Asia Briefing Business Operational Update

Asia Business Operational Updates For Global Foreign Investors

22 DECEMBER 2021 View in Browser

This week's primary foreign investment news from our ASEAN, China, India, Russia, Belt & Road and Vietnam Briefings. ---

HEADLINES: Getting Ready For RCEP 1st January, 2022 This week is a momentous one for Asia and Global trade implications, as entire Governments, officials and businesses look ahead to the commencement of the Regional Comprehensive Economic Partnership (RCEP) free trade agreement that starts on January 1st. China has reduced tariffs on nearly 1,000 products, while new regional interconnectivity and other free trade agreements will shortly come into effect to dovetail with RCEP. Even the UK can benefit indirectly by taking advantage of, and leveraging the Asian trade deals it does have. RCEP is the world's largest Free Trade bloc and includes Australia, Brunei, Cambodia, China, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Thailand and Vietnam. It is time for international traders, manufacturers and sourcing businesses to look at what this massive trade deal - the world's largest in terms of population market access and trade - 30% of global GDP - will have on their operations moving ahead into 2022 and beyond. Click here to go straight to the main news page, or if you think your colleagues should be receiving this then please forward this to a friend and let them know. Subscriptions are available here

China Lowers Tariffs On 954 Products In Response To RCEP On January 1st To promote the high-quality opening of markets, China will apply agreed tax rates on selected goods originating in 29 countries and regions for 2022 in accordance with China's free trade agreements (FTA), including the Regional Comprehensive Economic Partnership (RCEP) and the China-Cambodia FTA, both of which will come into effect on January 1, 2022.   The Completed China-Laos Railway: Bringing Opportunities for ASEAN and the Asia Pacific This US$6 billion project (equivalent to one-third of Laos' GDP) is backed by China as part of its Belt and Road Initiative (BRI) and is a linchpin of the deepening ties between the two countries. Traveling to the Chinese border now takes less than four hours compared to the 15 hours by car and costs US$33 for a second-class seat. At Boten, the line heads north some 595km before ending in Kunming, the capital of China's Yunnan province, and could significantly transform connected this landlocked mountainous country and attract greater foreign investment and tourists. Logistics costs from Vientiane to Kunming are expected to drop by some 40-50%.   RCEP and Vietnam: New Opportunities for Investors Just like the EU-Vietnam free trade agreement (EVFTA), the UK-Vietnam free trade agreement (UKVFTA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP, the RCEP will reduce tariffs and set trade rules, and help link supply chains, particularly as governments grapple with COVID-19 effects. The FTA is expected to cover all aspects of the business including trade, services, e-commerce, telecommunications, and copyright though negotiations over some aspects still need to be finalized. Tariffs are expected to be reduced within 20 years.   What Hanoi's Positive FDI Infrastructure Build Tells Us About Its Business Environment Hanoi continues to be a leading FDI destination, attracting investment despite the pandemic. The capital city boasts a good business environment, infrastructure, and top-sourced talent. To further attract investment, the government has announced an economic recovery plan for the next five years, with a vision towards 2030.   All Eyes on Vietnam: Why 2022 is an Ideal Time to Invest Vietnam offers favorable conditions for foreign investors for numerous reasons: Strategic location, ample workforce with competitive labor costs, and a relatively open environment for FDI to only name a few. However, the pandemic outbreak in the summer months of 2021 with heavy restrictions and supply chain disruptions led to uncertainties; thus foreign investors may remain insecure on whether 2022 is the right time for bold investment. We think 2022 is an ideal time to invest.   How British Business Can Access China's New £18 Trillion Asia RCEP Free Trade Agreement via the Back Door Market access for the UK - although the UK is not a signatory to the RCEP agreement, there are indirect ways in which British businesses can access this market, including China, through the back door. This is because the UK has signed free trade agreements with various member states of the RCEP. We examine these British agreements.   Russia-Singapore Trade Ties To Boom In Wake Of Free Trade Agreement Singapore is Russia-business friendly with ease of bank account opening a major draw for Asian regional exports, trade, and investment. Russia and Singapore said they look forward to the "expeditious completion" of the Services and Investment Agreement between the two countries – a key component of the EAEU-Singapore FTA currently being negotiated.

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UPCOMING EVENTS IN THIS MONTH   Looking Ahead to 2022: Investing and Doing Business in China Webinar | Wednesday, January 26, 2022 | 5:00 PM China Time / 4:00 PM Vietnam / 10:00 AM CET

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