China-Vietnam Business Update

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Mar. 22 – Welcome to our biweekly China-Vietnam roundup in which we examine the latest bilateral news and commentary affecting foreign investment in the two countries.

Coastal China, Inland China, India or Vietnam for Your Sourcing Business?
While coastal China is a great option for a wide variety of industries, there are several other alternatives such China’s inland regions, or even India and Vietnam. We compare each and their potential for cutting operating expenses.

New Issue of Vietnam Briefing: Tax and Foreign Exchange Control
The newest issue of Vietnam Briefing is now available and details tax and foreign exchange controls in Vietnam. It includes details of annual tax finalization for corporate and individual income taxes, VAT payment details, in addition to examining Vietnam’s foreign exchange controls. This issue will be of interest to all businesses and CFOs interested in or conducting business or trade with Vietnam.

So What’s the China Deal with India and Vietnam?
As China manufacturing gets more expensive, export-driven units are looking at alternative destinations. But how do India and Vietnam measure up against China?

Nokia to Open US$275 Million Facility in Hanoi
In moves that will have repercussions for the global giant’s suppliers, Nokia have announced plans to build a US$275 million factory in Hanoi.

Vietnam’s DongA Bank Seeks Foreign Investment
Vietnam’s DongA Commercial Joint Stock Bank is seeking more foreign investors to participate in its capital raising program. The bank has announced that it plans to sell 15 percent of its stake to foreign investors during the fourth quarter of 2011.

Vietnam to Cut Import Duties By 15 Percent
Vietnam’s Finance Ministry plans to cut import duties to 15 percent in April. Currently, the tariff on refined sugar is 40 percent, while raw sugar is taxed at 25 percent. The cuts will help keep prices stable, according to statements made by the finance ministry.

Dezan Shira & Associates maintain offices in Hanoi and Ho Chi Minh City and can advise foreign investors on establishing operations in the country. The firm also provides due diligence, tax and accounting advice. Please email vietnam@dezshira.com, visit the practice at www.dezshira.com, or download the firm’s brochure here.

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