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ASEAN more attractive for FDI in mfg services

MANILA, Philippines — The Association of Southeast Asian Nations (ASEAN), which is expected to be among the main growth engines in Asia Pacific in the next decade, is expected to become a more attractive destination for foreign direct investments (FDI) in manufacturing and services, according to S&P Global Market Intelligence.
 
Rajiv Biswas, S&P chief economist for Asia-Pacific, said in a report the ASEAN is expected to continue to be one of the fastest growing regions of the world economy, and one of the three main growth drivers of Asia-Pacific, along with mainland China and India, over the next decade.
 
He said total ASEAN gross domestic product is forecast to more than double to $6.4 trillion by 2030 from $3 trillion in 2020.
 
“The rapidly growing size of the ASEAN consumer market will become an increasingly important magnet for FDI inflows as multinationals establish manufacturing and services capacity in Southeast Asia to tap the domestic demand in the region,” Biswas said.
 
He said FDI inflows into ASEAN reached a record high of $174 billion last year, the same as the pre-pandemic high seen in 2019.
 
Contributing to the high level of FDI to the ASEAN last year are inflows to electronics manufacturing and projects related to electric vehicles.
 
Biswas said the electronics industry is an important part of the manufacturing export sectors of ASEAN economies like the Philippines, Singapore, Malaysia, Thailand, and Vietnam.
 
“Consequently these countries have been attracting new FDI inflows into the electronics sector as multinationals try to expand their production capacity given strong growth in global electronics demand since 2020,” he said.
 
In the near-term, he said FDI inflows to the ASEAN are expected to be supported by the resilience of the region to the slowdown in the US and European Union this year.
 
Citing the latest S&P Global Purchasing Manager’s Index data, he said manufacturing conditions across the ASEAN improved at the quickest pace for nearly a year in September, with firms seeing higher increases in output, new orders, purchasing activity and employment, while business confidence remained historically strong.
 
The headline ASEAN Manufacturing PMI rose to 53.5 in September from 52.3 percent in August, reflecting an improvement in the health of the region’s manufacturing sector for the 12th successive month.
 
Over the medium-to-long term, Biswas said the diversification of supply chains will be supporting the FDI inflows to ASEAN.
 
To reduce vulnerability to global supply chain disruptions due to natural disasters and the coronavirus pandemic, he said multinationals are focused on diversifying supply chains.
 
With the Russia-Ukraine war also leading to supply chain problems and disruption of pipeline gas supplies for the EU, he said this may reinforce diversification of manufacturing supply chains toward the ASEAN region.
 
In addition, he said ASEAN nations are expected to benefit from their membership in the Regional Comprehensive Economic Partnership (RCEP) agreement which seeks to boost trade and investment flows among Southeast Asian countries and trade partners China, Japan, South Korea, Australia and New Zealand through further reduction in tariff barriers and higher quality rules for trade in services.
 
“Following considerable disruption to Asia-Pacific trade flows during 2018-2021 due to the US-China trade war and the impact of the pandemic, the implementation of RCEP will help to further reduce barriers to regional trade flows within the Asia-Pacific region over the medium to long-term,” he said.
 
He said one important advantage of the RCEP is its very favorable rules of origin treatment, which is seen to help build manufacturing supply chains within the RCEP region across different countries.
 
“This will help to attract FDI flows for a wide range of manufacturing and infrastructure projects into the RCEP member nations,” he said.
 
While the Philippines is among the countries that signed the RCEP, it has yet to complete the ratification process for the agreement.
 
During the previous administration, the Senate did not vote upon the resolution to confirm the RCEP amid concerns on the agreement’s impact on the agriculture sector.
 
The Department of Trade and Industry and National Economic and Development Authority are pushing for the immediate ratification of the RCEP to allow the country to attract more investments.
 
Source: PhilStar

BOC issues guidelines on e-exchange of ACDDs

The Bureau of Customs (BOC) has issued guidelines for electronic exchanges of Association of Southeast Asian Nations customs declaration documents (ACDDs).
 
Customs Memorandum Order No. 26-2022, which takes effect on October 5, covers electronic exchanges of customs declaration documents using BOC’s ACDD operations portal in line with the Protocol on the Legal Framework to Implement the ASEAN Single Window (ASW).
 
The CMO provides the procedures that BOC authorized personnel and stakeholders must follow in using the portal.
 
The ACDD is a multipurpose document that facilitates exchange of export declaration information among ASEAN members. It includes 15 mandatory information parameters extracted from the export declaration.
 
The portal will facilitate the exchange of incoming and outgoing ACDD messages through TradeNet and/or the Philippine ASW gateway and ASW gateway of other ASEAN members.
 
The Philippines joined the live electronic exchange of ACDD this year. Cambodia, Myanmar, Thailand, Malaysia, Singapore, Indonesia, and Brunei. Lao People’s Democratic Republic, or Laos, and Vietnam are expected to join the live operation this year.
 
BOC had said earlier full implementation of the ACDD exchange will start when the relevant CMO is issued.
 
Exporters must register on the ACDD portal (http://acdd.customs.gov.ph). The online registration form will be linked to BOC’s profile data. The exporter’s account will be verified through the client profile registration system (CPRS). Only exporters with active CPRS can register and use the portal.
 
Once registration has been verified, the exporter may proceed with creating an account. Registered exporters will be able to view, track status, print and generate a report for all outbound ACDD messages sent under their accounts.
 
The portal will facilitate the sending of the outbound ACDD messages to the importing ASEAN members through the Philippine gateway.
 
The tracking functionality of the portal will inform the exporting country that the message has been received and acknowledged by the importing ASEAN member-state.
 
The portal will also receive ACDD messages from other ASEAN member states and store these in the portal database. The inbound message will complement BOC’s risk management activity and help reduce customs clearance time for import consignments, CMO 26-2022 said.
 
Until such time that a TradeNet ACDD module is implemented, exchange of information in the Philippine ASW gateway business-to-business integration will be made using the portal.
 
TradeNet is the country’s national single window, which is a prerequisite to connect to the ASW.
 
The ASW is a regional initiative to speed up cargo clearance and promote regional economic integration by enabling the electronic exchange of border documents among the 10 ASEAN member-states.
 
In December 2020, Cambodia, Myanmar, and Singapore started exchanging the ACDD through the ASW. Malaysia and Thailand followed on March 31, 2021.
 
In August 2021, BOC said it completed the bidding for its ACDD System. When implemented, the system would enable the Philippines to electronically exchange ACDD on the ASW and help the country to digitalize trade processes and maximize the potential of intra-ASEAN trade.
 
The ASW also allows the electronic exchange of trade documents such as the electronic Certificate of Origin Form D under the ASEAN Trade in Goods Agreement, and the electronic phytosanitary and animal health certificates that are planned to be exchanged soon.
 
Currently, electronic certificates of origin can be exchanged by Philippine exporters with other ASEAN members. BOC and other government agencies are also working to onboard all trade regulatory government agencies to TradeNet this year to allow online application for import and export permits.
 
Earlier, BOC said 21 such agency areas had already onboarded TradeNet, while the remaining more than 50 will be onboarded this year. — Roumina Pablo
 

Cambodian exports to Canada soar as Kingdom weighs free trade deal

Cambodia's January-August exports to and trade surplus with Canada both rose by around one-quarter on-year, a pattern that is expected to continue, driven by preferential commercial arrangements and initiatives spearheaded by the representative offices of the apex Cambodian trade body, as the Kingdom pushes for a lucrative free trade pact with the world’s ninth largest economy.

In the first eight months of 2022, bilateral trade between Cambodia and Canada came to $804.406 million, up 22.61 per cent year-on-year, with the Kingdom’s exports worth $780.188 million, up 24.03 per cent, and imports totalling $24.217 million, down 10.4 per cent, according to the General Department of Customs and Excise of Cambodia (GDCE).

The Kingdom’s trade surplus with Canada for the period expanded by 25.58 per cent on a yearly basis, from $602.001 million to $755.971 million. As the fifth biggest buyer of Cambodian goods over the first eight months of the year – after the US, Vietnam, China and Japan – Canada accounted for a 4.99 per cent share.

Speaking to The Post on October 3, Cambodia Chamber of Commerce (CCC) vice-president Lim Heng commented that, prior to Covid-19, the Kingdom’s exports to Canada had been on a years-long upward trajectory.

Heng ascribed this year’s export growth momentum on the Canadian market, and its expected continuation for the foreseeable future, to improved diplomatic relations between the two countries, benefits for certain Cambodian goods under Canada’s General Preferential Tariff (GPT) regime, and the existing and subsequent CCC representative offices on Canadian soil.

With Canadian Prime Minister Justin Trudeau reportedly planning to attend the ASEAN Summit in Cambodia next month, Heng anticipates a number of key talks aimed at promoting bilateral trade cooperation between the two countries.

He shared that Cambodian-made goods exported to the Canadian market mainly comprise garments, footwear and travel goods, bicycles, electrical equipment and electronic components, and agricultural products, while imports from Canada include cars, construction materials, and modern technological equipment.

For full article, please read here


Author: Hin Pisei

Source: The Phnom Penh post 

Economic Corridor to Boost Regional Trade and Growth Through Laos

The Ministry of Public Works and Transport on Wednesday launched an initiative to improve transport, connectivity, climate resilience, and east-west regional trade across the north of the country.

The Southeast Asia Regional Economic Corridor and Connectivity Project is backed by World Bank financing and is designed to help people in the northern provinces benefit from expanding regional trade and transport connections.

The project was designed to complement the Association of Southeast Asian Nations Master Plan on Connectivity. The new project will upgrade Lao National Road 2 connecting Thailand, Laos, and Vietnam, thus building an east-west corridor that links with existing north-south routes in mainland Southeast Asia.

The upgraded road’s design will protect it from storms, floods, and landslides which are becoming more frequent because of climate change.

Other activities include the development of dry ports, marketplaces, trucking terminals, and locations where farmers can bring their produce for transport to national and foreign markets. A major aim is to improve the ability of local smallholders to market goods that can be traded via the new transport networks.

“We are seeing dramatic improvements in the transport infrastructure running from the north to the central part of the country.”

“However, without local connections to these and other trade routes, most people in the provinces will not be able to take advantage of these new facilities. This is therefore an essential investment in our future,” said Mr. Viengsavath Siphandone, Minister of Public Works and Transport.

Read more: LaoTianTimes

Srouce: The Laotain Times

ASEAN for Business Bulletin Sep 2022: Single ASEAN Pharmaceutical Market

Noting current needs for ensuring timely access to pharmaceutical products to ASEAN citizens, the ASEAN Health Ministers and ASEAN Economic Ministers (AEM) adopted the ASEAN Pharmaceutical Regulatory Policy (APRP) to provide a basis for harmonising and structuring regulatory systems for pharmaceutical products across ASEAN. Read more about APRP and the highlights of the 54th Meeting of  AEM at this link.

SMEs, MNCs should work together to advance sustainability agenda: panel

SMALL and medium-sized enterprises (SMEs) and multinational corporations (MNCs) play an equal role in advancing the sustainability agenda and should work together to do so, said panellists at a discussion held at the SME Centre Conference on Wednesday (Aug 31).

“We all have a responsibility, no matter the size,” said Benjamin Henry Towell, executive director of sustainability at OCBC. “A large corporation uses a whole supply chain of SMEs, and so the relationship between them is quite fluid. Both the SME and MNC need to work together when it (concerns) a whole supply or value chain.”

Similarly, Nigel Lee, general manager of PC vendor Lenovo, said that sustainability was not an individual effort. “In the past, sustainability was about pushing the responsibility to the end-user; now, sustainability is about putting the responsibility on the manufacturer to produce really sustainable products. So we need to connect the dots.”

He noted how Lenovo’s success is dependent on the success of its supply chain partners: “This is a critical part for SMEs, regardless of whether you’re in supply chain or logistics…in the short run, it’s going to impact us one day or the other. So I think the journey has to start with them.”

Benjamin Chua, chief executive of cleaning technology company Speco, said companies should tap the whole ecosystem of partners, including trade chambers and associations. “The opportunities for us to collaborate are out there, especially for SMEs, and we should huddle together as a pack.”

Towell noted that banks can serve as a conduit by connecting solutions providers to customers looking for solutions. “We bank the supply side; we have the demand side as well. So being able to link up those various parts of the ecosystem together to provide their solutions has been very useful, and we’re seeing that in all the different industries.”


Banks can also provide sustainable linked loans to help SMEs transition to becoming greener businesses, Towell added. “There would be targets on greenhouse gas emissions, so in 5 years, you’ll reduce it by, say, 40 per cent year on year and we’ll provide the capital to do that.”

Meanwhile, companies that have been most successful in meeting sustainability goals are those with employees who have fully “internalised” the firm’s sustainability strategy, noted Mayur Singh, co-founder of Green Collective, a collective of sustainable retail brands.

“There are 2 sets of companies: one where employees fully understand what the sustainability roadmap means for the company and its stakeholders, while the other one is where internalisation has not happened in a very good way. It’s more like the KPI is done by the sustainability team.”

He cited the example of outdoor clothing retailer Patagonia, which recruits employees that share the brand’s values of sustainability. 

“It’s actually very important to align (at this level), because you have a lot of network effects, which then lead to ideas coming not just from the top to bottom level, but (vice versa). And that is where you can drive a lot of the synergies that value add to sustainability.”

There are many ways for companies to harness this culture of “environmental leadership”, Singh added. 

This includes organising talks and workshops, getting employees to form “green teams” - which refers to a group of employees coming together to advance sustainability within the organisation - and even constructing hydroponics walls in the office. 

“That belief system that is created within employees can go a very long way in delivering the highest sustainability objectives that the board of your company wants to actually achieve.”

Source: The Business Times

Link: Here

Leveraging digitalisation and technology for growth

COVID-19 has forced more businesses to think deeper about how to leverage digitalisation and technology, but even today, these tools continue to help companies navigate challenges thrown up by the multiple headwinds the region faces. 

Lawrence Loh, head of group business banking at UOB, shared that pre-Covid, between 15-20 per cent of UOB’s SME (small and medium enterprise) customers were thinking about digitalisation. 

“Prior to Covid, a lot of SMEs knew about digitalisation, some may even have started transformation efforts. But there wasn’t great impetus to push for more extensive change then,” said Loh. 

“Now, 50 to 70 per cent are looking to digitalise… as they get more comfortable with digitalisation and understand the benefits of digital transformation to their businesses.”

According the Asean SME Transformation Study 2022, 66 per cent of the respondents spent more on technology through 2021 compared with previous years. 

The same number indicated they are keen to invest more in technology, especially in the areas of digital marketing, customer management, sales, network management and operational processes.

According to Loh, areas that SMEs have indicated interest in relate to tools that streamline payroll, accounting and digital marketing processes. 

“These solutions help them manage their operational processes, reduces cost and improves efficiency,” he added. 

The UOB SME app, which was launched in August, was developed based on the insights from the study. 

For instance, the study found that cash flow remains a key concern for many SMEs (44 per cent), with more than half of businesses (54 per cent) indicating that their existing cash flow can sustain their operations for less than 6 months. 

Using the app, SMEs can view their cash flow data, apply for loans, and set personalised foreign currency watchlists.

“One main feature that we see customers using the app for is cash flow analysis, which can be viewed on the interactive dashboard. They are also able to track their accounts receivable and accounts payable. The digitalisation helps them to view their cash flow real time and manage their business more efficiently on the go,” he said.

Brando Tan, director of Band World (Asia), who tested the app during its soft launch, said he appreciated that the app offered him real-time view of his business transactions. He used the app to set up a personalised foreign currency watchlist and was able to receive alerts when his limits were reached.

The app also allows SMEs to manage their human resources, payroll, logistics and digital marketing needs. Additionally, the UOB SME app allows business owners the flexibility to transact on the go. Other products in the market are generally contained to desktops only. 

The bank is aiming to have about 200,000 SME users onboard the app. It is currently available to customers in Singapore, Malaysia and Vietnam, and will be progressively launched in Indonesia and Thailand by the end of next year. 

Looking ahead, Loh said one of the features they are currently implementing is enabling access to general insurance solutions, offered digitally through the app. Further down the road, other features that could potentially be implemented include cashflow comparisons for specific industry peer groups. This will be in addition to looking at how they can further simplify transactions via the app.

Meanwhile, even as the pandemic draws on and regional governments introduce reopening measures, business optimism is steadily returning to pre-pandemic levels, with 1 in 2 SMEs expecting an increase in revenue from 2022, according to the report. 

That being said, they continue to look to the government for financing. Perhaps unsurprisingly, 74 per cent of the survey respondents highlighted government funding schemes as their preferred source of funding, up from 34 per cent in the 2020 survey. 

This is likely attributed in part to the increased availability of support schemes during the pandemic, which has built a level of awareness among SMEs. 

Specifically, respondents considered active support in the creation of digital infrastructures for SME banking (77 per cent) and funding for the adoption of digital technologies (77 per cent) as the most useful forms of government support initiatives. 

But it is not just funding SMEs were keen on. They also indicated that they looked forward to receiving more diverse forms of support from their governments. Indeed, respondents from all markets agreed that offering a wider variety of non-financial government schemes, such as mentorship and peer support networks (56 per cent), is the preferred way for the government to be a better partner to businesses. 

“SMEs expressed a strong need for tripartite collaboration between banks and the government. Essentially what they want is to have a strong network to tap on. From UOB’s perspective, we are now able to give provide SMEs with wider reach to a larger customer base, hence enabling growth,” said Loh.

They are also working with businesses to forge meaningful collaborations. For instance, through UOB’s BizSmart partnership with Exabytes, the bank is able to help its customers who do not have any digital experience build customised e-commerce websites in just 15 minutes, therefore helping them build increased online presence and distribution channels

On the supply chains front meanwhile, the study found that businesses are increasingly focusing their investments on digital tools that can make their supply chains more flexible. 

“As business volatility continues for a protracted period, SMEs must build greater resilience in their supply chains. SMEs should keep themselves informed on supply chain enhancements and change trends during the pandemic, and develop new capabilities with the longer term in mind,” noted the study.

Logistics companies such as GKE Corporation, Pacific Logistics Group and Legend Logistics are examples of local companies that have successfully crowdsourced inovative solutions in data analysis and automation, thereby enabling them to enhance their end-to-end supply chain visibility and operations. 

Lee Pak Sing, assistant chief executive officer, trade, connectivity and business services at Enterprise Singapore, also highlighted that companies have realised the importance of tapping on digital solutions, such as data analytics. 

This, he told The Business Times, allows them to detect and implement informed countermeasures quickly in response to unexpected events such as port congestion and tightened border controls.

Source: The Business Times

Link: Here

Singapore companies make beeline for reopened Vietnam

JUST months after Vietnam reopened to international visitors, some Singapore companies are wasting no time heading to the South-east Asian country in search of opportunities, in areas from tech to lifestyle.

Emile Dumont, founder and chief executive of sports massage studio The Posture Lab, said that Vietnam has a growing fitness and wellness trend, but a lack of proper accreditation for trainers. This gap is what The Posture Lab, which also runs an academy, hopes to fill.

"That's why we actually want to come in with that first-mover advantage to build up that whole ecosystem aspect, before we actually build or develop even just gym management or setting up gyms," he explained.

The plan is to work with universities to offer internationally-accredited fitness and wellness courses. This also creates a pipeline of manpower for when the business is ready to scale, Dumont told The Business Times (BT).

To get a head start on these plans, the company participated in the Global Innovation Alliance (GIA) accelerator programme in Vietnam in August.

Formed by a partnership between Enterprise Singapore (EnterpriseSG) and venture capital firm Quest Ventures, the programme is curated for "high-potential" startups and companies, with masterclasses, market immersion programmes and ongoing mentorship.

Earlier batches did not get to visit Vietnam as borders were closed due to the Covid-19 pandemic. But now that borders have reopened, Quest Ventures said that new applications for this fifth edition were up 14 per cent compared to the previous run, despite a shorter application window.

Only 5 companies were ultimately chosen for the programme, which took them to Hanoi and Ho Chi Minh City over 5 days jam-packed with networking events and meals with potential partners and investors, as well as meetings with mentors.

Describing the experience as "amazing", Dr Tan Yeow Kee, founder and CEO of fall detection startup SoundEye, said he found 2 partners during the trip. One of them is Canon Vietnam, with which Dr Tan had already been in contact prior to the trip.

"Before I came, I already started to look for partners, otherwise it's going to be a bit tough. So I think a few steps ahead," he said. He plans to return to Hanoi this month to meet a customer.

Since 2020, 45 Singapore-based startups, including the latest cohort, have participated in the Vietnam GIA programme.

Kow Juan Tiang, executive director for South-east Asia at EnterpriseSG, said 3 startups have since set up a presence in Vietnam, while more than 10 are in discussions with potential partners on possible project collaborations.

Beyond the GIA, companies can tap schemes such as the Market Readiness Assistance grant, which provides support for overseas set-up, business matching and market promotion. Businesses can also apply for the Enterprise Development Grant to increase their in-market competitiveness.

EnterpriseSG also has 36 global overseas centres to help companies navigate foreign markets. In Vietnam, these are in Hanoi and Ho Chi Minh City.

Nguyen Phi Van, chair of Vietnamese government-backed Saigon Innovation Hub, credits the good inter-government partnership for many Singapore companies' interest in Vietnam.

"Singapore has always been one of the strongest partners of Vietnam pre- and post-pandemic. After the pandemic, the first 10 delegations I receive in Vietnam are all Singaporeans," she said with amusement.

Singapore companies' appetite for the Vietnam market can also be seen in the flows of capital into the country.

Singapore was Vietnam's top foreign investor for the second straight year in 2021, and still holds the pole position for the first half of 2022 with direct investment contributions totalling S$4.1 billion, according to Vietnam's Ministry of Planning and Investment.

The Singapore Business Federation (SBF), which set up a Singapore Enterprise Centre (SEC) in Ho Chi Minh City in January last year, said companies are ready to head here now that the pandemic is fading away.

For the past 2 years, the SBF could only hear companies expressing interest; now, with more information and greater confidence, it can "see a lot of companies flying in", said Amy Wee, country head at the SEC@Ho Chi Minh City.

Wee, who shuttles between Ho Chi Minh City and Singapore every few weeks, manages the GlobalConnect@SBF in the southern Vietnamese city. From Aug 22 to 26, an overseas market workshop was held there for 16 companies which are new to the market and would like to meet potential customers and vendors.

One of the companies is Singapore fashion store iORA, which hopes to make Vietnam its second overseas market after having expanded into Malaysia in 2007.

Speaking to Singapore reporters on the sidelines of the workshop, iORA's marketing director Teo Toon Lin said it was very important to do sufficient groundwork before deciding to expand overseas.

"We want to really have an opportunity just to check things out a bit and get ourselves familiar. Looking for suitable partners might take some time too, because you want to work with people who share the same ideas," she noted. "And you want to make sure that you trust your partner to do certain things here correctly when you're not around."

Ripe economic conditions
Following sluggish growth last year, Vietnam has made a swift recovery from the pandemic, with gross domestic product (GDP) expected to grow 7.5 per cent year on year in 2022, according to estimates by the World Bank. With a population of close to 100 million, Vietnam's middle class is also believed to be among the fastest growing in Asia.

While these alone are attractive factors for potential investors, market watchers note several other enablers that make Vietnam stand out: social and political stability, relatively low operating costs, easy access to labour, as well as a bevy of business and investment incentives offered by the pro-business government.

The government has been "very welcoming to invite foreign businesses to actually develop themselves in Vietnam" and has encouraged young Vietnamese to upskill, SBF's Wee added.

EnterpriseSG's Kow has observed that many Singapore companies, particularly in tech, choose to set up in Vietnam as it has a ready pool of tech talent, reducing the time needed to set up shop. "These talents can also help Singapore companies gain market insights and navigate local business practices, as well as bridge language barriers as they look to collaborate with in-market players," he said.

The country's strategic location -- bordering China, Cambodia, Laos and Thailand -- and long coastline make exports easy, SBF's Wee pointed out.

Vietnam's recent history also presents certain unique conditions, said Taku Tanaka, co-founder and CEO of Ho Chi Minh City-based food-sourcing startup Kamereo that last year raised US$4.6 million in a Series A funding round.

"Compared to other countries, Vietnam doesn't have very big conglomerates yet. Because of the Vietnam War, most of the big corporates started from the 1970s or 80s," pointed out Tanaka, adding that most conglomerates are still managed by their first-generation founders and chief executives.

Noting that 98 per cent of businesses in the country are small and medium enterprises, he said: "So the conglomerates are not really strong enough, and I think there's still a little room for even foreigners to come in to do something better than what there is right now."

Source: The Business Times

Link: Here

Laos Sees Trade Deficit of USD 166 Million in August

Laos reported a trade deficit of USD 166 million in August as it imported substantially more goods than it exported from the country. There has been an increase in the trade deficit by USD 52 since July.

According to the latest information from the Lao Trade Portal website, the overall value of Laos trade was USD 1.02 billion in August this year, with USD 427 million in exports and 593 million dollars in imports.

The major export sources included iron ore, copper ore, paper, paper-made products, gold ore, wood pulp, and waste, asphalt, fertilizer, paper, sugar, beverages, clothing, and shoes.

Meanwhile, major imports comprised Diesel and mechanical equipment, land vehicles, wood pulp, and waste paper, beverages, plastic products, living animals, minerals, steel and steel products, and magnetic steel.

Laos’ biggest export destinations were China, Vietnam, Thailand, Australia, and Hong Kong while the top nations it imported from were Thailand, China, Vietnam, The United States, and Switzerland.

Soruce: LaoTainTime

Ghanim set to operate Brunei’s biggest F&B manufacturing facility

Government-owned Ghanim International Corporation is set to begin operating Brunei’s biggest integrated food and beverage (F&B) manufacturing facility by the year’s end, which is expected to significantly bolster local production for domestic and international demand.

Located at the Salambigar Industrial Park, the multi-million dollar Brunei Food Industry Development Multipurpose Manufacturing and Processing Facility (BFID) is a joint project between Ghanim and Darussalam Enterprise (DARe).

In addition to serving as Ghanim’s manufacturing base for their bruneihalalfoods product range, BFID will also be open to local businesses to develop and manufacture their own products.

With substantial production capability, BFID is expected to lower manufacturing costs, while also increasing product marketability by acquiring international standard certifications for its facilities.

Source: Biz Brunei
Read the full article here

DTI upbeat on PH franchise industry

The Department of Trade and Industry is eyeing a more robust growth and development of the country's franchise industry, expecting more entrepreneurs and investors to enter the sector.

Speaking at the Franchise Asia Philippines 2022 Virtual Conference on Tuesday, Trade Secretary Alfredo Pascual highlighted how the past years changed the Philippine franchise industry and attracted more entrepreneurs to invest in franchises.

"Aspiring entrepreneurs are going the franchise route because establishing a business through franchising provides a higher success rate. Unlike starting a business on your own, franchisees build on tried-and-tested business models. A team of experts guides franchise owners to achieve management and operational efficiencies, as well as excellent quality control systems," Pascual said.

He noted that market-wise, franchisees have an advantage in terms of brand recognition. "Name recall makes franchise brands popular, making sales easier. Building up new brands requires substantial expenditures to generate brand awareness, and new brands also need to develop a steady clientele."

During the event, Pascual encouraged investors to set up franchises in the Philippines because of the healthy business climate.

"The Philippines is the seventh-largest franchise market in the world, contributing 7.8 percent to our country's gross domestic product and creating 2 million direct and indirect jobs. With a growing middle class, our country is considered one of the largest franchise markets in the Southeast Asian region. Eating at a popular establishment or owning branded items signals societal status in one of Asia's most social media savvy populations. That is people in the Philippines," Pascual stated.

According to the Trade chief, of the two basic franchise categories, food takes precedence over non-food. Food makes 43 percent of the estimated 1,800 franchise brands in the Philippines. Data from the Philippine Franchise Association showed that food franchises have an aggregate value of P538 billion ($10.8 billion).

"Pandemic or not, the Philippine food service sector is growing as demand for convenience grows. The liberalized retail trade landscape and, to some extent, the reduction of import duties have contributed to the growth of the food service sector. In Philippine manufacturing, food accounts for nearly half of its total output, growing at an average annual rate of 8 to 10 percent per annum. This excellent growth prospect stems from the country's resilient economy and strong consumer base," Pascual explained.

In fact, about 90 percent of the food and beverage (F&B) processing industry's output is consumed domestically. Pascual said the growing consumption, in turn, contributes to the rapid expansion of the processed F&B subsector. "This trend presents excellent opportunities for raw material and high-value ingredient producers. As quality and efficiency improve, such producers can exploit export opportunities due to the country's strategic location and free trade agreements with other countries," he added.

On the other hand, the non-food service and retail subsectors each serve close to one-third of franchise brands in the country-service accounts for 29 percent of franchise brands in the Philippines, and retail, for 28 percent. The contribution value of retail and service franchises amounts to P67 billion ($1.34 billion).

Non-food franchising trends cover health and beauty products, affordable indulgences, clinics, laundry services, homeschooling and microfinance, among others.

To further spur growth on the country's franchise industry, Pascual said the DTI is directing its efforts to support micro, small and medium enterprises by providing them access to capital, technology and marketing resources.

"[The] DTI has been extending financial assistance to MSMEs to provide them access to capital. We assist them in their debt obligation payment, repurposing existing business capital, and acquiring new technologies and systems. We help them adjust their business processes to adapt to the new normal," he said.

MIHAS 2022 surpasses target, generates RM2.36bln in sales

Kuala Lumpur - The 18th edition of the Malaysia International Halal Showcase (MIHAS) 2022, organised by the Malaysia External Trade Development Corporation (MATRADE), under the patronage of the Ministry of International Trade and Industry (MITI), once again delivered a record-breaking showcase, generating a total of RM2.36 billion in sales, surpassing its original target of RM1.9 billion.

Of the total, exhibitors’ sales recorded RM1.65 billion from the showcase, while RM714.7 million was generated from the International Sourcing Programme (INSP), comprising pre-arranged B2B meetings conducted physically and virtually in conjunction with MIHAS 2022. Top clusters with the highest total sales recorded was by financial services, agricultural produce, prepared food, beverages as well as palm oil products.

INSP MIHAS, held in conjunction with MIHAS 2022, was organised in a hybrid approach. A total of 264 Malaysian exporters and 192 foreign buyers from 33 countries participated in the physical INSP while 226 Malaysian exporters and 197 foreign buyers from 48 countries participated in the virtual INSP. Five premium buyers from India, Qatar, Saudi Arabia, Turkiye and USA were also brought in physically to meet with Malaysian exporters. A total sales amounting to RM714.70 million was recorded, comprising of RM650.22 million from the physical INSP and RM64.48 million from the virtual INSP.

 “Through MIHAS, MATRADE continues to fortify Malaysia as the heart of the global Halal hub. This year, MIHAS was indeed bigger and better thanks to our hybrid approach. Moving forward, we encourage the business community, especially micro, small and medium enterprises (MSME) to think regional or international even if they are newly established. Businesses must realise the vast opportunities available in the international halal market and make a move to capitalise on them. MATRADE is ready to assist Malaysian exporters to tap into the opportunities of global Islamic economy, which is estimated to reach USD2.8 trillion by 2025,” said MATRADE CEO, YBhg. Datuk Mohd Mustafa Abdul Aziz.

Following the success of MIHAS 2022, MATRADE announced that next year’s edition of the world’s largest Halal showcase, MIHAS 2023, will be held from 12 to 15 September 2023 at the Malaysia International Trade and Exhibition Centre (MITEC). YBhg. Datuk Mohd Mustafa Abdul Aziz said that close to 400 booths had already been reserved by this year’s exhibitors.

MIHAS 2022 comprised four key components namely, the showcase, INSP, Knowledge Hub and the MIHAS Awards.

The MIHAS 2022 showcase witnessed strong participation by industry players from 33 countries including Malaysia with an overall total of 1,258 booths occupied throughout the four-day exhibition from 7 to 10 September 2022.  Of this total, Malaysian exhibitors occupied 1,049 (83.4%) of total booths while the remaining 209 (16.6%) booths were by international exhibitors. Countries with large representation were Kuwait (33 booths), Indonesia (24 booths), Thailand (24 booths), South Africa (19 booths) and Palestine (14 booths).

The total number of visitors stood at 32,356, comprising of 20,334 physical attendees and 12,022 virtual attendees. YBhg. Datuk Mohd Mustafa Abdul Aziz further explained that the support from the business community was overwhelming because of MATRADE’s decision to organise the 18th edition of the event (MIHAS 2022) in a hybrid format, offering both physical and virtual approaches following the achievements of virtual MIHAS 2021. "The outcomes surpassed our initial targets and MIHAS 2022 was the best edition held to-date. While many were looking forward to the physical showcase, the outcome of virtual engagements was also promising, with close to 40% of total visitors attending the event virtually,” he said.

Complementing the networking aspect of MIHAS, the knowledge sharing component housed under the Knowledge Hub programme generated interest and participation of more than 1,500 delegates. Participants were represented by both Malaysian and international businesses across various Halal industry clusters.  A total of five Knowledge Hub sessions were organised by MATRADE which focused in providing insights on trends, market access and sourcing requirements through direct engagements with premium buyers brought in physically to MIHAS 2022.

Following winning the World Trade Promotion Organizations (WTPO) Award last year, MATRADE has intensified is digitalisation efforts with the launch of a virtual learning platform, MATRADE Digital Learning (MDL). The platform was officiated by YAB Prime Minister Dato' Sri Ismail Sabri bin Yaakob during MIHAS 2022. The MDL platform is one of the efforts of the Ministry of International Trade and Industry (MITI) and MATRADE to improve the knowledge and skills of Malaysian companies, including Micro, Small and Medium Enterprises in building their export competency. “The MDL platform was developed to prepare SMEs for the international market and subsequently strengthen their level of competitiveness at the global level,” YBhg. Datuk Mohd Mustafa Abdul Aziz said.

The prestigious MIHAS Awards returned this year. In addition to the participation of local companies, submission from international companies were also accepted including exhibitors from Kuwait, Indonesia, Thailand, South Africa, Palestine and United Arab Emirates (UAE). The awards were presented to 15 winners under four categories which celebrate the spirit of innovation and creativity presented in the form of products, services, exhibition booth designs and social media platforms dedicated to promote the Halal economy.

MATRADE encourages more Malaysian companies to seek the benefits of its wide-ranging programmes designed to boost exports. For more information on export promotions, exporters’ development programmes and other export-related advisory, kindly contact  MATRADE offices, social media channels or visit MATRADE

Interested exhibitors for MIHAS 2023 can contact Mr. Yuhanis Abdul Latif at yuhanis@qube.com.my or +6019-9606535 for more information and early bird promotions.

About MIHAS

MIHAS 2022, organised by the Malaysia External Trade Development Corporation (MATRADE), under the patronage of the Ministry of International Trade and Industry physically was held from 7 to 10 September 2022 at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur and virtually on the MIHAS 2022 microsite. The final day of the showcase, 10 September, was open to the public.

MIHAS is the Halal industry’s number one business platform. It brings international visitors and traders together to the same forum. MIHAS delivers opportunities across the global Halal markets; Food & Beverages, Pharmaceuticals, Cosmetics, Logistics, Muslim-Friendly Tourism, Islamic Finance, eCommerce, Education, Modest Fashion, Food Technology and Franchise. MIHAS is the premier event that is not limited to the ASEAN region alone but is also supported internationally by the enthusiastic participation of International Pavilions from countries across the globe.

A testament to its success in pivoting to neutralise the crippling impact of the pandemic, the 17th edition of MIHAS in 2021 had earned its first World Trade Promotion Organizations (WTPO) Award under the “Best Use of Information Technology” category for its innovative approach in organising a virtual showcase. Adding another feather in its cap, MIHAS 2021 was also recognised at the Malaysia Public Relations Awards (MPRA) 2021, clinching the Gold Award in the Best “Pandemic Pivot” or “COVID-19 Communications” campaign category.

About Malaysia External Trade Development Corporation (MATRADE)

MATRADE’s mission to promote Malaysian’s export has enabled many local companies to carve new frontiers in global markets. Today as we continue to put the spotlight on capable Malaysian companies on the international stage, we are helping to make the phrase ‘Made-In-Malaysia’ synonymous with excellence, reliability and trustworthiness.

Source:  ZAWYA

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