The rise of Southeast Asia: the "Asian Tigers" and beyond

  • March, 2025
  • Blog

For several decades now, we have been inexorably witnessing a progressive loss of influence and economic power by the Western world, for centuries considered the richest, most powerful part of the world and capable of driving the entire world economy on its own, and to the progressive shift of centers of economic influence and capital to other areas of the planet previously relegated to secondary roles.

In fact, we are getting used to dealing with the birth of emerging and now substantially consolidated powers, such as the giants China and India, but also other smaller countries such as South Africa or Brazil.

However, alongside these large countries, the new millennium has seen the rapid growth of even small entities which, despite not having the same geopolitical weight as the Chinese and Indian giants, have been able to acquire an influence decisive on a more strictly economic level, both at the level of industrial and business activity and at the level of capital investments.

In particular, after having already talked about the Persian Gulf countries, in today's article we will discuss some of these small located countries in the South East Asia area and for these reasons known in journalistic jargon as "Asian tigers"; that is, we will try to better analyze both the reasons for the exponential growth of these countries and to find out more in detail the particularities of these States at a fiscal and social level, with a more specific focus also on possible benefits for residence or starting up forms of business on site.

The "Asian tigers" are generally 4: Taiwan, South Korea, Hong Kong and Singapore; However, in this article we will add three other equally interesting countries in the area: Macao, Brunei and Vietnam.

Advantages and opportunities in Southeast Asia

Investments in key sectors

Rapidly developing economy, especially in technology and innovative industries.

Attractive tax advantages

Low rates and incentives to attract foreign investments and businesses.

Residence and naturalization

Residency and citizenship programs for investors and entrepreneurs.

1. Taiwan

Taiwan enjoys a very particular history. Historically part of the Chinese state, following various events that led to the communist revolution in China, Taiwan broke away from mainland China when Chiang Kai-shek, then legitimate ruler of China, was forced to take refuge on the island to escape Mao Ze Dong which, in 1949, proclaimed the birth of the People's Republic of China and ousted the nationalist government, which was declared illegitimate.

From that moment, the perennial dispute arose between the two governments, both self-considered legitimate, which still today creates one of the most dangerous geopolitical tensions on the world stage. Suffice it to say that, for the first years of its existence, the UN seat entrusted to China was actually represented by the Government of Taiwan.

Economy and technology sector

Precisely thanks to the initial investments received from the United States, with a view to countering the growth of Russian communism, the island of Taiwan has been able, since the 50s and beyond geopolitical issues, to develop a thriving and constantly growing economy, initially founded on the textile industry and then developed in the hi-tech sector. Taiwan is in fact today the main exporter of microchips in the world and the development of the technological and financial sector makes it today one of the countries with the highest GDP in the world.

Tax advantages and residency opportunities

Thanks to its policy aimed at attracting foreign investments and capital with particular attention to innovation, combined with the substantial political and economic stability that have made this small country a true global giant, Taiwan is among the twelve richest countries in the world, in 4th place in the world as the best destination for foreign investments and in sixth place in the ranking of the most competitive economies on the planet. Furthermore, it is the fourth largest holder of forex reserves in the world (behind only China, Japan and Switzerland).

The attraction of foreign capital occurs both due to the presence of lowest tax on investments in all of Asia, both for the enormous efficiency of its infrastructures and its bureaucracy, which increases the confidence of markets and investors, and for the ease with which credit can be accessed, especially for small and medium-sized enterprises which, in Taiwan, are almost 98% of the total. Furthermore, corporate taxation is quite low (20%).

The attraction of foreign capital and companies also passes through the attraction of natural persons, who can obtain permanent residency not only through an employment contract but also by opening a company locally or more simply by paying 200 thousand dollars into a Taiwanese account. After 5 years of uninterrupted residence in the country, it is then possible to obtain Taiwanese citizenship (provided that you renounce your own, given that Taiwan does not recognize dual citizenship).

Taiwan is also at the top of the world in all rankings relating to security, public services, the efficiency of the administrative system, circumstances that make Taiwanese society extremely efficient, safe and stable. At least, until the demands of the other China, the continental one, go from threats to facts...

2. South Korea

South Korea is another of the South East Asian countries that has experienced constant and inexorable economic growth since the end of the Korean War in the 50s, in clear contrast with its rival North Korea, which was instead even today to a communist and autarchic system, skeptical towards any form of openness to the outside world.

In reality, South Korea also experienced, at least until the 80s, an essentially protectionist policy, with five-year plans, highly nationalized finance and constant public intervention in the economy. 

Sectors of excellence and incentives

After a period of economic crisis that characterized the country at least until the end of the last millennium, South Korea has progressively opened up to foreign markets and entered into free trade agreements with the West (customs duties were abolished in 2011 between the EU and Korea), much focus was placed on improving infrastructure and services.

Operations that made the country one of the richest and most innovative in the world, among the most developed in terms of technology, education and welfare: just think that South Korea today is the 12th largest economy in the world, the 1st country in the production of LCD screens, the 1st country for broadband internet connections in homes (96% of users), the 1st producer of mobile phones, is 2nd in the world for educational level, 2nd in shipbuilding, 3rd semiconductor producer, 6th in technological research, 7th in the automotive sector.

The opening to foreign markets resulted in 2017 in the "Invest Korea Market Place”, a development project and attraction of innovative start-ups which uses 36 offices around the world to identify the best projects to finance and develop in the country. Also interesting tax incentives for businesses: rates range from 9% to 24% depending on corporate income and tax breaks are provided for foreign investors, such as tax and customs exemptions and subsidized rates for loans.

Korea also plans a program of residence for investment which can reach up to 240 thousand dollars (to be invested in Korean companies) and naturalization is foreseen, i.e. the possibility of obtaining a Korean passport after 5 years of permanent residence in the country. Korea, however, also does not allow dual citizenship.

Discover the fiscal and financial characteristics of different countries with our GV Index.

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3. Hong Kong

Hong Kong is a sort of city-state, born as a former British colony and today, in fact, a special administrative region of China, on which it formally depends but with respect to which it enjoys wide autonomy in all sectors except defense and foreign policy.

Precisely thanks to this autonomy, particularly in the economic and fiscal sector, Hong Kong has been able to design a development model that has made it one of the most densely populated places in the world and at the same time one of the most important and influential financial and commercial centers of the planet. Hong Kong's economy is based on the free market, free trade and, thanks to its strategic position and one of the largest and best equipped ports in the world, on international trade.

Tax system and business opportunities

With limited natural resources, and in any case insufficient to support the 7 and a half million inhabitants who live there, Hong Kong has focused everything on the tertiary sector and in particular on the banking and financial system. Also thanks to the adoption of specific pilot programs by Beijing, Hong Kong is today the main offshore marketplace for international trade, also facilitated by low taxation for businesses (the standard rate is 16,5%) and by a series of favorable regulations for those who intend to establish the center of their business in the city, such as the principle of territorial taxation, exemption for interest, dividends and capital gains but also the possibility of issuing bearer shares, as well as a high level of data secrecy.

These conditions have therefore favored an ever-increasing development of the economy and trade and a progressive attraction of foreign capital, which in turn have enabled the development of society, infrastructure, the health and education system, to the point of placing Hong Kong in the top places of all global indices and rankings dedicated to these sectors (it is in fact on the podium of all University Ranking and in the indexes dedicated to the healthcare system).

Precisely to attract foreign personalities and capital, Hong Kong also encourages the transfer of foreigners to the city through a residency-by-investment program with particular focus on the corporate sector (i.e., presenting a detailed business plan with objectives, budget, financial resources). However, since it is a sort of autonomous republic of China, it is not possible to obtain a Hong Kong passport except by birthright; naturalization is therefore not foreseen.

4. Singapore

The last of the four “Asian tigers” is Singapore. Another "City State" of south-eastern Asia, which went from being a British colony to autonomous in 1959, then annexed to Malaysia in 1963 and returned independent in 1965, Singapore has also experienced constant and stable economic growth in recent decades, made competitive thanks to the combination of business and export support policies, but also to a strong one direct state intervention in company shareholdings. Solid and far-sighted planning that has led Singapore, today, to be the most important financial center in Asia and one of the main in the world, where the tertiary sector and business consultancy services (legal, accounting, intermediaries) reign supreme .

Economic growth and key sectors

Singapore's is considered one of the ten freest economies in the world and is classified as main logistics hub of the entire planet. It is in first place for all indices concerning safety, the efficiency of public services, healthcare and infrastructure.

The strong attraction for foreign capital and the extreme efficiency of the country's system allows Singapore to maintain a rather low level of taxation compared to European standards: Individuals face a tax rate that does not exceed 20% while businesses face a 17% tax and dividends, interest and capital gains are generally exempt.

Furthermore, Numerous benefits are provided for foreign entrepreneurs, such as partial or full exemption from withholding taxes for royalties paid to non-residents, exemption from taxes for a certain period of time from the incorporation of a company locally or exemption from tax on the first $100.000 of taxable income produced by startups up in the first 3 years of activity.

This creates a virtuous circle that attracts further capital and new companies, which bring jobs, innovation, money and know-how to the country; all circumstances that contribute to Singapore's exponential growth at both an economic and social level, according to an incessant parable that does not intend to stop.

Taxation and residency opportunities

Again with a view to attracting capital and work from abroad, Singapore has adopted a Residence by Investment Program aimed at different categories of wealthy people: there are in fact numerous benefits but the program is not exactly accessible to everyone, given that the minimum requirements vary from a turnover of at least 200 million dollars up to 500 million or making an investment in the country ranging from 10 to 50 million dollars.

La citizenship can instead be obtained through naturalization, through the extension of permanent residence for 5 years and then for another 2 years, demonstrating that you maintain certain requirements; Furthermore, the Singapore passport is now the first in the world. Singapore, however, does not allow dual citizenship.

Resources and opportunities of the other 3 "Asian tigers"

Macau

Global hub for luxury gaming and tourism, with an entertainment-based economy.

Brunei

Economic stability thanks to its oil riches, with advantageous tax policies and absence of income taxes.

Vietnam

Growing rapidly thanks to the manufacturing sector and foreign investment, with favorable fiscal policies and economic stability.

5. Macau

Hong Kong is not the only special administrative region under Chinese control: a similar political situation is that of Macau. Having remained under Portuguese colonial control for a long time, Macau returned to Chinese sovereignty on 20 December 1999.constitutional agreement with China provides that Macau retains its full autonomy and status as “free port” until December 2049.

While founding the bulk of his economy on tourism and the clothing industry, Macao soon developed, like Hong Kong, not only a large international trade network thanks to its free port, but soon also its own banking and financial sector, today one of the most active in the area.

Similar conditions have allowed the small country to guarantee the lowest tax burden in Southeast Asia: the rate for companies is 12%, but offshore companies are exempt, while at the level of professional income the sums paid to non-residents are subject to a rate of 5% (and in general the taxation on the income of natural persons it is territorial in nature).

Get a residence visa in Macau, however, it is not very simple: in addition to the employee work permit and an ad hoc residence provided for "talents", it is possible to obtain a residence for investment, demonstrating the financial capacity to significantly support a business in Macau.

Finally, as with Hong Kong, there is no citizenship program, as it is assimilated to the Chinese one.

6. Brunei

Equally little discussed is the Islamic Sultanate of Brunei. Located in Borneo, an island it shares with Malaysia, the country was one of the few in the area to manage to maintain its autonomy over the centuries, avoiding European colonization; having become a mere British protectorate, it equipped itself with a established in 1959 and it soon became one of the main commercial hubs that connected China and India with the West.

However, Brunei's true fortune has always been oil, which together with liquid gas covers 75% of the country's GDP. Starting from the new millennium, however, the Sultan decided to follow the example of the Asian tigers and launch a project (the Brunei International Financial Centre, BIFC) aimed at making the sultanate a real one global finance hub, through the establishment of international corporate forms that enjoy numerous tax breaks (exporting companies face a tax of just 1%) but above all data protection. 

Le foreign companies operating in Brunei are required to register on site but there is generally no obligation to indicate the names of shareholders or members; even where it exists, it can easily be circumvented through some legislative loopholes, first of all the limit of domestic legal interest which effectively prevents the Brunei authorities from accessing the registers. Furthermore, the internal regulations prevent the exchange of information, meaning that even where Brunei enters into a TIEA's, it would effectively be ineffective. Bearer shares can also be issued, preventing third parties from knowing the extent of ownership.

Given these advantages for entrepreneurs and investors, what acts as a counterbalance is the legislation envisaged to obtain residence in the country, decidedly more prohibitive: there is no residency by investment program, consequently the only possibility is that of actual residency. However, in order to apply for permanent residency you must have resided in the country for 15 years (which drops to 10 if you are married to a citizen of Brunei). Furthermore, Brunei also does not allow dual citizenship and in any case naturalization is not foreseen, much less a CBI Program.

Discover the fiscal and financial characteristics of different countries with our GV Index.

Discover the Countries

7 Vietnam

Known by all for having been one of the bloodiest theaters of war in the clash between the USA and the USSR during the Cold War, Vietnam is also trying to follow in the footsteps of the Asian tigers in an attempt to revive its economy and attract foreign investments, even if it is still quite behind both economically and socially.

After the conflict between North and South and entire decades of recovery attempts, starting from the second half of the 80s Vietnam has tried to emancipate its economy from substantial dependence on agriculture to open up to foreign markets, focusing above all on tourism and industry, the latter in great development and with great potential also thanks to an averagely young and well-established population. educated. Vietnam has the GDP in constant growth since 2000, with an annual growth rate approaching double digits.

Circumstances that make Vietnam one of the countries with the highest potential of the area and probably the most promising state in terms of economic growth in the medium to long term. To date, however, the financial sector still appears to be underdeveloped.

Tax and investment opportunities

Taxation is also favorable, with rates that generally do not exceed 20%; dividends are exempt and royalties, interest and capital gains have tax rates that do not go beyond 10%. The Government then predicted from 2021 a series of tax incentives (such as halving the tax for a period of up to 10 years) for companies in the innovation, research, technology, renewable energy and education sectors, precisely in order to keep the country up to date with modern times.

Also, the country is not part of the CRS agreement, consequently it does not exchange data with foreign countries and a certain form of banking secrecy is also guaranteed.

On the other hand, Vietnam is still quite behind in terms of immigration: it is possible to obtain a residence permit of only 3 years, renewable only once and only on condition that you have sufficient income to support yourself in the country; which means that it is not possible to obtain permanent residence and this factor still discourages foreign investments, especially of an entrepreneurial nature.

It is also impossible to obtain citizenship by naturalization but only by birth and marriage. Vietnam doesn't allow dual citizenship either.

In conclusion

The list of countries in this article shows how in recent decades we have been witnessing the growth of new economic powers and the birth of new centers of global influence which, until a few decades earlier, were relegated to the periphery of the world and were of little interest to investors and businessmen. In today's globalized world, situations evolve extremely suddenly and sometimes unpredictably, which is why staying informed and up to date with the evolution of global events has now become essential for the organization of an effective and stable business and investment strategy in the medium to long term.

Knowing the different realities, more or less new and emerging, which characterize this constant evolution and this sudden change, is essential for long-term planning and for identifying the most suitable markets and countries for your business.

Our law firm, with decades of experience in the field and thanks to its constant study and updating of these dynamics, can help you identify the strategy best suited to your specific needs.

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