Investment – Asia Pacific Metalworking Equipment News | Manufacturing | Automation | Quality Control https://www.equipment-news.com As Asia’s number one English metalworking magazine, Asia Pacific Metalworking Equipment News (APMEN) is a must-read for professionals in the automotive, aerospace, die & mould, oil & gas, electrical & electronics and medical engineering industries. Sun, 12 May 2024 23:54:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 Thailand May Be The Next Manufacturing Base With Japan’s Support https://www.equipment-news.com/thailand-may-be-the-next-manufacturing-base-with-japans-support/ Sun, 12 May 2024 23:30:05 +0000 https://www.equipment-news.com/?p=32975 Thailand Commerce Ministry invited members of the Japan Business Federation, also known as “Keidanren”, to invest in manufacturing medical equipment, railway, aircraft, innovation, and clean-energy industries. Source: The Nation Thailand The event highlighted the kingdom’s suitability as manufacturing base under…

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Thailand Commerce Ministry invited members of the Japan Business Federation, also known as “Keidanren”, to invest in manufacturing medical equipment, railway, aircraft, innovation, and clean-energy industries.

Source: The Nation Thailand


The event highlighted the kingdom’s suitability as manufacturing base under modern global trends. Thai trade delegates led by Deputy PM and Commerce Minister Phumtham Wechayachai met with executives of Keidanren, led by Suzuki Jun, chair of Japan-Thailand Trade and Economic Committee at Imperial Hotel in Tokyo.

During the meeting, Phumtham underscored Japan was Thailand’s third-largest trade partner last year, while accumulated investment amount from Japanese corporations made up for 25% of the kingdom’s total foreign investment, more than any other country.

He invited Japanese business leaders to invest in Thailand as well as visit the country to witness its potential. The Thai government has facilitated this by exempting visa requirements for Japanese visiting Thailand for up to 30 days since 1 January 2024, he added.

Phumtham said Thailand possesses readiness to be a manufacturing and exporting bases for various industries, adding that the government has prepared and promoted Thai entrepreneurs for new global trends that focus on green business, sustainable manufacturing, low-carbon emission and the use of renewable energy.

 

 

 

 

 

 

 

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Charting The Flight Path: MRO Investments To Gravitate Towards Southeast Asia https://www.equipment-news.com/charting-the-flight-path-mro-investments-to-gravitate-towards-southeast-asia/ Mon, 04 Mar 2024 06:00:24 +0000 https://www.equipment-news.com/?p=32463 As aviation industry gears up for a potential boom in the region, what does 2024 hold for the sector for MRO? Uncover the countries poised to reap the benefits and navigate the upcoming aviation landscape.   According to a report by…

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As aviation industry gears up for a potential boom in the region, what does 2024 hold for the sector for MRO? Uncover the countries poised to reap the benefits and navigate the upcoming aviation landscape.  


According to a report by Allied Market Research, “Southeast Asia Air Transport MRO Market by Aircraft Type, End-Use, Organization Type, and Service Type: Southeast Asia Opportunity Analysis and Industry Forecast, 2021–2032,” the Southeast Asian air transport MRO market was valued at US$5,259.1 million in 2021, and is projected to reach US$13,481.3 million by 2032, registering a CAGR of 7.8% from 2022 to 2032.

The Air Transport MRO (Maintenance, Repair, and Operations) sector plays a vital role in ensuring safe and efficient aircraft operation. It encompasses a range of services and activities necessary to maintain & repair aircraft, systems, and components throughout their operational lifespan.

MRO services cover various aspects, including routine inspections, scheduled maintenance, unscheduled repairs, component replacements, and overall management of aircraft maintenance programs. These services are conducted by specialised MRO companies, both in-house by airlines and outsourced to third-party providers, and adhere to strict regulatory standards and guidelines to ensure compliance with safety regulations.

The return of air travels are jump starting MRO investments. Greater penetration in the commercial sector hike MRO activities in Southeast Asia.

However, the biggest challenge as seen in other industries — shortage of skilled labour and jammed supply chains are thwarting its momentum. Allied Market Research added supportive government policies by the government of the Southeast Asian countries and technological advancement by the market players are expected to provide lucrative opportunities for the expansion of the Southeast Asian air transport MRO market.

 

 

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Charlie Munger, The Man Who Saw BYD’s Potential Passes At 99 https://www.equipment-news.com/charlie-munger-the-man-who-saw-byds-potential-passes-at-99/ Wed, 29 Nov 2023 01:48:50 +0000 https://www.equipment-news.com/?p=31489 He was Warren Buffet’s longtime partner at Berkshire Hathaway, and also the man who pushed his friend to invest in BYD, which became an EV household name in China and globally. Charlie Munger, who helped Warren Buffett build Berkshire Hathaway…

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He was Warren Buffet’s longtime partner at Berkshire Hathaway, and also the man who pushed his friend to invest in BYD, which became an EV household name in China and globally.

Charlie Munger, who helped Warren Buffett build Berkshire Hathaway into an investment powerhouse, has died at a California hospital. He was 99. Berkshire Hathaway said in a statement that Munger’s family told the company that he died Tuesday morning at the hospital just over a month before his 100th birthday.

“Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation,” Buffett said in a statement. Munger served as Buffett’s sounding board on investments and business decisions and helped lead Berkshire for more than five decades and served as its longtime vice chairman.

Five years ago, Warren Buffett told CNBC that he would like to take credit for the idea of investing in BYD, but it was his longtime partner and vice chairman, Charlie Munger, who pushed him to do so. Munger himself told analysts his bet for BYD was based on a single person: Wang Chuanfu.

According to Munger and BYD’s filings on the Hong Kong stock exchange, Wang was raised by his siblings, who paid for him to go to college and get an education in metallurgy. He established BYD in Shenzhen, China, to develop rechargeable batteries after briefly running a battery development unit for a state-owned metallurgy research institute in Beijing.

Within three years, BYD had become one of the world’s largest rechargeable battery suppliers. In 2003, the battery company started to make mobile phone components. Just two years later, the company launched sales of its first vehicle, a compact gasoline sedan called the F3. Two years after that, the F3 would become the top-selling model produced by a domestic Chinese carmaker.

More waves followed when traders abandoned Chinese auto stocks as an EV price wars spread across the whole industry. BYD slumped 11% in Hong Kong in March 2023, while SAIC, China’s biggest carmaker, tumbled 6.7%.

Tesla famously slashed its prices to make their vehicles more affordable. Unfortunately, it failed to outdo BYD in China as the latter has American investment titans’ support. Charlie Munger famously proclaimed having Berkshire Hathaway pump in capital to support BYD is one of his best decisions.

He was quoted at a meeting with Daily Journal Corporation, “I have never helped do anything at Berkshire that was as good as BYD. BYD is so much ahead of Tesla in China. It’s almost ridiculous.”

Munger pointed out that BYD increased the price of some of its more popular models, while Tesla had to offer discounts for its cars. Expiring consumer subsidies for electric vehicles may be pushing car companies to slash prices to retain customers.

Berkshire will likely be OK without Munger, CFRA Research analyst Cathy Seifert said, but there’s no way to replace the role he played. After all, Munger may have been one of the few people in the world willing to tell Buffett he is wrong about something. “The most pronounced impact, I think, is going to be over the next several years as we see Buffett navigate without him,” Seifert said.

Munger grew up in Omaha, Nebraska, about five blocks away from Buffett’s current home, but because Munger is seven years older the two men didn’t meet as children, even though both worked at the grocery store Buffett’s grandfather and uncle ran. When the two men met in 1959 at an Omaha dinner party, Munger was practicing law in Southern California and Buffett was running an investment partnership in Omaha.

 

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Supply Chain Shifts Fuel Foreign Investments Into ASEAN https://www.equipment-news.com/supply-chain-shifts-fuel-foreign-investments-into-asean/ Fri, 17 Nov 2023 01:29:22 +0000 https://www.equipment-news.com/?p=31326 Investment interest in ASEAN is particularly strong in EV components, electronics, green technology, and Vietnam. Foreign investments flowing into the ASEAN region is projected grow by 6% to 8% each year through 2030 as companies rethink their supply chain strategies,…

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Investment interest in ASEAN is particularly strong in EV components, electronics, green technology, and Vietnam.

Foreign investments flowing into the ASEAN region is projected grow by 6% to 8% each year through 2030 as companies rethink their supply chain strategies, according to a note by DBS. Based on the estimated growth rate, the aggregate net foreign direct investments (FDI) into the region could surge to nearly US$400 billion by the end of the decade, economists at DBS said in a note titled “ASEAN-6 Tailwinds from supply chain reconfiguration.”

FDI inflows gathered steam over the past five years, recording a 10% compound annual growth rate between 2018 and 2022, from just a 6% CAGR from 2013 to 2022. A major investment driver is the ongoing shifts in the global supply chains as firms adopting China+1 strategies turn to the region to augment production.

The pandemic-induced supply chain disruptions have also pushed ASEAN countries to ramp up their production capacity. The region’s manufacturing sector was among the top investment destination of FDI in the past three years, more notably in Vietnam.

“Amongst the various sectors, there is room for the electric vehicle (EV) component supply chain and green technologies to expand exponentially in the coming years,” the economists said. They pointed to the untapped opportunity in the sector given the small EV adoption in the region currently. 

Thailand and Indonesia show the greatest potential in this space owing to their large local auto scenes, while Vietnam is already home to major EV player. However, companies operating in the EV market in Vietnam include VinFast, KIA, Hyundai, Audi, Mercedes Benz, Lexus, Toyota, and Porsche, with VinFast being the first Vietnamese company to successfully manufacture electric cars.

That said, having first mover advantage barely did anything for VinFast in the country. The brand has been aggressively fighting incoming rivalsDBS said other countries can also play catch up in the electronics supply chains by shifting their focus to EV components and away from consumer electronics and communication. Foreign investments will be drawn to growing domestic EV adoption across the region, it added.

 

 

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Chinese Electric Vehicle Investments Flood Thailand https://www.equipment-news.com/chinese-electric-vehicle-investments-flood-thailand/ Wed, 12 Jul 2023 10:10:44 +0000 https://www.equipment-news.com/?p=30175 Chinese electric vehicle manufacturers are pouring into Thailand, with investments up to US$1.44 billion in production facilities in Southeast Asia’s biggest automaking hub that has long been dominated by Japanese companies. Japan appears to be set to be dethroned by China. This big…

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Chinese electric vehicle manufacturers are pouring into Thailand, with investments up to US$1.44 billion in production facilities in Southeast Asia’s biggest automaking hub that has long been dominated by Japanese companies. Japan appears to be set to be dethroned by China.


This big wave of investment has been backed by Thailand’s government, which has rolled out incentives and courted Chinese firms, with a target to convert about 30% of the country’s annual vehicle production into EVs by 2030.

Investments Galore

China’s Great Wall Motor made an early punt on Thailand in 2020 when it acquired a factory from General Motors, where it will spend THB22.6 billion (US$647.38 million) turning it into a regional production centre for EV and hybrid cars. The automaker will start producing its popular compact Ora Good Cat EV in Thailand next year, and is also bringing in its subsidiaries MIND Electronics, HYCET and Nobo Auto that make electronics, powertrains and seating.

Rival SAIC Motor, which owns MG Motor and has a partnership with Thai conglomerate Charoen Pokphand Group, launched its first EV in the country in 2019. It is pumping in THB500 million to expand its existing plant for EV parts and battery manufacturing, the company announced in April.

Heavyweight BYD is investing THB17.9 billion to set up a new facility in Thailand that will start producing 150,000 passenger cars per year from 2024, some of which will be exported to Southeast Asia and Europe. China’s Hozon New Energy Automobile is also working with Thailand’s Bangchan General Assembly to locally produce the electric NETA V model starting next year.

More Investments Coming For Thailand

Several deals are also in the pipeline, according to the Thailand Board of Investment (BOI), which has been pursuing Chinese automakers. State-owned Chongqing Changan Automobile, which has partnerships with Ford and Mazda, will invest THB9.8 billion to set up its first right-hand drive EV factory outside China, according to the BOI.

GAC Aion, a subsidiary of state-owned automaker Guangzhou Automobile Group (GAC) is planning to invest more than THB6.4 billion to produce EVs in Thailand, the BOI disclosed. China’s Chery Automobile, which rolled out a self-developed EV in 2009, is “very interested” to invest in Thailand and plans to enter the market early next year, according to the BOI. Chinese automaker Geely is also in the early stages of planning an entry into Thailand, Reuters reported in May, including weighing models for import and local manufacturing.

Chinese EV’s Rising Popularity

The influx of Chinese models appears to be helping to boost the popularity of EVs in Thailand, the second-largest car market in Southeast Asia. In H1 2023, over 31,000 EVs were registered in Thailand, more than triple the number for all of 2022, the BOI cited industry data. The price gap between EVs and combustion engine cars has also narrowed, in part because of government subsidies.

The cheapest variant of Great Wall’s Ora Good Cat – Thailand’s best-selling EV last year – currently costs around THB828,500 , while Hozon’s NETA V costs THB549,000, according to company websites. Toyota’s Corolla Altis is priced at THB894,000 and the Yaris Ativ at THB549,000.

Chinese lithium-ion battery-maker SVOLT Energy Technology Company Ltd. kicked off the construction of its Thailand factory, the company revealed. SVOLT Energy Technology expects to complete construction by the end of the year and estimates the facility will have an annual capacity of 60,000 battery packs, according to a statement. 

The factory will have two production lines, one for making soft-pack battery packs for hybrid vehicles and another for short-blade battery packs used in plug-in hybrids and pure electric-vehicles (EVs), the company added. The surge of Chinese EV manufacturers into Thailand marks a significant shift in the landscape of Southeast Asia’s largest automaking hub.

With investments soaring to a remarkable US$1.44 billion in production facilities, long-held dominance by Japanese companies is being challenged. Japan was formerly the biggest investor for Thailand. The Thai government’s proactive support, through incentives and targeted efforts to attract Chinese firms, underscores their commitment to embrace the electric vehicle revolution.

As the country strives to convert 30% of its annual vehicle production into EVs by 2030, Thailand’s automotive industry is poised for a transformative journey, propelled by the influx of Chinese investments and the collective vision of a greener and sustainable future.

 

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Transportation And Construction In Indonesia And Thailand To Catalyse Press Brakes Takeup https://www.equipment-news.com/transportation-and-construction-to-catalyse-press-brakes-takeup/ Fri, 09 Jun 2023 03:52:55 +0000 https://www.equipment-news.com/?p=29936 Press brakes are widely used for the precision bending of sheet metals, which are subsequently treated and used across several industries. Indonesia’s and Thailand’s transportation and construction will contribute to press brakes’ demand; majorly supplemented by government support. A report by…

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Press brakes are widely used for the precision bending of sheet metals, which are subsequently treated and used across several industries. Indonesia’s and Thailand’s transportation and construction will contribute to press brakes’ demand; majorly supplemented by government support.

A report by Persistence Market Research revealed the global press-brake market size reached US$ 569.1 million at the end of 2021. Sales of press brakes are projected to increase at a CAGR of 6.1% across the 2022-2032 assessment period to reach a market value of US$1.03 billion by the end of 2032.

The report said, “Together, hydraulic press brakes and pneumatic press brakes account for more than 74% share of the global market. Demand for press brake machines is being driven by the rising consumption of sheet metal from various end-use industries such as automobiles; transportation; construction and metal fabrication. Furthermore, increased consumer spending power and rising government spending on infrastructure development will drive the demand for sheet-metal processing equipment.”

“The press-brake machine market is projected to grow in several countries around the world as a result of rapid urbanisation and rising consumer expenditure. In terms of volume, the automotive and electronics sectors are anticipated to lead the demand growth of press brakes over the forecast period,” it added.

Powered By Urbanisation

Hydraulic press brakes are estimated to account for around 52% volume share of the global market. However, demand for servo-electric press brakes is projected to rise at a CAGR of 5.4% to reach a market valuation of US$ 134.2 million by 2032. They come with digital controls along with increased production capacity and reduced energy consumption.

By volume, demand for press brakes is projected to increase at 4.8% CAGR in the first half of the forecast period and 5.3% in the second half. This is because of rising manufacturing and construction activities in several industries such as automotive; metal fabrication; transportation; construction and electronics.

“Sales of hydraulic press brake machines are projected to increase at 6.1% CAGR by volume. These machines employ hydraulic fluids in one or more cylinders to drive the press brake’s ram down onto the component being shaped. Hydraulic press brake controls are more precise than mechanical press brake controls, and can be adjusted to accommodate different bend depths,” the report added.

Notably, the report outlined that the ease of operation, modern design and digital controls, automatic press brake machines accounted for a higher market share of around 43.1% in 2021. However, demand for semi-automatic press brake machines is projected to expand at a volume CAGR of 5.5% through to 2032.

“The South Asia-Pacific press-brake machine market is projected to expand at a volume CAGR of 6.1%, while the East Asia press brake machine market is projected to grow at a value CAGR of 6.0% over the forecast period. The rising volume of air, rail and maritime traffic in the Asia-Pacific region is spurring sufficient investments in transportation infrastructure (such as automobile, aircraft and railway manufacturing) which is expected to further boost the transportation industry,” added the report.

Growth Hotspot 1 — Indonesia

The ASEAN Briefing quoted the Investment Coordinating Board (Indonesian: Badan Koordinasi Penanaman Modal, BKPM) that transportation, and telecommunications received US$4.1 billion in foreign investment in 2022. BKPM is Indonesia’s Non-Ministerial Government Body for formulation of government policies in the field of investment, both domestically and abroad.

Transportation development in Indonesia has been nothing short of bumpy given its weak connectivity between islands — translating to high logistics costs. There are many regions, particularly in the east of the country, where development has lagged and requires investment in public transport and infrastructure.

From 2019 up to 2024, the government is seeking to invest US$430 billion in infrastructure programs with the majority taking place in the transportation sector. The largest project is the Trans-Sumatra highway project, which is expected to span 2,900 km and cost US$33.7 billion. More than 1,000km has already been completed.

For construction — commercial, industrial, infrastructure, and energy sectors are key in Indonesia. Findings from Global Data revealed industrial construction (manufacturing facilities, metal and material production and processing plants) is expected to expand in 2023, before registering an annual average growth of more than 4% from 2024 to 2027, supported by an increase in manufacturing production, coupled with investment in the mining and automotive manufacturing sectors.

Energy construction includes electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure. The energy and utilities sector is expected to grow in 2023 and record an annual average growth of more than 5% from 2024 to 2027, supported by investment in power, oil and gas, and telecommunication projects. Most of these initiatives would receive support from the government.

Growth Hotspot 2 — Thailand

Thailand’s construction market size was US$24.2 billion in 2022. The market is projected to achieve an AAGR of more than 4% during 2024-2027. Growth in the sector will be aided by public and private investments in the development of industrial and infrastructure projects.

Reports from Bangkok Post noted the government aims to accelerate state investment in 2023 to provide a tailwind to propel economic growth momentum. Finance Minister Arkhom Termpittayapaisith expects the economy to expand 3-4% in 2023, with growth driven by the government’s plan to speed up state investment in key infrastructure projects.

According to Fiscal Policy Office (FPO) Director-General Pornchai Thiraveja, state agencies set a combined investment budget of THB664 billion in fiscal 2023, accounting for 20.9% of total state spending. Among the most crucial projects are the Highways Department’s construction of new highways and the Royal Irrigation Department’s development of new water source areas. Projects also include those for the Department of Public Works and Town & Country Planning, such as the construction of embankments along the country’s rivers.

The ministry set a target for state agency budget disbursement in fiscal 2023 of 93% of the total budget, with a minimum of 75% set as the target for disbursement of the investment budget. The country’s 43 state enterprises are projected to invest a total of THB282 billion in their projects in fiscal 2023. According to the ministry’s target, the agencies should disburse at least 95% of the budget.

The State Railway of Thailand set an investment budget of THB49.2 billion this year, while the Electricity Generating Authority of Thailand targets investment of THB31.5 billion. The Mass Rapid Transit Authority of Thailand plans to invest THB14.2 billion, while Airports of Thailand submitted an investment budget of THB12 billion.

The Expressway Authority of Thailand plans to invest THB11.2 billion in the fiscal year. The ministry is working on accelerating the investment of state agencies and state enterprises, said Mr Pornchai. The FPO estimates public investment in 2023 will expand 2.5% year-on-year, in a range of 1.5-3.5%.

He said state investment would stimulate demand for products and services in several related sectors, generating new jobs. State investment in transport systems can save on the cost and time involved in travel, while also creating new linkages between the country’s regions that better distribute economic activities. State investment in key transport infrastructure and financial systems will also help bolster the country’s competitiveness and save on costs for businesses in the long run, he said.

South Asia-Pacific and East Asia Main Drivers 

While the spotlight is on Indonesia and Thailand, Persistence Market Research noted, “The South Asia-Pacific press-brake machine market is projected to expand at a volume CAGR of 6.1%, while the East Asia press brake machine market is projected to grow at a value CAGR of 6.0% over the forecast period. The rising volume of air, rail and maritime traffic in the Asia-Pacific region is spurring sufficient investments in transportation infrastructure (such as automobile, aircraft and railway manufacturing) which is expected to further boost the transportation industry.”

“The United States is the largest contributor to the press-brake machines market and carries steady growth opportunities for sheet-metal processing equipment. China is one of the major contributors to the East Asian market and is projected to expand at a volume CAGR of 5.9% during the forecast period. During the projected period, the Japanese press brake machine market is estimated to account for more than 32% of the East Asian market share,” it concluded.

Lastly, sales of 150 to 300-tonne press brakes are estimated to increase at 6.4% to reach a market valuation of around US$311.6 million by 2032. They are anticipated to augment their market share as they have wider applications in the transportation and electronics sectors.

 

 

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Changing Times Of Healthcare Investment In ASEAN https://www.equipment-news.com/changing-times-of-healthcare-investment-in-asean/ Fri, 14 Apr 2023 02:01:06 +0000 https://www.equipment-news.com/?p=29296 Aditya Agarwal, Principal of Life Sciences and Healthcare from Roland Berger looks at ASEAN’s investment developments in healthcare. The classic rules of road of investing in large brands, pursuing value creation with rigour, developing solutions that payers or patients shall…

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Aditya Agarwal, Principal of Life Sciences and Healthcare from Roland Berger looks at ASEAN’s investment developments in healthcare.

The classic rules of road of investing in large brands, pursuing value creation with rigour, developing solutions that payers or patients shall be willing to pay for shall continue to hold true. However, with these new trends, investment themes and portfolios in SEA will likely be far more cohesive in their value proposition rather being a mosaic of assets serving short term financial objective.

Increased Demand, Focused On Domestic Middle Class

Pre-COVID, ASEAN’s healthcare investment landscape was heavily focused on traditional models like super specialty hospitals and distribution of high-end medical products. These investments largely were on assets focusing on a premium play such as hospitals serving cash rich patients and medical tourists.

With shift in government priorities, maturing universal coverage across markets, post-pandemic hyper-awareness and adoption of digital health tools – the investment landscape and priorities are shifting towards a more value based approach. From our recent conversations and deal support we see the emergence of a few themes: Despite the major decline in patient volumes in outpatient and elective surgeries, financial performance of non-medical tourism super-specialty hospitals was healthy in 2020-2021.

While medical tourism volumes are eventually expected to return, hospitals with a healthy mix of universal coverage patients and focusing on the needs of the middleclass, have become relatively more attractive. Improved universal coverage payment cycles and reimbursement rates have encouraged private hospital groups to increase focus on the middle-of the pyramid.

 

Read on for more —–> https://t.ly/VGUmN

 

 

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Vietnam To Eliminate At Least 50 Percent Of Business Conditions By 2019 https://www.equipment-news.com/vietnam-to-eliminate-at-least-50-percent-of-business-conditions-by-2019-2/ Thu, 06 Dec 2018 02:11:10 +0000 http://www.equipment-news.com/?p=9695 Vietnam's Prime Minister, Nguyen Xuan Phuc, has requested for ministries and government agencies to remove and simplify at least 50 percent of business and investment conditions by 2019.

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VIETNAM: Vietnam’s Prime Minister, Nguyen Xuan Phuc, has requested for ministries and government agencies to remove and simplify at least 50 percent of business and investment conditions by 2019.

This follows the government’s resolution No. 19 which is aimed at improving Vietnam’s business environment and enhancing national competitiveness. To add to this, the Vietnamese government has also recently issued resolution No.139 which acts to approve the action plan on reducing financial expenses for enterprises, meaning that enterprises can now save up to a minimum of 10 percent of financial costs when investing in Vietnam.

According to the Minister Nguyen’s new directive, ministries and ministry-level agencies are required to report to the Prime Minister on a quarterly basis on the remaining number of business conditions and goods subject to specialised control. Clear justifications are also required in the event that there are changes to the number of  business conditions and goods required for specialised inspection. Additionally, proposals on removing business conditions must also be substantial in order to produce new conditions that would be viable for businesses.

Based on Minister Nguyen’s vision, the lessening of business conditions will function as a key for economic growth and efficiency and the successful execution of this vision mandates strong collaboration from government leaders and ministers.  Minister Nguyen has also strictly prohibited government agencies and ministries from establishing new business conditions or abusing specialised inspections.

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Vietnam Experiences Influx Of Japanese Investments https://www.equipment-news.com/vietnam-experiences-influx-of-japanese-investments-2/ Wed, 24 Oct 2018 01:00:48 +0000 http://www.equipment-news.com/?p=7689 Experts have projected that the strengthened bilateral ties between Japan and Vietnam as well as Vietnam’s high economic growth and enhanced business environment will attract an influx of Japanese investments.

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Experts have projected that the strengthened bilateral ties between Japan and Vietnam as well as Vietnam’s high economic growth and enhanced business environment will attract an influx of Japanese investments.

During Vietnamese Prime Minister Nguyen Xuan Phuc’s recent visit to Japan, wherein he met with Japanese companies such as All Nippon Airways Co., Ltd, AEON Co Ltd., Mitsubishi UFJ Financial Group, Mitsui and Mitsubishi, sentiments were strong on the part of the Japanese investors regarding their interest in investing in Vietnam. With Japanese companies stating that they have plans to invest billions of US dollars in Vietnam, across a diversity of sectors.

Seiji Imai, Head of Mizuho Bank for Asia and Oceania has also commented that Vietnam is the first destination for overseas investments in Japan and the country could be experiencing a new wave of investments from small and medium Japanese enterprises with advanced technologies that are looking to enter the domestic market. Furthermore, he believes that the country will experience two waves of investments from Japanese firms with the first wave being attributed to large manufacturing companies and the second to follow shortly thereafter.

Umeda Kunio, the Japanese Ambassador to Vietnam has told the local media that many Japanese companies are very interested in conducting business in Vietnam in areas such as urban development. This can be witnessed with projects in the northern part of Hanoi as in the case of the the Binh Duong project, subway route No.1 in Ho Chi Minh City, and subway routes 1 and 2 in Hanoi.

Currently, Vietnam ranks as the third country in a recent survey on the overseas deployment of Japanese manufacturing companies by the Japan Bank for International Co-operation, and second in the same survey if only small and medium companies are taken into consideration as observed by Mr Kunio.

In a survey conducted last year by the Japan External Trade Organization (JETRO), up to 70 percent of Japanese companies that are currently operating in Vietnam have expressed an interest to expand operations within the country, which is a relatively high percentage compared to other countries in ASEAN. Additionally in a Japanese survey questioning participants about countries and territories for potential expansion agendas, the number of companies choosing Vietnam has been observed to increase over three consecutive years.

According to Mr Kunio, the attractiveness of Vietnam as an investment destination can be attributed to its market potential, relatively low cost yet diligent workforce and political stability. Based on numerous economic forecasts, Vietnam’s economic growth is projected to remain high in 2018, and Japanese investment into Vietnam this year is also expected to be corresponding high. A trend that is also backed by reports from the Foreign Investment Agency.

As of 20 September this year, Japan had 3,900 valid investment projects that are worth a total registered capital of US$55.78 billion in Vietnam. Similarly, up till September of this year, Japan has been recorded as Vietnam’s largest foreign investor, with total investment capital of US$7 billion.

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South Korea Boosts R&D Investment For Industry 4.0 Technologies https://www.equipment-news.com/south-korea-boosts-rd-investment-industry-4-0-technologies/ Wed, 11 Jul 2018 16:00:06 +0000 http://www.equipment-news.com/?p=6528 South Korea: South Korea is set to ramp up its investment in research and development (R&D) for technologies that can facilitate acceleration of the fourth industrial revolution—like self-driven car and Internet of Things (IoT) platforms. The Ministry of Trade, Industry…

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South Korea: South Korea is set to ramp up its investment in research and development (R&D) for technologies that can facilitate acceleration of the fourth industrial revolution—like self-driven car and Internet of Things (IoT) platforms.

The Ministry of Trade, Industry and Energy had announced an increased in R&D spending on five burgeoning industries—autonomous car, biohealth, IoT-fitted electronics, renewable energy, and semiconductor and display—to 50 percent of the nation’s total R&D budget by 2022 from the current 30 percent.

This year, the government has allocated approximately 900 billion won (about US$844 million) to the above five sectors out of its total 3.16 trillion won R&D budget.

Correspondingly, the ministry is seeking to cultivate development of original technologies, related core technologies, and the growth of new industries using these new technologies via efficient commercialisation.

Private firms will also be supported in adopting technologies developed by external talents. Along with this revision, companies are required to foot only 30 percent of the total cost in cash while acquiring technologies from external sources—with the rest in non-cash asset. Currently, businesses have to pay about 50 percent of such costs in cash.

A new review system will also be implemented by the ministry—run by a group of industry professionals—to assess the feasibility of innovative technologies and development proposals.

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