Solution Spotlight: Market Entry Studies

The Challenge Set

Business leaders must meet rigorous information requirements to support their decision-making process. They develop market entry strategies with reports that should define:

1. Business Environment

  • Economy and investment landscape
  • Corporate establishment regulations
  • Taxation policies
  • Incentives for businesses
  • Legal institutions
  • Government transparency and corruption
  • Health and safety concerns

2. Industry & Market Performance

  • Size and growth of the industry and market
  • Geographical distribution
  • Evaluation of industry clusters or chain

3. Operational Costs

  • Land access, availability, and cost
  • Labor access, availability, and cost
  • Basic service provision and costs

4. Support Networks

  • Presence of business associations
  • Availability and costs of service providers
  • Identification of production or distribution partners

5. Competition

  • Identifying competitors
  • Competitors’ market share and position
  • Competitors’ sales channels
Continue reading “Solution Spotlight: Market Entry Studies”

China’s New Points-Based Work Permit System

Since April 1, 2017, the application for a Chinese work permit is based on a points-based system that takes into account work experience, skills, education, Chinese language abilities, salary, age, company and industry, and location of work.

The new points system assigns a ranking of A, B, or C to foreign workers, with “A” being the most qualified and “C” being the least. It attempts to unify the foreign worker application process by installing a common framework, as well as quicken review time by introducing an online interface.

Why is China introducing a new points-based work permit system?

The government hopes to attract more A-tier workers to fuel its plans for an economy driven by consumption and innovation. Those ranked as “A” enjoy benefits, such as a faster processing and less documentation required. Additionally, the ranking allows the government to exert greater control over the number of “B” workers, and restrict the number of “C” workers.

A points-based system is common amongst other countries, including the United Kingdom and Canada.

Is the process for obtaining a work visa in China easier after the introduction of the points system?

While the new process requires fewer application materials and the online interface speeds up the process, requirements for notarizations of educational certificates have proved to be a barrier.

The government accepts notarizations by the Chinese embassy/consulate in the applicant’s country, the applicant’s own country embassy/consulate in China, or the Chinese Ministry of Education. However, some countries, including the United States, do not notarize educational certificates in their foreign embassies and consulates. This means that the applicant is left with two options: returning to his or her country and going through appropriate channels there, or going through notarization facilities set up by the Chinese Ministry of Education. 

With either option, the applicant may spend up to one month pursuing the notarization process.

Once the applicant has received the notarization and the other required document, the authorities will review the material and revert their decision in 15 business days.

Continue reading “China’s New Points-Based Work Permit System”

Country Spotlight: The Philippines

What is the outlook for foreign direct investment (FDI) in the Philippines?

FDI inflows to the Philippines remained robust in 2016, exceeding government estimates and surprising many which have criticized the government’s heavy-handed approach to the war on drugs. Moving into 2017, new foreign investment projects are projected to remain consistent with growth figures of the year prior, evidenced by flat business confidence polling in Q1 and similar expectations for Q2. With key growth expected in traditional sectors, such as the business process outsourcing (BPO) sector, the extent to which capital flows will be realized hinges on the reform policies of the Duterte administration.

Bank of Philippines | ©Photo by @jamesyangdu

Intramuros, Manila | ©Photo by @jamesyangdu

ECJ Building, Manila | ©Photo by @jamesyangdu

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