Asia Pacific

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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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