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Asean Countries Cultural Aspects

Autor:   •  April 11, 2017  •  Course Note  •  667 Words (3 Pages)  •  299 Views

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ASEAN (Association of Southeast Asian Nations)

The ASEAN includes:

  • Brunei
  • Cambodia
  • Indonesia
  • Lao PDR (Lao People’s Democratic Republic or Laos)
  • Malaysia
  • Myanmar
  • Philippines
  • Singapore
  • Thailand
  • Viet Nam

Characteristics:

Internal diversity closer is to that of the EU model than to that of the USA, but network of partnerships rather than the highly legislated EU model

Businesses rely on trust (and long term) relationships, on informal agreements rather than on contractual agreements

Peace, stability, human rights enhancement, welfare protection, humanism and inclusion.

Management models that seek harmony rather than confrontation, based on agreed values, of humanism, empathy, inclusiveness and notions such as:

“Malakasit”= genuine care, deep concern, accountability, gratitude

“Musyawarah and mufakat”= Consultation and concensus

“Yes” is often used to signal that one is listening and to avoid making the other lose face, but is not an agreement to a deal.

Assets:

Growing middle class

Young work force, flexible, adaptable, entrepreunarial, with relational skills

 Openness, creativity

Challenges:

Capacity to manage diversity within one company

Diverse political systems and diverse stages of development to conciliate

Lack of transparency

Unequal level of English

Looking for compromises can waste time and lead to unclear decisions


Country

Main sectors

Challenges

Specificities

Tips

Brunei

Finance and Insurance

Oil and gas extraction

Construction and engineering

Biotechnology

Agribusiness

Information technology

Labor rights problems

Women’s rights (only married women can start a business with their husband’s authorization)

Rich country with small population and large natural reserves (oil and gas)

Removal of tariff barriers

Do not point, do not cross your legs (showing the soles of your shoes is impolite)

Use both hands to receive something that is handed out to you

Cambodia

Education and vocational training

Construction

Manufacturing

Retailing

Agribusiness

Tourism

Financial and professional services

Numerous but always small opportunities

Lack of electrical infrastructures

Corruptions

Lack of skills

100%foreign-owned companies are permitted

But working with or through local partners is a must

Franchising is a good way to enter the market

Indonesia

Education

Finance

Infrastructure

Oil and gas

Healthcare

Retail

Energy

Environment

Creative media

Arduous, time-consuming complexities between central government and local regions

Talent pool that remains small

Lack of infrastructures

Largest population of South East Asia

50% of ASEAN GDP

Taste easily changes

Price sensitive consumers

Get a local partner (notably to find out about constantly changing regulations and to adapt to local etiquette)

Build a long-term relationship with locals

Laos

Hydropower

Mining

Industrial forestry

Agriculture

Tourism

Lack of skilled workforce

Immature legal system

Brain-drain to neighbouring countries

Open door policies meant to attract foreign direct investment

Abundant natural resources

Low-cost labour

Face to face contact on initial dealings

As the environment is not yet extremely competitive, you may contact already established foreign firms for advice

Malaysia

Education

Urban infrastructure

Healthcare

Retail and food services

Natural gas

Rising inflation

Diverse cultures and sensitivities within the country

Identify the high-ranking people and deal with the senior figures of a company as only they can make decisions (strong hierarchy)

Myanmar (former Birma)

Need for urban infrastructures to be upgraded

Transportation

Lack of digital skills (but it may also be an opportunity for foreign firms)

Lack of telecommunication infrastructures

Small manufacturing sector

Bureaucratic and slow

Rural society

Undergoing rapid, deep transformations

First democratically elected government implementing reforms in favor of license-free exchanges

Physical presence required

Patience

Several local assistants or partners required (for the various fields connected to your activity)

Discretion required not to be overtaken by competitors

Philippines

Repair of vehicles

Household goods

Transport, storage

Communication

Finance

Manufacturing

Construction

Energy

Inadequate infrastructure

(previously) corruption

Complex customs

Foreign investment restrictions

Investment incentives for export-oriented companies

Coordinate with key local agencies that can assist, especially in networking

Singapore

Infrastructure

Education

Health

Fashion

Technology

Transportation and logistics

Already developed country with a lot of competition

Competitive tax rates

Advantageous location

Business-friendly regulation (numerous papers and licenses to be obtained but quick processes)

Seek local partners to help you with administrative work and regulation

Thailand

Infrastructure development

Consumer goods and services

Manufacturing

Indirect, subtle communication

Mix of cultures and complex way of thinking

Lack of educational skills

Electrical connections are lacking although they can be set on demand

Collectivist society where the needs of the group override those of the individual

Overwhelming importance of the family (in connections and in advice from elders)

Use expat experts as local skills are poor and/or few

Keep all your accounting in good order as getting paid is often difficult

Get agreements in writing

Buy an existing business rather than start from scratch

Viet Nam

Infrastructure development

Manufacturing

Food and Agribusiness

Complex procedures on starting a business

Electrical connections are lacking and are difficult to get set

Complex corporate taxes

Collectivist society

Based on Confucianism

Business relationships rely on referrals: come with recommendations from previous partners

Get involved personally and do not set a barrier between your personal and business life

Address elder partners with their title or designation, not only Mr. Or Madam

...

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