Afghanistan (top)
In 2007, Afghanistan’s licit economy grew by a staggering 13.5%, making
it one of the fastest growing economies in the world and the fastest in
South Asia. This growth was led largely by impressive gains in
Afghanistan’s licit agricultural sector, but also gains in all its primary
exports including raisins, carpets, wool, pistachios, almonds, onions, and
gemstones. Domestic industries such as telecommunications, construction,
building materials, financial services, and others are also gaining
quickly.
Foreign investment inflows and concessional borrowing has increased. The
government hopes to rebuild 6,000 kilometers of roads, employing thousands
of workers at US$2 per day. Mining and extractive industries are expected
to attract significant foreign direct investment over the next few years .
Afghanistan has largely untapped reserves of iron, copper, coal,
hydrocarbons, quarry materials, and gemstones. A Chinese company acquired
the Anyak copper mine in late 2007 and plans to invest US$3 billion in the
project. Anyak reportedly has at least 13 million tons of copper deposits,
making it the world's largest undeveloped copper mine .
The banking sector is rapidly changing with private banks registering a
robust growth in their deposit base and expanding their lending, which
reduces the possible role for the state-owned banks. Among state-owned
enterprises, 58 have been identified for privatization.
Armenia (top)
Agriculture accounts for about one third of GDP. Cattle, sheep and pigs
are the main forms of livestock. The services sector and construction have
enjoyed strong rates of expansion, helping to drive the economy. Output of
services rose by 9.0% in 2008 while construction grew by 7.3%. Financial
reforms have strengthened the banking sector.
Industry accounts for a third of GDP. Approximately 70% of large
enterprises and 80% of small enterprises have been privatized. The
government is committed to additional reforms intended to reduce the costs
of doing business and encourage more competition. Reforms in the tax
regime and customs procedures are planned, such as simplifications in the
VAT regime that were introduced in 2009 .
Rapid economic expansion and improvement will occur with the resolution of
the conflict with Azerbaijan over Nagorno-Karabakh. This will allow
Armenia's closed borders with Azerbaijan and Turkey to reopen, a move that
should significantly boost trade. Any push for this agreement is welcomed.
Armenia is interested in purchasing natural gas from Iran. In 2005,
construction began on the Iranian portion of an Iranian-Armenian pipeline.
Initially, Armenia will receive 38 billion cubic feet per year with plans
to double the volume of imports by 2019 . This is a significant pipeline
because it allows Armenia to access Iran and Turkmenistan's gas exports
without having to use Caspian Sea export routes.
Azerbaijan (top)
The service sector grew at a double-digit pace in 2009, with transport
and communications being the main contributors. Trade and transit
activities have also shown healthy gains, which continuously welcomes
foreign investment.
Natural gas production in the future is expected to come from the
development of the Shah Deniz field. This offshore field is thought to be
one of the world's largest discoveries of the last 20 years.
Much of the economic wealth is concentrated in the city of Baku. The
capital is already home to more than a quarter of the national population
and internal migration continues at a furious pace .
Agriculture employs almost 40% of all workers. About half of all
households depend on farming as their primary source of income. With good
weather and generous government support, farm output rose by more than 7%
in 2009. Output of wheat, fruit and vegetables are all growing rapidly .
Azerbaijan, Georgia and Turkey are building a new rail line that should
boost trade between the three countries. Baku, Azerbaijan's largest city
and port, has the potential to become a major regional transportation and
communications hub for the Trans-Caucasus and Central Asian republics.
Estimates of Azerbaijan's proven crude oil reserves range between 7 and 13
billion barrels. Most of these reserves are located offshore in the
Caspian Sea. Oil production is expected to rise sharply through 2010. The
Azeri-Chiraq-Guneshi offshore oil field accounts for about 90% of all oil
exports .
Employment regulations have been modernized, improving labor flexibility
and the regulatory environment has been relaxed. In 2009, officials
announced a new program to encourage development of the private sector. It
includes cuts in the profits tax and the VAT.
Bangladesh (top)
Export processing zones have been established in Chittagong, which is
the country's major port, Dhaka and Comilla. The list of tax incentives is
being review and will be modified while laws governing income tax and
value-added tax will be updated in an effort to expand the tax base and
boost tax revenues.
The government hopes for annual growth of around 8% over the medium term.
International analysts expect growth of around 7% per year once a recovery
begins. The economy should be driven by improvements in agriculture and
growth of the service sector in the longer term .
The banking system is growing following the entry of several foreign banks
and more stringent regulation. The service sector also continues to grow
at a healthy pace with a strong performance by retailing, transport and
the wholesale trade.
There has been some improvement in ports, roads, railways and waterways
but much more work is needed. This creates opportunity for foreign
investment and later opportunity for market growth with ease of
transportation.
In 2005, the government agreed to allow a proposed 559-mile pipeline, to
transport natural gas from Myanmar to India, to pass through its territory
. In 2010 this is still a topic of discussion. Independent analysts
recently estimated that Bangladesh contains an additional 32.1 trillion
cubic feet in undiscovered natural gas reserves .
Brunei (top)
The country is a member of ASEAN Free Trade Area (AFTA), which is a
trade bloc agreement supporting local manufacturing in all ASEAN
countries.
Per capita GDP places Brunei among the World Bank's high-income non-OECD
group of countries, with substantial income from overseas investment
supplementing income from domestic sources. Under a currency board
arrangement, the exchange rate of the Brunei dollar is maintained at par
with the Singapore dollar .
Brunei would like to turn itself into a major shipping hub and diversify
away from hydrocarbons into areas like tourism . The country boasts
unspoiled tropical forests, beaches, shipwrecks, the world's largest
palace and gilded mosques, among other things and energy-intensive
industries like petrochemicals, oil refining and aluminum smelting.
The government strongly encourages foreign investment. New enterprises
that meet certain criteria can receive pioneer status, exempting profits
from income tax for up to 5 years, depending on the amount of capital
invested. The only significant taxes are on corporate profits. There is no
personal income tax or capital gains tax .
The country is located close to vital sea lanes through the South China
Sea, linking the Indian and Pacific Oceans and thus it is potentially
well-positioned to take advantage of international shipping through the
region if it can develop into a shipping hub.
To diversify the economy, the Brunei Economic Development Board is
supporting several projects and encouraging foreign investment. Initial
construction on a US$400 million methanol plant, fed by natural gas, was
started in 2007 and the plant is expected to come on line in 2010. There
are plans to build a power plant in the Sungai Liang region to power a
proposed aluminum smelting plant. A giant container hub at the Muara Port
facilities is also in the planning stage .
Cambodia (top)
The service sector has experienced robust growth, following a rebound
in tourism. Foreign investment has financed an increase in construction in
both residential and commercial buildings, which affects the service
sector including tourism.
Access to credit is improving and the volume of credit has risen, which is
crucial for small and medium-sized firms which make up 90% of the total .
The government has introduced a number of measures to bolster the private
sector and reduce the cost of doing business making it more attractive to
foreign businesses.
China (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
China is also a member of the World Trade Organization (WTO) since 2001.
By 2015, the country will have over 146 million people over the age of 65,
up from just 45 million in 1980.This creates foreign investment
opportunities for companies with this demographic as its target market.
China's GDP should rise by 8.5% in 2009 while growth of 9.0% is expected
in 2010. Stronger domestic demand will be the main economic driver. In
2010, China could surpass Japan to become the world's second largest
economy.
China is the world's biggest producer and consumer of cotton and coal.
Farm output is expected to rise by about 3% in 2009. Rice is the main food
crop, but tea, sugar and fiber crops are all important cash earners. With
its many resources, China is Africa’s third largest trading partner.
Due to his large population, it is the world’s third largest trading
nation and it has the most cell phone subscribers worldwide. The country
has 627.26 million subscribers in total, or a 62.20% penetration rate.
China Mobile, China Unicom, and China Telecom are the main companies used
in China .
China plans to become a major player in the global car market. The Chinese
government has designated the automotive industry as a pillar industry for
the country's economic growth. It has a target that vehicles made by
Chinese manufacturers will account for more than half of China's vehicle
sales by 2010.
China is the world's second largest consumer of petroleum products after
the US. The country's expanding energy needs represents more than a third
of the world total increase in demand. Between 2005 and 2010 the
government has set a goal of increasing energy efficiency by 20%. Recent
offshore oil exploration interest is focused on the Bohai Sea area,
believed to hold more than 1.5 billion barrels in reserves, and the Pearl
River Mouth area. The country has also been acquiring interests in
exploration and production abroad. This includes oil concessions in
Kazakhstan, Venezuela, Sudan, Iraq, Iran, Peru and Azerbaijan .
Fiji (top)
It is a member of the Melanesian Spearhead Group (MSG), which is a
sub-regional trade treaty established to foster and accelerate economic
development through trade relations.
Fiji is one of the more developed of the Pacific island economies,
although it remains a developing country with a large subsistence
agriculture sector. For many years, sugar and textile exports have driven
its economy. Neither industry is competing effectively in globalized
markets , therefore the interim government has offered tax incentives to
encourage investment in export industries. Tourism is the leading sector
of the industries which Fiji has to offer. Its receipts account for 19% of
GDP , however they continuously seek foreign investment for improvement in
items such as infrastructure to increase tourism.
The sugar industry provides a direct source of employment for more than
10% of the economically active adult population. The EU is cutting the
subsidized price it pays for white sugar from the Fiji Islands and others
islands by 36% during 2006-2010, which creates opportunity for other
foreign trade opportunities and investments .
The most important manufacturing activities are the processing of sugar
and fish. Since 2000 the export of still mineral water, mainly to the
United States, has expanded rapidly. By the end of 2008, water exports
totaled around U.S. $62.4 million, an increase of 11% over 2007 .
French Polynesian (top)
The territory substantially benefits from development agreements with
France aimed principally at creating new businesses and strengthening
social services. The French Polynesian President has announced he will be
seeking compensation from the French government, which will be used, along
with foreign investment, to make economic improvements .
Services account for the bulk of GDP . Tourism is by far the most
important activity and is a primary source of hard currency earnings. The
country is particularly popular with French, German and American visitors.
The small manufacturing sector accounts for almost a fifth of GDP. Timber
is grown for export. The country's industries consist mainly of pearls,
handicrafts, fruit canning, soap-making with coconut oil, and brewing.
Cultured black pearls are French Polynesia’s leading export, accounting
for more than 50% of export revenues. Copra, vanilla and fruits are grown
for the export market, and pineapples, bananas, mangoes, paw paws and
cereals for the home market .
Hong Kong (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
Hong Kong occupies an important strategic position at the mouth of the
Pearl River where it conducts an active trading business on behalf of the
People's Republic of China. Hong Kong, which is now part of China,
includes the Kowloon island area and the so-called New Territories. It
also has the world's largest cargo airport and the second largest
container port. Over the past decade, the economy has been successfully
transformed from a manufacturing center to a service-based economy. Total
trade is more than four times GDP, underlining Hong Kong's dependence on
this component .
Hong Kong is regarded as one of the world's freest economies. It has no
minimum wage law and the government opposes the introduction of one.
Instead, officials advocate a voluntary wage scheme for employers of
low-paid workers. The government is providing loan guarantees to small and
medium-sized businesses faced with tighter credit conditions. There is no
significant public debt and no tax on dividends, capital gains or on
profits and earnings from outside Hong Kong. Personal and corporate income
taxes were cut slightly in 2008.
Services account for around 90% of GDP and drive the economy on the supply
side. The steady stream of multinational and Chinese companies
establishing corporate offices in Hong Kong is likely to be sustained. The
Mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA) has been
expanded to cover 40 service areas. These measures become effective in
2009 and allow Hong Kong companies to set up businesses and expand their
services on the mainland .
India (top)
India-ASEAN trade agreement was completed in 2010. Trade liberalization
between India and the ASEAN countries will expand exports for both
parties, helping to lessen their dependence on Western markets, create new
jobs and open up business opportunities for companies in India and the
ASEAN .
As part of its negotiations with the WTO, Delhi has brought into force a
trade regime that gives stronger and broader protection to intellectual
property rights. The move should help to deflect repeated disputes with
several multinationals and western governments.
India is the world's fifth largest energy consumer and plans major energy
infrastructure investments to keep up with increasing demand. Also the
government plans to boost its spending on roadway improvement in 2009 in
an effort to reduce transportation costs.
India will replace China as the world's most populous country in less than
20 years. In India, growth should be around by 5.4% in 2009 and jump to
6.4% in 2010. Stronger domestic demand will be the main economic driver.
The country’s expanding middle class and education system, along with the
deregulation of the service sector, give the country great potential for
new business opportunities. New Delhi's goal is to increase growth to 4%
in 2007-2012 by raising yields and improving credit availability.
In manufacturing, the Tata Group is pushing ahead to develop a cheap new
car which it hopes to sell for under US$3,000 in India. Planners want car
production to reach US$145 billion by 2016, employing 25 million people
and generating 10% of GD P.
The export-oriented information technology and business process
outsourcing industries continue to perform well. There is a growing trend
among multinationals to do more advanced work in the Indian market. GM and
Suzuki have both opened design centers and Suzuki plans to spend more than
US1.8 billion in R&D and marketing. India is seen as the eastern
hemisphere hub for 24-hour operations, operating in close proximity to the
world’s largest emerging markets.
The policy to establish Special Economic Zones (SEZs) is surrounded by
controversy. The plan was to provide pockets of adequate infrastructure to
stimulate economic activity and pull in foreign investment. The government
hopes the SEZs would attract FDI and has already approved more than 270
new SEZs in 2006.
Indonesia (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The country is a member of ASEAN Free Trade Area (AFTA), which is a trade
bloc agreement supporting local manufacturing in all ASEAN countries.
Indonesia is a member of the Organization of Petroleum Exporting Countries
(OPEC), which secures an efficient, economic and regular supply of
petroleum to consumers, a steady income to producers and a fair return on
capital to those investing in the petroleum industry. Indonesia is the
only Asian member of OPEC and currently has proven oil reserves of 3.7
billion barrels, down 13% since 1994. Production has been falling in
recent years due mainly to the ageing of oil fields. The new Cepu field in
Java is estimated to hold reserves of at least 600 million barrels of oil.
However, despite new field and other smaller discoveries, Indonesia's oil
production is not likely to rise markedly due to the continuing decline of
mature fields .
Indonesia is the largest Muslim state in the world and is one of the most
geographically dispersed nations . This creates opportunity for foreign
looking for new, diverse markets.
The service sector accounts for more than two-fifths of GDP. The sector
grew by more than 7% in 2009. Transport, communications and utilities
drove the expansion. The boom in utilities is due mainly to a government
program to switch to gas from more expensive fuels. Agriculture employs
more than two-fifths of the work force. Indonesia is the world's third
largest producer of rice and the leading producer of palm oil .
Tax waivers were introduced in 2009 to support private consumption and
selected industries. The corporate tax schedule will be cut by three
percentage points in 2010 in an effort to boost investment .
Indonesia saw growth of 4.0% in 2009. The World Bank expects growth of
around 5.4% in 2010 while the IMF forecasts gains of 4.8%. In 2009, the
economy was driven by strong gains in private consumption and a surge in
post-election spending. Stronger prices for key commodity exports should
provide an additional boost to the economy .
Japan (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The country’s leading automakers, Honda and Toyota, continue to expand
market share. Japan is also the world's largest maker of machine tools.
Japan contains almost no oil reserves of its own, but it is the world's
third largest oil consumer after the U.S. and China. The country's goal is
to cut oil consumption to 40% of total energy consumption by 2030 .
Corporate restructuring led to improved profitability in many industries.
This allowed the initial export-led upturn to develop into a full-fledged
expansion driven by domestic demand.
Kazakhstan (top)
Kazakhstan is the richest country in Central Asia even though the
majority of the population lives on $2 a day. Over the longer term,
Kazakhstan's economic prospects are very good. Growth rates should average
between 6% and 7.5% in 2011-2014 .
The government has been pushing development of natural resources strongly.
Uranium production is important and should reach 18,000 tons per year,
which is a quarter of world supply by the end of the decade. The country
realized foreign investments of up to KZT25 billion in 2009. These funds
went to improve the railway system and other infrastructure. A Canadian
firm is also expected to begin production of railcars in Kazakhstan in the
near future .
Revisions in the tax code for non-extractive industries should help to
boost competition. The corporate profit tax was cut from 30% to 20% in
2009. There are also plans to introduce a flat 10% personal income tax and
cut payroll taxes by up to 30%. An objective of these moves is to
streamline taxes in order to make corruption more difficult.
Kazakhstan has huge amounts of coal, mineral and metal reserves. Its
growing petroleum industry, which accounts for roughly 40% of the
government's revenues and about half of its export revenues, is the
backbone of the economy. Other measures to bolster the business
environment included revisions to the law on monopolies and greater powers
for the agency regulating them .
The government has scheduled liberalization in railroads, power, and
telecoms. Officials have adopted a plan for the development of industry
known as the Innovative-Industrial Development Strategy. The plan, which
is scheduled for completion 2015, singles out specific industries such as
engineering, construction materials, food, logistics services, metallurgy,
textiles, and tourism for favorable treatment .
Agriculture is small-scale. Grain and animal husbandry are the two most
important activities in the agricultural sector. Kazakhstan is one of the
world's largest grain producers and a record grain harvest was recorded in
2009.
Kazakhstan's combined onshore and offshore proven hydrocarbon reserves
have been estimated between 9 and 40 billion barrels, which is comparable
to some of the more important OPEC members. In 2007, the government signed
an agreement with China to build pipelines from the Caspian Sea to China .
Kiribati (top)
The country is a member of the Pacific Islands Forum (PIF), which is an
inter-governmental organization which aims to enhance cooperation between
the independent countries of the Pacific Ocean and represent their
interests.
Currently, the government hopes to develop the large but remote island of
Kiritimati or Christmas Island, which comprises over 70% of the total land
area of Kiribati and it is the largest coral atoll in the world and makes
it huge tourist attraction.
Fishing license fees are a major source of foreign exchange, accounting
for more than four-fifths of non-tax income. Revenue from this source rose
significantly in 2008. This income is mainly generated by ships' crews
working overseas, access fees paid by tuna-fishing fleets and the Revenue
Equalization Reserve Fund, an offshore investment fund established with
royalties from phosphate .
Kiribati's small-scale economy relies heavily on its agricultural sector,
which produces copra, dried coconut albumen and fish for world markets.
Exports consist of copra, live fish for aquariums and seaweed.
Kyrgyzstan (top)
The country joined the World Trade Organization in 1998, being the
first Central Asian country to have joined.
A new tax code was introduced in 2009. It is designed to reduce the tax
burden on enterprises and bring the VAT in line with neighboring
countries. Payroll tax cuts are also planned and should help reduce
unemployment. Parliament passed new laws in 2009 aimed at reducing the
size of the black economy.
The economy continues to depend on the fortunes of the Kumtor gold mine,
which accounts for nearly two-fifths of industrial output. In the future,
depletion of Kumtor may be partly counterbalanced by the commissioning of
two new gold mines, Jerui and Taldy-Bulak. The country is also one of the
largest producers of mercury and antimony, for which there is high demand
in world markets .
The government hopes to increase oil production and is undertaking a
program of intensive oil extraction in order to meet the country's
domestic petroleum needs. This desire opens opportunity for foreign
investment and foreign market expansion.
Laos (top)
The country hopes to join the World Trade Organization in 2010 . If
successful, the move could help to improve the rather hostile business
climate. The country's trade liberalization is proceeding mainly through
fulfillment of commitments under the ASEAN Free Trade Area (AFTA). Inflows
of FDI are strong, with new investments in rubber, farming and tourism.
An increase in mining exports of gemstones, gold, gypsum, iron, lead,
potash, silver, tin, and zinc, combined with buoyant tourism receipts and
substantial foreign direct investment inflows, have raised external
reserves to around US$260 million . The country is continuously seeking
further foreign investment.
The outlook for the construction of the 'Nam Theun 2' hydropower project,
a 1,070-megawatt power plant on the Nam Theun river in central Lao
People's Democratic Republic , has improved with the Electricity
Generating Authority of Thailand agreeing to buy electricity from the
plant over 25 years, while the Sepon Copper/Gold Mine plans to expand
output. This opens opportunity for foreign investment and foreign markets.
Macau (top)
Macau is a tiny territory at the mouth of the Pearl River in southern
China. It is adjacent to Hong Kong, with which it has a ferry link. The
country consists almost entirely of a port and two small islands. Chinese
officials hope to turn Macau into a service hub for the southern part of
the Pearl River Delta.
Macau's principal industry is tourism, which attracts visitors from all
over the world to its gambling centers. Gambling taxes account for almost
two-thirds of all government revenues. A rapid rise in the number of
mainland visitors, because of China's easing of restrictions on travel,
has driven the economy. Foreign investment and an influx of tourists from
mainland China have boosted growth. GDP has increased in real terms by
130% since the turn of the century and unemployment is down to around 3.6%
.
In 2007, Macau and mainland China signed a new accord known as the Closer
Economic Partnership Arrangement, which opens up huge markets for Hong
Kong goods and services, greatly enhancing the already close economic
cooperation and integration between the Mainland and Hong Kong . This is
the fourth CEPA to be negotiated. It applies to 17 areas of economic
activity and introduces an additional 11 sectors to the list of
liberalized services for Macau companies in mainland China.
Malaysia (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The country is a member of ASEAN Free Trade Area (AFTA), which is a trade
bloc agreement supporting local manufacturing in all ASEAN countries.
Malaysia, one of the largest countries in the Asia-Pacific group,
comprises the 11 states of Peninsular Malaysia, where the bulk of the
population lives.
Manufacturing makes up 27.9% of GDP and employs around 20% of the work
force. The sector is dominated by export-oriented producers of electronics
and products .
To encourage investment, the government has granted a ten-year exemption
on venture capital and introduced investment incentives in certain
regions. Additional measures were announced in 2008 to ease rules on
foreign investment in property and industrial land. This was followed in
2009 by the elimination of local-equity requirements for investors in
various parts of the service sector. The government's overriding goal is
to reach first-world status by 2020. To do so, officials hope to encourage
a shift to higher value-added sectors but this will require stricter
enforcement of intellectual property rights .
More than US$13 billion has been committed by various government bodies to
a plan to create a new metropolis at the southern tip of the country in
Iskandar. Another US$2 billion is expected to be committed in the next two
years, including nearly US$300 million in retail investment. Singapore,
whose business district is only half an hour's drive from the project, is
the biggest investor .
Malaysia has proven oil reserves of 5.5 billion barrels. Nearly all of
this oil is located in offshore fields. Petronas, the state-owned oil
company, has embarked on an international exploration and production
strategy. Petronas has invested in oil exploration and production projects
in the Middle East and Asia and has taken a stake in Rosneft, the Russian
oil producer .
Maldives (top)
The existence of so many state-owned enterprises is widespread but the
government is pushing its program for privatization. Officials hope to
turn over the Male International Airport to the private sector in the near
future. There are also plans to privatize the state fisheries and
electricity companies.
The Maldives is an outspoken supporter of international efforts to curb
global warming. Fears of a rise in global sea levels give rise to the
possibility that a proportion of the landmass could become submerged
within the next 30 years.
Mongolia (top)
Transport and telecommunications are projected to expand, with an
increase in transit trade and extension of telecoms services to the
growing urban population. Minerals, cashmere and textiles account for more
than 80% of total exports with China as its main customer .
The government has made some progress in promoting the private sector. An
anti-corruption law which is intended to strengthen the private sector has
been passed and several privatizations have been concluded. A new flat tax
on individual income was introduced in 2007. Bank supervision is being
strengthened and new requirements for deposit guarantees are being
introduced . This helps make the country more attractive for foreign
investment.
Myanmar (top)
Much of the foreign investment going to Myanmar is associated with the
oil and gas sector. Chinese firms are investing heavily in the energy
sector. They also have plans to build a pipeline from western Myanmar to
China, which will extend for 771 kilometers from Kyaukryu port to Ruili of
Yunnan province in China with a designed annual deliverability of 12
million tons at the first stage .
Foreign investment is continuously sought out for basic infrastructure,
such as roads, railways and air transportation which are needed for
further economic expansion.
Nauru (top)
The country is a member of the Pacific Islands Forum (PIF), which is an
inter-governmental organization which aims to enhance cooperation between
the independent countries of the Pacific Ocean and represent their
interests.
The Government is expected to receive approximately A$5 million a year
until early in the next decade from its investment in the Philippine
Phosphate Fertilizer Corporation (Philphos), which is the largest
phosphate fertilizer manufacturing complex in the Philippines. Philphos
began exporting to the Latin American market with an initial $ 20 million,
approximately P962 million worth of fertilizer to Brazil in 2007 .
Phosphate mining, primary and secondary reserves could last for up to 30
years. Exports of phosphate are the main economic driver. Slightly better
growth is expected in 2010 as new contracts for phosphate exports are now
in force at higher prices .
Nepal
Discussions have been under way among southern Asian nations for
development of a regional electricity grid connecting Nepal with India and
Bangladesh.
In the service sector, growth is around 7% and is broadly based with
strong gains recorded by transport, restaurants, hotels and trade. Tourism
has the potential to be a major contributor to the economy and looking for
investors.
New Caledonia (top)
The country is the world's third largest nickel producer, with over 40%
of known world deposits. Substantial new investment in the nickel industry
could more than double nickel exports. There are also reserves of iron
ore, manganese, cobalt, zinc and lead .
Export crops include copra and coffee, while sweet potatoes, bananas,
papaws and vegetables are grown for the domestic market. Cattle are raised
in various parts of the country and there are extensive timber removal
programs under way.
Pakistan (top)
Financial services and telecommunications continue to be the prime
targets of foreign investors. The effects of recent reforms and
privatization have boosted the banking system, which constitutes the bulk
of the financial sector.
The government expects farm output to grow by about 4.7% in 2009. Pakistan
is the world's fourth largest producer of cotton but farmers are still
plagued by shortages of water and fertilizer. Agriculture is the largest
part of the economy and employs nearly half of the work force. Farm output
is rising thanks to a bumper wheat crop and higher output of rice and
cotton. The country is also the world's fourth largest producer of cotton
.
The government has recorded more than US$5 billion in privatization sales
during this decade. The program has allowed the private sector to
establish new operations in areas previously reserved for the state and
has had a positive effect on the economy, particularly in banking,
telecoms, and oil and gas .
In the long term, Pakistan should see some economic benefits from its
rapid population growth. The working-age population between 15 and 64
years is steadily increasing. By 2020, Pakistan will have a potential
labor pool of 132.6 million, which is up from 42.7 million in 1980 .
A major tax reform is planned in 2010-2011. The general sales tax will be
replaced with a VAT. Exemptions in income tax, sales and excise taxes will
be reduced. Electricity tariffs will be raised to eliminate subsidies. To
support the reform, the World Bank and the IMF will provide assistance .
Papua New Guinea (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The country is a member of the Pacific Islands Forum (PIF), which is an
inter-governmental organization which aims to enhance cooperation between
the independent countries of the Pacific Ocean and represent their
interests.
It is a member of the Melanesian Spearhead Group (MSG), which is a
sub-regional trade treaty established to foster and accelerate economic
development through trade relations.
The government has cut income tax rates, given tax incentives for tourism
and raised infrastructure tax credits for agriculture. Tariff rates were
also lowered. Papua New Guinea presently has a very liberal trading
system.
The oil and gas sector has grown strongly as the Moran oil field reached
full production. Papua New Guinea has proven oil reserves of 240 million
barrels, and proven natural gas reserves of 12 trillion cubic feet (Tcf).
The country has four huge and potentially oil-filled basins offshore .
The profitability of the commercial banks is satisfactory and the asset
quality of all banks has improved, reflecting improvements in credit
procedures and the overall cautious approach to new lending. The rugged
terrain raises the costs of transportation infrastructure with less than
4% of roads are paved; however this creates opportunity for foreign
investment .
Philippines (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The country is a member of ASEAN Free Trade Area (AFTA), which is a trade
bloc agreement supporting local manufacturing in all ASEAN countries.
The Philippines has about 30 million people under the age of 15, and about
13 million of them are expected to join the labor force over the next 14
years. More than half of the unemployed are high-school or college
graduates. This creates opportunity for foreign investment or for
companies with this demographic as their target market .
Oil market deregulation, begun in 1998, continues to have a significant
effect on the industry. The government’s goal is to increase production to
60% of self-sufficiency by 2010 . Progress has also been made in the
privatization of state-owned energy companies. Approximately 40% of the
country's power-generating capacity is now in private hands.
The corporate tax rate was cut in 2009 and the government hopes to exempt
minimum-wage workers from income tax. Other tax cuts were also included as
part of the fiscal stimulus for 2009.
The Philippines is the second largest labor-exporting country in the world
after Mexico. About 7.5 million “legal” Filipinos, or almost 9% of the
total population, are classified as Overseas Filipino Workers scattered in
182 foreign countries .
The service sector, which accounts for over half of GDP, is performing
better than other parts of the economy. Growth of services in 2009 was
4.0% . Retail activity has been stable but is seeking more foreign
investment.
Samoa (top)
The country is a member of the Pacific Islands Forum (PIF), which is an
inter-governmental organization which aims to enhance cooperation between
the independent countries of the Pacific Ocean and represent their
interests.
Industry accounts for about 13% of GDP. The largest industrial venture is
Yazaki Samoa, a Japanese-owned company processing automotive components
for export to Australia under a concessional market-access arrangement.
The Yazaki plant employs more than 2,000 workers and makes up over 20% of
the manufacturing sector's total output .
New Zealand is Samoa's principal trading partner, typically providing
between 35% and 40% of imports and purchasing 45%-50% of exports. The
increasing number of Asian-owned businesses in Samoa has led the
increasing trade with Hong Kong and Japan. Australia, the U.S., including
American Samoa, and Fiji also are important trading partners. Samoa's
principal exports are coconut products, nonu fruit, and fish. Its main
imports are food and beverages, industrial supplies, and fuels .
The government spent more than ST14 million for construction of facilities
associated with the 2007 South Pacific Games, is a multi-sport event, much
like the Olympics with participation exclusively from countries around the
South Pacific. .
The Government of Samoa has a strong relationship with the Government of
the People's Republic of China (P.R.C.). The P.R.C. has provided
substantial assistance to Samoa, including an economic grant agreement for
new development projects valued at $2.6 million concluded in April 2007 .
Infrastructure work under way includes roads and schools, financed with
partner support but seeking further foreign investment.
Singapore (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The country is a member of ASEAN Free Trade Area (AFTA), which is a trade
bloc agreement supporting local manufacturing in all ASEAN countries.
The country's relations with Malaysia improved after Singaporean firms
were allowed to buy into strategic businesses in Malaysia. The
city-state's three million people are predominately Chinese while the
neighboring countries of Indonesia and Malaysia are Malay-dominated.
The country’s highly developed telecommunications systems give it a
central role in the development of the region and creates interest in
foreign investment.
The government has set a long-term development strategy for the next 15
years, which aims to establish a global and diversified economy. It also
aims to enhance Singapore's integration with other economies through
bilateral and multilateral trade arrangements. It has concluded free trade
agreements with Australia, Japan, New Zealand and USA, and is negotiating
free trade agreements with the Gulf States, Canada, Chile, China, India,
Korea, Jordan, New Zealand, and Sri Lanka.
Tourism accounts for about 6% of the economy and the city's long-term goal
is to double revenue to S$30 billion by 2015.To help further economy,
officials have cut the corporate income tax slightly and provided personal
income tax rebates of 20%, capped at S$2,000. A Jobs Credit Scheme aims to
slow the progression of mass layoffs by offering cash grants to employers
to cover part of their wage bills .
A large project to reclaim seven small offshore islands to form a
12-square mile petrochemical complex on Jurong Island is in progress and
expected to be completed by 2010. The project will link Jurong to
Singapore Island by a 1.62-mile causeway .
Soloman Islands (top)
The Solomon Islands is a member of the Melanesian Spearhead Group
(MSG), which is a sub-regional trade treaty established to foster and
accelerate economic development through trade relations.
The country is a member of the Pacific Islands Forum (PIF), which is an
inter-governmental organization which aims to enhance cooperation between
the independent countries of the Pacific Ocean and represent their
interests.
Credit to the private sector is increasing by more than 30% per year .
Most of it is going for personal loans, and lending to tourism, fishing
and construction. The economy has reported some of the fastest growth of
any island in the Pacific. Logging and strong aid flows have been the main
drivers. Strong world prices for major commodity exports, such as logs,
fish and palm oil, have boosted export growth but imports are rising even
faster.
The country is one of the least developed in the Pacific, but has the
third-largest population as well as rapid population growth of 2.8-3.0% a
year, which creates opportunity for foreign markets wanting to invest .
South Korea (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
By 2010, the South Korea- United States free trade agreement will
eliminate current barriers to trade in industries such as manufacturing.
South Korea has emerged as China's largest foreign direct investor, as
Korean companies have shifted basic production to China. China’s
integration has helped to boost Korea's exports and growth prospects. The
manufacturing sector depends heavily on products such as cell phones,
semiconductors, and cars.
The share of the population over age 65 is increasing quickly the number
should double in the next two decades. Long-run projections indicate a
steep rise in the old-age dependency ratio, making Korea one of the oldest
countries in the world by 2050 . This creates opportunity for foreign
companies with this demographic or target market in mind.
In 2009, Seoul has pushed through several reforms that could attract more
foreign investment. Corporate tax rates will be cut in 2010 in an effort
boost job creation and competitiveness. The present government has also
committed itself to providing more support for small and medium-sized
firms and cutting red tape.
Sri Lanka (top)
Strong economic growth has lifted per capita income. The service sector
is the most dynamic part of the economy, driven by rapid growth in the
communications industry.
The tax regime is being reformed. The government plans to boost tax
revenue by at least 2% of GDP by 2011 through measures to broaden the tax
base, eliminate some tax exemptions and strengthen enforcement. The
purpose is to contain the government deficit. Excise taxes are also being
raised.
In 2003 the government approved the Petroleum Resources Act, which allows
for private and foreign investment in its offshore oil and gas fields. The
petroleum sector has been liberalized, and competitors to the state-owned
petroleum company are now operating.
An infrastructure program has been launched in order to spread the
benefits of growth to the poorest households and create more economic
growth. The largest projects are major developments in the country's
irrigation system and construction of two coal-fired power plants.
Taiwan (top)
Taiwan was admitted to membership in the World Trade Organization (WTO)
in 2001, concurrently with China's admission. Taiwan was admitted to the
WTO as a "developed country", which imposes more stringent requirements
for reducing barriers to foreign competition.
Taiwan's legislature passed the Petroleum Administration Act in 2001,
allowing foreign firms to acquire stakes in Chinese Petroleum Corporation
(CPC), Taiwan's national oil company and the dominant player in all
sectors of the country's petroleum industry, on an equal basis with
domestic investors beginning in 2004.
Tariffs and other trade barriers have been sharply reduced and the
enforcement of intellectual property rights has been strengthened. The
government has also moved to liberalize the financial industry by allowing
foreign investment in banks and gradually loosening capital controls.
Taiwan is one of the world's leaders in the production of machine tools
with output valued at more than US$3 billion per year. The manufacturing
sector is dominated by computer production, electronic components and
telecommunications. Taiwanese manufacturers produce 80% of the world's
laptop computers and 40% of the world's liquid crystal displays (LCDs).
Taiwan is also home to the world's two largest contract chip makers .
There are no direct transportation links between Taiwan and mainland
China. Passengers and cargos must transit Hong Kong, China or Macau,
China. Direct transportation links with the mainland would facilitate the
emergence of Taiwan as a research and development, logistics and financial
center, which could be considered a foreign investment opportunity. Taipei
and Beijing has developed a co-operative relationship in the field of
energy to explore a 6,000-sq mile area in the Tainan Basin of the Taiwan
Strait.
Agriculture accounts for only a small portion of GDP and about 8% of
employment. Farmers are producing sugar, yams, rice, tea and bananas, as
well as vegetables and fruit .
Thailand (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The country is a member of ASEAN Free Trade Area (AFTA), which is a trade
bloc agreement supporting local manufacturing in all ASEAN countries.
Thailand is the world's largest producer of rice. Production will be
around 22.5 million tons during 2009-2010 . Farm output continues to rise
at a healthy pace. Exports of products such as palm oil, rice and natural
rubber all rose partly owing to higher prices on world markets. Most of
these exports go to fast-growing markets in the Middle East, China and
India.
Thailand's pool of young workers will shrink by around 10% over the next
decade . To stay competitive, training and education must improve. This
creates opportunity for foreign education and companies to expand.
Tonga (top)
The country is a member of the Pacific Islands Forum (PIF), which is an
inter-governmental organization which aims to enhance cooperation between
the independent countries of the Pacific Ocean and represent their
interests.
The budget strategy is to contain the tax burden on the private sector. A
new tax policy cut the corporate tax rate from over 37% for non-resident
companies and 15-30% for resident companies to a flat rate of 20% . This
makes the country must attractive for investment.
Young people make up more than half the country’s population but have very
limited job opportunities, which create opportunity for foreign markets
wanting to invest.
Exports include fish, root crops, kava, nonu juice and vanilla. Vanilla
has the capacity for continued growth, provided that recent high prices
are sustained. The country is seeking foreign investment in the fishing
industry is hampered by high transportation costs and a lack of capital.
Tuvalu (top)
The country is a member of the Pacific Islands Forum (PIF), which is an
inter-governmental organization which aims to enhance cooperation between
the independent countries of the Pacific Ocean and represent their
interests.
Remittances from seafarers working on foreign-owned vessels are the most
important source of income, supporting construction, school fees and other
household consumption. Approximately 15% of all adult males work on ships
. A plan to expand the Tuvalu Maritime Training Institute would
considerably increase the number of graduating seafarers. The institute
offers training programs for both new entrants to the maritime industry
and experienced seafarers seeking higher qualifications and personal
advancement. Whilst the Tuvalu Maritime Training Institute is primarily
concerned with training for Tuvalu seafarers the courses are not limited
to Tuvalu citizens .
Uzbekistan (top)
GDP rose by 7.0% in 2009 and the IMF expects the same rate of growth in
2010. Additionally, inflation will fall. To support the economy, the
government has increased public investment. Much of this is going into
transport and social services, particularly in rural areas. Public-sector
wages, pensions and social benefits will also be raised by 150% in
2009-2010 . The corporate income tax was cut in 2007 and a new tax code
was approved in 2008, which includes tax cuts for micro- and small
enterprises.
Mining is an important sector with exports of gold accounting for around
one-fifth of foreign exchange earnings. Investment in mining has been
significant in recent years. The country also has significant deposits of
copper, tungsten, zinc, lead and uranium. The modernization of several
large mines with mainly with government investment is planned for
2008-2012.
Uzbekistan is estimated to contain 594 million barrels of proven oil
reserves, with 171 discovered oil and natural gas fields in the country.
The Bukhara-Khiva region contains most of the known oil fields, including
the Kokdumalak field, which accounts for about 70% of the country's oil
production. The Ferghana Basin is also believed to contain as much as four
billion additional barrels, including undiscovered reserves. This creates
opportunity for foreign discovery and investment.
Uzbekistan has an estimated 56 trillion cubic feet of reserves of natural
gas and is the third largest producer in the Commonwealth of Independent
States. Since becoming independent, production of natural gas has risen to
nearly 2.2 trillion cubic feet per year .
Vanuatu (top)
The country is a member of the Pacific Islands Forum (PIF), which is an
inter-governmental organization which aims to enhance cooperation between
the independent countries of the Pacific Ocean and represent their
interests.
It is a member of the Melanesian Spearhead Group (MSG), which is a
sub-regional trade treaty established to foster and accelerate economic
development through trade relations.
Progress has been made in strengthening Vanuatu's financial sector.
Important gains in financial sector supervision took place with the
passage of the International Banking Act, which allows companies to set up
and operate offshore banks in Vanuatu , and the broadening of the Reserve
Bank of Vanuatu's supervisory responsibilities to the offshore banking
sector. The new banking law makes Vanuatu more attractive to corporate
business and financial institutions that require a well-regulated banking
environment.
The service sector has performed well, supported by tourism-driven
transport, hotels and restaurants and a double-digit rise in private
credit. This sector continuously seeks further foreign investment.
Vietnam (top)
The country is a member of APEC, which is the premier Asia-Pacific
economic forum with the primary goal to support sustainable economic
growth and prosperity in the Asia-Pacific region.
The country is a member of ASEAN Free Trade Area (AFTA), which is a trade
bloc agreement supporting local manufacturing in all ASEAN countries.
Vietnam is forecasted one of the world's top ten tourist destinations by
2016. The country plans to receive 6 million foreign visitors by 2010 to
earn US$4.0 billion from tourism. Vietnam's tourism sector is projected to
grow 7.5% per year during 2007-2016. Corporate tax rates were cut by 30%
in 2008 for small and medium-sized enterprises as part of the effort to
stimulate the economy. The government also approved new laws on securities
and the operation of enterprises which will improve the business
environment. Further reforms will be introduced in 2010 .
Under the terms of its commitment to WTO membership, the government will
now allow foreign ownership of firms in the service sector. WTO membership
offers greater opportunities for exporters, benefiting firms in the
clothing, footwear and marine products industries.
Ho Chi Minh City alone accounts for 17% of national output, 30% of foreign
investment and 40% of exports, however only 9% of population resides here.
Public investment is being channeled into infrastructure, including roads,
ports and power generation facilities. The government also plans a US$33
billion rail link between Hanoi and Ho Chi Minh City .
Vietnam has 4.8 billion barrels of proven oil reserves. The country has
six operating oil fields. The $1.5 billion Dung Quat Refinery, located in
Quang Ngai province, has a capacity of approximately 140,000 bbl/d. A
second refinery project is under consideration at Nghi Son, north of Hanoi
in the Thanh Hoa province. The Vietnamese government has estimated the
150,000 bbl/d plant will cost US$3 billion .
Vietnam's youthful age structure offers a potential “demographic dividend”
and consumer boom if sufficient jobs can be created. Foreign markets can
look at this as an opportunity for investment and expansion.
Major exports include coffee, cashew, pepper and rubber. There is ample
rain and an extensive network of waterways to develop an expansive
aquaculture system that supports the country's very large fish and seafood
export industry. Rice exports have been targeted to reach six million tons
in 2009 .
Manufacturing accounts for 21.7% of GDP and employs 17.0% of the work
force. Output began to rise slowly in the last quarter of 2009. Nike is
one of the country's largest employers with about 160,000 Vietnamese
making shoes and apparel. The company accounts for about 9% of Vietnam's
manufactured exports and is the second largest supplier of Nike-branded
products after China .
Euromonitor International
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