China Outbound: Understanding Special Economic Zones and HR Rules in ASEAN Countries

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

In this edition of China Outbound, we give information regarding to the growing special economic zones and HR regulations in ASEAN countries. We begin by introducing the economic zones in Indonesia and Laos and examining the opportunities and challenges provided. From there, we move to India’s booming automatic industry and the Indian workplace. Lastly, we discuss how to terminate employees in Vietnam and other ASEAN countries. Though ASEAN presents investors with an important growth market, navigating the regulatory hurdles to firing employees can present a significant challenge.

Indonesia’s Growing Special Economic Zones – Opportunities and Challenges

Earlier this year, Indonesian President Joko Widodo announced the creation of 17 more special economic zones (SEZs) by 2019. Ten of these zones would be dedicated to tourism, with the remaining seven hosting a variety of different activities such as extraction of mineral resources and fisheries.

Currently eight SEZs are under development in Indonesia, thus the new zones would bring the total number to 25. In addition, there are four existing Free Trade Zones (FTZs) that were originally created as SEZs and later made the formal transition to FTZs.

Understanding Laos’ Special Economic Zones: Untapped Potential

There are two types of economic zones in Laos, Special Economic Zones and Specific Economic Zones. Among the Special Economic Zones (SEZs) in the country there are two: the Savan-Seno Zone SEZ located in central Laos’ Savannakhet Province – a central point of the East-West Economic Corridor; and the Golden Triangle SEZ located in the sub-Mekong region close to the country’s borders with Myanmar, Thailand, and China.

Is India’s Automotive Industry Ready to Take China’s Place?

Make in India is designed to distinguish India as a top player in global manufacturing. One sector in particular has benefitted – the automotive industry. KPMG’s 2015 Global Automotive Report notes that India is expected to become the fourth largest automobile producer in the world by 2020. In order to sustain growth in the sector, the Indian government has created incentives, including: tax reductions, customs exceptions, investment allowances, 100 percent FDI investment allowance, automatic approvals for foreign companies, manufacturing/import exemptions from licensing and approvals and technology modernization funds for Small and Medium Sized Enterprises (SMEs).

The Sexual Harassment Act and the Indian Workplace

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act is a legal act of the Indian parliament that came into effect on December 9, 2013. The Act was passed after numerous political delays and controversies, and is based on the landmark guidelines established by the Supreme Court in the case of Vishaka versus State of Rajasthan, 1997.

Terminating an Employee in Vietnam

Being a socialist country, it may come as little surprise to foreign investors that Vietnam’s labor laws are employee-friendly. This is reflected in the degree of protection employees have from termination. In this article, we will explain when an employee may be terminated, which procedures need to be followed, and discuss severance payment.

Terminating an Employee in ASEAN

Though ASEAN presents investors with an important growth market, navigating the regulatory hurdles to firing employees can present a significant challenge. Therefore consulting with a professional services firm prior to entering into a new market in ASEAN is imperative. This will serve as the best way to address these issues, and anticipate common regulatory trends in specific countries. It will also help companies avoid making mistakes that may put their businesses in jeopardy. With a close look at four different major ASEAN economies, companies will get a better understanding of how to go about legally terminating employees in various business sectors.

An Introduction to Doing Business in India 2015 (Second Edition)
Doing Business in India 2015 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. We discuss a range of pertinent issues for foreign businesses, including India’s most recent FDI caps and restrictions, the key taxes applicable to foreign companies, how to conduct a successful audit, and the procedures for obtaining an employment visa.
An Introduction to Doing Business in Vietnam 2014 (Second Edition)
An Introduction to Doing Business in Vietnam 2014 (Second Edition) provides readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in the country.

An Introduction to Doing Business in China 2015
Doing Business in China 2015 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates, this comprehensive guide is ideal not only for businesses looking to enter the Chinese market, but also for companies that already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.

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