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Expanding Your China Business to India and Vietnam

Published: March 2013

As operational costs in China continue to rise, an increasing number of companies are looking at either relocating or moving part of their China-based facilities to lower cost markets elsewhere in emerging Asia. This makes sense since China itself is trying to move away from an export-driven economy and into a consumption-driven growth model.

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  • No. of Pages: 12 pages

In this issue:

  • The Emergence of Vietnam and India as China Alternatives
  • Setting Up a Foreign-Invested Enterprise in Vietnam
  • Setting Up a Foreign-Invested Enterprise in India
  • Hong Kong or Singapore for Holding Asian Investments?

As operational costs in China continue to rise, an increasing number of companies are looking at either relocating or moving part of their China-based facilities to lower cost markets elsewhere in emerging Asia. This makes sense since China itself is trying to move away from an export-driven economy and into a consumption-driven growth model.

Meanwhile, countries such as Vietnam are actively courting these export businesses through tax incentives and preferential policies similar to those that helped China get to where it is today. India, too, with its abundant, young and inexpensive workforce, coupled with a massive consumer market, is looking strikingly similar to China 20 years back.

In this issue of Asia Briefing Magazine, we discuss why China is no longer the only solution for export-driven businesses, and how the evolution of trade in Asia is determining that locations such as Vietnam and India represent competitive alternatives. With that in mind, we examine the common purposes as well as the pros and cons of the various market entry vehicles available for foreign investors interested in Vietnam and India. We also examine the advantages of using Hong Kong and Singapore as corporate bases to reach out to Asia’s emerging markets. Finally, we comment on how the proposed Trans-Pacific Partnership will affect both China-based and Vietnam-based manufacturers.

With change comes choice, and the content within this issue of Asia Briefing Magazine will enable the Asia-based executive to begin considering markets beyond China’s borders. The opportunities are there.

 

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