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Cambodia: FTAs, RCEP pushing Cambodia into producing more products for exports

The Cambodian government has pushed for more products for exports as the country is opening wider markets after free trade agreements and the Regional Comprehensive Economic Partnership Agreement come into force earlier next year.

Speaking at the inauguration ceremony of the national road number 7 on Monday, Prime Minister Hun Sen said that the Cambodia-China Free Trade Agreement and the Regional Comprehensive Economic Partnership Agreement, which will enter into force in January 2022, will further improve Cambodia’s economic performance.

The two agreements, which will take effect in January, will open up a wider market for Cambodian products to boost exports, he said.

“The free trade agreement between Cambodia and China will enter into force in January, RCEP will enter into force in January as well, so Cambodia has a better leverage to try and produce to promote exports, this is a positive turning point for the Cambodian people,” Mr Hun Sen said.

The Free Trade Agreement (FTA) is a mutual tax exemption agreement between one country and another on agreed products. It is not only a product tax exemption agreement, but covers many areas, including services, investment, trade facilitation and the removal of non-tariff barriers.

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Author:  Chea Vanyuth

Source: Khmer Times

Publication date: 07 December 2021

 

Thailand leads the world in adoption of next-gen financial services

Globally, the pandemic has been the catalyst for enormous change in the banking and financial services industry, with the adoption of digital banking accelerating beyond all previous projections, and customer expectations changing rapidly in terms of how, where and when people want to manage their finances.

Thailand has been no exception, with the country’s banking and financial services industry experiencing significant transformation over the last 18 months. In fact, more change has occurred in Thailand’s banking scene in the last two years than had occurred during the previous ten years, with the rate of change continuing to accelerate at pace.
In a country with relatively high formal financial inclusion – more than 80% of Thai adults hold a bank account – a strong economy and excellent digital infrastructure, Thailand is well positioned to capitalise on the benefits that the digital banking revolution can bring.

Government support for digital banking encourages innovation
It’s not just anecdotal evidence that says Thailand has heartily accepted digital banking, with Bank of Thailand governor Sethaput Suthiwartnarueput recently stating that there are more than 75 million digital bank accounts currently open in Thailand, a huge jump from only half a million 10 years ago. The Governor also highlighted that online money transfers have surged to almost 10 billion transactions per year, compared with just 95 million ten years ago.

These figures clearly illustrate the country’s eager acceptance of digital financial services, and the readiness with which Thai consumers have embraced online and digital banking. Mobile payments, online transfers and managing bank accounts via apps are all considered commonplace today, and consumers demand access to their money when, where and how they want it.

Research highlights Thai consumers’ passion for digital banking
To get a clearer understanding of how consumers think and feel about banking and financial services in a post-pandemic world, Mambu recently surveyed 4,500 consumers globally, with the results from the more than 500 Thai respondents confirming that the country is a frontrunner when it comes to the adoption of next-gen financial services.

In a sure sign that the future of banking in Thailand is digital, 93 percent of Thai consumers said the availability of digital banking services from their bank was important, and 73 percent were willing to pay a premium for financial services that either save time or offer greater flexibility, much higher than the global averages of 56 percent (save time) and 57 percent (greater flexibility).

The key consumer groups identified in the survey included:

1. Techcelerators
Recent converts to the world of digital banking who have adopted digital services after the closure of physical branches. This group is the largest tribe globally, accounting for a third (33 percent) of total global respondents, and 41 percent of Thai respondents.

2. Ethical bankers
Young, purpose-driven consumers who want to make a positive impact in the world. This tribe is second largest globally, making up 31 percent of respondents, however only 19 percent of Thai respondents identified with this group. However, 79 percent of Thai respondents stated that social impact is important to them when it comes to financial services – the highest of any nation – and 76 percent were more likely to use a bank that puts purpose over profits.

3. Convenience cravers
One-stop shoppers who want all-in-one services at their fingertips, at no extra cost. This group makes up 16 percent of Thai respondents (23 percent globally). This group is least likely to pay a premium for services that save time or offer flexibility.

4. Covidpreneurs
Entrepreneurs who have set up their own business during the pandemic, in need of easy-to-use and reliable business banking services. Covidpreneurs are the youngest tribe globally, with almost two thirds (64 percent) aged under 35 years and a quarter (25 percent) under 25 years. Interestingly, 83 percent of Thai respondents said that the availability of SME banking services through their banking provider is important, higher than any other country surveyed, indicating the entrepreneurial nature of Thai consumers.

5. Neo asset hoarders
New digital asset owners keen to buy, trade and hold digital assets. This group is the smallest globally, at just 6 percent, however 14 percent of Thai consumers identified with this group. Two thirds (66 percent) of Neo Asset Hoarders globally are male and over half are under the age of 35. This group is most likely to own neo assets, including cryptocurrency and NFTs, and most likely to agree the ability to buy, sell or manage neo assets is important in a bank.

Source: Kiattipong Hanthaiphondee, General Manager Thailand, Mambu for Tech Collective

Vietnam - reliable destination for foreign investors

Vietnam has become a reliable destination for foreign investors. By October 20, 2021, the country had 34,266 valid projects with total registered capital of over 404 billion USD.
Vietnam - reliable destination for foreign investors
Vietnam - reliable destination for foreign investors
Source: VNA

What happens at one of Thailand’s most-anticipated tech conferences?

Huawei Technologies (Thailand) Co., Ltd., in cooperation with Bangkok Post Public Company Limited, ASEAN Foundation, and over 60 ICT industry partners across Thailand, organised “Powering Digital Thailand 2022: Huawei Cloud & Connect” in conjunction with Asia-Pacific Innovation Day, in a hybrid format comprising onsite exhibitions and online broadcast from 17-19 November 2021, at Convention Centre, 22nd floor, Centara Grand at CentralWorld.

 

Carrying on the same theme from last year and featuring many keynote industry speakers, exhibitions, and a hands-on lab, the event delves into how digital technologies can unlock new potentials, markets, and business models while also supporting post-pandemic economic recovery in Thailand and the Asia Pacific region. Furthermore, it thoroughly explores practical applications of Cloud, 5G, AI, and Digital Power technologies in industries through digital transformation, especially Thailand’s agriculture, manufacturing, and renewable energy sectors.

In a welcome speech by Guo Ping, Huawei Rotating Chairman, he expressed his strong belief in post-pandemic economic recovery and digital economic growth in the region, saying, “Digital technology, especially 5G, Cloud, and AI, will surely become a pillar for economic recovery and resilience in many countries. We plan to invest $100 million over the next three years to help build a startup ecosystem in the region. We believe all countries in the Asia Pacific region will succeed in their push to go digital. We will extend our roots deeper and do our part during the region’s ten golden years of digital transformation.”

General Prawit Wongsuwon, Deputy Prime Minister, opened the event, stating that, “Digital technology is crucial to Thailand’s digital economic development, post-pandemic recovery, and social well-being. The collaboration between government and industry to integrate technologies and move the country forward will enhance business potential, government efficiency, and Thailand’s sustainability.” Chaiwut Thanakamanusorn, Minister of Digital Economy and Society, said, “Under strong policies to develop the national digital economy and technology, Thailand’s digital infrastructure and data economy have taken great strides in the past several years. We believe that Thailand’s digital economy can reach 30% of the country’s GDP by 2030, or even earlier. In this endeavour, we look forward to continue working with Huawei and deepen our collaboration to use innovation in promoting Thailand’s digital economy.”

Lin Baifeng, President of Huawei Asia Pacific, emphasised that, “As one of the most populous and diverse regions in the world, Asia Pacific is marching to the forefront of the global digital landscape. With over 20 years of partnership with and contributions to the region, Huawei is committed to supporting Thailand and the region’s digital vision in three key areas: Connectivity and Intelligence, Low-Carbon Development, and Digital Inclusion Initiatives.”

Dr. Le Quang Lan, Assistant Director, Head of ICT and Tourism Division, ASEAN Secretariat, commented on the Asia-Pacific Innovation Day activity, “The power of digital economy lies in its ability to enable companies to scale their business models throughout the region, and a common approach for digital transformation should be adopted throughout the Asia Pacific region.” Abel Deng, CEO of Huawei Technologies (Thailand) Co., Ltd., addressed digital transformation trends and Huawei’s mission in the Thai market, saying, “We are inspired to see Thailand become a leading digital force in the ASEAN region. Huawei is fully committed to supporting Thailand in becoming ASEAN’s low-carbon leader, and we are confident of achieving this goal together.”

In the event, discussions through the perspectives of various industry leaders echoes the spirit of technology transformation and empowerment, covering Thailand industry 4.0 in the post pandemic era, low-carbon business, digital economy, digital content production,  digital healthcare, financial service innovation, digital education, digital tech ecosystem, disruptive retail , autonomous and AI solutions, and carbon neutrality.

One of the most exciting innovations showcased at the event is Huawei’s introduction of its Digital Power Business to Thailand. The showcase focuses on developing clean energy to replace fossil fuels through digital and power electronics technology and driving low-carbonisation, electrification, and intelligentalisation such as Smart PV & Battery Energy Storage, Intelligent EV Charging Network, Smart Data Center Facility, and Green Site Power Facility. Currently, it is providing services to over 1000 customers and partners in Thailand.

Another highlight of the exhibition component of the event is Cloud Tractor Training, where visitors can experience a tractor training course enabled by a low-latency 5G network and cloud rendering server. This innovation can be implemented by Thai farmers to improve and optimise their cultivation of agricultural produce.

The event is also highlighting inspiring business cases and solutions related to digital transformation. This includes how to develop a green, low-carbon, and open ecosystem split across three areas. The first area is “Redefine Infrastructure” which showcases how 5G, Cloud, and AI technologies can converge across all industries to unleash new value. The second area focuses on “Industry Digital Transformation” including Smart Transportation, Smart Campus, and Smart Finance. The third area exhibits major global partners and businesses that are collaborating with Huawei to build a prosperous ecosystem for the intelligent era.

Another event highlight is the Intelligent World 2030 White Paper which cites upcoming technological trends from Huawei to look out for, including Cloud, 5G Bullet Time, Cloud and 5G VR Gaming, Smart Healthcare, Smart Finance, and Smart Education.

For IT managers, cloud engineers, data scientists, developers, and solution architects, Huawei Cloud experts organised the hands-on lab course offering technical and practical sessions as well as skills development workshops for deploying and operating cloud computing technology. The topics include cloud container engine, AI and machine learning, enterprise intelligence and data platform, and service migration.

Finally, the second Huawei Cloud Developer Competition in Thailand was showcased at the event under the theme of “Creating value for Thailand and society; for a better future for this beautiful country.”

Source: The Bangkok Post

Tourism to restart once Brunei hits 80% vaccination coverage

BANDAR SERI BEGAWAN – Non-essential travel will be allowed once 80 percent of the population has been vaccinated for COVID-19, the minister of home affairs said Wednesday.

This means residents will be allowed to leave the country for holiday travel and the sultanate will also reopen its borders to tourists.

However, residents will only be able to travel to places on a ‘green list’, comprising of countries considered low risk for COVID-19, YB Pehin Dato Dr Hj Abu Bakar Hj Apong told reporters after the daily COVID presser.

Brunei is likely to hit the 80 percent target by early December, known as the ‘endemic phase’ of the government’s COVID-19 recovery plan.

The endemic phase will see the opening of air travel, but the reopening of land and the sea borders depends on the COVID situation in Brunei’s neighbouring countries, the home affairs minister added.

Brunei has severely restricted inbound and outbound travel since March last year, with essential travelers needing to apply for an entry or exit permit from the Prime Minister’s Office.

Read the full article here.

Cambodia, Vietnam boost banking development cooperation

Cambodia and Vietnam are committed to strengthen the cooperation between the two countries’ central banks.

The commitment was made in a recent meeting between Chea Chanto, Governor of the National Bank of Cambodia (NBC) and Ms. Nguyen Thi Hong, Governor of the State Bank of Vietnam (SBV) through a videoconference.

Ms. Nguyen Thi Hong spoke highly the NBC’s achievements in stabilising the banking system, exchange rate and low inflation during the COVID-19 pandemic.

The SBV’s governor congratulated the Cambodian central bank for the launch of an innovative e-payment platform known as Bakong system, which helps facilitate cross-institutional payment and connectivity.

From his end, Chea Chanto underlined the good collaboration under the Memorandum of Understanding between the two countries’ central banks on the general cooperation, especially for the control of money laundering and terrorist financing.

The NBC governor thanked the State Bank of Vietnam for its support to Cambodia’s human resource development. Lim Nary – AKP

For full article, please click here

 

Author: Lim Nary AKP

Source: Khmer Times

Publication date: 28 November 2021

Cambodia: Berlin eyeing local mangoes

Cambodia is slated to export fresh and dried mangoes to the European market, Germany above all, as Berlin investigates the possibility of export.

On November 24, officials from the German embassy and the Deutsche Gesellschaft fur Internationale Zusammenarbeit GmbH (GIZ) visited Kirirom Food Production Co Ltd (KFP) and other growers, in search of potential suppliers of fresh and dried mangoes to respond to the robust European demand for the fruit.

KFP sales manager Meas Holy told The Post on November 25 that ambassador Christian Berger and the delegation discussed providing support for the firm’s processing plant and facilitating the purchase of mangoes for export to Germany and other European countries.

Although no specific estimates for the volume of mangoes considered for import were given, the officials did say they would support and enhance cooperation between EU buyers and local firms geared towards exports, he said.

“Now they’ve come to see if we are capable of supplying them. My company doesn’t source enough fresh mangoes to export, we plan to remedy that in about two years, but on the other hand, we do have enough dried mango to ship,” Holy said, claiming that KFP products fit the bill in terms of quality.

He believes that the German and other EU markets are wide-ranging and boast strong demand for fresh and dried mangoes, and are ripe for Cambodia to expand its market presence.

For full article, please click here

 

Author: Nov Sivutha

Source: The Phnom Penh Post

Publication date: 28 November 2021

ASEAN launches free trade negotiations with Canada

BANDAR SERI BEGAWAN – ASEAN has begun free trade talks with Canada, which could lead to an agreement that would add US$39.4 billion to the ASEAN economy. 

 
After a virtual meeting co-chaired by Brunei and Canada on Wednesday, ministers issued a joint statement highlighting the potential for a free trade agreement to help diversify supply chains, increase trade and investment, and reinforce Canada and ASEAN’s shared commitment to open markets and rules-based trade.
 
 The ministers also tasked officials with developing a work plan to take forward the negotiations as soon as possible. It would be the first ASEAN FTA with North America, giving Southeast Asian nations access to a market of 38 million people.


Read the full article here

 

For peace, security, prosperity and development

Association of Southeast Asian Nations (ASEAN) member states and China gathered at the ASEAN-China Special Summit to Commemorate the 30th anniversary of ASEAN-China Dialogue Relations yesterday.

His Majesty Sultan Haji Hassanal Bolkiah, Sultan and Yang Di-Pertuan of Brunei Darussalam and Chinese President Xi Jinping co-chaired the summit.

ASEAN member states and China agree to advance ASEAN-China cooperation in all fields which contributes to the building of an open, inclusive and sustainable region that enjoys peace, security, prosperity and sustainable development, jointly announce the establishment of an ASEAN-China Comprehensive Strategic Partnership that is meaningful, substantive and mutually beneficial and task our officials to follow up on its implementation.

They also agree to reaffirm the importance of maintaining ASEAN Centrality in the evolving regional architecture, and support for ASEAN integration and community-building, and ASEAN’s efforts to realise the ASEAN Community Vision 2025; as well as advance cooperation in the relevant areas identified in the ASEAN Outlook on the Indo-Pacific (AOIP) to develop enhanced strategic trust and win-win cooperation among countries in the region, as guided by the purposes and principles of the Treaty of Amity and Cooperation in Southeast Asia (TAC), including exploring mutually beneficial cooperation with the Belt and Road Initiative.

ASEAN member states and China agree to enhance ASEAN-China cooperation in the post-pandemic era for mutual benefits and long-term sustainable development, including through support for the ASEAN Comprehensive Recovery Framework (ACRF).

In addition, they reached a decision to advance comprehensive collaboration and enhance mutual trust, deepen political and security cooperation including through ASEAN-led dialogue platforms and mechanisms to maintain peace and stability in the region; promote comprehensive and active economic relations in trade and investment as well as development, and strengthen regional supply chains; foster diversified social, cultural and people-to-people cooperation in all fields; and promote regional and international cooperation.


Date of Release: 23 November 2021

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Location, business ecosystem in Brunei ‘promising’ as investment destination

Brunei Darussalam’s strategic location as well as efforts to create a positive and favourable ecosystem for companies makes the country a promising ‘top business and investment destination’, said Director General of the Islamic Centre for Development of Trade (ICDT) Latifa El Bouabdellaoui during the ICDT Doing Business Webinar yesterday.

She said the Sultanate’s share of trade with Organisation of Islamic Cooperation (OIC), which accounts for 19.84 per cent of its foreign trade in 2020, is a positive indicator for OIC businesses wishing to explore partnerships with the country.

The ICDT Doing Business Webinars series serves as a platform for OIC member countries to present business opportunities and the investment climate in their countries, said the director general.

It also serves to showcase the experiences and success stories of the private sector in their local markets, she said.

She said the ICDT attaches great importance in organising activities that highlights the potential of OIC member countries, to position them among the first destinations for foreign direct investment. During the webinar, Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah shared a few policy frameworks which nurture strong economic fundamentals in realising Brunei Vision 2035 and the country’s economic diversification efforts.


Date of Release: 18 November 2021

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More needs to be done to ensure sustainable global economy

The global economy remains fragile and more needs to be done for a sustainable recovery, His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam said yesterday during the 28th Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting held virtually from Istana Nurul Iman.

The APEC meeting – chaired by New Zealand Prime Minister cum APEC for 2021 Chairperson Jacinda Ardern – among others, focussed on recovering from COVID-19 to build prosperity for all citizens and future generations.

Noting that APEC agreed on a common vision last year to be achieved by 2040, Brunei Darussalam welcomes the Aotearoa Plan of Action to guide APEC’s future work. In this regard, His Majesty in a titah shared three points.

“Firstly, APEC needs to revitalise trade and enhance economic activities. Efforts should focus on keeping markets open, strengthening global value chains and ensuring free, open and transparent multi-lateral trading system anchored by the World Trade Organization (WTO). It is necessary to continue to create a conducive environment for businesses, especially micro, small and medium enterprises (MSMEs), to recover and grow.

“Brunei Darussalam also recognises the importance of technology as tools for creating new economic opportunities. On this note, APEC cooperation has to harness the power of technology and digitalisation to transform industries, promote innovation, and enhance infrastructures.”

Date of Release: 13 November 2021

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Digital transformation at the forefront of ASEAN recovery

The digitalisation in the transportation sector in Brunei Darussalam including application for the renewal of vehicle licence and driving licence and online registration of domestic runners, is among the initiatives aimed at facilitating and safeguarding the interests and well-being of the business sector, especially new micro small medium enterprises (MSMEs) that have entered the market amid the second wave of the COVID-19 pandemic.

This was stated by Minister of Transport and Infocommunications Dato Seri Setia Awang Abdul Mutalib bin Pehin Orang Kaya Seri Setia Dato Paduka Haji Mohd Yusof during the 27th ASEAN Transport Ministers (ATM) Meeting and Associated Dialogue Partner Meetings held from November 11-12.

The minister also reiterated on the importance of road safety in realising a more resilient cargo transportation. In line with the Brunei Darussalam Road Safety Declaration 2020, Brunei Darussalam launched the Brunei Darussalam Road Safety Strategic Plan 2025 which contains a comprehensive list of strategies and initiatives, among which are: designing effective data collection and access; and use relevant technologies that enable to address road safety issues.

Dato Seri Setia Awang Abdul Mutalib said digital transformation should be at the forefront of ASEAN recovery, in line with the revised schedule of actions under the Kuala Lumpur Transport Strategic Plan 2016-2025 adopted by the 26th ATM Meeting in 2020.

The two-day meeting was officiated by Prime Minister of Cambodia Hun Sen, who touched on the Masterplan on ASEAN Connectivity 2025 which serves as a key plan to ensure economic growth with minimal development gaps and seamless connectivity among the ASEAN member states and globally.

Read the full article here.