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Tuesday, 22 September 2015

Oil and Gas Revenue Management Options for Cambodia

At a moderate rate of production, Cambodia’s oil and gas revenue could provide revenues of around $500 million a year for 20-25 years, and is estimated to peak in revenue at between $1.7 billion and $6 billion per annum for a small number of years. However, a recent drop in the value of oil and gas, which is forecast to continue into the foreseeable future, largely due to a number of large gas projects commencing production across the world, may have reduced the interest and profitability in developing Cambodia’s oil and gas reserves. This may have played a role in Chevron’s recent sale of their production rights, at a loss of approximately $100 million. Licenses for exploration and production of Cambodia’s oil and gas wealth are divided into blocks, as shown in figure 1, below. Block A is so far the most advanced in terms of exploration, while the sovereignty of a number of blocks, referred to as Overlapping Claims Areas (OCAs) is currently under dispute between Cambodia and Thailand(download).

The Impacts of Dam Construction on Cambodia’s Environmental and Socio-Economic Development

Approximately 65% of the Cambodian population still lacks access to reliable electricity. They are more likely to be poor and have poorer health status resulting from this situation. In addition, electricity is commonly cited as a major barrier for business and industrial development. To sustain economic growth, reduce poverty and increase the welfare of the people, and reduce air pollution from oil, coal and traditional energy, Cambodia requires more efficient and clean energy generated from hydropower plants. However, the construction of hydropower plants can result in, serious social and environmental consequences in the long run. Although hydroelectricity can be viewed by some as a sub-optimal solution, it is arguably the best option(download).

Friday, 15 May 2015

Book release



The Foundation of the ASEAN Economic Community
An Institutional and Legal Profile

AUTHORS:

Stefano Inama, UNCTAD, Geneva, Switzerland
Edmund W. Sim, Appleton Luff, Singapore
DATE PUBLISHED: April 2015
AVAILABILITY: Available
FORMAT: Paperback
ISBN: 9781107498136

ABSTRACT:

ASEAN has undertaken the complex task of creating a single economic entity for Southeast Asia by 2015 in the form of the ASEAN Economic Community (AEC), but without regulators or supranational institutions, its implementation has been an inconsistent process. Through comparisons with the EU and NAFTA, this book illustrates the shortcomings of the current system, enabling readers to understand both the potential of regional economic development in ASEAN and its foundational and institutional deficiencies. The authors' analysis of trade in goods and services, investment, and dispute resolution in the AEC indicates that without strong regional institutions, strong dispute resolution or a set of norms, full and effective implementation of the AEC is unlikely to result. The book offers clear solutions for the ASEAN institutions to help the AEC reach its full potential. Written by two leading practitioners, this insightful book will interest policymakers, students and researchers.


TABLA OF CONTENTS

General editors' preface
1. Introduction
2. Overview of ASEAN
3. Critical nexuses of law and policy
4. Improving ASEAN's institutional tools
5. Conclusions
Executive summary
Appendices
Index.

Friday, 17 April 2015

Cambodia Launches FDI Offensive at Asian Investment Conference

By John Le Fevre, Establishmentpost.com

Cambodia’s Minister of Commerce Sun Chanthol has signaled the aggressive approach his country is taking in attempting to lure foreign direct investment (FDI) in a punchy interview with CNBC’s Squawk Box on the side lines of the 18th Credit Suisse Asian Investment Conference in Hong Kong.
In a smoothly delivered exchange with Squawk Box anchor Bernie Lo, Mr Chanthol, a graduate of the Wharton School of Business (University of Pennsylvania), succinctly highlighted the major advantages Cambodia offered, particularly over its neighbour Thailand, where FDI in the first two months of this year fell by 72.58 per cent YoY from to just Bt 17 billion (US$ 521.893 million) this year (See: Destructive Drought Cuts Swathe Through Thailand Agricultural Sector).
Addressing the gripes of many existing and potential Thailand foreign investors Mr Chanthol effortlessly rattled off: “Cambodia provides the investor with:
Political stability
Macro economic stability with high-growth
Low inflation
A stable exchange rate
Low debt to GDP rate
An investment law that provides very generous investment incentives
No exchange control
No alien business law – every economic sector is open to foreign investors
Foreign investors can own 100 per cent of their business or enter into joint ventures
Money can be easily transferred into or out of the country
A young, dynamic, and hard working work force with a nation-wide average age of 24.1 years ensuring another 30 years of a productive work force
Strategically located in the heart of Asean” (read more).

Tuesday, 14 April 2015

ASEAN's Investment Environment: A Comparative Study of Foreign Investment Regulations in Selected ASEAN Members

By Dr. C. LIN, Institute of financial and economic law, Feng Chia University

Since the ASEAN leaders were keen on seeking economic gains from foreign investors, it seems that the future cooperation of ASEAN is more focused on attracting investment from within and from outside of ASEAN members, instead of internal trading. In October 2003, the ASEAN leaders gave impetus to the original thought by signing the Bali Concord II to realize the vision of an ASEAN common market by 2020. These efforts are designed to facilitate the flow of goods within ASEAN so as to further AFTA's goals of deeper regional integration and attracting more investment from extra-regional sources. Although its position is one of the most successful examples of regional integration in the Asia-Pacific area, there is no doubt that ASEAN still has to deal with integration difficulties relating to developmental gaps between well-developed and less-developed members, in particular Cambodia, Laos, Myanmar and Vietnam. The ASEAN leaders are also aware that failure to integrate the diverse markets of ASEAN will mean the group will lose investment and economic opportunities to regional competitors such as China and India. Not only forming a strong trading bloc, but ASEAN member states have adopted a series of measures to catch more foreign investors’ eyes. These legislations provide legal protection for bilateral trade investments and ensure foreign investors’ interests in those countries. Since both the formation of ASEAN and ASEAN members themselves are more focused on attracting foreign investment, strongly influenced by the establishments of the WTO, EU, and NAFTA, one may ask what differences of foreign investment environment and regulations ASEAN members have? In addition, ASEAN member states face different developmental situations, are their investment regulations similar with each other under an united structure of ASEAN? or they have designed or adopted different investment measures to fit their national economic goals? The article hopes to analyze these questions from ASEAN member’s investment environment and selected members’ investment regulation and examine the relationship between developmental demands and related regulations through a comparative study of ASEAN members’ investment regulations (read more)

Tuesday, 31 March 2015

Myanmar Competition Law

In February, Parliament passed the Myanmar Competition Law. The new law establishes the Myanmar Competition Commission to administer and enforce its provisions. The law will only come into force on the day stipulated by the President in a commencement order.
The new law establishes various new rules designed to promote competition and it is worth highlighting that criminal sanctions apply to individuals for infringements of some of its provisions. Some of the key rules are set out below.

  • A general prohibition on acts restricting competition. The type of conduct prohibited under this chapter includes price fixing, bid rigging and market allocation.  Consistent with established competition law regimes, there is a recognition that certain arrangements which may restrict competition will be exempt for a specified period of time - to be determined by the Commission on a case-by-case basis - insofar as the arrangements, (i) “reduce costs for consumers”, and (ii) give rise to efficiencies including, among others, the enhancement of technology and improvements to the distribution of goods.  We expect the exemption to be applied narrowly.
  • A prohibition on “creating monopolies” through various practices.While the law does not prohibit monopolies per se, the “creation” of monopolies through certain prohibited practices such as, among others, obstructing market access or “unfairly interfering in the business activities of other persons”, is not permitted.  “Monopolies” is not a defined term and it is left to the Commission to specify what may amount to a “monopoly” by reference to such factors as market shares and sales volumes.
  • A prohibition of practices of unfair competition. The term “Unfair competition” is very broadly defined as “any act of competition…which affects or has the potential to affect the rights and benefits to which consumers or other businesses are entitled or the well-being of the state”. Furthermore, the law also provides that any act which is specified as an act of unfair competition can be prohibited “in order to protect the interests of consumers”.  This prohibition therefore has the potential to be of very broad application and the discretion of the Commission appears extensive. 
  • The regulation of certain M&A activity. Under the law, certain mergers, acquisitions, establishment of joint ventures or other forms of “collaboration” as specified by the Commission will be prohibited if the “collaboration” is established with an intent to exercise “excessive market influence” or “lessen competition in order to have only one business or only a small market” or if the collaboration results in a market share which exceeds a cap set by the Commission (yet to be determined). Exemptions from the prohibition can be obtained if the collaboration, among other things, promotes imports, supports the improvement of technology or establishes businesses with “stronger entrepreneurial acumen”. There is no further guidance yet as to how this will be interpreted or how collaborations will be reviewed by the Commission. The current drafting creates considerable uncertainty as to how the merger control regime will be applied.

Given the numerous uncertainties as to the interpretation of many of the provisions of the new law and the very wide margin of discretion of the Commission, it is concerning that there are criminal sanctions for individuals for infringements of the provisions on “acts restricting competition”, the creation of monopolies, collaboration between businesses and some of the practices relating to unfair competition. The penalties may involve imprisonment for a term not exceeding three years or a fine of up to Ks 15,000,000 (approximately US$15,000).
Although the new law is not yet in force, businesses will be concerned as to the competition risks they may face from investing or carrying out business in Myanmar and the potential criminal sanctions. It is to be hoped that before the law comes into force, greater clarity will be provided around some of the key provisions.
(Freshfields Spotlight on Myanmar , march 2015)

Friday, 27 March 2015

The new lawyer for an integrated Asean

During the Association of Southeast Asian Nations (ASEAN) Law Association’s General Assembly on march 2015, Senate President Franklin Drilon threw out the following query: “As the integration calls for a free exchange of resources, we must ask ourselves: what does integration mean to the legal profession? What is its impact to the practice of law? In this era of integration, the ASEAN lawyer must learn to navigate multiple legal jurisdictions.”(read more)

Thursday, 12 March 2015

Investment laws re-considered (Myanmar)

According to the Myanmar Time, the government has begun accepting public feedback on a proposed amalgamation of two investment laws that it says will give equal opportunities to both domestic and foreign firms.

The Directorate of Investment and Company Administration launched the public consultation window yesterday and will accept feedback on the draft of Myanmar Investment Law until March 26(read more).

Monday, 15 December 2014

Investment news brief/Cambodia/15.12.14

Malaysian firm looks to invest in Cambodia : Malaysia's Felda Global Ventures (FGV) is planning a US$ 297 millions investment in Cambodia's plantation sector (read more).

Kuwaitis encouraged to invest in CambodiaCambodia's Minister of Commerce Sun Chanthol has, while visiting the Kuwaiti Chamber of Commerce and Industry, urged Kuwaiti investors to take advantage of the new economic laws aimed at targeting and encouraging foreign investors notably in the sectors of industry and agriculture (read more).


Cambodia considers sea shore incentivesCambodia’s Ministry of Tourism may relax regulations for foreign visitors to boost tourist arrivals and encourage investment particularly along Cambodia’s coastline.
The Phnom Penh Post quoted Tourism Minister Thong Khon as saying that visa requirements and rules governing property ownership at Cambodia’s beach areas are under review (read more).
PhillipBank sees the beginning of a new era in Cambodia with hopes of a fruitful season Arelatively recent entrant to the commercial banking scene in Cambodia, PhillipBank has made it a point to target the Kingdom’s small- and medium-sized business owners . The Phnom Penh Post Special Reports editor Moeun Nhean sat down with bank CEO Han Peng Kwang recently to talk about the different services PhillipBank provides, the reasons behind its rapid growth in the market and its plans for what seems an increasingly bright future(read more).

Wednesday, 17 September 2014

Free business tools to manage your Intellectual Property Right in South East Asia

Asean IPR SME Helpdesk is an initiative co-funded by European Union. It is a free service

which provides practical, objective and factual information aimed to help European SMEs to

understand business tools for developing IPR value and managing risk. The services are not

of a legal or advisory nature and no responsibility is accepted for the results of any actions 

made on the basis of its services.