The first shipments arrived in Laos this week after an MoU was signed between the Vientiane Petroleum State Enterprise, SINOPEC Hong Kong, and SINOLAO on 26 May, to import fuel from China.

The MoU which was signed between the three parties laid out the principles of cooperation in importing fuel for wholesale and retail distribution in Laos.

After SINOLAO Investment Company complied with the aforementioned MoU, in coordination with Sinopec Hong Kong, the first consignment of fuel was delivered on 27 June. 

As listed in the MoU, SINOPEC Hong Kong will import and deliver various types of fuel to Laos in strict accordance with the specified quantities, listed in the contract.

On Tuesday, SINOPEC Hong Kong delivered the fuel to Vientiane State Petroleum Corporation and SINOLAO Investment at the Boten international border crossing in Luang Namtha province. 

Representatives from SINOLAO Investment Limited, SINOPEC Hong Kong, the General Department of the Army, and employees from the related organizations were present during the arrival of the first fuel tankers.

Vientiane Petroleum State Enterprise is managed by the Lao Ministry of National Security.

By: Jonathan Meadley 

Source: The Laotian Times

The Lao government has expressed an interest to attract more domestic and international investments to relieve the country’s financial woes during the ongoing 5th Ordinary Session of the 9th National Assembly Legislature.

Prime Minister Sonexay Siphandone revealed at the NA Session on Monday that the total investment value in Laos will reach LAK 159 trillion (over USD 8 million) in the first six months of this year.

Around 8,673 projects with a total value of about LAK 155 trillion (about USD 9 billion) were approved in the first five months of this year, while the SEZs drew more than 42 organizations, including Lao, foreign and joint venture companies until May.

Minister of Planning and Investment, Mr. Khamjane Vongphosy, said that the Lao government is also seeking to improve regulations and mechanisms to make investment management more effective by implementing the Law on Investment Promotion.

“We are also seeking to improve the regulations governing Public-Private Partnership investment to reduce the burden on the government’s budget,” said Mr. Khamjane.

According to the minister, the government plans to increase investment by attracting more Belt and Road Initiative projects, alongside those that could be implemented at provincial levels.

Amid pertinent challenges like soaring inflation, high levels of foreign debt, and low foreign currency reserves, the economy of Laos is anticipated to expand by 4.9% in the second half of the year. The GDP of Laos is projected to reach LAK 118 trillion (USD 6.1 billion) by the end of 2023.

By Manyphone Vongphachanh

Source: The Laotian Times 

BANDAR SERI BEGAWAN – Brunei and Australia have agreed to elevate ties to a “comprehensive partnership”, pledging to deepen cooperation in trade, investment, and maritime security.

The new partnership will also see the two countries work together in new areas including cybersecurity, food security and climate change.

His Majesty Sultan Haji Hassanal Bolkiah and Australian Prime Minister Anthony Albanese met in Canberra on Monday to formalise the process by signing a joint declaration. “The partnership offers a chance to cooperate on the net-zero transition in the region, strengthen trade ties, and deepen cooperation on defence and security,” Albanese said. “It affirms our shared support for ASEAN as the region’s central platform for open, transparent and rules-based dialogue.”

According to the Brunei government, a plan of action will be developed to chart the strategic direction of ties in the coming years.

Source: The Scoop

Read the full article here

Youth should be equipped with skills and a mindset to prepare them for the future of employment. They should also take up entrepreneurship to open up economic opportunities, said Minister of Culture, Youth and Sports Dato Seri Setia Awang Haji Nazmi bin Haji Mohamad during the 12th ASEAN Ministerial Meeting on Youth (AMMY XII) held via video conference yesterday.

He also said the Bruneian authorities have been facilitating direct engagement between policymakers and youth through dialogues, survey, town hall sessions, National Youth Congress and Brunei Young Leaders Convention

The minister said the Brunei Darussalam Mental Health Action Plan 2022-2025’s Strategy 1 emphasised on the development of work-life-balance policy for all workplaces as well as increasing whole-of-nation and community awareness on mental health issues.

Dato Seri Setia Awang Haji Nazmi also emphasised that ASEAN initiatives and programmes should work towards future-ready youth in an inclusive ecosystem. He urged stronger collaboration among agencies, partners and youth representatives to identify and address issues while also incorporating feasible policies that add value to work plans and youth programmes.

Malaysian Deputy Minister of Youth and Sports Adam Adli bin Abdul Halim chaired the meeting. ASEAN ministers responsible for youth affairs and their representatives as well as the Deputy-Secretary General of ASEAN Socio-Cultural Community (ASCC) were present.

Deeply rooted as part of local society, MSMEs are frequently regarded as vital enablers of socio-economic development. In ASEAN, MSMEs account for 85% of employment and 44.8% of the region’s GDP. They provide primary sources of income and livelihoods for a significant number of individuals and households. Through partnerships with other local businesses, MSMEs are an integral part of the value chain, enabling access to a variety of products for their customers and servicing the local community.

Due to their lean structure and versatile business model, MSMEs have the ability to embrace new developments, such as the circular economy and digital technologies. In the last three years, we witnessed many businesses, particularly MSMEs, rapidly adopting innovative technologies and practices to remain relevant and competitive.

Nevertheless, the transformation of MSMEs is not without challenges. Shifting in business approach and mindset of MSMEs could be one of the first and foremost obstacles. The transformation involves substantial investment in research and development to redesign products and processes. Furthermore, adopting a new business model often necessitates changes in the supply chain and partnerships with suppliers. Ultimately, these alterations would have financial and operational implications. Most MSMEs often struggle with limited capital and constrained budgets. With the scarcity of resources available at their disposal, it becomes even more critical for MSMEs to embrace circularity in ensuring their survival. Therein lies the need to facilitate and support their adoption of sustainability practices which in the end, will benefit all.  

The Specialty Coffee Association’s annual “World of Coffee” (WOC) exhibition, a highly anticipated event for coffee industry professionals worldwide, will be held from 22–24 June 2023 in Athens, Greece.

This presents a significant opportunity for Lao coffee producers to gain exposure in the European market.

In recent years, Lao coffee has gained recognition as a specialty coffee origin, thanks to its unique geographical conditions and traditional farming practices that contribute to the production of high-quality beans with distinct flavors. The WOC Athens exhibition will provide Lao coffee producers with a platform to bring their specialty coffee to industry professionals and coffee enthusiasts from around the globe.

Five prominent Lao coffee companies, namely Comma Coffee, Mueang Xieng Coffee, Nambeng Coffee Group, Phouphieng Paksong, and Vanmai Coffee, have been selected to participate in the WOC exhibition. These companies were chosen based on their involvement in the Lao Annual Green Coffee Competition held in March 2023.

The ARISE Plus, UK Trade Partnerships (UKTP), and Winrock CLEAN projects are collaborating to support the participation of these companies in the exhibition, aiming to promote the Lao coffee industry as a whole, along with the individual businesses exhibiting.

“The Lao Coffee Association is delighted to reaffirm our partnership with ARISE Plus, the UKTP, and the CLEAN projects in a joint effort to bolster the Lao coffee industry. We are proud to participate in Europe’s largest coffee trade show, which presents an unparalleled opportunity for Lao coffee producers to showcase their products and reach new markets. This collaboration is a testament to our unwavering commitment to expanding Lao Coffee’s visibility and marketability. We hope to see the positive outcomes of this collaboration and remain steadfast in our resolve to fortify the Lao coffee sector,” said Bounheuang Carol Litdang, President of the Lao Coffee Association (LCA).

WOC Athens 2023 is Europe’s premier coffee event, providing Lao coffee companies with a unique platform to showcase their specialty coffee offerings to industry professionals and coffee enthusiasts from around the world. Participation in this event allows Lao coffee producers to gain valuable market exposure and insights into the European specialty coffee industry.

“The ITC Arise Plus and the UKTP projects are delighted to be with our partners, working with and supporting the Lao coffee industry and coffee businesses at the World of Coffee in Athens. Their continuous presence at this flagship event will enhance their credibility and trustworthiness in the eyes of the European coffee market and community,” said Nick Watson, Agribusiness Adviser, International Trade Centre.

With over 300 exhibitors and an expected attendance of more than 10,000 from 80 nations, WOC Athens 2023 offers an unparalleled opportunity to connect with potential buyers and importers. Lao coffee producers can showcase their distinctive coffee offerings, share their stories, and promote Laos as a specialty coffee origin.

Read more at The Laotian Times 

Thai retailers should adapt their businesses and tap into the fast-growing Vietnam market, which shows a highly promising growth trend, Thailand’s Department of International Trade Promotion (DITP) has said.

Vietnam’s retail sales are estimated to reach up to US$3.5 trillion by 2068.

Retailers should utilise online channels to target the young consumer group. By leveraging online platforms, Thai retailers can effectively reach and engage with the young consumer demographic in Vietnam. This strategy will enable them to capitalise on the significant growth potential of the Vietnamese market, the department said.

Phusit Ratanakul Sereroengrit, the department director-general, revealed that they have looked into the potential for expanding the Thai retail market in Vietnam by using online platforms. Thailand’s Trade Ambassador in Ho Chi Minh City has been providing imputs on this matter.

Vietnam’s retail market is expected to reach $350 billion in 2025, which will account for 59% of total domestic product sales.

Retailers in Vietnam have adjusted their distribution networks domestically and improved them for exports. They have also invested in e-commerce to accommodate the expanding consumer group of young people, who account for over 50% of the population of nearly 100 million people.

Currently, retailers in Vietnam have transitioned from traditional to modern retail formats, particularly investing in networked stores and supermarkets. They are also collaborating to develop new retail formats, such as online platforms, to create favourable conditions for retailers and increase sales opportunities, the department chief said.

Thai retailers investing in Vietnam must adapt their business models and focus on developing clean and environmentally friendly production, as well as aim for a circular economy and green labelling. These efforts will contribute to their growth in the Vietnamese market, Phusit said.

Thai retailers should also give attention to social media platforms in Vietnam, such as selling their products through Facebook Live and TikTok, making it easier to reach Vietnamese customers.

E-commerce is an interesting channel for businesses looking to expand their trade into the Vietnamese market, as it requires lower costs compared to opening physical stores and also allows access to the target consumers, he said. However, the government has been making improvements to laws related to online commerce. Businesses seeking to enter the online market in Vietnam should study the laws and regulations related to e-commerce in the country, he said.

The department's activities in Vietnam include promoting Thai product sales in collaboration with retail chains in Vietnam, such as Go! and Tops Market, from August 1-14. Additionally, the Office of Trade Promotion in Bangkok will participate in delivering lectures on the 5th batch of the ITP programme, "Sustainable Growth for Exporters”, which aims to promote sustainable growth for Thai SMEs in collaboration with Siam Commercial Bank.

 

Source THE NATION THAILAND

 

Chiang Mai province is preparing to host its inaugural halal food festival next month, with the aim of enticing Muslim tourists from the Middle East. The festival, themed "Unseen Chiang Mai," will feature halal delicacies from all four regions of the country.

The halal food festival will also serve as a precursor to Chiang Mai’s international food festival, scheduled for July and August. These months were strategically chosen to align with the period when a significant number of Middle East tourists visit Chiang Mai. The city hopes to appeal to these high-spending visitors known for their long stays in Thailand.

Chiang Mai Governor Nirat Pongsitthavorn expressed his confidence that the halal food festival will become an annual event on Chiang Mai’s tourism calendar. Meanwhile, Supamitr Kijjapipat, President of the Chiang Mai Tourism Business Association, anticipates that the festival, which will feature over 20 halal-certified restaurants, will stimulate the local economy and attract both Thai and foreign tourists.

In addition to the food festival, Chiang Mai is actively promoting various destinations, including Chiang Dao, Mae On, Wiang Haeng, Mae Cham, and Mae Kwang, under the "Unseen Chiang Mai" theme from July to September. The governor emphasized that promotional activities will showcase the region’s lush natural surroundings during the wet season, as well as its diverse local culture, traditions, and ethnic groups.

 

Source : NATIONAL NEWS BUREAU OF THAILAND

The Bank of Thailand expects GDP growth to exceed its forecast, with the economic policies of the new government driving expansion alongside tourism and consumption growth.

At its meeting last month, the central bank's Monetary Policy Committee (MPC) said it believed the Thai economy should continue to expand with some inflationary risks.

Tourism and private consumption would provide the main impetus for economic expansion, with goods exports likely to recover in the second half of 2023.

China's economic and policy developments would be the key determinants of export and tourism trajectories, said the MPC.

"Upside factors for growth include foreign tourist arrivals and the new government's fiscal and economic policies, which could lead to stronger than expected domestic demand, especially in 2024," according to the central bank's statement yesterday.

The Bank of Thailand projects GDP growth of 3.6% and 3.8% in 2023 and 2024, respectively.

The tourism sector should continue its robust recovery, with increased foreign arrivals across most nationalities, said the bank.

The foreign arrival projection was upgraded to 29 million for 2023 and 35.5 million for 2024, up from 28 million and 35 million in a March outlook.

Private consumption should gain further traction, propelled by improvements in overall employment and labour income, notably in the services sector and among self-employed workers benefiting directly from the tourism recovery, said the bank's report.

However, inflation risks involve two factors.

First, demand pressures could mount given the backdrop of expanding economic activities, particularly if the tourism recovery or fiscal stimulus under the new government's economic policies prove stronger than expected, said the bank.

Second, the pass-through of costs absorbed by producers in the past could increase inflationary pressures.

The MPC acknowledged that future inflation dynamics would be contingent in part on new government policies.

The possibility of higher minimum wages could lead to higher prices of goods.

Indexing the minimum wage to inflation could further amplify the pressure on labour costs and goods prices, possibly giving rise to a wage-price spiral phenomenon, with implications for long-term price stability, said the bank.

Such risks should be limited by several attributes of the Thai labour market: high labour market flexibility given the supply of foreign workers and labour mobility; the low bargaining power of Thai workers compared with other countries; the low share of labour costs, at 15% of total production costs for an average business, which limits the scope for labour cost pass-through; and a relatively small share of wage earners, at 45% of the total labour force, compared with 90% in advanced economies such as the US, Germany, and the UK.

As a result, the impact of a minimum wage increase on aggregate demand and risk of a wage-price spiral would be limited, relative to other countries, said the central bank.

The MPC plans to monitor the impact of the new government's policies and assess their inflationary implications, including wages, firms' price-setting behaviour, and public medium-term inflation expectations, according to the central bank's policy statement.

The central bank expects headline inflation of 2.5% and 2.4% in 2023 and 2024, respectively.

Core inflation is projected to stabilise at 2% in 2023 and 2024.

 

Source Bangkok Post

Sri Lanka and Thailand could sign a free trade agreement (FTA) by March, a top official of the Indian Ocean nation told Reuters on Wednesday, as it attempts to rebuild its crisis-stricken economy.

The two nations restarted deal negotiations in January, months after a severe financial crisis engulfed Sri Lanka, as its foreign exchange reserves fell to a record low.

"Both sides are enthusiastic and there is strong political will," Sri Lanka's chief FTA negotiator, K.J. Weerasinghe, told Reuters.

"There will be several more rounds of talks, but I am confident we can conclude the agreement for signature by March 2024."

A Thai delegation is expected to visit Colombo from June 26 to 28 for the next round of talks, covering goods, customs cooperation, investment, dispute settlement and services, he added.

Two-way trade was about $460 million in 2021, Sri Lankan central bank data shows. Sri Lanka exports mainly tea and precious stones to Thailand, from which it imports electronic equipment, food, rubber, plastics and pharmaceuticals.

 

Source : REUTERS

Cambodia and Thailand on Tuesday launched the second phase of cross-border QR code payments, which will allow Thai nationals to shop in Cambodia using the Thai currency baht.

Chea Chanto, governor of the National Bank of Cambodia (NBC) and Sethaput Suthiwartnarueput, visiting governor of the Bank of Thailand, presided over the launching event in Phnom Penh, said a NBC's press statement.

The launch of cross-border QR code payments "aims to promote the usage of local currencies and financial inclusion, facilitate cross border trade activities, and boost tourism in both countries", the statement said.

"As the first phase of this project, launched in 2020, allowed Cambodians to be able to pay for goods or services through mobile banking application by scanning QR code at retail merchants in Thailand and vice versa on the second phase starting from June 6, 2023 onward," it added.

The two neighboring countries' central banks have worked together since 2018 to develop a QR code payment app in order to allow people to shop in each other's countries using the currency of their own country.

With the app, Cambodians will be able to use riel to purchase goods in Thailand, while Thais travelling in Cambodia will be able to pay in baht. The users of the QR code payment system will be required to have a bank account in their local currency.

Cambodia's official figures show that there are currently more than 1 million Cambodian migrant workers in Thailand, and that more than 424,000 Thais visited Cambodia in the first three months of 2023.

 

Source Xinhua

The new coalition government is being urged to implement a consistent policy to support Thailand's beauty and wellness market over the long term.

Ketmanee Lertkitcha, chairwoman of the health, wellness and beauty industry cluster of the Federation of Thai Industries, said a national strategy needs to be established by the new government to promote the beauty industry, which alongside tourism contributes a vital portion of the country's income.

To ensure sustained growth of the country's beauty and wellness market, Mrs Ketmanee suggested engaging in soft power activities and identifying prime locations for local small businesses to showcase their health and beauty products. She used South Korea as a prime example of a country that has successfully supported its beauty industry.

Mrs Ketmanee said the global wellness economy was valued at 145 trillion baht in 2020 and is projected to reach 230 trillion by 2025. Thailand's wellness economy was valued at around 1 trillion baht in 2021.

Within the health, wellness and beauty industry, personal care and beauty accounted for 30%, while healthy eating, nutrition and weight loss represented 25%. Wellness tourism contributed 12%, while physical activity and traditional and complementary medicine each accounted for 10%. Public health, prevention, and personalised medicine represented 6%, while spas accounted for 4% of the industry.

Regarding the beauty market, Mrs Ketmanee, said the value of the global market last year was 648 billion baht, while Thailand's beauty market was valued at 246 billion baht.

She said the compound annual growth rate for Thailand's beauty market is 9.22%.

The growth of the local cosmetics market was largely driven by e-commerce, which captured 28% of the market and posted 8.9% growth in 2022. The e-commerce segment of the beauty market is projected to grow 13% this year.

Angel Fu, event director at Informa Markets, said Thailand has emerged as the fastest-growing beauty market in Southeast Asia. Numerous major international brands have already made investments in the Thai cosmetics market, said Ms Fu.

"Thailand has a lot of international brands with production capacity here, given the country's low production costs. Thailand also has a lot of original equipment manufacturers [OEMs] producing here," she said.

Francesca Donati, head of international marketing for Asia at BolognaFiere Cosmoprof, said Thailand holds a strategic position as a gateway to Asean.

She said the country's cosmetics sector accounts for 25% of the entire Asean region.

"Thailand has evolved into a prominent production centre for numerous international brands, offering products of exceptional quality at affordable prices. Moreover, Thailand boasts the largest beauty community of local OEMs/ODMs [original design manufacturers]," said Ms Donati, adding that Thailand is a vital hub for sourcing natural ingredients and raw materials in the beauty industry.

 

Bangkok Post