29 JUNE 2022View in Browser
 
 
 

This week's primary foreign investment news
from our ASEAN, China, India, Russia, Belt & Road and Vietnam Briefings.
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HEADLINES: There are two very contrasting geopolitical events to consider this week in terms of repercussions for Asia; being the G7 meeting in Germany and the BRICS summit in China. We provide analysis of both.

Elsewhere, we look into a China plus One alternative with Vietnam’s Dong Nai Province, look at the potentially very generous ‘digital nomad’ visa being considered by Indonesia, and examine China’s investment opportunities in Cloud computing. We advise on China’s new e-fapiao laws, Indian digital contracts and new GST compensation rules, as well as why Russia is turning towards the BRICS supply chains. As usual, we complete the issue with a look at global BRI investment trends.

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GEOPOLITICS
China Has Urged The West To Read The New 14th BRICS Summit Declaration Carefully. This Is What It Says.
The BRICS nations (Brazil, Russia, India, China, and South Africa) have been meeting in China for the 14th annual summit. The contrasts with the G7 could not be more different – one the grouping of mainly white, powerful Western nations, representing contemporary global leadership, the other a grouping of globally powerful emerging markets wanting a larger say in the developing world. The BRICS nations differ from the G7 in two main factors, most notably in the populations they serve – 3 billion as opposed to the G7’s 987 million (including the EU), and GDP, where the G7’s GDP is currently US$33.93 trillion and the BRICS about US$23.5 trillion.
 
G7 Plans To Deliver US$200 Billion Per Annum Until 2027 To Global Infrastructure Finance
The Partnership for Global Infrastructure and Investment appears mainly to be rehashed old schemes previously known as “Build Back Better World” and the “Global Gateway”. So, what is actually new?
 
ASEAN
Vietnam’s Dong Nai Province: Investment Hub of the South
Vietnam’s Dong Nai province, located in close proximity to Ho Chi Minh City is an investment hub, part of Vietnam’s southern key economic region. Industrial zones remain the backbone of Dong Nai’s investment attractiveness. In 2021, foreign firms invested US$1.17 billion in Dong Nai’s industrial zones. 7,537 hectares of new industrial zones are expected to be added to the current 10,200 hectares. Dong Nai has attracted investments in electronic component manufacturing, textile and garment production, and tech-intensive industrial goods manufacturing.
 
Indonesia Ponders Issuing Five Year, Tax Free ‘Digital Nomad’ Visas
Indonesia’s government is debating whether to issue nomad visas to attract digital nomads to the country. Holders will be eligible to stay for five years, tax-free, but only if they can prove their income is derived from outside Indonesia. If approved, the nomad visa will be one of the longest in the world, with most countries only offering up to 90 days for digital nomads.
 
CHINA
China’s Cloud Computing Market: Developments and Opportunities for Foreign Players
China’s cloud computing market is the fastest-growing in the world. It is predicted that the global share of the Chinese public cloud service market will increase from 6.5 percent in 2020 to over 10.5 percent in 2024. Assessing the latest developments in the sector is essential for foreign businesses interested in entering the Chinese market. We highlight the developments and opportunities for foreign cloud service providers and provide insight into the current trends in China.
 
E-Invoicing Push in China 2022: The Fully Digitalized E-Fapiao Program Expanded
Fully digitalized e-fapiao, which are electronic invoices (e-invoices), is a completely new type of electronic invoice, which is different from the previously introduced normal value-added tax (VAT) e-fapiao and the traditional paper fapiao but has the same legal effect. We discuss the expansion of e-invoicing in China as the digital e-fapiao program widens its pilot roll-out with unique features.
 
INDIA
India Extends GST Compensation Cess Levy till March 2026
To repay the liquidity support given to state governments during the Covid-19 period, India’s federal government has extended the timeline for GST compensation cess levy by four years until March 31, 2026. The move will impact sectors like automotive and tobacco through higher tax rates. While it will be levied on imported goods, exporters will be eligible to claim input tax credit refund relating to goods exported.
 
What are Smart Contracts and Are They Legal in India?
A smart contract is any contract that is digitally equipped and that automatically executes the terms of an agreement by itself. The term describes computer program code that can facilitate, execute, and enforce the negotiation or performance of an agreement using blockchain technology.
 
RUSSIA
Russia Relocating Trade From EU To BRICS
President Vladimir Putin said at last week’s BRICS Business Forum that Russia was in the process of rerouting its trade and oil exports towards countries from the BRICS group of emerging economies in the wake of Western sanctions over Ukraine. The BRICS countries comprise Brazil, Russia, India, China and South Africa. Russia is forging closer ties with these markets, seeking to supplant the markets it lost in the row with the European Union and the United States.
 
BELT & ROAD INITIATIVE
Belt and Road Weekly Investor Intelligence #87
China, which pledged investments of US$400 billion over the next ten years to Muslim nations at the Organisation of Islamic Cooperation in March, has stated it will ‘align’ its BRI expenditure with Egypt’s Vision 2030 development scheme.
 
 
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UPCOMING EVENTS IN THIS MONTH
 
US Broadcast: An Alternative Path to Market Entry in Asia: PEO in China, Vietnam, Singapore, Indonesia, and India
Webinar | Wednesday, June 29, 2022 | 9:00 AM PDT / 12:00 PM EDT
 
RCEP: Opportunities for Hong Kong and the Greater Bay Area
Webinar | Thursday, June 30, 2022 | 4:00 PM China / 3:00 PM Vietnam / 10:00 AM CET
 
Maximize Profits in Your Dividend Repatriation by Leveraging the PRC-HK DTA
Webinar | Wednesday July 6, 2022 | 4:00 PM China / 3:00 PM Vietnam / 10:00 AM CEST
 
The RCEP Advantage: Part 4 – The Future of Trade in China 
Webinar | Thursday, July 7, 2022 | 11:00 AM China / 10:00 AM Vietnam
 
Talent Acquisition in a Post Covid World
Webinar | July 12, 2022 | 2:30 PM India Time / 4:00 PM Vietnam Time / 5:00 PM China Time
 
Vietnam's Key Investment Industries and Destinations 2022 - Part 3: Vietnam's Manufacturing Industry - Hot Spot Dong Nai
Webinar | Thursday, July 14, 2022 | 3:00 PM Vietnam / 4:00 PM China / 10:00 AM CET
 
 
 
 
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