Indonesia’s New Tax Incentives, Due Diligence in Vietnam – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
In June 2019, the Indonesian government issued GR 45/2019, which set out a series of tax incentives for businesses that invest in labor intensive industries, training programs, as well as research and development (R&D).
The incentives are designed to encourage more foreign direct investment, expand the skilled labor base, and develop infrastructure.
Businesses planning to set up a trading company, start importing to, or exporting from India, must understand the stages and stakeholders involved in the process, as well as the regulatory framework and documentation required.
Africa recently agreed to the African Continental Free Trade Agreement (AfCFTA), which dispenses with tariffs on 90 percent of all intra-African products. Only Nigeria remains outside the FTA.
This move has significant benefits for Russian businesses trading and manufacturing in Africa as they can now source cross-border throughout much of the continent.
Russia’s VEB Bank, which acts as the National Development Bank, has been stepping up interaction with its Chinese strategic partner, the China Development Bank (CDB) to better align the development strategies of the two countries.
Mergers and Acquisitions (M&A’s) are an increasingly popular route for foreign investors looking to begin operations in Vietnam – and due diligence is a key component of the M&A process.
This article focuses on legal and financial due diligence because they represent the starting point for most investors. Due diligence work can take several months, depending on the size of the company being acquired, as well as the location where it is based.
China Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Dalian, Beijing, Shanghai, Guangzhou, Shenzhen, and Hong Kong. Readers may write to firstname.lastname@example.org for more support on doing business in China.
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