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Oct 23, 2011

Weekly Legal and Business News from Asia (10/24/2011)

This is the start of a new weekly posting of Asian legal and business news.
  • China "Yuan FDI" program took effect last October 12th.  Foreign investors will, now, be able to use overseas acquired RMB to make direct investments into China. This should lead, according to The Asahi Shimbun, to an increase in FDI and an internationalization of the RMB. "New rule promote direct investment in China in yuan," The Asahi Shimbun.
  • "Restructuring," the new key word in Vietnam. Suffering from a severe economic slow down since 2008, the Vietnamese government plans to restructure investments, state-owned businesses and the financial markets.  The growth model is also expected to be revised.  However, some fear that this would lead to a decrease in Vietnam's competitiveness. "Viet-Nam to trim five year outlook," Viet Nam News.
  • The Limited Liability Partnership model should be available for attorneys in Hong Kong, both local and foreign, in mid 2012.  The aim is to encourage multinational law firms to partner with local law firms.  In addition, Hong Kong wants to expand its arbitration services to Shenzen's Qianhai, which China hopes will be the "Manhattan of the Pearl River Delta."  "Hong Kong to pass new law allowing local solicitors to adopt LLP model," ALB Legal News. 
  • China's FDI from EU and US are decreasing due to the financial crisis and to China's "frustrating business environment" according to the US Ambassador to China, Gary Locke.  However, FDI from Asian countries is growing. "Investment from EU drops in Sept," China Daily.
  • Yunnan province, in China, is aiming to become the next asian Hub, mainly attracting Southeast Asian countries. Of course, the province is going green, with a "green economy, green industries, green energy..." The Yunnan province being part of the Chinese "Gateway Project" will be financially supported by the Central Government, according to the China Daily.  "Yunnan aims to be regional business hub," China Daily.
  • Cambodian exports to EU and US markets are growing despite the European financial crisis. However, Cambodia is looking to other potential markets to diversify its exports (essentially garment industry).  "Exports up despite EU crisis," Phnom Penh Post.
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SeanHayes@ipglegal.com