China Outbound: FATCA Reshapes FDI Flows Through Singapore and Hong Kong, Sourcing from India and Vietnam
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.
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.
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.
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.
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 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.
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 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, 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.
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.
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.
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 firstname.lastname@example.org or visit www.dezshira.com.
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The Gateway to ASEAN: Doing Business in Singapore 2014 (Second Edition)
Dezan Shira & Associates’ Singapore business guide will provide readers with an overview of the fundamentals of investing and conducting business in Singapore. The 2014 edition explains the basics of company establishment, annual compliance, taxation, human resources, payroll and social insurance in the city-state, in addition to how a company established there can be used to conduct business in the wider ASEAN and Southeast Asian region.
Establishing Your Sourcing Platform in India
In this issue of India Briefing, we highlight the advantages India possesses as a sourcing option and explore the choices available to foreign companies seeking to create a sourcing presence here. In addition, we examine the relevant procurement, procedural and tax duty concerns involved in sourcing from India, and conclude by investigating the importance of supplier due diligence – a process that, if not conducted correctly, can often prove the undoing of a sourcing venture.
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.
Developing Your Sourcing Strategy for Vietnam
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.
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