ASEAN Foreign Office
UNLOCK BUSINESS GROWTH POTENTIAL IN NEW MARKET
Free Trade Area (AFTA)
The AFTA covers trade in goods, investment, and services.
It is made up of three agreements, namely the ASEAN Trade in Goods Agreement (ATIGA), the ASEAN Framework Agreement on Services (AFAS), and the ASEAN Comprehensive Investment Agreement (ACIA)
EXPANSION TO SOUTHEAST ASIA – Malaysia & Vietnam
Malaysia is an attractive market with strong economic fundamentals. Its GDP was RM1.35 trillion (S$445 billion) in 2017, a 5.9% increase from 2016. This marks the seventh year that Malaysia has enjoyed GDP growth of above 4%.
Start up prices in Malaysia are among the cheapest in the world.
No business restrictions on Malaysian corporations on repatriation of capital, profits, dividends, and royalties
Lower rental prices and competitive water and electric utility prices
Lower minimum Wages i.e. average wages is $2.50 USD per hour.
The wage rate in Malaysia is 40% less than that of Singapore.
If any dividend is paid outside of Malaysia there will not be Withholding Taxes by the authorities.
Incentives and subsidies are awarded to promote the company formation and
Capital investment from the authorities
Why Vietnam ？
Vietnam has one of the fastest-growing economies in the world.
With consistently strong annual growth of over 6% since the start of the decade, Vietnam has become an attractive destination for many investors
Vietnam’s GDP grew by 6.8% in 2017– the highest figure since 2011
Vietnam became the 150th member of the World Trade Organisation (WHO) in 2007. World Trade Organization (WTO) agreements regulate foreign ownership for most business lines
Vietnam allows 100% foreign ownership of a business in most industries
One of the key advantages of Vietnam over other ASEAN countries is its young demographics
A population of 95 million means a strong purchasing power. With an emerging middle class, Vietnam holds great market growth potential
On top of this, the low setup cost is another big contributing factor to investing in Vietnam. Compared with many other countries,
Competitive labour costs another reason why businesses are choosing Vietnam especially in the manufacturing industry