To:
Economic
& Trade Information relating
to
ASEAN Countries May-June, 2002
Sent
herewith the latest Economic & Trade information in respect of the following countries as received from the respective Indian
Embassies/ High Commissions and other sources.
Members
interested in trade enquiries may directly contact the concerned overseas parties. The Chamber accepts no responsibility concerning
the financial standing/ business credentials of those firms.
A
list of Exhibitions/Trade Fairs to be held in Indonesia, Sri Lanka and Singapore, and also
details of domestic events, is enclosed.
Recent
addition to Chamber's Library (available for
reference)
1. Singapore Exporters - 2001/2002 - Products & Services - connecting Buyers and Sellers (published by Singapore Trade Development Board, now known as International Enterprise Singapore )
(P.
GOPALAKRISHNA)
Secretary
Encls:
INDONESIA
Economic
& Commercial information
§
Economy
Indonesian
economy in the first quarter of the current year grew by 2.47% compared to the same period
of last year. The Commerce Ministry has
urged the nation to focus on revitalizing four crucial industries: textiles, electronics, footwear, pulp and paper,
to rejuvenate the country's manufacturing sector.
§
Foreign
Direct Investment
The
Foreign Direct Investment approval in Indonesia dropped by 88% to US$291.5 million in the
first quarter of the current year compared to US$ 2.44 billion in the same period of year
2001. The popular sectors among foreign
investors during the period were the trading sector with 82 projects, the service sector
with 26 projects, transportation with 13 projects while basic metal, engineering and
electronics industries amounted to 12 projects.
§
Information
Technology
The
sales of IT solutions and services for the retailing sector in Indonesia is predicted to
reach US$ 80 million this year, an increase of about 15% from around US$70 million last
year. Sejatibina Delta Informatika (SDI), an
IT solutions provider, founded in 1995, has expanded to Australia, France, US and INDIA.
§
Bilateral
trade
~
The
Minister for Commerce and Industry, after her visit to India, hoped to finalise counter
trade agreement for setting up of railway project in South Sumatra against export of crude
palm oil (CPO). She also requested India to
cut the import duty on CPO by 10%. It is
hoped that counter trade mechanism could help boost exports of CPO.
~
It
was assured that the issue of ban on import of meat and three wheelers would be addressed.
~
She
sought India's help in setting up a Software Techology Park in Indonesia.
~
Anti
Dumping Committee of Indonesia has initiated a review on expiry of anti dumping measures
imposed on import of hot rolled coil steel from India.
§
India-Indonesia
trade ties
A
delegation from Indonesia headed by the Indonesian Agriculture Minister called upon the
Indian Agriculture Minister and they have decided to work together to face the challenges
of the World Trade Organization and to expand their trade relations. Two Indian companies, Triveni Tissues and
Kirloskar have expressed their keenness in investing in Indonesia.
§
INDOPHARM
2002 Exhibition
About
20 companies from India participated in the INDOPHARM 2002 Exhibition held in Jakarta
during 16-18th May, 2002. It is
learnt that Indonesia's Minister for Health stressed on his government's aim of developing
the health and social affairs sectors and the consequent importance on the restoration and
acceleration of the country's pharmaceutical industry. Indonesia imports around 95% of its
bulk drug requirements. The potential for
Indian pharmaceutical companies to make forays into Indonesia is immense, with its
strengths in the manufacture of bulk drugs, unique formulations, pharmaceutical equipment
besides its 5000 year old experience in Ayurveda and its excellent educational facilities.
§
Visits
Her
Excellency, Mrs. Megawati Soekarnoputri, the Indonesian President, visited India from April 1-5, 2002 with the aim to
further strengthen the economic and trade co-operation between the two countries. Besides the nine MOUs signed during her visit,
three inter-governmental MOUs were also signed.
§
Exports/
Imports
Indian
exports to Indonesia - January-December 2001 - US$ 466.25mn.
Indian
imports from Indonesia - January-December 2001 - US$ 1053.93 mn.
§
Trade
enquiries
A
list of trade enquiries is enclosed.
SRI
LANKA
§
Economy
After
achieving 6.0% growth in GDP in 2000, Sri Lanka faced negative economic growth of 1.3% in
2001. Several adverse factors were
responsible for the negative growth. Slowing
down of the world economic activity, among others, have affected the economic recovery. In addition, the prolonged power cut adversely
affected most manufacturing activities.
§
Exports
Global
exports in the early part of this year were worth US$ 330.57 mn and global imports were
worth US$436.85 mn. Exports to India in
January 2002 were US$8.90 mn and imports US$60.00 mn.
§
CEAT-Kelani
CEAT-Kelani
International Tyres (Pvt) Ltd., a joint venture of CEAT India, exported tyres worth
US$100,000 and secured orders worth US$800,000, comprising of truck, light truck and three
wheeler tyres.
§
Lankan
expertise for South Asian countries
Plant
Genetic Resource Centre of the Sri Lankan Agriculture Department in collaboration with
Japan International Cooperation Agency, will be arranging a Rs.1.5 million training
programme to offer its expertise in plant genetic resources conservation and management. Sri Lanka claims to have made considerable
strides in its plant genetic resources conservation and management aspects with over
10,000 plant genetic activism and germplasms.
§
Ban
on import of cut flowers
The
Agriculture Department of Sri Lanka has decided to ban import of cut flowers which is to
come into force by June this year. Flowers
that cannot be locally grown will, however, be allowed.
Flower imports from India and Singapore will be totally banned as per the
report.
§
Committee
to oversee import of essential items
The
government of Sri Lanka has appointed an eight member "Food and Essential Items
Committee" to study the import of essential items in order to control cost of living
without affecting local producers. The
committee will decide what are the essential items and when to import in order to ensure
availability of the goods in the market at a reasonable price.
§
Trade
enquiries
A
list of trade enquiries is enclosed.
SINGAPORE
§
Economy
The country's economy improved in the first quarter of this year (January-March 2002) recording a smaller contraction of 1.7% over the same period last year. This compares favourably with the 6.6% decline in the fourth quarter of last year. On an annualised quarter-on-quarter basis, growth continued to pick up from the 5.6% in the last quarter of 2001 to 7.7% for the first quarter of this year., according to the figures released by the Ministry of Trade and Industry (MTI). The investments are predominantly in the electronics and chemicals industries, with foreign investors accounting for 84% of the commitments.
§
Economic
Performance for the first quarter 2002
Singapore's
goods producing industries again registered negative growth in the first quarter of this
year, contracting by 4.5% (year-on-year comparison). The manufacturing sector showed signs
of recovery in the first quarter 2002, with the year-on-year decline reaching a moderate
level of minus 3.7%, following the sharp 18.6% fall in the last quarter of 2001(Q4-2001).
Services industries improved in the first quarter of 2002, with the sector's year-on-year decline reaching minus 0.2%, as compared to the 1.3% fall in the last quarter of 2001, aided by growth in the transport and communications sector where container through-put ended 5 successive quarters of declines to grow by 9.1%. Financial services continued to perform badly, contracting again by 3.2% in Q1-2002, after two quarters of negative growth.
§
Semicon
Singapore 2002 Event
Over 800 semiconductor
companies worldwide participated in Semicon Singapore 2002, one of the biggest
semiconductor exhibitions held in the country. The event attracted over 10,000 trade
visitors. First quarter results have
reflected a robust semiconductor industry, with Asian semiconductor firms posting
better-than-expected profits.
§
Bilateral Trade
In
terms of the agreement on 8th April, 2002 between the Prime Ministers of India and
Singapore, an India-Singapore Joint Study Group
(JSG) has been established to study the benefits of an India-Singapore Comprehensive
Economic Cooperation Agreement (CECA). The composition of the JSG is as under:
~
Dr.Rakesh
Mohan(Co-Leader), Advisor to Finance Minister
~
Mr.Atul
Sinha, Additional Secretary, Ministry of Commerce & Industry
~
Dr.J.Bhagwati,
Joint Secretary, Department of Economic Affairs,
~
Mr.Rajiva
Misra, Joint Secretary (ED & MER), MEA
~
Mr.Sanjiv
Goenka, former President, CII
~
Mr.Lim
Chin Beng(Co-Leader), Member-Public Service Commission
~
Mr.Goh
Aik Guan, Deputy Secretary, Min of Trade & Industry.
~
Mr.Wong
Kwok Pun, Director, Ministry of Foreign Affairs
~
Mr.Kwek
Leng Joo, Vice Chairman, Singapore Business Federation (SBF)
~
Mr.S.Iswaran,
Managing Director, Temasek Capital
The
terms of reference of the JSG are:
~
study
the scope and structure of the CECA including liberalisation of trade in goods, services
and investments and other disciplines of international trade;
~
explore
co-operation elements in fields of mutual interest such as Life Sciences, Information and
Communications Technology, Tourism, R&D and other fields.
The JSG aims to complete its work within one year after its first meeting- scheduled for June/July 2002- and thereafter submit its report to the two Prime Ministers with its recommendations.
§
Singapore
Airport Terminal Services (SATS) purchase of stake in Indian catering venture approved.
SATS'
proposal to acquire a 49 per cent stake in an Indian catering venture has been cleared and
approved by the Indian government. The stake will cost the listed unit of Singapore
Airlines, US$13.7 million (S$24.5 million). The
catering venture - Taj SATS Air Catering - will run the airline catering services of the
Taj Group of hotels.
§
India-Singapore
trade
As compared to a
marginal 0.3 per cent growth in Singapores global trade turnover in May, 2002, total
bilateral trade between India and Singapore in May 2002 grew strongly by 6.3 per cent
(compared to the same period last year), led by products like Parts & Accessories of
Automatic Data Processing Machines, Non-Industrial Diamonds, Aluminium Unwrought, Crude,
Articles Of Jewellery etc.
§
Visits
~
March 5-6th,
2002 - A delegation from the Singapore Indian Chamber of Commerce & Industry visited
New Delhi and had meetings with the Minister of State for External Affairs, Secretary
(Revenue] and the Directorate General of Foreign Trade.
~
March 7-8th, 2002 - Top
management from various companies in the telecommunications, technology and media sectors
in India visited Singapore to attend the "ICICI Securities Investor Conference 2002 -
The Knowledge Edge" organised by ICICI Securities and Finance Company Ltd. and
Singapore Exchange Ltd.
~
March 13-17th,
2002 - A multi-product delegation from Engineering Export Promotion Council, India,
visited Singapore and had beneficial business meetings with Chambers of Commerce officials
and importers in Singapore.
~
April 7-9th,
2002- Prime Minister Shri Atal Bihari Vajpayee, accompanied by Minister of Disinvestment-
Mr.Arun Shourie and other delegates from Confederation of Indian Industry and Federation
of Indian Chambers of Commerce & Industry, visited Singapore. The highlight of the visit was the announcement of
the setting up a Joint Study Group to establish a Comprehensive Economic Partnership
Agreement with both sides calling for closer bilateral economic and cultural cooperation. Bilateral trade touched S$6.87 billion in year
2001 - S$2billion formed India's exports with S$4.87 billion being Singapore's exports.
~
April 9-12th,
2002 - The Agriculture Products Export Development Authority (APEDA) participated in the
FHA 2002 event held in Singapore It launched
a mango promotion campaign at its stall, and displayed a variety of mango fruits and mango
products, attracting wide interest from the visitors and public.
~
April 2124th,
2002 - Shri.B.Gopalakrishna Reddy, Minister for IT & SSI (Biotechnology) and
Shri.B.P.Acharya, IAS, Secretary, Industries & Commerce Department visited Singapore
to attend the Conference and Exhibition on Biotechnology in Asia 2002, held at Singapore.
~
April 26-27th,
2002 - In a major drive to attract Indian companies to list in Singapore, the head of
Singapore Exchange (SGX), Mr Thomas Kloet, accompanied by the Monetary Authority of
Singapore (MAS) Deputy Managing Director and head of the Securities and Futures
Department- Mr.Yeo Lian Sim,and other senior officials of MAS, visited Mumbai, with the aim of getting Indian companies planning to raise
capital overseas, to consider Singapore as a destination. The delegation projected
Singapore as an attractive destination for Indian companies and the most favoured Asian
city for business.
~
May 14th-16th,2002
- A delegation consisting of 53 legislators from the Andhra Pradesh Legislative Assembly,
including media persons and officials visited Singapore.
A presentation on Singapore's economy and bilateral trade relations
was made by a team of IE Singapore officials.
~
May 27-29, 2002 - The
Minister of Petroleum & Natural Gas, his deputy and senior level representatives from
Ministry of Petroleum & Natural Gas and the Directorate General of Hydrocarbons,
visited Singapore to promote investments in oil and natural gas exploration in India under
the New Exploration Licencing Policy (NELP-III). The delegation also included Shri. Naresh
Narad, Additional Secretary, MOPNG; Shri. J.M.Mauskar, Joint Secretary, MOPNG; Dr.Avinash
Chandra, Director General HydroCarbons, DGH; Shri.Apurva Chandra, PS to Minister; and
others.
A Road Show on New
Exploration Policy (NELP-III) was organised at the Meridien Hotel in Singapore on 28th May
2002, targeting key petroleum centers and companies. The Third Round of offered business
and investment opportunities in 27 oil blocks, covering 11 onland, 7 shallow water
offshore and 9 deep water offshore blocks. The
road show was attended by 34 companies/organizations.
Some of the major stakeholders in India's upstream petroleum sector namely Cairn Energy,
BG Group and Oil and Natural Gas Corporation also made presentations during the NELP III
roadshow outlining their experience and vision about India's petroleum sector, especially
the upstream sector. JP Morgan, the
international renowned investment banker, also made a presentation on investment climate
in India and risk perception indicating that the investment climate in India was positive
and upbeat.
~
May 10th 11th 2002. - A 4-member Study Team from the West
Bengal Consultancy Organisation Ltd. (WEBCON), a Government enterprise, visited
Singapore.to explore the possibility of making joint efforts in promoting tourism related
projects in East and North East India.
§ Trade
enquiries
A
list of trade enquiries is enclosed.
THAILAND
§
Economic
& Commercial Information
The
country's exports in the first quarter of 2002 fell by 6.72% compared to the same period
in 2001. Imports in the first quarter were
worth $14.6 billion and exports $13.8 billion leading to trade deficit of $800 million. The fall in demand for electronics contributed to
the low first quarter export figure.
§
Joint
Trade effort
~
The
Finance Ministry will assist three trade associations representing Textiles &
Garments, Jewellery and Leather products to join hands to develop a marketing strategy to
cope with mounting global competition. It is
expected that in the third quarter of 2002, Thailand would launch "Bangkok a world
fashion city" event inviting famous designers and fashion models from around the
world to participate.
~
Indian
Space Research Organisation has renewed lease of seven transponders for a period of 6
months from the SHIN Satellite, Thailand's only satellite transponder provider. In January, 2002 ISRO launched its own INSAT 3-C
satellite which sparked news reports that lease of SHIN's transponders would not be
renewed by ISRO. Indian clients account for
nearly 22% of SHIN Satellites earnings.
~
The
Board of Investment (BOI) predicts 200 billion Baht investment for 2002. To meet this target, the BOI has mapped out an
aggressive strategy for private investors to invest in the automotive, fashion,
information technology and service industries. In
the first quarter of 2002, the investment projects approved by the BOI were in the
petrochemical industry, agribusiness, processed food industry, electronics and household
appliances sector.
§
Thai
poultry and shrimp
After
the antibiotic nitrofuran was found in some shipments of Thai poultry and shrimp, the
European Commission has announced that they would start testing all Thai poultry (as well
as shrimp from Vietnam, Thailand and Burma) for banned drugs. Nitrofuran is a veterinary drug used in food
producing animals. The EU also informed
Thailand that a ban would be imposed on Thai poultry and shrimp if the antibiotic was
found in any subsequent shipments. Subsequently, the Thai Cabinet approved a Commerce
Ministry's proposal to ban the import of 17 chemical and antibiotic substances used in
animal feed by the producers of frozen shrimp and chicken. Thailand is the largest
exporter of frozen shrimps and the fourth largest exporter of frozen chicken.
§
India-Thailand
The
Asian Highway that will connect India, Myanmar and Thailand, would be operational
hopefully, in 18 to 24 months. An agreement
has been signed on 6th April, 2002 between the Foreign Ministers of the three
countries. Two taskforce have been set up to
follow up details of the pact, one on financing to be chaired by Thailand and the other on
technical matters to be chaired by India.
§
Visits
~
25th-27th
March, 2002 - A 5-member team headed by Shri U. Mallik, General Manager, ITPO, New Delhi,
visited the 3 major Convention and Exhibition Centres in Bangkok to study the special
architectural features, audio-visual system and sound insulation system at these premier
Convention Centres of Thailand.
~
27th-29th
March, 2002 - Shri Atul Sinha, Additional Secretary, Ministry of Commerce, visited
Thailand, in connection with ESCAP related meetings.
~
28-30th
April, 2002 - The Minister of Small Scale Industries and ITES, Govt. of Andhra Pradesh,
visited Thailand and had meetings with Deputy Minister of Industry of Thailand and Deputy
Permanent Secretary of the Ministry of Labour and Social Welfare to discuss employment
generation schemes and the SSI clusters in Thailand with particular reference to the
"one industry-one village" concept.
~
29th
April-3rd May, 2002 - Professors Asopa and Raghuram from Indian Institute of
Management, Ahmedabad, visited Thailand, to study existing systems, processes and
procedures relating to transportation and handling of select agricultural goods meant for
export.
§
Trade
January-March 2002
Thailands
exports to India: $ 99.8 mn. (decrease of
7.7% compared to the same period in 2001
Thailands
imports from India: $ 181 mn (decrease of 2.4% compared to the same period 2001).
VIETNAM
§
Economic
Relations
A
recent survey by Japan External Trade Organisation (JETRO) revealed that Vietnam is the
second best destination after China among the ten Asian countries that have ideal
investment environment. It is
said that Vietnam has been ranked fifth (along with China) among thirteen Asian countries
as having a less risky business environment than some other countries.
§
Economy
After
registering an impressive growth of 6.8% during 2001, GDP grew at 6.6% in the first
quarter of 2002. Vietnamese authorities are,
however, upbeat about achieving the target of 7.3% for the whole of 2002. Vietnam is the second fastest growing economy in
the region after China. The industrial sector
is leading with an impressive growth of about 14% recorded during January to May 2002.
§
Exports
The
country's exports during January to April 2002 declined by 8.6% compared to the
corresponding period last year. The main
reasons for the decline in exports are the lower crude oil prices in the international
market and the reduction in export prices of agricultural products such as rice, coffee,
pepper, etc. The trade deficit widened
because imports increased by 3%. While the
exports were of the order of US$ 4.5 billion, the imports were valued at US$ 5.15 billion.
§
Imports
During
January to April 2002, the total value of imports increased by 3% to US$5.15 billion. The main items of imports were machinery and spare
parts, refined petroleum, fabrics and other garment material, steel, plastics,
fertilisers, chemicals, pharmaceuticals, steel billets and yarn.
§
Import
of Clinker/Cement
According
to local media reports, the demand for cement is expected to increase by 15% to 18.7
mn.tonnes in 2002. The domestic production of
clinker can meet up to 13 mn. tonnes only, while the industry needs about 15 mn. tonnes,
necessitating an import of about 2.5 mn tonnes in 2002.
§
Import
of Milk
90%
of fresh milk substitutes were being imported mostly in the form of skimmed milk and whole
milk powder. It has been reported that the
Government of Vietnam is negotiating with other countries for import of dairy cows. There is a total demand of 510,000 tonnes of milk; domestic production is only 55,000 tonnes and the
balance 455,000 tonnes is being met through imports.
§
Automobile
Industry
During
the period 2001, about 28,000 cars and commercial vehicles were imported into Vietnam. At present, there are 11 auto joint ventures
in auto production and assembly with the registered capital of US$ 574.7 mn. and the
production capacity of 1,48,000 automobiles a year in Vietnam.
§
Visits
Representatives
from several companies - M/s Alfa Laval, Advani Oerlikon, Kalapatru, Polar, KCP and AUM
Impex - visited Vietnam in connection with
business promotion.
§
Trade
between India and Vietnam
Indian
exports to Vietnam recorded an increase of 28.65% to reach US$ 229 mn during the calendar
year 2001.
Imports
from Vietnam to India recorded an increase from US$ 9.30 mn app. during April-December
2000-2001 to US$ 14.40 mn during April-Dec 2001-02, mainly due to rise in imports of
spices by India.
TRADE
ENQUIRIES
INDONESIA
Furniture
industries
Rattan
and Wooden furniture and handicraft