Investing in Indonesia’s Workforce, Vietnam’s Industrial Zones – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
Indonesia offers tax deductions of up to 200 percent for businesses that invest in human resources development activities. The government hopes these incentives will enable its labor force to upgrade their skills and become more competitive.
Singapore’s recent signing off a Free Trade Agreement with the Eurasian Economic Union is poised to provide a new, significant outlet for Russian outbound investment into Asia.
Corporate establishment in Singapore is relatively quick and easy, and it is easy for Russian businesses to establish bank accounts in Singapore although the banks will conduct the usual “know your client” protocols. Russia also has a double tax avoidance treaty (DTAA) with Singapore, which allows tax relief in certain trade and service areas and mitigates against the prospects of being taxed in both countries.
The creation of a new joint venture between Russia’s State Owned Direct Investment Fund (RDIF), the Russian search engine and email account company Mail.ru Group, China’s Alibaba and Russia’s mobile phone network operator Megafon will help achieve the level of US$200 billion in bilateral trade between the two countries set by the Presidents of Russia and China, Head of RDIF Kirill Dmitriev has said in an interview.
In August, new incentives took effect for investments that improve the quality of life around industrial zones in Vietnam.
Specifically, the new incentives apply to the construction, operation, or renting of condominium apartments as well as investment into infrastructure that can develop like cultural, medical, and sports centers for employees of these industrial and economic and zones.
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 email@example.com for more support on doing business in China.