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Business in regions
Business in Singapore
Singapore is a city-state in Southeast Asia. During a short history of its existence, Singapore has managed to achieve amazing results in various areas such as the development of medicine and health care, construction and education, information technology and innovation. Its success in business development is the most impressive.
From year to year, Singapore holds top positions in international business ratings in the following categories: ease of doing business, best investment potential, competitiveness of the economy, labor market flexibility, lack of corruption and the development of high technologies.
- 1 in the world for investment potential. BERI Report 2014-April 2014;
- 1 in the world for the ease of doing business. Doing Business Report 2014 by the World Bank;
- 1 in the world for labor market efficiency and flexibility. WEF Global Competitiveness Report 2010-2011 - Labor Market Efficiency;
- 1 in the world for the efficiency of trading system. WEF Global Competitiveness Report 2010-2011. Goods Market Efficiency;
- 1 in Asia and No.2 in the world for the competitiveness of the economy. Global Competitiveness Report 2013-2015 by the World Economic Forum;
- 1 in the world for being the least corrupt country. Transparency International Corruption Perceptions Index (CPI) 2010;
- 1 in Asia and No.2 in the World for the development of high technologies and the Internet. WEF Global Information Technology Report 2010-2011;
- 2 in the world for the protection of intellectual property. WEF Global Competitiveness Report 2012.
Singapore also has a unique transport infrastructure that includes:
- Changi Airport that wins the title of the best airport in the world for the last 13 years (Business Traveler Award 2013);
- Singapore port that is the third largest seaport in the world. In 2011 it received the title of the best port in Asia (Asian Freight & Supply Chain Award).
Business in Malaysia
The country's economy is actively developing. GDP grows at about 6% each year. The peak of foreign investment in Malaysia was in the 80s and 90s, boosting the growth of the industrial sector, in particular - electronics. Now their volume has decreased, since the domestic market is sufficiently saturated with capital.
Malaysia is in the TOP-5 countries in Southeast Asia and ranks 31st in the world in terms of economic development. Exports of oil, gas, rubber and palm oil assured the unprecedented economic growth of the country.
Malaysia has used rich natural resources and a vast domestic market, macroeconomic stability, a liberal trade regime and an effective legislative system to attract foreign direct investment. The government of the country uses external investments to implement the strategy of economic development by attracting foreign technologies and capital.
Malaysia is one of the few countries in Southeast Asia that can offer foreign investors profitable terms in comparison to the neighboring states in the region. A well-developed legal framework in English, favorable conditions for foreign capital, a stable economic situation, a well-developed infrastructure are the main aspects for attracting foreign direct investment.
However, the Malaysian government carefully controls the inflow of foreign investment to ensure that a foreign investment project in a particular industry is beneficial to the domestic economy and social goals. Such control over foreign investment is associated with the lack of a common investment legal framework. However, numerous exemptions and tax breaks assure favorable conditions to generate the inflow of foreign investment.
Business in Vietnam
Over the past 20 years, Vietnam’s economy has grown at an average rate of 7.8% per year, while per capita income has grown fourfold. GDP is growing steadily at 5% per year as well as the income of the Vietnamese. Industrial production, investment and consumption are also developing. Inflation is about 6% per year, and unemployment is at 3.6%. The structure of the Vietnamese economy is dominated by services, industry and agriculture.
Oil and gas production, mining and other industries are developing rapidly in the country. Now in Vietnam, there is a steady demand for professions related to the extraction of oil and other minerals, geological exploration, and shipbuilding. To attract foreign specialists, the Vietnamese government is implementing special programs and simplifying the procedures for issuing work visas.
Now the attention of many investors and real estate market specialists is focused on Vietnam. since In July 2015, the authorities introduced legislative changes, allowing foreigners to buy real estate for a personal use. Vietnam also attracts large foreign companies, including CapitaLand, the largest developer of Southeast Asia, and Mapletree Investments. Vietnam offers high-quality real estate which is much more expensive in other countries.
Business in Thailand
Thailand is one of the world's leading exporters of rice, fruit and rubber. In addition, the state is famous for its natural gas deposits, developed industries and agriculture. Almost all economic life is concentrated in the southern part of the Kingdom, where the major cities are located.
Thailand is a country attractive enough for foreign investors and one of the leaders in terms of investment in the Asia-Pacific region. Although the legislative regulation of investment in Thailand is quite liberal, there are some restrictions on foreign investment in a number of segments of the economy. Trying to attract foreign investors, the Thai government reduced corporate income tax from a maximum rate of 30% in 2011 to 23% in 2012, and finally to 20% from January 1, 2013.
Thailand is very attractive for foreign investments due to the following factors:
- diversified economy with strong manufacturing industries: automotive, electronics, jewelry, chemicals and agriculture;
- GDP growth, the rate of inflation is not higher than in the EU;
- 49th place in the world in terms of the ease of doing business;
- 12th place among 42 states of the Asia-Pacific region in terms of economic freedom;
- unlimited repatriation of capital, profits, interest and dividends;
- unlimited amount of foreign currency that can be transferred to Thailand;
- rather low labor costs compared to other countries of Southeast Asia with high quality of Thai goods and services;
- Infrastructure is one of the most developed in Asia.
The law does not regulate the minimum size of the share capital. Licensing remains one of the main requirements for registering your own company. The new military government introduced price controls and expanded control over state-owned enterprises in such sectors as transport, agriculture, banking, energy, telecommunications, and agriculture, which account for up to 40% of GDP.
The average tariff rate is 4.9%. Tariffs for imports of agricultural products remain quite high. The state restricts foreign investment in many sectors of the economy. The financial system is in a difficult situation due to the political situation in the country.