Malaysia’s United More SDN.Bhd was also licensed on January 7 to build a $21 million plant to make TV screen frames and plastic covers in the Saigon Hi-Tech Park. The plant is set to begin production in the second quarter, with an initial capacity of four million units per year.

Investments by Thai businesses have particularly been busy, according to the local press.

The Government’s online newspaper, baochinhphu.vn, reported that Thai beer firm Singha Asia is expected to complete its $1.1 billion purchase of Masan Group stakes in January.

With this deal, Singha will hold a 25 per cent stake in Masan Consumer Holdings and 33.3 per cent in Masan Brewery – units that own food and drink brand names such as Chinsu, Omachi, Vinacafe and Su Tu Trang (White Lion) Beer.

Last year, Power Buy, a subsidiary of Thai retail giant Central Group, acquired a 49 per cent stake in NKT, a technology development firm owning the Nguyen Kim electronic store chain in Vietnam.

Also in 2015, Thai Beverage offered to buy about 40 per cent of HCM City-based Saigon Beer Alcohol Beverage JSC, better known as Sabeco, according to financial news website ndh.vn.

The FIA noted to ndh.vn that, Thai firms had recently expressed concerns about many investors moving from their country to Vietnam, Malaysia and Singapore – the Southeast Asian nations taking part in the Trans-Pacific Partnership (TTP).

While the TTP is set to take effect in 2018, businesses in the Federation of Thai Industries were also worried that their goods would face stiffer competition from those coming from the countries joining the pact.

Last year, South Korea’s LG Electronics, the world’s second largest TV maker, decided to move its TV production facilities from Thailand to Vietnam to save costs and increase capacity.

The FIA said the South Korean government encouraged companies to invest in Vietnam during 2015, considering this a strategic investment destination.

The encouragement came in the context that most of South Korea’s leading businesses, including Samsung, Canon, POSCO, Hyundai and KEPCO, had already invested in Vietnam.

“There is a trend in capital flows,” said Can Van Luc, senior management advisor at the Bank for Investment and Development of Vietnam (BIDV) and director of the BIDV Training School.

Luc told ndh.vn that Vietnam was expected to receive more capital moving not only from Thailand but also from China this year.

During 2015, about $548 billion was poured into emerging economies, which are widely known as economies with low to middle per capita income, while up to $1.1 trillion was taken out of them.

This meant that a net $540 billion was withdrawn in 2015, the highest level in the last 27 years.

China’s economic slowdown and the US Federal Reserve increasing interest rates, which are currently near zero per cent, are reportedly driving investor withdrawals from the emerging markets.

To Trung Thanh, who is an associate professor at the National Economics University, pointed out that Vietnam’s accelerating integration progress would be an advantage for the country to attract more foreign investment.

Last year, the country concluded negotiations for four free trade agreements, including those with the Eurasian Economic Union, the European Union, South Korea and the Trans-Pacific Partnership. It also became a member of the ASEAN Economic Community, which was established last December 31.

Official sources said the country is now deeply integrated into 55 global economies, and it has slashed more than 90 per cent of its tariffs to zero per cent.

A recent Bloomberg report on growth prospects of 93 global economies forecast that Vietnam will grow by 6.6 per cent in 2016, the second fastest after India with 7.4 per cent.

Vietnam’s growth was also expected to top Southeast Asia, higher than the anticipated 5.2 per cent for Indonesia, 4.5 per cent for Malaysia, 3.2 per cent for Thailand and 2.3 per cent for Singapore.

Economists said Vietnam should further improve its business environment and enhance labour productivity to take advantage of current capital flow tendencies, especially when foreign direct investments in the country reached a record high of roughly $23 billion last year.

Ryu was joined by representatives from investor SoftBank Ventures Korea and start-ups VCNC and Swizzle at a roundtable discussion hosted by The Korea Herald.

Korean start-ups often struggle to break out of the local market, but they have advantages over start-ups in other Asian powers like China and Japan, which can be even more insulated on their large home turf, they agreed. Korean start-ups have a great environment, such as the high-tech infrastructure and trend-setting e-commerce and mobile markets, to build a product to be globally competitive, said Edward Lee, who heads global strategy for VCNC, maker of couples messaging app Between.

“Starting from Korea, there are a lot of advantages, especially if you are doing mobile services,” Lee said. “Commerce is so fast, everything is so fast in Korea. (Trends from Korea) are going to catch up in the near future, five or 10 years. So if you get a model, if you have a global mindset, I think it’s a good test bed to start a global service.”

The region’s most alluring market is Indonesia, an archipelago of 250 million people who are rapidly embracing mobile services. Local tech giant Kakao has jumped on board by acquiring Path, a U.S.-made $66 million social networking app with 4 million users in Indonesia, in its buildup to globalize.

This environment has led to mobile advertisements in the country being priced twice as high as in Korea, according to Alex Kim, a director at SoftBank Ventures Korea. Digital ad spending there is projected to grow some 70 percent this year.

But that doesn’t necessarily translate into customers spending big, Lee of VCNC claims.

He believes a lot of the activity in Indonesia comes from hype from Western tech companies likeFacebook or Google that have struggled to crack into China and sought a viable alternative. The high ad prices were driven by heated supply-side competition rather than customer demand, he said.

That is why Between cannot afford to compete in Indonesia, as it already covers the difficult market of Japan, he added. “If we cover Indonesia, we are in another competitive market where we can’t find us in the near future making money.”

Payments and logistics, along with tricky taxation and tariff processes, make Indonesia a labyrinth for foreign companies, especially in e-commerce. It may take 11-12 days to deliver to the thousands of far-flung islands, Ryu of Venture Port added.

But these infrastructure hurdles leave room for small start-ups to introduce creative solutions, both in Indonesia’s still-nascent $1 billion online retail market and beyond. “From a small start-up’s perspective, there is much room to innovate in the e-commerce market in Indonesia and Southeast Asia,” said Kim of SoftBank Ventures Korea, which funded the fast-growing Indonesian online marketplace Tokopedia in 2013. “In most developed and emerging market economies, there are already big e-commerce players … but small start-ups keep challenging that market.”

Meanwhile, Taiwan has long been relevant in the region with strong infrastructure and globally open users with spending power. But while Taiwan was once the biggest magnet for trends from Japan, the game has shifted as Korea’s pop culture has overtaken Hello Kitty and manga in popularity. Between has discovered an even fresher market in Thailand, with sturdy infrastructure compared to its neighbors, significant economic growth and a growing middle class.

“They are very trendy. They accept things very quickly just like Taiwan,” Lee said, noting that successful trends that spread from Japan to Taiwan then make their way to Thailand. Between has experienced the same phenomenon. “Right now competitiveness is not as high as in Indonesia. It means it could be better, fruitful market for us to invest, and just to capture the market.”

Still, the growth potential in the region has its limits. Nick Szabo, chief operating officer of Swizzle, says the video start-up can’t depend on the Southeast Asian market for revenue.

“We are going to Southeast Asia more to build user base, because a lot of other people are trying to get Southeast Asians viewers for video. But our target market is usually outside Southeast Asia, for people who can pay. There is just no money for entertainment stuff. There is not a lot of disposable income.”

Because of the lower labor costs, foreign companies often underestimate the amount of investment and preparation they need to enter the region. Kim of SoftBank’s Korea arm advises start-ups to brace themselves with solid staff and meaningful funding.

Instead of blanketing its service across the region, Between decided to zero in on key markets Singapore, Malaysia, Thailand and Taiwan, and localize its product and full-fledged marketing backed by local boots on the ground.

“If you want a bite, you shouldn’t nibble,” Lee said. “Now we only localize in the countries that we have local translation office in, where they are capable of doing the feedback and adjusting it to the market we aim for. Do everything great, if you are going to commit, then really do it. That’s what we learned.”

Dr Bernard Ong, Ipos’s director of the international engagement department, told The Straits Times: “What it means for a firm is that if they have business interests in Singapore and Cambodia, the whole process is cut short, and you save a lot of time and costs. You don’t have to pay translation fees and all those things.”

This could also encourage investors to invest in both countries, as patent grants can eventually lead to products being commercialised in a quicker manner, he added.

Cambodia is also on its way to be part of the Patent Cooperation Treaty, so Ipos said “the steady continuity in intellectual property (IP) cooperation between both countries is testament to the progressive integration and development of IP within Asean”.

Singapore and Cambodia had signed a memorandum of understanding last January to cooperate on IP protection and help develop the region’s IP ecosystem.

Ipos chief executive Daren Tang said: “We will continue to share and develop business-friendly and efficient IP processes for creators and entrepreneurs to grow their businesses and gain a competitive edge in Asean.”

“Do people have enough income to buy a car at [at 18]? Do they pay income tax? Now, the government allows people to import cars if they pay income tax. However, the government should increase the minimum age to 25 years old. There are many car showrooms and sales centres in Yangon, and [younger people] can buy cars from there. They don’t have to import cars.”

He said Myanmar has imported around 600,000 cars over the last five years.

“This causes traffic congestion and makes it difficult to find space to park cars in big cities. It is sad to see that there were quarrels, including cases of murder over parking spots in Yangon and Mandalay. The government needs to avoid that kind of problem,” he said.

In contrast, the agriculture and forestry sector has declined significantly in the past decade as a result of the country pursuing a market economy.

Deputy Minister of Planning and Investment Khamchan Vongsaenboun yesterday presented a report on the role of her ministry in developing the market economy in line with socialist principles, at the 10th party congress.

She highlighted the achievements made in developing the economy through market mechanisms, allowing all economic sectors to be involved in the development process.

The involvement of all economic sectors has contributed to the continued growth of the Lao economy and changes in the country’s economic makeup.

According to the government report, in the fiscal year 1999-2000 the agriculture and forestry sector accounted for 46.2 per cent of the country’s economy but by 2014-15 this had fallen to 23.7 per cent. It is expected to decline to 19 per cent in the next five years.

Meanwhile industry’s share of the economic pie had risen from 17.9 per cent to 29.1 per cent by 2014-15 and is expected to increase to 32 per cent by 2020.

The construction of hydropower projects in particular is paving the way for Laos to move closer to industrialisation and modernisation.

The value of the service sector also increased from 35.9 per cent to 47.2 per cent in 2014-15.

In 2005, the number of workers in the agriculture and forestry sector accounted for 78.5 per cent of the country’s total labour force but was expected to have fallen to 65 per cent by the end of 2015.

Labour in the industrial sector increased from 4.8 per cent in 2005 to 11.5 per cent of the total in 2015 while the services sector rose from 16.7 per cent in 2005 to 23.4 per cent in 2015.

Over the past five years, despite the global economic recession, the economy has continued to grow at an average of 7.9 per cent annually and the number of poor families has declined significantly.

The value of Gross Domestic Product (GDP) has reached 102,320 billion kip (US$12.8 billion) with GDP per capita climbing to 15.8 million kip ($1,970).

The government also mobilised total funding of 236,687 billion kip towards national development, which is considered higher than anticipated.

The government also focused on strengthening SMEs so that they are capable of competing within the Asean Economic Community.

It’s projected that the economy will continue to grow at an average of 7.5 per cent annually over the next five years with GDP per capita projected to reach US$3,190.

Economic growth will be driven by several mega-projects such as the Laos-China railway, Hongsa power plant, Xayaboury hydropower project and other investment projects.

“We need to find a way to preserve the environment while fundamentally improving the infrastructure, and share the dividends released by the projects with Myanmar and the local people,” said Yuan, adding that the implementation of the projects will be based on three concepts, namely, social development, green development and common prosperity.

For social development, the consortium will analyze the projects’ social impact, provide training opportunities to local people as well as anti-disaster and emergency rescue service, and set up 50 clinics and 50 schools in Rakhine State.

It also plans to launch a development fund to support the various needs of the local government and residents, such as transportation, water supply, power supply, children’s education, healthcare and dispensary services, agriculture, poultry farming, aquaculture, fisheries and so on.

“By all these means, we want Myanmar and the whole world to know that CITIC is a reliable and responsible partner,” Yuan added.

He also said the consortium led by CITIC will take care of ecological needs and improve the natural environment.

Documents from the company indicate that the projects will be guided by green design concepts and clean energy technology.

Before launching the projects, he said, CITIC will hire globally well-known companies to conduct environmental impact assessment.

“We want the local people to live in a more orderly, beautiful, convenient and comfortable Kyaukphyu,” said the vice president.

Yuan also said the consortium will involve locals in the construction and management of the projects.

“We will increase local supply and local subcontracting, launch Small and Medium Enterprises (SME) development programs, promote Made in Myanmar products … and create no less than 2,000 job opportunities for local people each year,” said Yuan.

The six-member consortium will form joint ventures with local enterprises to build and operate the projects under the framework of the Myanmar Special Economic Zone law.

Hailing Myanmar as the last untapped virgin land in Asia, Yuan said he is optimistic about the projects and Myanmar’s future.

“I hope the incumbent and incoming Myanmar governments can adhere to the path of democracy, reform and opening-up, and inject more impetus into its economic development,” said Yuan.

The plans were in line with the government’s vision to promote the eastern part of the country as a popular tourist destination, said Archipelago International regional marketing and communications manager, Nita Janita Ekaniana.

The 40 new hotels, which include newly signed and upcoming properties ranging from budget to luxury segments, will be established in Makassar in South Sulawesi, Lombok in West Nusa Tenggara and Jayapura in West Papua, among other locations. Up to 20 new hotels are being readied for launch this year, said Nita.

In addition to eastern Indonesia, Archipelago also aims to expand its business in secondary cities such as Subang and Karawang, both in West Java, to provide better accommodation options for workers and business players.

Nita said non-star hotels, known as melati (jasmine) hotels, still dominated the market in secondary cities although she considered they lacked quality and adequate service.

Meanwhile, Archipelago International CEO John Flood said there was still room to maximize market growth as the prospects of the hotel industry in Indonesia would remain positive this year.

As branded establishments only make up 1 per cent of the country’s hotel industry, demand for accommodation providing good facilities in regional Indonesia will continue to increase in accordance with the rising number of visitors to the country.

Hence, in the next five years, Archipelago hoped to establish some 250 hotels in Indonesia as it expected more and more business expansion, said Flood.

Prime Minister Thongsing Thammavong presented a draft of the 15-year Vision (2016-2030) and 10-year Strategy (2016-2025) on socio-economic development to the 10th Congress of the Lao People’s Revolutionary Party, which opened yesterday in Vientiane.

Countries with GNI per capita of US$6,500-US$20,100 are categorised as upper middle income nations, according to international assessments.

Prime Minister Thongsing, who is also a Politburo member, told the five-day congress that Laos will strive to graduate from least developed country status by 2020 and then strive for the next level on the development rung. Laos is pursuing development under the theme ‘Striving to graduate from least developed country status by 2020 towards becoming a developing upper middle income country alongside green and sustainable development by 2030.”

By 2025, Laos aims to enjoy firm political stability while continuing to nurture and strengthen the people’s democratic regime under the leadership of the Party.

Over the next 10 years until 2025, the government will strive to achieve annual gross domestic product (GDP) growth of at least 7.5 percent. Average GDP per capita is set to increase to more than twice the 2015 figure.

In addition, the government will strive to reduce the poverty rate to not more than 5 percent of the entire population by 2025. The poverty rate is set to fall to less than 10 percent of the total population by 2020.

Prime Minister Thongsing told the congress that Laos will also aim to raise average life expectancy to 73 years by 2025 through improved healthcare services.

The government will work to ensure that all school-aged children complete lower secondary school while paying more attention to the development of human resources to meet the growing need for a skilled workforce.

Laos will also continue to protect its forests with the aim of achieving forest cover over at least 70 per cent of the country.

In addition, the government will work to ensure that Laos has many international friends and can integrate economically with the region and the world.