Presented by

Krist Boonjunwetvat 5004640487

Peerut Sunirand 5004640750

Wages
Intellectual property
Requirement for a local partner
Taxes
Domestic market
Bureaucracy
Safety
Environment

India is the least expensive for unskilled labor,

$34 base salary per month.
While the minimum wage in China, Thailand and
Vietnam outside of the urban area is about $8590 base salary per month (approximately $4 per
day).
Labor laws in India are also written to attract
more FDI.

Note: Investor needs to concern about government

required benefit and employment benefit as well.

China continues to have serious problems with IP

protection. Laws do exist but China has conflicts
between its government and private sectors.
India is much stronger on IP protection and has a
much more developed legal system with more
predictable outcomes than China.
Vietnam also continues to have problems with IP
protection similar to China.
Thailand is more unified nationally and has less
conflict between its levels of hierarchy. Although
Thailand has minor problems with IP protection, in
generally is much better than China or Vietnam.

Often, local officials will encourage you to consider a

local partner and introduce them, but there is no
requirement for local ownership on most investments
in Asia today.
Investing in China or Vietnam today can and do
generally establish a wholly owned subsidiary (a
wholly owned foreign enterprise).

Certain businesses in India are still restricted to Indian

nationals only, but for over 90 plus percent of
businesses they are open to foreign investors and
there is no requirement for a local partner.
Thailand has long not required a local partner.

Taxes typically are higher in India than in

China.

China generally only offers a two-year

exemption and three years with a 50%
reduction.
In Thailand, the area outside Bangkok and its
suburbs offer eight year exemptions plus five
years at 50% off.
Considering the Value added tax (VAT)
- In china VAT is 17%, while India is 12.5%,
Vietnam is 10-mid 20s%, and Thailand is only
7%.

China and India, in statistical, have a high

number of population but less consumption.
On the contrast, Thailand, which is smaller
relative to those countries, has a high number of
consumption because Thailand activate
domestic market by FTA with many counties,
such as India, China, Australia and New Zealand.

There are safety rules in China, Vietnam and

elsewhere but enforcement tends to be below
standard.
Workman's Compensation laws exist and are
generally enforced against foreign companies
but less so if at all against Chinese or
Vietnamese owned firms.
India has its own problems with safety as
contract workers are used to circumvent safety.

Licenses, permits and approvals in China are generally

quickly issued and acted upon, whereas in India, it still can
be very difficult to get a project through on a timely basis.

Thailand is much more business friendly and has a very

easily understood system and quick procedures.

Communications costs which covers 5% of all expenses.

Most countries in SE Asia, with the exception of Vietnam,
have reduced their costs as has China.

Shipping Costs, the cost of shipping from China and

Thailand to be comparable in price, while Vietnam and India
tend to be higher for shipping about $300 or more per 40
foot container.

China and Vietnam have laws mandating that all firms

have to follow basic EP guidelines. But in practical, These
are most often enforced against new foreign-owned
factories while existing locally owned factories get much
less attention.

India also has distinct problems with pollution but is doing

better than China because it has a freer press and more
active advocacy groups.

Thailand has strict guidelines, especially for water and

chemical usage, but it still has instances of corruption
when it comes to enforcement.

For any companies seeking to find low-cost quality

suppliers in Asia, China might not be the best
alternatives. Further considering about all aspects or
criteria is required so that investors can evaluate all
costs and other factor and improve performance
effectively.

http://www.business-in-asia
.com/wire_journal_nov2005.html.