ASEAN was established in 1967 to advance regional cooperation, particularly economic, security and social.

Its member countries have a combined population of 650 million and GDP of more than $2.5 trillion.

Its immense population, comparative advantages and geographical location have led to the bloc being one of the quickest-growing markets globally.

Interdependent Southeast Asia is increasingly threatened by environmental degradation and climate change, which would have an immense financial cost and decrease the standard of living in the region.

There are many booming cities in ASEAN, with Jakarta expected to become the world’s largest city by 2030, and Manila the fourth largest. Megalopolises with large population densities will require large volumes of energy, which will push up greenhouse gas emissions.

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Despite rising trade tensions and geopolitical risks, half of ASEAN’s member states are among the top drivers of global growth.

The International Monetary Fund’s (IMF) World Economic Outlook released last week painted a bleak future for the global economy which is in a “synchronised slowdown” and is anticipated to grow 3.0 percent this year – the weakest since the 2008 global financial crisis.

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Mekong Delta localities collected more than 243.2 trillion VND (10.46 billion USD) for the budget in 2016-2018, and made up 18 percent of the country’s GDP, according to an official from the Ministry of Planning and Investment (MPI).

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The ongoing trade war between US and China, two of the largest economies in the world, could wipe out about 0.2% to 0.3% of the Asean region’s gross domestic product (GDP), says ASEAN+3 Macroeconomic Research Office (AMRO) chief economist Dr Khor Hoe Ee.

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Thailand faces more challenges as it strives to improve the economy and people’s incomes for the long term as it struggles to move up from being a middle-income country, the Asian Development Bank says. For the short term, the ADB has predicted that Thai exports will expand by 3 per cent this year, following zero growth last year. Luxmon Attapich, senior economist at the ADB Thailand Resident Mission, said on April 20 that rising demand overseas would allow exports to play a significant role in driving economic growth here, with gross domestic product forecast to rise by 3.5 per cent this year, up from 3.2-per-cent growth in 2016. GDP growth next year is expected to be 3.6 per cent.

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Xekong provincial authorities were told to translate the government’s measures, outlined to boost 2017 socio-economic development, into the province’s planning and projects to drive local growth and improve people’s livelihoods. Deputy Prime Minister Dr Sonexay Siphandone, during his working trip to the province last week, pressed on the need for the province to translate the government’s 10 measures into its own plan and projects so the province can realise sustainable robust growth. He offered the advice during a meeting with provincial governor Khampheuy Boutdavieng and other leading officials. Highlighting measures for the province to comply with, Dr Sonexay told authorities to improve conditions conducive to business operations by resolving inconvenient procedures that added to investment costs and hindered businesses.

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The post DPM offers measures for Xekong to pursue robust growth first appeared on Open Development Mekong.

Digital financial services have the potential to significantly expand economic activity in Cambodia by bridging the gap between existing financial products and growing credit needs, according to a new study. Adopting digital financial services, or fintech, could increase the Kingdom’s GDP by about 6 percent, the authors of Accelerating Financial Inclusion in Southeast Asia with Digital Finance, a report commissioned by the Asian Development Bank, concluded. Fintech has the potential to generate more than $1.7 billion in additional electronic payment flows, fuel more than $2.5 billion in additional credit uptake and mobilise more than $500 million in savings, they said. According to the report, which surveyed digital finance potential in the four ASEAN countries – Myanmar, Cambodia, Indonesia and the Philippines – the Kingdom’s formal financial institutions only met 16 percent of the population’s needs for savings activities, the lowest of the countries ranked. At the same time, it scored the highest in terms of having the most-developed network of microfinance institutions. 

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The Ministry of Tourism released its annual report on January 24 during its yearly meeting, showing growth continued for the sector in 2016, while launching a campaign to eliminate unlicensed tourist establishments that ministry officials claim slowed revenue collection last year. International tourism arrivals increased by 5 percent to surpass the 5 million mark in 2016, according to the report. However, total tourism revenue was down from the $3.5 billion recorded in 2015, amounting to $3 billion, or 13 percent of GDP. Tourism business registrations increased by 5 percent while revenue from tourism licences inched up just 1 percent, the report showed. By the end of 2016, there were 647 hotels, 1,996 guesthouses, 1,844 restaurants, 588 tourist agencies and 5,088 guides registered in the Kingdom, according to the figures.

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2016’s GDP reaching 6.21 per cent fell short of the target of 6.5 per cent but CPI was controlled at 2.67 per cent, lower than the targeted 3-4 per cent. Retail sales of consumer goods also maintained double digit growth, at 10 per cent on average. The Urban 4 key cities FMCG market rebounded compared to the same period last year. Meanwhile, the rural FMCG market continued to decelerate, driven by lower purchasing volumes. The beverage sector was the fastest growing sector in 2015 but this wasn’t replicated in 2016, as shopping frequency fell in both Urban and Rural markets. Packaged Foods and Home Care continued to shine in Urban markets while Dairy and Personal Care again led growth in Rural markets.

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The post Urban FMCG market rising as rural market sees lower growth first appeared on Open Development Mekong.

Indonesia is among Asia’s most attractive investment destinations, thanks to a robust private demand combined with expectation of improvements in its business climate, a survey from The Economist Corporate Network showed. Published on January 17, the survey — titled “Navigating Asia’s Risks and Rewards: Asia Business Outlook Survey 2017” — asked 223 Asia-based business executives in November last year about how their business were performing and their expectation for the year ahead. ECN is The Economist Group’s global advisory service that offers business intelligence briefings, presentations and advice to its subscribers in the so-called “growth markets.” “Respondents viewed government responses to political and economic risks in Indonesia, Myanmar, Vietnam and India as most likely to positively impact business prospects in 2017,” a report from the ECN that details the survey said. The survey also said that “executives were most optimistic about Indonesia, Myanmar, Vietnam and India. These countries were ranked by around 50-60 percent of those surveyed as having responded to risks in ways that will result in some kind of improvements for business.”

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