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  • Chinese language shopper sentiment rebounds in Might

    Chinese language shopper sentiment rebounds in Might

    Chinese language shopper sentiment rebounded in Might with favorable inventory market performances boosted shopper sentiment.

    The Bankcard Consumption Confidence Index edged up zero.32 factors from a month in the past to 83.99, China UnionPay stated in a report at present.

    Expenditure at eating places and eateries have been up four.9 % from a month in the past whereas spending measurement at malls and purchasing facilities rose 13.75 %.

    Shoppers’ sentiment was in a secure situation with each the inventory market and property sector rebounding in current months and is predicted to select up additional with Buying Managers Index and different macroeconomic knowledge suggesting enchancment.

    The warming up of the property market in current months additionally pushed up house home equipment gross sales, which rose four.09 % in Might from a month in the past.

    Spending at main home vacationer locations and scenic spots surged 43.four % whereas spending worth at fuel stations additionally rose 9.6 % as commuting and touring picked up prior to now month.

    Current worth cuts by international trend homes resembling Burberry and Gucci of their home retailers pushed up luxurious luggage and leather-based gross sales by 32.9 %.

  • AirAsia plans IPO for Indonesia and Philippines units

    AirAsia plans IPO for Indonesia and Philippines units

    AirAsia Bhd announced on Wednesday a corporate exercise which includes potential new equity for Indonesia AirAsia (IAA) and Philippines AirAsia (PAA) via a convertible bond issuance.

    AirAsia pointed out the company has a solid footing, strong balance sheet, rich in assets and good business outlook, as it unveiled new equity plans for IAA and PAA as it sought to reduce AirAsia’s inter-company loans.

    The first step was to raising share capital to about US$100mil each for IAA and PAA from the present level of US$13.81mil and US$13.28mil respectively.

    “The management is now in the final stages of discussions with the local partners to raise share capital to around US$100mil for IAA and PAA from the present level of US$13.81mil and US$13.28mil respectively.

    “Part of the cash raised will be used to pay down AirAsia Bhd’s interco,” it said.

    Under the second step under the pre-IPO, it said plans were to raise a minimum of US$100mil from new investor(s).

    AirAsia said it is finalising the structure of the Pre-IPO exercise which is targeted to take place in the near term.

    “Through this exercise, there will be new investor(s) that will come in for both IAA and PAA. The new investor(s) will inject at least US$100mil for each associate by subscribing to convertible bonds (CB) issued by IAA and PAA respectively.

    “The CB will have a low coupon with a two-year maturity period. The CB can be converted at a rate to be determined, tentatively discounted from the valuation of the companies in 2017. As investor(s) exercise the CB in 2017, AAB will match by capitalising our debt to ensure our shareholding remains at 49% in IAA and 40% in PAA.

    “Part of the cash raised in the CB subscription will be used to pay down AAB’s interco, while the remainder will be kept in the business for working capital.

    Under the third step, the IPO will have a valuation of about US$700mil for IAA and US$600mil for PAA

    The target to IPO both associates will be in 2017, with valuation of approximately US$700mil for IAA and US$600mil for PAA.

    “The company targets to float 20% of the shares raising minimum of US$150mil. At IPO all shareholders will be diluted proportionately. Part of the IPO proceeds will be used to pay down AAB’s interco,” it said.

  • Authorities turns down FDI in retail e-commerce

    Authorities turns down FDI in retail e-commerce

    The Union authorities won’t ease overseas direct funding (FDI) guidelines for digital commerce.

    Minister of State for Commerce and Business Nirmala Sitharaman final month met executives of Flipkart andSnapdeal and representatives from the Confederation of Indian Business (CII) and the Federation of Indian Chambers of Commerce and Business (Ficci) to evaluate the impression of FDIon Indian e-commerce corporations.

    The assembly spawned hypothesis that the Nationwide Democratic Alliance (NDA) authorities may permit overseas e-commerce corporations to function in India. New Delhi can also be underneath strain from Washington and Tokyo to chill out its FDI coverage for e-commerce.

    “B2B (business-to-business) is one of the best coverage. We’ll simply not permit B2C (business-to-consumer). India strongly believes that B2C is towards the buyer’s curiosity. If China and Japan haven’t opened up, why ought to we?” a prime official with the division of commercial coverage and promotion (DIPP) informed Enterprise Normal.

    Extra conferences on playing cards
    Throughout Sitharaman’s assembly a number of the factors that emerged have been permitting FDI in e-commerce would face assault from small retailers and the market can be flooded with imported items. Sitharaman deliberate to carry extra conferences on this problem, the official stated.

    The NDA authorities needs the ‘Make in India’ marketing campaign to achieve success earlier than opening up B2C e-commerce to overseas retailers. In addition to, Indian business just isn’t enthusiastic concerning the transfer.

    In a illustration to the DIPP, the CII said overseas corporations must be allowed after Indian e-commerce gamers had acquired the power to tackle the competitors. The chamber sought safeguards for Indian corporations like native sourcing, privateness, security towards tax evasion and checking e-wastage.

    At current, 100 per cent FDI is allowed in business-to-business (B2B) e-commerce, whereas it’s banned within the business-to-consumer (B2C) phase. Apart from, there’s a 30 per cent native sourcing rule for overseas gamers.

    Market set off
    Giant Indian e-commerce corporations like Flipkart and Snapdeal have grown considerably since their inception in 2007 and 2010, respectively. International e-commerce giants like Amazon can function in India beneath the marketplace mannequin. In some instances, overseas gamers have tied up with native corporations to enter the Indian market.

    In response to a report by Technopak, the adoption of market fashions by e-tailers is fuelled principally by enterprise scalability and FDI coverage compliance.

  • Barry Callebaut inks first chocolate outsourcing agreement in Southeast Asia

    Barry Callebaut inks first chocolate outsourcing agreement in Southeast Asia

    Barry Callebaut and Indonesian food and beverage company GarudaFood Group have reached agreement on a long-term supply agreement under which Barry Callebaut will supply 10,000 tonnes of compound chocolate per year to GarudaFood’s biscuit facility in Gresik in the Province of East Java.

    Under terms of the agreement, which will begin the middle of next year, Barry Callebaut said it plans to increase the capacity “significantly” over the next three years and will take over some of the manufacturing equipment from GarudaFood and set up its operations in a new building on the premises of the GarudaFood biscuit plant in Gresik.

    The agreement also includes the cooperation between Barry Callebaut and GarudaFood in innovation. The two companies plan to bring together their R.&D. activities to develop new products that will support GarudaFood’s further growth in the Indonesian market.

    “I am truly excited about this partnership,” said Hardianto Atmadja, chief executive officer of GarudaFood. “I believe it will provide and delight our consumers with the best chocolate and products that meet global quality standards.”

    Founded in 1990, GarudaFood belongs to the Tudung Group, an investment holding company in Indonesia. GarudaFood manufactures and markets snacks, biscuits, confectionery products, dairy and beverages and employs about 18,000 people. The company also owns and operates an extensive distribution network throughout Indonesia covering 21 regions, 153 depots, 154 distribution partners and 360,000 outlets. GarudaFood operates 14 plants across Indonesia and India.

    “It is an honor for us that we were able to win GarudaFood as our first long-term outsourcing partner in Southeast Asia,” said Juergen Steinemann, c.e.o. of the Barry Callebaut Group. “This partnership marks our entry with chocolate and compound production in Indonesia, the world’s fourth largest country with a population of 250 million and impressive growth rates. Partnering with the GarudaFood Group not only allows us to team up with a leader in one of the most vibrant economies in Asia Pacific but also to gain a strategic foothold in an emerging market that offers further significant growth potential.”

  • Nutella row spotlights palm oil’s environmental destruction

    Nutella row spotlights palm oil’s environmental destruction

    France’s ecology minister, Ségolène Royal, caused a stir following her comments in an interview late on Monday on Canal+: “We have to replant a lot of trees because there is massive deforestation that also leads to global warming. We should stop eating Nutella, for example, because it’s made with palm oil.” She added that “Oil palms have replaced trees, and therefore caused considerable damage to the environment.” Ferrero, the Italian maker of Nutella, promptly issued a statement on Tuesday that it is committed to using 100% sustainably-sourced palm oil in its products. And rushing to the company’s defense, Italy’s environment minister Luca Galletti told Royal to “leave Italian products alone.”

    If Nutella’s environmental commitments are indeed fully accurate, it is a misguided target. Most palm oil is not sustainable, and the rising numbers of plantations in Indonesia and Malaysia (which account for 85% of global palm oil production) have destroyed vast areas of tropical rain forest. This habitat loss threatens the survival of endangered species including the Sumatran tiger, the orangutan, the Sumatran elephant, and the Javan rhino. And besides contributing to global climate change, the slash-and-burn method of clearing land also results in major localized air pollution.

    However, palm oil is a widely-used global commodity (complete with futures trading and spot markets), and about half of all supermarket products contain it, including many types of food and cosmetics. Oil palms are already among the most profitable cash crops for developing countries that can grow them.

    The U.S. has led the strong growth in demand for palm oil; those imports climbed 352% between 2002 and 2012, to about 1 million metric tons per year. And demand is likely to keep grow in the near future, due to recent top-down regulatory changes in the U.S., Indonesia, and Malaysia. On Tuesday the U.S. Food and Drug Administration ordered food manufacturers to stop using trans fats within three years, because their main ingredients–partially hydrogenated oils– “are not ‘generally recognized as safe’ … for use in human food.” Palm oil is commonly used as a substitute for trans fats, and indeed many food manufacturers and fast-food chains have already made the switch.

    Meanwhile, higher biodiesel targets are driving demand for palm oil. The U.S. Environmental Protection Agency said in May it would target a near 50% increase in the use of biomass-based diesel by 2017. Indonesia and Malaysia are also trying to raise their domestic use of palm oil in fuel, to both support the market as well as reduce expenditures on imported diesel. The Wall Street Journal reported that earlier this year, Indonesia introduced requirements to blend up to 15% of a palm oil feedstock in fuels by the end of 2015, with plans to later increase the ratio to 20%. And last week Malaysia’s government said it plans to increase the allowed blending of palm oil feedstock into biodiesel from 5% and 7% to as much as 10% by October. (However, weak crude oil prices will slow implementation of these goals, because palm oil is currently more expensive than fossil fuels.)

    That said, media attention and consumer action can make a real difference. Following a public pressure campaign, the major palm oil company Astra Agro Lestari announced earlier this month a moratorium on all forest clearance in Indonesia, effective immediately. And a recent study found that consumers would be prepared to pay between 15% and 56% extra for products containing palm oil if they knew that it would help to protect the natural habitats of threatened animals and plants in Indonesia and Africa, where palm plantations have spread rapidly over the past 20 years.

    Progress is still slow, but sustainably harvesting palm oil (for sale at a premium price) while conserving nearby tropical forests is looking a bit more likely.

  • Japan shopper confidence fell in Might for second straight month

    Japan shopper confidence fell in Might for second straight month

    Shopper confidence worsened in Might for the second straight month amid rising costs of products comparable to meals, knowledge confirmed Tuesday, prompting the federal government to downgrade its evaluation.

    The seasonally adjusted index of sentiment amongst households made up of two or extra individuals fell zero.1 factors from April to 41.four, the Cupboard Workplace stated.

    The federal government downgraded its primary evaluation of the index, saying the tempo of a pickup in shopper confidence is “turning into average.” Final month, the federal government stated shopper confidence was “choosing up.”

    The survey polls shoppers on the financial outlook for the approaching six months. A studying under 50 suggests pessimists outnumber optimists.

    Of the 4 elements, these for employment circumstances and the timing of latest sturdy items purchases declined 1.four factors to 47.2 and zero.1 factors to 39.6, respectively.

    In the meantime, shoppers’ view of their livelihoods improved zero.four factors to 38.eight, whereas their evaluation of revenue progress rose zero.5 factors to 39.eight, based on the Cupboard Workplace.

    Within the reporting month, 87.four % of households stated they anticipate shopper costs to rise within the yr forward, down from 89.2 % within the earlier month, the survey confirmed.

    The newest survey was carried out as native media reported a rise in costs of on a regular basis gadgets corresponding to chocolate and liquor, in line with a authorities official. Common gasoline costs additionally rose in Might from the earlier month, the official stated.

    The Cupboard Workplace survey, carried out on Might 15, coated 5,712 households, with legitimate responses acquired from 5,498, or 65.5 %.

  • Singaporean retailers thrive on on-line market

    Singaporean retailers thrive on on-line market

    A research by eBay exhibits that Singapore’s tech savvy retail exporters, who use the corporate’s on-line market place, promote to a mean 41 worldwide markets.

    eBay defines retail exporters as these sellers on its website who garner US$10,000 in gross sales to international clients (that’s consumers outdoors of Singapore).

    In accordance with an eBay spokesman, Singaporean retail exporters have been experiencing strong progress on the again of a revitalised US greenback. In South-east Asia, Singapore is ranked second when it comes to attain behind Thailand. Apparently, Singapore’s rating is 5 locations greater than US retail exporters.

    Jason Lee, director, eBay South-east Asia, famous that the US is the highest commerce hall for Singaporean retail exporters.

  • H&M to open first retailer in India this fall

    H&M to open first retailer in India this fall

    Swedish multinational retail clothes firm H&M, which is understood for providing style and high quality at the perfect worth in a sustainable approach, is all set to deliver its product vary to India by means of a flagship retailer within the capital.

    “This Fall, trend could have a model new tackle in India: From a world-class purchasing vacation spot to sustainable and high quality trend choices at one of the best worth, we’re excited to current the entire H&M expertise to our Indian clients,” Janne Einola, nation supervisor – India, H&M Hennes & Mauritz Retail Pvt. Ltd., stated in a press release.

    The 25,000 sq. ft. H&M retailer might be situated d within the Choose Citywalk mall in south Delhi’s Saket space.

    Providing style for ladies, males, youngsters and youngsters, the shop will current a wide array of newest developments, timeless classics and inspirations for patrons to create their private fashion.

    The H&M Group has over three,600 shops in 58 markets worldwide and sees the potential to open 50 shops in India over the subsequent few years.

  • Blaming China’s anti-graft measures hides issues in retail methods

    With a inhabitants of over 1.36 billion and with over 160 cities with a inhabitants of over a million, the alternatives that China presents retailers with are monumental. Subsequently it’s regarded by many as a precedence market.

    During the last 24 months, a variety of the world’s most famous manufacturers have introduced that they’re experiencing a troublesome time in China and are both scaling again their operations or closing their China enterprise.

    So why are these retailers struggling when others proceed to develop a worthwhile enterprise? Within the report, Nobody stated that it might be straightforward: Find out how to crack the China Retail Market, CR Retail’s Managing Director James Rogers, analyses retailer’s methods and behavior, identifies the important thing causes behind these failures.

    “Numerous retailers regularly blame the anti-graft measures for the slow-down, nevertheless these are solely partly accountable” says Rogers. “We see the problems beginning lots earlier with the retailers failing to understand the complexities and challenges concerned with opening there.”

    In line with the report, there are 15 questions that have to be requested previous to getting into the market starting from figuring out one’s audience to figuring out whether or not the model will journey and, whether or not the buyer is definitely prepared.

    “When talking with retailers it’s astounding what number of new entrants haven’t considered a few of these points” notes Rogers. “They consider the parable that a retailer can simply open a retailer just like what they function in different markets and the shoppers will come flooding in. Typically this could not be farther from the reality.”

    There have been numerous examples of shops saying very aggressive enlargement plans however only a few truly obtain them. “When retailers announce their enlargement plans for the China market, it is rather shortly obvious how good an understanding they’ve of what lies forward.” says Rogers. “Retailers are sometimes drawn by the numbers and whereas the market is getting simpler to function in, the competitors stays fierce.”

    In 2014, China recorded on-line gross sales of USD 427 billion making it the most important on-line retail market on the planet. “No matter your on-line technique at house, if establishing your self in China, you can’t afford to disregard the e-commerce market. It’s a key pillar of China’s retail market.” provides Rogers.

    As with bodily bricks-and-mortar shops, China’s e-commerce market might be equally as difficult. One must firstly decide whether or not you’re to launch your personal native website or have your merchandise bought by way of a 3rd celebration platform. In that case, which one? How are you to speak with the buyer and draw them to the place your merchandise are being bought?

    “The methods during which a retailer engages with the Chinese language shopper are totally different. A social media presence is vital, nevertheless there isn’t any Fb or Twitter. Retailers subsequently have to familiarise themselves with the native platforms,” he continues.

    With China’s retail market nonetheless considered immature, Rogers advises that one thinks long-term. “The US retailers are notably good at this in comparison with their European counterparts. They respect how lengthy it has taken to construct a robust enterprise at house and are typically extra affected person. Whereas turning into spoilt for selection, the buyer continues to be studying. Rome wasn’t inbuilt a day and nor will a retailer’s China enterprise. It ought to be remembered nevertheless, establishing a profitable presence in China may even drive gross sales in different worldwide markets. Subsequently conceding defeat and retrenching must be a final resort.”

  • Jamba to Open Jakarta Unit in ’16

    Jamba to Open Jakarta Unit in ’16

    Jamba, Inc. recently announced that it has entered into a master franchise development agreement with PT Sari Gemilang Makmur to develop 70 Jamba Juice stores in Indonesia over the next 10 years. Jamba plans to open the first store in the Indonesian capital, Jakarta, in 2016.

    PT Sari Gemilang Makmur is a subsidiary of PT Mitra Adiperkasa Tbk, one of Indonesia’s primary lifestyle retailers, operating over 1,800 retail outlets in 65 cities across the country. PT Sari’s expertise of successfully operating franchised brands in Indonesia would benefit Jamba.

    This agreement brings Jamba’s international store pipeline to 615 to be opened in South Korea, Canada, the Philippines, Mexico, UAE, Saudi Arabia, Bahrain, Oman, Kuwait, Qatar, Taiwan, Thailand and Indonesia. The company plans to have more than 1,500 units over the long term.

    The food industry is witnessing changes in consumer preference toward health and wellness and “good-for-you” products due to increasing health consciousness and obesity concerns. Accordingly, food and beverage companies are focusing on healthier products. Jamba’s offering of an entire range of customized health drinks will cater to such demand.

    Jamba has always remained focused on expansion and expects accelerated growth in both core existing markets as well as new geographic areas. Further, Jamba is focusing on shifting its business to a more franchise-centric model which will involve less capital and stabilize cash flow generation. Therefore, the new agreement is consistent with its strategic shift.

    Further, Indonesia is on track to become Asia’s next trillion-dollar economy over the next two years, according to IHS, joining China, Japan, India, Australia and South Korea. Therefore, management has chosen Indonesia to capture the increasing opportunities in the region’s growing beverage market.

  • Koreans plan ‘Asian Broadway’ in Seoul

    Koreans plan ‘Asian Broadway’ in Seoul

    SK Networks, which proposed utilizing the Cerestar constructing for a brand new duty-free store, plans to develop the Dongdaemun space into an Asian Broadway.

    The retail arm of SK Group, the third largest family-run conglomerate in Korea, already proposed investing 450 billion to 550 billion gained (US$460 to 496 million) in its bid for operation rights to a brand new duty-free store, and as a part of the bid, 200 to 300 billion gained can be invested to assemble infrastructure for trend, tourism and tradition within the area.

    SK plans to take a position 100 to 200 billion gained in infrastructure for a cultural city in collaboration with the Seoul Metropolitan Authorities’s Dongdaemun improvement challenge, which goals to advertise the style, tradition and tourism sectors. As well as, it should supply 10 billion gained to create the most important Media Façade at Dongdaemun Design Plaza.

    SK will pour a further 60 billion gained right into a small enterprise partnership fund to help Seoul’s “Manufacture Seoul” challenge and the Seoul Design Basis’s apprenticeship coaching for style and needlework. It’ll supply a complete of 30 billion gained to revitalise conventional markets in Dongdaemun.

    SK Networks, which operates the Walkerhill duty-free store in northeastern Seoul, will supply conventional market coupons to its duty-free store clients to assist small retailers within the markets.

    As soon as it good points its duty-free store operation license at Dongdaemun, it expects that the world will welcome a further three.three million vacationers per yr and create 33,000 new jobs, leading to three.four trillion gained value of financial advantages by 2020.

    An official at SK Networks stated: “We’ll type a mutual progress system by way of long run funding for the revitalization of the Dongdaemun space. We’ll lead the event of the area as an ‘Asian Broadway’ tradition city by mixing style, tradition and purchasing collectively.”

  • Ted Baker storms forward

    Ted Baker storms forward

    British way of life trend model Ted Baker has reported robust efficiency throughout all international markets and distribution channels within the 18 weeks to June 6.

    Group income soared 24.2 per cent above the identical interval final yr, with retail gross sales up 18.9 per cent and retail sq. footage up 6.6 per cent to 345,399 sqft.

    On-line gross sales surged 46.9 per cent, reflecting additional progress within the UK, a superb efficiency from its US website and the launch of a brand new Canadian website.

    “Efficiency throughout our established markets was robust and we proceed to spend money on creating model consciousness in newer markets,” the corporate stated in a press release.

    “We opened our first road degree retailer in Hong Kong in Causeway Bay and a retailer devoted to showcasing our licensed product vary, Ted Baker & Moore, in Spitalfields London. We additionally opened additional concessions within the UK, France, Germany, the Netherlands, North America, China and Japan.”

    Wholesale gross sales elevated by 41.2 per cent (38 per cent in fixed foreign money), with a robust efficiency from each the UK and North American companies.

    “In North America particularly, gross sales have benefited from a robust begin to the season and modifications to purchasing patterns, which have introduced ahead some orders. Consequently, we now anticipate progress for the complete yr of round 18 per cent.”

    Each retail and wholesale gross margins have been consistent with the corporate’s expectations, and broadly consistent with final yr.

    Ted Baker says its product and territorial licences proceed to carry out properly with new licensed retailer openings in Azerbaijan, Dubai, Qatar, Saudi Arabia and Thailand and two in Taiwan.

    “We proceed to spend money on our individuals and infrastructure to help the long run improvement of the Ted Baker model globally.”

  • Vietnam’s new luxury tax proposal may raise car prices by 30 pct

    Vietnam’s new luxury tax proposal may raise car prices by 30 pct

    Automobile manufacturers and importers in Vietnam have protested a new proposal from the Ministry of Finance which seeks to change how luxury tax on cars is calculated.
    Under the ministry’s plan, the special consumption tax on all vehicles with fewer than 24 seats will be based on their retail prices, with rates ranging from 15 to 60 percent. The proposal, set to take effect on January 1 next year, is aimed to create a level playing field for importers and producers since their cars will be treated the same, the ministry said.
    Currently, the luxury tax on imported cars is calculated on the Cost, Insurance Freight (CIF) price rather than the final retail price, a policy that manufacturers said could give importers an unfair advantage. They said local products could not compete with imported cars since local cars are taxed based on retail prices, which include a number of additional costs.
    Many automobile importers, after learning about the new proposal, said they are asking the government to keep the current policy unchanged so that the market and business environment is not disrupted. If sales go down, tax revenues will also fall, they said.
    It is “reasonable” and “accurate” to tax imported cars on their CIF prices because the prices already carry the taxes that foreign manufacturers have paid before shipping the cars to Vietnam, news website VnEconomy quoted VIVA, the association of car importers in Vietnam, as saying.
    Consumption
    Strangely, even local carmakers are not happy with the proposal. The new policy, with tax rates as high as 60 percent, it is not exactly what they want, which is to lower the luxury tax to spur consumption. The Vietnam Automobile Manufacturers’ Association has been urging the government to calculate the tax on delivery cost, before sale and post-sale costs are added. The Ministry of Finance, however, is leaning towards collecting more taxes from importers.
    Representatives of many importers and manufacturers in Ho Chi Minh City said the new tax scheme, if applied, will increase car prices by 20-30 percent. This will have an adverse impact on the market, they said “When taxes go up, we are forced to hike prices. In the end, no one other than consumers will be hurt,” a representative of a distributor who wished to stay unnamed said.
    Nguyen Minh Dong, an industry expert, also said increases in taxes will not help boost the economy, but may hamper its growth.
    In fact, “the biggest problem” with Vietnam’s auto industry is that here a car is subject to a wide range of taxes and fees, making it “extremely expensive” for the majority of consumers, he said.
    Looming threat
    The Japan Business Association in Vietnam has recently warned that if local policies for the auto industry continue to be ineffective, the industry will hardly survive when cars brought from other Southeast Asian countries are free of import duties in 2018 under a regional agreement. Increased imports will create trade deficit and in the end, hinder economic growth, VnEconomy quoted the association as saying at a recent meeting.
    Vietnam’s carmakers posted sales of 157,810 units last year, compared to 1.3 million in Indonesia, nearly 900,000 in Thailand, and 700,000 in Malaysia. Imports have been increasing considerably as the government has reduced import duties gradually in accordance with trade pacts that Vietnam have signed with other countries.
    Vietnam imported 72,000 complete-built-unit cars last year, twice the number of 2013, the association quoted official statistics as saying. A total of 45,000 cars, worth over $1.2 billion, were brought into the country in the first five months of this year.
  • Hyundai Grand i10X launched

    Hyundai Grand i10X launched

    The population of pseudo SUVs has risen over the past few years. While Fiat, Volkswagen and Toyota have reworked hatchbacks of their own, Hyundai played their cards right by launching the i20 Active around the time waiting periods for the Elite i20 started rising. Now, Hyundai has just launched the Hyundai Grand i10X in Indonesia, in order to capitalize on what seems to be a global trend.

    The car gets black plastic cladding around the wheel arches, side skirts and bumpers, day time running LEDs along the fog lamp housing, a faux skid plate, new alloy wheels, and black sash tape on the C pillar among other alterations. Mechanically, the car gets no changes.

    Hyundai India has not stated any plans to launch this model. The South Korean automaker already sells around 8,500 units of the Grand i10 in India every month. While a new product launch could be considered at a later stage, features such as the LED DRLs may be tempting for some Indian buyers.

  • Indonesia talks reciprocal access with M3; moves to improve safety

    Indonesia talks reciprocal access with M3; moves to improve safety

    Indonesia welcomes additional flights by the Gulf network carriers Emirates, Etihad and Qatar Airways, as long as Gulf authorities allow reciprocal access for Indonesian carriers, Indonesian Minster of Transport Ignasius Jonan tells Runway Girl Network in Paris.

    In a wide-ranging interview, RGN put the question of Gulf carrier expansion within Indonesia to Jonan, from the point of view of a developing nation with a strong economy looking to expand internationally and a growing middle class demanding longhaul travel.

    “It’s reciprocal,” Jonan says. “As long as it reciprocates between the two countries we can accept it. Otherwise, I think it’s going to be very difficult for negotiation.”

    Jonan notes that he would welcome additional flights from international airlines — including the Gulf carriers — further into Indonesia, as long as the access is reciprocal and as long as those airlines meet the international safety standards required by Indonesia.

    Does this reciprocity requirement limit additional routes to only markets where Indonesian carriers (principally, therefore, Garuda and AirAsia X Indonesia) wish to operate additional services? “No, it’s open. Whoever can meet the standards.”

    In the context of the ongoing Open Skies fight between the three large US international airlines and the three largest Gulf network carriers, RGN put the question to Jonan of whether Emirates, Etihad and Qatar were good for his country. “It’s a very difficult question if you ask whether the Gulf carriers are good for Indonesia or not, but we always treat all carriers on a reciprocal basis,” Jonan says.

    Part of the issue of demand is a practical one, Jonan notes. “For example, if you fly to Europe from Indonesia, some people might choose European carriers because the transit can be in Kuala Lumpur or in Singapore, but the Gulf carriers transit in Doha, in Dubai and so on. It’s a choice for travellers. Myself, I would like to transit near Jakarta, because I can sleep longer.”

    Jonan also notes that Emirates is already in negotiation with his government for additional services into the island archipelago: “So far it’s been running as it is, but Emirates has requested more business for Indonesia so we are now negotiating whether we can have reciprocal treatment.”

    Airlines to be shut down for safety violations by July

    Indonesia expects to cancel the operating licences of a number of airlines within the month, and hopes to upgrade the runways of all 237 Indonesian airports within three to five years,

    Speaking as Indonesian carrier Sriwijaya Air purchased two Boeing 737-900ER aircraft at the Paris Air Show — the first new aircraft purchased by Indonesia’s third largest airline — Jonan flags up an ongoing safety crackdown which will cut into the nation’s aviation industry this summer.

    “So far, we have cancelled sixteen licences for airlines and air charters,” Jonan said, noting that his ministry has reduced the number of Indonesian carriers from 73 to 57. “It is a continuous review, and I believe towards the end of July we will also announce some of the existing airlines and air charters cannot comply with safety, and by safety we are also including financial soundness for airlines and air charters.”

    RGN queried Jonan in detail about his ministry’s intentions towards the 2009 law that requires Indonesian-registered carriers to operate a minimum of ten aircraft, of which five must be owned and five can be leased or otherwise provided.

    “It’s a very good question,” Jonan admits. “We do not aim to expand any air transport business unless they can follow the safety program. We will keep the regulations in place so the airlines should have at least ten aircraft to be operating, five leased or rental or dry-leased and five to be owned. It is mandatory. The laws do not require any [specific] kind of aircraft.”

    But in terms of startup franchises along the lines of further AirAsia operations or a Tiger-style airline, which have expanded exponentially within the ASEAN region, would existing operations with other franchises internationally provide additional assurances or comfort to the Indonesian safety regulators?

    “Logically, it may be possible from a technical point of view, but if a startup operates only two or three aircraft it is very sensitive and very dangerous. They might then have less focus on regular maintenance because the aircraft has to work without any chance to have a schedule for maintenance. That’s an issue of safety. Also, ten is very small. With the five that can be leased as well, as long as it can be proved at the end of the day you will own ten aircraft. It should be mandatory, guaranteed ownership.

    Jonan also noted that the Indonesian government has a massive runway improvement programme across the archipelago, which will be crucial to the expansion intentions of Indonesian, regional and international carriers within his nation.

    “At the moment we have 237 airports throughout Indonesia. We have started now to expand the runways so that all airports can be used by a minimum of an ATR 72 or a Boeing 737, within five years. I hope it will materialise within three years.”