Manufacturing Investment
Set up production capacity abroad
Definition
Building or acquiring production facilities abroad, involving investment approval, land, environment, labour and bonded customs arrangements.
Suited for
- Supply-chain diversification
- Proximity to markets or materials
- Using rules of origin and trade agreements
Common legal structures
- Foreign-invested enterprise
- Industrial park / free zone enterprise
Preparation
- Site and park comparison
- Investment approval and incentive applications
- Environmental impact assessment
- Labour and expatriate permits
Limitations
- Foreign land ownership is often restricted
- Local content requirements in some sectors
Tax notes
- Incentives usually carry conditions and clawbacks
- Duty relief on imported equipment
- Origin determination
Key risks
- Construction and approval delays
- Labour relations
- Environmental compliance
- Trade remedy measures
Steps
- 1Feasibility study
- 2Site selection
- 3Investment registration and incentives
- 4Set up company
- 5Land and construction permits
- 6Environmental and production permits
- 7Hiring and start-up