China Outbound: Investment Opportunities Throughout Asia
Our Latest Round-Up of Business News Affecting China-Based Businesses Investing in Asia
In this edition of China Outbound, we provide details of two new issues of our complimentary magazines concerning investment in Asia and Vietnam, and explore emerging trends in investment opportunities throughout Asia for businesses already operating in China. With internet penetration spreading rapidly through Southeast Asia, opportunities to establish an e-commerce presence in the region are plentiful. From there, we review new and proposed preferential tax agreements that will further connect China with the rest of Asia, as well as highlight sourcing opportunities in Vietnam for China-based companies looking to partner with enterprises in the ASEAN region. We also comment on the recent elections in India and the opportunities there now a majority government is in power and set for reforms, as well as comment on recent disturbances in Vietnam and Thailand. Is there any long-term damage to foreign opportunities?
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E-Commerce Across Asia: Trends and Developments 2014: New Issue of Asia Briefing Magazine
Online retail sales in Asia-Pacific are forecasted to increase from US$186 billion in 2013 to over US$428 billion by 2018, according to a report by global consumer research firm Euromonitor. For businesses seeking to boost their competitive presence in Asia, exploring options for investment in e-commerce and e-retail can be the key to formulating an effective strategy for sustainable growth and development in the region. In this issue of Asia Briefing Magazine, we provide a comprehensive overview of e-commerce trends across the Asia-Pacific region with a focus on developing markets in Southeast Asia. In addition to analyzing macro-level economic and development indicators that signal the potential for region-wide growth, we explore several rapidly growing markets in-depth while highlighting opportunities for investment in each. This magazine is currently available as a complimentary download in the Asia Briefing Bookstore until the end of June.
Developing Your Sourcing Strategy for Vietnam: New Issue of Vietnam Briefing Magazine
Rising costs throughout Asia, and in China particularly, are driving businesses to look elsewhere for their sourcing partners. Vietnam has emerged as a prime location for foreign companies seeking lower-cost sourcing options, thanks to the country’s plentiful supply of cheap labor, low business expenses, political stability, and growing domestic consumer market. In this issue of Vietnam Briefing Magazine, we outline the various sourcing models available for foreign investors – representative offices, service companies, and trading companies – and discuss how to decide which structure best suits the sourcing needs of your business. This magazine is currently available as a complimentary download in the Asia Briefing Bookstore until the end of June.
APEC Discusses Asia-Pacific Free Trade Area as TPP and RCEP Alternative
Last month, China’s proposal to establish a Free Trade Area of the Asia Pacific (FTAAP) was discussed at length during the APEC Trade Ministers Meeting, held in Qingdao, China. The FTAAP could help consolidate negotiations for the Trans-Pacific Partnership trade agreement and the Regional Comprehensive Economic Partnership, leading to broader economic cooperation between China and its neighboring Asian nations, and strengthening existing regional free trade agreements.
Modi’s Election Triumph May Usher In a New Era for India
Prime Minister Modi’s electoral victory last month, in which his BJP party won an outright majority in the Indian Parliament, presents a great opportunity to secure India’s future development. Based on the the country’s demographics this could spark a growth cycle similar to that of China’s over the past thirty years.
Just as China moves into a period where its workforce numbers will begin to decline, India is set to add 500 million workers to its workforce over the next decade. As Modi works to attract greater foreign investment and economic participation to India, this will have a dramatic impact on the makeup of the global manufacturing industry. “Made in China” labels on mass-produced products may in time be replaced by “Made in India.”
Singapore Revises M&A Tax Allowances
The Inland Revenue Authority of Singapore has released their revised e-Tax Guide, which introduces several preferential changes to the country’s M&A allowances, stamp duty relief program, and double tax deduction schemes. These changes add to Singapore’s appeal as a hub for China-based companies looking to expand into the ASEAN region.
Hong Kong Gets Public Consultation Over ASEAN Free Trade Agreement
Hong Kong and the Association of Southeast Asian Nations have initiated public consultations this month over their proposed free trade agreement, which would eliminate tariffs, liberalize trade and promote bilateral investment between Hong Kong and the ten ASEAN member nations.
ASEAN is currently the second largest trading partner in goods with Hong Kong, which is not covered under the China-ASEAN FTA that came into effect in 2010. The proposed ASEAN-Hong Kong free trade agreement would serve to open these markets to greater investment and manufacturing cooperation.
Anti-Chinese Vietnam Factory Riots a Passing Phase
Recent riots in Vietnam and growing regional tensions with China have highlighted the operational risks faced by China-based manufacturers who have moved production capacity to Southeast Asia. In this article, we assess risk across major Asian nations and find that despite the headlines, tensions between China and Southeast Asia will likely remain minimal.
Thai Military Coup – Investment and Operational Issues
While Thailand’s military coup may cause some problems for Chinese outbound investors, companies operating in the ASEAN country remain stable as the military seeks to enforce a period of calm before the establishment of an interim government.
To address economic concerns, the military has outlined a series of initiatives to boost the country’s economy, including loan guarantees for small firms and plans to develop special economic zones along Thailand’s borders.
Related Reading
For further news concerning foreign investment in Asia, please refer to our other websites:
Asia Briefing
Established in 1999, Asia Briefing Ltd. is dedicated to providing individuals and enterprises with the latest business and regulatory news as well as expert commentary relating to conducting business in emerging Asia.
ASEAN Briefing
ASEAN Briefing features business news, regulatory updates and extensive data on ASEAN free trade, double tax agreements and foreign direct investment laws in the region. Covering all ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam), ASEAN Briefing aims to be the premier online source for technical and business information concerning investment and trade with ASEAN countries and includes downloadable copies of all ASEAN and member country double taxation and free trade treaties held with China. The newest ASEAN business guide, “Doing Business in Singapore 2014 (Second Edition),” is available as a complimentary download in the Asia Briefing Bookstore.
India Briefing
India Briefing has developed into a premium source for insight on doing business in India. It publishes business news concerning foreign direct investment into India, including the most important tax, legal and accounting issues. You can download a complimentary copy of our latest edition of India Briefing Magazine, “An Introduction to India’s Audit Process,” in the Asia Briefing bookstore.
Vietnam Briefing
Vietnam Briefing is one of the few available sources for quality legal, tax and investment insights into Vietnam. Vietnam Briefing publishes a wealth of information contributed to by on-the-ground business professionals in Vietnam. The newest Vietnam business guide, “An Introduction to Doing Business in Vietnam 2014 (Second Edition),” is available as a complimentary download in the Asia Briefing Bookstore.
Dezan Shira & Associates
Meet the firm behind these publications. Dezan Shira & Associates 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 emerging Asia. Since its establishment in 1992, the award-winning firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam, in addition to partner alliances in Indonesia, Malaysia, Philippines and Thailand, as well as liaison offices in Italy, Germany and the United States. For further information, please email asia@dezshira.com or visit www.dezshira.com.
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