Setting Up a Branch Office in India, M&As in Vietnam – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
A branch office is a suitable business model for foreign companies looking to establish a temporary presence in India. The branch office serves as an extension of the head office business and carries on the same business and activity as that of its parent company.
Most businesses use this mode to learn more about the Indian market without having to make a long-term commitment.
Looking at the new dynamics of an increasingly eastern facing Russia is relatively simple. The establishment of an Representative Office (RO) in the country is a proven method for assessing the local market and its new dynamics.
A RO also avoid any possible entrepreneurial risks, as they are cost centers only and not corporations.
China has amended its previous shortcomings, with bids for new projects in the region showcasing better groundwork, cheaper production costs, and smart lobbying.
In summary, China has become far more professional in the past two to three years in competing for tenders than in the past. This is not a purely Chinese model, with the possible exception of the tracking of diplomats and politicians, as the Japanese have previously followed the same path in learning how EU tender processes work.
The Vietnamese government has streamlined the merger and acquisition (M&A) process to encourage investment in new sectors of the economy, and it has increasingly become a popular investment route.
The article explains the legal foundation for M&As in Vietnam, and the procedures and restrictions associated with acquisitions in the country.
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.