China Outbound: Financial Integration in ASEAN & Emerging Opportunities in Vietnam

May 2, 2016 Posted by China Briefing Reading Time: 4 minutes

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

In this edition of China Outbound, we take a closer look at ASEAN nations’ financial integration progress, which has been on the regional agenda since the Asian financial crisis in 1997. From there, we move to a comparison between Singapore and Hong Kong as Asia’s financial hub. We highlight the promising opportunities in Vietnam’s emerging industries such as education and healthcare. Finally, we discuss the reason why India’s economic outlook remains positive despite a declining optimism towards emerging economies.

Understanding Financial Integration in ASEAN

Established in late 2015, the ASEAN Economic Community represents a significant achievement in a decades long process towards regional financial integration. Although far from complete, integration of finance throughout the region plays a key role in the financial sector’s continued development, facilitating greater access to insurance, capital markets, and banking.

Singapore Overtakes Hong Kong as Asia’s Top Financial Hub

Singapore has overtaken Hong Kong as the top financial hub in Asia, according to Z/Yen Group’s Global Financial Centers Index (GFCI). Hong Kong slipped to fourth place overall, while Singapore now only trails London and New York globally. Although the two financial centers are essentially neck and neck – Singapore scoring 755 points out of 1000 and Hong Kong 752 – the shift is indicative of a wider trend of optimism towards Singapore and uncertainty facing Hong Kong.

Industry Spotlight: Vietnam’s Growing Appetite for Education

In 2016, prevailing societal values and strong economic tailwinds combine to create promising opportunities in Vietnam’s education sector. For those capable of navigating the bureaucratic hurdles of the Vietnamese Market, timing has never been better to establish operations.

Industry Spotlight: Emerging Opportunities in Vietnamese Healthcare

With a rising consumer class threatening to overwhelm health services throughout the country, investment in Vietnamese healthcare presents exciting opportunities in a sector previously closed to foreign investment. For those considering investments of this nature, a clear understanding of where advantages lie and how to tap into them remains an integral component of establishing successful operations throughout the country.

The Philippines Export Development Plan: Addressing Obstacles to Trade

Seeking to maximize its position within ASEAN and make up for poor economic performance in recent quarters, the Philippines has implemented stimulus measures aimed at readjusting its export sector. The most significant actions that have been implemented or planned to date are outlined in the recently passed Philippine Export Development Plan (PEDP). For those currently considering the Philippines as a destination for foreign investment, the success of reforms will likely play a significant role in the island nation’s business landscape in the coming months.

Factors Shaping India’s Positive Economic Outlook

Amidst the declining optimism towards emerging economies, India’s economic outlook remains positive. This is due to the Bharatiya Janata Party (BJP) led government’s dual focus on economic reforms and maintaining fiscal discipline, and a strong monetary policy directed by the Reserve Bank of India (RBI). In the context of the global commodity slowdown, it helps that India is not an export-dependent nation.

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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