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Updated: 30 August 2012
| New issue published on Monday weekly (since 18 June 2012) (in PDF) |
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Where important business, financial and economic events, matters and
thoughts are gathered and presented in a time-saving fashion.
thoughts are gathered and presented in a time-saving fashion.
Inside the Lao Business & Finance Now:
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Intergro's weekly business letter for people who never stop upgrading!
Brief UPDATEweekly starting 18 June 2012
Economist's VIEW
| Previous issues Free download |
A smarter corporate income tax policy for Laos is one that implements a permanently low tax rate.
Instituting a substantially lower corporate income tax rate than what is currently in place will attract
more foreign investments in sectors crucial for growth in the diversified, non-natural-resource-based
SMEs particularly in agro-processing, manufacturing and knowledge-based SMEs. These are the
missing links in the Lao economy that are urgently needed right now—to stimulate a diversified
growth, improve the agricultural sector, create long term jobs and distribute incomes more widely in
society.
Why, how, and will lower tax lead to government revenue loss?
To read the entire 2-page commentary, download the LBFNow March 2012 issue
This commentary is abstracted from an article titled “Laos to benefit more from lower tax.” Read the
entire (8-page) article at http://www.intergro-inc.com/articles.html.
Instituting a substantially lower corporate income tax rate than what is currently in place will attract
more foreign investments in sectors crucial for growth in the diversified, non-natural-resource-based
SMEs particularly in agro-processing, manufacturing and knowledge-based SMEs. These are the
missing links in the Lao economy that are urgently needed right now—to stimulate a diversified
growth, improve the agricultural sector, create long term jobs and distribute incomes more widely in
society.
Why, how, and will lower tax lead to government revenue loss?
To read the entire 2-page commentary, download the LBFNow March 2012 issue
This commentary is abstracted from an article titled “Laos to benefit more from lower tax.” Read the
entire (8-page) article at http://www.intergro-inc.com/articles.html.
Myanmar's 2010 election, which formally marks the beginning of the military-run SE Asian country's
political transformation, did not at all impress the world. However, this has all changed, particularly
since April this year. Myanmar has finally impressed the world, in a surprising way, after its elected
President Thein Sein, who was an army general, freed political prisoners, made peace with ethnic
minority groups, eased media restrictions, and persuaded main opposition figure Aung San Suu Kyi to
participate in the parliament.
Myanmar, a country of 50 million people, is rich with oil, natural gas, timber, gemstones, and minerals.
Being a next door neighbor of Asian two giants China and India that are experiencing rapid economic
growth is not a bad thing. Not only that Myanmar can benefit from the two growing giants in terms of
investment sources and markets, the fact that Myanmar is surrounded by these giants, one in the
north, another in the West (and the dynamic Thailand in the east), is itself a factor of attraction for
foreign direct investment (FDI) from other parts of the world.
Key donor countries have eased or suspended trade restrictions and considering resuming aids to
the country. In late April, the 27-nation bloc European Union has voted to temporarily suspend (for
one year) a wide range of trade, economic and individual sanctions against Myanmar, but leaving
arms embargo in place. Australia said it would lift financial and travel restrictions on 260 people and
normalize trade ties. The United States is considering restoring a full diplomatic relation and resuming
aids to the country.
Japan will forgive Myanmar 300 billion yen ($US3.7 billion) of the country’s previous development
loans and resume development aid to support the country’s democratic and economic reforms. This
was announced after a meeting between Japan’s PM Mr. Yoshihiko Noda and Myanmar’s President
Thein Sein following a summit with leaders of Mekong countries—Cambodia, Laos, Myanmar,
Thailand and Vietnam. Myanmar’s total development loans with Japan stood at 500 billion yen. During
its years of isolation, Japan, unlike its Western allies, maintained trade ties and dialogue with
Myanmar, fearing that the then-ruling junta could push the country closer to China.
Myanmar also owes the World Bank $393 million and about $500 million debts in arrears with the
Asian Development Bank, according to the World Bank's East Asia and Pacific region Vice President
Pamela Cox. The Bank stopped lending to the country in 1987 and closed its office there after the
country stopped making loan payments. However, the World Bank has announced in late April that it
will re-open its office in Myanmar in June this year.
Myanmar's recent political transformation, which has encouraged major world powers to ease or
suspend trade sanctions, has opened the country for trade and FDIs, turning it towards becoming an
emerging frontier market. In fact, the resource-rich Myanmar has recently drawn considerable interest
of both regional and global investors. Although there is a sign of broad consensus among Myanmar's
political elites about the need for continued structural reforms, mitigating a political risk, the weight of
political stability variable will still remain high in the investment equation for several years for many
types of businesses. Nonetheless, the resource-based sectors, infrastructure and tourism will be
among the first to attract FDIs.
political transformation, did not at all impress the world. However, this has all changed, particularly
since April this year. Myanmar has finally impressed the world, in a surprising way, after its elected
President Thein Sein, who was an army general, freed political prisoners, made peace with ethnic
minority groups, eased media restrictions, and persuaded main opposition figure Aung San Suu Kyi to
participate in the parliament.
Myanmar, a country of 50 million people, is rich with oil, natural gas, timber, gemstones, and minerals.
Being a next door neighbor of Asian two giants China and India that are experiencing rapid economic
growth is not a bad thing. Not only that Myanmar can benefit from the two growing giants in terms of
investment sources and markets, the fact that Myanmar is surrounded by these giants, one in the
north, another in the West (and the dynamic Thailand in the east), is itself a factor of attraction for
foreign direct investment (FDI) from other parts of the world.
Key donor countries have eased or suspended trade restrictions and considering resuming aids to
the country. In late April, the 27-nation bloc European Union has voted to temporarily suspend (for
one year) a wide range of trade, economic and individual sanctions against Myanmar, but leaving
arms embargo in place. Australia said it would lift financial and travel restrictions on 260 people and
normalize trade ties. The United States is considering restoring a full diplomatic relation and resuming
aids to the country.
Japan will forgive Myanmar 300 billion yen ($US3.7 billion) of the country’s previous development
loans and resume development aid to support the country’s democratic and economic reforms. This
was announced after a meeting between Japan’s PM Mr. Yoshihiko Noda and Myanmar’s President
Thein Sein following a summit with leaders of Mekong countries—Cambodia, Laos, Myanmar,
Thailand and Vietnam. Myanmar’s total development loans with Japan stood at 500 billion yen. During
its years of isolation, Japan, unlike its Western allies, maintained trade ties and dialogue with
Myanmar, fearing that the then-ruling junta could push the country closer to China.
Myanmar also owes the World Bank $393 million and about $500 million debts in arrears with the
Asian Development Bank, according to the World Bank's East Asia and Pacific region Vice President
Pamela Cox. The Bank stopped lending to the country in 1987 and closed its office there after the
country stopped making loan payments. However, the World Bank has announced in late April that it
will re-open its office in Myanmar in June this year.
Myanmar's recent political transformation, which has encouraged major world powers to ease or
suspend trade sanctions, has opened the country for trade and FDIs, turning it towards becoming an
emerging frontier market. In fact, the resource-rich Myanmar has recently drawn considerable interest
of both regional and global investors. Although there is a sign of broad consensus among Myanmar's
political elites about the need for continued structural reforms, mitigating a political risk, the weight of
political stability variable will still remain high in the investment equation for several years for many
types of businesses. Nonetheless, the resource-based sectors, infrastructure and tourism will be
among the first to attract FDIs.
| Low Tax A smarter tax policy for Laos by Mana Southichack |
| Myanmar An emerging frontier market? by Mana Southichack |
Briefs in 27 August 2012 issue
Briefs in 20 August 2012 issue
Briefs in 6 August 2012 issue
Briefs in 30 July 2012 issue
- Appreciating kip: Winners and losers
- Lao financial infrastructure grows and
access to financial services improves - Government orders 24 entertainment
venues in Vang Vieng to shutdown - Vietnam National Cement Corp –Bim Son
Cement wants to open a cement factory in
Laos - BCEL expects a net profit of about $23
million this year - A new shopping mall opens for business in
Vientiane
Briefs in 20 August 2012 issue
- Stronger kip is a double-edged sword
- Inflation subsides
- A $2 million battery factory in Savannakhet
expects to complete later this year - Laos-Thailand to expand bus services
between the two countries - Asean becoming world's 6th largest
automobile market
Briefs in 6 August 2012 issue
- Government urged to revise profits tax to
boost foreign investment - EDL Gen raises $200 million in second
share offer - More than $329 million of loans released by
commercial banks in south - Laos-South Korea joint venture to produce
high-voltage poles - Tourism on the rise in Attapeu
- Thai SMEs told to gear up for fight as AEC
gets near - CIMB Thai plans for operations in Laos
Briefs in 30 July 2012 issue
- Laos to become WTO member this year
- Phongsavanh Bank reports rapid growth
over its five years of establishment - More electricity from small-scale dams by
2014 coming from Paksong - Boten international transit warehouse to be
ready for service early in 2013 - Cambodia wants more Thai investment
- Thai rice losing on world market
Tables and figures
- Commodity prices
internationally traded - Lao domestic consumer & other
prices - SE Asia and Other Major Stocks
- Exchange rates
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