Singapore’s FTA Network, Russian-Chinese Greater Bay Area Fund – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
Singapore’s extensive free trade agreements (FTA), coupled with a transparent legal system and educated workforce, have been credited with accelerating the country’s transformation to a first-world economy.
The country’s 13 bilateral and 11 regional FTAs include some of the largest combined trade agreements in the ASEAN-China, ASEAN-India, and ASEAN-Hong Kong trade blocs — providing Singapore-based businesses with access to preferential markets, free or reduced import tariffs, as well as enhanced intellectual property regulations.
Prospective companies and investors looking to enter India must carefully consider their options for investment and available avenues for establishing a business presence.
Liaison offices (LOs) are a popular option for foreign investors exploring the Indian market for the first time, and unsure of how the country’s liberalizing FDI caps will affect their business.
In contrast to other business structures, LOs allow foreign companies to establish a light footprint in India while keeping their financial, legal, and administrative commitments low.
The Russian Direct Investment Fund (RDIF), the Russia-China Investment Fund (RCIF), and the investment fund of China’s Guangdong province have agreed on the conditions for creating a Russian-Chinese Greater Bay Area Fund, with financing available up to US$1 billion.
The fund will be aimed at strengthening trade and economic ties between Russia and China, promoting Russian business in Guangdong, and encouraging Guangdong’s companies to enter the Russian market.
The World Bank has stated this month that Kazakhstan has the lowest rate of poverty in Central Asia. Also, in the Central Asian region, where the population is growing quickly, the absolute number of people living in poverty has fallen.
Kazakhstan moved up three spots to 25th on World Bank Doing Business 2020 report. The country made improvements in issuing permits, ease of getting a loan, and starting a business. However, difficulties in registering property and resolving insolvency remain.
Foreign investment in Kazakhstan is growing between China and the West, the latter mainly from the US, which is responsible for 23 percent of the FDI flow into the country, thanks largely to the oil and gas industry. China, however, accounts for five percent of overall FDI into Kazakhstan, in addition to three percent from Hong Kong.
Vietnam will increase the minimum wage by an average of 5.7 percent in 2020. The government issued Decree no 90/2019/ND/CP which will take effect on January 1, 2020. The increase varies from US$6 to US$10 depending on living expenses in a particular region.
Businesses should prepare and incorporate the increase in their budgets for the next year.
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.