Vietnam’s Economic Zones
According to the Focus on Foreign Investment, the Vietnam government has established 313 Economic Zones, including 292 Industrial Zones, 18 Special Economic Zones and 3 Technology Industrial Zones. These economic zones provide almost 40% of Vietnam’s total exports.
Special Economic Zones in Vietnam were established by Prime Ministerial Approval and have special characteristics: 1) They must be larger than 10,000 hectares; 2) They much have high potential to be industrial centers and be located close to logistics hubs.
Special Economic Zones in Vietnam can be categorized in 3 ways as follows:
1. Export Processing Zone (EPZ): Focus on export goods
2. Industrial Zone (IZ): Focus on domestic goods
3. High-Tech Zone (HTZ): Focus on R&D and high-technology products
Source: AEC Connect Newsletter (Issue: JAN-MAR 2016)
Establishing a Business in Cambodia
Before registering, entrepreneurs must deposit total assets of at least 4 million riel (or USD 1,000). There are no restrictions for foreign companies except on owning land. Also, company names must be re-checked by the Commercial Registration Office of the Ministry of Commerce, and the company should be publicly announced in the newspapers.
The Council for the Development of Cambodia (CDC) has the right to evaluate and approve projects that request investment support that are valued at less than USD 50 million. If the project’s value exceeds that, approvals must be considered by the Prime Minister’s Office.
Source: AEC Connect Newsletter (Issue: APR-JUN 2015)
Construction Sector Boosted in Indonesia
The construction sector highly supports rapid economic growth in Indonesia. There is an assumption that the construction sector will increase by 20%, i.e. by USD 4.5 trillion over the next five years.
A higher population leads to greater demand for houses. Along with higher incomes and purchasing power, Indonesian people are being persuaded to live in high-quality buildings and safe areas. Apart from construction of accommodation, 90 buildings that are higher than 150 meters have been built. Most of them are located in the capital city, Jakarta. Also, 28 construction projects are currently being built, and another 11 projects are waiting for approval.
Source: AEC Connect Newsletter (Issue: JUL-SEP 2016)