China Outbound: Financial Integration in ASEAN & Emerging Opportunities in Vietnam
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.
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 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.
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.
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.
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.
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.
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.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
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.
- Previous Article Making Sense of China’s ‘One Belt, One Road’: Understanding Chinese Views
- Next Article China Market Watch: Foreign NGOs & Electric Car Market