APR News

Vietnam finalized the talks with Russia and Belarus on industrial assembly of transport facilities on its territory. It was announced by the European Markets Department of the Ministry of Industry and Trade (MOIT) of Vietnam. Two protocols on cooperation in cars production sphere between Vietnam, Russia and Belarus were initialed. These documents allow for establishing joint plants of Russian and Belarusian companies and Vietnamese partners to manufacture lorries and some special automotive vehicles on the territory of Vietnam. An agreement on industrial assembly of auto transport facilities will be a part of the package of the Free Trade Zone agreements between the Eurasian Economic Union (EAEU) and Vietnam signed in May 2015 in Astana. Russian companies KAMAZ, GAZ and UAZ and Belarusian company Minsk Automobile Plant (MAZ) expressed their interest in cooperating with the Vietnamese partners. Under the terms of the agreement Vietnam will provide the joint plants with a permission to import free of charge a number of fabricated cars to be sold to explore the demand of the Vietnamese market. Moreover, imported components for facilities assembling cars in Vietnam will be free of import taxes. In their turn car manufacturers commit to increase a level of localization of cars manufacturing to 35 per cent by 2020 and 45 per cent by 2016.
Press-release at BELTA – TASS web-site (in Russian)

An official ceremony of Dalian-Vorsino route launch and first container train departure on this route was held in a port terminal of Dalian on January 27, 2016. The route with length of 7721 km is a part of the international infrastructure project “New Silk Road”. The route Dalian-Vorsino is expected to be one of the fastest land routes from the key logistics port terminals of China to the Eastern Europe. A travel time on this route is 9 days. Discharging of Chinese loads will be organized in the multimodal transport & logistics center “Freight Village Vorsino” with a handling capacity of up to 500 000 TEU/year.
One of the product types transported via Dalian-Vorsino route will be components for Samsung Electronics plant manufacturing TV and home appliances. Due to the agreement signed by the Kaluga Region Government, South Korean seaport Incheon, Chinese port Dalian and heads of Russian Railways, TransContainer, China Railway, China Railway Container Transport, COSCO and Samsung Electronics, Samsung will be able to transport its goods to Russia and Europe by the most optimal way: by sea from Incheon to Dalian, then by Harbin Railway to Manzhouli, then by the Trans-Siberian Railway to Moscow and its plant in the Kaluga Region. A travel time for the goods transportation on this route will be 20 and 35 days (depending on the way of dispatch – by sea or by the Trans-Siberian Railway). In mid-December 2015 Samsung transported a pilot batch of its goods and, being satisfied with the results, decided to establish the continuous delivery. It is expected that the new railway service will be in demand by other largest companies, such as Daimler AG, LG Electronics, Toyota Motor Corp and Honda Motor Co, to transport their goods to Russia`s and European markets.
Press-release at the Kaluga Region Government web-site (in Russian)
Press-release at “Moscow Railroad Man” Journal web-site (in Russian)

India hopes to begin consultations soon on creating a free trade zone with the Eurasian Economic Union, Indian Ambassador to Russia Pankaj Saran said.
“A Joint Study Group has been constituted to study the prospects of a Free Trade Area (FTA) between India and the Eurasian Economic Union. Presently, the study is underway and we look forward to the early conclusion of this study. Subsequently, we will study the report and thereafter enter into the actual negotiations for the Free Trade Area (Comprehensive Economic Cooperation Agreement) to start”, Saran told RIA Novosti in an interview.
Press-release at the informational BRICS web-site

According to Moody's Investors Service, Indian economy will grow at 7.5 per cent in 2016 and 2017 due to a fact that India is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices. Another source of resilience will be India's large services export sector (IT services account for around 18 per cent of total exports). India's economy is also powered by sustained growth in consumer spending, fostered by moderate inflation and still favourable demographics, and strengthening investment, in particular FDI.
According to the report, the growth rate gap with other G20 emerging markets will be unusually large. In the five years to the end of the decade, we expect GDP per capita (at market exchange rates) to increase by 34 per cent in real terms in India, compared with only 3.6 per cent in the G20 emerging markets excluding China and India.
Press-release at The Times of India web-site

ASEAN and the European Union (EU) Support to Higher Education in ASEAN Region (SHARE) Programme commenced their second in a series of SHARE policy dialogues on February 24, 2016. In cooperation with the ASEAN University Network (AUN) and hosted by Chulalongkorn University, this two-day event brings together more than 150 high-level education officials, academics and students from ASEAN Member States and the EU.
The policy dialogue focuses on students’ learning outcomes in the context of the various degree structures across ASEAN universities and is an important stepping-stone on ASEAN’s path towards a more connected regional higher education system.
SHARE is a 10 million Euro EU grant funded programme with a principal objective of strengthening regional cooperation, enhancing the quality, competitiveness and internationalisation of ASEAN higher education institutions and students, and contributing to an ASEAN Community. From 2016 onwards, it will be providing some 500 scholarships for ASEAN university students to put the improved systems to the test, mainly by supported student exchange and credit recognition within the ASEAN region. The European Higher Education Area and the well-known Erasmus scholarships will serve as the main reference point in this process. The EU experience will strengthen the creation of higher education space in ASEAN and will leverage existing higher education platforms in the region.
“Internationalisation is a key strategy for a modern university,” said Prof. Pirom Kamolratanakul, M.D., President of Chulalongkorn University, “and we should focus increasingly on connecting with universities in the ASEAN region. Regional frameworks will greatly facilitate such regional connectivity, as we have seen in the European example.”
To support the debate SHARE published four in-depth studies on the state of play in ASEAN of framework agreements that allow different university qualifications to be compared, on means to assess and improve the quality of teaching and of institutions, on different types of existing degrees and courses, and on what options today’s students have to study abroad in ASEAN and have the credits they obtain recognized by their home university.
ASEAN is working with a consortium led by British Council and comprising the DAAD, EP-Nuffic, Campus France, ENQA and EUA between 2015 and 2018 to implement SHARE.
The ASEAN University Network of 30 universities across the region promotes regional cooperation in higher education since 1995 and is a key partner of SHARE.
Press-release at the official ASEAN web-site

This 10,400-km route connects the city of Yiwu in China’s Zhejiang province to Tehran. The first freight train from China will arrive in the Iranian capital on February 22, 2016. It will take the train exactly two weeks to reach its destination. On its way from China, the train passes through Turkmenistan, Uzbekistan and Kazakhstan.
The New Silk Road will also include Russia as one of the major partners. On February 6, 2016 a test freight train arrived in Russia’s Kaluga Region from China.
The new route is the first logistical solution offering the delivery of cargo from the Asia Pacific region to the coast of the Persian Gulf.
The high-ranking Iranian official added that Iran is ready to build the railroad further, so it would reach Europe. That way, Tehran would become a key transportation hub between China and the European Union.
On January 23, 2016 Iranian President Hassan Rouhani and his Chinese counterpart Xi Jinping signed 17 cooperation agreements to strengthen bilateral ties after the two countries set a goal of increasing bilateral trade to $600 billion over the next decade.
When the New Silk Road is ready, the Chinese-led $900 billion infrastructural project will connect the Asia Pacific region, the Middle East, Europe and Africa.
Press-release at BRICS information web-site

A respective commitment is included into the Joint Statement of the ASEAN-U.S. Special Leaders’ Summit held in Sunnylands, California, on February 15-16, 2016.
The Statement includes the key principles that will guide cooperation between the ASEAN and US, in particular shared commitments to promote sustainable, inclusive economic growth and development, to enhance good governance and adherence to the rule of law, to maintain peace, security and stability in the region, including maritime security and safety, to lead on global issues such as terrorism and violent extremism, to address climate change and develop a climate-resilient, environmentally sustainable ASEAN, to strengthen people-to-people connectivity through programs that engage ASEAN and American citizens, particularly young people and other.
Joint Statement of the ASEAN-U.S. Special Leaders’ Summit: Sunnylands Declaration

An International Monetary Fund (IMF) mission to the Philippines was organized on February 11−17, 2016. The mission met with the Governor of the Bangko Sentral ng Pilipinas (BSP), the Secretaries of the economic cluster, senior government officials, private sector representatives, and the financial community.
According to the IMF following statement, “The Philippine economy has performed remarkably well in the face of a weaker external environment and global financial turbulence in 2015. Despite a large drag from net exports, real GDP growth remained robust in 2015 at 5.8 percent, reflecting a strong pickup in private investment and public construction through the year. Real GDP growth is projected at 6.0 percent in 2016 and 6.2 in 2017, driven by continued strong domestic demand offsetting weak net exports. The unemployment rate has fallen to a decade’s low of 5.3 percent, but significant under-employment remains. Inflation fell to 1.4 percent in 2015, below the inflation target range (2–4 percent), due to lower food and fuel prices. Inflation is expected to rise to 2 percent in 2016 as commodity prices stabilize.
The economic outlook is favorable but subject to increased downside risks, including lower growth in China and the region, higher global financial volatility and capital outflows, and weather related disruptions. However, the Philippines’ capacity to respond if these risks materialize is substantial given its ample reserves and policy space, both monetary and fiscal.
Over the medium term, a continuation of prudent macroeconomic policies and good governance would be critical to sustain investor confidence and the growth momentum. To support growth, structural reforms will also be needed to address structural issues centering around the low rate of national investment, opening up the economy to greater competition and foreign investment, and high rates of poverty and inequality”.
The 2016 Article IV consultation mission is planned to visit Manila in June–July 2016.”
Press-release at the official IMF web-site

ASEAN Economic Ministers (AEM) participated in the 3rd AEM Roadshow to the United States, involving San Francisco and the Silicon Valley on February 17-18, 2016.
During the roadshow, the Ministers attended the Joint Council Meeting of the U.S.-ASEAN Trade and Investment Framework Arrangement where they discussed the future of ASEAN-US economic cooperation. Among the areas of cooperation raised at the Meeting were the proposed ASEAN Connect initiative which aims to provide a framework for engagement between the US and ASEAN in 4 areas – Connect Energy, Connect Business, Connect Policies and Connect Innovation as well as the US’s setting up of three ASEAN Connect centers in Bangkok, Jakarta and Singapore. The other proposal was for ASEAN Trade Workshops focusing on issues relating to high-standard Free Trade Areas (FTAs).
The Ministers were also given the opportunity to showcase ASEAN to US investors by participating in panel discussions at the US-ASEAN Business Advisory Council’s Conference entitled “Asia’s Best Kept Secret: the ASEAN Economic Community.” The Ministers explained the ASEAN integration process to US investors and provided updates on ASEAN’s AEC Blueprint 2025 as well as engaged in discussions on future trends in innovation, entrepreneurship and the digital economy.
Further, the Ministers participated in visits to several high-tech companies which included Google, Autodesk, Silver Spring Networks and Prospect Silicon Valley, where US companies shared experiences on start-ups and innovative technology development. They discussed with San Francisco city officials the success factors of eco-systems for innovation and green cities development in the San Francisco/Silicon Valley areas. The Ministers also had the opportunity to discuss with Andreesen Horowitz, a venture capital company, on financing start-ups and innovative companies.
The United States is ASEAN’s key trade and investment partner with a combined trade value of USD 212 billion in 2014. The total United States investment in ASEAN is more than the combined US investment in China and India, and in 2014 reached USD 13 billion or 10% of ASEAN’s total FDI.
The AEM Roadshows are part of an initiative by the US Government in collaboration with the US-ASEAN Business Council to promote US-ASEAN trade and investment.
Press-release at the official ASEAN web-site

It was announced by Head of the Russian Trade Representative Agency in Vietnam Maxim Golikov. According to Maxim Golikov, “trade turnover between the Russian Federation and Socialist Republic of Vietnam reached USD3.9 billion demonstrating an increase by 4 per cent”. Compared to the previous year Vietnam has raised by 9 positions to become ranked 28 in the total list of Russia`s international trade partners. Vietnamese export to Russia grew to USD2.1 billion, whereas Russian export to Vietnam amounted to USD1.8 billion. The main increase of exports from Russia to Vietnam was registered for commodities and semi-processed materials (+13.6 per cent) and machinery and equipment (+22 per cent). The Agreement on the Free Trade Zone (FTZ) between the Eurasian Economic Union (EAEU), its Member States and the Socialist Republic of Vietnam signed in May 2015 will contribute to further increase of the Russian-Vietnamese trade. Vietnam was the first country with which the EAEU has signed such an agreement.
Press-release at TASS official web-site