The second session of the National Assembly on November 1 continued with debates on a five year financial plan, targets and orientation for the mobilisation and use of public investment loans as well as public debt management during 2016-2020. Finance Minister Đinh Tiến Dũng presented a report on national public debt by providing data that shows the reality of public debts over the past five years. Dũng said public debt reached US$117 billion last year, or an increase of 2.3 fold over 2010 and 14.8 fold over 2001. He said the annual growth pace of public debt in the 2011-15 was 18.4 per cent, or three fold over annual GDP growth rate, which was about 5.9 per cent. Many deputies agreed with the report’s assessment on the current situation of public debt saying that the mobilisation and use of loans and public debt management in 2011-2015 had been presented extensively.

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Indonesia and Vietnam are looking to join Thailand in blazing a trail for solar power in Southeast Asia, introducing targets to fire up green energy generation as a landmark global agreement to curb pollution is set to take effect. Countries around the world are coming under increasing pressure to crack down on carbon emissions from sectors such as coal-fired power stations, with the historic Paris climate accord coming into force on November 4 after it was signed last year. Indonesia and Vietnam aim to each have annual solar power capacity of at least 5 gigawatts from 2020, up from close to nothing now, officials from both governments told Reuters. That level of output would have placed the countries among the top 15 solar producers in the world in 2015 data from the International Renewable Energy Agency, and would account for close to 9 percent of expected power generation in Indonesia and Vietnam at the turn of the next decade.

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With competitive labor cost, the country only comes after Singapore in terms of attractiveness. In the Southeast Asia region, Singapore tops the list of most favorable expansion destinations for Asian companies, with 32 percent of respondents saying they will invest more, followed by Vietnam, according to a recent survey by United Overseas Bank. Approximately one in four companies will consider Vietnam because of the country’s stable political setting as well as the favorable economic conditions of low inflation and accommodative monetary policy. Vietnam’s young and active workforce adds value to its attractiveness as an expansion destination. When it comes to labor cost, no country in the region except Myanmar can beat Vietnam.

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A Thai agricultural company will work with a local firm to introduce commercial date palm cultivation to the Kingdom, which it claims can generate more profits for farmers than pepper and other cash crops, and for which it has already lined up buyers. Chiang Mai-based Daily Green Co Ltd inked a memorandum of understanding with Cambodia’s Kheng Lay Co Ltd on October 24 that outlines a partnership plan to educate Cambodian farmers on the commercial benefits of date palm cultivation, and supply seeds, saplings and technical support to farmers who choose to grow the cash crop. Kheng Chantha, owner of Kheng Lay, said he has successfully grown date palms on a 10-hectare experimental farm in Kandal province, and the fruit-bearing variety of palm grows well in Cambodia and could provide a supplementary source of income for rural families. He said the partnership agreement will see Daily Green responsible for supplying seeds and saplings to Kheng Lay, which will distribute them to local farmers and support their date production with technical advice and help in securing supplier contracts. The two companies will look to enlist local farmers to grow date palms on 50,000 hectares in the coming five years.

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Five Chinese construction companies and six consultancy firms have been selected for engagement in the Laos-China Railway Project, with construction expected to start in December. Agreements with the companies were signed in Vientiane on October 24 in the presence of Vientiane Mayor Dr Bounchan Sinthavong, Chinese Ambassador to Laos Mr Guan Huabing, deputy ministers, provincial governors and other invited guests. The selection of the construction companies and consultancy firms was conducted by the Laos-China Railway Committee, with the process beginning on July 27. The committee sent letters to the construction companies and consultancy firms setting out the conditions for bidding. Ten Chinese construction companies and 15 consultancy firms submitted bids, according to a report from the committee. 

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Cambodia ranked third-worst for illicit trade out of 17 countries in the Asia-Pacific region in a recently released index by the Economist Intelligence Unit that analysed governments’ abilities to combat illegal trade operations. The report, commissioned by the European Chamber of Commerce of Singapore, reviewed countries under four categories: intellectual property rights, transparency and trade, customs environment and supply and demand. Cambodia was given an overall score of 23.9 on a weighted scale of 100, while Laos scored 12.9 and Myanmar came last with 10.8. At the other end, Australia had a top score of 85.2. “Not surprisingly, the region’s poorer economies – Cambodia, Laos and Myanmar – sit at the bottom of the rankings,” the report said, adding that poorer countries will continue to be plagued by budgetary constraints that make it difficult to implement necessary reforms.

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The Hai Duong People’s Committee is seeking solutions for the $2 billion, 1,200 megawatt Hai Duong thermal power plant, in case the investors continue to delay with the construction. The committee has requested the PM to direct ministries and relevant authorities to urge the co-investors, namely Malaysian Jaks Resources Bhd. and China Power Engineering Consulting Group Co., Ltd, to implement the construction on schedule as previously committed. The province asked the PM to issue treatment measures for the continuous delay. This is the second time the province submits the proposal to the PM. In August 2016, after receiving the first request, the PM directed the Ministry of Industry and Trade, in collaboration with the Ministry of Planning and Investment to prepare a report on the investors’ financial capacity as well as the difficulties causing the long delay in construction, and propose the necessary measures.

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Cambodia is rapidly expanding its diplomatic affair with China. Early last week it appealed to Beijing for help amid plunging rice pricesand then three days later Phnom Penh signed an MoU seeking Chinese assistance in overhauling its much maligned judiciary. The memorandum of understanding allows China to provide training, finance and expertise with a focus on commercial courts, in a country where the separation of powers between the government and the judiciary is constantly being questioned. Reforms are needed. Efforts by the United States, Germany and Australia – among others – to help improve the Cambodian court system have ended in frustration. But doubts over whether China can actually do this are as grave as the concerns for Beijing’s investment strategy here. In recent years Cambodia has given China unflinching support, which mattered most in the South China Sea dispute where Beijing has faced virulent opposition from nearly all of its neighbors. Claims by Brunei, Indonesia, Malaysia, Vietnam, and the Philippines were ignored by Cambodia and in return Beijing’s largesse has topped about $20 billion over the last 15 years. Its overarching influence dominates most facets of life in Cambodia.

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As Vietnam looks to raise the nation’s renewable energy sources, foreign investors are sensing an opportunity for solar energy projects. But low feed-in-tariffs are slowing this movement, to the dismay of both local and international organisations. Representatives of six German firms recently came to Vietnam to explore the potential of the country’s solar photovoltaic market. The firms include IBC Solar AG, M+W Group GmbH, Droege Energy GmbH, CARERA Solar/Hydro UG, ILF Consulting Engineers GmbH, and Syntegra Solar International AG. They introduced their products and services to 150 Vietnamese companies during bilateral co-operation meetings. Peter Cattelaens, deputy programme director of German-backed GIZ Energy Support Programme in Vietnam, said that “German firms in the solar PV sector can now seize a number of attractive business opportunities in Vietnam.” Not only German firms, companies from the UK, South Korea, the US, and Canada are also eyeing solar power projects in the Southeast Asian country.

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Prime Minister Hun Sen welcomed a pledge by a Thai-based industrial real estate developer on October 10 that promised to build a special economic zone in Cambodia, despite officials saying the company has yet to make any firm commitments. According to local media, the pledge was made by the founder and chief executive officer of Amata Corporation PCL, Vikrom Kromadit, who talked with Hun Sen on the sidelines of the Second Asia Corporation Dialogue held in Bangkok. Amata Corporation PCL, a publicly listed company, has successfully established SEZs in Thailand and Vietnam and has plans to expand into Myanmar by 2020.

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