The nation’s research and development (R&D) spending will reach one percent of gross domestic product (GDP) by 2030 according to the government’s road map for science, technology, and innovation.

The meeting was attended by Cham Prasidh, Minister of Industry, Science, Technology, and Innovation, Veng Sakhon, Minister of Agriculture, Forestry and Fisheries, Chea Vandeth, Minister of Posts and Telecommunication, Mam Bunheng, Minister of Health, Sok Piseth, vice president of Cambodia Chamber of Commerce as well as members of the NCSTI.

The purpose of the meeting was to review, discuss, set direction and approve documents to support and promote the implementation of work in the field of science, technology and innovation in Cambodia. It also discussed and received input on further improvements as well as adopted the Cambodia Science, Technology and Innovation Roadmap 2030 in support of the country’s recovery from the global pandemic, according to the Cambodia Chamber of Commerce (CCC).

The CCC also stated that there were recommendations for the development of three priority technology sub-roadmaps, including ones for education, health and agricultural technology. According to preliminary research, Cambodia has 9,324 scientists and technologists with 2,297 women among that group.

Author: Chea Vanyuth

Source: Khmer Times

For full article, please read here.

Original published date: 09 July 2021

Cambodia exported $8.201 billion in the first six months of 2021, a 17 percent increase compared to the same period last year, according to a report from the Ministry of Economy and Finance.

The Kingdom’s primary export markets are the US, the EU, Canada, Japan, China, South Korea and the ASEAN nations.

Increasing exports are seen as an indication of positive signs in local production and manufacturing despite the pandemic, although the garment sector has taken a significant hit compared to other sectors.

Nguon Meng Tech, director-general of Cambodia Chamber of Commerce, said that export growth is the driving force behind positive activity among the production chains.

“It is a good result from the government’s efforts to push active production chains to [maintain] exports [generating] jobs and economic growth,” Meng Tech said.

Last year, Cambodia shipped garment, non-garment and agricultural products worth $16 billion, a 14 percent increase compared to 2019 results.

Author: Chea Vanyuth

Source: Khmer Times

Images credit: KT/Mai Vireak

For Full article, please read here.

Original published date: 19 July 2021

Interest in packaged sauces, dressings, and condiments has been rising in the United States (US), a big boost in retail as eating occasions of consumers, especially millennials, move into their homes amid the coronavirus and the restrictions.

The Euromonitor Digest said emerging and premium brands are still positioned for growth over the next few years with their expected renewed focus on innovative products as restrictions are lifted.

“When it comes to sauces, dressings, and condiments, consumers increasingly want to experiment with new products that can add flavor and excitement to their meals. The millennials are key drivers behind this trend, with younger generations placing a greater focus on experiences. Also, with a looming economic recession, pricing will remain an important consideration for many shoppers,” said the monthly online publication of the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB).

The report said consumers may be willing to spend the extra money for a better product especially if they feel that they are saving money by not ordering foodservice.

“These contrasting demands could create space for the further expansion of private labels, with producers often able to deliver premium products but at more competitive prices than the equivalent branded options,” it added.

The Euromonitor Digest said private labels have also seen dynamic growth in 2020 due to the economic downturn, with its competitively priced pasta sauces attracting the interest of price-conscious households.

Moreover, the report said the shift in shopping behavior towards e-commerce could become permanent as many consumers have turned to e-commerce as a convenient way to stock up on groceries.

“Innovations on the part of the retailers to make online grocery shopping even more convenient will serve to boost e-commerce further over the forecast period,” it said.

It said the demand for convenience was a key growth driver within packaged food.

“As consumers will increasingly have busy lives, manufacturers had to make their products be more portable and should help consumers save time while still providing a good taste,” it added.

The Euromonitor Digest said the coronavirus disease 2019 (Covid-19) saw many consumers being forced to work from home, allowing more time to prepare and eat meals.

“However, once Covid-19 is contained and people begin heading back to the office and school, time-saving will likely regain its importance and consumers will again start seeking out ways to minimize the time spent on preparing meals. As such, shoppers will likely look into sauces, dressings, and condiments for support in creating quick, easy,

and tasty meals,” it said.

Source: PHILEXPORT News and Feature

The economic partnership between India and the Association of Southeast Asian Nations (ASEAN) has continued to strengthen since the economic relationship began in 1992 and with the ASEAN-India Free Trade Agreement (AIFTA) coming into effect in 2009.

The bloc has presented several opportunities for Indian manufacturers and exporters seeking long-term commitment. Total trade between India and ASEAN was valued at US$86 billion in 2020, a reduction from US$97 billion in 2018-19 due to the pandemic. However, this was an increase from the 2017 total trade value of US$59 billion, indicating an upward trajectory only arrested by the pandemic.

Furthermore, according to India’s Commerce and Industry minister, India-ASEAN trade has the potential to reach US$300 billion by 2025.

ASEAN is already the world’s third most populous economy and is projected to be the fourth-largest single market by 2030, with a GDP of US$7 trillion. Furthermore, domestic consumption is expected to reach US$4 trillion and the population too will rise to 723 million from 648 million currently.

Indian exports largely mirror those of ASEAN states, such as rice, electrical equipment, and clothing and accessories. However, there are still sectors where Indian exporters can potentially exploit market needs – wheat exports, the digital economy, and healthcare.

Source: ASEAN Briefing

Author: Ayman Falak Medina

Original published date: 2 July, 2021

Read full article here https://www.aseanbriefing.com/news/opportunities-for-indian-manufacturers-in-asean/

On June 2, 2021, the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) agreed to the world’s first bloc-to-bloc air transport agreement through the ASEAN-EU Comprehensive Air Transport Agreement (AE CATA).

The AE CATA, once formalized, will bolster connectivity between the EU and ASEAN, which has been decimated by the pandemic. The agreement allows airlines of ASEAN and EU countries to fly any number of non-stop passenger and cargo services between the two regions.

In addition, airlines will also be able to fly up to 14 weekly passenger services with one-stop within the other region to pick up passengers on the return leg. There is no limit for cargo flights. ASEAN and the EU hope the agreement will make their respective airlines more competitive as their international airline routes are currently dominated by carriers from the Middle East.

Importantly, the AE CATA can increase cooperation in technical areas, such as aviation safety, consumer protection, air traffic management, and environmental issues.

The AE CATA can improve trade between ASEAN and the EU

Besides the liberalization of air transport, the AE CATA can strengthen reciprocal prospects for trade and investment between ASEAN and the EU.

ASEAN is the EU’s third-largest trade partner (after China and the US) with over 189 billion Euros (US$223 billion) worth bilateral trade of goods recorded in 2020, and 93 billion Euros (US$110 billion) worth bilateral trade in services recorded in 2019.

The EU is by far the largest investor in ASEAN countries. Some 313.6 billion Euros (US$370 billion) in foreign direct investment (FDI) stocks went to ASEAN members throughout 2019. Further, ASEAN investments into the EU have also steadily increased to a total stock of 144 billion Euros (US$170 billion).

Source: ASEAN Briefing

Author: Ayman Falak Medina

Original published date: 15 July, 2021

Read full article here https://www.aseanbriefing.com/news/asean-eu-agree-to-worlds-first-bloc-to-bloc-air-transport-agreement/

Indonesia's exports of manufactured goods increased 33.45 percent to reach US$81.07 billion in the first half of 2021 as compared to the corresponding period last year, according to the Industry Ministry.

The manufacturing industry contributed 78.80 percent of Indonesia's total exports that reached US$102.87 billion in the first half of 2021.

"The government is making every effort to ensure that the industrial sector will remain productive and competitive to meet the market demand and contribute to easing the impact of the COVID-19 pandemic on the economy," Industry Minister Agus Gumiwang Kartasasmita noted in a written statement released on Sunday.

According to the Central Statistics Agency (BPS), despite the COVID-19 pandemic-induced pressure, the exports of manufactured goods rose 9.7 percent to reach US$14.08 billion in June 2021, from US$12.83 billion a month earlier.

The increase in exports of manufactured goods is expected to help expedite the national economic recovery.

The exports of manufactured goods, valued at US$14.08 billion in June 2021, contributed 75.91 percent of the national exports totaling US$18.55 billion.

The export performance suggested that the manufacturing industry remained the biggest contributor to the country's total exports in the first half of 2021.

"The large proportion of exports from the manufacturing industry shows a shift in Indonesia's exports, from primary commodities to manufactured goods that have high added value," he remarked.

Manufacturing industries that dominated exports in June 2021 comprised the iron and steel industry, with US$1.99 billion; animal and vegetable oil, with US$1.89 billion; electronic machine and appliances, with US$1 billion; vehicles and spare parts, with US$734.6 million; and rubber and rubber products, with US$605 million.

The improving export performance has led the country to record a trade surplus of US$11.86 billion in the first semester of 2021.

Source: Antara News

Reporter: Sella Panduarsa G, Suharto

Editor: Sri Haryati

Read full article here https://en.antaranews.com/news/179710/indonesias-manufactured-goods-exports-soar-in-first-half-of-2021

Philippine exports led the way to the continued expansion of global trade, spurred on by the gradual opening of major economies abroad as it contributed USD 5.89B to total trade or a 29.8% growth for May 2021, over the previous year’s USD 4.54B. This effectively shrunk the Balance of Trade by USD 329.9M from April 2021 figures, even as imports expanded 47.7% as demand for industrial inputs rose due to growing economic activity in the country.

The country’s total sale exports in May 2021 comes after an increase of 74.1% in the previous month.

“We are very optimistic that we can sustain this upward exports performance trajectory as our major trading partners continue opening up their borders and easing travel restrictions, given the success rate in their vaccination drive The same thing here in the country as we rollout the vaccination program and allowed 100% operating capacity even during the Enhanced Community Quarantine (ECQ) and Modified ECQ (MECQ) months of March and April of this year,” Trade Secretary Ramon M. Lopez said.

According to data from the Philippine Statistics Authority (PSA), electronic exports continue to be the Philippines’ top exports with a 61.3% share to total exports, growing at a hefty 22.3%. Fastest growing sectors are Medical/Industrial Instruments (240% growth), Consumer Electronics (216.2%), and Office Equipment (120.5%). Semiconductors, while only managing to grow 11.3%, are still the major contributor to the total electronics exports, with a share of 68.5%, valued at USD2.53 Billion.

Non-electronics products that performed beyond expectations include travel goods and handbags (884.1%), Christmas décor (433.6%), Basketworks (380.7%), ceramic tiles (420.8%), and fine jewelry (390.7%). The trade chief explained that this is an indication of the gradual recovery of the consumer market as more people resume their lives interrupted by the pandemic. Total non-electronics exports expanded 20% year-on-year (YOY).

“As we focus our efforts on the key export sectors of our country, we hope to regain our lost opportunities due to the COVID-19 pandemic and maintain the momentum of accelerating our export growth,” Sec. Lopez added.

China continues to be the Philippines’ top market with a market share of 16.2%, amounting to USD 954.3M, with growth tapering to 22.3%. The USA, Japan, Hong Kong, and Singapore complete the top five markets – comprising 64.8% of total exports to the world. The USA market, in particular, expanded an impressive 84.6%, and if this growth continues, it is poised to overtake China as the Philippines’ top market in succeeding months.

Global trade is expected to further rebound in Q2 according to UNCTAD’s outlook for 2021, largely dependent on subsiding pandemic restrictions. The UN agency expects the fiscal stimulus packages, particularly in developed countries, to strongly support the global trade recovery throughout 2021. Sectors expected to maintain growth include pharmaceuticals, communication and office equipment, minerals, and agri-food.

Date of Release: 9 July 2021

For the original release click here.

MANILA – A French company pledged ₱1.5 Billion in investments for a shipyard project in the Philippines that may potentially create 500-600 direct and indirect jobs.

This was revealed during the 9th Philippine-France Joint Economic Committee (JEC) meeting held last 2 July 2021 saw high-level economic discussions and commitments forged on bilateral cooperation covering agriculture, civil aviation, aeronautics and space, creative industries, electronics, energy and green technology, and infrastructure and transportation, and the maritime and shipbuilding sectors.

Through its Chief Executive Officer (CEO) Roland Joassard, OCEA, a shipbuilding company in northwest France, formally expressed in the presence of Department of Trade and Industry (DTI) Secretary Ramon M. Lopez, and French Minister for Foreign Trade and Economic Attractiveness Franck Riester, its intent to set up a shipyard in the country.

Secretary Lopez highlighted the strong relationship of the Philippines and France to the French investors present during the Philippines’ REBUILD Investment Virtual Forum last August 2020, which was organized by the Mouvement des Entreprises de France (MEDEF) International in Paris. As the trade chief exchanged information with Minister Riester on both countries’ macroeconomic performances, and their respective COVID-19 pandemic and recovery plans, he said, “This JEC meeting is a testament on how the Philippines and France are now rebuilding together, after global challenges faced during the early phase of the pandemic.”

During the JEC high-level bilateral economic dialogue which was hosted by the French Ministry for the Economy, Finance and Recovery (Bercy), both countries agreed to pursue specific IC Design collaboration projects given existing partnerships in the academe and between both countries’ electronics associations, Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) and ACSIEL – Alliance Electronique, which have actively arranged business-to-business (B2B) meetings and academic engagements since their memorandum of understanding (MOU) was signed at the sidelines of the 2019 JEC hosted by DTI in Manila.

Minister Riester, who announced a visit to the Philippines before the end of 2021, also presented to Secretary Lopez three (3) letters of intent confirming financial support for upcoming projects with the DoTr, financial aid in support of a training boat contract for the Philippine Merchant Marine Academy (PMMA), and a possible maritime expert proposal.

On the other hand, Secretary Lopez handed over to the French Minister a letter from the Bases Conversion Development Authority (BCDA) for the next-phase study of the Clark Fresh Food Hub, and another letter conveying strong interest for the renewal of technical training programs from the Civil Aviation Authority of the Philippines addressed to the Directorate General of Civil Aviation (DGAC).

During the JEC, French space agency, Centre National d’Etudes Spatiale (CNES) extended an invitation for the newly-created Philippine Space Agency (PhilSA) to join the Space Climate Observatory Initiative, group of space agencies and international organizations, that endeavor collectively for “accurate assessment and monitoring of the consequences of climate change from observations and numerical models.”

In the virtual presence of its French partner, Centre National du Cinema (CNC), the Film Development Council of the Philippines (FDCP) proposed continuing projects in film and animation that have already seen Philippine-made content gain attention in top French animation trade fair events in Annecy, France this year through the local film council’s partnership with French creative groups.

Both countries also identified specific projects on dairy development, geographical indications, and control and eradication of African Swine Fever (ASF) in the agriculture sector, and areas for market access as the Philippines and France prepare for a future bilateral agriculture meeting.

Energy projects were also identified by both countries as they intend to explore alternative energy cooperation ventures.

Secretary Lopez also discussed with Minister Riester the positive impact of the Generalized Scheme of Preferences Plus or GSP+ which has strengthened market access for Philippine goods in the European Union (EU), with the Philippine official emphasizing the value of a future free trade agreement (FTA) with the region, while Minister Riester expounded on the French strategy towards Association of Southeast Asian Nations (ASEAN) and the Philippines.

Both economic officials also discussed their respective countries’ regional and multilateral development efforts including the Regional Comprehensive Economic Partnership (RCEP) and other regional trade agreements, and WTO reforms.

The JEC with France is the longest running high-level economic dialogue between the Philippines and a European country.

Both countries agreed to convene the 10th Philippines-France JEC in 2022 in Paris.

Date of Release: 7 July 2021

For original release, please click here.

The Department of Trade and Industry (DTI) launched on its website an automated system for easier submission of application, evaluation, and certification of local manufacturers. The microsite was also redesigned to provide more information, advisories, and announcements for its users and clients.

“Streamlining and automation are the only ways to move forward if we want to eliminate red tape in the bureaucracy. That is why even before the pandemic, we have been implementing digitalization efforts in government services as part of the Ease of Doing Business program,” said DTI Secretary Ramon M. Lopez.

“The launch of this microsite is our way of making government services more customer-centric for our people and more accessible with a tap on the screen or with a click of a button. This is also the realization of President Duterte’s declaration to eliminate long lines and to make all possible services online.” he added

The new user-friendly microsite features links to its online Domestic Bidder’s (DoBid) Preference Program application form, as well as access to verification of application and frequently asked questions (FAQs) regarding the DoBid Program.

Additionally, DoBid advisories and announcements are also posted on the website for easier access to the latest DoBid news.

The microsite was launched on 24 June 2021 and is continuously being updated and improved to keep its users posted on DoBid’s latest activities. The DoBid microsite may be accessed thru this link: https://www.dti.gov.ph/good-governance-program/domestic-bidders-program/.

Date of Release: 6 July 2021

For original release, please click here.

MANILA—Looking forward to the ratification of the Regional Comprehensive Economic Partnership (RCEP) Agreement and its eventual implementation, Department of Trade and Industry (DTI) Secretary Ramon M. Lopez expressed optimism that the trade agreement will not only facilitate the recovery efforts of the country but will also pave the way for the internationalization and deeper participation of micro, small, and medium enterprises (MSMEs) into Global Value Chains (GVCs).

“One big advantage of the RCEP Agreement is the wider cumulation area for raw materials. This means our MSMEs can source inputs from the 15 RCEP Parties, process the products here in the country, and export the same to the region at a preferential arrangement. So, a Philippine manufacturer can source raw materials from China, and export the finished product to Japan, South Korea, Australia or New Zealand,” Lopez explained.

The trade chief also stressed that having one set of simplified rules in trade will also facilitate trade transactions and will reduce administrative cost for exporters. In the process, this will encourage more production and manufacturing activities in the country. This means more jobs and business opportunities for the Filipinos.

“The RCEP region accounts to around 50% of Philippine exports and 68% of Philippine import sources. Hence, the country cannot afford not to be part of this free trade area,” Sec. Lopez added.

The RCEP Agreement is considered as the largest free trade deal in the world. The RCEP region makes up 29% (USD 25.8 trillion) of global GDP, 30% (2.3 billion) of the world’s population, and 25% (USD 12.7 trillion) of global trade in goods and services. 

According to Assistant Secretary (Asec.) Allan B. Gepty, the country’s RCEP Lead Negotiator, the Philippines will benefit from an economic policy that is open to trade and investment under a rules-based system. “The RCEP Agreement is a testament on the need to further open the markets for trade and investments, and improve rules and disciplines in addressing the evolving business environment such as e-commerce, intellectual property, and competition policies.,” he said.

The RCEP region is already the main GVC hubs of three emerging economies (i.e. Japan, South Korea, and China) and contributing 50% of the global manufacturing output.

“If you further strengthen the region with rules and discipline then you create an environment of trust, and this will encourage more investments and deeper economic integration. In addition, the creation of the RCEP free trade area strengthens economic integration in the region, and balances global power and influence especially with the growing trend in protectionism,” Asec. Gepty added.

The RCEP Agreement is comprised of the ten (10) ASEAN Member States, Australia, China, Japan, South Korea, and New Zealand. It is targeted to be implemented in January 2022.

Date of Release: 6 July 2021

For the original release, please click here.

The newly-established Cambodia Business Council (CBC) in Bangkok and Thai Subcontracting Promotion Association (Thai Subcon) will join forces to enhance trade and investment between the two ASEAN neighbours, and build momentum for the implementation of Cambodia’s 2021-2023 Economic-Diplomacy Strategy.

A memorandum of understanding (MoU) was signed in this regard by CBC president Sambath Sothea and his Thai Subcon counterpart Kiattisak Jirakajonvong on July 13 via video link, in a ceremony presided over by Cambodian ambassador to Thailand Ouk Sorphorn and witnessed by commercial attache Heng Sovannarith.

The deal will provide support for marketing channels and activities to promote business and investment opportunities, cultural exchanges and social connectivity.

According to the Thai Ministry of Commerce, trade between Cambodia and Thailand reached $7.236 billion last year, tumbling 23.17 per cent from 2019, primarily due to the economic disruption of the Covid-19 pandemic. 

Author: May Kunmakara

Source: The PhnomPenh Post

For full article, please read here.

Original published date: 14 July 2021

The Council of the Ministers approved the new investment law draft last week in order to attract increased investment flow to the country and enhance the nation’s economic diversification and competitiveness.

The new draft consists of 12 chapters and 42 articles.  It was approved by the Council of the Ministers at a meeting chaired by Prime Minister Hun Sen on Friday July 9.

The draft law sets the strengthening procedures on monitoring and checking from relevant ministries and institutions through joint one-time inspection as well as sets incentives to qualified investment projects, both tax and non-tax preference, to attract flow-in investment to sectors that Cambodia needs specifically in the context of economic diversification and increasing competitiveness.

It also includes international obligations undertaken by Cambodia to show investors the commitment of the government to protecting investment and providing assurances in accordance with international law. Additionally, it shortens the period of certificate issuing from 31 to 20 working days for business registrations made via the single portal, Single Window Service.

In the first six months of 2021, the Council for the Development of Cambodia approved 87 investment projects worth $3 billion, up 10 percent from the first half of 2020.

Author: Chea Vanyuth

Source: The PhnomPenh Post

For full Article, please read here. 

Original published date: 12 July 2021