Japan Chemical Trading Blog

The latest chemical trading industry insights from Japan, Asia and the world, reported by the President of Daishin Corporation, Masa Oguchi.

Thailand’s Military Government Plans to Increase Tax on the Wealthy

A Nikkei Newspaper article dated September 10 said, “Thailand’s interim military government will implement tax reforms including new taxes on the wealthy, including a fixed asset tax and an inheritance tax, while providing benefits to people with low incomes”.
The government plans to impose a tax on land and buildings of 0.5% to 2% of their value and an inheritance tax of 10%.
These taxes, never introduced before in the country, might become unpopular among the wealthy in Thailand.
However, the tax rates are still very low compared to Japanese equivalents.

Maybe the wealthy have thus far been too privileged in Thailand.
I will be looking closely to see if the military government is able to carry through these reforms.

Thailand’s Military Government Plans to Increase Tax on the Wealthy

A Nikkei Newspaper article dated September 10 said, “Thailand’s interim military government will implement tax reforms including new taxes on the wealthy, including a fixed asset tax and an inheritance tax, while providing benefits to people with low incomes”.
The government plans to impose a tax on land and buildings of 0.5% to 2% of their value and an inheritance tax of 10%.
These taxes, never introduced before in the country, might become unpopular among the wealthy in Thailand.
However, the tax rates are still very low compared to Japanese equivalents.

Maybe the wealthy have thus far been too privileged in Thailand.
I will be looking closely to see if the military government is able to carry through these reforms.

Barter?

I found two articles related to Bangladesh in the Nikkei Newspaper on September 7.
One is, “Prime Minister Abe had a meeting with Ms. Sheikh Hasina, Prime Minister of Bangladesh, during his visit to the country, and told her Japan would provide financial aid up to 600 billion yen over 4 to 5 years to develop industrial infrastructure”.
The other one is, “Both countries had been competing for a seat assigned to the Asia-Pacific region in the United Nations Security Council non-regular commissioner election, but now, Bangladesh has withdrawn its candidacy and announced that the country would support Japan”.

I visited Bangladesh several times on business trips and saw the country needed to develop infrastructure on a large scale.
So I really hope Japan can help with this.
However, I wonder, what do the Bangladeshi people think about these two news items?

Barter?

I found two articles related to Bangladesh in the Nikkei Newspaper on September 7.
One is, “Prime Minister Abe had a meeting with Ms. Sheikh Hasina, Prime Minister of Bangladesh, during his visit to the country, and told her Japan would provide financial aid up to 600 billion yen over 4 to 5 years to develop industrial infrastructure”.
The other one is, “Both countries had been competing for a seat assigned to the Asia-Pacific region in the United Nations Security Council non-regular commissioner election, but now, Bangladesh has withdrawn its candidacy and announced that the country would support Japan”.

I visited Bangladesh several times on business trips and saw the country needed to develop infrastructure on a large scale.
So I really hope Japan can help with this.
However, I wonder, what do the Bangladeshi people think about these two news items?

Condition of Samsung’s Chairperson

Three months have passed since Mr. Lee Kun-Hee, the Chairperson of Samsung Electronics Co., Ltd., lost consciousness on May 10th due to acute myocardial infarction and was carried to a hospital.

A major South Korean newspaper, The Chosun Ilbo, reported on August 11th, “He was gradually recovering but is still far from speaking or communicating. Although he has been making more eye contact, it is not certain if he recognizes the person”.

We hope for a smooth recovery of the top leader of the biggest company in South Korea, which has a market capitalization of 20% of South Korean GDP. However, hearing the news about his condition, it is clear that a new management team will have to be established.

Condition of Samsung’s Chairperson

Three months have passed since Mr. Lee Kun-Hee, the Chairperson of Samsung Electronics Co., Ltd., lost consciousness on May 10th due to acute myocardial infarction and was carried to a hospital.

A major South Korean newspaper, The Chosun Ilbo, reported on August 11th, “He was gradually recovering but is still far from speaking or communicating. Although he has been making more eye contact, it is not certain if he recognizes the person”.

We hope for a smooth recovery of the top leader of the biggest company in South Korea, which has a market capitalization of 20% of South Korean GDP. However, hearing the news about his condition, it is clear that a new management team will have to be established.

LINE Applies to List on Tokyo Stock Exchange

On July 16, Nikkei Newspaper reported that an instant messaging app operator LINE Corporation applied for an initial public offering on the Tokyo Stock Exchange.

LINE is a Japanese subsidiary of NAVER Corporation, a South Korean IT company.
According to a relevant source, the company could be valued at more than JPY 1 trillion (about USD10 billion).

LINE aims to take more shares in foreign markets, including the North American market by investing funds acquired through the IPO.
Competition will be fiercer with competitors such as WhatsApp which Facebook acquired in February or Tencent in China.

LINE Applies to List on Tokyo Stock Exchange

On July 16, Nikkei Newspaper reported that an instant messaging app operator LINE Corporation applied for an initial public offering on the Tokyo Stock Exchange.

LINE is a Japanese subsidiary of NAVER Corporation, a South Korean IT company.
According to a relevant source, the company could be valued at more than JPY 1 trillion (about USD10 billion).

LINE aims to take more shares in foreign markets, including the North American market by investing funds acquired through the IPO.
Competition will be fiercer with competitors such as WhatsApp which Facebook acquired in February or Tencent in China.

Japan, the EU and the U.S. Investment in China Decreasing

According to the announcement of the Ministry of Commerce of the People’s Republic of China on June 15, investment by Japan, the EU and the U.S. in China is dropping.
In the January – June period of 2014, investment by Japan decreased by 48.8%, almost half.
The weaker yen and increased production costs such as local labor costs are considered to be background factors.

In the same period, investment by the U.S. decreased by 4.6%, the EU by 11.2% and ASEAN by 19.25%. In contrast, South Korea’s investment drastically increased by 45.6%.
While investment by Japan is sharply decreasing, investment by South Korea is sharply increasing.
Will this trend continue?

Japan, the EU and the U.S. Investment in China Decreasing

According to the announcement of the Ministry of Commerce of the People’s Republic of China on June 15, investment by Japan, the EU and the U.S. in China is dropping.
In the January – June period of 2014, investment by Japan decreased by 48.8%, almost half.
The weaker yen and increased production costs such as local labor costs are considered to be background factors.

In the same period, investment by the U.S. decreased by 4.6%, the EU by 11.2% and ASEAN by 19.25%. In contrast, South Korea’s investment drastically increased by 45.6%.
While investment by Japan is sharply decreasing, investment by South Korea is sharply increasing.
Will this trend continue?

Business Trip to Korea

Today I am in Korea on a business trip.  This is my first visit in a long while.

While I am heading for a hotel from Kimpo Airport in my friend’s car, I noticed that the sky looked white. It was not the normal cloudy sky. The sky looked the same as the one I saw in China the other day.

According to my friend, the condition is particularly getting worse these days as they rarely see blue sky. I think something should be done before it becomes too late.

Meanwhile, I heard that the economic condition was not great recently and that real estate prices were falling in Korea.

Business Trip to Korea

Today I am in Korea on a business trip.  This is my first visit in a long while.

While I am heading for a hotel from Kimpo Airport in my friend’s car, I noticed that the sky looked white. It was not the normal cloudy sky. The sky looked the same as the one I saw in China the other day.

According to my friend, the condition is particularly getting worse these days as they rarely see blue sky. I think something should be done before it becomes too late.

Meanwhile, I heard that the economic condition was not great recently and that real estate prices were falling in Korea.

Profit Drop and Restructuring of Samsung Group

An article in the morning edition of the Nikkei Newspaper dated April 8th says that, “Samsung Group has announced that the group’s net profit for fiscal year 2013 declined by 18% from the previous year, and the group has decided to merger some of its affiliates with poor performance including Samsung Petrochemical Company and Cheil Industries Inc.”

Samsung has improved performance significantly with its smartphone business and in order to get back on the growth track, the company needs to develop a new engine for growth on their own. Although it’s not an easy task, the company needs to cultivate a new source of revenue that would generate new values for the society.

It would also be indispensable to employ a more modern business management system including the termination of circular investments. I have a high expectation for this company as one of the leading companies in Asia.

Profit Drop and Restructuring of Samsung Group

An article in the morning edition of the Nikkei Newspaper dated April 8th says that, “Samsung Group has announced that the group’s net profit for fiscal year 2013 declined by 18% from the previous year, and the group has decided to merger some of its affiliates with poor performance including Samsung Petrochemical Company and Cheil Industries Inc.”

Samsung has improved performance significantly with its smartphone business and in order to get back on the growth track, the company needs to develop a new engine for growth on their own. Although it’s not an easy task, the company needs to cultivate a new source of revenue that would generate new values for the society.

It would also be indispensable to employ a more modern business management system including the termination of circular investments. I have a high expectation for this company as one of the leading companies in Asia.

Serious Air Pollution in China

According to Yahoo News!, Panasonic Corporation, one of Japan’s largest electronics companies, decided to pay “air pollution care allowance” to its expatriate employees in China. This is a first such case for foreign companies operating in China.

When I went to China on a business trip last week, I saw no blue sky during my stay. I’ve heard that other people living in the same region of China also said they have not seen blue sky for a long time.

A fundamental solution to this problem is needed.

Serious Air Pollution in China

According to Yahoo News!, Panasonic Corporation, one of Japan’s largest electronics companies, decided to pay “air pollution care allowance” to its expatriate employees in China. This is a first such case for foreign companies operating in China.

When I went to China on a business trip last week, I saw no blue sky during my stay. I’ve heard that other people living in the same region of China also said they have not seen blue sky for a long time.

A fundamental solution to this problem is needed.