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UNCTAD identifies 45,000 new products with export potential

Exporters wishing to gain insight into potential new products with higher export opportunities and the markets that offer growing trade opportunities can turn to a newly released catalog from the United Nations.
The Catalogue of Diversification Opportunities 2022—released for the first time by the United Nations Conference on Trade and Development (UNCTAD)—identifies over 45,000 new products with export potential that can help countries including the Philippines to diversify economic activity.
The new report released late last month aims to help countries harness technology and innovation for faster and more inclusive and sustainable economic growth. It informs governments, the private sector and other stakeholders that make up national innovation systems about possible product areas where technology can be used to diversify economies for structural transformation.
Research shows that structural transformation—the process whereby a sustained period of rising income and living standards coincides with changes in the distribution of economic activity—increases economic growth and competitiveness, moving jobs from low- to high-value-added products.
In other words, a country needs to be able to produce not only new products but also those that are more sophisticated, using higher skilled labor and more advanced technological applications, said UNCTAD.
This requires the diversification of economic activity towards more complex products. And development policies should be designed to facilitate this process.
“The ability to identify new industries with potential could greatly help innovation and industrial policies,” said Shamika Sirimanne, director of UNCTAD’s technology and logistics division.
“This handy catalogue identifies such industries based on a country’s productive structure and level of development, and the demand for these products in the global market,” Sirimanne added.
The catalogue presents information on four main areas:
 
• Basic statistics regarding diversification
• Potential new sectors for diversification considering all products, and the markets that offer growing export opportunities
• Potential new sectors for diversification considering only agri-business products
• The markets that offer growing export opportunities
Aside from the over 2,700-page full dialog, UNCTAD also provides useful country-focused fact sheets. In the case of the Philippines, the country currently has nearly 10,560 products with the potential to create 2,300 new products for diversification, according to the report. Of these new products, about 1,890 or 82% represent potentially more complex new products. More complex products have an estimated 57% export opportunity and a 32% import replacement opportunity.
Overall, the sector of organic chemicals has the biggest potential for the Philippines, accounting for a 15% share of export opportunities. This is followed by iron and steel; vehicles; machinery and mechanical appliances; inorganic chemicals, precious metal compound, isotopes; meat and edible meat offal; iron or steel; plastics; nickel; and electrical and electronic equipment.
China and the US lead the list of destination markets for potential new products, followed by Germany, France, UK, Italy, and the Netherlands. By region, Asia is the leading destination, followed by Europe and Northern America.
In the agri-business industry alone, meat and edible meat offal presents the biggest opportunity for local exporters, representing a huge 49% share of export potential. This is followed by fish, crustaceans, mollusks, aquatic invertebrates; oil seed, oleagic fruits, grain, seed, fruit; cereals; dairy products, eggs, honey, edible animal product; and milling products, malt, starches, inulin, wheat gluten.
The biggest export markets for new agri-business products are China, Germany, US, Finland, UK, Netherlands and France. In terms of regional markets, opportunities abound most in Asia, followed by Western Europe, Northern Europe and Northern America.
The Philippine fact sheet also contains a comprehensive list of specific new products with higher export opportunities and identifies the top three growing markets for each product. Diversification to meat and edible meat offal carries the biggest earnings potential. For example, frozen swine cuts list China, Australia and Chile as the top three growing markets and have an export opportunity of about US$3,594 million.
Visitors can visit https://unctad.org/news/unctad-outlines-new-productive-sectors-economic-diversification to access the UNCTAD’s full catalog, country fact sheets and full dataset of possible new exports.
 

Inflation, double days drive consumer goods sales in Asia

As consumers reel from inflationary impacts, online shopping in the Asia-Pacific region is only expected to keep growing next year and beyond, with price as the top factor in success in the e-commerce world, according to a consumer behavior analyst.
“The biggest trend we’re seeing across the e-commerce landscape in Asia-Pacific is all around price. A study in early 2022 indicated that the No.1 reason why consumers are shopping online is based on price,” said Vaughan Ryan, managing director for e-commerce in the Asia-Pacific.  
NielsenIQ data earlier this year showed that 58% of consumers chose pricing as their top factor when buying online, while 51% said they were swayed by promotions. In addition, availability, ratings, and delivery were also top of mind.  
Ryan noted that “double day sales” in particular, where mega sales are held on a particular day of the month such as 11.11 or 12.12, are attracting online shoppers in unprecedented droves.
“Imagine a world where 40% of your consumer goods sales occur on one day every month. Well, that is exactly what is happening throughout Asian markets with e-commerce sales. Double Days are causing mass surge sales and redefining the retail landscape across Asia,” said NielsenIQ.
With Double Day promotions, extraordinary uplifts across markets and categories have been recorded compared to the previous three weeks of sales. In 2021, NielsenIQ saw a +956% uplift in sales for facial cleansers on Double 11 in Singapore compared to the previous three weeks’ sales, while health supplements/vitamins saw +494% uplift in sales in Thailand on 10.10.
Not surprisingly therefore, e-commerce is now the second biggest channel across Asia-Pacific, just behind traditional shopping. And over the next five years, 50% of e-commerce global sales are expected to come from Asia, forecasts NielsenIQ.
“We have known for a while that Chinese and Korean consumers have embraced online sales, but other markets are catching up and we are already forecasting countries such as Australia, Singapore, and Taiwan will have over 20% of their consumer goods sales coming from online channels by 2025,” it said.
“Simply put, just one day a month—12 days per year—will determine if you fail or succeed. It is important to understand how e-commerce is shaping the overall consumer goods industry, so you can devise your business strategy to make the most of the shifting consumer mindset and purchase behavior,” said the report.
E-commerce service agency SmartOSC advises companies to regard these mega day sales as opening ladders of opportunities for brands of all sizes to increase revenue.
“By offering much lower prices, free delivery or free gifts, eCommerce marketplaces are yielding more profit from existing customers and attracting new customers who haven’t bought anything online—all at the same time,” it added.
This works because many people save their carts to check out on Mega Sale to enjoy attractive promotion campaigns. These people, thus, create a trend among their social circle about online buying, directly or indirectly making other “wandering” customers curious and easier to persuade to test the waters for the first time.
“Mega Sale Days are no longer just about launching promotions or trial periods to create a short-term sales peak. It has evolved into an opportunity to drive brand awareness and loyalty. This moment is a good time to experiment with different marketing tactics to aim for more market share either in the short or long term, depending on how brands want to balance ongoing activity with one-off events,” SmartOSC continued.
The Asia-Pacific e-commerce market is expected to grow with a compound annual growth rate (CAGR) of 10.24% during the forecast period of 2022-2027, fueled by increasing internet access, a growing middle class, and the efficient, effective, and quick distribution of goods, according to figures from Research and Markets.

Useful tips for trade exhibitors on calculating shipping cost

With more onsite trade fairs resuming post-COVID-19, entrepreneurs planning to participate for the first time need to consider various fees to calculate accurately the cost of shipping their products to the trade exhibition grounds and avoid hassles, according to a seasoned exporter.

Mary Mediatrix Villanueva, owner of Shelmed Cottage Treasures, shared some useful tips and reminders to help new participants compute the cost of joining international trade fairs. 

Citing an upcoming consumer goods fair in Germany slated for February next year as an example, Villanueva said exhibitors old and new alike must look at three major components of the shipping tariff, namely, origin charges, freight charges, and destination charges. It is also important to remember that the rates will vary depending on destination, weight and volume. 

Origin charges cover those on export formalities per document, certificate of identification processing per document, service charge per exhibitor, arrastre/wharfage, and trucking.

Freight charges include ocean freight, terminal handling charges, one bunker surcharge, seal or stamp fee, bill of lading/document fee, and peak season surcharge. A general rate increase may likewise be imposed with or without prior notice.

Destination charges encompass the cost of transportation to the fairgrounds, unloading of container to exhibition booth, terminal handling charge, document/terminal security surcharge, customs clearance per exhibitor, customs inspection per exhibitor, and administrative fee. 

Meanwhile, separate from these costs are charges for insurance, fumigation, display set-up/booth decoration, and supply of packing materials. 

Also excluded are duties/taxes plus 15% disbursement fee and customs bond fee of 0.75% of CIF (cost, insurance, and freight) value.

Other charges in the computation of export costing may include: 

•Additional customs tariff number
•Demurrage/detention
•Storage charges
•Surcharges for handling/delivery requests for Saturdays, Sundays and public holidays
•Additional service requests

Further, Villanueva advises exhibitors to keep tabs on the deadline for the submission of documents such as the final combined commercial invoice/packing list as well as the consignment deadline as indicated by the freight forwarder.

Exhibitors should accomplish two separate invoices and packing lists—one for the items for “permanent export” and one for items for “temporary export.” Items to be returned to the Philippines must have corresponding individual pictures for certificate of identification processing. 

At the same time, labels should be marked properly to indicate the name of exhibition, name of exhibitor, hall number, stand number, case numbers, dimensions, and gross weight/net weight.

For the issuance of an invoice, the exhibitor needs to indicate the invoice number, date of invoice, exhibitor’s name, correct hall and booth number, customs tariff code per product, realistic amount of value declaration, and the way of customs clearance.

Policy approaches to achieve sustainable growth via BCG economy model pushed

As climate change is worsening, Asia-Pacific Economic Cooperation’s (APEC) member economies can consider policy approaches to realize a sustainable future inspired by the bio-circular-green (BCG) economy, including fostering foreign linkages among firms to facilitate technological diffusion, a new policy brief by the APEC Policy Support Unit said.

Sylwyn Calizo Jr., a researcher at the APEC Policy Support Unit and author of the policy brief   “Charting New Pathways for APEC: A Sustainable Future Inspired by the Bio-Circular-Green (BCG) Economy”, said BCG economy integrates policies across the bioeconomy, the circular economy, and the green economy. By doing so, BCG economy solutions synergize the individual strengths of all three.

He said enacting policies that foster foreign linkages among firms will be useful for BCG economy solutions, especially for sectors with relatively low environmental technology diffusion rates –transport and mobility; and agriculture, food, and hospitality.

Citing earlier papers, Calizo said foreign linkages, such as foreign direct investment (FDI) and international trade, have been empirically observed to inspire product and process innovation, horizontal (within industry), and vertical (backward or upstream) technology spillovers, and technology transfers among firms.

He said foreign linkages also have the ability to provide access to the right technologies and to promote cooperation and coordination among firms.

Relaxing restrictions to FDI, such as market entry, ownership, and local content requirements, can be an important step to fostering these foreign linkages, Calizo said.

“Another key policy is to provide the necessary IPR (intellectual property rights) to strike a balance between protecting innovations and facilitating technology transfers. Of course, this should be done together with proper enforcement practices,” he added.

As compliance to IPR regulations could be costly, Calizo said regulators should be sensitive to domestic capacity to facilitate and to absorb innovations as technology diffusion will have “little impact” when those who need to receive it have insufficient financial and technical capacity to utilize those technologies.

Apart from this policy approach, Calizo also underscored the need for economies to provide investment opportunities to expand the renewable energy sector and niche markets, such as electric vehicles.

He said expansion can also be done by supporting startups through encouraging investments in strategically-located labs with access to fabrication devices.

Calizo identified other policy approaches to achieve sustainable growth through adopting the BCG economy model, including strengthening institutions through good governance and sound regulatory instruments, promoting practice-based participation to gain local community support, and supporting the expansion of BCG economy solutions in APEC.

He said policymakers can support key drivers –the regulatory environment, technology and innovation, and stakeholder participation–by addressing challenges.

Calizo said regulations on environmental services tend to be implemented by multiple agencies but without a clear coordinating strategy to prevent sectoral silos.

“What the BCG Economy can do is to strengthen institutions by promoting good governance. This could take the form of regular channels for coordination and idea-sharing across agencies, an economy-wide coordinating strategy, or sound regulatory instruments such as carbon budgeting and ex-ante environmental impact assessments, among others,” he added.

Home design, building trends for 2023 cited

Affordable small spaces with big impact given inflation’s economic realities and social media shareable ones will influence next year’s direction, according to the pioneer of online home design plans.

“While house design will be cozier, more relaxed and aesthetically pleasing, with inflation approaching 10% and higher in some categories, spending on large projects might be out of reach,” The Plan Collection said in a report published by the United States-based Furniture World Magazine.

The annual home design predictions and trends report said homeowners and designers are expected to get the “most bang for their buck” by pursuing smaller projects with bigger impact in 2023.

Owners are reimagining overlooked alcoves, nooks, and corners to be redesigned into compact, colorful and inviting spaces, it said.

“An unremarkable space below the stairs gets revamped with a collection of framed photographs, distinctive art, fabulous lighting and a vintage cabinet or a dead-end hallway transforms into a tranquil meditation space or cozy reading corner,” it added.

Amid affordability challenges, the report said the modern bungalow gets increased attention from millennials and empty nesters who want to downsize but with style.

“One-story modern bungalow designs are typically less expensive, offering curb appeal, high ceilings, contemporary open floor plans, larger bathrooms and a 21st-century exterior,” it said.

The Plan Collection said homeowners with fixed-rate mortgages may also rethink trading up to a larger home in 2023 and revisit home remodeling instead.

“Expect kitchen and bath solutions that are attractive and affordable while creating a larger sense of space to be especially popular. In the bath, floating sinks will be the center of attention, especially in small bathrooms and powder rooms. Floating sinks/vanities can make a small space feel larger and enhance the room with their clean lines and sleek look,” it said.

The trends report also revealed millennial preferences for aesthetic look for social media shareable photos or videos.

“The aesthetic look is favored by millennials and Generation Z for Instagram, TikTok-worthy posts as the design is visually appealing and reveals unique personality and features trendy ideas. This look can also be budget-friendly with creative design choices,” it said.

The report also highlighted preferences for accent walls refined to “zoom-ready” spaces, Mother Nature’s colors, herringbone patterns, and natural wood.

“Accent walls hastily created by many working from home during the pandemic branch out beyond the bookshelf or virtual background. Accent walls express more personality with materials like stone, brick, tile, wood and modern wallpaper,” it said.

The report said nature-inspired shades of green, blue, and lilac inspire visions of meadows filled with wildflowers, all surrounded by green trees and a clear blue sky.

“Whether on the wall, a pillow or on furnishings –these pops of color are a welcome addition to the whites, greys, and blacks so often used throughout the home,” it said.

The report further said homeowners embrace the herringbone pattern on wood and tile walls, doorways, and doors; while natural wood is not the only choice for floors. “Exterior wood trim, garage doors and framed entryways give homes a warm and welcoming feel. Stunning interior accents include wood beams, impressive wood highlights for vaulted ceilings or patterned accent walls,” it added.

Product opportunities for businesses in home cited

Trend forecaster WGSN has identified product opportunities for businesses in the home as it further evolves into a multipurpose place to live, work, rest, and play amid uncertainty in pandemic times.

“Higher living costs, recessionary markets, and the impact of global warming will all see us continue to do more –and expect more– from the spaces we live in,” WGSN president and chief executive officer Carla Buzasi said.

In a white paper, WGSN said rising living costs and fuel disruptions led people to prioritize energy efficiency at home.

“As fuel insecurity, economic uncertainty and climate unpredictability continue, businesses that can help people become more self-reliant will have a clear appeal,” it said.

“This could be as simple as offering kits for growing food at home, or it could take the form of emergency packs and go-to bags, ‘prepare-wear’ apparel for changeable conditions, or generators and apps that can detect storms and store power in case of outages or labor strikes,” the report added.

The WGSN said smart tech is becoming proactive and it has the potential to transform every element of the home, whether it be through alarm systems that can distinguish homeowners from intruders; gardening systems that can monitor the weather to allocate water more efficiently; or mattresses that can track one’s sleep to offer better and more responsive support.

“We could also see smart innovations scaled up to a macro level (such as street lights activated by smartphones) as governments upgrade infrastructure to accommodate megacities,” it said.

UBS has predicted that Asia’s smart city market could reach $800 billion by 2025.

“Beyond enhancing comfort, convenience and safety, smart innovations will also change how we relate to tech as it becomes integrated into everyday life, whether through personal robots or more intelligent, conversational, human-like digital assistants,” it added.

To create more sustainable products, the WGSN said one of the biggest shifts happening now is a focus on not only doing less harm to the planet, but doing more good.

“For brands, it will be important to tell the story of how you are actively helping people and the planet, and offer products and services that will appeal to more resourceful lifestyles amid financial uncertainty, such as compost kits, mending and making services to extend a product’s lifespan, and smarter storage innovations to prevent food waste,” it said.

The report also underscored the rise of clean eating, clean beauty, and clean packaging or no packaging at all.

It said even traditional cleaning products are being repositioned as a form of self-care, with simpler branding and wellness-focused formulations.

“We have become more discerning about what we surround ourselves with, and whether it serves us and the planet for the long term, so brands will need to be crystal clear about the cleanliness of their ingredients, materials and processes in order to win consumer trust in 2025,” the white paper added.

The WGSN said there are also product opportunities across industries in hybrid homes as people will be replacing makeshift home offices with more long-term and comfortable set-ups; and amid an economic downturn, more of them will be planning their next move or taking up side hustles from the kitchen table.

“In 2025, there will be a clear path to purchase for products and services that can help people at home stay focused, prepare quick meals, keep fit, look their best in Zoom meetings, and switch between work and non-work modes,” it said.

The report added there are also opportunities throughout the home to enhance healing and well-being –from anxiety-reducing food and drink to calming bathing rituals.

PH SMEs urged to access learning platform to grow businesses

Filipino small and medium enterprises (SMEs) can access a learning platform in which the world’s top companies and learning providers share their knowledge on ways to grow their businesses.

Upgraded ASEAN SME Academy (Academy) https://asean-sme-academy.org, a self-help and self-paced free online learning tool for the Association of Southeast Asian Nations (ASEAN), offers over 110 courses from 21 top United States companies.

“The Academy contains business information that is particularly relevant for regional SMEs, providing access to a curated directory of service providers to whom they can reach out for financial advice, corporate programs, and networking,” it said.

These are in areas such as finance and accounting, management, marketing, operations, technology, and trade and logistics.

The core of the Academy is a series of training materials for SMEs from Fortune 500 companies while it incorporates those focused on SMEs from regional firms and international organizations.

“This curated set of courses is part of a larger program to provide training and mentorship to enhance ASEAN SME’s access to financial products, regional and international markets, information and advisory services, and technology and innovation,” it added.

It also provides a calendar of events to give users more information about training from the business alliance and business development services in the region.

Users of the Academy will develop a user profile when first logging on to facilitate users’ access to materials specific to their industry and links to existing business support.

The information and resources will be selectively translated into the local languages to expand the group of firms that can benefit from the Academy.

 

Source: PHILEXPORT News and Features

Image by Freepik

Singapore replaces China as Cambodia’s top FDI source

Singapore has replaced China as the leading investing country in Cambodia in 2021, accounting for six projects, or 40 percent of Cambodia’s inward FDI, revealed the Investment Monitor’s ‘2022 Inward FDI Performance Index’, released recently.

China, which held the top position in both 2019 and 2020, dropped to joint second, alongside the US, recording three projects. Myanmar, Hong Kong and the Netherlands made up the remaining investments.

According to a report by Investment Monitor, titled ‘Cambodia punches above its weight in attracting FDI,’ the Kingdom is also the third most attractive investment location for foreign money in Asia Pacific after Singapore and New Zealand.

“Cambodia is a lesser-known FDI location in South East Asia, must compete against the likes of Singapore and Vietnam to attract inward investment. Despite the stiff competition it has managed to win more than its fair share of greenfield projects,” the report said.

The Index measures a country’s inward investment levels against its gross domestic product (GDP) using GlobalData’s FDI Projects Database, which tracks greenfield projects. “This means that Cambodia, with a score of 3.26, received more than three times its fair share of inward greenfield FDI compared with what could be expected given its level of GDP. In that regard, Cambodia is punching well above its weight in FDI terms,” the report said.

According to it, FDI peaked in Cambodia in 2019, with 43 projects. In terms of capital investment, this represented a 15.5 percent increase over 2018 figures, to $3.7 billion, said the UN Conference on Trade and Development’s 2020 World Investment Report.

For full article, please read here


Author: Manoj Mathew

Source: Khmer Times


Investing in staff amid a volatile economy is the best bet for these S’pore firms

As technology, sustainability and other major global shifts fundamentally reshape the way we operate, how can businesses enthuse and empower their workers with the skills to stay relevant and competitive?

Staff retraining is the modern mantra – and enterprises can seek guidance from refreshed Industry Transformation Maps rolled out by Singapore's Future Economy Council. The maps help firms across 23 sectors to equip employees with skills for greater value creation.

Two companies that have invested time and resources into cultivating their staff are now reaping outsized rewards. Their key message: To plug the labour drain, retain & retrain.

Read more here.

ASEAN for Business Bulletin Oct 2022: Tapping the Opportunity of Circular Economy

ASEAN is moving toward realising circular economy through the adoption of the Framework of Circular Economy for the ASEAN in Economic Community in 2021 and the rolling out of its implementation plan and work programme in 2023. This is expected to enhance ASEAN’s long-term economic resilience and unlock opportunities brought by the implementation of circular economy.

The ASEAN Secretariat spoke with Kunal Narula, Group CEO at Mercantile Pacific Asia (Mercantile), to further encapsulate the private sector’s perspective and experience in growing business in the area of circular economy. 

Read this bulletin here.  

Malaysian Furniture Council: Furniture exports up 18% to RM8.5 billion

KUALA LUMPUR (Oct 27): Malaysia's January-July 2022 furniture exports have recorded an increase versus a year ago despite the many challenges facing the industry, the Malaysian Furniture Council (MFC) said.

Its president Khoo Yeow Chong told Bernama at the Reka Interiors Exhibition (RiX) 2022 at the Kuala Lumpur Convention Centre on Thursday that total overall furniture exports, including wooden furniture, stood at RM8.5 billion against RM7.2 billion for the same period in 2021.

“We would like to thank the Malaysia External Trade Development Corporation (MATRADE) and the Malaysian Timber Council (MTC) for actively promoting Malaysian furniture products around the globe,” he said.

On a similar note, Malaysian Timber Council (MTC) chief operations officer Noraihan Abdul Rahman said that wooden furniture exports for the period amounted to RM6.93 billion, a 14.4% increase from the same period last year.

“The strengthening of the US dollar also contributed to the increase in export value,” she said.

At the RiX event, MTC, MFC and the Malaysian Institute of Interior Designers (MIID) also announced the completion of TIMB3R Design Incubator Programme’s first and second editions, a first-of-its-kind furniture and timber products design and manufacturing initiative.

The programme aims to grow Malaysia’s timber and furniture sectors and to strategically strengthen the design and manufacturing value chains to serve the international market.

The six-month programme connects participating designers with manufacturers to conceptualise, design, and create one commercially viable furniture and timber product for the global market.

Final products will premiere at the Malaysia Export Furniture Exhibition (EFE) 2023, one of the largest international furniture and furnishing fairs in Southeast Asia.

 Source:  The Edge Market

Malaysia keeps CPO export tax at 8% in November

KUALA LUMPUR (Oct 14): Price for crude palm oil (CPO) has been gazetted at RM3,575.80 a ton, which incurs the maximum export tax of 8%, according to a statement from the customs department posted on the Malaysian Palm Oil Board's website.

The CPO export tax has been kept at 8% since January 2021.

Malaysia's CPO export duty structure starts at 3% when free-on-board prices for CPO are in the RM2,250-RM2,400 per ton range.

The maximum tax rate is 8% when CPO prices are above RM3,450 per ton.

Source: The Edge Market

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