By James Eugene

A brief summary of some of the major events in Frontier Markets this week.

Vietnam’s Investment into Cambodia Nears Zero

According to the Council for the Development of Cambodia (CDC), the was almost zero foreign direct investment (FDI) from Vietnam into Cambodia in the first half of the year. Despite the low level of investment so far this year, Chea Vuthy, the deputy secretary-general of the CDC, is confident that Vietnam will become the largest investors in Cambodia, overtaking China, South Korea, the European Union and Malaysia by 2020, with estimates reaching $6 billion.

Nguyen Duc Thanh, president of the Vietnam Institute for Economic and Policy Research, played down the lack of investment in the last six months, stating that the majority of investors in Vietnam are still interested in providing inflows into industries such as rubber and agriculture, but current global prices are not a good incentive them at this present time.

 

Kenya Signs Trade Agreement With EU

Kenya’s government have officially ratified a trade agreement, the Economic Partnership Agreement (EPA), with the EU allowing the East African nation to export its agricultural goods (including flowers, fruits, fish and livestock) to Europe without being tax. Cabinet Secretary for Industry, Trade and Cooperatives Adan Mohamed was pleased that a deal was done before the September 30 deadline, ensuring that Kenyan products remain competitive and not be liable to the 22 percent duty.

So far, the only East Africa countries to have signed the agreement with the EU are Kenya and Rwanda. Uganda, Burundi and Tanzania (who have requested a three month extension) have yet to sign the agreement.

 

UAE’s Small Businesses Need Better Access to Finance

Small and Medium Enterprises (SMEs) make up 94% of businesses in the UAE, but access to finance still remains a problem according to Mohammad Al Mulhairi, the Director General of the Abu Dhabi Chamber of Commerce and Industry (ADCCI).

The UAE has recently been taking steps to aid SMEs, including rolling out a new bankruptcy law to support small businesses and also a greater effort to encourage these companies to take insurance.

 

Oman Continues Its Privatisation Push

Oman’s finance ministry began transferring its stakes in listed and private companies to other state-owned sovereign funds in a bid to spur privatisation of these asses in the future. The Middle Eastern nation is undertaking this process in order to tackle a budget deficit in the wake of lower crude oil prices.

Oman has over 60 state-owned companies as well as shares in many listed businesses. According to reports, “notifications to the Muscat Securities Markets showed that Oman’s finance ministry has transferred stakes in Oman and Emirates Investment Holding Company and Port Services Corporation to the Oman Investment Fund”. The transfer of stakes will not only help with national budget problems, but will also help companies become more efficient in the long run.

 

Latvia and Lithuania Pledge To Enhance Military Cooperation

Defense Ministers Juozas Olekas and Raimonds Bergmans, from Lithuania and Latvia respectively, have signed a deal to improve military cooperation, defensive capabilities and procurements between the two Baltic nations in a reaction to Russia’s increased presence in Ukraine. Under the agreement, the agreement proposes to “enhance operational compatibility” between both countries, according to Olekas.