Asian Market Blog
Expanding Distribution under fair Conditions in Southeast Asia
Trade agent offers reasonable costs for market entry to European medium-sized businesses – The distribution of German products into Southeast Asian markets is not an easy task for mid-size enterprises. One must overcome legal hurdles and establish a solid presence, all the while being sure to avoid expensive trade margins. The Thai-German trading company Sanet Trade & Services in Bangkok, however, makes what sounds like trying to square the circle become possible, offering tailor made solutions for almost every type of market entry.
ASEAN: SALES MANAGEMENT AND STRUCTURE: ASEAN (PART 2)
In the first part of our newsletter “ASEAN: SALES STRUCTURE AND MANAGEMENT – Successful sales structuring in the world’s biggest growth market, Southeast Asia” we described how important it is for Western companies to have their own staff on the ground in the relevant country on a permanent basis, that in the ASEAN countries a holistic approach is the basis for successful operations, and that local dealers and distributors should be chosen with the greatest of care. In the second part we will explain, among other things, why local sales staff have to be integrated skilfully and provided with organised support from company headquarters.
ASEAN: SALES MANAGEMENT AND STRUCTURE (PART 1)
Many European companies are currently beginning to realise it: although according to the World Bank the ASEAN countries will be the world’s most reliable growth market until 2035, European business isn’t benefiting from this success. One reason for this is that in the past German companies in particular have equated Asia with China.
Everyone wanted a share of business in the Middle Kingdom, and the casual assumption was that if you had someone who devoted his entire attention to China, then he could also take care of “the few bits and pieces available in Southeast Asia”.
Selectrona Commissions Sanet Vietnam With Major Project
It’s a success story with a difference: It was only in July 2014 that Nguy Xuan Anh established her own consulting company in Ho Chi Minh City and connected with the Sanet ASEAN ADVISORS consultancy network. Just one year later, Xuan Anh has won some well-known customers for a major project with German company Selectrona GmbH: as well as managing the construction of a manufacturing plant in Vietnam, project priorities include site selection, site evaluation, corporate structure, investment promotion, tendering of works and installations as well as recruitment.
Thailand – the Hong Kong of Southeast Asia?
After Thailand had already lowered the general corporate tax to 20%, a new framework for the support measures provided by the country’s Board of Investment (BOI) has been in place since since January 2015. As usual, it is binding and comprehensive. Because it goes into more detail than the previous version, a more thorough analysis will be worthwhile. In addition, the country is also offering new tax incentives as a platform for commercial enterprises.
Internationalization: “The Sanet Hedging Strategy for Investments in Asia”
That the Asian economic area is likely the most lasting growth market for the next decades is well known among export-oriented companies. It is conspicuous that especially German SME’s (Small and Medium Enterprises) put “Asia” on the same level with “China”. Unlike the former colonial power states of France, England and the Netherlands, established bonds with optional countries like Malaysia, Indonesia, Thailand or Vietnam are obviously lacking.
ASIA BRIDGE February 2012: “China vs ASEAN”
For German companies, Asian engagement mainly represents entering the Chinese market. Interestingly enough, experts note that most of the German investors in China have not sent back home a single Euro yet. This factor, relevant as it might be, does not seem to play a relevant role in the location selection for the Asiatic economic region.
‘The business unit’ as a low-cost entry into the ASEAN markets
That’s how you can establish a presence in Thailand, Vietnam or Indonesia.
The falling exchange rate of the euro and the ASEAN Economic Community (AEC), which became a reality on 1 January 2015 ensure that Southeast Asia, with its more than 600 million consumers, is an increasingly attractive market for the German economy. However, getting started must be well conceived and prepared.