Read more about October’s business and international news
Vietnam to develop shipping industry by 2020
The East Asian country is focusing on shipping with a 2030 vision, to ease pressure on road transportation. Vietnam’s majority of imports and exports are to be transported by sea, embedding it further into the global shipping network. By 2020, the industry is expected to meet nearly all domestic shipping needs, and provide high quality services, according to a plan approved by premier Nguyen Tan Dung. The country wants to ship 140-152 million tonnes of goods and have a shipping fleet with a total carrying capacity of 6.84-7.52 million Deadweight Tonnes (DWT).
Governance, key concern for Asia
Asia ranks low in global measures of governance as the Asian Development Bank says corruption may threaten the region’s development. Southeast Asia fares poorly in control of corruption. In East Asia, the gaps are wide for voice and accountability. South Asia ranks low in political stability. A message from development practitioners is: Good governance is not the exclusive business of governments. Persuasive information campaigns are needed to counter public apathy and non-cooperation and the influence of powerful interests. Better governance can address issues of social inclusion and environment by ensuring proper policy actions and investments spanning multiple fronts.
Mega-project for seaside tourist attractions
The government has approved a master plan worth Tk 50,000 crore to transform Cox’s Bazar and Kuakata, two sea beach points, into world-class tourist spots. An exclusive tourist zone will be built, accordingly, on 1165 acres of land in Teknaf to provide tourists with hotels, night clubs, parks and convention hall. A tourist complex has also been designed in Cox’s Bazar, where the civil aviation and tourism ministry will construct a five-star hotel at cost of Tk 350 crore, alongside its current operation of Upal. Overall, these projects will be implemented under public-private partnership initiative.
Consumer confidence high in UK, US
Americans are finding more reasons to be upbeat about their prospects for the rest of 2014 and the British retailers are ending the summer on a high, feeling more confident than at any time in 12 years following a sales surge in August. Consumer confidence in the US climbed to the highest level in almost seven years, reinforcing signs of a strengthening outlook. Stronger sentiment will help underpin consumer spending, which makes up almost 70% of US economy. In the UK, strong high-street sales were matched by an increase in consumer confidence in the month.
British retailer’s nominal contribution to Rana Plaza fund
Matalan has donated less than $120,000 (£72,000) to a UN-backed compensation fund for victims of the Rana Plaza factory disaster, far less than the amount called for by workers’ rights campaigners. The British fashion retailer’s payout, reflected in its website, falls well short of the £3m ($5m) which organisations including Labour Behind the Label and 38 Degrees have called on Matalan to donate. The retailer has reportedly supported Rana Plaza victims via a separate scheme run by Brac. As the news of Matalan’s donation emerged, French supermarket Auchan said it would contribute $1.5m towards the fund.
FDI surges in Myanmar, new trade zone on China border
Foreign direct investment into Myanmar is set to exceed $5 billion, surpassing earlier estimate of $4b, for the 2014-15 fiscal year, thanks to new ventures in energy and telecoms. The investment surge follows political and economic reforms launched three years ago by President Thein Sein to see a transition from decades of international isolation. The Southeast Asian country is building a new trade zone on China border to ease pressure of cargo-loaded cars. There are four such zones to facilitate trade between the two close neighbours. China is building another trade zone given the rise in border trade.
Japan to invest $35b for India’s infra over 5 years
The huge fund will be used to finance projects on next generation infrastructure, connectivity, transport systems, Smart Cities, rejuvenation of the Ganga and other rivers, manufacturing, clean energy, skill development, water security, food processing and agro industry, agricultural cold chain, and rural development. Japanese Prime Minister Shinzo Abe, during Indian Premier Narendra Modi’s recent visit to Japan, offered the US$35 billion investment package with private and public sector windows including official aid. Appreciating Tokyo’s gesture, Modi said ‘no country’ other than Japan has done more for modernising India’s infrastructure.
West to remain Bangladesh’s major export market
Despite decline in exports to US and uncertainty in Europe, Dhaka is likely to enjoy increasing market access of exportable goods to the West in the foreseeable future. The US, Germany and the UK, three top export partners, will be unchanged out to 2030 thanks to strong demand from there for textiles and garments, HSBC said. Apparel products make up around 80% of Bangladesh’s merchandise exports with the value in this sub-sector being greater than India’s exports. The country gets 20% of its imports from China and this share may rise to closer to 30% by 2020.
Luxury house prices plunge in Singapore
Dozens of houses in Sentosa Cove, Singapore’s man-made island resort, sit empty. Prices in the gated community, where Australian mining tycoons bought properties, fell 20% in the past year. Lending restrictions and taxes on foreign buyers reportedly burst a bubble in the Southeast Asian financial hub’s luxury real estate market. Banks, too, may have tough time in 2015. Investors could see the value of their assets fall even further with developers and investors still struggling to sell despite the recent price falls. Only 12 apartments and one house have changed hands all year on Sentosa, against hundreds of offers.
South Asia needs strategies to cope with monsoon
South Asian nations, facing extremes such as flash floods in their summer monsoon, must work out strategies to cope with effects of changing weather. Data analysis suggests change in the wind-driven weather pattern which starts in June and lasts through September. Even minor variations can have far reaching impacts on the region’s 1.5 billion people. Monsoon brings four-fifths of the annual rainfall, which sustains much of its agriculture, power generation and basic human needs. Climate scientists at Stanford University found, through advanced statistical tests, some changing patterns in South Asian monsoons since 1980.
