SIEM REAP (Xinhua) - The 15th ASEAN Investment Area (AIA) Council meeting was held here on Monday afternoon to review developments in the AIA and to discuss ways in attracting more foreign direct investment into the ASEAN region, said a senior ASEAN official.

The AIA Council comprises of ASEAN ministers responsible for investment. The meeting was chaired by Kong Vibol, secretary of state of the Economy and Finance Ministry and vice chairman of the Council for the Development of Cambodia, and was also attended by Dr. Surin Pitsuwan, ASEAN secretary-general.

The meeting had agreed to do more in terms of rules and regulations in order to present ASEAN as 'one investment area', Surin told Xinhua after the meeting.

"We need to do more to increase the confidence of external potential investment coming into ASEAN," he said, adding that last year, the bloc attracted a large amount of investment - about 90 billion U.S. dollars.

"We also agreed to work closely with dialogue partners and wanted their participation within the ASEAN investment area," he said.

On the same day, the 26th ASEAN Free Trade Area Council meeting was also held to further discuss trade facilitation within the region.

The topics of discussion include elimination of non-tariff barriers that impede trade, simplification of rules and procedures of doing business and enhancing the use of information and communication technologies in customs clearance of goods within the region.

The two meetings are among a series of the week-long 44th ASEAN Economic Ministers Meeting.

Website: http://www.philstar.com/Article.aspx?articleId=842740&publicationSubCategoryId=200

Sources:  The Philippine Star

28-8-2012

Intel explores investment opportunities

in Thailand

Asina Pornwasin
The Nation August 28, 2012 1:00 am

 Arvind Sodhani

Investment arm of tech giant urges improvement in broadband access

Intel Capital plans to invest US$300 million (Bt9 billion) to $500 million this year around the globe.

Intel Capital - which sees Thailand and Southeast Asia as emerging markets - has so far invested in 52 countries. In Asia, the company has invested in China, India, Japan, Taiwan, Korea, Singapore, and Vietnam.

Arvind Sodhani, president of Intel Capital, said Intel Capital continues to look to invest in companies in this region. The Asean Economic Community (AEC) will help companies as they will be able to do business in 10 countries and target the region.

Thailand and Southeast Asia are growing rapidly and they have the potential for substantial expansion. Some changes in infrastructure, such as access to broadband, will dramatically change the landscape. He said the access to broadband in Thailand is very low and that needs to be improved. It will help entrepreneurs and SMEs grow their businesses.

"We hope that broadband penetration will be expanded and the government and the authorities will do everything to promote it," Sodhani said. "We know that broadband is a key driving factor in economic growth around the world. The broadband penetration rate in Thailand is still very low. It needs to be expanded dramatically. Thailand is driven by SMEs and we would like to make Thailand the 52nd country where Intel Capital has invested in," said Sodhani.

He said the company has two main criteria before it invests in companies. The first is strategic interest. It wants to make sure the investment is in a technology company. Is the technology relevant to Intel? The strategy is to help enhance the overall goal of increasing penetration and usage. The second is financial viability. The company wants to make sure that everything it invests in, is financially successful.

"The company [we invest in] has to have the right management skill set. It is critically important to have a management team that has the ability and the vision to grow the company. We want to invest in companies that will be successful in the long-term," said Sodhani.

The areas Intel Capital is interested in are education, software, data centre, consumer Internet, e-commerce and cloud computing. Sodhani added that this year, Intel Capital will invest $300 million to $500 million. It has already invested about $200 million in the first half of this year.

"It depends on how many right companies we find and how many companies we close a deal with. Thus, it is hard to predict exactly how many companies Intel Capital will invest in," said the president of Intel Capital.

The company has invested 50:50 in and outside the US. Over the years, it has been increasing the investment percentage outside the US. There are many factors driving the increase, including rapid growth of GDP in developing countries, and growing technology adoption. Technology adoption in Southeast Asia is also rising very rapidly.

"The investment in companies outside the US will be 50 per cent or more for this year," said Sodhani.

"We see a lot of companies, but we invest in only a select few. We try to find the right company to invest in, which means companies that have the right management and the desire to grow and to become a regional company, not just local company. They have ability to hire people. And that's where we could come in and provide the financial and technological know-how, and global relationship," said Sodhani.

Most of the companies Intel Capital invests in are start-ups who have $2 million to $10 million revenue. During the last year until now, Intel invested in 89 new companies, 51 per cent outside the US. It invested $526 million last year. It has six IPOs in the portfolio and 28 acquisitions.

Intel Capital is the investment arm of Intel Corporation. It was started in the mid-80s, with investments in start-up companies in the Silicon Valley. Many people left Intel and set up start-ups, developing technology relevant to Intel's technologies such as chipset, software application.

"We have been investing every year. We started to invest outside the US in the late 90s, in countries such as China, India, Latin America, Europe. Our goal is to promote technology, technology adoption, and technology entrepreneurship," said Sodhani.

When the company promotes technology, it benefits because people buy more technology devices. "It is a direct correlation," he said.

"For example, in China and Vietnam, we have made a lot of effort to help increase PC and broadband penetrations. In most emerging countries by helping bring about investment in application, technology and innovation it helps to grow technology adoption in those countries," said Sodhani.

Meanwhile, Deepak Natarajan, investment director for Intel Capital in Southeast Asia, Australia, and New Zealand, said that on average about 5 to 10 per cent of the companies who get interviewed by Intel Capital are invested in. In Asia-Pacific, excluding China, it is 1 to 2 per cent on average.

"We see a lot of companies and business plans but we decide on those that make sense to us. We are looking aggressively to find Thai companies. We would love to be able to. But currently, we have not yet found the right companies. But we are very hopeful of finding a company in Thailand in which we can invest," said Natarajan.

Natarajan said the company wants to invest in companies who have their own products and have figured out how to sell the product and what is valuable for customers. Thus, they have to have the right management team, the ability to expand business to the region and the ability to be successful.

He said that in Southeast Asia, there are a lot of businesses going online and a lot of online businesses are e-commerce. In order to make e-commerce a success, the broadband infrastructure will have to be good.

Improvement in broadband infrastructure will make possible more innovative e-commerce.

Thailand has a lot of SMEs, which are the backbone of the economy. They do not have IT staff and do not have the ability to implement big applications. They can use applications delivered over the cloud.

So, once the broadband penetration gets better, there will be more innovation as local companies will have the ability to build innovative applications that Thai businesses can use to automate their businesses. Mobile broadband is the trend. Once the speed of mobile broadband is improved, there will be a lot of applications coming out, he said.

"We are a minority investor in each of these companies. We own 20 per cent or less in the companies we invest in," said Natarajan.

Natarajan said that Thailand is an important part of the global supply chain for two main industries - electronics and automobile. Intel Capital is looking to invest in Thai companies who provide electronic functions for cars. There are opportunities for Thailand to build an industry around that. Thailand is a major manufacturing hub in this field. It is easy to build an ecosystem around that. And Intel Capital is tracking a few companies here in Thailand.

This year, Intel Capital invested $17 million in two Southeast Asian companies - Singapore-based Reebonz.com, one of the largest private sales e-commerce groups in Asia for luxury goods 'Reebonz.com'; and an Internet infrastructure and services company Vietnam Communications Corporation. Intel sees Southeast Asia as one of the world's fastest-growing markets for high technology, driven by robust economic growth and a rising middle class. There is strong demand for e-commerce and cloud-based services across the region.

http://www.nationmultimedia.com/technology/Intel-explores-investment-opportunities-in-Thailan-30189199.html

Source: www.nationmultimedia.com

27-8-2012

India invites Chinese companies to invest

India on Monday invited China to invest in its new flagship manufacturing zones as part of a push to broaden commercial links and cut a ballooning trade deficit with its Asian neighbour.

Indian Commerce Minister Anand Sharma (R) shakes hands with Chinese Commerce Minister Deming Chen prior to a meeting in New Delhi. India on Monday invited China to invest in its new flagship manufacturing zones as part of a push to broaden commercial links and cut a ballooning trade deficit with its Asian neighbour.

India's trade deficit with China, a longstanding economic irritant between the emerging market giants, soared 42 percent to nearly $40 billion in the last fiscal year, while total bilateral trade climbed 27 percent to $75 billion.

"We've invited China to participate in and support the establishment of one or more of the National Investment and Manufacturing Zones," trade minister Anand Sharma said in New Delhi after talks with his Chinese counterpart Chen Deming.

"That is where the opportunities beckon," Sharma said in a speech to Indian and Chinese business leaders, adding the response from the Chinese to the investment proposal had been "positive and encouraging".

The zones are being set up under India's National Manufacturing Policy which aims to boost manufacturing as a percentage of gross domestic product to 25 percent from 16 percent in the next decade.

The policy is part of India's struggle to provide jobs to its growing army of young people.

Chen, in turn, said Beijing, which exports mainly capital goods such as heavy engineering equipment to India, recognised its trade relationship with India was lopsided.

"We want to buy more goods from India to grow our trade relationship in a more balanced manner," he said.

"China and India are both fortunate to have sizeable domestic markets which give us the the opportunity to offset the risks of the weak global economy," he added.

Both nations' economies have slowed due to the global downturn and in India's case to high interest rates, corruption scandals and government policy paralysis that has dampened business activity.

Deming said China's economy was expected "to grow 7.5 percent or hopefully eight percent this year," down from growth of 9.2 percent last year.

India's once-booming economy grew by just 5.3 percent between January and March, its slowest annual quarterly expansion in nearly a decade.

Diplomatic ties between China and India are prickly due to a festering border dispute and the presence of the exiled Tibetan spiritual leader the Dalai Lama in India.

But trade has surged with the two countries targeting a goal of $100 billion in bilateral trade by 2015, even though experts say the trade imbalance is unlikely to improve significantly anytime soon.

The two ministers insisted India and China should see each other as commercial partners and agreed to set up a joint working group to look at how to boost trade and investment

"Let us trust each other," the Indian trade minister said, calling on his Chinese counterpart to take back a "positive message of India's commitment to deepen and diversify its partnership with your great country."

"Both countries will grow at a faster pace through this partnership."

http://www.bangkokpost.com/news/asia/309695/india-invites-chinese-companies-to-invest

Source: www.banqkokpost.com

27-8-2012

Asian shares eases in narrow range, euro dips

 (Reuters) - Riskier assets from stocks and commodities to the Australian dollar fell on Tuesday on investor caution ahead of a gathering of central bankers and economists in Wyoming later in the week which could shed some light on further stimulus plans.

European equities were expected to follow Asia lower, with financial spreadbetters calling London's FTSE 100 .FTSE, Paris's CAC-40 .FCHI and Frankfurt's DAX .GDAXI to open down as much as 0.7 percent. .L .EU

Global markets have enjoyed broad-based gains over the past month, spurred by hopes for a third round of bond buying or other measures from the U.S. Federal Reserve to support growth, and expectations the European Central Bank soon will act to firmly cap borrowing costs and contain the euro zone's debt crisis.

But investors are growing increasingly wary of the rally, which has stretched out in absence of any concrete official action, and turned to global growth worries to dictate trade on Tuesday.

"Everybody is playing a waiting game now. Even if they are in the market, it's with a very short time horizon and in stocks that are more defensive," said Larry Jiang, chief strategist with Guotai Junan International Securities, of Hong Kong shares .HSI, which inched down 0.2 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.4 percent to a three-week low, dragged down by the materials sector .MIAPJMT00PUS.

Australian shares .AXJO pared about half of their early gains to trade up 0.2 percent as iron ore miners were hit by worries about weak global growth, while Japan's Nikkei stock average .N225 turned negative, shedding 0.9 percent under the weight of its slumping China-linked index .NCHN. .T

"People think the market is going to be tied up here ... on concerns over slowing growth in China. We have seen quite a lot of shorting on some China-linked names, some of the machinery, chemicals, that kind of stuff," a senior dealer at a foreign bank said.

Shanghai shares .SSEC steadied after tumbling to their lowest level since March 2009 on Monday on fading hopes for more "formal" monetary easing to underpin China's fragile growth, as the Chinese premier failed to refer to the possibility in recent comments.

The Australian dollar, a typical gauge for investor risk appetite and highly sensitive to the outlook of Chinese economy, hit a five-week low against the U.S. dollar of $1.0345.

Some see value stocks even in the current environment, as companies have strengthened their balance sheets by cutting costs and building cash buffers.

"The U.S. economy has picked up a little but that's coming from a low level, while in Europe, all the macro numbers seem to suggest the economy is not faring very well. There is some noise of stimulus in China but generally the exporters there haven't done too well. It's not exactly a healthy picture for the global economy," said Kwok Chern-Yeh, head of investment management, Japan, at Aberdeen Investment Management in Tokyo.

"If you look at the company level, though, while things are slowing, there are pockets of resilience in this market where companies have done relatively well," he said.

EUROPE EYED NEXT MONTH

The dollar fell 0.3 percent against the yen to 78.50 and the euro also eased 0.1 percent to $1.2486 after touching a one-week low.

Fed Chairman Ben Bernanke will speak at the annual Jackson Hole, Wyoming, meeting on Friday ahead of the Fed's September 12-13 policy meeting. He has used the event in the previous two years to signal the Fed's policy intentions. ECB President Mario Draghi is due to speak at the event on Saturday.

Next month will be pivotal for Europe, with the ECB's policy meeting on September 6, followed by the German Constitutional Court's ruling on the euro zone's permanent bailout fund on September 12.

ECB board member Joerg Asmussen said on Monday that the ECB will tailor its new bond-buying plan to dispel any concerns that it funds governments, and while he stopped short of when the bank would begin buying, he made clear the plan would go ahead despite Bundesbank opposition.

Greece will also face scrutiny next month from its global lenders who will assess Athens' progress in debt cutting efforts before deciding on further aid to keep the country afloat.

Brent crude oil steadied at $112.26 a barrel on concerns that a storm heading toward the Gulf of Mexico could strengthen into a hurricane, but U.S. crude fell 0.2 percent to $95.32. <O/R>

"Oil is doing what a lot of risk assets are doing these days," said Ric Spooner, chief market analyst at CMC markets in Sydney. "We are now at a watershed level, after a significant rally and there is a reluctance to push prices above current levels, until we get details beyond the initiatives."

Spot gold slipped 0.2 percent to $1,659.75 an ounce, after touching a 4-1/2 month high of $1,676.45 on Monday. <GOL/>

Copper dropped 0.8 percent to $7,577.75 a tonne.

Despite weak equities, Asian credit markets were resilient, with the spread on the iTraxx Asia ex-Japan investment-grade index widening a scant 1 basis point.

(Additional reporting by Clement Tan in Hong Kong, Dominic Lau in Tokyo and Ramya Venugopal in Singapore; Editing by Eric Meijer & Kim Coghill)

http://www.reuters.com/article/2012/08/28/us-markets-global-idUSBRE86F00620120828

Source: www.reuters.com

27-8-2012

Myanmar signals entry into strategic reform

Updated: 2012-05-12 19:34 ( Xinhua)

YANGON - Myanmar President U Thein Sein has signalled that the country is entering into a "second-step strategic reform", calling for more practicable  national and regional development tasks in the reform process for national development.

As the first step of its reform, the new civilian government, since taking office on March 2011, "has been undertaking a series of reform covering national solidarity, prevalence of peace and stability, ensuring security of the people, enhancing the international cooperation and introduction of clean government an good governance  with the aim of flourishing multi-party democratic system", U Thein Sein claimed.

At a work coordination meeting of the government cabinet in Nay Pyi Taw on Friday, U Thein Sein urged continuous implementation of ministry-wise and sector-wise tasks that need reform for enhancing the socio-economic status of the people as the "second-step strategic reform".

He underscored the need for seeking financial aid and support from the international community and direct investment from sources at home and abroad without relying solely on the state funds.

He stressed the need to form Myanmar Socio-Economy Advisory Council to enable social organizations and private sector to make coordination among them  and submit suggestions to the government, underlining that associations, companies, public companies, cooperative societies and  foundations are the main forces engaged in the development of socio-economic status of the people.

Responding to the offer of world nations to provide assistance to and to invest in Myanmar, he told the ministries and region or state governments to draw strategies and tactics, based on national and regional development projects, for ministry-wise and job-wise reform covering such sectors as agriculture, industry, education and  health, and to implement them area-wise according to priority list.

Noting that demand for skilled works at different levels in banking, hotel and tourism industry and other investment sectors, U Thein Sein reiterated its invitation to Myanmar citizens including technicians, experts and businessmen, who are living abroad for various reasons, to come back home to serve the country, while promising necessary assistance to them in doing businesses in the nation if meeting with difficulties.

He emphasized the need to allow opening of universities, colleges and courses of international standard for generating more jobs, and to turn out skilled teachers through international aid.

He also stressed the need to allow private investment in opening hospitals and clinics to provide public healthcare.

In conducting reform, he called for polishing the morality and attitude of grass root-level administrators in their performances, avoiding corruption, bribery and unfriendly relations with the public.

He called for doing business and making investment in line with the laws, rules procedures without irregularities and mobilizing public cooperation without putting reliance on a handful of people alone, saying that "only then will the country be able to do good practices on a par with the international community".  

The special coordination meeting of the government cabinet  was also attended by Dr. Sai Mauk Kham, one of the two vice presidents, deputy speaker of the House of representatives U Nanta Kyaw Hswa, government ministers, region or state chief ministers, and heads of self-administered zones.  

The government cabinet meeting, which is to go on Saturday, came more than a month after the end of April 1 by-elections and 10 days after the end of the third session of the parliament.

http://www.chinadaily.com.cn/china/2012cnmytour/2012-05/12/content_15277783.htm

Source: Chinadaily.com.cn

Attracting foreign direct investment

From the Newspaper | 1 day ago

THERE is keen competition among developed and developing countries to attract foreign direct investment (FDI). This drive to lure investment often extends to the subnational level, with different regional authorities pursuing their own strategies and assembling their own baskets of incentives to attract new investments. Various reforms and strategies have been implemented, with mixed results. Some are critical of the high costs of many of these initiatives, arguing that it would be more rewarding to improve a country’s general business environment.

The many different methods used by policymakers to attract FDI and their effectiveness are as follows:

Providing targeted fiscal incentives, such as tax concessions, cash grants, and specific subsidies; improving domestic infrastructure; promoting local skills development to meet investor needs and expectations; establishing broad-reaching FDI promotion agencies; improving the regulatory environment and decreasing red tape; and engaging in international governing arrangements.

Promotional efforts to attract foreign direct investment have become the important point of competition among developed and developing countries. This competition is also maintained when countries are adopting economic integration at another level.
While some countries lower standards to attract FDI in a ‘race to the bottom,’ others praise FDI for raising standards and welfare in recipient countries.

Sound investment climate is crucial for economic growth. Microeconomic reforms aimed at simplifying business regulations, strengthening property rights, improving labour market flexibility, and increasing firms’ access to finance are necessary for raising living standards and reducing poverty in a country.

The government claims to have brought foreign investment to the billion dollars mark this year. But that is a fallacious claim since the money has come on account of privatisation of government-owned entities. There has only been a transfer of assets from the public sector into private hands; no new generation of activity in the retail or production sector, which is badly wanted to address the twin problems of poverty and unemployment.

The situation underscores the need not only to remove administrative hurdles but also to create ease of operations vis-à-vis law and order and the socially restrictive atmosphere.

Governments that emphasise flexible demand-driven strategies, target in high value-added areas, and coordinate education and training policies are more likely to lead the country into a virtuous circle.

http://dawn.com/2012/05/20/attracting-foreign-direct-investment/

Source: Dawn.com Newspaper

ASEAN, Japan eye 10-year road map to double trade

ECONOMIC MINISTERS from the Association of Southeast Asian Nations (ASEAN) and Japan aim to finalize a 10-year road map to double trade between the region and the world’s third largest economy, a statement posted on the Web site of Japan’s Ministry of Economy, Trade and Industry (METI) last week said.

METI said in its statement that the ASEAN-Japan 10-year Strategic Economic Cooperation Roadmap will be presented for approval when ASEAN economic ministers (AEM) and METI counterparts meet in Cambodia in August.

It added that the road map will be based on results of informal AEM-METI consultations during the ASEAN road show in Japan last April 25-28.

Proposal for such a road map was first raised during the AEM-METI meeting in August last year, “with a vision of doubling trade for the mutual benefit of ASEAN and Japan,” the statement said.

Data on ASEAN’s Web site show trade between Southeast Asia and Japan totaled some $206.6 billion in 2010, making the latter the region’s third biggest trading partner after China and the European Union that year.

The road map will focus on five priority areas, namely: trade and investment liberalization, facilitation and promotion; system harmonization; improvement of logistics and distribution networks; narrowing development gaps; and promoting advanced industrial development.

The statement added that “a follow-up mechanism for implementation of the road map” will also be established.

ASEAN and Japan officials also said they hope to launch talks for the Regional Comprehensive Economic Partnership by yearend.

The envisioned pact will involve all 10 member countries of ASEAN -- the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam -- as well as Australia, China, India, Japan, New Zealand and South Korea.

ASEAN and METI officials also pushed for the continued review of existing trade agreements between ASEAN and Japan, “with a view to advancing wider regional integration.” ASEAN itself targets intra-regional integration by 2015.

Bilateral trade pacts between Japan and ASEAN members should also be “improved into more user-friendly agreements [sic] which include support for seamless business environments through the reduction of barriers in the areas of transportation, distribution and logistics,” the statement said.

The Philippines itself had signed a wide-ranging economic partnership agreement with Japan in 2006. Both countries are set to review the bilateral pact this year. -- KAMP

http://www.bworldonline.com/content.php?section=Economy&title=ASEAN,-Japan-eye-10-year-road-map-to-double-trade&id=51639

Source: BusinessWorld

NEW DELHI: Singapore and India have reaffirmed the excellent state of bilateral ties, and the broad scope of cooperation.

These cover political engagement, defence, trade and investment, education, and arts and culture.

On Thursday, Singapore's Minister for Foreign Affairs and Law, Mr K. Shanmugam, met India's Prime Minister Dr Manmohan Singh during his four-day introductory visit to India.

Singapore's Ministry of Foreign Affairs (MFA) said PM Singh said that he looked forward to the official visit of Prime Minister Lee Hsien Loong to India in July 2012.
 

Source:channelnewasia

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1200454/1/.html

PHL, Lao PDR explore trade and investment opportunities

Saturday, 12 May 2012 18:52 Jonathan Mayuga / Reporter

THE Philippines and Lao People’s Democratic Republic began exploring new trade and investment opportunities on Friday, with both governments promising a more business-friendly policy environment for the business sector.

Prime Minister Thongsing Thammavong, who led Lao PDR’s 24-member official delegation to Manila, assured Filipino businessmen of equal opportunities with their businessmen as he encouraged members of the Philippine Chamber of Commerce and Industry (PCCI) to explore business opportunities in his country.

Speaking before Philippine and Lao government and business leaders during a business meeting initiated by the Philippine-Lao Business Council (PLBC) at the Sofitel Philippine Plaza Hotel in Pasay City on Friday, Thammavong said he was confident of enhancing bilateral cooperation with the Philippines. Just hours after arriving in Manila on Thursday, he signed four new agreements with the Philippines in Malacañang.

The prime minister thanked President Aquino and the PLBC, which organized the Sofitel meeting that provided a great opportunity for government and business leaders of both countries to more thoroughly discuss ways of strengthening bilateral cooperation in trade and investment.

Through his interpreter, he underscored the importance of international cooperation to improve trade and investment and promote economic development in the region.

“In this globalizing world, we should never ignore the importance of international cooperation; toward this end, Lao PDR gives great importance to widening arenas, namely, in regional, sub-regional and bilateral levels,” he said.

The Philippines and Lao PDR are members of the Association of Southeast Asian Nations (Asean). They began formal bilateral-trade cooperation in 2007. The prime minister said Lao PDR and the Philippines have been enjoying good relations since then.

Lao PDR’s “open door” policy, Thommavong said, makes his country a promising investment hub in Asia because of its strategic location and vast natural resources. He said Lao PDR’s laws also provide adequate protection for both local and foreign investors.

He said Lao PDR is finalizing negotiations for its membership in the World Trade Organization (WTO), seeing it as an opportunity to further boost the economic development of his country.

He said policy incentives have been put in place to encourage business to go smoothly and amendments of laws to make business easier and friendlier in Lao PDR.

Thammavong recognized the need for his country to encourage foreign investments, especially foreign direct investments, which have given its economy a big boost over the past decade.

Lao PDR is considered among the least-developed countries in Asia, but Thommavong boasts of his country’s steady growth in terms of gross domestic product (GDP), averaging 7 percent, over the last 10 years since, or from 2001 to 2010.

Philippine Ambassador to Lao PDR Ma. Lumen B. Isleta said Philippine exports to Lao PDR doubled—from 2010’s  $300,000 to 2011’s $600,000. Balance of trade is slightly favorable for the Philippines, with exports slightly exceeding imports.

Around 600 highly skilled Filipino workers are employed in various companies in Lao PDR.

With the renewed interest of government and business leaders from the two countries, Ambassador Isleta said she expects an increase in the number of Filipinos getting employed in Lao PDR.

“The opportunity of increasing collaboration between the Philippines and Lao PDR is bright and we hope to see businessmen from both countries investing and doing business in both countries in the future,” she said.

Minister Somdy Douangdy of Lao PDR’s Planning and Investments Ministry gave an overview of the investment climate and opportunities in Lao PDR.

The country aims for a GDP growth of 8 percent in 2012 and hopes to get a boost on private-sector investment. Mining, power generation, agriculture, handicraft and service sectors are among its top investment opportunities, said Douangdy.

The law of investment and promotion, he added, helps provide better services to investors as it advocates legal security and fair treatment, equality and free competition between local and foreign investors.

Investment in less-developed areas allow investors several tax incentives, he said. The income-tax rate for special economic zones is also set at a flat 5 percent.

Foreign investors, he added, can also invest in real-estate and property development, as they can enjoy more efficient or smoother investment application services.

Kissana Vongsay of the Lao National Chamber of Commerce and Industry vowed to work with his counterpart to improve cooperation between the Philippines and Lao PDR and make their countries perfect for foreign investment.

Before the business meeting, Thammavong visited the International Rice Research Institute (Irri) in Los Baños, Laguna, to witness the signing of a memorandum of understanding formalizing research collaboration between Lao PDR and Irri.

Through this collaboration with Irri, Thammavong expressed confidence that Lao PDR would be able to improve its rice production and achieve its goal of becoming a rice exporter. Lao PDR became self-sufficient in rice in 2009, he said.

Local officials, led by Laguna Gov. Jorge Estregan Jr., and Irri Director General Robert Zeigler, welcomed Thammavong during his visit.

The prime minister and members of the official delegation of Lao PDR were accompanied by Agriculture Secretary Proceso Alcala, who initiated talks with his counterpart to explore possible areas of cooperation between the two countries in agriculture.

Thammavong donated some traditional Lao PDR rice-farming tools to Irri’s Rice World Museum, which showcases rice-farming tools of various rice-producing countries. Also, Thammavong visited Irri’s rice-gene bank.

Alcala met with Lao PDR Deputy Minister of Agriculture and Forestry (MAF) Phouangparisak Pravongviengkham and both agreed to work together to help boost food production in their two countries.

“Within two weeks they will give us a concept paper and from there, we will start working on agricultural collaboration,” Alcala said. Exchanging experiences and agricultural technology with Lao PDR will provide a boost to both countries’ food-security targets and goals, Alcala said.

Cristino L. Panlilio, undersecretary for the trade and investment promotions group of the Department of Trade and Industry, also assured Lao PDR’s businessmen of tax perks under various programs of the government to promote foreign investment in the Philippines.

Panlilio said the Philippines continues to experience economic growth. Business is “more fun in the Philippines” because of the government’s strong fiscal policies and incentives that are being offered to foreign businessmen who invest in the Board of Investments’ Investment Priority Program and the Philippine Economic Zone Authority , he said.

Panlilio encouraged businessmen from both countries to take advantage of the opportunities offered by the bilateral cooperation treaties signed between the Philippines and Lao PDR.

Ambassador Antonio Cabangon Chua, former Philippine envoy to Laos PDR and chairman of the PLBC, and Miguel Varela, president of PCCI, welcomed Thammavong and members of the official delegation after the business meeting.

The meeting, according to Cabangon-Chua, aims “to promote and expand businesses between the two countries” and as a strategy to boost the economies of the Philippines and Lao PDR.

Varela said the PCCI, along with PLBC, would return the favor by sending a business delegation to Lao PDR. He said the business meeting was just the start of more such meetings between the two countries.

“Regardless of how big or small a country is, having friendly trade relations with another country is beneficial to the economy of both countries. It helps create jobs and spur economic activities,” he told the BusinessMirror in an interview.

He said the PCCI will pursue private-to-private meetings with its counterpart in Lao PDR “to return the favor,” even as he noted the “good gesture” the Lao PDR prime minister leading and bringing in his country big business players to the Philippines.

“We will be organizing private-to-private meetings soon,” he said.

According to Varela, the meeting was timely, considering the need to strengthen and expand economic and trade within Asean and the rest of the world.

The emergence of Asean and Asia has put the region in the center of the global trade and investment map, with its huge market of 5 billion people and the resources that can be tapped within its shores.

Thammavong and members of his official delegation were scheduled to return for Lao PDR on Saturday at the conclusion of their three-day official visit in the Philippines.

In Photo: Lao PDR Prime Minister Thongsing Thammavong (right) and Ambassador Antonio Cabangon Chua, former envoy to Lao People’s Democratic Republic (PDR) and chairman of the Philippine-Lao Business Council (PLBC), at a business meeting initiated by the PLBC held at the Sofitel Philippine Plaza Hotel. (Nonoy Lacza)

Source: Business Mirror

http://businessmirror.com.ph/home/top-news/27049-phl-lao-pdr-explore-trade-and-investment-opportunities

Vietnam hosts US-ASEAN relationship forum

VietNamNet Bridge – The Vietnamese Embassy in the US, in coordination with the Southeast Asia Roundtable Forum, held the second Vietnam Forum on the US-ASEAN relationship, in Washington DC on May 10.

Present at the forum were ambassadors and diplomats from 10 ASEAN countries and representatives from the Australian Embassy and the US Department of State and Department of Defense as well as non-governmental organizations in Washington DC.

Speakers, including professor C.Dalpino from Johns Hopkins University and Nirav Patel, Deputy Assistant Secretary of State for Strategy and Multilateral Affairs, introduced the foreign policies of President Barack Obama’s administration on the Asia-Pacific region and ASEAN in particular.

Nirav affirmed that the US has made great efforts to promote comprehensive cooperation on politics, security, economics, trade and investment with countries in the Asia-Pacific region. The US supports ASEAN’s key role in the region and will closely cooperate with ASEAN for the sake of security, peace, development and prosperity.

Vietnamese Ambassador to the US, Nguyen Quoc Cuong, praised the US’s commitments to contributing to regional peace, stability and development and wished that the US would have concrete programmes to promote US-ASEAN relations.

VietNamNet/VOV

Source: Vietnamnet Bridge

http://english.vietnamnet.vn/en/politics/22257/vietnam-hosts-us-asean-relationship-forum.html

China signs investment agreement with Japan, ROK

Updated: 2012-05-14 03:54

By Li Jiabao and Li Xiaokun (China Daily)

China, Japan and ROK on course for landmark regional trade pact

A "milestone" investment agreement between China, Japan and the Republic of Korea was signed in Beijing on Sunday, after years of negotiations, while the leaders of the three nations announced that talks focusing on a free-trade agreement would be launched within the year.

Aside from substantial economic benefits, experts said that the FTA, if realized, could help ease regional tension and possibly lead to a more integrated Northeast Asia.

Washington, which is pushing forward its Trans-Pacific Partnership, should not feel concerned about the potential three-way FTA as any future agreement will also be in the interests of the US, experts said.

Trade ministers from the three countries signed a promotion, facilitation and protection of investment agreement on Sunday as their leaders — Premier Wen Jiabao, ROK President Lee Myung-bak and Japanese Prime Minister Yoshihiko Noda — met in Beijing ahead of a summit scheduled for Sunday and Monday.

"The investment agreement is the first legal document on trilateral cooperation in the economic field, it is a milestone," Wen said at a joint news conference at the Great Hall of the People.

China welcomes Japan and the ROK expanding their investments in China and hopes they will be primary destinations for China’s overseas investments, he said.

"The global economy is recovering slowly while the European debt crisis is not over," Wen said.

"The establishment of a free-trade pact will unleash the economic vitality of the region and give a massive boost to economic integration in East Asia," he said.

The investment agreement, concluded in March after 13 rounds of negotiations since 2007, includes 27 clauses and one additional protocol covering topics such as investment definition and dispute resolution, according to a statement on the website of the Ministry of Commerce.

The pact will provide a more stable and transparent investment environment for the three parties and is an important basis for the FTA, according to the ministry’s statement.

"The investment agreement and the establishment of the FTA will see China further open up its market, upgrade industries and be a new driving force for China’s economic growth,’’ Zhang Xiaoji, a researcher at the State Council’s Development Research Center, said.

The establishment of a three-way FTA could enhance China’s GDP growth by 0.5 percent and domestic employment by 0.1 percent while accelerating exports by more than 4 percent, Zhang said.

"The past three decades have seen Japan and the ROK increase investment in China but the next three decades will see China increase investment in these two countries. The investment agreement will play a very positive role in deepening investment cooperation," Zhang Yansheng, secretary-general of the academic committee of the National Development and Reform Commission, said.

Japan and the ROK are leading investors in China.

Japan invested about $80 billion while the ROK invested about $50 billion up to the end of last year, according to a report released by the Foreign Ministry on May 9.

"The build-up to the FTA will see more and more goods enjoy zero-tariff treatment and more services traded. It will help China bring in advanced technology and talent from these two partners," Zhang Yansheng said.

Trade between the three countries surged to more than $690 billion in 2011 from $130 billion in 1999.

China has been the largest trading partner of Japan and the ROK for several years while Japan and the ROK are China’s fourth and sixth-largest trading partners respectively.

While Tokyo and Seoul are concerned about their agriculture sectors, China will see challenges to its manufacturing, said Wang Luo, a researcher from the Chinese Academy of International Trade and Economic Cooperation, a Ministry of Commerce think tank.

Qu Xing, director of the China Institute of International Studies, said the FTA could help ease regional tension and may finally lead to an integrated Northeast Asia.

The FTA could even lead to a joint currency, he added.

"It might be a breakthrough in solving regional disputes."

The FTA, with greater cooperation between the three countries, will ultimately benefit the US, Qu said.

However, Derek Scissors, economist at the Heritage Foundation, said China will sign a trade agreement fairly soon with the ROK but it will be more difficult for Japan.

"It will be hard for Japan to join the Trans-Pacific Partnership because it will require major economic changes. It will also be hard for Japan to sign a free-trade agreement with China for political reasons, because it would seem that Japan was choosing China over the US," he said.

Contact the writers at lijiabao@chinadaily.com.cn and lixiaokun@chinadaily.com.cn

Source: ChinaDaily

http://online.wsj.com/article/SB10001424052702303505504577401843152321480.html?mod=googlenews_wsj

Property investment to suffer

Philip Hopkins

May 14, 2012

SPECIFIC measures in the federal budget will damage the growing level of foreign investment in Australia's commercial property sector, according to a key property group.

The Trust Company, a leading property and infrastructure custodian, said the budget proposal to double the final withholding tax rate (WHT) from 7.5 per cent to 15 per cent for foreign property investors put Australia's status as a prime investment destination in doubt.

Andrew Cannane, the company's head of corporate client services, said since managed investment trust (MIT) legislation was introduced in 2008, his company had been responsible for more than 30 managed investment trusts with $5 billion of direct investment in Australia.

Due to the attractive WHT rate, the strong Australian economy, the proximity to Asia and the lack of property investment alternatives in the south-east Asia region, Australian property had benefited from strong foreign investment.

''Our clients are telling us that on a relative risk weighting Australia is a most attractive property investment destination for them,'' Mr Cannane said.

''Although the market is tightening, Australia passes the threshold test of having sufficient integrity in its structural infrastructure to ensure commercial opportunities get done and can be pursued with legal predictability.

''As well, Australia's application of the rule of law places us ahead of our regional competitors who do not enjoy the same high standards of enshrined property rights, transparency and stable government.''

Mr Cannane said the lower WHT rates under the MIT rules had been another driver of investment. ''Whilst the tax rate is not the sole consideration to investors, the MIT regime finally brought in a regionally competitive tax regime in line with other countries in the region,'' he said.

''Changes to the rate undermine the confidence of foreign investors to invest into Australia with certainty.''

Research by Colliers International found that since the government lowered the WHT rate to 7.5 per cent in 2007-08, foreign investment in Australian commercial property markets increased from $1.2 billion in 2008 to $5.5 billion last year.

The latest research from Colliers found that foreign capital investment made up 59 per cent of all investments in Australia's property markets in the first quarter of this year.

Colliers' Global Capital Investment in Australia Research & Forecast Report concluded there was about $2.2 billion worth of foreign investment in Australian property in the first quarter, well up from $341 million in the same quarter last year.

Capital investment from Singapore accounted for 54 per cent, or $1.1 billion, due mainly to the major investment by GIC in the Charter Hall Office REIT acquisition. The portfolio comprises 17 office assets and one development site, across most major capital cities, with total value of about $1.8 billion.

Source: smh.com.ac
Read more: http://www.smh.com.au/business/property/property-investment-to-suffer-20120513-1ykry.html#ixzz1usAD4G2a

Germany is increasingly turning to Asia to cash in on China's rise and the region's integration, which opens up a new window of opportunity for investment.

Of total capital stock of 100 billion euros (Bt4 trillion) as of 2009, more than a quarter is now in Asia, including 23 billion in China, 1.40 billion in Thailand and 245 million in Vietnam. Myanmar's reopening could also draw some investment, now that the European Union has suspended sanctions on the country.

"That will increase in five to 10 years as China, Asean and India are the main destinations for German companies because of the robust growth rate," Volker Treier, deputy chief executive of the Association of German Chambers of Industry and Commerce, said recently in Bangkok. The association oversees 84 chambers in 80 countries.

A survey conducted early this year also showed that while China is ranked No 1 as an investment destination, other countries in East Asia are on the radar.

More investment could pour into the machinery and equipment, automotive, electrical-engineering and chemical industries, where Germany is a strong player.

Thailand or Vietnam could be a base for re-export to China, given the increasing production cost in that country. China is the huge market that everyone wants to penetrate, which explains why it is the third major export destination of Germany, after France and the United States, which have held the top two honours for 20 years. Consuming 1 per cent of total exports a decade ago, China now accounts for 6 per cent while the "cake is also of bigger size".

"Germany benefits a lot from Chinese development … The more China is integrated with Asia, the better it is for neighbouring countries," Treier said.

One of the benefits is through training in German technology.

While refocusing is necessary, as Asia is the area of opportunities, the first wave of German investment in China was barely a decade ago. Seeing business opportunities, German manufacturers were required to set up plants there because of the local-content requirement. They have witnessed obstacles, mostly involving intellectual-property violations, and that is being taken care of on a case-by-case basis.

While manufacturers are careful not to transfer all their top secrets to plants in China to avoid copying, Chinese manufacturers cannot copy the entire manufacturing process. Germany is good at delivering high-quality products and that requires education and a work mentality that cannot be imitated, he said. That allows manufacturers to contribute one-quarter of Germany's gross domestic product, which is the highest among the key European economies France, Britain and Italy.

Germany's overseas investment is driven mainly by companies backed up by information from government agencies. German chambers are playing a big role, besides embassies and the Federal Ministry of Economics and Technology, Treier said. In Thailand, flood-management experts were brought in after last year's floods, largely on the initiative of the German-Thai Chamber of Commerce, which wants to promote German technology in that area.

In China, more than 1,500 German companies are members of the Chamber of Commerce, against about 500 in Thailand, he said. About 42,000 companies are members of the chambers located worldwide. The chambers, which finance themselves mostly through membership fees and partially from subsidies, task themselves with mainly promoting trade and taking German companies' complaints to the government.

Minister-led political trips are part of the strategy, Treier said. The German-Thai Chamber of Commerce is supporting a Thai delegation to Germany, led by Prime Minister Yingluck Shinawatra. She will be accompanied by Thai company chiefs. The chamber will also organise a trade delegation to Myanmar.

Events are hosted to promote trade, particularly for small and medium-sized enterprises. Chambers in countries like Thailand where local businesses can seek membership prosper, as partnership tends to boost bilateral trade, he said.

"Germany has never had business strategic plans," he said. Companies go where opportunities stand, while the government supports them on the information side and extends no subsidies.

Source: The Nation

http://www.nationmultimedia.com/business/Germany-sees-more-investment-opportunities-in-Asia-30181546.html

Italian-Thai public company has no plan to suspend the implementation of Dawei deep seaport project, but at the moment the company is dealing with financial management at the end of the fiscal year, according to Director-General of Directorate of Investment and Company Administration.

Although news of the suspension of Dawei deep seaport project is spreading on the Internet, the company does not mean to do so. For this year, the company is making financial statements at the finance closing period, said the Director-General of Directorate of Investment and Company Administration at the media meeting with officials of the Ministry of Industry.

The Director-General said, “Dawei deep seaport project construction is not meant for suspension. At the end of the fiscal year, they are preparing financial statement. Our Myanmar departments are also doing so the same. 30 March is the end of budget year. The companies are also making financial statement at the finance closing period. It was wrongly interpreted on the Internet.”

Italian-Thai Development Co., Limited signed MoU with Myanmar government to implement Dawei deep seaport and special economic zone project in Yayphyu Township, Taninthayi Region in June 2008. Then Italian Thai Company signed MoU with Myanmar Port Authority in 2010.

The project has an area of 250 square kilometer and Italian-Thai Company has been allowed to run this project for 75 years. Dawei special economic zone will include petrol and chemical related plants, rubber factories and chemical plants. Coal plant that can be produced 4000 megawatt will be included in this zone. This plan can possibly bring negative impact on the natural environment and therefore the project will not be implemented, at the objections raised by local residents, other social organizations and environmental group.

Sources: Eleven Media Group

SEC Considering Rules for ASEAN Collective Investment Scheme UPDATE : 24 April 2012

Share

The Securities and Exchange Commission is considering regulations on the offer for sale of the ASEAN Collective Investment Scheme, while encouraging improvement of capital market firms and development of security analysts ahead of the launch of ASEAN Economic Community.

Securities and Exchange Commission, or SEC, Secretary-General Vorapol Socatiyanurak said the SEC has encouraged all companies listed on the Stock Exchange of Thailand to prepare for the upcoming establishment of the ASEAN Economic Community in 2015 and brace themselves for new challenges.

He added the SEC will require security analysis firms to publish monthly analytical reports and organize a program to educate provincial business operators about the capital market and how they can be listed on the stock exchange or the Market for Alternative Investment to increase their competitive edge.

Vorapol said the SEC hopes to increase the number of security analysts and enhance their qualifications to meet the anticipated rise in demand, as Thailand will become a strategic hub once the AEC is launched.

Meanwhile, the SEC is considering regulations on the offer for sale of ASEAN Collective Investment Scheme, or ASEAN CIS.

The initial plan is to offer the CIS to institutional and high-net-worth investors within the first half of this year and minor investors by the end of the year.

The Stock Exchange of Thailand is also set to participate in the ASEAN Linkage exchange in August.

Source: Thai-ASEAN News Network

PHILIPPINES - The Southeast Asian region, with an estimated population of 600 million, is anticipated to join the ranks of China and India as a major economic growth force in Asia should its constituent countries succeed in integrating their economies by 2015.

If the integration of the Association of Southeast Asian Nations (Asean) is implemented as planned, trading of goods, inter-country investments and labour mobility within the region will become much easier, said Changyong Rhee, chief economist of the Asian Development Bank (ADB).

This will significantly reduce the cost of production for the businesses and economic growth of member-countries and of the entire region will accelerate, said the ADB's top economist.

With this favorable scenario, Southeast Asia will become more attractive to investors and thus corner more direct investments from multinational companies from outside the region, he said.

"A new growth force is coming in Asia," Rhee told a press conference on the sidelines of the 45th annual meeting of the ADB board of governors that is being hosted this year by the Philippines.

The 10 countries of Southeast Asia, which together make up the geopolitical and economic organization called Asean, are Singapore, Indonesia, Vietnam, Malaysia, Thailand, Cambodia, Laos, Brunei, Burma (Myanmar) and the Philippines.

Integration by 2015

The Asean established on Aug 8, 1967, in Bangkok, by the five founding members composed of Indonesia, Malaysia, the Philippines, Singapore and Thailand - aims at achieving full economic integration by 2015, creating a single market and production base that will allow the free flow of goods, services, investment, capital and labour throughout the region.

Under the Asean integration plan, tariffs on most goods coming from member-countries will be brought down to zero or near-zero, their financial systems will be integrated, and employment restrictions will be eased so that Southeast Asians would find it easy to find jobs in any country within the region.

Once Asean integration is completed, the region will be able to corner more foreign direct investments, which now mostly go to China and India, said Rhee.

China and India are currently leading growth in Asia and the world, with gross domestic products expanding between 8 and 10 per cent over the past few years. Southeast Asian countries are also exhibiting decent growth rates, but at a slower pace.

With integration, growth rates of Southeast Asian countries would be expected to be faster, initially inching closer to and eventually matching those of China and India.

Territorial disputes

Some economists and social science experts, however, believe that Asean integration could be derailed if the ongoing conflicts among some Asean members with China over ownership of territories on the West Philippine Sea (South China Sea) is not resolved soon.

Asean members Vietnam, Brunei, Malaysia and the Philippines are claiming ownership in whole or in part of the resource-rich Spratly archipelago, which is also claimed by China and Taiwan.

China and the Philippines are currently facing off at Panatag Island (Scarborough Shoal), which the Philippines says is not in the disputed Spratlys but is well within its 200-mile economic zone, but which China also claims for its own.

Yu Yongding, a professor from the Chinese Academy of Social Sciences and one of the Chinese delegates to the ADB event, said it would be difficult to implement Asean integration if the geopolitical conflict is left unresolved.

Economic Planning Secretary Cayetano Paderanga Jr. agreed with Yu, although he expressed optimism that Asian policymakers will be able to resolve the conflict soon.

3 characteristics of growth

While Asia remains a potential global growth driver, ADB president Haruhiko Kuroda said Asian countries have to expand their goal from merely sustaining healthy economic growth rates to having an economic growth that is "inclusive," "green" and "knowledge-based."

Growth must be inclusive, meaning it should benefit not only the middle class and the rich but also the poor, Kuroda said.

Kuroda noted that while many Asian countries have been experiencing decent growth rates, their expanding economies have so far failed to significantly bring down poverty levels.

In the case of the Philippines, for instance, the country has managed to continually grow despite the global economic crisis, but its poverty incidence remains high, at 26.5 per cent as of end-2009.

"There are still hundreds of millions of Asians living on $1.25 a day," Kuroda said in remarks at the opening session of the ADB governors' meeting.

Some of the proposals raised to reduce poverty include heavier investments in public education and more lending to micro enterprises.

Green, knowledge-based

Kuroda said economic growth must be "green," that is, the rise in incomes must not come at the expense of environmental degradation. Economic growth will not be sustainable if environmental conditions continue to deteriorate, he said.

Lastly, growth must be knowledge-based, meaning enterprises must invest in research and development and in technology to help accelerate the growth of production, Kuroda said.

Source: Philippine Daily Inquirer/Asia News Network

http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=33079:asean-seen-as-economic-growth-force-by-2015&Itemid=3

Synovate’s assessment

January 4, 2012, 2:54am

MANILA, Philippines — The Philippines has the inherent attractiveness and ability to seize upcoming business opportunities as it has the potential to step up as the next favored destination in ASEAN.

This is according to Synovate’s business consulting head for the Philippines, and Singapore group director, Anand Kumar, in his recently held roadshow, titled “Developments in ASEAN markets — Assessing the risks and Opportunities.” The seminar tackled the potential of ASEAN countries, including the Philippines, and identified them as the most promising emerging growth markets next to the giants of India and China.

Anand said that the country needs to immediately seize this opportunity. “Take full advantage of the coming AFTA (ASEAN Free Trade Area) agreement. Expand to offering higher-value added services,” he enumerated.

“The opportunity needs to widen at this point in time. It may not be available in three to five years so it needs to be seized now.”

Explaining the trend, Anand said, “For the past 10 years, export powerhouses Japan and Korea have remained stagnant,” adding that the ones leading its growth are the other countries in the Asia Pacific including ASEAN.

This is due to the combined exports of China, Indonesia, Malaysia, Vietnam, India, Australia, Singapore, Philippines, and Thailand that have exceeded the exports of Japan and Korea. China and India have the largest GDP in Asia while Indonesia ranks first among ASEAN countries.

However, for the Philippines to fully benefit from this, Anand revealed that the country’s government must come up with more incentives for setting up manufacturing hubs. It must also address its steep electricity rates to lure more foreign direct investment (FDI).

He added that although cheap labor helped China sell itself as the workshop of the world, “Historical wage increments and the revaluation of the Renminbi (RMB) has eroded the cost advantage that China enjoyed 15 years ago.” For example, hourly wage difference between developed economies and Tier 1 cities in China has reduced significantly, with potential wage parity being forecast in the next 3 to 5 years.

With China ceasing to be attractive as a low-cost manufacturing hub for new FDIs, other countries can vie for the post vacated by the Awakened Dragon. India and Indonesia’s double digit median household income growth eliminate them from the list of alternate low-cost countries.

Source:  Manila Bulletin Publishing Corporation

www. http://mb.com.ph/node/346940/philippine