Cambodia exported nearly 2.073 million tonnes of agricultural products in the first two months of 2022, up by over 6.4 per cent year-on-year from more than 1.947 million tonnes, according to Minister of Agriculture, Forestry and Fisheries Veng Sakhon.

By category, milled rice amounted to 103,058 tonnes, surging by 26,836 tonnes (35.21 per cent) year-on-year, while paddy clocked in at 651,101 tonnes, climbing by 92,068 tonnes (16.47 per cent) year-on-year, Sakhon said in a statement, citing data from the National Phytosanitary Database.

“Other agricultural products besides paddy and milled rice” weighed in at 1,318,642.70 tonnes, up by 0.50 per cent year-on-year, said the statement, posted on the minister’s Facebook page.

The Kingdom’s agricultural exports from January-February were shipped to a total of 52 countries and territories, including markets in Europe, ASEAN and elsewhere in Asia, the statement added. 

The minister told The Post on March 1 that Cambodia’s agricultural exports over the period were driven up by an increase in both market demand and production by farmers.

“Given the current circumstances, some countries cannot produce, but Cambodia can – others have high demand for agricultural products.

“As of late, people in a number of countries have been switching out crops and trying new ones for more profitable means. And, Cambodia has a favourable climate – all of these factor into the upswing in agricultural exports seen over the two months,” Sakhon said.

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Author: Hom Phanet 

Source: The Phnom Penh Post 

In the Lao PDR, fruits, vegetables and plant products have significant export potential to the European Union (EU), the Association of Southeast Asian Nations and China.

The EU in particular, accounted for €63 million worth of agricultural exports from the Lao PDR in 2019, representing 22.1% of total trade. Not only do these exports contribute to the country’s economic growth, but they also foster domestic employment in one of the key sectors in the country.

The International Trade Centre’s (ITC) analysis indicates that speciality agriculture from Lao PDR has significant export potential, up to US$634 million. However, agriculture and food-related products are among the most regulated sectors in international trade. Consumers in importing countries expect products that are safe for human health, and at the same time, safe for animals, plants, and the environment.

To ensure food safety and meet the regulatory framework for the control of plant health and pesticide residues in fruits and vegetables, the International Trade Centre’s Systematic Mechanism for Safer Trade (SYMST) project improves food safety and plant health through better governance in the Lao PDR. [Read more...]

Source: Lao News Agency

Cambodia ranked third in both real income gains and export growth among Regional Comprehensive Economic Partnership (RCEP) members, according to the World Bank (WB).

In its recent working paper entitled “Estimating the Economic and Distributional Impacts of the Regional Comprehensive Economic Partnership”, the Washington-based lender said the Kingdom came in third after Vietnam and Malaysia, in terms of real income gains.

On export growth, the report said Cambodia was expected to log a rise of 6.5 per cent, the highest after Vietnam and Japan at 11.4 per cent and 8.9 per cent, respectively, the 46-page research paper said.

The RCEP is the world’s largest trade pact, signed on November 15, 2020 by the 10 ASEAN countries and five other Asia-Pacific countries – Australia, China, Japan, New Zealand and South Korea – and entering into force in Cambodia on January 1, 2022.

Ratification is still pending in South Korea and four ASEAN countries – Indonesia, Malaysia, Myanmar and the Philippines.

The working paper said the deal has the potential to lift 27 million additional people to middle-class status by 2035.

“Considering the full scenario, with reductions in tariffs, non-tariff measures, and trade costs, Lao PDR, Thailand, Cambodia, Vietnam and Malaysia benefit the most. These positive gains are magnified when a productivity kick is assumed.

“Under this scenario, the real income in Vietnam and Malaysia increases almost five per cent. In Japan, the country that gains less under this scenario, the real income increases by 0.5 per cent.

“Interestingly for Japan, the impact of the four RCEP scenarios is similar, which suggests that most gains are associated with a fall in tariffs, in contrast to the rest of the countries, where the fall in tariffs leads to very small impacts, or even a negative impact as in Cambodia and Vietnam.

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Author: May Kunmakara

Source: The Phnom Penh Post 

Laos has lowered its value-added tax (VAT) rate as part of the government’s post-Covid-19 economic recovery efforts.

Under new regulations issued in December, the standard VAT rate has been reduced from 10 percent to seven percent, while also providing for more business activities that are exempted from VAT.

Minerals and power-related activities will also now see a new VAT calculation.

The amended VAT Law came into effect on 1 January following a severe economic downturn in Laos that has seen the country experience its slowest growth in 30 years, ASEAN Briefing reports.

Laos is also suffering from one of the highest inflation rates in the region, with the Lao kip depreciating to its lowest value in 15 years.

While Laos has seen 6-8% economic growth for the past decade, the World Bank’s Global Economic Prospects report suggests Laos will see economic growth of 4.5 percent in 2022, however, and could rebound to see 4.8 percent growth in 2023.

Under the amended law, the standard VAT rate for the supply of goods and services, and importing goods, has been reduced from ten percent to seven percent.

Activities exempt from VAT now include electricity imports, exported minerals, export of electricity, and the supply of electricity to electricity enterprises in Laos.

Source: The Laotian Times

Last Thursday, the Office of the Embassy of Canada, AustCham, The European Chamber of Commerce and Industry, the European Union, and the British Business Group in Laos co-hosted the 3rd Responsible Business Conduct Forum to share their commitment to and best practices in corporate social responsibility (CSR).

Exchanging information on CSR policies, procedures, and action plans supports further the government of Lao PDR in attracting and retaining quality investors.

The RBC Forum, which attracted more than 100 participants online, saw business leaders share their experiences in implementing CSR activities with members of the Lao private sector, government officials, development partners, international organizations, and civil society. Sectors of focus for the full-day event included Mining, Agriculture, Renewable Energy, and Public Policy.

“Businesses can only flourish when the communities and ecosystems in which they operate are healthy. Many companies now undertake environmental sustainability not just as a legal obligation, but as a business opportunity and moral imperative,” said Canada’s Ambassador to Lao PDR, H.E. Sarah Taylor, in opening the Forum. “Our objective is to work with local business communities, civil society organizations, foreign governments and communities as well as other stakeholders to foster and promote responsible business practices and thus support sustainable economic growth and shared value.”

Ina Marčiulionytë, EU Ambassador to Laos added “During a critical period like the COVID-19 pandemic filled with uncertainty, it is important to stay strongly committed to working together in a sustainable way. As Lao PDR prepares itself to reopen for tourism and attract new investments, to support its economic recovery from the pandemic, the issue of an environmentally and socially responsible private sector has become crucial. Indeed, the private sector has a central role to play in what we call the “Build Back Better” agenda following the pandemic.”

The 2022 RBC Forum featured a series of panel discussions that illustrated the benefits of a strong commitment to CSR. Participants heard that practical and cost-effective CSR measures resulted in sustainable consumption and production, enhanced employee benefits, and could be integrated into international mechanisms such as the Global Reporting Initiative. The forum highlighted that responsible businesses should incorporate CSR measures as part of their business strategy, and be informed by close consultation with local populations.[read more]

Source: The Laotian Times