness and orderliness has been achieved and should be maintained. This requires the development of a work structure that will support the new practices and turn them into habits.
The fifth S –Sustain promotes the habit of complying with workplace rules and procedures, creates a healthy atmosphere and a good workplace.
“Before starting quality control activities, it is crucial first to set your housekeeping in order. Systematic housekeeping is the foundation for quality control,” the handbook said.
On the other hand, the seven basic quality tools that could easily be taught to any member of the organization include the process flow chart, check sheet, histograms, Pareto analysis, cause and effect diagram, scatter diagram and control charts.
After Italian economist Vilfredo Pareto, the Pareto analysis is also called the “80-20 Rule”, indicating that 80 percent of the problems stem from 20 percent of the causes. It helps to identify the most important areas to solve problems.
The handbook further said a customer will be satisfied if the product conforming to his needs and expectations is delivered, but businesses also need to deliver the product within the agreed time and price.
“In the marketplace, the winners will be those who can offer products or services that are better (in terms of quality), cheaper (in terms of costs) and supplied more efficiently (delivered in time or provided with a timely after-sales service). If customers are not satisfied, they can always buy from another supplier. In this sense, quality is the core task of a business. It is not optional. It is essential for survival,” it added.
Source: PHILEXPORT News and Features
The Chinese state-owned energy corporation inked a deal with the Lao Government last week to build a renewable energy base in Laos.
According to Reuters, CGN has signed a deal with the Lao government to develop a renewable energy base in Laos. The project will include various renewable energy sources such as wind, solar, hydro, and energy storage.
The base will be connected to an existing power line that transfers power from Laos to China’s Yunnan province. Additionally, a planned 500kV power line between the two countries will further enable the energy transfer.
This agreement builds upon a memorandum of understanding signed between CGN and the Lao government in October 2022. The signing took place during the China-ASEAN Expo held in Nanning, Guangxi province.
Chinese companies have reportedly invested over USD 16 billion in Laos until 2022, highlighting the nation’s significant role in the development and investment sectors within Laos.
By Phontham Visapra
Source: Laotian Times
The European Green Deal has caused concerns among emerging markets, especially ASEAN member states. The Green Deal is an array of initiatives and regulations aimed at meeting the European Union’s pledge to achieve ‘climate neutrality by 2050’.
Two major instruments are causing consternation among developing countries. The first is the European Union Deforestation-Free Regulation (EUDR), requiring all EU import and export commodities to be traceable as ‘deforestation-free’. The second is the European Union Carbon Border Adjustment Mechanism (CBAM), which imposes duties on products imported from countries without a carbon pricing mechanism or with carbon prices below the European Union Emissions Trading System. While the European Union maintains that the Green Deal is an environmental effort rather than a trade protection measure, it will still have adverse effects on ASEAN economies.
The impact of ongoing diplomatic negotiations is likely to be limited. On 29 June 2023, the European Union agreed to establish a Joint Task Force with Indonesia and Malaysia to discuss the EUDR — the same day it entered into force. With the CBAM expected to enter into force on 1 October 2023, there are questions about the impact on free trade agreement negotiations between the European Union and ASEAN member states, namely Indonesia and the Philippines.
ASEAN and EU decision makers must chart a path towards an equitable, business-centric resolution. The European Union should increase financial and technical support for a carbon-neutral economy, while ASEAN countries should enhance their regulatory frameworks to optimise the benefits of such an economic model.
The EUDR will initially cover seven commodities — palm oil, soy, wood, cattle, cocoa, rubber and coffee — and several derived products. Its extensive due diligence and tracking-and-tracing requirements will impose large compliance costs on Southeast Asian farmers, as producers must submit certificates reporting greenhouse gas emissions during production. The European Union also plans to establish a monitoring system, involving audits of goods-producing countries. These strict rules may further exclude smallholders from the export market and reduce their incomes.
Meanwhile, the CBAM will apply duties on certain products — including iron and steel — imported from countries without carbon pricing mechanisms or with carbon prices below the Emissions Trading System. This will apply to Indonesia and Malaysia’s iron and steel exports to the European Union. The impacts may even grow as the European Union is set to extend the sectors covered.
The CBAM will cause welfare losses in developing countries and welfare gains in developed countries, contradicting the principles of equity and ‘common but differentiated’ responsibilities. The CBAM could result in an annual welfare gain of US$11 billion in developed countries in 2030, with an annual welfare loss of US$9 billion in developing countries, compared to a baseline scenario.
In the same scenario, ASEAN could incur an annual welfare loss of US$500 million in 2030. The total net welfare transfer, from developing to developed countries, at US$20 billion, almost negates the EU’s US$25 billion climate financing for developing countries in 2021.
The societal and political costs of the CBAM and EUDR are harder to quantify. But ASEAN economies have a right to design their own green economy strategies. Small- and mid-size manufacturers are unlikely to withstand and taxation without adequate support.
To address these issues, the European Union should increase its climate financing and technical support to a level beyond reversing welfare loss in ASEAN caused by EU climate regulations. This expanded commitment should be translated into a significant climate finance package to enable ASEAN to meet the Green Deal requirements and improve its climate resilience. While the recently launched (US$95 million) EU–ASEAN Green Initiative and EU–ASEAN Sustainable Connectivity Package are welcome initiatives, they should target manufacturers and smaller businesses that will be directly impacted by the CBAM and EUDR.
EU–ASEAN climate cooperation should also include the establishment of national and regional carbon markets and pricing, along with a steady increase of carbon asset prices — including nature-based solutions in forests, peatland, and agriculture — to levels closer to the Emissions Trading System. One idea is to support mutual recognition and interoperability of emission reduction credits between ASEAN and the European Union. There should also be recognition that emission offsets remain a major tool for ASEAN to account for their economic growth and to comply with the required sustainability reporting requirements.
EU support should extend to climate-related investment in concrete transition projects, including those related to energy, circular economy, green transport and smart cities. The Just Energy Transition Partnership with and is a solid start. But the partnership could shift from the traditional donor-driven model of loans and grants towards a common but independent financing mechanism, catalysing private and public funding to enable third parties to buy coal assets for early retirement.
ASEAN member states and the European Union should ensure their regulations facilitate rather than impede trade and investments. The Green Deal need not serve as a cautionary tale where good regulatory intentions have unintended negative consequences.
Authors: Brasukra G Sudjana, Vriens and Partners and Cazadira F Tamzil, Pijar Foundation
Brasukra G Sudjana is Senior Director at Vriens and Partners, a policy consultancy firm, and former Assistant Director for External Economic Relations, ASEAN Secretariat.
Cazadira F Tamzil is Director of Public Policy at Pijar Foundation, Indonesia.
Source: East Asia Forum
Source: East Asia Forum
As ASEAN countries ink deals to move away from fossil fuel consumption and toward renewable energy sources, Laos is set to benefit from this environment-friendly trend.
According to Nikkei Asia, Singapore, a city-state whose primary source of energy is natural gas (95 percent), is trying to make a shift towards importing 30 percent of its energy supply from 4 gigawatts of low-carbon electricity by 2035.
This in turn has allowed countries such as Laos, which has been increasing its renewable power generation capacity, to benefit greatly from the move.
Around 80 percent of the electricity produced by Laos is sold to neighboring countries, Thailand and Vietnam, making up about 30 percent of the country’s total exports. However, Laos has now readied transmission infrastructure to export power to Cambodia, and it has already been supplying electricity to Singapore since 2022.
The latter kicked off last year with the start of the Laos-Thailand-Malaysia-Singapore power integration project (LTMS-PIP), which will transfer 100 MW of power from Laos to Singapore over two years.
The developed infrastructure to send power to Cambodia will also be used in the future to export more energy to Singapore through Cambodia.
Additionally, Laos has also begun the construction of a USD 700 million wind power project, called the Monsoon Wind Power Project. This will be the largest wind power plant in Southeast Asia, with the capacity of producing 600 MW of power, which will mainly be exported to Vietnam, which has recently suffered from chronic energy shortages.
Ultimately, the generation and increased export of renewable energy are aimed toward creating the ASEAN Power Grid, facilitating multilateral power trading in the region.
Moreover, cross-border renewable energy deals spread out supply throughout the region, providing more protection against natural disasters and geopolitical risks.
Hiroshi Takahashi, a professor at Japan’s Hosei University specializing in renewable energy policy, referred to a cross-border electrical grid as a form of “collective energy security,” and sees ASEAN as a good fit for such a project.
By Jonathan Meadley
Source: Laotian Times
Japanese Ambassador to Cambodia Ueno Atsushi has urged Cambodian exporters to enhance the quality of products with the required standards for exporting the items to the Japanese market.
“Cambodia’s exports of agricultural products to the Japanese market are marginal, but Japan can import more,” he said at a round table discussion on Cambodia-Japan relations at Sun & Moon Hotel, Phnom Penh, yesterday.
The Ambassador called for separate negotiating assistance to the agricultural sector in Cambodia under the official Japanese agency ODA, saying that it must be separated from private investment projects.
Japanese private companies have made some investments in Cambodia such as for the export of pepper products to Japan or cashew products, he added.
“We continue to support exports to Japan, both by the public and private sectors. At the moment, we do not have any restrictions on the import of Cambodian agricultural products to Japan,” he said.
Agricultural products from Cambodia are no different from the agricultural products of ASEAN countries. But the issue is transportation or the trademark of products in Cambodia, he said.
Cambodia and Japan are members of the Regional Comprehensive Partnership (RCEP) agreement, which was put into force in early 2022. Japan is one of the main trade partners of Cambodia.
For full article, please read here
Author: Chea vanyuth
News: Khmer Times
