Doing Business in ASEAN: An Overview
Introduction
Dezan Shira & Associates, a leading consultancy in Asia, produced Doing Business in ASEAN 2017, an essential guide for foreign companies navigating the complex regulatory environment of Southeast Asia. This report, led by Managing Editor Samuel Wrest and Technical Editor Maxfield Brown, serves as a comprehensive resource for businesses looking to establish, maintain, and grow operations within the ASEAN region.
Key Points:
- Demographic and Economic Shifts: The report highlights the changing dynamics in the global manufacturing sector, driven by the shift from U.S. and European bases to an Asian base dominated by China, followed by the rise of India as a potential competitor.
- Geographical Influence: It emphasizes the role of countries within ASEAN—Vietnam, Indonesia, the Philippines, Malaysia, and Thailand—in the global supply chain due to their strategic geographical location and free trade agreements with China and India.
- Market Transformation: China's transition from a manufacturing powerhouse to a significant consumer market impacts foreign investment strategies, leading to increased costs for low-medium end manufacturing and growing opportunities in high-tech sectors.
- Future Prospects: The report forecasts a shift in the global supply chain, influenced by emerging markets like India and the continued development of ASEAN nations. It predicts that "Made in India" will surpass "Made in China" in mass-produced goods over the next decade.
- ASEAN's Role: ASEAN offers a triangular approach to foreign investment, combining a substantial middle-class population, diverse talent pool, and advantageous trade agreements with China and India. This combination transforms the way the global supply chain operates.
- Navigational Tools: The guide provides insights into navigating the ASEAN business environment, covering taxation, human resources, and legal frameworks, among other critical areas.
- Country Profiles: Detailed country profiles offer guidance on setting up businesses, human resources management, and tax considerations in each ASEAN nation.
- Navigating Challenges: The report addresses challenges such as tax sophistication, geographical diversity, and strategic planning, providing solutions for both SMEs and MNCs to thrive in the Asian market.
Conclusion
Doing Business in ASEAN 2017 is a valuable resource for businesses aiming to expand into the ASEAN region. It underscores the evolving landscape of global manufacturing and the strategic importance of ASEAN nations in shaping the future of the global supply chain. By understanding the nuances of each ASEAN country and leveraging the region's unique advantages, companies can navigate the complexities of doing business in Asia effectively.