Asia Briefing Business Operational Update

Asia Business Operational Updates For Global Foreign Investors

05 JANUARY 2022 View in Browser

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

HEADLINES: Two New 2022 Complimentary China and India business investment guides, 2022 China Import-Export tax guidelines, and news from around Asia. This week we have published two new 2022 business guides to China and India and look at important regulatory changes in 2022 affecting foreign investors in China. We look at India's textiles sector, the importance of RCEP to Vietnam and the implications of China's new strategy in Iranian connectivity. 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

An Introduction To Doing Business In China 2022 China continues to be an attractive and reliable investment destination despite multiple external headwinds like the ongoing pandemic and geopolitical tensions. In 2020, China overtook the US to become the world's largest foreign direct investment (FDI) recipient and the country expects FDI to rise 10.8 percent year-on-year to RMB 1 trillion (US$160 billion) in 2021. Indicative of business optimism, 41,600 foreign-invested enterprises were newly established in the first three quarters of 2021.   An Introduction To Doing Business In India 2022 India is pushing ahead with its intention to expand the contribution of its manufacturing sector to the GDP. The goal for the Modi government is to narrow existing gaps in local supply chains and bolster production capacity in critical areas of the new economy. In turn, this will also enhance India's export-oriented manufacturing potential, establish the country's higher value in the global supply chain, and lower sector-wise import dependencies.   11 New Laws That May Affect Your China Business In 2022 Multiple new laws and regulations that affect doing business in China came into force on January 1, 2022. Foreign investors and businesses engaging in cosmetics, food and beverage, import and export, and elder care should pay special attention.   2022 Import-Export Taxes and Duties in China This article explains three types of taxes – value-added tax (VAT), consumption tax, and customs duties – that foreign companies exporting to or importing from China must understand. Starting January 1, 2022, China has further adjusted parts of its customs duties, including most-favored-nation (MFN) duty rates, conventional duty rates, and provisional duty rates for some import products. Read the section on customs duties in this article for more information.   Tax Exempt Benefits For China Expats Extended Until End 2023 The Chinese government has extended the preferential IIT policy on foreigners' fringe benefits to the end of 2023. Previously, from 2022, foreigners working in China were to lose some tax-free fringe benefits (for example, housing rental, children's education costs, and language training costs). This would have resulted in larger tax liability for some higher-earning foreign workers.   Vietnam's Year In Review And Outlook For 2022 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.   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.   Investing In India's Textiles Sector India's textiles sector is driven by the country's abundant availability of raw materials and labor, with the market size standing at US$140.4 billion in 2020, and expected to grow to US$223 billion by 2021. The sector is currently in need of foreign investments as it shifts its focus to the production of handloom fabrics, man-made fibers, and technical textiles. To attract foreign investors, the government of India has ensured that 100 percent FDI is allowed in the textiles sector without needing any government approval. Various schemes have been introduced to further develop the industrial ecosystem, including industrial parks, skills development, and production-linked incentives.   China Opens New Consulate In Bandar Abbas To Support Iranian Belt & Road Beijing has anticipated a leading role in developing the Makran region, the coastal strip along Iran's Sistan-Baluchestan province and Pakistan's Balochistan, where Beijing already has a 40-year multi-billion-dollar agreement with Islamabad to develop Gwadar port.

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UPCOMING EVENTS IN THIS MONTH   Looking Ahead to 2022: Doing Business in India Webinar | January 19, 2022 | 2:30 PM India Time / 4:00 PM Vietnam Time / 5:00 PM China Time   Doing Business in Vietnam - Looking Ahead to 2022 Webinar | January 20, 2022 | 4:00 PM Vietnam Time / 5:00 PM China Time / 2:30 PM India Time   Unlocking Your ASEAN Potential – A Guide to Doing Business in 2022 Webinar | January 25, 2022 | 4:00 PM Vietnam / 5:00 PM Singapore / 9:00 AM UK   Looking Ahead to 2022: Investing and Doing Business in China Webinar | January 26, 2022 | 5:00 PM China Time / 4:00 PM Vietnam / 10:00 AM CET

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