Accessing Asian market is key for most international companies. Using Hong Kong or Singapore as springboards is a good strategy and offers numerous advantages including prime locations, developed infrastructures, free circulation of goods, simple tax systems, and business friendly environments.
Direct investments in specific jurisdictions are also becoming more frequent, often targeting Australia, mainland China, or Vietnam. Still, accessing the Asian market from Europe comes with some challenges. Entrepreneurs should seek proper advice and bear in mind cultural, tax, and legal factors.
Choose the most appropriate country
“Doing business in Asia”: yes but where?
Hong Kong and Singapore certainly remains key hubs in Asia, the first one to access North East Asia and mainland China, the second one to tackle South East Asia. Both have solid grounds to attract international companies.
While Hong Kong ranks as the world’s third easiest place to do business according to the World Bank’s Doing Business 2020 Report, Singapore remains well known for the abundance of skilled resources, efficient and open economy and a strong intellectual property rights system.
Both enable companies to set-up regional strategies in Asia. As for direct investments, Australia mostly attracts entrepreneurs willing to deploy services, while Vietnam and China both offer solid options for production. In fact, Australia relies on a strong serviced based economy, with recognised knowledge in financial and insurance, education, construction, healthcare, professional, scientific course the dreamt target in terms of market potential.
And its growing middle class and strong internal consumption attracts more and more international businesses for distribution. Human resources is however coming at higher costs, and China is therefore not anymore the only option for production. Instead, many companies consider alternative strategies in Asia including Vietnam, where production quality has
increased drastically while labour costs remain on the lower range. Fidinam has direct presence in all these markets, where it supports entrepreneurs and SMEs with their
local growth.
Don’t underestimate time to market
What is successful in Europe may not be successful in Asia. Hence, sticking to your existing strategy, no matter how effective it proved in Europe, may not be the best plan. You will need a tailormade approach. Entrepreneurs should not underestimate the time needed to understand the local market and adjust their business model accordingly.
Entrust the right professionals
Having strategic decisions taken at the level of Western headquarters may not always work, especially in Asia where pace of doing business is faster and decisions need to adapt local factors. Besides, the recent pandemic has proven that a “glocal” approach is key to success
when physical barriers emerges. Hence, devolving key decisions to local managers having a global vision (“glocal”) is now crucial. Empowering the right people, having the required
expertise, market knowledge, and Asian contacts, is often the best investment headquarters can make.
Fidinam Group
Thanks to its wide network of professionals, Fidinam can liaise entrepreneurs with the right local partners. By no means finding the right banker or custom broker is merely a Google click away, and this is why Fidinam has supported so many entrepreneurs over the past 60 years. Fidinam can help you spotting the right place, connect you with the right people, and provide you with tailor-made solutions for you and your business worldwide.
Anne De Roulhac, Head of French Desk at Fidinam (Hong Kong) Ltd. Get in touch with Anne by filling the form here!
