Around Asia: May 26

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May 26 – A weekly look at important regional news.

The 2009 Monsoon Arrives, Affecting India to China
The annual Asian monsoon has arrived, touching the western coast of India last Saturday with 5 centimeters of rainfall in Thiruvananthapuram, the State Capital of Kerala in 24 hours. The monsoon, which refers to the high seasonal winds blowing from the Indian Ocean and Arabian Sea in the southwest, moves eastwards. It brings heavy rainfall and unsettled conditions to much of Southeast Asia during the summer months, and extends its influence from India, through China and to Japan. (

India Issues New Anti-Competition Laws
The Indian government has announced the changes to the Competition Act of India dealing with anti-competitive agreements and abuse of dominance. The details of how the changes affect Indian M&A have yet to be ratified, although it is expected to be brought into law later this year. To strengthen the anti-competition act, the government has also established the Competition Commission of India (CCI), designed to oversee the new regulations. (India Briefing)

As China Raises Standards, Vietnamese Exports Suffer
Since China implemented stricter import quality rules last March, Vietnamese agricultural exports to the country have declined. One of the products affected by the new rules is latex exports. The Information Center for Agriculture and Rural Development said this will lead to a 2 percent drop of latex exports to China by the end of the year. Vietnam’s cassava exports to China are also being subject to stringent safety rules. (Vietnam Briefing)

India Telecoms to Examine Huawei Gear for Trojans
BSNL, the Indian state-owned telecommunication service provider, has been ordered by the government to “thoroughly test” all equipment supplied to it by the Chinese manufacturer Huawei on fears that “backdoor entries” could have been inserted to enable China if needed to disable Indian telecommunications. (

India Paves the Way for Fast Track Growth
The results of the recent Lok Sabha national elections in India are likely to have long lasting implications for the development of the country. With the Congress Party winning all but an 11-seat majority, India finally has, for the first time in 20 years, a democratically elected government that has essentially a mandate to govern. With 261 seats, the Congress Party requires just another 11 seats to form a majority, and with plenty of allied parties wanting to lend a hand for the opportunity to govern, it can grab the chance to push through much-needed reform on its own terms. (

More Vietnamese Goods Qualify for 50% VAT Discount
Vietnam’s Ministry of Finance has added thousands of goods on their list that qualify for a 50 percent cut on VAT rates until the end of the year. (Vietnam Briefing)

India M&A Trends Report Out Now
Cross-border business development agency, Dynamic Orbits, has released their April M&A Trends Overview for India. According to the report, the Indian economy is faring better than expected and appears to have largely absorbed the negative aspects of the global financial crisis, partially because exports account for just 18 percent of its GDP. (India Briefing)

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