In 2013, the EU and China started negotiations for an investment agreement. The aim is to provide investors on both sides with predictable long-term access to the EU and China markets and to protect investors and their investments. Manufacturing in Vietnam for sale to ASEAN and China In this issue of Vietnam Briefing Magazine, we introduce our readers to manufacturing in Vietnam as an important part of their business strategy in the ASEAN region and beyond. Concretely, we explain the new ASEAN Free Trade Area, outline what foreign investors can expect to create their productive presence in the country and present the country`s main tax points. China is Australia`s largest trading partner, with a mutual flow of goods and services of more than $135 billion in 2014. And the deal does little to solve more damaging structural problems related to China`s approach, particularly its model of subsidizing and supporting important industries that compete with U.S. companies such as solar power and steel. U.S. companies accuse these economic practices of ensuring that cheap Chinese products can flood the United States. The China-ASEAN Free Trade Area (FTA) was fully completed on January 1, 2010, and since then China has become ASEAN`s largest trading partner, while ASEAN has become China`s third largest trading partner.
Singapore, with its wealth in financial and other services, has also concluded a free trade agreement with China. This agreement, signed in 2009, focuses on the service sector, in addition to the individual benefits of income tax. Singapore intends to increase its population by an additional 2 million people and many of them are expected to be affluent Chinese nationals from the mainland. Among the benefits of companies is the reduction of withholding taxes for a large number of services, including eligible fees. This is one of the reasons why Singapore is becoming a regional investment hub in China and Asia and is receiving more and more Chinese foreign investment that is going in the opposite direction – to Singapore and for reinvestments throughout Asia. Since foreign investors automatically qualify as Singaporean companies when setting up a subsidiary, they can also access Singapore`s impressive international tax treaty, including many other free trade agreements and more than 80 bilateral double taxation treaties. . . .