Southeast Asia

Short Code
AC
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
4,800,000,000
About this project
Region(s)
Project Sector(s)
Format of Cooperation(s)
About this project

Overview

Vietnam's shift from a centrally planned economy to a market economy has transformed it into a lower-middle income country. Vietnam's economy continues to show fundamental strength, supported by robust domestic demand and export-oriented manufacturing. Vietnam is now one of the most dynamic and fastest-growing emerging markets globally. In 2018 continued stellar expansion in manufacturing output, propelled by buoyant export demand for electronics and supported by robust foreign direct investment (FDI) inflows, primarily fuelled solid growth. The robust growth from 2018 is expected to spill over in the near term, owing to healthy private consumption supported by strong private credit growth and rising incomes. The industrial sector also continues to expand at a stellar pace, supported by strong FDI inflows. Vietnam's 2011-2020 Socio-Economic Development Strategy, a 10-year strategy, highlights the need for structural reforms, environmental sustainability, social equity and macroeconomic stability. The Socio-Economic Development Plan for 2016-2020, approved in April 2016, looks to accelerate reforms.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

September 2016
India announced USD500 million worth of credit for Vietnam towards defence spending.

July 2018
Doosan Heavy Industries & Construction started the construction of a 1.33GW thermal power project in Vietnam. The project, known as Nghi Son 2, involved the construction of two 665MW thermal power generation plants in Thanh Hóa. Construction was scheduled to be completed by July 2022.

August 2018
Thailand-based firm Siam Cement Group Public Company signed loan agreements worth more than USD3.2 billion with six financial institutions for the Long Son Petrochemicals' complex in Vietnam. The project, which would require an investment of around USD5.4 billion, would be located in Bà Ria-Vung Tàu Province. Commercial operations were expected to begin in 2023.

October 2018
The Communist Party of Vietnam, Vietnam's ruling Communist Party, agreed to nominate General Secretary Nguyen Phu Trong as president. This took place almost two weeks after the death of former-president Tran Dai Quang on September 21, 2018.

January 2019
In 2018 the Vietnamese government passed several new and amended laws which came into effect in 2019. The laws primarily focused on wages, environmental projects, the food industry, rural development, cybersecurity and administrative procedures.

October 2019
Sumitomo Corporation and BRG Group formed a 50-50 joint venture to build a USD4.2 billion smart city in Hanoi. The five-phase project would come up on a 2.72sq km area in the northern district of Dong Anh. Overall, the project would have 7,000 residential units, hospitals, schools, disaster prevention facilities, security systems and commercial facilities. Construction would start in 2020 with the project due for completion in 2028.

November 2019
The Government of Vietnam sanctioned the Dung Quat 1 and 3 combined-cycle gas turbine plants in the Quang Ngai province. The power facilities would have a capacity of 750MW each. The Dung Quat 1 plant was planned to begin construction in January 2021, with first light to be produced in December 2023. Construction of Dung Quat 3 was due to start in January 2022, with operations slated to commence in December 2024. The two facilities would use gas from the Blue Whale gas field in the South China Sea.

December 2019
Vietnam's National Assembly approved a new Labour Code which will take effect in January 2021. The amended code offers greater protection for employees and is viewed as better aligned with international best practices. It should help smooth the implementation of several key trade agreements.

February 2020
Vietnam planned to increase its power-generating capacity to between 125GW and 130GW, from nearly 54GW currently, by 2030. Renewable-based power capacity would be increased to 15-20%. The government would seek foreign and domestic private investment to help develop new power plants as well as the privatisation of the state-owned power companies. To boost funding in clean energy, the Vietnam Business Forum launched the second edition of the Made in Vietnam Energy Plan later in February.

March 2020
The authorities announced a credit package totalling VND285 trillion (about 3.8% of GDP) from the banking sector for firms and households affected by Covid-19. This was time-bound from March 23 to June 2020.

Samsung Electronics started construction of a new research and development centre in Vietnam. The 16-storey building, which costed USD220 million, was being built in Hanoi. The facility, due for completion by the end of 2022, would be able to accommodate 2,200-3,000 employees.

April 2020
At the beginning of April, 69.5% of the full site had been cleared for 11 sub-projects under the eastern North-South Expressway in Vietnam. The sub-projects would have a total length of 654km, with land cleared for 454.15km. Of the 11 projects, three would be financed through the state budget, and the remainder would be executed under the public-private partnership (PPP) model. The PPP projects had sought approval from the National Assembly to be converted into state-backed projects. The overall 2,109 North-South Expressway woudl link the provinces of Lang Son and Ca Mau.

Sources: BBC Country Profile – Timeline, Fitch Solutions, VN Express

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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
Not Specified
About this project
Region(s)
Project Sector(s)
Format of Cooperation(s)
About this project

Overview

The Philippines has one of the most dynamic economies in the East Asia and the Pacific region. With increasing urbanisation, a growing middle income class, and a large and young population, the Philippines' economic dynamism is rooted in strong consumer demand supported by improving real incomes and robust remittances. Business activities are buoyant with notable performance in the services sector (including business process outsourcing), real estate, and finance and insurance industries.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

June 2016
Rodrigo Duterte was elected president and announced a hard-line crackdown on drugs. He also suggested that he might pivot from the United States to Mainland China.

May 2017
Martial law was imposed on the island of Mindanao after fighting erupts between security forces and Islamic State-linked militants.

May 2018
Barangay elections were held on May 14, 2018.

May 2019
The 2019 Philippine general election was held on May 13, 2019. The winners took office on June 30, 2019, midway through President Rodrigo Duterte's six-year term. The election saw 12 seats in the House of Representatives, as well as all seats at the senate, provincial, city and municipality level contested.

September 2019
In September 2019, Philippines reformed the corporate tax system through the Corporate Income Tax (CIT) and Incentives Rationalization Act (CITIRA), which would reduce CIT from 30% to 20% over a 10 year period as well as introduce specific tax incentives for capital expenditure and labour up-skilling.

December 2019
The Asian Development Bank (ADB) approved a USD200 million loan for the preparation and execution of various development projects in the Philippines. The loan would support detailed engineering design of the Bataan-Cavite Interlink Bridge Project and the Metro Rail Transit Line 4 linking Ortigas in Metro Manila to Taytay in the province of Rizal, among other works.

February 2020
On February 11, the Philippines notified the United States Embassy in Manila on their decision to terminate the Visiting Forces Agreement (VFA) and that the agreement would end in 180 days, provided the decision was not reversed following bilateral negotiations that were scheduled for March 2020. The termination does not spell the end of military relations between the long-term allies, with the long-standing (August 1951) Mutual Defense Treaty (MDT) and more recent (April 2014) Enhanced Defense Cooperation Agreement (EDCA) both still in place. The VFA, which came into effect May 1999, allowed military personnel from either country visa or judicial privileges, amongst other benefits, as well the United States the right to operate vessels and aircraft in the Philippines freely.

February 2020
Angat Hydropower Corporation awarded GE Renewable Energy a contract for the rehabilitation of 218MW Angat hydropower plant in the Philippines. The facility, located on Angat River, was commissioned in 1967. Under the deal, GE Renewable Energy would supply two new 50MW Francis turbines, four new 50MW generators as well as three new upgraded auxiliary turbines and generators. The firm would also be responsible for assessing the penstock, the powerhouse and providing a new control system. GE Renewable Energy would collaborate with local partner DESCO, which would install and commission the plant. The upgraded plant was due to start operations in 2023 with an increased output of 226.6MW.

April 2020
Work on the new passenger terminal building of Clark International Airport was progressing as scheduled despite the enhanced community quarantine in Luzon, Philippines. Contractor Megawide GMR Construction Joint Venture (MGCJV) stated that work was now 96% complete with only minor works remaining. The new terminal was expected to increase airport's annual passenger handling capacity from 4.2 million to 12.2 million. MGCJV won the construction package in December 2017 by submitting a bid of PHP9.36 billion (USD185.37 million) under a hybrid public-private partnership scheme. The new terminal was expected to be delivered before July 31 2020.

April 2020
The government announced a PHP27.1 billion fiscal package (about 0.15% of 2019 GDP) in response to the Covid-19 pandemic, which comprised, among other areas, support to the tourism and agriculture sectors. Financial assistance would also be provided to affected SMEs and vulnerable households through specialised microfinancing loans and loan restructuring. 

Sources: BBC Country Profile – Timeline, Fitch Solutions

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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
Not Specified
About this project
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About this project

Overview

Laos is one of the fastest-growing economies in East Asia and the Pacific, underpinned by improving access to electricity, education and roads, as well as the implementation of structural reforms aimed at improving the business environment. However, it still lags behind its regional peers. The country’s economic performance will cool somewhat over the medium term as the recent accumulation of public debt places increased pressure on its growth potential. The government is seeking to maintain macroeconomic stability by taking steps to improve domestic revenue collection, control expenditure and strengthen public debt management.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

April 2016
At its five-year congress, the National Assembly appointed Bounnhang Vorachith as president and leader of the ruling Lao People's Revolutionary Party (LPRP), succeeding Choummaly Sayasone who, served as the ruling party's general secretary and president of Laos from 2006 to 2016.

September 2016
Former United States President Barack Obama became the first sitting United States president to visit Laos. The United States committed USD90 million dollars over three years to help clear unexploded bombs that the United States dropped on Laos during the Vietnam War.

December 2016
The governments of Laos and Mainland China announced the joint construction of a high speed rail line between Mainland China and Thailand to link Laos with the transport hubs in these countries.

July 2018
The collapse of a dam in July triggered a pause in the approvals of new hydropower projects and an official review of all existing ones in the country.

August 2018
A consultation process (scheduled to last six months) began for the proposed 770MW Pak Lay hydropower project on the Mekong mainstream in Laos. The consultation involved two regional stakeholder forums and a field visit to the Pak Lay project. The power plant was estimated to require a USD2.13 billion investment. Construction is likely to begin in 2022.

August 2018
Mainland China Southern Power Grid Co signed a memorandum of understanding with the Government of Laos to carry out a feasibility study to explore the possibilities of developing a national power grid in Laos.

December 2018
The Chinese government approved a special fund at the 4th Mekong-Lancang Cooperation Foreign Ministers’ Meeting. The fund would enable Mekong countries to carry out 138 projects, with Laos receiving about USD4.5 million to implement 21 projects.

June 2019
New 500kV and 230kV transmission lines would be installed in the capital city, Vientiane, as a joint project between Électricité du Laos and Mainland China Electric Power Equipment and Technology, an affiliate of State Grid Corporation. The project would provide a sustainable supply of electricity for the development of the capital city.

June 2019
Mainland China and Thailand announced that they had  banned the direct and indirect import of pigs, wild boars and related products from Laos owing to the first African swine fever outbreak reported by the country.

July 2019
Souliyapon Intertrade Co selected China Machinery Engineering Co (CMEC) to serve as the general contractor for a 230MWp solar photovoltaic  project in Laos's Borikhamxay Province. Under the USD345 million contract, CMEC will be responsible for the power plant's design, supply, civil engineering, construction, installation, commissioning and other works. The deal was subject to certain conditions. The construction of the facility is expected to be completed over a period of two years.

September 2019
Tropical storm Podul and tropical depression Kajiki caused flooding in Laos' southern provinces, which caused more than 580,000 people to be displaced and damaged infrastructure and crops in the region.

October 2019
The Government of Laos signed a memorandum of understanding with Petroleum Trading Lao to carry out a feasibility study and complete detailed design for the Laos-Vietnam railway Project. The rail line would start from Thakhaek district in Khammuan province of Laos to Vung Ang seaport in Vietnam's central Hà Tinh province. The single-track railway line would cover around 150km in Laos and another 120km on the Vietnamese side. It would be used for both freight and passenger transport. The study was expected to be completed between eight and 12 months. Construction was expected to start by the end of 2021, with completion expected by 2024.

February 2020
Laos and Thailand held a meeting from February 25-26, 2020, aimed at boosting bilateral trade and investment.

March 2020
Construction started on the power supply project for Laos-Mainland China railway scheme. The power supply project, running along the railway line through five provincial administrative regions in northern Laos, involved the construction of 20 circuits of 115kV transmission lines, totalling 268km, as well as 635 power towers. The project would extend 11 bays in 10 substations to supply power from Electricite du Laos (EDL) grid to 10 railway traction substations. The project was being executed by a joint venture between China Southern Power Grid Yunnan International Co and EDL on a build-operate-transfer model. The project is due to become operational in March 2021. The 414km railway line will run from the Boten border gate at the Laos-Mainland China border to Vientiane and is due to be operational in December 2021.

April 2020
A proposed 13-measure economic stimulus package was endorsed by the cabinet. Measures included establishing a separate task force to address the economic impact of Covid-19. A new electricity tariff to ensure the supply of electricity, in effect from May 1, 2020, through December 31, 2025, had been approved. Other policies included duty fee exemption for imports of goods to be used specifically for the outbreak, exemption of profit tax (PT) for businesses earning between LAK50 million and LAK400 million for the June quarter of 2020, deferring tax collection from tourism-related businesses for three months; postponing mandatory contribution to social security by affected businesses for three months, and extending the road tax payment by three months.

Sources: BBC Country Profile – Timeline, Mekong River Commission, Vientiane TimesAsia News, IMF, Fitch Solutions

 
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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
71,600,000
About this project
Region(s)
Project Sector(s)
Format of Cooperation(s)
About this project

Overview

Malaysia is one of the most open markets in the world. Its economy is well diversified and has successfully weathered the impact of external shocks. This has been bolstered by strong macroeconomic management, with low and stable inflation and on-track fiscal consolidation. The financial system remains well-functioning and regulated, boasting a well-capitalised banking system and deep capital markets. An increasingly challenging external environment will reduce opportunities for export-led growth in the short term. However, domestic demand is expected to continue to anchor economic growth, supported by continued income growth and a stable labour market. In the longer term, growth will be driven by rising productivity levels.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

December 2016
Sultan Muhammad V was sworn in as the new king, succeeding Sultan Abdul Halim Mu'adzam Shah.

May 2018
An alliance of opposition parties, led by Mahathir Mohamad, won the general election and Mahathir became the Prime Minister.

January 2019
Sultan Abdullah of Pahang was sworn in, succeeding Sultan Muhammad V.

July 2019
The Ministry of Transport in Malaysia sanctioned the 29.9km Komtar-Bayan Lepas Light Rail Transit (LRT) project with 30 conditions, after reviewing a detailed project study submitted to the ministry by Penang Economic Planning Unit. The conditions included a Detailed Environmental Impact Assessment for the project and the Penang South Reclamation, a social impact assessment, a heritage impact assessment and traffic impact assessment. The MYR8.4 billion (over USD2 billion) project was part of the MYR46 billion (almost USD11.2 billion) Penang Transport Masterplan.

September 2019
Vsolar Group's wholly-owned Solar Interactive had entered a collaboration and alliance agreement with Genbayu Gemilang for the construction of a solar energy generation facility in Negeri Sembilan, Malaysia. The photovoltaic (PV) facility, with an installed capacity of up to 90MW, would be built on a nearly 1.2sq km site owned by Genbayu at Setul in Seremban.

November 2019
UK-based medical device maker Smith & Nephew unveiled plans to build its new manufacturing facility in Penang, Malaysia. The facility, which would mainly support the company's orthopaedics franchise, would come up at Batu Kawan Industrial Park. Construction was likely to start in early 2020, while the first production batches were expected to be shipped before end-2022.

January 2020
Bank Negara, Malaysia’s central bank cut the overnight policy rate by 25bps to 2.75% to bolster the economy amid signs of global slowdown.

February 2020
Malaysia’s Prime Minister Mahathir Mohamad stepped down.

March 2020
Muhyiddin Yassin was sworn in as Prime Minister on March 1.

Malaysia put a Movement Control Order (MCO) in place from March 18 and would be effective until at least April 28, 2020. All public gatherings were closed; borders were closed; schools, universities and non-essential businesses were closed.

To reduce the effect of Covid-19 in the state, Malaysia released a stimulus package of MYR25 billion (1.7% of GDP) on March 27, including additional health spending; wage subsidies to help employers retain workers; and infrastructure spending in East Malaysia. The government also setup a RM50 billion fund for working capital loan guarantees for all Covid-19 affected businesses.

Sources: BBC Country Profile – Timeline, IMF, Fitch Solutions

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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
528,000,000
About this project
Region(s)
Project Sector(s)
Format of Cooperation(s)
About this project

Overview

Indonesia is a sovereign archipelago in South East Asia and the fourth most populous country after Mainland China, India and the United States. It has maintained political stability and is one of Asia Pacific's most vibrant middle-income economies. The country's economic planning follows a 20-year development plan (2005 to 2025). It is segmented into five-year medium-term plans called the Rencana Pembangunan Jangka Menengah Nasional, each with different development priorities. The current medium-term development plan – the third phase of the long-term plan – runs from 2015 to 2020. It focuses on infrastructure development and social assistance programmes related to education and healthcare, among other areas. To strengthen the country's economic growth, the government continues to pursue trade agreements with various countries and economic blocs. Indonesia also continues to carry out policy reforms intended to cut red tape and make it easier to conduct business in order to improve the investment climate of the country.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

June 2018
Regional and local elections were held on June 27, 2018 to elect 17 governors, 39 mayors and 115 regents across the country. The elections included gubernatorial elections for Indonesia's four most populous provinces: West Java, East Java, Central Java and North Sumatra.

September 2018
A major earthquake and tsunami killed more than 2,000 people on the island of Sulawesi, around the city of Palu.

December 2018
The eruption of the Anak Krakatau caused a tsunami, killed more than 420 people and displaced an additional 40,000.

April 2019
Parliamentary and presidential elections were held. It was the first time in the country's history that the president, the vice president, members of the People's Representative Council (DPR), members of the People's Consultative Assembly and members of local legislative bodies were elected on the same day. Both candidates, Joko 'Jokowi' Widodo and Prabowo Subianto, promoted a mix of business-friendly, populist and protectionist policies.

May 2019
On May 21, 2019, the General Elections Commission declared Joko Widodo victorious in the presidential election, with more than 55% of the vote. Widodo's Indonesian Democratic Party of Struggle finished first in the DPR election, with 19.33% votes, followed by Prabowo's Gerindra with 12.57% and Golkar Party with 12.31% votes.

August 2019
The government revealed Borneo as the proposed site for the new capital of the country. Indonesia was seeking to move its capital away from the flood-prone city of Jakarta, parts of which have permanently sunk in water owing to constant flooding. The new capital was estimated to cost upwards of USD33 billion to build. An Indonesian unit of the management consulting company McKinsey had been appointed to do feasibility studies, including the exact funding needs and transport links with nearby cities.

October 2019
PT Borneo Alumina Indonesia selected a consortium led by Black & Veatch to manage the development of an alumina refinery in West Kalimantan. The facility would feature 1 million tonne per annum smelter-grade alumina refinery, a coal gasification plant and a coal-fired power plant. Black & Veatch is responsible for design review, equipment inspection, and providing power and coal gasification subject matter proficiency.

November 2019
Hyundai Motor Company entered into a memorandum of understanding with the Government of Indonesia to build its first car manufacturing plant in Jakarta. The project will involve an investment of around USD1.5 billion until 2030, including product development and operation costs. The facility, which was expected to become operational in the second half of 2021, would have an initial production capacity of 150,000 units annually. This was expected to reach nearly 250,000 vehicles when the plant became fully operational.

February 2020
The Indonesian Consulate General stated that the business community of Karachi, Pakistan, was trading and in consultation with Indonesian counterparts to boost bilateral trade and economic cooperation between the two states.

President Joko Widodo announced that the National Development Agency would submit a bill to accelerate the relocation of the capital city to Borneo for parliamentary approval. The government planned to move the capital in phases commencing in 2024 and anticipates it would become home to between 6 million and 7 million people.

March 2020
The government moved to relax the constitutional deficit cap of 3% of GDP and launched a number of fiscal stimulus packages to support the economy through the Covid-19 pandemic.

April 2020
The government raised USD4.3 billion through the issuing of pandemic bonds of up to 50-year dollar debt – the first of its kind in the region.  The bonds would be used to fund the economy’s Covid-19 relief and recovery efforts.

Sources: BBC Country Profile – Timeline, IMF, The Strait Times, Fitch Solutions

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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
Not Specified
About this project
Region(s)
Project Sector(s)
Format of Cooperation(s)
About this project

Overview

Myanmar is a low-middle income country, and the economy is supported by abundant natural resources and commodities. Its largest export is natural gas, which provides an important revenue stream. Myanmar is currently in a democratic transition: the government has launched new economic policies, finalised new health and education sector strategies, and adopted new priorities – such as nutrition and rural development. However, there remain some challenges to achieving sustainable and inclusive income growth, as well as maintaining stability in the restive regions of the country.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

November 2015
The Opposition National League for Democracy – led by Aung San Suu Kyi – won enough seats in parliament to form a government.

April 2017
Myanmar held scheduled by-elections to fill 19 parliamentary seats.

March 2018
President Htin Kyaw resigned on health grounds and was replaced by Win Myint, a fellow Suu Kyi loyalist.

October 2018
The Japan International Cooperation Agency signed a grant agreement with the government of Myanmar, providing a grant of up to JPY6.03 billion (USD52.96 million) for upgrading Mandalay Port. The project was aimed at developing the port by constructing berthing facilities and a terminal, as well as the mechanisation of cargo handling facilities. The Ministry of Transport and Communications would execute the project.

August 2019
Korea Land and Housing Corporation (LH) signed a memorandum of understanding (MoU) for setting up a joint venture (JV) with the Urban and Housing Development Department and Global Sae-A Co for the construction of an industrial complex in Naypyitaw, Myanmar. Dubbed Korea Myanmar Industrial Complex, the project would be built over 2.24sq km in Nyaungnapin. To be implemented by the JV, the project would entail an investment of KRW130 billion (USD107.4 million). LH and the Myanmar government would hold a 40% interest each in the JV, while the remaining 20% would be held by Global Sae-A. Construction was likely to start in 2020.

November 2019
Groundbreaking of Toyota Myanmar Co took place on its new plant at the Thilawa Special Economic Zone (SEZ) in Yangon, Myanmar. The USD52.6 million manufacturing facility would manufacture 2,500 Toyota Hilux pickup trucks annually using the semi knock-down method. The facility was expected to be commissioned in August 2020, with production to start from February 2021.

November 2019
The Asian Development Bank (ADB) sanctioned a USD51. 2 million financing package for the Rural Roads and Access Project in Myanmar. The scheme involved the modernisation of around 152km of rural roads across 150 villages in the Ayeyarwady and Magway regions with paved surface and climate-resilient features. The ADB was providing a USD45.4 million loan and a USD5.8 million grant from the Asian Development Fund for the project. The scheme, which would also receive USD1.21 million from the Government of Myanmar, was likely to be completed by the end of 2025.

December 2019
A consortium of Myanmarese and Japanese firms reported plans to build a liquefied natural gas (LNG) terminal and a gas power plant at the Thilawa SEZ in Myanmar. The consortium, which included Myanmar Agribusiness Public Corporation, Eden Group, Marubeni Corporation and Mitsui & Co, would implement the USD2.billion project under a 25-year build, operate and transfer mode. The power plant would have a capacity of 1.25GW, and the LNG terminal was expected to facilitate the production of electricity on floating units. The power plant would use LNG from Singapore, Malaysia and Indonesia. Construction was expected begin in March 2020 and was likely to be completed in 30 months.

January 2020
Work on an industrial park project in Yangon, was due to start in March 2020, according to Myanmar Times. The MMK338.7 billion (USD231 million) project would be executed by a partnership between Sembcrop CSSD Myanmar (67%), City Mart Holding (18%) and Myanmar Agribusiness Public Corporation (15%). The development, spanning 5.98sq km in Hlegu, would include general factories, food factories and warehouses. An access road to Thilawa Port via the Yangon-Mandalay Road for the transportation of goods would also be built as part of the project.

February 2020
Myanmar's Urban and Housing Development Department and Amata Asia signed a joint venture (JV) agreement to develop the USD1 billion Yangon Amata Smart and Eco City project. The JV was 80% owned by Amata. The JV had also signed a 70-year land lease agreement with the Yangon regional government to develop the project over 8sq km area near Laydaungkan village, between South Dagon and East Dagon townships. The feasibility study for the project had already been completed and had permit from the Myanmar Investment Commission (MIC). The project envisaged development of an industrial site on 75% of the land and the rest would accommodate commercial and housing facilities. A 600MW power plant, costing between USD500 million and USD600 million, would also be built, together with Thailand's state-owned energy company PTT. The city was expected to house up to 150 factories, with construction of first factory likely to start by Q320 and became operational by 2021.

February 2020
Myanmar's Ministry of Construction issued a request for proposal to 10 pre-qualified bidders for the first phase of the 47.5km Yangon Elevated Expressway. The USD800 million public-private partnership project involved the design, engineering, financing, construction, operation and maintenance of a 27km four-lane elevated toll road in Yangon. The road would link Yangon's central business district with the Yangon Industrial Park while providing a link to Yangon International Airport. The bidders, which included VINCI Highways, China Communication Construction Company, Team Korea Construction and a joint venture between JFE Engineering and Marubeni Corporation, had to submit financial and technical bids for the project by March 31, 2020. A contract was planned to be awarded in May, with preparatory works due to start in June. Construction is slated to be completed in 42 months.

March 2020
Suzuki Motor planned to invest JPY12 billion (USD108.8 million) in the expansion of its automobile plant in Myanmar, according to a press release from the firm. The expansion, which would cover an area of 200,000sq m, involved construction of a new plant for the welding, painting and assembly of automobiles. The facility, to be located at the Thilawa SEZ, would increase the plant's building area from 4,000sq m to 42,000sq m and annual production capacity from 10,000 to 40,000 units. It would be operated by the firm's subsidiary Suzuki Thilawa Motor Co. Construction was planned to start on March 25 and the facility is scheduled to become operational in September 2021.

April 2020
The Japan International Cooperation Agency (JICA) signed a JPY7.34 billion (USD68 million) loan deal with the government of Myanmar for upgrading a thermal power plant. The project involved installing combined cycle facilities at the 50MW Thilawa Thermal Power Plant in the Thilawa SEZ. The project would be executed by Electric Power Generation Enterprise. A tender for the procurement and installation of combined cycle facilities was planned to be opened in January 2021 and the project is due to be commissioned in May 2024.

April 2020
Income and commercial tax payments due in the second and third quarters of the 2020 fiscal year were extend to end of the fiscal year, and an exemption for the 2% advance income tax (AIT) on exports to the end of the fiscal year was announced. A Covid-19 Fund worth MMK100 billion (USD70 million, 0.1% of GDP) had been established at the Myanmar Economic Bank to provide soft loans to affected business (particularly the priority garment and tourism sectors and SMEs) at reduced interest rates. The Ministry of Hotels and Tourism announced that fee for renewal license of hotels and tourism businesses will be exempted for one year up to end of March 2021.

November 2020
General elections will be held.

Sources: BBC Country Profile – Timeline, IMF, Fitch Solutions

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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
147,900,000
About this project
Region(s)
Project Sector(s)
Format of Cooperation(s)
About this project

Overview

Myanmar is a low-middle income country, and the economy is supported by abundant natural resources and commodities. Its largest export is natural gas, which provides an important revenue stream. Myanmar is currently in a democratic transition: the government has launched new economic policies, finalised new health and education sector strategies, and adopted new priorities – such as nutrition and rural development. However, there remain some challenges to achieving sustainable and inclusive income growth, as well as maintaining stability in the restive regions of the country.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

November 2015
The Opposition National League for Democracy – led by Aung San Suu Kyi – won enough seats in parliament to form a government.

April 2017
Myanmar held scheduled by-elections to fill 19 parliamentary seats.

March 2018
President Htin Kyaw resigned on health grounds and was replaced by Win Myint, a fellow Suu Kyi loyalist.

October 2018
The Japan International Cooperation Agency signed a grant agreement with the government of Myanmar, providing a grant of up to JPY6.03 billion (USD52.96 million) for upgrading Mandalay Port. The project was aimed at developing the port by constructing berthing facilities and a terminal, as well as the mechanisation of cargo handling facilities. The Ministry of Transport and Communications would execute the project.

August 2019
Korea Land and Housing Corporation (LH) signed a memorandum of understanding (MoU) for setting up a joint venture (JV) with the Urban and Housing Development Department and Global Sae-A Co for the construction of an industrial complex in Naypyitaw, Myanmar. Dubbed Korea Myanmar Industrial Complex, the project would be built over 2.24sq km in Nyaungnapin. To be implemented by the JV, the project would entail an investment of KRW130 billion (USD107.4 million). LH and the Myanmar government would hold a 40% interest each in the JV, while the remaining 20% would be held by Global Sae-A. Construction was likely to start in 2020.

November 2019
Groundbreaking of Toyota Myanmar Co took place on its new plant at the Thilawa Special Economic Zone (SEZ) in Yangon, Myanmar. The USD52.6 million manufacturing facility would manufacture 2,500 Toyota Hilux pickup trucks annually using the semi knock-down method. The facility was expected to be commissioned in August 2020, with production to start from February 2021.

November 2019
The Asian Development Bank (ADB) sanctioned a USD51. 2 million financing package for the Rural Roads and Access Project in Myanmar. The scheme involved the modernisation of around 152km of rural roads across 150 villages in the Ayeyarwady and Magway regions with paved surface and climate-resilient features. The ADB was providing a USD45.4 million loan and a USD5.8 million grant from the Asian Development Fund for the project. The scheme, which would also receive USD1.21 million from the Government of Myanmar, was likely to be completed by the end of 2025.

December 2019
A consortium of Myanmarese and Japanese firms reported plans to build a liquefied natural gas (LNG) terminal and a gas power plant at the Thilawa SEZ in Myanmar. The consortium, which included Myanmar Agribusiness Public Corporation, Eden Group, Marubeni Corporation and Mitsui & Co, would implement the USD2.billion project under a 25-year build, operate and transfer mode. The power plant would have a capacity of 1.25GW, and the LNG terminal was expected to facilitate the production of electricity on floating units. The power plant would use LNG from Singapore, Malaysia and Indonesia. Construction was expected begin in March 2020 and was likely to be completed in 30 months.

January 2020
Work on an industrial park project in Yangon, was due to start in March 2020, according to Myanmar Times. The MMK338.7 billion (USD231 million) project would be executed by a partnership between Sembcrop CSSD Myanmar (67%), City Mart Holding (18%) and Myanmar Agribusiness Public Corporation (15%). The development, spanning 5.98sq km in Hlegu, would include general factories, food factories and warehouses. An access road to Thilawa Port via the Yangon-Mandalay Road for the transportation of goods would also be built as part of the project.

February 2020
Myanmar's Urban and Housing Development Department and Amata Asia signed a joint venture (JV) agreement to develop the USD1 billion Yangon Amata Smart and Eco City project. The JV was 80% owned by Amata. The JV had also signed a 70-year land lease agreement with the Yangon regional government to develop the project over 8sq km area near Laydaungkan village, between South Dagon and East Dagon townships. The feasibility study for the project had already been completed and had permit from the Myanmar Investment Commission (MIC). The project envisaged development of an industrial site on 75% of the land and the rest would accommodate commercial and housing facilities. A 600MW power plant, costing between USD500 million and USD600 million, would also be built, together with Thailand's state-owned energy company PTT. The city was expected to house up to 150 factories, with construction of first factory likely to start by Q320 and became operational by 2021.

February 2020
Myanmar's Ministry of Construction issued a request for proposal to 10 pre-qualified bidders for the first phase of the 47.5km Yangon Elevated Expressway. The USD800 million public-private partnership project involved the design, engineering, financing, construction, operation and maintenance of a 27km four-lane elevated toll road in Yangon. The road would link Yangon's central business district with the Yangon Industrial Park while providing a link to Yangon International Airport. The bidders, which included VINCI Highways, China Communication Construction Company, Team Korea Construction and a joint venture between JFE Engineering and Marubeni Corporation, had to submit financial and technical bids for the project by March 31, 2020. A contract was planned to be awarded in May, with preparatory works due to start in June. Construction is slated to be completed in 42 months.

March 2020
Suzuki Motor planned to invest JPY12 billion (USD108.8 million) in the expansion of its automobile plant in Myanmar, according to a press release from the firm. The expansion, which would cover an area of 200,000sq m, involved construction of a new plant for the welding, painting and assembly of automobiles. The facility, to be located at the Thilawa SEZ, would increase the plant's building area from 4,000sq m to 42,000sq m and annual production capacity from 10,000 to 40,000 units. It would be operated by the firm's subsidiary Suzuki Thilawa Motor Co. Construction was planned to start on March 25 and the facility is scheduled to become operational in September 2021.

April 2020
The Japan International Cooperation Agency (JICA) signed a JPY7.34 billion (USD68 million) loan deal with the government of Myanmar for upgrading a thermal power plant. The project involved installing combined cycle facilities at the 50MW Thilawa Thermal Power Plant in the Thilawa SEZ. The project would be executed by Electric Power Generation Enterprise. A tender for the procurement and installation of combined cycle facilities was planned to be opened in January 2021 and the project is due to be commissioned in May 2024.

April 2020
Income and commercial tax payments due in the second and third quarters of the 2020 fiscal year were extend to end of the fiscal year, and an exemption for the 2% advance income tax (AIT) on exports to the end of the fiscal year was announced. A Covid-19 Fund worth MMK100 billion (USD70 million, 0.1% of GDP) had been established at the Myanmar Economic Bank to provide soft loans to affected business (particularly the priority garment and tourism sectors and SMEs) at reduced interest rates. The Ministry of Hotels and Tourism announced that fee for renewal license of hotels and tourism businesses will be exempted for one year up to end of March 2021.

November 2020
General elections will be held.

Sources: BBC Country Profile – Timeline, IMF, Fitch Solutions

Has been added to favorites Has been removed from favorites

Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
987,900,000
About this project
Region(s)
Project Sector(s)
Format of Cooperation(s)
About this project

Overview

Laos is one of the fastest-growing economies in East Asia and the Pacific, underpinned by improving access to electricity, education and roads, as well as the implementation of structural reforms aimed at improving the business environment. However, it still lags behind its regional peers. The country’s economic performance will cool somewhat over the medium term as the recent accumulation of public debt places increased pressure on its growth potential. The government is seeking to maintain macroeconomic stability by taking steps to improve domestic revenue collection, control expenditure and strengthen public debt management.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

April 2016
At its five-year congress, the National Assembly appointed Bounnhang Vorachith as president and leader of the ruling Lao People's Revolutionary Party (LPRP), succeeding Choummaly Sayasone who, served as the ruling party's general secretary and president of Laos from 2006 to 2016.

September 2016
Former United States President Barack Obama became the first sitting United States president to visit Laos. The United States committed USD90 million dollars over three years to help clear unexploded bombs that the United States dropped on Laos during the Vietnam War.

December 2016
The governments of Laos and Mainland China announced the joint construction of a high speed rail line between Mainland China and Thailand to link Laos with the transport hubs in these countries.

July 2018
The collapse of a dam in July triggered a pause in the approvals of new hydropower projects and an official review of all existing ones in the country.

August 2018
A consultation process (scheduled to last six months) began for the proposed 770MW Pak Lay hydropower project on the Mekong mainstream in Laos. The consultation involved two regional stakeholder forums and a field visit to the Pak Lay project. The power plant was estimated to require a USD2.13 billion investment. Construction is likely to begin in 2022.

August 2018
Mainland China Southern Power Grid Co signed a memorandum of understanding with the Government of Laos to carry out a feasibility study to explore the possibilities of developing a national power grid in Laos.

December 2018
The Chinese government approved a special fund at the 4th Mekong-Lancang Cooperation Foreign Ministers’ Meeting. The fund would enable Mekong countries to carry out 138 projects, with Laos receiving about USD4.5 million to implement 21 projects.

June 2019
New 500kV and 230kV transmission lines would be installed in the capital city, Vientiane, as a joint project between Électricité du Laos and Mainland China Electric Power Equipment and Technology, an affiliate of State Grid Corporation. The project would provide a sustainable supply of electricity for the development of the capital city.

June 2019
Mainland China and Thailand announced that they had  banned the direct and indirect import of pigs, wild boars and related products from Laos owing to the first African swine fever outbreak reported by the country.

July 2019
Souliyapon Intertrade Co selected China Machinery Engineering Co (CMEC) to serve as the general contractor for a 230MWp solar photovoltaic  project in Laos's Borikhamxay Province. Under the USD345 million contract, CMEC will be responsible for the power plant's design, supply, civil engineering, construction, installation, commissioning and other works. The deal was subject to certain conditions. The construction of the facility is expected to be completed over a period of two years.

September 2019
Tropical storm Podul and tropical depression Kajiki caused flooding in Laos' southern provinces, which caused more than 580,000 people to be displaced and damaged infrastructure and crops in the region.

October 2019
The Government of Laos signed a memorandum of understanding with Petroleum Trading Lao to carry out a feasibility study and complete detailed design for the Laos-Vietnam railway Project. The rail line would start from Thakhaek district in Khammuan province of Laos to Vung Ang seaport in Vietnam's central Hà Tinh province. The single-track railway line would cover around 150km in Laos and another 120km on the Vietnamese side. It would be used for both freight and passenger transport. The study was expected to be completed between eight and 12 months. Construction was expected to start by the end of 2021, with completion expected by 2024.

February 2020
Laos and Thailand held a meeting from February 25-26, 2020, aimed at boosting bilateral trade and investment.

March 2020
Construction started on the power supply project for Laos-Mainland China railway scheme. The power supply project, running along the railway line through five provincial administrative regions in northern Laos, involved the construction of 20 circuits of 115kV transmission lines, totalling 268km, as well as 635 power towers. The project would extend 11 bays in 10 substations to supply power from Electricite du Laos (EDL) grid to 10 railway traction substations. The project was being executed by a joint venture between China Southern Power Grid Yunnan International Co and EDL on a build-operate-transfer model. The project is due to become operational in March 2021. The 414km railway line will run from the Boten border gate at the Laos-Mainland China border to Vientiane and is due to be operational in December 2021.

April 2020
A proposed 13-measure economic stimulus package was endorsed by the cabinet. Measures included establishing a separate task force to address the economic impact of Covid-19. A new electricity tariff to ensure the supply of electricity, in effect from May 1, 2020, through December 31, 2025, had been approved. Other policies included duty fee exemption for imports of goods to be used specifically for the outbreak, exemption of profit tax (PT) for businesses earning between LAK50 million and LAK400 million for the June quarter of 2020, deferring tax collection from tourism-related businesses for three months; postponing mandatory contribution to social security by affected businesses for three months, and extending the road tax payment by three months.

Sources: BBC Country Profile – Timeline, Mekong River Commission, Vientiane TimesAsia News, IMF, Fitch Solutions

 
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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
Not Specified
About this project
Region(s)
Project Sector(s)
Format of Cooperation(s)
About this project

Overview

Laos is one of the fastest-growing economies in East Asia and the Pacific, underpinned by improving access to electricity, education and roads, as well as the implementation of structural reforms aimed at improving the business environment. However, it still lags behind its regional peers. The country’s economic performance will cool somewhat over the medium term as the recent accumulation of public debt places increased pressure on its growth potential. The government is seeking to maintain macroeconomic stability by taking steps to improve domestic revenue collection, control expenditure and strengthen public debt management.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

April 2016
At its five-year congress, the National Assembly appointed Bounnhang Vorachith as president and leader of the ruling Lao People's Revolutionary Party (LPRP), succeeding Choummaly Sayasone who, served as the ruling party's general secretary and president of Laos from 2006 to 2016.

September 2016
Former United States President Barack Obama became the first sitting United States president to visit Laos. The United States committed USD90 million dollars over three years to help clear unexploded bombs that the United States dropped on Laos during the Vietnam War.

December 2016
The governments of Laos and Mainland China announced the joint construction of a high speed rail line between Mainland China and Thailand to link Laos with the transport hubs in these countries.

July 2018
The collapse of a dam in July triggered a pause in the approvals of new hydropower projects and an official review of all existing ones in the country.

August 2018
A consultation process (scheduled to last six months) began for the proposed 770MW Pak Lay hydropower project on the Mekong mainstream in Laos. The consultation involved two regional stakeholder forums and a field visit to the Pak Lay project. The power plant was estimated to require a USD2.13 billion investment. Construction is likely to begin in 2022.

August 2018
Mainland China Southern Power Grid Co signed a memorandum of understanding with the Government of Laos to carry out a feasibility study to explore the possibilities of developing a national power grid in Laos.

December 2018
The Chinese government approved a special fund at the 4th Mekong-Lancang Cooperation Foreign Ministers’ Meeting. The fund would enable Mekong countries to carry out 138 projects, with Laos receiving about USD4.5 million to implement 21 projects.

June 2019
New 500kV and 230kV transmission lines would be installed in the capital city, Vientiane, as a joint project between Électricité du Laos and Mainland China Electric Power Equipment and Technology, an affiliate of State Grid Corporation. The project would provide a sustainable supply of electricity for the development of the capital city.

June 2019
Mainland China and Thailand announced that they had  banned the direct and indirect import of pigs, wild boars and related products from Laos owing to the first African swine fever outbreak reported by the country.

July 2019
Souliyapon Intertrade Co selected China Machinery Engineering Co (CMEC) to serve as the general contractor for a 230MWp solar photovoltaic  project in Laos's Borikhamxay Province. Under the USD345 million contract, CMEC will be responsible for the power plant's design, supply, civil engineering, construction, installation, commissioning and other works. The deal was subject to certain conditions. The construction of the facility is expected to be completed over a period of two years.

September 2019
Tropical storm Podul and tropical depression Kajiki caused flooding in Laos' southern provinces, which caused more than 580,000 people to be displaced and damaged infrastructure and crops in the region.

October 2019
The Government of Laos signed a memorandum of understanding with Petroleum Trading Lao to carry out a feasibility study and complete detailed design for the Laos-Vietnam railway Project. The rail line would start from Thakhaek district in Khammuan province of Laos to Vung Ang seaport in Vietnam's central Hà Tinh province. The single-track railway line would cover around 150km in Laos and another 120km on the Vietnamese side. It would be used for both freight and passenger transport. The study was expected to be completed between eight and 12 months. Construction was expected to start by the end of 2021, with completion expected by 2024.

February 2020
Laos and Thailand held a meeting from February 25-26, 2020, aimed at boosting bilateral trade and investment.

March 2020
Construction started on the power supply project for Laos-Mainland China railway scheme. The power supply project, running along the railway line through five provincial administrative regions in northern Laos, involved the construction of 20 circuits of 115kV transmission lines, totalling 268km, as well as 635 power towers. The project would extend 11 bays in 10 substations to supply power from Electricite du Laos (EDL) grid to 10 railway traction substations. The project was being executed by a joint venture between China Southern Power Grid Yunnan International Co and EDL on a build-operate-transfer model. The project is due to become operational in March 2021. The 414km railway line will run from the Boten border gate at the Laos-Mainland China border to Vientiane and is due to be operational in December 2021.

April 2020
A proposed 13-measure economic stimulus package was endorsed by the cabinet. Measures included establishing a separate task force to address the economic impact of Covid-19. A new electricity tariff to ensure the supply of electricity, in effect from May 1, 2020, through December 31, 2025, had been approved. Other policies included duty fee exemption for imports of goods to be used specifically for the outbreak, exemption of profit tax (PT) for businesses earning between LAK50 million and LAK400 million for the June quarter of 2020, deferring tax collection from tourism-related businesses for three months; postponing mandatory contribution to social security by affected businesses for three months, and extending the road tax payment by three months.

Sources: BBC Country Profile – Timeline, Mekong River Commission, Vientiane TimesAsia News, IMF, Fitch Solutions

 
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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure
Project Stage
Not Specified
Financing Model(s)
Not Specified
Total Project Value(USD)
Not Specified
Capital Required(USD)
104,170,000
About this project
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About this project

Overview

Malaysia is one of the most open markets in the world. Its economy is well diversified and has successfully weathered the impact of external shocks. This has been bolstered by strong macroeconomic management, with low and stable inflation and on-track fiscal consolidation. The financial system remains well-functioning and regulated, boasting a well-capitalised banking system and deep capital markets. An increasingly challenging external environment will reduce opportunities for export-led growth in the short term. However, domestic demand is expected to continue to anchor economic growth, supported by continued income growth and a stable labour market. In the longer term, growth will be driven by rising productivity levels.

Sources: World Bank, Fitch Solutions

Major Economic/Political Events and Upcoming Elections

December 2016
Sultan Muhammad V was sworn in as the new king, succeeding Sultan Abdul Halim Mu'adzam Shah.

May 2018
An alliance of opposition parties, led by Mahathir Mohamad, won the general election and Mahathir became the Prime Minister.

January 2019
Sultan Abdullah of Pahang was sworn in, succeeding Sultan Muhammad V.

July 2019
The Ministry of Transport in Malaysia sanctioned the 29.9km Komtar-Bayan Lepas Light Rail Transit (LRT) project with 30 conditions, after reviewing a detailed project study submitted to the ministry by Penang Economic Planning Unit. The conditions included a Detailed Environmental Impact Assessment for the project and the Penang South Reclamation, a social impact assessment, a heritage impact assessment and traffic impact assessment. The MYR8.4 billion (over USD2 billion) project was part of the MYR46 billion (almost USD11.2 billion) Penang Transport Masterplan.

September 2019
Vsolar Group's wholly-owned Solar Interactive had entered a collaboration and alliance agreement with Genbayu Gemilang for the construction of a solar energy generation facility in Negeri Sembilan, Malaysia. The photovoltaic (PV) facility, with an installed capacity of up to 90MW, would be built on a nearly 1.2sq km site owned by Genbayu at Setul in Seremban.

November 2019
UK-based medical device maker Smith & Nephew unveiled plans to build its new manufacturing facility in Penang, Malaysia. The facility, which would mainly support the company's orthopaedics franchise, would come up at Batu Kawan Industrial Park. Construction was likely to start in early 2020, while the first production batches were expected to be shipped before end-2022.

January 2020
Bank Negara, Malaysia’s central bank cut the overnight policy rate by 25bps to 2.75% to bolster the economy amid signs of global slowdown.

February 2020
Malaysia’s Prime Minister Mahathir Mohamad stepped down.

March 2020
Muhyiddin Yassin was sworn in as Prime Minister on March 1.

Malaysia put a Movement Control Order (MCO) in place from March 18 and would be effective until at least April 28, 2020. All public gatherings were closed; borders were closed; schools, universities and non-essential businesses were closed.

To reduce the effect of Covid-19 in the state, Malaysia released a stimulus package of MYR25 billion (1.7% of GDP) on March 27, including additional health spending; wage subsidies to help employers retain workers; and infrastructure spending in East Malaysia. The government also setup a RM50 billion fund for working capital loan guarantees for all Covid-19 affected businesses.

Sources: BBC Country Profile – Timeline, IMF, Fitch Solutions

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Disclaimer

  1. The information submitted will not be independently verified by the Hong Kong Trade Development Council (HKTDC). HKTDC does not take responsibility for such information and endorse the accuracy, adequacy, completeness, timeliness, reasonableness or any other aspects of the information submitted.
  2. To the fullest extent permitted by law, HKTDC shall not be liable for any and all liability arising out of including without limitation any inaccuracies, incompleteness, errors in, or omissions from, the information submitted nor any representations or misrepresentations contained therein. In no event will HKTDC be liable for any claim, or any direct, indirect, special, incidental or consequential damages, losses or expenses asserted by any third party due to or arising from or in connection with any use or reliance of such information on the Belt and Road Portal website even if they are made or should be aware of the same.
  3. HKTDC may, in their sole discretion and at any time, without prior notice to you and without cause, remove, delete, delist, make or adopt any changes, modifications or amendments to, or correct any error or omission to any information contained in and data linked to your profile on the Belt and Road Portal website and Belt and Road Portal-related publications. HKTDC shall not be liable for any loss of data, removal of information, or for any claim, or any direct, indirect, special, incidental, or consequential damages of any kind (including lost profits) resulting from the removal of your profile or other content of the profile from the Belt and Road Portal website and Belt and Road Portal-related publications.
  4. In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.
Who can help you in this project?
AIG Insurance Hong Kong Limited
Donnelley Financial Solutions
Commtech (Asia) Limited
AEC Capital Limited
PD Academia Limited
EventXtra Limited
SUEZ NWS LIMITED
SUEZ NWS Limited
More on this...
Mainland China / Southeast Asia
Transport and Logistics
Southeast Asia / Mainland China
Transport and Logistics
Southeast Asia / Mainland China
Infrastructure
Southeast Asia / Mainland China
Infrastructure
Mainland China / Southeast Asia
Infrastructure