Asean's Frontier Economies the Next Stage of Growth for Cambodia, Laos, Myanmar and Vietnam 2 Special Edition Asean’S Frontier Dec

December 8, 2016 | bloombergbriefs.com

Asean's Frontier Economies The next stage of growth for Cambodia, Laos, Myanmar and Vietnam 2 Special Edition Asean’s Frontier Dec. 8, Economies2016 2

Introduction

By Tamara Henderson, Bloomberg Intelligence Economist Asean's frontier economies Cambodia, Laos, Myanmar and Vietnam are among the Inside world's fastest growing. These are the region's low income economies, each at a Big Picture different stage of transformation but all following an export-led growth strategy. This Asean's frontier economies are being makes them vulnerable in the short-term to the particularly challenging external transformed through trade with environment. China: page 3 Low labor costs have attracted foreign direct investment, which spurred the increase in export shares for CLMV countries. This is in contrast with a decline in exports as a Factsheets share of GDP for China and most of Asean over the last decade. Exports amount to Cambodia: page 4 nearly 90 percent of Vietnam's economy compared with one-third in 1995 and about two- Laos: page 5 thirds a decade ago. Exports are almost 70 percent of Cambodia's GDP, more than twice the share in 1995, and 35 percent of Laos's economy compared with 22 percent Myanmar for China. Factsheet: page 6 Open economies are more sensitive to external shocks. Asean's frontier economies are even more vulnerable because CLMV exports and imports tend to be concentrated The country's central bank braces for in a small number of products and markets. The bulk of Cambodia's exports are a deeper slide in the currency: page 7 garments, with the former French colony relying on China, Thailand and Vietnam for more than 60 percent of the inputs for garment production, according to the IMF. Q&A: page 8 Laos and Myanmar primarily export commodities. Nearly 65 percent of Laos' exports were shipped to Thailand and China in 2015, while the same two countries accounted Vietnam for 80 percent of imports. China and Thailand also account for the majority of Factsheet: page 10 Myanmar's exports and imports. The exception is Vietnam, which exports a more diverse range of goods, including commodities, garments and electronics. Like Hanoi is pushing ahead with trade Cambodia, most of Vietnam's production is destined for the advanced economies. agreements: page 11 With the external environment appearing increasingly challenging, slower growth in CLMV in 2017 is likely. A further slowdown in China would weigh on the region's Former refugees return to found exports, especially Laos and Myanmar which are heavily reliant on China's commodity startups: page 12 demand for investment goods. Cambodia and Vietnam are better-suited to benefit from China's rebalancing toward consumption as they export a larger share of consumer BI Insights goods that will benefit. All of CLMV will benefit from a larger influx of Chinese tourists. Vietnamese auto sales rise as Laos U.S. President-elect Donald Trump's threat of a trade war with China has scope to and Myanmar increase cement diminish risk appetite and stall private investment. But China's response to the Trump production capacities: page 13 Administration may be to deepen investment links in the region. Further FDI inflows could help these countries diversify their export bases and integrate them into the global Q&A supply chain, following Vietnam's example. Thomas Hugger, chief executive The increasingly challenging external environment may have a silver lining for CLMV if officer, Asia Frontier Capital: page 14 the commitment to reforms is strengthened as a result. The impetus behind Asean's building of an economic community was to reduce the vulnerability of its members to external shocks. There has never been more of an incentive to reduce this sensitivity.

Bloomberg Briefs: Asean's CLMV Frontier

Bloomberg Brief Managing Editor Bloomberg News Managing Editor Marketing & Partnership Director

Paul Smith Linus Chua Courtney Martens [email protected] [email protected] [email protected] +1-212-617-2447 Economics Asia Editors Hanoi Bureau Chief

Nathaniel E. Baker John Boudreau Reprints & Permissions [email protected] [email protected] Lori Husted [email protected] Colin Simpson SE Asia Economy Team Lead +1-717-505-9701 x2204 [email protected] Nasreen Seria Interested in learning more about

[email protected] Advertising the Bloomberg terminal? Request a Graphic Design Lucy Rosen free demo here. Pekka Aalto BI Asean Economist [email protected] © 2016 Bloomberg LP. [email protected] Tamara Henderson +1-212-617-6759 All rights reserved. This newsletter [email protected] and its contents may not be forwarded or redistributed without the prior consent of Bloomberg. Please contact our reprints group listed left for more information. Big Picture Bloomberg Briefs Special Special Edition Edition Dec. Dec. 8, 8, 2016 2016 23

Big PictureIntroduction By Tamara Henderson, Bloomberg Intelligence Economist Asean's frontier economies Cambodia, Laos, Myanmar and Vietnam are among the Inside world's fastest growing. These are the region's low income economies, each at a Big Picture China Is differentTransforming stage of transformation Asean's but all followingFrontier an export-l Withed growthCash strategy. for RailsThis to PowerAsean's frontier economies are being By David Roman,makes Bloomberg them vulnerable News in the short-term to the particularly challenging external transformed through trade with environment. China’s investment is transforming its Love Thy Neighbour China: page 3 smaller SoutheastLow Asianlabor costs neighbors have attracted like foreign direct investment, which spurred the increase in export shares for CLMV countries. This is in contrast with a decline in exports as a Factsheets never before sharewhile ofhelping GDP for turn China and most of Asean over the last decade. Exports amount to Cambodia, Laos and Myanmar into Cambodia: page 4 nearly 90 percent of Vietnam's economy compared with one-third in 1995 and about two- Laos: page 5 bigger destinationsthirds a for decade its exports. ago. Exports are almost 70 percent of Cambodia's GDP, more than That’s drivingtwice some the shareof the in world’s 1995, and 35 percent of Laos's economy compared with 22 percent Myanmar fastest economicfor China. growth rates and Factsheet: page 6 providing ChineseOpen companies economies withare more low- sensitive to external shocks. Asean's frontier economies cost alternativesare evenas they more seek vulnerable to move because CLMV exports and imports tend to be concentrated The country's central bank braces for capacity out ofin athe small country. number It’s of also products and markets. The bulk of Cambodia's exports are a deeper slide in the currency: page 7 garments, with the former French colony relying on China, Thailand and Vietnam for helping Asia’s largest economy and more than 60 percent of the inputs for garment production, according to the IMF. Q&A: page 8 smaller nationsLaos in its and orbit Myanmar adapt toprimarily what export commodities. Nearly 65 percent of Laos' exports looks more and more like a new era of were shipped to Thailand and China in 2015, while the same two countries accounted Vietnam waning U.S. commitmentfor 80 percent toof theimports. region China and Thailand also account for the majority of Factsheet: page 10 from a more inward-lookingMyanmar's exportsadministration and imports. The exception is Vietnam, which exports a more of President-electdiverse Donald range ofTrump. goods, including commodities, garments and electronics. Like Hanoi is pushing ahead with trade "China’s definitelyCambodia, looking most atof Vietnam'sthese production is destined for the advanced economies. agreements: page 11 countries in generalWith the as external an area environment where it appearing increasingly challenging, slower growth in can sell productsCLMV and in 2017 get good is likely. return A further for slowdownCambodia’s in China would economy weigh is on projected the region's to year, Formeraccording refugees to a Worldreturn toBank found report. exports, especially Laos and Myanmar which are heavily reliant on China's commodity its investments," said Edward Lee, an grow 7 percent this year, while Laos is set Cambodia,startups: Laospage 12and Myanmar are demand for investment goods. Cambodia and Vietnam are better-suited to benefit from for 7.5 percent expansion. Faster growth becoming more incorporated with China’ economist withChina's Standard rebalancing Chartered toward Plc consumption as they export a larger share of consumer in Singapore. "China itself is getting more has also translated into rising income s supplyBI Insights chains, buying intermediate goods that will benefit. All of CLMV will benefit from a larger influx of Chinese tourists. Vietnamese auto sales rise as Laos expensive for its companies, and that’s levels and lower poverty. Based on the goods from its factories and selling U.S. President-elect Donald Trump's threat of a trade war with China has scope to and Myanmar increase cement most recent data from the World Bank, consumer items such as garments and reinforcing thisdiminish trend." risk appetite and stall private investment. But China's response to the Trump production capacities: page 13 China is investingAdministration in everything may be tofrom deepen investmentthe number links inof the people region. living Further on $1.90FDI inflows a shoes that are often made by companies railroads to realcould estate help thesein Cambodia, countries diversify theirday export in Cambodia bases and dropped integrate to them 2.2 intopercent the global ownedQ&A or funded by China. Its imports

Laos and Myanmarsupply chain,— the following frontier-market Vietnam's example.of the population in 2012 from 30 percent from Thomasthe three Hugger, Southeast chief Asianexecutive economies of theThe Association increasingly challengingof externalin environment1994. In Laos, may the have poverty a silver rate lining is for16.7 CLMV if economiesofficer, moreAsia Frontier than doubled Capital: inpage the 14 past the commitment to reforms is strengthened as a result. The impetus behind Asean's Southeast Asian Nations. China percent, down from 22.9 percent in 1992. five years, IMF data show. building of an economic community was to reduce the vulnerability of its members to As Sino-Cambodian relations have Such dependence on China isn’t Minsheng Investmentexternal shocks. Group There and LYP has never been more of an incentive to reduce this sensitivity. Group signed a $1.5 billion deal last flourished, so has trade, with two-way without risks. Beijing accounts for the week to build a 2,000-hectare city near commerce climbing to $4.8 billion last largest chunk of foreign investment in Phnom Penh,Bloomberg the official Xinhua Briefs: News Asean's year. CLMV That’s Frontier more than double from 2012, Cambodia and also about 43 percent of

Bloomberg Brief Managing Editor Bloomberg News Managing Editor Marketing & Partnership Director Agency reported. The spending equals the year Cambodia warmed up to Beijing the country’s total debt stock, mostly in roughly one-tenthPaul Smith of the country’s $15.9 Linusby Chua opposing mention of China’sCourtney Martens loans from Chinese development banks billion GDP. [email protected] landlocked Laos, work [email protected] in the South Chinacmartens3 [email protected] Cambodia’s government, according to +1-212-617-2447 started last yearEconomics on the Asia China-Laos Editors HanoiMost Bureau Chinese Chief money flowing in to the IMF. Similarly, China’s railroad in railway, whichNathaniel will stretch E. Baker 414 kilometers JohnCambodia, Boudreau Laos, and MyanmarReprints is & PermissionsLaos equals about half of its $10.5 billion (257 miles) [email protected] the border to the capital, [email protected] on highly concessionaryLori Hustedterms to 2015 GDP. [email protected] Vientiane. TheColin project, Simpson part of Xi’s One SE financeAsia Economy construction Team Lead projects run by Cambodia has gained particular appeal +1-717-505-9701 x2204 Belt, One [email protected] initiative, will cost $5.4 NasreenChinese Seria firms, especially in Laos, said for Chinese manufacturersInterested in learning seeking more about to

[email protected] Scissors, Washington-basedAdvertising chief relocate, whichthe aligns Bloomberg with terminal? China’s Request a billion, accordingGraphic to DesignXinhua. Lucy Rosen free demo here. Myanmar, whichPekka Aalto is liberalizing its economist at China Beige Book strategy to export industrial capacity BI Asean Economist economy and adopting market reforms International, who [email protected] in studying through initiatives© 2016 such Bloomberg as One LP. Belt, One [email protected] Tamara Henderson the country’s foreign investment.+1-212-617-6759 Chinese Road. Cambodia’sAll rights $121 reserved. average This newsletter after a transition to democracy, is forecast [email protected] by the IMF to expand 8.1 percent this construction and investment since 2005 monthly wageand is justits contents a fifth may of China’snot be year, the fastest in the world after Iraq. De- equal about 15 percent of Lao GDP, $613 average,forwarded according or redistributed to the without the prior consent of Bloomberg. facto leader Aung San Suu Kyi has been which it couldn’t have financed from International Labour Organization in Please contact our reprints group other nations, he said. Geneva. quick to engage China since taking office listed left for more information. this year, including visiting Xi in Beijing. The share of the Lao population with The biggest risk for frontier Asean China is its largest trading partner, access to electricity rose from 15 percent economies is that Chinese inflows create accounting forBig about Picture 40 percent of in the mid-1990s to almost 90 percent in "extractive" elites who entrench Myanmar’s total last year, and is building 2014, though the power grid increasingly themselves in power, said Song Seng a special economic zone, power plant and faces new challenges from demand Wun, an economist at CIMB Private deep-water seaport on the west coast. growing by an average of 13 percent a Banking in Singapore. 4 Special Edition Asean’s Frontier Dec. 8, Economies2016 4 Bloomberg Briefs Special Special Edition Edition Dec. Dec. 8, 8, 2016 2016 25

Introduction

Bloomberg Briefs: Asean's CLMV Frontier

Bloomberg Brief Managing Editor Bloomberg News Managing Editor Marketing & Partnership Director

Paul Smith Linus Chua Courtney Martens [email protected] [email protected] [email protected] +1-212-617-2447 Economics Asia Editors Hanoi Bureau Chief

[email protected] Advertising the Bloomberg terminal? Request a Graphic Design Lucy Rosen free demo here. Pekka Aalto BI Asean Economist [email protected] © 2016 Bloomberg LP. [email protected] Tamara Henderson +1-212-617-6759 All rights reserved. This newsletter [email protected] and its contents may not be forwarded or redistributed without the prior consent of Bloomberg. Please contact our reprints group listed left for more information. Big Picture 6 Special Edition Asean’s Frontier Dec. 8, Economies2016 6

Myanmar Economy Bloomberg Briefs Special Special Edition Edition Dec. Dec. 8, 8, 2016 2016 27

MyanmarIntroduction Economy By Tamara Henderson, Bloomberg Intelligence Economist Asia’s NewAsean's Tiger frontier Economy economies Cambodia, Fears Laos, Currency Myanmar and VietnamSlide areas among Fed the Hike LoomsInside world's fastest growing. These are the region's low income economies, each at a Big Picture By Kyaw Thu, differentBloomberg stage News of transformation but all following an export-led growth strategy. This Asean's frontier economies are being Myanmar's centralmakes bankthem isvulnerable braced forin the a short-term to the particularly challenging external transformed through trade with deeper slide inenvironment. the nation's currency and China: page 3 has little scopeLow to tackle labor coststhe decline have attracted after foreign direct investment, which spurred the increase in export shares for CLMV countries. This is in contrast with a decline in exports as a Factsheets the kyat fell theshare most of GDPin Asia, for Chinaaccording and most of Asean over the last decade. Exports amount to to one of the monetary authority's top Cambodia: page 4 nearly 90 percent of Vietnam's economy compared with one-third in 1995 and about two- Laos: page 5 officials. thirds a decade ago. Exports are almost 70 percent of Cambodia's GDP, more than The kyat hastwice weakened the share about in 1995, 10 and 35 percent of Laos's economy compared with 22 percent Myanmar percent againstfor China.the dollar in the past six Factsheet: page 6 months, data compiledOpen economies by Bloomberg are more sensitive to external shocks. Asean's frontier economies show. The dropare couldeven more deepen vulnerable if the U.S. because CLMV exports and imports tend to be concentrated The country's central bank braces for Federal Reservein a smallincreases number interest of products rates and markets. The bulk of Cambodia's exports are a deeper slide in the currency: page 7 garments, with the former French colony relying on China, Thailand and Vietnam for this month as expected, said U Win more than 60 percent of the inputs for garment production, according to the IMF. Q&A: page 8 Thaw, the directorLaos general and Myanmar of the primarilyforeign- export commodities. Nearly 65 percent of Laos' exports exchange management department in were shipped to Thailand and China in 2015, while the same two countries accounted Vietnam the Central Bank of Myanmar. for 80 percent of imports. China and Thailand also account for the majority of Factsheet: page 10 "There's noMyanmar's way for the exports central and bank imports. to The exception is Vietnam, which exports a more intervene in thediverse market," range he of goods,said in includingan commodities,be some garmentsstability." and electronics. Like TheHanoi U.S. iseased pushing sanctions ahead with on tradeMyanmar interview by phoneCambodia, from most his officeof Vietnam's in productionA is lack destined of cooperation for the advanced between economies. after agreements:the elections page in 2015, 11 opening up Yangon. "The depreciatingWith the external kyat environment impacts appearingministries increasingly in the $65challengin billiong, economy slower growth in untapped opportunities for foreign on the economicCLMV stability in 2017 of is thelikely. country. A further slowdownmakes in itChina harder would to frameweigh ona policy the region's to companiesFormer in refugees a nation return of 54 to millionfound exports, especially Laos and Myanmar which are heavily reliant on China's commodity Compared with other currencies, our respond to the kyat's weakness, U Win people.startups: Challenges page 12 include shifting demand for investment goods. Cambodia and Vietnam are better-suited to benefit from Thaw said. regulations and an underdeveloped drop is very roughChina's at rebalancing the moment." toward consumption as they export a larger share of consumer The currency weakness has sparked a The Southeast Asian nation's central financialBI Insights system. goods that will benefit. All of CLMV will benefit from a larger influx of Chinese tourists. Vietnamese auto sales rise as Laos debate in Myanmar about whether bank has about $5 billion of foreign The finance ministry and central bank U.S. President-elect Donald Trump's threat of a trade war with China has scope to and Myanmar increase cement reserves, the International Monetary set up a committee in October to officials shoulddiminish seek waysrisk appetite to stem and the stall private investment. But China's response to the Trump production capacities: page 13 drop or let marketAdministration forces find may an be to deepen investmentFund estimated links in the in region. September Further last FDI year.inflows scrutinize exchange-rate volatility, the equilibrium incould an economy help these set countries for the diversify theirMyanmar export bases moved and inttoegrate a managed them into float the in global MyanmarQ&A Times reported. world's second-fastestsupply chain,expansion following inVietnam's2016. example.2012 to simplify the nation's currency ThatThomas was probably Hugger, chiefbecause executive of the Depreciation stokesThe increasingly inflation by challenging raising the external market environment and encourage may have ainvestment. silver lining forThe CLMV if pressureofficer, officials Asia Frontier are under Capital: from page some 14 the commitment to reforms is strengthened as a result. The impetus behind Asean's cost of imports such as oil, while boosting slide in the kyat since early June is quarters of the business community, said building of an economic community was to reduce the vulnerability of its members to the outlook for exports ranging from among the worst in emerging markets. Sean Turnell, an associate professor in external shocks. There has never been more of an incentive to reduce this sensitivity. natural gas to minerals. Currency swings In contrast, the currency was Asia's top the economics department at Macquarie can also make it harder for businesses to performer during the first half on optimism University in Sydney and a special plan investment.Bloomberg Briefs: Asean'sabout CLMV the transitionFrontier to democracy under adviser to Myanmar's government.

Bloomberg Brief Managing Editor Bloomberg News Managing Editor Marketing & Partnership Director A period of global dollar strength and de facto leader Aung San Suu Kyi after a "A floating currency is exactly what Myanmar's tradePaul Smithdeficit are among the Linusprolonged Chua period of military rule.Courtney Martens Myanmar needs," he said, adding an reasons for [email protected] kyat's swoon, U Win [email protected] Kyi's National League forcmartens3 @bloomberg.netinflation rate of about 9 percent is +1-212-617-2447 Thaw said in Economicsthe interview Asia Editorson Nov. 30. HanoiDemocracy Bureau Chief party in November last year another factor weighing on the kyat.

"If there areNathaniel restrictions E. Baker on some import Johnwon Boudreau the country's first open electionsReprints & Permissions "There'll be an impact on the Myanmar items, the [email protected] balance will be even," he [email protected] 1990. The government Loriis trying Husted to currency if the U.S. increases interest [email protected] said, adding officialsColin Simpsonshould scrutinize the SE liberalizeAsia Economy the Team economy Lead and pursuing rates in December," U Win Thaw said. +1-717-505-9701 x2204 purchase of [email protected] items such as foreign Nasreenreforms Seria such as deepening the bond "The kyat will depreciateInterested in learning again more if they about do."

[email protected]. Advertising — Withthe assistanceBloomberg terminal? from Sunil Request Jagtiani. a cars. "If the demandGraphic Designis reduced, there will Lucy Rosen free demo here. Pekka Aalto BI Asean Economist [email protected] © 2016 Bloomberg LP. [email protected] Tamara Henderson +1-212-617-6759 All rights reserved. This newsletter [email protected] and its contents may not be forwarded or redistributed without the prior consent of Bloomberg. Please contact our reprints group listed left for more information. Big Picture

Q&A 8 Special Edition Asean’s Frontier Dec. 8, Economies2016 8

Q&A

Few Options for Investors Seeking Access to Myanmar's Nascent Securities Markets

Krishna Ramachandra and Rory Lang, Duane Morris & Selvam LLP Foreign direct investment in Myanmar is increasing, but financial markets remain off-limits. Yangon Stock Exchange now up and running for local investors. The law firm advises corporations on investment, business and regulatory processes in Myanmar through its Yangon office.

Q: What options are there right now mandatory for operating a business in Q: Any idea on how Myanmar's for foreigners to invest in Myanmar? Myanmar, but companies with MIC bankruptcy law is structured now and A: We are seeing increasing foreign Permits are entitled to various tax how this might change? direct investment in the following sectors: holidays, long term leasing rights and A: Presently, there are no designated aviation, banking, construction services investment protection incentives provided specific bankruptcy courts per se in companies, fast- food franchising, power, for in the FIL. to operate in Myanmar. existence in Myanmar. Laws relating food and beverage manufacturing, specifically to bankruptcy proceedings are mining, oil and gas, real estate, Q: What about real estate investing? also generally lacking and Myanmar law hospitality, tourism and A: Foreigners and foreign companies are does not provide much guidance on the telecommunications. These sectors are not permitted to own land or enter into a issue of bankruptcy directly. Instead generally “open” for foreign investors but long term lease agreement. insolvency proceedings against require their business vehicle to be companies or individuals are a structured accordingly and for the client Q: What do you know about Yangon's mechanism that is used. As a general to be aware of the risks going in. That’s nascent stock exchange? rule, the secured assets of an insolvent where we come in. Some private funds A: We were fortunate enough to advise borrower will be protected from the and institutional investors are funding this First Myanmar Investment Co. Ltd. on its general creditors of the borrower and wave of investment but most of the direct inaugural listing on the Yangon Stock subject to the payment of certain investment into Myanmar is coming Exchange, which took place on March preferential claims (such as debts to the through special purpose vehicles primarily 25. This was historic and it was the first government, employee, labor and pension setup in Singapore and private investors listing of its kind on the YSX. In FMI’s claims), which may be enforced outside of based in China, Thailand, and India. and our view the listing was a any insolvency proceedings. Generally, all Presently, only Myanmar citizens and tremendous success. Critically, the case law is in Myanmar language and not Myanmar companies are permitted to own capital market fund raising exercises are readily accessible. Precedence is also not shares in Myanmar companies. A foreign still restricted to domestic investors. This necessarily followed by Myanmar courts. investor can establish and register a maintains the perceived artificial bubble This year the Myanmar Union Parliament limited company as 100-percent foreign‐ that exists in terms of whether the adopted the new 2016 Arbitration Act. owned, however there are limitations and disclosure and investment parameters This provides a domestic legal restrictions to this general rule. For would cut it with a more discerning framework to fully implement and comply instance, certain business sectors, such international investor base. with the New York Convention on the as import/export activities are reserved for Recognition and Enforcement of Foreign local Myanmar citizens. A foreign investor Q: So foreigners can't own shares, Arbitral Awards of 1958, which Myanmar has a number of options for structuring a then? signed and ratified in 2013. The 2016 business entity in Myanmar based on the A: Foreigners and foreign companies Arbitration Act, which is perceived as a kind of business activity to be carried out. presently do not have access to the positive step toward encouraging foreign They generally require registration under Yangon Stock Exchange. The YSX is investment in Myanmar, replaced the Myanmar Companies Act (MCA) only open to Myanmar citizens and Myanmar’s Arbitration Act of 1944, which through the Directorate of Investment companies. There are also several other laid out a framework for domestic and Company Administration (DICA) and barriers that may prevent capital market arbitration but not international in some cases with the Myanmar development in Myanmar being a arbitration. Despite the passage of the Investment Commission (MIC) under the success. Foreign investors should be 2016 Arbitration Act, however, additional Foreign Investment Law (FIL). aware that the YSX is still in infancy and steps still need to occur for a smooth A foreign investor may want to consider presently there are several hurdles that enforcement of international arbitration obtaining an MIC Permit, which would must still be overcome. These awards, such as Myanmar courts allow a foreign investor to benefit from inadequacies may likely slow the updating and/or introducing new rules and certain investment incentives available entrance of domestic and foreign procedures and training judges about the under the FIL. An MIC Permit is not institutional and corporate investors. process of enforcing such awards. Bloomberg Briefs Special Special Edition Edition Dec. Dec. 8, 8, 2016 2016 29

Introduction

Bloomberg Briefs: Asean's CLMV Frontier

Bloomberg Brief Managing Editor Bloomberg News Managing Editor Marketing & Partnership Director

Paul Smith Linus Chua Courtney Martens [email protected] [email protected] [email protected] +1-212-617-2447 Economics Asia Editors Hanoi Bureau Chief

[email protected] Advertising the Bloomberg terminal? Request a Graphic Design Lucy Rosen free demo here. Pekka Aalto BI Asean Economist [email protected] © 2016 Bloomberg LP. [email protected] Tamara Henderson +1-212-617-6759 All rights reserved. This newsletter [email protected] and its contents may not be forwarded or redistributed without the prior consent of Bloomberg. Please contact our reprints group listed left for more information. Big Picture 10 Special Edition Asean’s Frontier Dec. 8, Economies2016 10

Vietnam Economy Bloomberg Briefs Special Special Edition Edition Dec. Dec. 8, 8, 2016 2016 11112

VietnamIntroduction Economy By Tamara Henderson, Bloomberg Intelligence Economist Asean's frontier economies Cambodia, Laos, Myanmar and Vietnam are among the Inside world's fastest growing. These are the region's low income economies, each at a Big Picture The TPP differentIs Changing stage of transformation the Economy, but all following No an export-l Mattered growth What strategy. Trump This DoesAsean's frontier economies are being By Nguyen Kieumakes Giang, them Bloomberg vulnerable News in the short-term to the particularly challenging external transformed through trade with environment. As Donald Trump prepares to kill the Vietnam's Exports of Phones and PartsChina: Have page 3 Soared Trans-Pacific Partnership,Low labor costs the have 12-nation attracted foreign direct investment, which spurred the increase in export shares for CLMV countries. This is in contrast with a decline in exports as a Factsheets trade pact is helpingshare of toGDP spur for theChina biggest and most of Asean over the last decade. Exports amount to overhaul of Vietnam's economy in Cambodia: page 4 nearly 90 percent of Vietnam's economy compared with one-third in 1995 and about two- Laos: page 5 decades. thirds a decade ago. Exports are almost 70 percent of Cambodia's GDP, more than The Communisttwice thegovernment share in 1995, in Hanoi and 35 percent of Laos's economy compared with 22 percent Myanmar plans to pushfor ahead China. with more than 30 Factsheet: page 6 separate piecesOpen of legislation economies to are comply more sensitive to external shocks. Asean's frontier economies with the tradeare deal, even including more vulnerable rules on because CLMV exports and imports tend to be concentrated The country's central bank braces for labor, business,in a foreignsmall number trade, of and products small- and markets. The bulk of Cambodia's exports are a deeper slide in the currency: page 7 garments, with the former French colony relying on China, Thailand and Vietnam for and-medium enterprises. Since a new more than 60 percent of the inputs for garment production, according to the IMF. Q&A: page 8 Constitution wasLaos adopted and Myanmar in 2013, primarily export commodities. Nearly 65 percent of Laos' exports Vietnam's lawmakers have passed more were shipped to Thailand and China in 2015, while the same two countries accounted Vietnam than 100 laws — a scale of change for 80 percent of imports. China and Thailand also account for the majority of Factsheet: page 10 unseen sinceMyanmar's the nation exports introduced and imports. the The exception is Vietnam, which exports a more market-orienteddiverse "doi range moi" ofreforms goods, inincluding the commodities, garments and electronics. Like Hanoi is pushing ahead with trade 1980s. Cambodia, most of Vietnam's production is destined for the advanced economies. agreements: page 11 "We will continueWith thecarrying external out environment what appearing increasingly challenging, slower growth in we've plannedCLMV to do," in 2017 Nguyen is likely. Duc A Kien, further slowdownthe construction in China would of weigh$22 million on the factory region's to will stillFormer have refugees to reform," return Pham to found said. "The exports, especially Laos and Myanmar which are heavily reliant on China's commodity deputy head of the Vietnam National prepare for the expected rise in foreign tradestartups: pact is reallypage 12useful for the demand for investment goods. Cambodia and Vietnam are better-suited to benefit from medicines entering Vietnam if TPP came government and for Vietnamese Assembly's economicChina's rebalancing committee, toward said consumption in as they export a larger share of consumer an interview in Hanoi last month. "It's the into effect. Other companies in export businessBI Insights to know what are the steps they goods that will benefit. All of CLMV will benefit from a larger influx of Chinese tourists. Vietnamese auto sales rise as Laos technologies and corporate governance industries such as textiles and garment, will need to take to really become part of U.S. President-elect Donald Trump's threat of a trade war with China has scope to and Myanmar increase cement footwear, seafood, wood furniture and the global economy." that we need diminishto improve. risk appetite It's crucial." and stall private investment. But China's response to the Trump production capacities: page 13 Vietnam hasAdministration long been seen may beas toone deepen of investmentagricultural links inproducts the region. have Further also FDImade inflows Last month, the ruling Communist the biggest potentialcould help winners these countries from the diversify theirinvestments, export bases according and integrate to Nghia them intoTrong the global PartyQ&A adopted a resolution on TPP, with increasedsupply chain, market following access Vietnam's for example.Pham, deputy director general of the InternationalThomas Hugger,Economic chief Integration executive that everything fromThe clothing increasingly to electronics challenging to externalDepartment environment of may Laws have at aVietnam's silver lining for CLMV if confirmedofficer, Vietnam's Asia Frontier commitment Capital: page to 14 the commitment to reforms is strengthened as a result. The impetus behind Asean's footwear. The deal also stood to National Assembly Office. further opening up the economy. The building of an economic community was to reduce the vulnerability of its members to "This preparation contributes to Finance Ministry has recommended complement aexternal growing shocks. strategic There has never been more of an incentive to reduce this sensitivity. relationship between the U.S. and improve their competitiveness even if the moves to support start-up companies, Vietnam, which opposes China's TPP is not taking effect," Nghia said in an including cutting the corporate income- territorial claimsBloomberg in the South Briefs: China Sea. Asean'se-mail. CLMV "It Frontieris reasonable to conclude that tax rate for small and medium-sized

Bloomberg Brief Managing Editor Bloomberg News Managing Editor Marketing & Partnership Director Yet all isn't lost: The TPP also helped the period of 2011-2016 is the biggest enterprises to as low as 15 percent from serve as an impetusPaul Smith for long-needed Linusreforms Chua in Vietnam since Doi CourtneyMoi. TPP Martens is the current 20 percent. structural [email protected] While Vietnam first [email protected] of the important actors forcmartens3 this @bloomberg.net +1-212-617-2447 announced plansEconomics to reform Asia Editors its state- Hanoiprocess." Bureau Chief China Pact owned enterprisesNathaniel in E. 2011, Baker progress has John Boudreau Reprints & Permissions been slow, [email protected] the stakes sold often too [email protected] Lori Husted China is now pushing a separate 16- Reform Momentum [email protected] small and manyColin companies Simpson pulling back SE Asia Economy Team Lead nation agreement called the Regional +1-717-505-9701 x2204 on plans to [email protected] on exchanges. NasreenNghia Seria said TPP has also helped raise ComprehensiveInterested Economic in learning Partnership. more about

[email protected] among key stakeholdersAdvertising That would includethe Bloomberg Vietnam terminal? along Request with a Graphic Design including state officials, employers,Lucy Rosen trade the rest of the free10-member demo here. Association of 'Good Preparation'Pekka Aalto BI Asean Economist unions, workers and the [email protected] public Southeast Asian© 2016 Nations, Bloomberg as LP.well as [email protected] Tamara Henderson "We wanted to have good preparation, on the implications of free trade.+1-212-617-6759 Japan, South AllKorea, rights reserved.Australia, This New newsletter [email protected] with or without TPP," said Vu Thi Thuan, Vietnamese business leaders also Zealand and India.and its contents may not be chairwoman of Traphaco JSC, Vietnam's appear keen to maintain the reform Prime Ministerforwarded Nguyen or redistributed Xuan Phuc without said second-largest listed pharmaceutical momentum generated by TPP. in October thatthe Vietnam prior consent would of Bloomberg. pursue company. "We still have to make sure we Alan Pham, chief economist at greater internationalPlease contact integration our reprints through group listed left for more information. are able to compete with foreign rivals Vietnam's largest fund manager 12 other free trade agreements it had because Vietnam is more and more VinaCapital Group, says TPP is a kind of already signed even if the TPP falls integrating intoBig the globalPicture economy." roadmap for Vietnam as it integrates through. Thuan said Traphaco has spent heavily further into the global economy. — With assistance from Nguyen Dieu Tu Uyen. to increase its competitiveness, including "Whether we have TPP or not, Vietnam

Vietnam Startups 12 Special Edition Asean’s Frontier Dec. 8, Economies2016 12

Vietnam Startups

Refugees Who Fled Communists Lured Back By Startup Dreams By John Boudreau, Bloomberg News During Dang Van Tran's numerous attempts to flee Vietnam at the age of seven he was shot at twice, nearly drowned at sea and stranded on an island. Now 40 years later, he is back in the communist country doing something unthinkable when he finally escaped with 150 others on a fishing trawler: running a startup in Saigon called Butterfly Hub, which helps businesses make data-based decisions in the beauty and fashion world. Tran is part of a wave of overseas Vietnamese defying personal traumas and family objections to invest in a country they once risked all to escape. That includes his father, who lost everything to the communists in 1975 before seeking a new life for his family in the U.S. On his return, Tran found a country more enamored with iPhones than Karl Marx and with a burgeoning tech startup scene. "It blew my mind," he said. "So I decided to stay." The aftermath of the communist victory had a devastating impact on many of its citizens, resulting in a massive displacement of humanity. More than a million were put into re- education camps, where many died, according to the United Nations High Commissioner for Refugees. By 2010, more than Binh Tran, co-founder of Klout. 1.5 million Vietnamese had resettled in the U.S. alone, while others fled to Australia, Canada and Europe. accelerated to 6.4 percent during the third quarter, from 5.8 "For many, including most of my family, those memories are percent in the previous three months, the General Statistics painful and can be recalled as if they happened yesterday," said Office said Sept. 29, behind only the Philippines in Southeast Binh Tran, co-founder of San Francisco-based Klout Inc. who Asia. returned part-time to Vietnam as a partner at Silicon Valley's 500 More than half of the country's population are online and the Startups, which started a $10 million fund this year. number of mobile phones exceeds the number of citizens, Binh The nation they have returned to presents a much different Tran said. Flappy Bird, the 2014 gaming phenomenon developed face to the one they fled. The government is actively trying to in Vietnam, inspired a generation of new tech entrepreneurs. lure investment in high-technology sectors, education has "We are looking at Vietnam improved and so have living standards. without the painful scars of Overseas Vietnamese, known as Viet Kieu, are now a driving war and simply see an force in the economy, sending $13.2 billion in remittances to the incredible opportunity for country last year, a 900 percent increase since 2000, according growth and prosperity," said to the World Bank. Binh Tran, the 500 Startups "Time heals old wounds," said Than Trong Phuc, who fled on a partner, who left when he was helicopter from the U.S. embassy and returned as Vietnam one-and-a-half years old. country director for Intel Corp., playing a role in the decision of "The education system has a the world's largest semiconductor company to invest $1 billion in strong foundation in math and Vietnam. science, building blocks for Taiwan, China, India and other countries have for decades computer science. And benefited from former citizens returning from tech centers such Vietnam is in love with as Silicon Valley. Now Vietnam is trying to catch up and is startups — it seems like every seeking even more investment. other day there is a hackathon "Frankly, investments from Viet Kieu do not meet the country's or a pitch competition." needs," said Le Hoai Quoc, head of the management board of Fossil Group Inc., which sells Saigon Hi-Tech Park. A lack of trust in the government has 30 million watches annually, deterred some from investing, he added. last year acquired Misfit The government offers Viet Kieu incentives, such as visas for Wearables Corp. for $260 up to five years and duty-free imports of used cars. A $40 million million, gaining the wearable tech park dubbed Saigon Silicon City is being built in Ho Chi device maker co-founded by Minh City to attract Viet Kieu with tax breaks and subsidized rent. John Sculley and Vietnamese- Than Trong Phuc The county's youthful demographics and growing middle class American Sonny Vu. Vu are more of a lure. Vietnam's annual economic growth returned to Vietnam after Continued on next page… Bloomberg Briefs Special Special Edition Edition Dec. Dec. 8, 8, 2016 2016 13132

Introduction Vietnam Startups… By Tamara Henderson, Bloomberg Intelligence Economist Continued from Asean'sprevious frontierpage economies Cambodia, Laos, Myanmar and Vietnam are among the Inside world's fastest growing. These are the region's low income economies, each at a Big Picture leaving as a childdifferent to overseestage of transformationthe company's but 160-member all following an Ho export-l Chi ed growthattracted strategy. successful This tech Asean's frontier economies are being Minh City softwaremakes team.them vulnerable in the short-term to the particularly challengingentrepreneurs external because of a transformed through trade with "These peopleenvironment. are skilled at world-class levels," Vu said. dearth of early-stage startup China: page 3 Esther Nguyen,Low who labor grew costs up have in Siliconattracted Valley, foreign returned direct investment, to whichfunding. spurred Thethe increase talent pool, while in export shares for CLMV countries. This is in contrast with a decline in exports as a Vietnam eight years ago to found digital entertainment website eager, hard-working and low-Factsheets share of GDP for China and most of Asean over the last decade. Exports amount to Pops Worldwide, which signed a partnership with Turner cost, lack some of the skills Cambodia: page 4 nearly 90 percent of Vietnam's economy compared with one-third in 1995 and about two- Laos: page 5 Broadcastingthirds Systems a decade Inc. thisago. year.Exports are almost 70 percent of Cambodia'founds GDP, in moreSilicon than Valley, said Still, Vietnam remains far behind other regions that have Ho Chi Minh City tech twice the share in 1995, and 35 percent of Laos's economy compared with 22 percent Myanmar for China. entrepreneur Dang Van Tran.Factsheet: page 6 Open economies are more sensitive to external shocks. Asean'sAnd frontier the economieslegacy of war is an are even more vulnerable because CLMV exports and imports tendobstacle to be concentratedfor many Viet Kieu, The country's central bank braces for in a small number of products and markets. The bulk of Cambodiasaid's exportsDon Phan, are 33, a Yale a deeper slide in the currency: page 7 garments, with the former French colony relying on China, ThailandUniversity and Vietnam graduate for who more than 60 percent of the inputs for garment production, according to the IMF. founded online baby productsQ&A: Dang page Van 8 Tran Laos and Myanmar primarily export commodities. Nearly 65 percent of Laos' exports were shipped to Thailand and China in 2015, while the same twostore countries Taembe.com accounted in Ho Chi Minh City in 2013. Vietnam for 80 percent of imports. China and Thailand also account for the majority of Factsheet: page 10 Myanmar's exports and imports. The exception is Vietnam, which "Manyexports ofa moremy peers have said they could never do business in diverse range of goods, including commodities, garments and elVietnamectronics. because Like of what theirHanoi parents is pushing went aheadthrough," with hetrade said. Cambodia, most of Vietnam's production is destined for the advancedAfter economies. the war, Dang Van Tran'sagreements: father, pagea former 11 military officer, With the external environment appearing increasingly challenginwasg, slowerimprisoned growth as in "a traitor" and his mother was sent to a re- CLMV in 2017 is likely. A further slowdown in China would weigheducation on the region's camp for being "a Formercapitalist." refugees Putting return the to past found behin d exports, especially Laos and Myanmar which are heavily reliant him,on China's he sleeps commodity on a cot in anstartups: office outfitted page 12 with artificial grass demand for investment goods. Cambodia and Vietnam are better-suited to benefit from carpet and chairs designed like hands. China's rebalancing toward consumption as they export a larger share of consumer BI Insights goods that will benefit. All of CLMV will benefit from a larger influx "I'mof Chinese a technology tourists. guy," the entrepreneur said. "I want to help create a startup culture. I wantVietnamese to disrupt auto Vietnam." sales rise as Laos Sonny Vu U.S. President-elect Donald Trump's threat of a trade war with China has scope to and Myanmar increase cement — With assistance from Luu Van Dat and Nguyen Dieu Tu Uyen. diminish risk appetite and stall private investment. But China's response to the Trump production capacities: page 13 Administration may be to deepen investment links in the region. Further FDI inflows could help these countries diversify their export bases and integrate them into the global Q&A supply chain, following Vietnam's example. Thomas Hugger, chief executive The increasingly challenging external environment may have a silver lining for CLMV if officer, Asia Frontier Capital: page 14 the commitment to reforms is strengthened as a result. The impetus behind Asean's building of an economic community was to reduce the vulnerability of its members to external shocks. There has never been more of an incentive to reduce this sensitivity.

Bloomberg Briefs: Asean's CLMV Frontier

Bloomberg Brief Managing Editor Bloomberg News Managing Editor Marketing & Partnership Director

Paul Smith Linus Chua Courtney Martens [email protected] [email protected] [email protected] +1-212-617-2447 Economics Asia Editors Hanoi Bureau Chief

BI Insights 14 Special Edition Asean’s Frontier Dec. 8, Economies2016 14

BI Insights

Vietnam Auto Sales Charge Ahead Vietnam is buying more cars on higher confidence in economic growth. The country's sales of passenger vehicles jumped 44 percent year-over-year in October, leading the 26 percent increase in overall auto sales. Commercial vehicle sales gained just 6.5 percent. Passenger vehicle sales across all segments surged, including sedans and SUVs. Commercial light truck and bus sales growth slowed in October after rising 17 percent in the prior three months. Total auto sales are up 30 percent in the first 10 months of this year. — Steve Man and Ji Shi

Laos Faces Possible Cement Glut Laos may face cement oversupply next year, with capacity jumping to more than 10 million tons in 2017 from 4 million in 2016. That considerably outpaces the industry's expected 10 percent demand growth next year, to 3.3 million tons. Oversupply could reduce cement prices from $70-80 a ton, still higher than China's $46 average. China is Laos's largest investor, and its presence there may boost Chinese cement makers' forays abroad. The Laotian government has approved capacity for an additional 15 million tons a year by 2025. — Michelle Leung and Yi Zhu

Myanmar May Become Net Cement Exporter By 2018 Myanmar's plans to rapidly add cement capacity may turn it into a net exporting country for the material by 2018. Foreign cement producers including Anhui Conch, Tangshan Jidong, Siam Cement and a local supplier plan to add 16 million tons of capacity, for a total of about 19 million tons by the end of 2021. Myanmar's current capacity is 3.1 million tons. The expansion may push down local prices, which are about 40 percent higher than the average in China. — Michelle Leung and Yi Zhu

Q&A Bloomberg Briefs Special Special Edition Edition Dec. Dec. 8, 8, 2016 2016 15152

Q&A Introduction By Tamara Henderson, Bloomberg Intelligence Economist AccessingAsean's CLMV frontier Economieseconomies Cambodia, Through Laos, Myanmar Stock and Vietnam Listings are among in the Hong Kong,Inside Australia world's fastest growing. These are the region's low income economies, each at a Big Picture different stage of transformation but all following an export-led growth strategy. This Asean's frontier economies are being makes them vulnerable in the short-term to the particularly challenging external Thomas Hugger, chief executive officer, Asia Frontier Capitaltransformed through trade with environment. China: page 3 LowManages labor costs $18 have million attracted Asia foreign Frontier direct Fund, investment, which invests which spurred in Cambod the increaseia, Laos, Myanmar and Vietnam and other markets in export shares for CLMV countries. This is in contrast with a decline in exports as a Factsheets Fund claims cumulative returns of 60.23 percent since its inception in March 2012, compared with 9.58 percent for share of GDP for China and most of Asean over the last decade. Exports amount to Cambodia: page 4 nearlythe 90MSCI percent Frontier of Vietnam's Markets economy Asia Index compared over thewith same one-third period in 1995 and about two- Laos: page 5 thirdsInterviewed a decade by ago. Colin Exports Simpson, are Bloomberg almost 70 Briefs percent editor, of Cambodia'on Nov 23. sComments GDP, more have than been edited and condensed for clarity. twice the share in 1995, and 35 percent of Laos's economy compared with 22 percent Myanmar for China. Factsheet: page 6 Q: What's the Openappeal economies of the CLMV are more sensitiveAustralia. to external With shocks. Myanmar, Asean's wefrontier have economies Q: What sort of investor buys into your markets to investors?are even more vulnerable because CLMVinvested exports in twoand importsprivate tendequity to befunds, concentrated one fund?The country's central bank braces for A: All these marketsin a small have number very of youngproducts and markets.listed Thein London bulk of Cambodiaand the other's exports listed are in A: Wea deeperhave about slide in115 the investors. currency: page About 7 garments, with the former French colony relying on China, Thailand and Vietnam for populations, and they have fast-growing Singapore, and we've invested in another 30 percent are from the U.S., the rest more than 60 percent of the inputs for garment production, according to the IMF. Q&A: page 8 economies — theLaos GDP and Myanmargrowth is primarily much export twocommodities. companies Nearly listed 65 inpercen Singaporet of Laos' that exports mainly from Switzerland and the U.K. higher compared with other Asian have business exposure in Myanmar. Some are expatriates living here in Asia were shipped to Thailand and China in 2015, while the same two countries accounted Vietnam emerging markets, with the exception of — in Hong Kong, Singapore, Bangkok for 80 percent of imports. China and Thailand also account for the majority of Factsheet: page 10 China and India.Myanmar's The GDP exports levels and per imports. The exceptionQ: What's is Vietnam,it like to which operate exports in the a more and Kuala Lumpur, and then we have capita are verydiverse low so range they of are goods, still includingin the commodities,smaller markets? garments and electronics. Like someHanoi family is officespushing and ahead four with small trade fund- sweet spot whereCambodia, they're most growing. of Vietnam's A lot productionA: Foreignersis destined for are the allowed advanced to investeconomies. in of-funds.agreements: We hope page that 11 now we're of people will beWith able the to external move fromenvironment very, appearingCambodia increasingly and Laos. challengin In Laosg, slower there growth are in approaching a five-year track record we'll very poor to veryCLMV low in 2017basic is income, likely. A andfurther slowdownsome in restrictions China would on weigh the currency,on the region's but it's get someFormer bigger refugees institutional return to investorsfound exports, especially Laos and Myanmar which are heavily reliant on China's commodity those already in the low-income bracket pretty OK, if you're investing in the stock interestedstartups: in thepage fund. 12 demand for investment goods. Cambodia and Vietnam are better-suited to benefit from will be able toChina's move rebalancingto middle income. toward consumption market as they you export can movea larger out share the ofcurrency consumer So there'll be a big growing population without a problem. It's a different story if Q: WhatBI Insights are the biggest risks in goods that will benefit. All of CLMV will benefit from a larger influx of Chinese tourists. Vietnamese auto sales rise as Laos that will be able to consume more. That's you invest in, let's say, private equity, frontier markets? U.S. President-elect Donald Trump's threat of a trade war with China has scope to and Myanmar increase cement where we're reallydiminish focused, risk appetite we like and to stall privatethen investment. you have But biggerChina's issues response regarding to the Trump A: Regulatoryproduction risk capacities: and changes page 13 of policy. invest in companiesAdministration that can may benefit be to deepen from investmentinvestment, links in you the need region. to Further have approval FDI inflows There can be a lack of regulation, or the consumer.could help these countries diversify theirfrom export the government.bases and integrate Cambodia them intois very the global countriesQ&A that are completely oversupply chain, following Vietnam's example.open, you can more or less invest in regulatedThomas — VietnamHugger, chief is quite executive regulated. Q: How do youThe see increasingly the potential challenging of externaleverything. environment The may only have big a exceptionsilver lining isfor CLMV if officer, Asia Frontier Capital: page 14 the commitment to reforms is strengthened as a result. The impetus behind Asean's these markets? land, but they are relaxing that a little bit Q: Vietnam, with more than 1,000 building of an economic community was to reduce the vulnerability of its members to A: If you investexternal today shocks. in Vietnam There it's has like never beennow. more Myanmar of an incentive has three to reduce stocks, this butsensitivity. stocks, is way ahead of the other investing in Thailand or Malaysia 50 foreigners are not allowed to invest in the three — can they ever catch up? years ago, or China 25 years ago, it's stock market right now. A: Vietnam is maybe 15 years ahead of very early. TheBloomberg economies will Briefs: be Asean's CLMV Frontier Cambodia. Cambodia is catching up fast,

Bloomberg Brief Managing Editor Bloomberg News Managing Editor Marketing & Partnership Director growing, so naturally the stocks listed Q: Do you think Myanmar will open up then behind it is Laos and Myanmar is there should Paulgrow, Smith along with the stock Linusto Chuaoverseas investors? Courtney Martens obviously just opening up. It would be a markets. So [email protected] of having five listed [email protected]: There's no doubt about it, cmartens3but the @bloomberg.netmiracle if one of these countries could +1-212-617-2447 companies inEconomics Laos, hopefully Asia Editors there will Hanoiquestion Bureau is,Chief is it in one year, three years, move ahead of Vietnam, but you never be 30 or 40 inNathaniel five to E.10 Baker years. Johnfive Boudreau years? Like a lot of small Reprintscountries, & Permissions know — the Philippines was ahead of [email protected] [email protected]'re worried about foreignersLori comingHusted South Korea 50 years ago, and now it's a [email protected] Q: There's onlyColin aSimpson handful of SE inAsia and Economy just buying Team Lead up the whole country. different story. +1-717-505-9701 x2204 companies [email protected] in the stock Nasreen Seria Interested in learning more about

[email protected] Advertising the Bloomberg terminal? Request a exchanges inGraphic Cambodia, Design Laos and Lucy Rosen free demo here. Myanmar. HowPekka do Aalto you get round the At A Glance BI Asean Economist [email protected] lack of [email protected] choice? © 2016 Bloomberg LP. Tamara Henderson +1-212-617-6759 A: We also invest in companies that are CAREER : Former managing partner, CFO and COO at LeopardAll rights Capital; reserved. pre Thisviously newsletter a [email protected] listed outside the country but have at least managing director and head of portfolio management at LGTand Bank, its contents Hong may Kong. not be 50 percent of their exposure in one of AGE: 54. HOMETOWN: Zurich. FAVORITE FOOD: Curry —forwarded "Thai or or Malaysian redistributed withoutor the prior consent of Bloomberg. these economies. For example, the first whatever." DRINK: Craft beer. Please contact our reprints group company we invested in with this fund FAVORITE PLACE: Luang Prabang, Laos — "It's completelylisted laid left back, for more if you information. went was NagaCorp Ltd., a casino operator back to the Asia of 70 years ago it's still there, it's preserved." from Phnom Penh that is listed in Hong FAVORITE FILM: Back to the Future. SONG: Queen's "We Are The Champions". Kong. Right nowBig we Picture are invested in Emerald Resources NL, a gold explorer active in Cambodia that is listed in ©2016 Bloomberg LP bloombergbriefs.com