D B A P R D , A ASEAN P -...

DOING BUSINESS IN THE ASIA PACIFIC REGION: DO’S AND DON’TS, AN ASEAN PERSPECTIVE

Global Summit of Women 2013 6-8 June 2013 Shangri-La Hotel

Kuala Lumpur, Malaysia

CULTURAL ASPECTS • Cultural Idiosyncrasies

• Meeting Etiquette

• Negotiation Strategies

• Market Entry Strategies

BUSINESS & MANAGEMENT ASPECTS

• Establishing Relationships

GENERAL OVERVIEW

• Status of Women

REFERENCES

Discussion Outline

• ASEAN Quick Facts

• Geographical Location

General Overview GEOGRAPHICAL LOCATION

Brunei

General Overview GEOGRAPHICAL LOCATION

General Overview COUNTRY QUICK FACTS

CCAAMMBBOODDIIAA MMYYAANNMMAARR//BBUURRMMAA LLAAOOSS IINNDDOONNEESSIIAA PPHHIILLIIPPPPIINNEESS

Kingdom of Cambodia

14.9M population

176,515 sq km land area

Riel currency

Buddhist (96%)

Khmer (95%), French, English

Multi-party democracy under a constitutional monarchy

Monarch head of state, Prime Minister head of government

US$36.6B 2012 GDP PPP

US$2,400 2012 GDP/capita PPP

Republic of the Union of Myanmar

54.6M population


Kyat currency

Buddhist (89%)

Burmese

Nominally civilian parliamentary

President head of state and government



Lao People’s Democratic Republic

6.6M population


Kip currency

Buddhist (67%)

Lao language, French, English

Communist state

President head of state

Prime Minister head of government



Republic of Indonesia

248.6M population

1.8M sq km land area

Rupiah currency

Muslim (86%)

Bahasa Indonesia, English, Dutch

Republic


US$1.2T 2012 GDP PPP


Republic of the Philippines

103.8M population


Philippine Peso

Catholic (83%)

Filipino, English

Republic




TTHHAAIILLAANNDD BBRRUUNNEEII MMAALLAAYYSSIIAA SSIINNGGAAPPOORREE VVIIEETTNNAAMM

Kingdom of Thailand

67.1M population


Baht currency

Buddhist (95%)

Thai, English

Constitutional Monarchy




State of Brunei, the Abode of Peace

408,786 population


Brunei Dollar currency

Muslim (67%)

Malay, English, Chinese

Constitutional Sultanate

Monarch (Sultan & Prime Minister Title) head of state and government



Malaysia

29,2M population


Ringgit currency

Muslim (60%) Buddhist (19%)

Bahasa Malaysia, English, Chinese

Constitutional Monarchy


US$492B 2012 GDP PPP


Republic of Singapore

5.3M population

687 sq km land area

Singapore Dollar currency

Buddhist (42%) Muslim (15%)

Mandarin, English, Malay, Hokkien

Parliamentary Republic

President head of state, Prime Minister head of government



Socialist Republic of Vietnam

91.5M population


Dong currency

Buddhist (9%) Catholic (7%)

Vietnamese, English

Communist state

President head of state, Prime Minister head of government


Us$3,500 2012 GDP/capita PPP

Saving face is important

Communication is subtle and indirect

Hierarchical structure

Collectivist society

Do not touch the head or pass anything

over the head – most sacred part of body

Family ties given great value

CAMBODIA VIETNAM THAILAND PHILIPPINES INDONESIA MALAYSIA SINGAPORE

Common way

to greet –

hands

together at

chest level,

bow saying

“susaday

Do not stand

with hands on

hips or arms

crossed or

use fingers to

point

Always accept

invitations to

social

activities

Group loyalty

and debt of

gratitude very

important

Focus on

tone of

voice, body

language,

eye contact

& facial

expression

Concept of

“kiasu”

reflects value

placed on

strong work

ethics and

competitive-

ness

MYANMAR BRUNEI LAOS

Do not touch the head

Give gifts with right hand

Be discreet, no PDA

Take off shoes when

entering temples and

homes

Don’t step

over any part

of the body

Give due

respect to

monks

Don’t pass in

front of a

person in

prayer

Do not point

with fingers,

use thumb

with fingers

folded under

Don’t give alcohol as gift

Don’t touch,

raise or show

bottom of feet

Ask before

taking photos

Cultural Aspects CULTURAL IDIOSYNCRASIES

Role and status of women generally rooted in cultural and religious traditions

Pushing for empowering women generally and in the rural areas specifically

through education

Women enjoy greater equality and play a

decisive role in society and professional

environment

CAMBODIA VIETNAM THAILAND PHILIPPINES INDONESIA MALAYSIA SINGAPORE

Men & women

generally

avoid

touching

Women

usually paid

lower wages

Majority of

women

occupy

administrative

positions

Developed

National

Strategy on

Gender

Equality

Main

challenge is

gender bias

and a

patriarchal

structure

Shake hands

if a woman

initiates,

otherwise a

bow or nod

will suffice

Developed a

National

Policy on

Women

Business

dealings

facilitated by

presence of a

man in the

discussions

Women dress

conservatively

Women

encouraged

to wear the

“tudong”

BRUNEI MYANMAR LAOS

Women living

in the cities

are more

confident and

have

prominent

roles in

business,

politics and

society

Women must

not touch a

monk or his

robes

Cultural Aspects STATUS OF WOMEN

Punctuality is important, expected of foreigners

Gift-giving considered

a bribe

CAMBODIA SINGAPORE PHILIPPINES INDONESIA MALAYSIA VIETNAM THAILAND

Give and

receive items

with the right

hand or both

hands

Avoid asking

personal

questions

during

business

meetings

Firm

handshake

standard form

of greeting

If given a gift

reciprocate

with a gift of

equal value

Friday

considered a

religious day

Handshake

with eye

contact is

standard

greeting

Gift giving is

common

Handshakes

are generally

softer

Print all

academic

qualifications

and titles on

your card

handing it

with both

hands

April & May

are main

holiday

periods

Schedule meetings weeks

in advance

Business cards in English & local language

Younger person or person of lower rank initiates greeting and introduces the most senior first

When

addressing

counterparts

use

appropriate

title and last

name until

told

differently

Translate documents in

English and the local

language

Acceptable to be late for meetings but call

to inform

Always

confirm

appointment

s one day

before

Being late is

also

acceptable

but must call

to inform

MYANMAR BRUNEI LAOS

Do not cross

your legs,

keep flat on

ground

Give/receive

business

cards with

both hands

Do not

shorten

names, say

in full

Common to

give modest

gifts to gov’t

officials or

VIPs

Address with

their first

name

followed by

“Than” if they

hold high

position

High quality business

cards are an asset

Business & Management Aspects MEETING ETIQUETTE

Negotiations usually lengthy, at a slow pace

Do not make direct or

intense eye contact

MALAYSIA THAILAND VIETNAM CAMBODIA PHILIPPINES SINGAPORE INDONESIA

Do not

assume

signed

contract is

final

Have a letter

of

introduction

from a bank

or mutual

acquaintanc

e when

initiating

contact

Ideas &

decisions

guided by

feelings and

faith

Bureaucracy

lengthens

negotiations

Wants to

examine all

facts and

documents

and consults

with third

parties

Tend to be

calm and

composed,

hard

bargainers,

be patient

Do not

under-

estimate

influence of

family unit

Non-verbal

communica-

tion is just as

important

Do not ask

personal

questions

Initial

introductions

are formal

Allocate time

for prayers

Always

recap items

discussed

during the

meeting

Maintain soft voice and moderate hand gestures

Periods of silence common, indicates

consideration

Engage in light conversation before/after

meeting

Body

language

and facial

expression

are believed

over words

Decision

makers

usually

consult with

third parties

before

making

decisions

MYANMAR BRUNEI LAOS

Speak slowly, clearly, softly

Avoid talking

about sex,

politics,

religion

Bargaining

is expected,

although

done in a

more gentle

manner

Be patient,

decisions not

made quickly

Business & Management Aspects NEGOTIATION STRATEGIES

Foreigners cannot own land

Property lease or titles for “Right to

Use/Build”

Undertake due diligence

JVs with a local partner seems most efficient and can assist with

language barriers and business culture

Consult with local professionals

PHILIPPINES VIETNAM CAMBODIA MALAYSIA INDONESIA THAILAND SINGAPORE

Business

structure

depends on

foreign

ownership

restrictions

imposed on

certain

industries

Need an

approved

project to

incorporate

Most foreign

investors

prefer

limited

liability

company or

PMA

Liberal with

foreign

ownership of

properties

Rep or

Regional

Office or

Shelf Co

fastest way

Foreign

ownership

restrictions

imposed

only on

private

residential

lands

MYANMAR BRUNEI LAOS

Business

premises

required to

be licensed

Most

industries

can be 100%

foreign

owned

Business & Management Aspects MARKET ENTRY STRATEGIES

Takes time to build relationships, invest time

Business relationships are

formal

MALAYSIA SINGAPORE THAILAND INDONESIA VIETNAM CAMBODIA PHILIPPINES

Personal contacts and networks are

important

Developing relationships more important

and vital to successful business dealings

LAOS BRUNEI MYANMAR

• Business

relationships

not as formal

Business & Management Aspects ESTABLISHING RELATIONSHIPS

CAMBODIA Communicaid Group Ltd. (2009). Doing Business In Cambodia /Cambodian Social and Business Culture (Online document). http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Cambodia.pdf

B2B Cambodia (n.d.). Business Startup (www page). http://www.b2b-cambodia.com/b2b-business-startup/

Women in Cambodia. (2013 April 17). In Wikipedia, The Free Encyclopedia. Retrieved 22 May 2013, http://en.wikipedia.org/w/index.php?title=Women_in_Cambodia&oldid=550791101

New Zealand Government Free Trade Agreement (Dec 2008). Cambodia Official Development Assistance (www page). http://asean.fta.govt.nz/cambodia-official-development-assistance/

INDONESIA Communicaid Group Ltd. (2009). Doing Business In Indonesia/Indonesian Social and Business Culture (Online document). http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Indonesia.pdf

Expat Web Site Association (n.d.). Foreign Investment and Company Establishment (www page). http://www. expat.or.id/business/companyestablishment.html

Expat Web Site Association (n.d.). Buying Property (www page). http://www. expat.or.id/info/buying proerty.html

Women in Indonesia. (2013 April 17). In Wikipedia, The Free Encyclopedia. Retrieved 22 May 2013, http://en.wikipedia.org/w/index.php?title=Women_in_Indonesia&oldid=550789891

References

BRUNEI Kwintessential (n.d.). Brunei – Language, Customs, Culture and Etiquette (www page). http://www.kwintessential.co.uk/resources/global-etiquette/brunei.html

Austrade (n.d.). Doing Business in Brunei (www page). http://www.austrade.gov.au/Export/Export-Markets/Countries/Brunei/Doing-business

http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Cambodia.pdf






http://www.b2b-cambodia.com/b2b-business-startup/







http://en.wikipedia.org/w/indes.php?title=Women_in_Cambodia&oldid=550791101

http://asean.fta.govt.nz/cambodia-official-development-assistance/







http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Indonesia.pdf






http://www.expat.or.id/business/companyestablishment.html



http://en.wikipedia.org/w/index.php?title=Women_in_Indonesia&oldid=550789891

http://www.kwintessential.co.uk/resources/global-etiquette/brunei.html



http://www.austrade.gov.au/Export/Export-Markets/Countries/Brunei/Doing-business





MALAYSIA Communicaid Group Ltd. (2009). Doing Business In Malaysia/Malaysian Social and Business Culture (Online document). http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Malaysia.pdf

NBC Group (n.d.). Buy Ready Made Shelf Company (www page). http://www.nbc.com.my/shelf-company.html

Expatriate Advisory Sdn Bhd. (n.d.). All About Foreigners Investing in Malaysia (www page). http://malaysiabizadvisory.com

Government of Malaysia (October 2011). Statement by The Honourable Mr. Nur Jazlan Mohamed Member of Parliament and Representative of Malaysia (online document). http://www.un.org/womenwatch/daw/documents/ga66/ Malaysia.pdf

Expatriate Advisory (n.d.). Simplifying Your Property Investment in Malaysia (www page). http://expatriateadvisory .com

PHILIPPINES Communicaid Group Ltd. (2009). Doing Business In The Philippines/Philippine Social and Business Culture (Online document). http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Philippines.pdf

www.philippinecountry.com (2006). Philippine Culture – Philippine Society (www page). http://www.philippinecountry.com/philippine_culture/philippine_society.html

Philsite (n.d.). Real Estate Buying Guide in the Philippines for Foreigners (www page). http://real-estate-guide.philsite .net/foreigners.htm

Discussion Outline

MYANMAR Austrade (n.d.). Doing Business in Myanmar (www page). http://www.austrade.gov.au/Export/Export-Markets/Countries/Myanmar/Doing-business

S.S.T. Tourism Co., Ltd (2008). Do’s & Don’ts in Myanmar (www page). http://sstmyanmar.com/tourism/travel_news/Travel_tips.htm






http://www.nbc.com.my/shelf-company.html



http://malaysiabizadvisory.com/

http://www.un.org/womenwatch/daw/documents/ga66/Malaysia.pdf

http://www.un.org/womenwatch/daw/documents/ga66/Malaysia.pdf

http://expatriateadvisory.com/







http://www.philippinecountry.com/

http://www.philippinecountry.com/philippine_culture/philippine_society.html

http://real-estate-guide.philsite.net/foreigners.htm







http://www.austrade.gov.au/Export/Export-Markets/Countries/Myanmar/Doing-business





http://sstmyanmar.com/tourism/travel_news/Travel_tips.htm

SINGAPORE

Communicaid Group Ltd. (2009). Doing Business In Singapore/Singapore Social and Business Culture (Online document). http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Singapore.pdf

Singapore Land Authority (n.d.). Property Registration Services (www page). http://www.sla.gov.sg/htm/ser/print Friendly.htm

THAILAND

Communicaid Group Ltd. (2009). Doing Business In Thailand/Thai Social and Business Culture (Online document). http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Thailand.pdf

Government of Thailand (March 2012). Statement of Mrs. Rarinthip Sirorat, Minister of Social Development and Human Security (Online document). http://www.un.org/womenwatch/daw/csw/csw56/general-discussions/member-states/ Thailand.pdf

US Commercial Service (2010). Doing Business in Thailand: 2012 Country Commercial Guide for US Companies (Online document). http://export.gov/thailand/build/groups/public/@eg_th/documents/webcontent/eg_th_045804.pdf

Discussion Outline

LAOS Allo Expat (n.d.). Business Etiquette in Laos (www page). http://www.laos.alloexpat.com/laos_information/business_etiquettes_laos.php

ActiveTravel.Asia (n.d.) Women in Laos (www page). http://www.activetravellaos.com/country/?p=66

Austrade (n.d.). Doing Business in Laos (www page). http://www.austrade.gov.au/Doing-business-in-Laos/default.aspx

Orient Expat (n.d.) Important Do’s and Don’ts in Laos (www page). http://www.orientexpat.com/laos/dos-donts






http://www.sla.gov.sg/htm/ser/print Friendly.htm

http://www.sla.gov.sg/htm/ser/print Friendly.htm






http://www.un.org/womenwatch/daw/csw/csw56/general-discussions/member-states/Thailand.pdf






http://export.gov/thailand/build/groups/public/@eg_th/documents/webcontent/eg_th_045804.pdf

http://www.laos.alloexpat.com/laos_information/business_etiquettes_laos.php

http://www.activetravellaos.com/country/?p=66

http://www.austrade.gov.au/Doing-business-in-Laos/default.aspx







http://www.orientexpat.com/laos/dos-donts



VIETNAM

Communicaid Group Ltd. (2009). Doing Business In Vietnam/Vietnamese Social and Business Culture (Online document). http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Vietnam.pdf

Mayer Brown JSM (n.d.). Guide To Doing Business in Vietnam (Online document). http://www.mayerbrown.com/files/Publication/28f497ea-c472-4e3a-9c65-e4991babfe61/Presentation/Publication Attachment/8f775664-7c18-4a40-b523-ec8b9b54d3a9/11740.pdf

Government of Vietnam (March 2010). Statement by H.E. Nguyen Thanh Hoa Deputy Minister of Labour, Invalids and Social Affairs at the 54th Session of the Commission on the Status of Women (Online document). http://www.un.org/womenwatch/daw/beijing15/general_discussion/Vietnam.pdf

OTHERS

Photos courtesy of:

•Flickr (www.flickr.com)

•FreeDigitalPhotos.net (http://www.freedigitalphotos.net/images/about.php)

•Free Stock Photos (http://freerangestock.com/)

•John T. Pilot for Jose Rizal Monument

•Google Maps

Country Data courtesy of IndexMundi (http://www.indexmundi.com/about.html)

Discussion Outline

http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing_Business_in _Vietnam.pdf





http://www.mayerbrown.com/files/Publication/28f497ea-c472-4e3a-9c65-e4991babfe61/Presentation/PublicationAttachment/8f775664-7c18-4a40-b523-ec8b9b54d3a9/11740.pdf


















http://www.un.org/womenwatch/daw/beijing15/general_discussion/Vietnam.pdf

http://www.flickr.com/

http://www.freedigitalphotos.net/images/about.php

http://freerangestock.com/



http://www.indexmundi.com/about.html



THANK YOU

Ma. Aurora “Boots” Geotina-Garcia Global Summit of Women 2013

Kuala Lumpur, Malaysia

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