The industrial sector in Thailand, Cambodia, Laos, Myanmar and Vietnam contributed 32.3 per cent of the region’s GDP in 2017 and provided an estimated 20 per cent of the employment, said the IFC, the private-sector arm of the World Bank.

It said that industrial zones provide a good platform for supporting interventions for green buildings, clean energy, energy efficiency and climate-smart water and waste infrastructure. The proximity of multiple co-located tenants also provides opportunities for green energy, innovative wastewater treatment and other “circular economy” projects that effectively use valuable resources.

Implementation of such sustainability projects can help zones follow an environmentally less destructive growth path and transition towards eco-efficiency consistent with national government priorities.

“We welcome this partnership, which is timely and will help us strengthen our market position as a leading developer of sustainable smart and eco cities and townships that promote green growth,” said Lena Ng, chief investment officer of Amata Corporation Plc, after the company signed the enabling agreement with the IFC. “Further, IFC will bring in a wealth of knowledge about global best practices as well as technical and industry expertise to this partnership. This will enable us to create sustainable, eco-efficient smart cities and townships in Thailand and the Mekong region.”

As part of the memorandum of understanding, which was signed yesterday, IFC and Amata will identify projects for co-investment opportunities and encourage the use of sustainable energy, water, and waste solutions for buildings and infrastructure in existing and new smart cities, industrial zones and townships. They will further raise awareness on green growth and promote sustainable design practices in selected zones in Thailand and the Mekong region.

“As a sustainability pioneer, IFC has extensive experience in developing eco-efficient zones, including in the green buildings space. We are creating markets and supporting climate-smart investments by promoting new regulations and standards, business models and financing mechanisms,” said Vikram Kumar, IFC country manager for Myanmar and Thailand.

“Collaborative partnerships such as this can help decouple economic from environmental growth while promoting a sustainable private sector,” he said. “Together with Amata, we expect to further build capacity for eco-efficient smart cities zones, green buildings, and climate-smart infrastructure by developing bankable investment projects.” The IFC supports greater private-sector investment in green buildings and sustainable development. It has a green building portfolio of more than $4.5 billion (Bt143 billion), which includes its own direct investments and mobilised financing. IFC aims to achieve green building market transformation in a growing number of countries through its Excellence in Design for Greater Efficiencies (EDGE) certification system and |the Green Urban Development (GUD) tool.

The certification was assessed by its internal auditor and independent auditor, according to its press release.

The 13 units included Chicken Manufacturing Plants, Food Processing Plants, Processed Foods, Shrimp Hatcheries, Roi Phet Closed Operation Shrimp Farm,  Wild Shrimp Research Centre, Breeding Duck, Broiler Chicken and Kasetphand Industry Company.

The certification has dented CP Foods’ operating efficiency toward sustainable development goal covering both in Thailand and its overseas investment.

In this occasion, CP Foods’ executives Virachai Ratanabanchuen, senior advisor and Chairman of SHE&EN committee, DVM.

Sujint Thammasart, Chief Operating Officer – Aquaculture Business, jointly congratulated those who receipted the certifications.

“Our first quarter performance was a positive start to the year for Thai Union. Thanks to continued operational efficiencies and continued margin recovery, we are starting to see the flow-on benefits, with a recovery in our overall performance and normalising of our operations,” said Thiraphong Chansiri, CEO of Thai Union Group.

Gross profit increased 29.3 per cent from a year earlier to Bt4.38 billion, while the gross profit margin improved to 14.9 per cent from 11.6 per cent in the first quarter last year. Stable raw material prices along with stronger performances from Thai Union’s ambient seafood and PetCare businesses contributed to the recovery.

Operating profit increased 10-fold year on year to Bt1.02 billion with its selling, general and administration (SG&A) ratio at 11.4 per cent, compared to 11.2 per cent in the first quarter of 2018.

Consolidated sales were Bt29.36 billion, up 0.1 per cent from a year earlier.

However, excluding the impact of foreign exchange, organic growth in sales value improved 2.3 per cent year on year, driven largely by sales growth in the frozen and PetCare businesses.

The sales contribution from Thai Union’s frozen and chilled seafood business rose to Bt11.52 billion, up 3.4 per cent year on year, due to improved frozen seafood sales in the US.

In addition, PetCare and value-added product sales grew 7.5 per cent year over year to Bt4.38 billion on higher volumes.

Sales contributions from Thai Union’s brands remained stable at 42 per cent in the first quarter, with the balance coming from the company’s private label and food services sales.

The US remained the largest market with 40.4 per cent of total sales in the first quarter this year, followed by Europe at 27.9 per cent, the Thai domestic market at 13.1 per cent, Japan at 4.7 per cent and other markets at 13.9 per cent.

Another strong cash-flow performance from operations helped to continue the de-leveraging of the net debt-to-equity ratio to 1.35 from above 1.4 a year earlier.

During the quarter, growth was also recorded at Thai Union Ingredients after the first 100 tonnes of refined tuna oil were shipped to customers for the productionof infant formula.

The sum will be taken from KVision’s current startup investment budget of $245 million. The rest of the budget will go to funding Thai and foreign startups elsewhere in the Asean region.

In its business plan to target startups in Vietnam, a fast-growing market in the Asean region, KVision has joined hands with the Vietnamese government to support Thai startups in Vietnam.

In cementing their commitment to investing in the Vietnamese startup ecosystem, KVision signed a cooperation agreement with the Vietnamese government’s Business Startup Support Centre (BSSC).

“BSSC’s profound understanding of their home market will help Thai startups thrive in the Vietnamese business ecosystem,” Pattarapong Kanhasuwan, chairman of KVision, told a press conference yesterday.

Investment in startups in Vietnam reached $889 million in 2018, tripling the figure in 2017, Pattarapong said.

For this reason, he argued that the Vietnamese market is like a “Greenfield”, offering ample business opportunities for new ventures.

“In investing in Thai startups that will enter the Vietnamese market, we are not looking for investment returns. Instead, we are investing in the long-term for future business partners, as we plan to eventually become a regional bank in Asean,” Pattarapong said.

KVision will particularly target fintech and e-commerce startups.

Those target groups are in-line with the market trend of Vietnam. According to Hang Nyugen, deputy director of BSSC, “The key startup trends in Vietnam are currently led by fintech firms, followed by e-commerce, education tech and travel tech.”

“From our collaboration with KVision, we aim to boost the number of unicorns – startup companies valued at over $1 billion – in the country. We expect 20 Thai startups to enter the Vietnamese market in the upcoming year,” she added.

“When investing in the Vietnamese market, Thai firm should first become familiar with Vietnam’s socio-political background,” Nyugen continued. “Vietnam is a one-party country supporting a free market.”

Hence, when startups enter the Vietnamese market, they should be ready to collaborate with the Vietnamese government and receive support from the public sector, especially if they are firms operating in an entirely new market segment or business model, she explained.