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
653,508 sq km land area
Kyat currency
Buddhist (89%)
Burmese
Nominally civilian parliamentary
President head of state and government
US$89.2B 2012 GDP PPP
US$1,400 2012 GDP/capita PPP
Lao People’s Democratic Republic
6.6M population
230,800 sq km land area
Kip currency
Buddhist (67%)
Lao language, French, English
Communist state
President head of state
Prime Minister head of government
US$19.2B 2012 GDP PPP
US$3,000 2012 GDP/capita PPP
Republic of Indonesia
248.6M population
1.8M sq km land area
Rupiah currency
Muslim (86%)
Bahasa Indonesia, English, Dutch
Republic
President head of state and government
US$1.2T 2012 GDP PPP
US$5,000 2012 GDP/capita PPP
Republic of the Philippines
103.8M population
298,170 sq km land area
Philippine Peso
Catholic (83%)
Filipino, English
Republic
President head of state and government
US$416.7B 2012 GDP PPP
US$4,300 2012 GDP/capita PPP
TTHHAAIILLAANNDD BBRRUUNNEEII MMAALLAAYYSSIIAA SSIINNGGAAPPOORREE VVIIEETTNNAAMM
Kingdom of Thailand
67.1M population
510,890 sq km land area
Baht currency
Buddhist (95%)
Thai, English
Constitutional Monarchy
Monarch head of state, Prime Minister head of government
US$646.1B 2012 GDP PPP
US$10,000 2012 GDP/capita PPP
State of Brunei, the Abode of Peace
408,786 population
5,265 sq km land area
Brunei Dollar currency
Muslim (67%)
Malay, English, Chinese
Constitutional Sultanate
Monarch (Sultan & Prime Minister Title) head of state and government
US$21.9B 2012 GDP PPP
US$50,500 2012 GDP/capita PPP
Malaysia
29,2M population
328,657 sq km land area
Ringgit currency
Muslim (60%) Buddhist (19%)
Bahasa Malaysia, English, Chinese
Constitutional Monarchy
Monarch head of state, Prime Minister head of government
US$492B 2012 GDP PPP
US$16,900 2012 GDP/capita 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
US$326.7B 2012 GDP PPP
US$60,900 2012 GDP/capita PPP
Socialist Republic of Vietnam
91.5M population
310,070 sq km land area
Dong currency
Buddhist (9%) Catholic (7%)
Vietnamese, English
Communist state
President head of state, Prime Minister head of government
US$320.5B 2012 GDP PPP
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
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
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
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
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•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
THANK YOU
Ma. Aurora “Boots” Geotina-Garcia Global Summit of Women 2013
Kuala Lumpur, Malaysia
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