Asean Countries Cultural Aspects
Autor: Hernani Amorim • April 11, 2017 • Course Note • 667 Words (3 Pages) • 715 Views
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 |
...