News on Hebronstar vol. 79
[Inside Korea]
The New Consumer Trend in China – the 95 hou
Those born after the year of 1995 who have just entered society, are the generation that grew up with China’s fast-growing Internet. These are called “95 hou,” were born between 1995 and 1999, and are expected to reach 27% of China’s total population by 2026 with a population of 260 million.
Their consumption expenditure is 4 trillion Chinese Yuan, and accounts for 13% of China’s total household consumption. This shows the highest increase in expenditure by age group in China.
The emerging consumption trend of the 95 hou as a major consumer class deserves attention by many companies seeking to enter the Chinese market. The main consumption trends led by the 95 hou were investigated with a focus on four categories: Health-oriented Economy (健康经济), Economy for Lazy Consumers (懒人经济), Appearance-oriented Economy(颜值经济), and Pet economy (宠物经济).
[Inside Vietnam]
Layoffs at real estate firms on the rise
Real estate firms in Vietnam are laying off a growing number of employees due to a stagnant property market.
Hoang, a legal officer at a real estate company in Ho Chi Minh City, said four out of five people in his office have left the firm, so he is doing all the work relating to legal affairs, while his salary has been halved.
The company, located in District 3, has been cutting staff since late last year, and the situation has worsened in the first two months of this year when more employees were laid off, and many others took the initiative to quit because their incomes were cut sharply.
Hoang said all departments of the company have reduced their staff by 50-70% because investment and sales have been stagnant.
“Most of staff in the after-sales department has been laid off or have quit,” Hoang said. Many real estate firms also owe salaries to their staff for the first two months of the year, so employees want to leave the companies.
Kha, a sales officer in the marketing department of a real estate company which is developing a project in Thu Duc City, said that earlier this month he submitted his resignation letter and is no longer a staff member of the company.
His company’s marketing department used to have more than a dozen workers, but currently has only one department head, who is now responsible for legal and external affairs, and after-sales departments.
Opportunities await Vietnam and Japan’s economic partnership: PM
Vietnam and Japan’s established trade pacts and longstanding mutual trust create a host of potential partnerships, said Prime Minister Pham Minh Chinh.
Speaking at the Vietnam-Japan High-Level Economic Conference on Tuesday in Hanoi in celebration of 50 years of bilateral diplomatic ties, Chinh urged Japanese companies to expand their investment into Vietnamese infrastructure, energy, manufacturing, high-quality agriculture, smart cities, financial services, and banking.
He noted briefly that qualified Japanese businesses should also consider partnering with their Vietnamese counterparts in new fields such as digital transformation, green transformation, circular economy and climate change response.
Vietnam also expects Japan to strengthen its training of high-quality human resources and scientists to help Vietnam become a hub for regional and global value chains.
Fuel retailers ‘forced’ to sell despite huge losses
Gasoline retailers say they are being “forced” to sell despite losses of up to trillions of Vietnamese dong ($42.28 million), as the government has not allowed them to shut up shop.
“At first we thought the disruption was short-term, but now it has lasted for over a year,” said Giang Chan Tay, CEO of fuel retailer Boi Ngoc, at a forum on Friday.
Many retailers have run out of cash, he said, adding that some had sold their stations or had to sell their own land to keep the stations running.
Businesses are being “forced” to sell by authorities, even though they are deep in losses, he added.
Nguyen Thi Rim, CEO of fuel retailer Giang Chan Hung, said that she wondered if retailers would receive compensation for the losses they have suffered which is estimated at trillions of Vietnamese dong.
[Inside Indonesia]
Kalimantan Industrial Park to Produce EV Batteries, Petrochemical
Indonesia is building the world’s largest green industrial park in Bulungan, North Kalimantan, which will eventually produce batteries for electric vehicles, President Joko “Jokowi” Widodo claimed.
Operations in the 13,000-kilometer Kalimantan Industrial Park Indonesia (KIPI) will be powered by green and renewable energy. This includes hydropower from Mentarang and Kayan rivers in North Kalimantan, although the transition to green energy will take time.
“This is the largest green industrial park in the world. This is Indonesia’s future,” Jokowi said when he toured the project site.
The area will see the development of industries such as EV batteries, as Indonesia advances with its downstream policy and bans the export of the unprocessed ores of key minerals. The president added that there would also be petrochemical and aluminum industries at KIPI.
According to Jokowi, green energy, coupled with the “green products” that the park will make grants KIPI a competitive power. And this would also make KIPI attractive to investors, particularly those related to green products.
“If everything goes well, everyone will surely flock here, any industry related to green products will look at this area,” Jokowi said.
Jokowi told reporters that he would continue to keep an eye on the progress, so the project remains on schedule. “There are no issues on site. All permits are complete and ready,” the president said.
National flags of countries who are member of AEC (ASEAN economic community) on blue sky background
ASEAN Bigger Contributor to Global Economy Than EU
An Indonesian government official on Friday said that ASEAN countries’ contribution to global economic growth is much larger than that of the European Union, or EU, despite having far fewer members.
Usman Kansong, the director-general for public communications at the Communication and Informatics Ministry, said that Indonesia aims to make ASEAN the world’s epicenter of economic growth under its chairmanship. According to Usman, data show how pivotal Southeast Asia is to the world’s economy.
“According to data between 2010 and 2020, the combined gross domestic product [GDP] of all 10 ASEAN member states reached $3 trillion,” Usman said at a press briefing in Jakarta.
“On the other hand, the EU has 27 countries, and their combined GDP totaled $15 trillion. While ASEAN’s amounted to $3 trillion just with just 10 member states alone. This shows that ASEAN countries make a bigger contribution to global economic growth than the EU,” Usman said.
Indonesia Sets Aside $455 Million to Subsidise Electric Motorcycle Sales
Indonesia will allocate 7 trillion rupiah ($455.88 million) in state funds to subsidise electric motorcycle sales through 2024, officials said on Monday, as it pushes mass adoption of EVs with the aim of attracting investment in the domestic industry.
The government will also announce incentives for electric cars on April 1, said senior cabinet minister Luhut Pandjaitan said. Finance Minister Sri Mulyani Indrawati said the subsidies will cover sales of 800,000 new electric motorcycles and the conversion of 200,000 combustion engine motorcycles.
“We are launching this programme so that massive adoption of battery electric vehicle can be achieved soon, and the Indonesian transportation industry can be transformed to a greener industry,” Luhut said at a news conference.
