Thinking of setting up a business in Southeast Asia? Hold on a sec! There are a few things you HAVE TO know.

There are many motivations that can lead you to expand business internationally: increased sales, meaning more profit; lower capital, operations, and labor costs; diversification to protect investments and their markets by dealing with a variety of countries (meaning a recession in one country won't have a huge effect if business is doing well in another country); and an advantage over your competitors because multinational companies usually have more competitive prices and larger selections.

These reasons are exactly what get businessmen to expand their businesses in Southeast Asian or ASEAN (Association of Southeast Asian Nations) countries. According to a survey by the American Chamber of Commerce in Singapore, ASEAN – comprising Myanmar, Thailand, Laos, Cambodia, Vietnam, Malaysia, Singapore, Brunei, Indonesia, and the Philippines – is showing strong growth, unlike Europe or the U.S. In that part of the world, the growth is translating into more profit, more investment, and more expansion for many U.S.-based companies. As a result, in 2012, more managers have been asking to be relocated to places like Manila.

Before you start trying to get your hands on some ASEAN action, remember that Asians are not the same as Americans and they should not be treated as such. Certain traditions and decorum are to be followed and respected if you truly want expansion to that area.  Here are some of the basic things you should know before you jump into Southeast Asia:

The Greeting

Greetings, in a social context, will depend on the ethnicity, belief, and (for some countries) gender of the person you are meeting. The general rule in Southeast Asian countries is that one should greet the oldest (or, in a corporate setting, the one with the highest position) person first. Although most of these countries have accepted the Western concept of shaking hands, Thailand still prefers the wai. However, the rules vary depending on which country. For instance, Bruneians, Malaysians, and Muslim Singaporeans traditionally do not shake hands with the opposite sex. Filipinos, however, are not as reserved with touch - handshakes are sometimes accompanied with pats on the back for men, while women (depending on the degree of the relationship) may give each other a kiss on the cheek.

Exchange of Business Cards

Unlike Americans, Asians do not simply pass business cards and place them in their pockets. One must use both hands to hand out and receive them.  Furthermore, it is good etiquette to examine the card and throw in a positive comment about it, before storing it in a card holder. Asians tend to treat business cards with more respect. For all you tech savvy businessmen out there, sorry - but you probably won't be able to use the Bump app in your business phone to exchange info with most Asian businessmen. The exchange of cards is as much a tradition (with its own etiquette) as it is a necessity.

Proximity and Touch

Remember that Asians are more conservative than Caucasians. Proximity to people is a big deal because one’s proximity to another is often dictated by their relationship. Therefore, it would be considered impolite to stand too close to a new acquaintance. Apart from that, different cultures have different ethical standards with regards to touch. Always take these into consideration – Is it acceptable to touch your foreign partner/client? What if this partner/client were a woman? Will it be acceptable for you to try to shake hands?

Gift Giving

Many Asian countries have specific rules when it comes to exchanging business gifts. These rules are usually deeply ingrained in the culture of the locale. For example: in Indonesia and Brunei, one should avoid alcoholic beverages and any food item which is not "halal" (acceptable as a gift), since they are predominantly Muslim. In most ASEAN countries, the appearance of the gift matters. The wrapping should be wrapped attractively. However, be very wary with your color choice for the wrapping paper, and/or the flower species you choose. This is because, certain colors and flowers in varying Asian cultures are associated with mourning. If you present your gifts this way, your clients/partners may get the wrong idea. Also, expect that the gifts will not be opened until all guests have left. Asians open the gifts on their own because they want to be sensitive to those who did not receive any.

Business Meetings

Time is gold, as the old saying goes; however, business deals in most Asian countries are not done in haste. In countries like Indonesia and Vietnam, initial meetings may be more about getting acquainted with your new partners rather than getting down to business. They prefer to invest time in building a good relationship with their partners, so expect that negotiations may be a bit slower.

Appointments are required and should be made several weeks in advance, before a face-to-face meeting. This is preferred to other more impersonal methods like phone calls, emails, or letters. On the day of the meeting, punctuality is expected. Tardiness will be taken as a lack of respect for your prospective partners.

Communication

Most Asians communicate through indirect and subdued manners. Loud people would come across as slightly aggressive. It is also very difficult for them to say "no" even if they would like to turn down a request or if they disagree with something, for fear of confrontation and "loss of face".  Some, like the Vietnamese, would opt to stay silent if in disagreement. Others, like the Malaysians, would rather say "I'll try" or "I'll see what I can do" to avoid a strain in the relationship.

Asians – Of shame and face

One distinct thing that all these nationalities have in common would be the Asian concept of maintaining face, honor, and avoiding shame. It is a mark of personal dignity, a sense of social propriety, and conforming to social norms. Asians put "face" in high regard because it reflects a person's reputation, dignity, and prestige. Furthermore, "face" is protected to avoid bringing shame to the family.  It is considered to be a commodity which can be given, lost, taken away, and earned. Thus, they avoid criticizing, insulting, putting someone on the spot, showing anger, refusing a request, or generally doing anything which may embarrass them or others publicly.

Bear in mind that these are basic and general guides. Each culture and society will have several nuances and it would be foolish to suggest a uniform understanding of a nation's etiquette. Always take into consideration the personal cultures of individuals. However, these general guidelines can assist in avoiding offense and (hopefully) creating a more harmonious relationship with your international partners.

Author Bio
Monique Jones is an Engineer who deals with telephone systems. Besides being an Engineer, she also works as a part time writer. She helps her colleagues and other people about their communication issues, giving effective solutions to address their needs.