Friday, April 25, 2014

Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN




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2point6billion.com discusses business and investment news rising from the geopolitical relations of China and India, and the interactions these two countries have with the rest of emerging Asia.



Manufacturing

Global Manufacturing Moving to India

Case Study: U.S.-based Mylan Pharmaceuticals

Aug. 21 – Right on the heels of Ford Motor’s announcement that their global auto sales manufacturing hub would be in India, U.S.-based pharmaceutical giant Mylan said that the company has additional plans to invest in India. With half its global work force of 20,000 persons located in the country, about one-seventh of its global income is from its India operations – but this is also expected to jump significantly.

Mylan plans to acquire Agila Specialties through its Indian subsidiary for US$1.6 billion. If the proposal is accepted, Mylan expects to increase its domestic sales 12-fold by 2018. The deal would also help Agila increase its capacity to 600 million units by 2017, up from its current production of 180 million units. The news comes as Mylan made their latest submission concerning the Agila acquisition to the Indian Department of Industrial Policy and Promotion (DIPP). Continue reading

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New Issue of Asia Briefing: An Introduction to Development Zones Across Asia

Development-Zones-Across-Asia-cover-250May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.

The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue reading

Posted in Business, Featured, Foreign Trade, Manufacturing, Markets | 1 Comment

New Issue of Asia Briefing: Expanding Your China Business to India and Vietnam

Mar. 6 – The second issue of our new issue Asia Briefing Magazine, titled Expanding Your China Business to India and Vietnam, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of March and April.

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. Continue reading

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Minimum Wage Comparisons Between China and India

China two to three times more expensive than India for skilled labor

Op-ed Commentary: Chris Devonshire-Ellis

Jun. 7 – Comparing labor costs is always a difficult art, not least because different countries have different ways and mechanisms of measuring these. China, for example, levies a minimum wage across the board irrespective of employment type, whereas India imposes different minimum levels dependent upon specific types of work. However, as the population demographics are now shifting to a younger workforce in India from China, such comparisons, while not exact, provide some clues about the nature of costs associated within the labor pools of each. Continue reading

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Selling to China & India’s Middle Class – It’s a Vietnam Manufacturing Play

Op-Ed Commentary: Chris Devonshire-Ellis

Mar. 20 – Later this week, I’ll be speaking at the U.S. Department of Commerce “Hot Market Watch” event in Cincinnati. My (two) keynote lectures are about China and Vietnam, and with a little bit of India thrown in for good measure. The reasons for this are that the market dynamics over the global supply chain, the subsequent manufacturing base for that, and the opportunity to sell to more Asian consumers than ever before are all shifting. It’s something I’m looking forward to – having seen our firm, Dezan Shira & Associates, through 20 years of foreign investment advisory work in China. Six years ago we moved to do the same in India and, four years ago, to Vietnam. We spotted these changing dynamics way back, invested ourselves in these markets, and are now primary advisers to foreign investors throughout the emerging Asia region. Continue reading

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Thailand Releases Tax Measures for Flood-Affected Investment

Mar. 13 – In order to assist and rehabilitate investments affected by last year’s flooding, Thailand’s Board of Investment – by virtue of Section 16 and Section 18 of the Investment Promotion Act of B.E. 2520 – announced on February 23, 2012 a series of tax measures which are discussed below.

The new measures are effective from December 29, 2011 and applicants must submit applications for this measure before December 31, 2012. Continue reading

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PepsiCo, Tingyi Form Strategic Alliance in China

Nov. 7 – Taiwanese noodle and drink manufacturer Tingyi (Cayman Islands) Holdings announced Friday that it had signed an agreement with U.S. beverage giant PepsiCo Inc. to form a strategic alliance within the beverage business in China.

According to the announcement, Tingyi-Asahi Beverages (TAB) – which is Tingyi’s beverage joint venture with Japan’s Asahi Group Holdings – will take over PepsiCo’s entire non-alcoholic beverage bottling business throughout China. In return, PepsiCo will acquire a 5 percent indirect interest in TAB worth about US$55 million. In addition, PepsiCo will have an option to increase its stake up to 20 percent by 2015. Continue reading

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Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at china@dezshira.com, download our corporate brochure or visit at us www.dezshira.com


Dezan Shira & Associates, Twenty years of Excellence

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