Category: News

The impact of increased interest rates from the FED on Thailand

          Since the US has faced an inflation rate hit 8.6% which is the highest in 40 years, the FED has consideration to increases the interest rate, and the latest update on the interest rate is rose to 0.75% after they had seen the inflation report of May.           Accordingly, How will this impact Thailand? The signal to increase the interest rate is the same as the FOMC meeting recently. The governor of the Bank of Thailand, Dr. Sethaput Suthiwatanaraput said about monetary policy “The interest rate in Thailand is the lowest in the region, but inflation in Thailand is the top rank in the region, so the monetary policy that they use considerately.” This quote was analyzed that the interest rate in Thailand will increase exactly, at present the interest rate is 0.5% but the inflation rate hit 7.1% which is the highest 13 years ago. On 8 June 2022, during the meeting The Monetary Policy Committee has a 4:3 solution to keep the interest rate at 0.5%, the votes were

The Royal Government of Cambodia considers the digital economy as a new source of growth

          The Minister of Commerce, Pan Sorasak, participated in the discussion on the topic of trade in digital service and stated that the Royal Government sees the digital economy as a new source of growth. Minister Sorasak made the remark at the 2022 Annual Meeting of the World Economic Forum in Davos-Klosters, Switzerland.           The Minister of Commerce, Pan Sorasak, stated that the digital economy will be a new source of Cambodia’s economic growth. Meanwhile, he also committed that there are challenges including the legal framework, not only mechanisms for implementing and coordinating fintech which is computer programs and other technology used to support or enable banking and financial services but also the development of a roadmap for fintech policies.           Minister Sorasak added that for the purpose of promoting innovation and open trade in services in the digital sector, the Royal Government of Cambodia will take the actions by the following; established the Digital Economy and Business Committee of Cambodia implemented the Digital Government Policy of Cambodia

BREAKING NEWS: The 0.75% interest rate was rapidly raised by The Federal Reserve (FED) aimed to assist with slower inflation.

          At the current FOMC meeting, The Federal Reserve on Wednesday (15/06/2022) raised interest rates by 0.75% which is the largest move it has made since 1994, it was a decision in order to increase the interest rate by 0.75%. In the former time, On May 4, policymakers have been discussed raising short-term interest rates by 0.50% to a target range due to CPI wost than forecasted between 0.75% and 1.00% in a bid to lower inflation.           But a hot inflation report on Friday (10/06/2022), showing the fastest shifting of price increases since 1981, showed little sign of relieving price pressures in the month of May. Combined with other economic data showing the worst reading of consumer confidence since the 1970s, the pessimistic outlook pushed the Fed to entertain the idea of abandoning its prior plan. From the US central bank forecasting, the US also decreased its economic projections for 2022, stoking recessionary fears which is The Fed’s median GDP forecast for 2022 is now 1.7%, down significantly from 2.8% in

The causes of Laos Inflation in 2022

          Nowadays, many situations are being fluctuated in each microeconomics around the world. Not only the increased cost of living but also the other causes that Laos has faced in this severe situation which lead to an economic crisis. It was begun with Laos’ public debt, fuel shortage, and depreciation of the Kip currency has down 36% against the dollar over the last year, 2021, together with inflation. Our analyst team mentioned the Laos inflation statistic compared in the same period in April to March from 5 years (2017), to last year (2021), and this year (2022)           Firstly, The inflation rate, In 2017, 5 years ago, The Bank of the Lao P.D.R reported an inflation rate of 1.52% in April, and the inflation rate decreased to 1.07% in May with the 6.83% of 2017 GDP, According to the report from CEIC Data. In the same period month last year in April 2021, the inflation rate was 3.23% and in May 2021 the inflation rate was 3.55%, this is the highest point

The dramatically rising 76.97% of Laos Inflation

          Laos has been facing inflation imminently for a year, within a month of the rate of 9.86% in April, which has been the 6th ranked among the world’s countries with the highest inflation rate. In the meantime, it has been continuing to be even more severely increased to the rate of 12.81% in May, which can be considered as a percentage of the one-month sharply raised inflation rate of 76.97% in April.           Laos has been forced to contend with not only the inflation rate but also other economic difficulties, particularly those relating to fuel shortages as a result of the rapidly increased demand for the already existing energy supply, accumulating together with mounting debt burdens and fluctuating currency exchange rates, the depreciation of the Kip currency (LAK).            Rising oil prices across the world are one of the major contributing factors to the depreciation of the Kip as well as the driven up the rate of inflation. Furthermore, the cost-of-living index (CPI) has been immoderately experienced

The discharging VAT transaction of cryptocurrency or digital assets in Thailand

          The Thai decree published the Royal Government Gazette text of a report about the code of revenue, which is the regulation of discharged VAT on transferring cryptocurrency or digital tokens by those taking any actions within the trading of digital assets exchange market. The decree gives an argument in order to not only encourage the cryptocurrency or digital token exchange market but also to encourage its trading in Thailand. According to the Thai Government Gazette, the purpose of this revenue code is to state that the regulation allows for the proper regulation of digital asset transactions.           Beforehand, on March 8th, there was a proposal from the ministry convention for a composed decree in this regulation about the discharging of VAT on cryptocurrency or digital assets between April 1st, 2022 and December 31st, 2023. In addition, this requested proposal was approved by the Securities and Exchange Commission of Thailand, which is reputable and reliable. From the convention, there was a resolution that the majority consented to this decree onward. This proposal

Officially launched crypto mining operation in LAOS

    On August 28, 2021, the bank of Laos was cautious about the usage of unregulated cryptocurrencies, as in Bitcoin, Ethereum, and Litecoin, which are not physical currency. The notice was issued that citizens of Laos are prohibited by law from purchasing or selling cryptocurrencies, and the Laos people must regard the risks of cryptocurrencies before investing in or purchasing them. However, some Lao businesses continue to choose cryptocurrencies as payment for products and services.     After that, on September 8, 2021, the government of Laos authorized 6 companies to be able to trade and mine cryptocurrencies viz Bitcoin, Ethereum, and Litecoin. The companies had been authorized to can mining and trading in Laos such as Wap Data Technology Laos Phongsubthavy Road & Bridge Construction Co. Sisaket Construction Company Limited Boupha Road-Bridge Design Survey Co., Ltd. The Joint Development Bank Phousy Group     The Office of the Prime Minister has issued notification No. 1158/SAN on September 9, 2021, as regards the 6 companies signing the agreement with a company that provides maximum anti-tariff conditions to be used

Laos Economic Growth

    Activity should be picked up in 2022, with the China-Laos railway—once initial hitches are ironed out—boosting exports of tourism and goods. Meanwhile, recovering global demand should further be driving activity.      However, a possible becoming even worse than the public health situation, the escalated external debt seems trouble, domestic rising inflation, and currency depreciation are crucial unfavorable risks. FocusEconomics (Economic Reporter) consensually Forecast panelists project GDP to expand 4.6% in 2022, shrinking 0.2 percentage points from last month’s forecast, and 4.9% in 2023. Source: https://www.focus-economics.com/countries/laos Image Source: https://www.globaltimes.cn/page/202112/1240434.shtml Published 25/05/2022 By Ashley Jones

Fuel shortage crisis in LAOS

          At this moment, a user’s car in Vientiane stands in a line to fill the fuel for many hours. The economic crisis in Laos was shown by the energy shortage which the main cause is supplies insufficient. Since the crisis of COVID19 and the lack of energy occurred thence Laos had affected by Lao Kip depreciated and the world market fuel has set a higher price. Therefore, Laos has not had sufficient dollars to buy fuel from other countries.  Meanwhile, only 4 companies import fuel to Laos from 13 companies before.           Laos has already been confronted with a shortage of fuel a week ago in other provinces, in 9 May 2022, Vientiane’s capital has confronted with the same situation. Hence, petrol stations have conditions that a client vehicle can only be filled the fuel not more than 500,000.00 Kip per once. Some people brought the bottle to stock up the supplies, and the price of the fuel is 60,000.00 Kip per bottle, at the same time, some petrol station provides

The situation of INFLATION crisis in LAOS

    The Lao Statistics Bureau reported in January the inflation rose to 6.25%, in February rose to 7.3%, and in March high up to 8.5%. From the latest information, inflation has already increased to 9.9% in April, with no signal to decrease.     Laos is the country in Southeast Asia that has the highest rate of inflation, which have the primary cause of inflation as the fuels in Laos have faced a shortage of fuel due to a shortage of foreign currency to import fuel, including the war between Russia and Ukraine which increases in global oil prices, it is leading to increases fuel rates rose to 86% in Laos. From the latest news reports, some oil stations are unavailable due to a shortage of fuel from 4 May 2022  to 10 May 2022.     The Government of Laos has had consultative meetings in recent weeks as well as invited representatives from the private sector to find solutions for the economy of Laos. From the consultative meetings, the government will support fuel retailers by not relying on