Except for Singapore and Brunei, in all other ASEAN countries, regulations require
some form of local participation in the management of the company. For instance, in
Cambodia and Myanmar foreign companies can own up to 100 per cent equity, but it
depends on the size of the company. For example, Schenker, a foreign LSP, owns
100 per cent equity in Myanmar because it provides employment for locals as well as
foreign direct capital investment in the country. Usually, the larger LSPs are easily
granted licences to operate in the country with 100 per cent equity. In Vietnam, foreign
equity is restricted to less than 50 per cent and it is usually very difficult to find the right
partners. In Laos, foreign ownership is restricted to less than 50 per cent. So far, there are
hardly any foreign players in Laos. Laos and Vietnam are now opening up
transportation sector to foreign LSPs. In Thailand, regulations allow foreign companies
to invest (,50 per cent) and require that the foreign companies to have a minimum
amount of paid-up capital and the board to have at least seven local directors.
Except for Singapore and Brunei, in all other ASEAN countries, regulations requiresome form of local participation in the management of the company. For instance, inCambodia and Myanmar foreign companies can own up to 100 per cent equity, but itdepends on the size of the company. For example, Schenker, a foreign LSP, owns100 per cent equity in Myanmar because it provides employment for locals as well asforeign direct capital investment in the country. Usually, the larger LSPs are easilygranted licences to operate in the country with 100 per cent equity. In Vietnam, foreignequity is restricted to less than 50 per cent and it is usually very difficult to find the rightpartners. In Laos, foreign ownership is restricted to less than 50 per cent. So far, there arehardly any foreign players in Laos. Laos and Vietnam are now opening uptransportation sector to foreign LSPs. In Thailand, regulations allow foreign companiesto invest (,50 per cent) and require that the foreign companies to have a minimumamount of paid-up capital and the board to have at least seven local directors.
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