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Hong Kong Ready to Cooperate with Laos on Yuan Trading

Hong Kong has identified three areas for cooperation with Laos and Vietnam during the Secretary for Financial Services and the Treasury’s visit to the two ASEAN members on 11-14 December.


According to his official blog, Christopher Hui stated that Hong Kong is ready to cooperate with Laos and Vietnam on yuan trading, talent exchange, and green finance, as the city leverages on its key strengths as Asia’s third-largest stock exchange based on market capitalization.


Hong Kong is the largest offshore yuan trading market outside of China, handling approximately 75 percent of global offshore yuan transactions, totaling around 1.1 trillion yuan (USD 115 billion). 


In this regard, Hui urged the governments of Laos and Vietnam to “consider the benefit of issuing yuan bonds to enjoy lower-interest rate costs [and to consider] issuing offshore yuan [sovereign] bonds in Hong Kong.” 


In October of this year, Beijing allowed Laos to operate a yuan clearing center, making the country the fifth largest market in Southeast Asia.


Hong Kong also plans to negotiate a comprehensive double taxation avoidance agreement (DTAA) with Laos, bringing tax clarity to cross-border investments between the two countries. The DTAA is a pact signed by two countries that encourages trade and investment by circumventing international double taxation.


“Laos is an emerging market in the region. Politically, it will take over from Indonesia as the rotating chair of ASEAN next year. Economically, the completion of important infrastructure such as the Laos-China Railway has transformed it from a land-locked country to a land-linked country. The socio-economic benefits are obvious,” Hui stated.


The collaboration between Laos and Hong Kong extends to the talent sector, with the Hong Kong Special Administrative Region (HKSAR) government relaxing visa policies in October, allowing Lao individuals to travel for employment, training, and study in UGC-funded institutions.


Furthermore, Hong Kong aims to foster cooperation in green and sustainable finance with Laos and Vietnam. The special administrative region has taken strides in green financing, planning amendments in January 2025 to enhance climate-related disclosures by listed companies. Hui expressed Hong Kong’s readiness to share experiences and collaborate with Laos and Vietnam in this critical area.


The country has also expressed its commitment to supporting Laos’ ASEAN Chairmanship, as “Hong Kong stands ready to provide solutions for Laos and ASEAN to attract international capital to support their projects and development,” Hui said during his visit to Laos on 11 December. 


By Jonathan Meadley


Source: Laotian Times

High-Speed Rail Linking Nong Khai, Vientiane Expected to Complete in 2028

The Nong Khai-Vientiane stretch of the Thai-China high-speed rail (HSR) project is anticipated to conclude construction in 2028, revealed Thai Deputy Transport Minister Surapong Piyachote on 14 December.


With an estimated cost of THB 3 billion (approximately USD 86 million), the 7.3-kilometer section will undergo a feasibility study commissioned by the State Railway of Thailand (SRT). The final design selection is expected in the upcoming year, followed by the bidding process scheduled to kick off in 2025.


Thailand is advancing its goal of integrating the rail system with the Bangkok-Nong Khai high-speed train project, aiming to bolster regional connectivity and trade prospects with China via the Laos-China Railway. 


Notably, Thai fruit exports, particularly durian, have seen significant growth in 2023. The Nong Khai crossing has witnessed substantial growth, with fresh durian exports dominating at over THB 2 billion (USD 57 million), reflecting a 364 percent surge from 2022.


The entire Thai section of the Thai-China HSR project, covering 606 kilometers from Nong Khai to Bangkok, is in progress. 


However, the initial phase, which aims to lay 253 kilometers of tracks between Bangkok and Nakhon Ratchasima at a cost of THB 179 billion (around USD 5 billion), is only 28.6 percent complete. Delays attributed to land expropriation issues have hindered progress, impacting the project’s timeline, which ideally should now be 50 percent, as reported by the Bangkok Post.


Additionally, concerns regarding the project’s impact on World Heritage sites have prompted a wait for the assessment results required by the United Nations Educational, Scientific, and Cultural Organization (UNESCO), according to Surapong.


Nonetheless, the feasibility study for the segment connecting Nakhon Ratchasima and Nong Khai has been finalized. However, the Ministry awaits the submission of the environmental impact assessment from the SRT. 


Upon completion, these segments are expected to enhance cargo and passenger movements between Thailand and China.


By Chono Lapuekou


Source: Laotian Times

Cambodia aims to dominate the cashew market globally by 2027

To boost the domestic processing capacity and achieve Cambodia’s 2027 goal of becoming a leading nation in not just the cultivation of cashews but their processing and export, it is estimated that at least 50 medium-sized processing facilities will be required, according to insiders. At present there are three.

Uon Silot, president of the Cashew nut Association of Cambodia (CAC), shares that more than 90 per cent of the Kingdom’s raw cashews are currently exported to neighbouring countries for further processing. 

One of the existing facilities, “Cashew Village”, is tucked away in the picturesque Banteay Srei district, approximately 25km northeast of Siem Reap town and province.

Founded by Phal Phearum in 2022, this community-driven cashew processing operation has transformed from a small local endeavour to a thriving business which is ready to tap into global export markets.

The journey began with a collaborative effort between Phearum and cashew farmers from Banteay Srei and adjacent Phnom Kulen district. 

Together, they began processing cashew nuts, providing meaningful employment opportunities for six individuals, the majority of them women.

“We buy high-quality nuts from farmers and process them immediately,” said Phearum, who initially worked as a tour guide in the Angkor area after graduating.

“We want good products that will reach consumers, rather than seeing our farmers sell raw nuts to foreign companies which process them and then import the finished products back to us,” he adds.

For full article, please read here


Author: Hong Raksmey 
Source: The Phnom Penh Post 

4 luxury consumer profiles across Asia-Pacific cited

Trend forecaster WGSN has cited luxury consumer profiles reshaping the future of engagement in Asia-Pacific (APAC), which continues to represent the largest market for luxury goods accounting for nearly half of all expenditure.

In a white paper, the WGSN said the APAC luxury consumer will become more discerning, and seek hyper-relevant and seamless luxury experiences while leveraging hyper-local resources.

It urged brands to keep up with this fast-evolving cohort to retain loyalty and grow market share, and engage with them in authentic and humanizing ways through innovative technology and retail.

WGSN identified these consumers as Mindful Luxurians, Self-Rewarders, Multidimensional Escapists and Change Makers.

“Affluent and reflective, Mindful Luxurians are looking for moments of pause through leisure, luxury and wellbeing,” it said, adding they expect brands to provide value and promote local production that celebrates their culture.

 WGSN said that optimistic yet cautious, Self-Rewarders are looking to brands for empathy and support during key stages and life events.

“This means there is (an) opportunity to develop strong loyalty and followings during such events. In addition to feeling successful and rewarded, this upbeat cohort is forming smart digital purchasing habits to indulge themselves with luxury goods after years of uncertainty,” it said.

Overwhelmed and tired of mundanity, the paper said Multidimensional Escapist consumers seek moments of escapism through virtual and phygital worlds and purchases.

“Idealists at heart, Change Makers are looking for ethical and sustainable brands and retail experiences,” it added. “They look to retailers to combine products and meaning in interesting and original ways.”

WGSN said luxury consumer sentiments have evolved, and their priorities or expectations have shifted over recent years of global disruptions.

“Despite recent years of tumult and widespread uncertainty due to a shifting geopolitical order, the Covid-19 pandemic, climate change and other global issues, consumers across the Asia-Pacific region are showing resilience and optimism as their consumption reflects their hopes for the future, as well as their values for strengthened ties within their local communities,” it said.

Modest growth seen for PH garment, textile exports in 2024

Exports of garments, textile and apparel are seen growing by measly 2 percent to around $1.33 billion starting in the middle of 2024 as industry players expand into new markets to boost revenues.  

Robert Young, president of Foreign Buyers Association of the Philippines (FOBAP) and trustee for the textile, yarn and fabric sector of the Philippine Exporters Confederation Inc., said that 2024 will “not be an easy year” for the sector amid Russia’s invasion of Ukraine and the Israel-Hamas war causing disturbances in the supply chain.

Young said they are now looking for other markets that can be tapped aside from the current export markets which include the United States, Canada, European Union (EU) and Association of Southeast Asian Nations (ASEAN).

“So we are now looking for some other countries in South America and in the Middle East, we are now talking to them which somehow can add up to our production quantity,” he said. “We are already in the process of receiving orders from the new markets and the usual markets, they are still there. However, (these are) not as big as last year.”

Young sees high demand for basic wearables and fast fashion or high-end garments next year.

He said the achievement of 2-percent export growth by the middle of next year also hinges on government initiatives on establishing more free trade agreements (FTAs) with other countries, and a remedy to reduce power cost in the country or provision of energy subsidy especially in the export sector.

“Our free on board price is 15 percent higher than the ASEAN competitors therefore, it will be not an easy task for us in getting the appropriate quantity for our production,” he said.

Young said more FTAs and lower or subsidized power costs can somehow ease up production costs.

He also particularly cited the looming extension of the EU’s Generalized Scheme of Preferences Plus (GSP+) boosting the sector’s revenues.

“As far as productivity is concerned, we are ready and we have ample laborers as of now. This is due to lesser production orders,” he added.

Young also expressed hope that the labor cost will be maintained amid the proposed P150 legislated wage hike, which he said “for sure will again deter our plan or our projection to increase the export revenue in the midyear (of 2024).”

EU circularity policy marks shift from recycling to ‘resourcing’

Companies should shift to “resourcing” from “recycling” and make sure to integrate circularity strategies into their business value chains if they aim to comply with the European Union’s stringent circular economy (CE) policy, according to an international circularity expert.

Kazunori Kitagawa, chief of the Eco Management Center of the Japan Productivity Center, identified two key trends in the EU’s circular economy plan that he urged enterprises with business ties to Europe to keep up with.

One of these is the move from recycling to resourcing, in which products cannot be distributed or sold unless recycled materials are used.

“CE emphasizes resourcing over recycling,” Kitagawa said. This entails that products manufactured for use or consumption must undergo material recovery for recycling and waste management. These recycled materials and parts are resourced, either destined for the second raw materials market for manufacturing purposes or reused by the company for remanufacturing or refurbishing.

The other major trend is the integration of circularity strategies into the business value chain, which is part of the EU’s key Sustainable Product Policy or SPP, according to Kitagawa in a recent presentation.

The Sustainable Product Policy—the most important policy of the EU’s CE action plan—seeks to integrate circularity into the business value chain through designing products that are more durable and easy to repair and upgrade, and total life-cycle management.

 “Ultimately, companies have a responsibility to build and operate a total value chain management that incorporates product design and life cycle management systems that enable the systematic and continuous use of products and materials,” Kitagawa explained.

He added: “Through these efforts, both arteries and veins of a resource supply chain, which had been divided, will be integrated into the body of the business, making the most of the circular value of products and materials, creating a highly resilient value chain.”

In this way, since supply chain management is changing significantly from the traditional way, tracking becomes more important than ever. “This is because tracking data plays an important role in ensuring reliability and safety when using products and materials in a circular manner,” he continued.

These two CE trends are part of the EU’s ultimate objective of “decoupling,” which means creating economic systems that don’t depend on resource consumption and that separate economic growth from resource consumption.

Essentially, absolute decoupling is a “regenerative growth model that gives back to the planet more than it takes,” Kitagawa said.

MSMEs urged to use digitized financial tools

Micro, small and medium enterprises (MSMEs) are advised to utilize digitized financial tools to boost their efficiency while accessing financing they need to succeed.

Maria Isabel Ridad, founder of fintech platform Monetize, said digitization is not just a buzzword but a necessity.

“It starts with making your data readily available so it is there when you need it. But that’s not all. Automation also comes in to take care of those manual tedious tasks and take them off your plate to reduce errors and costs, minimize your cost from these errors. And then we added a layer of artificial intelligence (AI) to give you actionable business insights,” she told exporters.
 
Ridad said digitization accelerates business’ decision-making process –financials, revenue streams, expenses, disbursement to suppliers and employees, and unifies systems.

She said the Monetize is engineered with AI that minimizes errors and helps the MSMEs make smarter decisions faster.

“With Monetize, uploading your bank statements –whether manually or automated– the flow of funds is tracked, your disbursements and your collections, the inflow and outflow for your back account and payments to your suppliers, to your team, uploading of financial statement, so you can have immediate overview of where you are,” she added.

Apart from AI-based business advisory, Ridad said the platform has a marketplace for businesses needing to access financing.   

She said MSMEs do not need to approach traditional financial institutions and go through a very long application process.

“(So) Monetize is not just about adopting another business tool. It is about embracing a comprehensive future-proof solution especially designed for MSMEs. It is about embarking on a transformative journey to digitize your business, make smarter decisions and ultimately drive sustainable growth,” she added. 

Millennial health, wellness trends cited

WGSN, the world’s leading consumer trend forecaster, has cited opportunities across food, drinks and snacks to help millennials achieve their health and wellness goals as they age.

Katharine Schub, WGSN Food and Drink Strategist, said convenient lifestyle diets and multi-gen wellness are among the key trends in 2025.

“Aligning with our Restorative Guardians, draw on Millennials’ interest in niche diets while offering products that fit into their routines,” she said in a sample report.   

Schub said millennials are following specific diets, with plant-based, vegan, grain-free, gluten-free or FODMAP(fermentable oligosaccharides, disaccharides, monosaccharides and polyols) top of mind.

“As functional foods continue to interest this cohort, make products more accessible with ingredients from consumers’ pantries and kitchens,” she said.

On meals and snacks, the report urged businesses to partner with niche nutrition influencers on branded meals that make it easy for consumers to adhere to specific diets.

They can also offer fresh-prepared or frozen meals with short ingredient lists and no added sugar or develop drinks that feel more nourishing by highlighting whole-food ingredients.

“Make ingredient lists the focus of a product’s branding,” it said. “Display certifications on pack(s) (such as organic, non-GMO) to boost health credentials.”

Schub further said millennials also seek multigenerational healthful products as some of them have caregiving responsibilities for both children and parents or older relatives.

She said 90 percent of US millennials are willing to purchase protein powder containing ingredients made with precision fermentation.

“Explore advanced protein fortification across categories,” she added. “Make fiber, specifically prebiotic, more approachable via fun and kid-friendly textures and flavors.”

Schub further said brands can draw on global and nostalgic comfort foods rooted in millennial childhood.

“Develop products that can be personalized across different household members,” she said. “Create DIY (do-it-yourself), build-your-own meal kits to offer engaging activities for parents and their children.” 

Indonesia promotes local products in Cambodian & Import-Export Goods Exhibition 2023

The Indonesian Embassy in Phnom Penh participated in the16th Cambodian and Import-Export Goods Exhibition (CIE) held at the Koh Pich Exhibition and Convention Center, Phnom Penh (15-18/12). CIE is an annual international trade exhibition organized by the Ministry of Commerce of Cambodia.

Through the Indonesian Pavilion, the Indonesian Embassy in Phnom Penh promoted Indonesian export products, ranging from food and beverages to herbal medicines and batik. With a total area of 108 square meters consisting of 10 booths, the Indonesian Embassy in Phnom Penh became the foreign representative with the highest number of booths.

Ambassador Santo Darmosumarto of the Republic of Indonesia in Phnom Penh expressed hope that the concrete participation of the embassy could encourage an increase in Indonesian product exports in Cambodia.

Ten Indonesian companies and distributors in Cambodia participated in the exhibition, including PT. Dami Sariwana (herbal medicine manufacturer), K-1000 (distributor of Indomie and Teh Botol Sosro), Kino Cambodia, Chhivtimex Group (distributor of PT. Eagle Indo Pharma), V-Consolidated Co. Ltd (distributor of Inaco Jelly Drink), DK Enterprise (distributor of PT. Dolphin Food & Beverages Industry), Khmer Richie Foods (Distributor of PT. Serena Indopangan and PT. Siantar Top), Chip n’ Rolls (distributor of PT. Manohara Asri), as well as Golden Pearl and Manira (distributor of Indonesian batik).

The participation of the Indonesian Embassy in Phnom Penh in the 16th CIE is an ongoing effort to promote and increase Indonesian product sales in Cambodia. In addition to products from PT. Dami Sariwana, all the products displayed in the exhibition have entered Cambodia and are available for purchase in markets, minimarkets, and supermarkets.

To read full article, click here.



Author: Indonesia Embassy in Cambodia

Source: Khmer Times

Positive outlook: Businesses expect surge in demand

Micro and large-sized companies reported expectations of better business conditions in October 2023 compared to the previous month in terms of the index by business size.

Generally, these businesses felt positive regarding their performance with expectations of more activities and increased customers from higher demand for goods and services.

Meanwhile, medium-sized companies indicated slight pessimism with expectations of lower domestic spending due to people travelling overseas. Small-sized businesses reported similar business conditions in October 2023 to the previous month.

These details were revealed yesterday in Brunei Darussalam’s Business Sentiment Index (BSI) for October 2023 published by Brunei Darussalam Central Bank (BDCB).

The index is based on surveys conducted on over 500 micro, small, medium and large businesses from 11 economic sectors in the Sultanate across all districts.

The monthly index is designed to measure the level of business confidence/sentiment in the country covering various aspects, including current and future business conditions investments employment of workers, as well as costs of running the businesses. The BSI serves as a leading macroeconomic indicator with its forward-looking element in the country.

Source: Borneo Bulletin

Read the full article here

BSB ranks 4th in ASEAN in quality of living for expats, says report

Bandar Seri Begawan was fourth highest ranked city in Asean after Singapore, Kuala Lumpur and Johor Bahru in the Mercer’s 2023 Quality of Living report published recently.

According to the report, Singapore was the highest ranked city in ASEAN at 29th out of 241 destinations. Kuala Lumpur and Johor Bahru in Malaysia ranked 89th and 107th place.

The Sultanate’s capital Bandar Seri Begawan is at 112th place, falling from its 106th ranking in 2019.

Meanwhile, Bangkok, Thailand ranked 124th, Manila, Philippines ranked 135th, Jakarta, Indoneisa 148th, Hanoi, Vietnam 167th, Vientiane, Laos 180th and Yangon, Myanmar in 226th.

Globally, Vienna ranked first in the report for providing a high quality of living for international employees in 2023.

The Mercer’s Quality of Living data assesses the practicalities of daily life for expatriate employees and their families in assignment locations worldwide.

According to the report, following years of unprecedented and unpredictable times, the factors that influence the world’s economy have a direct impact on the quality of living.

“The current global landscape is affected by geopolitical turmoil, natural disasters and other economic challenges, all of which have significant implications for cities and their ability to attract and retain talent,” said Mercer’s global head of mobility Yvonne Traber.

Source: Borneo Bulletin

Read the full article here

Japan’s NTT Group keen to invest in Cambodia’s telecom sector

Japanese telecommunications company, NTT Docomo Inc., member of the world-renowned Nippon Telegraph and Telephone Group (NTT Group), has expressed the company’s desire to invest in the Cambodian telecommunications sector.

The company’s intentions cropped up during a meeting between President of NTT Docomo Inc., Li Motoyuki and Prime Minister Hun Sen on the sidelines of the ASEAN-Japan Commemorative Summit for the 50th Year of ASEAN-Japan Friendship and Cooperation on Tuesday evening.

In the course of the meeting, Li appraised Mr Hun Manet and members of the Cambodian Chamber of Commerce (CCC), on the company’s telecommunications activities in Japan and internationally, which include the provision of 4G and 5G services, satellite and mobile systems.

Li also detailed NTT Docomo’s partnership with NTT Group to research and develop 6G technology for future rollout and expressed the company’s intention to expand its investment in Cambodia.

Mr Hun Manet welcomed the investment suggestions made by NTT Docomo Inc. in the telecom sector saying the Royal Government of Cambodia has mandated the prioritization of the nation’s digital economy development.

This is as stipulated in the Government’s Pentagonal Strategy Phase I for Cambodia’s socio-economic development, he said.

To read full article, please click here.


Author: James Whitehead

Source: Khmer Times

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