Asean Investment Guarantee Agreement

One of the four main objectives of the next ASEAN Economic Community is to become an internal market and a basis for the production of five essential elements: the free movement of goods, services, investment and labour and the free movement of capital. The ASEAN Comprehensive Investment Agreement (ACIA), which entered into force on 29 March 2012, aims to strengthen ASEAN investments through the establishment of a free, open, transparent and integrated investment regime for domestic and international investors in ASEAN member countries, which will support the economic integration of the region before and after the integration of the ASEAN Economic Community in 2015. In 2013, the ASEAN Secretariat published the CFIA Guidebook, which details the strengths and benefits of the agreement for potential investors. Any ASEAN country that directly or indirectly expropriates CFIA-protected investments is required to provide adequate and effective compensation to the investors concerned without delay and in accordance with the law. Compensation must be fully achievable and transferable between ASEAN member States and correspond to fair value at the time of the announcement or date of expropriation. Expropriation is permitted only if it takes place for public purposes and takes place in a non-discriminatory manner. In addition to ensuring fair and equitable treatment and more rest status for investors, host governments must also offer full protection and security to investments at all times, including during unrest and uprisings. In this case, hosts must compensate for losses resulting from armed conflict, civil war or a state of emergency. CFIA also provides that host countries may only expropriate investments under certain conditions and that investors must compensate fairly if they are realized. Finally, investors have the right to make free and timely transfers within and from the territory of a country in a freely convertible currency. Dezan Shira & Associates is a specialized foreign direct investment practice that offers multinationals investing in emerging Asians, business creation, business consulting, tax and compliance consulting, accounting, payroll, due diligence and financial control. Since its inception in 1992, the company has become one of Asia`s most diverse full-service consulting firms, with operational offices in China, Hong Kong, India, Singapore and Vietnam, as well as liaison offices in Italy and the United States.

To benefit from the CFIA, an investment must be made either by a natural person (national, citizen or permanent resident) of an ASEAN country, or by a legal person established in ASEAN that meets the requirements of the CFIA. . . .