The ASEAN-HK Investment Agreement: What You Need to Know
The Association of Southeast Asian Nations (ASEAN) and Hong Kong signed a comprehensive investment agreement in 2019 to promote bilateral investments and economic cooperation. This agreement aims to provide a more favorable investment climate for companies in both regions through the facilitation of investment flows, protection of investments, and the promotion of sustainable development.
So what are the key features of the ASEAN-HK Investment Agreement?
Firstly, the agreement establishes a framework for investment protection, which includes the protection of investments from discriminatory and unfair treatment, expropriation, and the transfer of funds. These provisions are essential to guarantee the security of investments, and they help to create a level playing field for businesses in both regions.
Secondly, the agreement includes provisions to promote sustainable development, which is increasingly important in today`s global economy. These provisions reflect a growing awareness of the need to balance economic growth with social and environmental responsibility. The agreement encourages investors to consider environmental, social and governance (ESG) factors when making investment decisions, and promotes transparency and accountability in the investment process.
Thirdly, the agreement establishes a mechanism for the settlement of investment disputes. This includes the option for investors to bring disputes to an independent arbitral tribunal, rather than having to rely on local courts. This mechanism provides greater certainty and predictability for investors, and helps to protect their investments from arbitrary action by governments.
Overall, the ASEAN-HK Investment Agreement is a positive step towards greater economic integration and cooperation between ASEAN and Hong Kong. By establishing a framework for investment protection, promoting sustainable development, and providing a mechanism for the settlement of disputes, the agreement provides a more favorable investment climate for businesses in both regions.
If you are a business looking to invest in ASEAN or Hong Kong, it`s important to understand the provisions of the ASEAN-HK Investment Agreement. By doing so, you can protect your investments and maximize your opportunities for success in these vibrant and dynamic markets.
