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The administration of this blog recently noticed an article from the Reuters news agency in which the Chief Executive Officer of General Electric was commenting upon the economic situation in China and how this impacts the relationship between the United States of America and Peoples’ Republic of China in both the economic and political spheres. To quote directly from the Reuters News Service:

(Reuters) – For Jeff Immelt, the CEO of General Electric (GE.N), the 130 year-old American industrial behemoth, the financial crisis marked the end of the age of America’s economic dominance.

This blogger has noticed that there seems to be a level of pessimism regarding the American economy. Although it is currently going through economic turbulence, and has been for a while, the US economy, in this blogger’s opinion; remains one of best countries in the world for trade and economic activity. Those doing business in the USA may enjoy the benefits that come from the American financial, economic, and physical infrastructure. Hopefully, the optimism for which America has, in the past, been noted for will return once the economy returns to an “even keel”. Reuters continues:

But Mr. Immelt said the future will be different. For the next 25 years, he said, the American consumer “is not going to be the engine of global growth. It is going to be the billion people joining the middle class in Asia, it is going to be what the resource-rich countries do with their newfound wealth of high oil prices. That’s the game.”

A lot of that game will be played in China. At a moment when it is compulsory on the American right to pay homage to the exceptionalism of the United States, Mr. Immelt, a lifelong Republican, is matter-of-fact about China’s inevitable rise.

The interesting piece of information that this blogger noted in the aforementioned article was the fact that the G.E. CEO took notice of the fact that the middle class is growing rapidly in Asia. The thought of an Asian middle class numbering 1 billion or more is truly staggering when one takes into account the economic impact of such growth. As Asians in general become more affluent the side effects will likely be increased trade and economic activity as these newly minted members of the middle class use their new found wealth to make purchases of property, goods, and services (in Asia, the EU, UK, and the United States). The most poignant line of this Reuters article, in this blogger’s opinion was:

“It is going to be the biggest economy in the world,” Mr. Immelt said of China. “The only question is when.”

There is little doubt that China has an incredible capacity for growth and those looking international investment or business opportunities are well advised to research the Chinese market. That said, China does not represent the only country in Asia which has economic opportunities that are becoming more readily available to investors and entrepreneurs due to globalization. The Kingdom of Thailand, a member of the Association of Southeast Asian Nations (ASEAN), has investment opportunities in the form of Thai Property, Thai Real Estate, and Thai businesses. Furthermore, for Americans conducting business in Thailand can prove profitable especially since the US-Thai Treaty of Amity allows Americans to own virtually 100% of a Thai Company with Amity Treaty certification (sometimes referred to as an Amity Company).

Meanwhile, the landlocked country of Laos recently opened a Lao Securities Exchange in an effort to raise capital through equity investment. The Kingdom of Cambodia recently announced that a Cambodian Stock Exchange is to be unveiled in mid-2011 while recent reports have noted that Burmese officials hope to be in the process of creating a Myanmar Stock Exchange as well. Such developments remain to be fully realized, but such examples clearly indicate that Mainland China is not the only “game in town” when it comes to investment opportunities and economic growth in Asia.

For related information please see: US Company Registration.

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Posted in Amity Treaty, Cambodia Business, China Business, Laos Business, Myanmar (Burma) Business, News, Opinion, Thailand Business, Thailand company, Thailand Property, Thailand Real Estate, US Business, US Company Registration | 1 Comment »

Those interested in conducting business in the region of Southeast Asia may be interested to note that the country of Laos (officially referred to as the Lao Peoples’ Democratic Republic) has recently announced the opening of a stock exchange. To quote directly from a recent article on the website of the BBC:

The Lao Securities Exchange opened for business on Tuesday with trading in just two companies.

The country, sandwiched between Vietnam and Thailand, is one of the world’s poorest nations.

It is hoped that the stock exchange will help raise $8bn (£5.1bn) in equity and bond sales to fund investment in the country.

The Laos exchange is initially offering shares in two state-owned companies, Electricite du Laos Generation company and Banque Pour Le Commerce Exterieur Lao.

The volume of the first day’s trading was thin, about 2.14bn kip ($265,000; £170,000).

Although the exchange itself is small in comparison to that of the United States, the United Kingdom, or even the Kingdom of Thailand it is likely that this move will lead to further business opportunities for foreign investors looking to conduct business in Laos. Hopefully, this announcement will also usher in an era in which Laos plays a more dynamic role in the region. As a landlocked country with a relatively small population and few capital resources it can be inferred that Laos’ best hope for creating jobs and improving the overall economic situation in the country will come through the accrual of foreign capital in the form investment and subsequent usage of that capital in ways that will be both constructive and profitable.

Laos is a member of the Association of Southeast Asian Nations (ASEAN). In recent months members states of ASEAN have seen a great deal of change in the economic realm as the United States dollar has weakened due, at least in part, to “quantitative easing” measures promulgated by the Federal Reserve. Meanwhile, the Chinese Yuan has been getting stronger as the Chinese economy continues to show strong growth. These factors, along with others, have resulted a great deal of uncertainty about the future complexion of business in Southeast Asia.

It should also be noted that Chinese News Services have recently reported that Bangkok will be home to a new $1.5 billion Chinese trade complex. This news comes on the heels of the announcement that China, Laos, and Thailand will eventually be connected via high-speed rail link. Hopefully, all of these factors, in conjunction with the additional capital generated by the Lao exchange, will coalesce into a highly favorable business climate for China, Thailand, Laos, and all of the other member nations of the ASEAN community.

For related information please see: US Visa Laos.

Tags: American Visa Laos, ASEAN, Asian Business, Asian Stock Exchanges, ASsociation of Southeast ASian Nations, Banque Pour Le Commerce Exterieur Lao, Company Laos, Electricite du Laos Generation, High Speed Rail Link China, High Speed Rail Link Laos, High Speed Rail Link Thailand, Investment in Laos, Lao Business, Lao Peoples' Democratic Republic, Lao Stock Exchange, Laos Company, Laos Stock Exchange, US Visa Laos
Posted in Laos Business | 1 Comment »