An Indonesian product containing, for example, Australian coins could expect tariffs elsewhere in the Asean Free Trade Area. The China-Australia Free Trade Agreement (FTA) officially entered into force on December 20, 2015. Once fully implemented, 96% of Australian products will arrive in China duty-free, while 100% of Chinese exports to Australia will be processed duty-free. 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. «It will also show the world that ASEAN, together with ASEAN partners, says no to protectionism and «yes to free trade.» All RCEP countries have concluded the negotiations and will sign the RCEP agreement on Sunday [5 November] at the 4th RCEP summit, Malaysian Minister of International Trade and Industry Azmin Ali said in a statement on 11 November. Many Member States have already concluded free trade agreements, but there are restrictions. The pact reduces tariffs, opens up the services sector and establishes common rules on trade within the bloc. The agreement covers trade, services, investment, e-commerce, telecommunications and copyright. China`s free trade agreements include Hong Kong and Macao, with the Hong Kong version known as the Closer Economic Partnership Agreement (CEPA), whose regular updates on its benefits, which we have long talked about on China Briefing. The CEPA agreement between China and Hong Kong offers many advantages to foreign investors who create local businesses in Hong Kong, which reduce (after a qualification phase) the source taxes and dividends on funds that are re-injected from the mainland to the territory. Macau offers similar benefits and especially in the services sector and the financial sector – extremely useful given Macau`s evolution towards an important tourist and casino destination.
Australia hopes the trade deal will improve relations with China, its largest trading partner.