China Outbound: FATCA Reshapes FDI Flows Through Singapore and Hong Kong, Sourcing from India and Vietnam

January 30, 2015 Posted by China Briefing Reading Time: 5 minutes

Our Latest Round-Up of Business News Affecting China-Based Businesses Investing in Asia

In this edition of China Outbound, we look at the complex dynamics affecting foreign investment into Asia as a result of the United States’ ongoing fight against international tax evasion through its FATCA legislation. We describe how FATCA is being implemented in two of Asia’s major springboards for FDI – Hong Kong and Singapore – and give our reasons for endorsing the growing competitiveness of the latter. Elsewhere, we compare investment vehicles for sourcing throughout Asia, and cast a spotlight on Vietnam’s technology sector, as well as India’s potential for trade in medical devices and wine.

Using China’s Free Trade & Double Tax Agreements – New Issue of China Briefing Magazine

The newest issue of China Briefing Magazine, titled “Using China’s Free Trade & Double Tax Agreements,” is out now and available as a complimentary download in the Asia Briefing Bookstore through the month of January.

American Business Problems with Hong Kong Bank Accounts? Singapore as an Answer

Given the recent problems American trading companies are having in establishing bank accounts in Hong Kong, alternatives need to be found. Singapore presents the most viable option available to foreign investors for a host of reasons, says Chris Devonshire-Ellis in this op-ed.

U.S. Officials in Hong Kong Gathering FATCA Non-Compliance Data

American IRS officials are said to be carrying out investigative work concerning FATCA transgressions from the American Consulate in Hong Kong, according to a report issued in the South China Morning Post. In this article, Chris Devonshire-Ellis weighs in on these developments and provides strategic advice.

Singapore Signs IGA on FATCA with the United States

On December 9, 2014, Singapore became the first country in Southeast Asia to sign an Intergovernmental Agreement (IGA) on tax information sharing with the United States. The signing follows an in substance agreement reached between Singapore and the US in May 2014. Most countries around the world have been entering into IGAs with the US government since the US introduced a complex reporting and withholding regime through the passage of FATCA in March 2010.

The Asia Sourcing Guide 2015 – New Issue of Asia Briefing Magazine

The newest issue of Asia Briefing magazine, titled “The Asia Sourcing Guide 2015”, is out now and available as a complimentary download in the Asia Briefing Bookstore. In this issue, we explain how and why the Asian sourcing market is changing, compare wage overheads, and look at where certain types of products are being manufactured and exported.

Vietnam’s Growing Tech Capabilities Attract Foreign Investment

While Vietnam may be more well-known for its sizeable garment manufacturing capabilities, investors may be surprised to learn of the country’s growing technical expertise. High tech companies are starting to flow into the country as they seek to take advantage of the low-cost, young, fast learning, and rapidly expanding workforce.

Hong Kong Investment into Vietnam at Peak

Hong Kong has been ranked the second largest capital investor in Vietnam for 2014. The Vietnamese Ministry of Planning and Investment’s Foreign Investment Agency registered a total of US$3bn in Hong Kong investment into Vietnam during the period January 1 to December 15, 2014.

An Introduction to Doing Business in India 2015 – New Report from Dezan Shira & Associates

An Introduction to Doing Business in India 2015, out now and available as a complimentary download in the Asia Briefing Bookstore, is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.

Investing in India’s Emerging Wine Industry

India’s wine industry is in the midst of a vital transition. Last year, the country’s wine production hit a record 17 million liters, with export sales rising 40 percent to reach US$4.4 million in the first 7 months. With a growing export sector, the industry has potential to be a global market competitor.

Choosing an Investment Model for India’s Medical Devices Industry

This year, India’s medical devices industry will be opened up to 100 percent FDI. However, companies should be careful when planning their entry strategy. The type of entity chosen is influential, and a thorough understanding of the industry’s regulations is absolutely necessary.

About Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

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