The Export-Import Bank of Thailand (Exim Bank) wants to boost the number of Thai SMEs exporting products abroad from the current level of 30,000 to 100,000 within the next four years.

Thailand has an estimated 6 million small and medium-sized enterprises (SMEs), of which 3.1 million are registered and 2.7 million are informal, according to Exim Bank managing director Rak Vorrakitpokatorn.

These entrepreneurs compete in a market of just 70 million people, where yearly GDP growth is a modest 2 per cent over the past 10 years, Rak said. Also, only 1 per cent of Thai SMEs are exporters, compared to more than 10 per cent in competitor countries.

“The Thai economy is growing at an average of 2 per cent per year, while the country has become an ageing society,” he said.

Compared to neighbours such as Vietnam and Indonesia which have far younger populations, with 60-70 per cent of people of working age, Thailand has little potential because the market is small, said Rak. “Boosting sales is difficult, so what we should do is go to the international market.”

Thai SMEs can plug into the international trade cycle in two ways, Rak said.

The first is to upgrade to an exporter – which may require time in order to build knowledge and experience in various fields.

The second way, which can be done immediately, is via the exporter's supply chain.

“Many Thai SMEs are already part of the exporter supply chain in one way or another. This is because 70 per cent of Thailand’s total export value relies on domestic raw materials,” said Rak.

Source: The Nation Thailand

According to Agriwatch.com, the Indian government has signed a Memorandum of Understanding (MoU) to import matpe (bean) and pigeon pea from Malawi, a landlocked country in Africa and Myanmar.

About 250,000 tonnes of matpe (bean)  will be imported from Myanmar, and 100,000 tonnes of pigeon pea will be imported from Malawi under a government-to-government contract.

Agriwatch.com quoted market sources as saying that the two types of pulses are intended to be imported annually and are planned to be purchased for five years.

Demand for pulses has risen since the Indian government recently changed its domestic demand for pulses and changed its import policy.

Although Last week, the price of red bean was lower, but Prices have risen due to the lowering domestic stocks; Increasing foreign demand; increasing demand from India and Pakistan.

On June 9, the price of a basket of Irrawaddy beans was 35,800 kyats, but on June 16, it rose to 37,170 kyats per basket, according to data from the Ayeyarwaddy Trade Center.

However, market observers say that while the Indian government will also make G-to-G contracts, the price of Burmese pulses may rise, but it is unlikely that the price will rise too much due to the underlying price controls based on Indian domestic prices.

Source: BETV Business (https://www.betvbusiness.com/mm/cheaangp/1228)

Photo: BETV Business

Originally published Date - 17.6.2021

As part of the Thai government’s consistent support for R&D and scaling innovation in food technology, advanced agriculture and biotechnology, the country houses integrated R&D centres linking the public sector’s high-quality facilities with universities and private sector labs. Central to the network is Food Innopolis, an integrated food innovation complex located at the Thailand Science Park, Pathum Thani Province. Under the supervision of the National Science and Technology Development Agency (NSTDA), the complex offers comprehensive services to R&D and business development, ranging from rental space for laboratory facilities, sourcing personnel and technical assistance in R&D and business development as well as applying for approvals for entrepreneurs from Food and Drug Administration. Food Innopolis also offers networking and knowledge sharing services to members and easy access to the public sector’s facilities in food technology, food standardization and food testing.

The Philippines (PH) reaffirmed its commitment to expand two-way trade and investment ties with Switzerland (CH) and deepen cooperation in cleantech and renewable energy, infrastructure, life sciences and digital healthcare sectors ahead of the fourth Joint Economic Commission (JEC) to be held this week and the 65th anniversary of PH-CH diplomatic relations next year.

“We enjoin Swiss businesses…to look closer in the Philippines and assess the merits of investing into the country given the set of incentives that we offer, matched with unparalleled abundance and cost efficiency of labor and of course, access to strategic markets,” Department of Trade and Industry (DTI) Undersecretary Ceferino S. Rodolfo said during the virtual business forum entitled “Philippines and Switzerland: Investing Together for a Better Future.”

Despite the pandemic, bilateral trade between the Philippines and Switzerland rose to USD 764M in 2020 and Philippine exports to the European country rose 8% over the same period, said Usec. Rodolfo. Over the last five years, approved investments from Switzerland reached P1B as Swiss entities like Nestle, Franke Food Service, and CHAMP Cargosystems, among many others, continue to thrive and make it happen in the Philippines.

“Next year, we will celebrate the 65th anniversary of the diplomatic relationship and we build upon a good trade and investment relationship. We have been doing this relationship with you [since 1956], but if I look at our trade and investment bonds, they date back way more than a century [before] we started the diplomatic relationship,” said Alain Gaschen, Swiss Ambassador to the Philippines.

“I would really like to take this forum to convince anyone out there that investing in the Philippines is not only something that will help your business, it will also be something that could help the country,” Dr. Urs Lustenberger, President of the Swiss-Asian Chamber of Commerce said. “The Philippines is a great place, has fantastic people – a hundred million of them – which provides not only a market for themselves [but also] a good base for expansion into Asia.”

Priority Investment Sectors

Three breakout sessions were held in parallel to focus on the Philippines’ priority investment sectors.  One of these sectors geared for closer collaboration is clean technology and renewable energy (RE), which is especially relevant as the Philippines seeks to increase the share of renewables to more than half of power generation mix by 2040. The investment opportunities in RE lie in upstream development, generation, retail, transmission, and distribution, according to Mylene C. Capongcol, Director, Department of Energy.

The breakout session was led by David Avery, Head of Cleantech at Switzerland Global Enterprise (S-GE) and featured insights from Marc Krebs, co-founder of Tide Ocean and Romil Jagunap, General Manager of DKSH Philippines.

Similarly, Swiss organizations can look into supporting the development of the Philippine infrastructure sector. Switzerland is a donor and shareholder of the Asian Development Bank since 1967, helping the Manila-based multilateral lender finance the growth aspirations of countries like the Philippines.

The break-out session was led by Patrick Renz, Board Member of Asian Developmen Bank (ADB) and Kelly Bird, Country Director of ADB. It featured insights from Department of Transportation Undersecretary Timothy John R. Batan and Michele Molinari, Member and CEO of Molinari Rail as well as a testimonial from Christophe Lejeune, General Manager of SIKA Philippines.

Health is another sector that can benefit from Swiss expertise, especially as the pandemic highlighted the urgent need to digitize and increase the resilience of the healthcare system.

The discussion was led by Dr. Dennis Ostwald, CEO at WifOR Institute, Sonja Haut, Head Strategic Measurement and Materiality at Novartis, and facilitated by Dr. Stephan Mumenthaler, Director General at ScienceIndustries. It featured insights from Jeff Williams of the Health Information Management Association of the Philippines, Diana Cortesi of Basel Area Business & Innovation, and Dr. Raymond Sarmiento of the National Telehealth Center.

Improving PH-EFTA Utilization

Swiss companies looking to expand their markets can leverage the PH-European Free Trade Association (PH-EFTA) free trade deal that was signed in 2018. Before the deal came into force, Swiss companies paid USD 10.5M in duties on USD 226.7M in exports per annum in 2017, according to an analysis by Professor Patrick Ziltener of the University of Zürich.

“In 2018, the year prior to entry into force of the PH-EFTA, we had a trade deficit vis-à-vis the EFTA countries to the tune of about USD 61 million. On the first full year of implementation in 2019, we turned that around so we already had a surplus of USD 47M,” said Usec. Rodolfo, adding that the experience was similar when the country’s bilateral FTA with Japan came into force.

When the deal came into effect in 2018, Swiss companies exporting to the Philippines managed to save roughly USD 234,000, but still shelled out USD 7M in duties, Ziltener’s study shows. In 2019, the year completely covered by the FTA, the utilization rate of PH-EFTA was around 14% and low on a product-by-product basis, with food preparation and pharma having low utilization rates, while textiles, many metal products, and machines at 0%. “Utilization to increase over time…but proactive information campaign seems necessary,” Ziltener noted.

In a separate study, Ambassador Markus Schlagenhof, State Secretariat for Economic Affairs, cited how Philippine exporters to Switzerland saved roughly half a million Swiss francs in 2019 thanks to PH-EFTA, translating to a 24% savings rate. Swiss companies exporting to the Philippines saved CHF 1.3M or 20% savings rate over the same period.

“We all agree these rates are still very low but the agreement is also very young…and the potential is still largely underutilized. I am confident that when economic cooperators learn more about this agreement, we further have to promote it, in a couple years’ time, it certainly will be much higher than it is right now,” Schlagenhof said.

The webinar was organized by the Philippine Trade and Investment Center in Bern together with the DTI Board of Investments, Philippines-Swiss Business Council, and the Swiss Embassy in Manila in coordination with Switzerland Global Enterprise and the Swiss-Asian Chamber of Commerce. It is part of an ongoing initiative to start a conversation on rebooting the economy through investments in targeted sectors.

Source: www. dti.gov.ph

Originally published last June 18, 2021.

Read the full article here.

MANILA – Allowing 100% operating capacity even during the Enhanced Community Quarantine (ECQ), coupled with the gradual economic recovery of its major trading partners from the COVID-19 pandemic, Philippine exports in April 2021 were up again, this time by a hefty 72.1%, to USD 5.71B from USD 3.32B in the same month last year, preliminary data from the Philippine Statistics Authority (PSA) showed. The country’s growth rate was the highest among select Asian economies surpassing even that of Japan’s 38.0% and China’s 32.3% growth rates.

Department of Trade and Industry (DTI) Secretary Ramon M. Lopez noted that this was the second consecutive month of positive year-on-year (YOY) growth, following the 33.3% revised growth rate in March. Cumulative export earnings from January to April 2021 amounted to USD 23.37B, up by 19% from the USD 19.63B in the same period in 2020. 

“Our latest export growth rate shows that we are steadily recovering from the negative impact of the COVID-19 pandemic.  It can be considered a solid growth considering that the performance was even stronger than the pre-pandemic levels in 2019, and not just due to the low base in 2020.  The recorded amount of USD 5.71B for April 2021 was higher than the recorded amount of USD 5.65B in 2019.”

Meanwhile, for year-to-date (YTD) exports, or from January to April 2021 figures still showed improvement, posing USD 23.37B. This is a huge increase compared to the 2020 YTD of USD 19.63B and also growth from the pre-pandemic YTD exports of USD 22.23B.

Semiconductors are still the top export product, comprising 42.2% of all exports. Exports of the said product grew by 40.4% YOY.

Out of all the export products, ignition wiring sets for vehicles, aircraft, and ships had the highest growth at 1,237.6%. This was followed by metal components at 345.2%. 

Sec. Lopez shared that looking at the total trade data, the YOY doubling in imports of manufacturing inputs such as raw materials and intermediate goods (118.6%) and capital goods (104.8%) also signals that local manufacturing is ramping up.  

China was the country’s top export market in the review period, receiving 16.7% of all exports, followed by the United States (US) at 15%. Both markets are experiencing brisk economic recoveries, which bodes well for the Philippines.  

In April, China’s imports growth reached a decade high of 43.1%, the highest since 2011. In the US, there were 742,000 new jobs in the private sector, with the leisure and hospitality sector opening up and hiring 237,000 workers in the said month.

Other top markets were Japan (14.3%), Hong Kong (12.9%), and Singapore (5.5%). By region, the Philippines exported half of its goods to East Asia. 

To maximize the gains from the revival of the global economy, Sec. Lopez mentioned DTI is working to increase market access. He also stated that DTI is pushing for the ratification of the Regional Comprehensive Economic Partnership (RCEP) this year, to open more market opportunities and further boost exports for the country.

“As we gradually and safely reopen our economies both locally and abroad, we are confident that we will see a sustained improvement in our export growth rate this year,” said the trade chief.

According to the United Nations Conference on Trade and Development (UNCTAD), the positive outlook for 2021 remains largely dependent on subsiding pandemic restrictions. Nevertheless, the fiscal stimulus packages, particularly in developed countries, are expected to strongly support the global trade recovery throughout 2021. 

Originally published last June 11, 2021

Source: https://www.dti.gov.ph/news/exports-growth-accelerates-april-up-72/

Department of Trade and Industry (DTI) Secretary Ramon M. Lopez, together with fellow Trade Ministers, called for the urgent collective action at the global level to enhance access to vaccines and critical, life-saving goods at the Asia-Pacific Economic Cooperation (APEC) virtual Ministers Responsible for Trade (MRT) Meeting held on 5 June 2021. New Zealand chairs APEC this year with the theme, “Join, Work, Grow. Together.”

At the meeting, Sec. Lopez stressed that achieving herd immunity remains to be one of the Philippines’ top priorities. He said, “If there is one urgent matter that APEC can address, it is broadening the reach and access of vaccines for humanity.”

The trade chief also welcomed discussions happening at the World Trade Organization (WTO) to aid global production of vaccines and called for an open approach to democratize the manufacture and distribution of vaccines through technology transfer, compulsory licensing, and time-bound licensing of intellectual property rights. The MRT meeting was attended by Ministers from countries that are responsible for majority of the world’s COVID-19 vaccine production.

Sec. Lopez pointed out that the enormous production capacity of Asia and Latin America remains untapped.

“Governments, private sector, and research institutions must work together to stimulate broader vaccine production and unhampered distribution of quality and affordable vaccines and essential goods,” he explained.

Meanwhile, on trade reforms, Sec. Lopez announced that the Philippines has established its trade facilitation committee in compliance with the WTO Trade Facilitation Agreement to reduce the cost of trade transactions and improve international trade.

To contribute to a successful 12th WTO Ministerial Conference, the trade chief also underscored the importance of safeguarding and modernizing the WTO through reforms to improve its dispute settlement and negotiating functions. He said, “APEC should ensure that the WTO dispute settlement process remains relevant and fully functional.”

APEC has a long history of providing leadership in WTO issues especially in the next-generation trade issues such e-commerce, women’s economic empowerment, investment facilitation, and services.  In particular, the Philippines championed the integration of micro, small, and medium enterprises (MSMEs) in trade, which has led to the creation of the Informal Working Group on MSMEs at the WTO, currently made up of 91 member countries. APEC Trade Ministers successfully concluded the meeting by issuing a statement on APEC’s strong commitment to bolster actions in tackling the impacts of the COVID-19 pandemic and in enabling a strong economic recovery for all people. The Trade Ministers also welcomed two outcome documents: (1) Statement on COVID-19 Vaccine Supply Chains and (2) Statement on Services to Support the Movement of Essential Goods.

Originally published last June 9, 2021.

Source: https://www.dti.gov.ph/news/dti-urges-equitable-access-covid19-vaccines-apec-mrt-meeting/

The Philippine Trade and Investment Center – Hong Kong Special Administrative Region (SAR) or PTIC-HK conducted a Trabaho, Negosyo,  Kabuhayan (TNK) webinar series entitled “OFBank Digital Banking, Be E-Safe” together with the Philippine Consulate General Hong Kong SAR (PCGHK), Overseas Workers Welfare Association (OWWA), and Overseas Filipino Bank (OFBank) on 9 May through Zoom.

PTIC-HK invited LandBank of the Philippines’ Overseas Representative Officers, Mr. Leover A. Loyola (South Korea and Taiwan) and Mr. Francis G. Fellone (Middle East) as speakers. During the main part of the webinar, the speakers underscored the importance of using safe online bank and provided information regarding the different kinds of schemes and guidance on how our Overseas Filipino Investors (OFIs) may avoid falling into these traps.

In the opening remarks, Deputy Consul General (DCG) Germinia Aguilar Usudan, in her special message to the 332 OFIs who attended the webinar through Zoom and the thousands who watched the video in Facebook, emphasized that it is not impossible for our OFIs to also be business owners in the future. DCG shared the story of an OFI in Indonesia who makes batik barongs which are worn by celebrities and Indonesians; and the story of Michael Cinco in Dubai who makes gowns for the royal family in Middle East and celebrities around the world.

During the closing remarks, Welfare Attaché Ms. Virsie B. Tamayao related the topics discussed in the webinar to the reintegration of our OFIs in the Philippines when they come back home and expressed her appreciation to officials of OFBank in providing valuable information regarding safety of e-banking.

The webinar aimed to provide a discussion on the different types of scams that one may encounter when e-banking services are used, and it offered instructions to the OFIs on ways to avoid falling in these schemes.

For more information, please visit PTIC-HK’s microsite or send an email to [email protected]. You can also review the full webinar on the official social media accounts of PTIC-HK on Facebook.

Originally published last June 1, 2021

Source:https://www.dti.gov.ph/overseas/hongkong/hongkong-news/tnk-ofbank-digital-banking/