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Within this week, we suddenly have a flurry of activities from Vietnam. Firstly, they’ve decided that they want to push for the development and adoption of artificial intelligence (AI) in a big way. Second, they want to also develop a robust Internet of Things (IOT) platform so that they could enable seamless integration of a wide variety of services. Thirdly, they want to try to join the race to develop 6G technology. Lastly, they have shortlisted several cities to spearhead the development of theme-based townships/ cities that balance between sustainability, people and economic growth.
I’ve already covered point (4) which is their plan to develop new townships in my previous blog post therefore, I will only proceed to cover the first three. I want to focus on their plans for artificial intelligence, IOT platform and also the push for 6G technology.
Like I mentioned earlier, there’s so many things that are happening within Southeast Asia right now but I simply don’t have the time to cover all of them. I can at most write one blog post per day.
In fact, there’s a lot of happenings in Philippines right now and there’s further developments on their digitalisation journey. Brunei, another Southeast Asian county has also made big strides internally with their plans to strengthen their small enterprises and started a government effort to market their products overseas. Korea has also made headwaves into the renewable energy sector in Timor Leste, another Southeast Asia country located at the eastern end of Indonesia.
As I shared earlier in my blog post which was about Vietnam’s plan to go into artificial intelligence, they’ve now decided to go full steam ahead to execute their plan. Under this plan, they will encourage and support their start-ups and small- and medium-sized enterprises (SMEs) in the field of artificial intelligence so that they could stay competitive. As of now, they are encouraging the private sector to plough investments into this domain, and hopefully produce Made-in-Vietnam AI related products. Vietnam is currently encouraging its SMEs to produce AI products that are related to human resources, training and education.
Apart from AI, they also want to focus on creating an IOT platofrm so that they could have an open data ecosystem and shared database by 2025. When the shared database and open data ecosystem are completed, independent platforms will be connected to national databases to serve the city’s e-government. The database would include information ranging from housing, transport, environment and healthcare. With this, they aim to improve data access to public information for social organisations, businesses and residents. Also, they are planning for Ho Chi Minh city to offer online public services by 2030.
Lastly, they are also joining the race to develop 6G technology, joining the likes of USA, China, Russia and Korea. Once done, they might be able to integrate AI with 6G enabling system-wide IOT integration among physical devices, signal processing, resource management, and connection services. Prof. Dr. Duong Khac Trung was appointed to the research chair position of the UK’s renowned Royal Academy of Engineering (RAENG) to study the next chapter of telecommunication advances, including 6G development.
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Korea has formed a new partnership with Indonesia to carry out projects that could provide water, renewable and clean energy to remote communities. These communities usually reside on the small islands within Indonesia’s jurisdiction and it is very difficult for them to obtain electricity from the grid. Its very common for these remote communities to rely heavily on diesel sources for their energy demands but such sources are usually unsustainable.
A lack of access to sustainable energy have often been cited as one of the leading causes for economic inequality. With access to reliable energy sources, the people might be able to improve productivity and seek out opportunities to better themselves. For example, if they have the ability to harness higher amount of energy, this might allow them to utilise mechanical automation thereby, freeing up time for family members (sometimes children) to pursue education.
Don’t get too worked up about using children for manual work. In such remote communities, there are limited manpower and it is very common for parents to rely on their children for back-breaking tasks.
That’s why sometimes they would like to have more children so that their children could help out with manual labour. If the parents could have access to cheap and reliable energy sources, they might reconsider their life decisions. Might.
At the moment, Korea and Indonesia want to work together to help 23 villages that are located in Central Kalimantan, Southeast Sulawesi, West Sulawesi and East Nusa Tenggara. They will build off-grid solar power plants which would be supported by remote monitoring systems. Each solar plant should be able to provide about 1.2 Mega Watt of energy.
Indonesia will also invite 100 young people across the country and promote them as energy ambassadors within the villages of Kalimantan and Papua. Interestingly… … these energy ambassadors will be tasked to support the mapping of natural resources so that the information could be used to improve the government’s development programme.
Hmmmmmmm………
Apart from infrastructure projects, they would develop training and certification for the solar plant operators. Korea will also provide funding of about USD15.5 million to support the project roll-out within Indonesia.
I am sure that many in Indonesia welcome this cooperation because it could create new employment and also increase access to safe and reliable water sources with renewable energy.
This is especially so during the COVID-19 pandemic, where hygiene and sanitation are very important.
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Plans
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Many Southeast Asian countries are racing to attract foreign investments and I must admit that some of these countries have performed exceptionally well in that they have been pretty quick in organising themselves and rapidly creating the proper channels to seize available opportunities.
Things are moving at never-before-seen speed. It can be observed in how they are exchanging information with potential investors, clearing regulatory hurdles, rallying the private sector and establishing the platforms to facilitate investments.
Most people are currently working from home now, staying at home more often than usual and some might imagine that the world is slowing down.
No. It is not slowing down at all.
On the contrary, I think that the pace is picking up at lightning speed because of the ability to telecommute and have large scale online meetings anytime of the day. Because of this format, bureaucracy is being discarded like nobody’s business.
The result is the creation of small teams comprising highly-skilled workers that could contribute at ultra-fast pace without the burden of information flow blockages.
Vietnam is also keeping pace and not toooo far behind, I think.
The country is deliberating over how best to plan their cities, organise its people and leverage the Vietnamese’s expertise and their natural environment. They want to clobber everything together and fashion the mix into new theme-driven townships. Just so that they could keep pace and stay relevant to their larger eco-system.
They are still studying this concept.
Several challenges lie ahead because they would need to coordinate a large-scale collaboration among the different government departments. Tasks would comprise developing plans, sending the right message to potential investors and setting up the right platforms to facilitate investments.
The usual method is for coastal cities to develop their ports and use it to attract investment. I think its outdated.
Too outdated.
I think that people who still stick to that idea, simply isn’t aware of the changing technology and business landscape or they are sticking to herd mentality and don’t want to voice out. I can’t pinpoint which one is the worse. Up to you to decide.
Anyway back to Vietnam. Apart from creating new townships, they also want to revitalise their cities by redeveloping the brown field (existing developments) sites. Their government thinks that the existing slim buildings that are tightly wedged together, doesn’t really send the right message to potential investors.
They think that the urban developments give off a “shady” vibe. They want to change the way that they are building the specifications into their project tenders for brown field sites so that they could encourage fresh and attractive ideas.
On the other hand, my Vietnamese friends take a lot of pride in these type of houses and I could see it in their faces when they explain the history of these accommodations during my visits.
Its the same conversation throughout many parts of the world whereby the residents want to preserve their heritage through their buildings but the local government, on the other hand, wants to redevelop their towns to attract investments.
This has led to the issue of gentrification. Gentrification often increases the economic value of a neighborhood, but the resulting demographic change is frequently a cause of controversy.
In Vietnam, land is collectively owned by people and administered by the government on their behalf. Therefore, under such a system, property owners cannot have full and legal ownership of land.
Their rights are limited to land use rights permitted within the law. Land users typically receive a land use right certificate (LURC), which shows the land user’s rights on the property.
The good thing is that the government establishes the land price based on market value so the land price cannot deviate so far until the redevelopment becomes too expensive to carry out.
When the government recovers land for redevelopment, they usually offer the affected residents with 3 resettlement options namely on-site resettlement, resettlement in a different location or simply offering them cash reimbursements.
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As many already know, Indonesia has established the new Indonesia sovereign wealth fund (SWF) known as the Indonesia Investment Authority with an initial capital of about USD 1 billion. The initial capital was sourced from their state budget. After this, the government would increase this capital to USD 5 billion. The USD5 billion would comprise USD2 billion in cash from their state budget and the remaining USD3 billion would be in the form of shares issued by their State-Owned Enterprises (SOEs) and other state assets.
With the creation of this SWF, Indonesia would be able to provide more options for investors to buy into the country. There are already many ways to invest in Indonesia right now, for example, through partnership with local partners, purchasing state securities, shares and also through online platforms. We can see that the country is really trying very hard to open up, to attract foreign investment and they are trying to achieve this by providing as many investment channels as possible.
So, after attracting these capital, where will the funds go to?
That’s the most important question.
Well, it is expected that the government would be using the capital to improve the transport infrastructure throughout the entire country. This would comprise items such as toll roads, ports and airports. Once the country recovers from the Covid19 pandemic, travelling and transportation might be able to pick up and they want to be able to leverage on the transport links to spur even more growth.
If so, we could expect the likes of Jasa Marga, Waskita Karya and Hutama Karya to be actively involved in the progress. At the moment, there are talks that the Indonesia Investment Authority might take over a certain percentage of the ownership of 4 toll roads from Waskita Karya.
The four sections are Pemalang-Batang (60%), Krian-Legundi-Bunder-Manyar (99.82%), Cimanggis-Cibitung (90%), and Waskita TransJawa Toll Road (39.50%). In fact, Waskita Karya has revealed that they could be planning to divest its ownership in up to 9 toll roads with a value of around USD786 million.
Indonesia has thousands of islands and more than 200 million people reside mainly in Java. There’s a lot of potential business opportunities to be unlocked if the central and local governments plus the private sector, are able to work together, to improve the country’s transport connectivity.
Transportation of goods and people would be so much easier. Goods and services would be able to reach parts of Indonesia that were previously inaccessible. When trade and businesses improves domestically, people would also have more alternate residential locations to choose from.
Currently, road transport is the most commonly used system. In 2020, it was estimated that Indonesia’s road system has about a total length of 550,000 kilometres. To put things into context, Finland is about 6 times smaller than Indonesia but Finland has about 10 times more islands than Indonesia.
Given Finland’s geographical complexity, Finland was still able to pull off building a total road length of about 450,000 kilometres. Based on my modelling, if Finland is about the same size as Indonesia, Finland would have built about 2 million kilometres of total road length. If my modelling holds true, this means that Indonesia currently only reached about 25% of their potential total road length.
On the flip side, this means that Indonesia still has 75% more growth potential in their total road system. At the moment, Indonesia targets to build about 2,500 km of new toll roads in the 2019–2024 period.
Certainly there’s room for more but they mustn’t overlook the sustainability aspects of these project.
Remember, Mr. Gates said in his book “How to avoid a Climate Disaster” that concrete contributed to about 6% of worldwide carbon emissions. It’s a great book, do get a copy of it. I booked mine the moment he said he planned to write that book. It reads like a basketball coach’s gameplay for basketball players and everyone has to play their part in order to pull off avoiding a climate disaster.
Read the reviews about this book here. It’s really amazing. No worries, I’m not sponsored by the guy. My views are truly my own.
Don’t you wish you could IMPROVE PRODUCTIVITY and INCREASE COLLABORATION among your staff while doing away with all the hassle? After trying out so many productivity and office tools, I discovered that Google Workspace is the BEST TOOL for both remote and on-site working!
Apart from using the Google Workspace, I want to provide you with even more EXCITING VALUE for your company’s GROWTH and EXPANSION. Today, I am giving out two promotional codes that you could apply and start SAVING MORE MONEY!
Plans
Promotional Codes
Google Workspace Business Starter Plan
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Google Workspace Business Standard Plan
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Each promotion code provides 10% off the first year on either Google Workspace Business Starter plan or Google Workspace Business Standard plan*.
In this episode, I share some details about Thailand’s plan to link its Gulf with Andaman Sea. Also on Indonesia’s plan to become a Global Halal Center and how they want to leverage data and tracking. #ESG#Sustainability#SoutheastAsia#Asean#AI#Data
Indonesia is mulling over a plan that might be able to transform the country into a global Halal center. By going into this niche, they might be able to protect their domestic producers and also help them to access the world market.
The idea is to design and build a integrated-facilities township whereby people could come to work, live, learn, play and stay. The concept would comprise facilities such as universities, research centers, commercial offices, production facilities, a mix of residential units, government facilities. warehousing and transport hub and waste treatment plants.
Once it is constructed, it would have the potential to create new employment for the locals and also help them to commercialise their products professionally. Apart from unlocking business opportunities in potential regions, aggregating talents and like-minded people and also marketing their produces globally, they also want to leverage digital technology such as blockchain and ID tagging so that they would be able to track their produces from origin to buyer.
By establishing this, they want to be able to harvest a growing body of data to unlock business insights. The tracking will cover produces from fishery products and marine resources, animal products, agriculture and plantation products, half-finished products plus completed products.
At the moment, they have identified several areas to develop this idea and they are encouraging the local governments and regional heads to come onboard. They hope to start the ball rolling by getting their agreements to explore the idea of co-developing development policies.
This is very exciting development if the regional heads agree to it. Anyway, its at the conceptualisation stage so it is still too early to tell if they could turn this idea into reality.
Don’t you wish you could IMPROVE PRODUCTIVITY and INCREASE COLLABORATION among your staff while doing away with all the hassle? After trying out so many productivity and office tools, I discovered that Google Workspace is the BEST TOOL for both remote and on-site working!
Apart from using the Google Workspace, I want to provide you with even more EXCITING VALUE for your company’s GROWTH and EXPANSION. Today, I am giving out two promotional codes that you could apply and start SAVING MORE MONEY!
Plans
Promotional Codes
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Each promotion code provides 10% off the first year on either Google Workspace Business Starter plan or Google Workspace Business Standard plan*.
Thailand has appointed consultants to study the feasibility and business model to develop southern economic corridor which would facilitate the linking of the transportation routes between Gulf of Thailand and the Andaman Sea.
The project will reduce the delivery time of goods between Thailand and the countries that are situated along the Indian Ocean by about two days.
Once the project is completed, it would emplace Thailand as the region’s water transport hub, by opening up new ocean routes. With this, Thailand hopes to promote economic growth, improve the Thai’s quality of life and maybe even create new industrial opportunities.
This is in line with their 20 years plan (2018 – 2047), which would focus on improving the efficiency of their transportation system thereby reducing logistic costs and and increase the country’s business competitiveness.
The country envisions a Smart Port transportation system that would effectively link the new Ranong Pier and Chumphon Port. The management system would be fully powered by automation and allows for seamless integration with motorways, rail lines and other forms of transportation system. The current estimates has it that the project would cost about USD 3 Billion to build.
The appointed consultants will start to study the following:
Economic impacts, financing models, engineering methods and ESG impact;
Basic design concepts;
Environmental Impact Assessment (EIA);
Possible investment and development models; and
Developing a feedback mechanism for the entire implementation of the project.
Don’t you wish you could IMPROVE PRODUCTIVITY and INCREASE COLLABORATION among your staff while doing away with all the hassle? After trying out so many productivity and office tools, I discovered that Google Workspace is the BEST TOOL for both remote and on-site working!
Apart from using the Google Workspace, I want to provide you with even more EXCITING VALUE for your company’s GROWTH and EXPANSION. Today, I am giving out two promotional codes that you could apply and start SAVING MORE MONEY!
Plans
Promotional Codes
Google Workspace Business Starter Plan
EAAY74Q979XD49K
Google Workspace Business Standard Plan
YATVPVG39EFFFGW
Each promotion code provides 10% off the first year on either Google Workspace Business Starter plan or Google Workspace Business Standard plan*.
Don’t you wish you could IMPROVE PRODUCTIVITY and INCREASE COLLABORATION among your staff while doing away with all the hassle? After trying out so many productivity and office tools, I discovered that Google Workspace is the BEST TOOL for both remote and on-site working!
Apart from using the Google Workspace, I want to provide you with even more EXCITING VALUE for your company’s GROWTH and EXPANSION. Today, I am giving out two promotional codes that you could apply and start SAVING MORE MONEY!
Plans
Promotional Codes
Google Workspace Business Starter Plan
EAAY74Q979XD49K
Google Workspace Business Standard Plan
YATVPVG39EFFFGW
Each promotion code provides 10% off the first year on either Google Workspace Business Starter plan or Google Workspace Business Standard plan*.
Terra Link Research 