Singapore, with its wealth of financial and other services, also has a free trade agreement with China. This contract, signed in 2009, focuses on the services sector, in addition to individual income tax benefits. Singapore intends to increase its population by an additional 2 million people and many of them are expected to be prosperous Chinese nationals on the continent. Among the benefits to businesses is the reduction in withholding tax for a large number of services, including royalties. This is one of the reasons why Singapore is becoming a regional investment centre in China and Asia and is receiving more and more Chinese foreign investment going in the opposite direction, to Singapore and to reinvest throughout Asia. Since foreign investors are automatically considered Singaporean companies when setting up a subsidiary, they can also access Singapore`s impressive range of international tax treaties – including many other free trade agreements and more than 80 bilateral double taxation agreements. “While the United States is currently focusing on domestic policy issues, including the need to fight the pandemic and rebuild its economy and infrastructure, I`m not sure the rest of the world is waiting for America to get its home back in order,” said Jennifer Hillman, senior trade and international political economy official at the Council on Foreign Relations. “I think there needs to be reactivity measures for what China is doing.” The Free Trade Agreement between China and Iceland came into force on 1 July 2014. Iceland is the first developed European country to recognize China as a complete market economy and the first European country to negotiate a free trade agreement with China. Switzerland (which has a customs union with Liechtenstein, which is sometimes included in agreements) has bilateral agreements with the following countries and blocs: Chinese Trade Minister Gao Hucheng (l.) shakes hands with his South Korean counterpart Yoon Sang-jick after the signing of the agreement in Seoul on 1 June 2015. [Xinhua] In this issue of Vietnam Briefing Magazine, we present to our readers production in Vietnam as a key part of their business strategy in the ASEAN region and beyond.
In particular, we explain the new ASEAN Free Trade Area, outline what foreign investors can look forward to in creating their production presence in the country, and present the country`s main tax points. The agreement, the Comprehensive Regional Economic Partnership (R.C.E.P., is limited in scope. Yet it has considerable symbolic weight.