Indonesia’s E-Commerce Law, 3PL Services in Vietnam – China Outbound

Our weekly round up of other news affecting foreign investors throughout Asia.

ASEAN BRIEFING

Indonesia’s government introduced GR 80, 2019 in November 2019 aimed at providing legal guidelines for the country’s e-commerce industry. The regulation, which will apply to domestic and international internet companies, defines the type of entities that can engage in e-commerce.

Additionally, the regulation addresses the specific set up requirements businesses will need to comply with, as well as the framework for online contracts and transactions, and the provisions for consumer right protection.

Businesses will have until November 2021 to adhere to the new provisions.

INDIA BRIEFING

As India’s economy enters 2020 and aims for a larger profile in the global supply chain, it will need to deliver on key reforms to attract more investors.

Specifically, foreign investors want reforms to make it easier for companies to acquire land and more flexibility when it comes to hiring with respect to legal compliance.

RUSSIA BRIEFING

Russian President Vladimir Putin has signed into law the setting of the minimum rate of labor payment in Russia at 12,130 rubles (US$195.5) starting January 1st, 2020. The last increase saw the minimum wage rise to 11,280 rubles (US$181.8) a year ago since the previous review in May 2018.

However, as local governments can set their own minimum wages, minimum wage levels in cities such as Moscow and St. Petersburg are considerably higher than many other regions. The minimum wage in Moscow is 18,781 rubles (US$303) and in St. Petersburg 17,000 rubles (US$275).

SILK ROAD BRIEFING

A new book, titled China’s Belt and Road Initiative: Potential Transformation of Central Asia and the South Caucasus written by Evgeny Vinokurov, Chief Economist at the Eurasian Fund for Stabilization and Development provides a qualitative assessment of infrastructure investment made as part of the BRI, as well as of volumes and disbursements.

In doing so it answers the issue over loans that China has been making to low-income and lower-middle income countries are often concessional.

VIETNAM BRIEFING

In general terms, third-party logistics, or 3PL as it is commonly referred, involves the outsourcing of logistics functions – such as customs clearance, storage of products, and order fulfillment – to a third party.

Depending on the 3PL provider and range of services utilized, third party logistics can completely remove the need for a foreign company to establish a market presence in Vietnam. Instead, all operations can be run out of a single regional management center where the costs and risks of doing business are lower.

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