AEC Feed

The next phase of Asia-Pacific economic growth should be driven by broad-based productivity gains, as nations in the region begin implementing the 2030 Agenda for Sustainable Development, the United Nations says in its recently released flagship publication.
The UN Economic and Social Commission for Asia and the Pacific emphasises in the “Economic and Social Survey for Asia and the Pacific 2016” that growth will require higher, targeted fiscal spending, enhanced skills, better infrastructure and improved agricultural productivity.
Annual average growth of total factor productivity in the developing countries of Asia-Pacific declined from 2.8 per cent in 2000-07 to just below 1 per cent in 2008-14. “The productivity slowdown accounts for almost a fifth of the recent economic slowdown, from an average of 9.4 per cent during 2005-07 to an estimated 4.6-per-cent growth in 2015,” the report says. – The Jakarta Post

AUTO IMPORTERS PETITION |VN GOVT OVER TAX REVISIONS
Auto importers in Vietnam have petitioned Prime Minister Nguyen Xuan Phuc and industries to consider problems related to some revised articles and supplements in the Law on Special Consumption Tax, which will become effective on July 1.
This is the second change of the tax calculation this year. The first went into effect on January 1. The changes, which were made in such a short time, reportedly made it difficult for auto businesses to plan for the future. The petitioners are suppliers of giant automakers like Audi, Bentley, Lamborghini, BMW and Mini, Jaguar and Land Rover among others. – Viet Nam News

Energy Absolute to build two wind power plants

Energy Absolute’s shareholders last week voted to support its plan to develop two wind power projects worth over Bt3 billion.
About Bt10.4 billion will be spent on the development of Hadkanghan 1-3 projects with total capacity of 126 megawatts, which will be commercially supplied to the system in July.
This new supply will boost the company’s total capacity to 404MW this year.
Amorn Sapthaweekul, deputy chief executive officer, said the shareholders’ meeting approved the investment of Bt20 billion in the 1,5,8,9 and 10 Hanuman wind power projects with total capacity of 260MW, which will start commercial supply by June 2018.
This will boost the company’s total capacity to 664MW.
The meeting also approved the company’s issuance of debentures worth up to Bt10 billion and the payment on May 27 of a dividend of 0.10 satang, or Bt373 million in total.

VN company to tap coal in Laos

Vietnam and Laos signed a contract on Thursday to allow a Vietnamese company to survey and tap coal in Xam Nuea city, Houaphan province, in Laos.
The contract was signed between the Lao government and Long Van Co of Vietnam.
Attending the event were Lao Deputy Minister of Planning and Investment Sisou Phanthong, head of the Ministry of Natural Resources and Environment’s Department of Geology and Mineral Resources Khampha Phommakaysone and envoy at the Vietnamese Embassy in Laos Hoang Xuan Hai.
Following an initial survey of 600 hectares out of a total of 15,000ha, Long Van has found nearly 60 million tonnes of coal reserves in Xam Neua.
At the signing ceremony, the director of Long Van Pham Ngoc Long pledged to ensure the project’s efficiency in tandem with environment protection and to generate more local jobs, which will contribute to furthering the traditional friendship and comprehensive cooperation between Vietnam and Laos. – Viet Nam News

S&P gives Vietnam ‘BB’ rating

Standard & Poor’s Ratings Services affirmed its “BB-” long-term and “B” short-term sovereign credit ratings on Vietnam. The outlook is stable. It also affirmed “axBB+/axB” Asean regional scale rating on Vietnam.
The ratings reflect the country’s lower middle-income, rising debt burden, banking industry weakness and emerging institutional settings that hamper policy responsiveness.
These strengths are offset by sound external settings that feature adequate foreign exchange reserves and a modest external debt burden.
Vietnam has a lower middle income but comparatively diversified economy. The rating agency estimated GDP per capita at about US$2,200 in 2016.
Recent improvements in macroeconomic stability have supported strong performance in the sizeable foreign-owned and export-focused manufacturing sector (electronics, telephones and clothing).
It expects real GDP per capita to rise by 5.3 per cent in 2016 (2015: 5.6 per cent) and average 5.2 per cent over 2016-19, reflecting the modest outlooks for Vietnam’s trading partners. – Viet Nam News

Betagro unsecure debenture issue rated ‘A’

Tris Rating has assigned a rating of “A” to the proposed issue of up to Bt3 billion in senior unsecured debentures of Betagro Plc and has affirmed the company and current senior unsecured debenture ratings of Betagro at “A”. The outlook remains “stable”.
The proceeds from the new debentures will be used for planned capital expenditures.
The ratings reflect the company’s proven record in the Thai agribusiness and food industries, the fully vertical integration across its diverse product lines and its focus on value-added and branded products.
The “stable” outlook reflects Tris Rating’s view that Betagro can maintain its leading positions in the Thai agribusiness and food industries.
The company’s strategy to focus on value-added and branded products should partially offset the cyclical nature of commodity-like farm products.

Sri Trang debenture issue rate ‘A-’

Tris Rating has assigned a rating of “A-” to the proposed issue of up to Bt1.5 billion in senior unsecured debentures of Sri Trang Agro-Industry Plc and has affirmed the company and existing senior unsecured debenture ratings of Sri Trang at “A-”. The outlook remains “stable”.
The ratings reflect the company’s leading position in the natural rubber industry, diversified customer base and the extensive track record of its management team.
However, these strengths are partially offset by the cyclical nature of rubber prices and narrow margin of mid-stream rubber producers. The rubber demand slowdown from weak global economic conditions remain the rating concerns.