Analysis of the Advantages of Asian Economy and How It Can Be Applied to Belgium

About ASEAN

We’ve have spoken about this topic multiple times during Asian Business classes. An organization that unifies the Southern part of Asia. ASEAN was discovered on August 8th 1967 in Thailand. The main finders of this organization is Indonesia, Malaysia, Singapore and of course Thailand. Others started joining earlier on, like for example Brunei joined in January 7th 1984, later on Vietnam joined in 1995, Lao PDR and Myanmar on 1997 and lastly Cambodia joined in April of 1999. Now leading it to the ten member states of ASEAN.

The organization agreed to set up some rules and principles in order to strengthen the relationship and support each other when in need. In my opinion, I support organizations that are supportive and want to contribute into helping their partners. This paper is to give you an insight of how different the Asian continent operates comparing to the one of Belgium. Belgium is part of an organization as well which is the European Union (EU), they too have some rules and principles to support each others, but there is a fraction within the nations of the EU, here I’m going to mention some key rules and goals ASEAN has set up that are beneficial for all countries part of ASEAN.

The EU is was formed after WWII, the treaty of Rome was formed on January 1 1958, the Single European Act was formed on 1 July 1987, treaty of Maastricht on 1 November 1993, the treaty of Lisbon was formed on 1 December 2009 and finally the Last polity was admitted on 1 July 2013. The European Union has quit similar goals as ASEAN, they highly value respect in the organization and want to help each other when it’s needed.

Goals

1. They want to quicken the economy, they have set up social progress and cultural developments to aim equality and partnership in order to strengthen the foundation for a well-off and peaceful community of ASEAN.
2. They try to promote peace and strength by giving respect to the justice system and by the giving ‘rule of law’ in the relations amongst the countries of ASEAN.
3. Collaborations, help and assistance on the issues of the economy. Helping to understand how their economy will impact their country as individuals, but also as members.
4. Being there for each other when something goes left, help with the training and research of the educational, professional and administrative aspect.
5. Making sure that their collaborations are strong, the exploitation of agriculture and industries. Also to grow their trade and to bring comfort to their citizens.
6. To promote the Southeast Asian studies and to keep tight and beneficial cooperation with regional organizations that have the same goals as them.

ASEAN has created a few fundamental principle that each member of ASEAN must follow, this was set up in order to become a successful organization that has respect for each other and others.

Principles

1. Give respect for the independence, sovereignty, equality and national identity of all members of the ASEAN community
2. No involvement in the affairs of other countries, only if needed.
3. Respect different opinions, differences or disputes of each other.

The growth of China and India & the EU

Asia has and is continuing to do well in the economy game, but the two major ones are China and India. The two countries are by their size, ‘economic giants’ and while they grow at the massive rate, it is obvious that their growth will have a major impact, not only for their country but for the rest of the world too.

]Even though the importance of these two countries, China had a GDP of 6,4% and India a GDP of 6,3% according to the World Bank data of 2016. This is the fastest growth for any country that is on the top of the economy. These two countries are making history in the economy books, obviously Belgium hasn’t reached this goal yet, although Belgium is part of the most successful organization, which is the EU. It is expected for China and India to boost their economy in my opinion, they have a gigantic population. China has a population of over 1.4 billion and India 1.3 billion, this is why they have the fastest rates of growth of household and consumption. Whilst China and India are doing great, the EU had a not so impressive GDP per capita of 1,7 %, the US had only had 1,6%. The 2016 Data showed the same growth for China and India and slow growth for the EU and US.

According to ‘Why are china and India Growing so Fast’ written by J.Ross (2016), whose a senior at Chongyang Institute, chief economist of HSBC, Pranjul Bhandari analyzed these rapid growths. He stated that the increase of India’s investments reached 21% while private investments went down by 1,7%. To make everything clearer, this means that China and India are boosting faster by rapid rising state investments, which of private investments aren’t a big part of the growth.

For the western countries, which Belgium is part of, are experiencing slow growth. But bare in mind that this is an analysis of 2016, we are 2019 and a few changes have occurred during the years but never less to say that China and India are still on top. The first quarter of 2016, China’s GDP was 6,2% and India 6,6%, unfortunately EU had only 1,7%. This means that Asia is really coming up a team to conquer the world, literally. But there is still chance for Belgium to grow too, they need to learn the same strategy as China and India, but what I ‘ve noticed is it will be harder since Belgium has two states in one country which are Vlaanderen and Wallonië, so state investments will not look appealing to foreign investors.

The Hofstede dimensions: China & Belgium

I made a Hofstede analysis in order for us to see how different Belgium is compared to China. China is a homogenous country, where as Belgium is more multi cultural. It is always interesting to see the attitude of countries and what it teaches us about a character of a country.

First lets start with Belgium:

Power distance

This shows us that Belgium is a society that accepts differences. A sort of hierarchy is needed in this country, where people with a lot more power will have some disadvantages. The power distance is in the middle in Belgium. It may not be the case in Brussels as it is kind of in between of Flemish and Walloons, but the two have their own power distance where administration, business, transport etc are taken care of in their own way. Belgian people have a very formal way to talk to managers and higher ups. The way information is passed around is centered by power, therefore equally done. Control isn’t seen as a rare thing in Belgium, it is even required In the country.

Power distance China

China scored 80 on power distance, they don’t see inequality amongst people as an issue, actually they find it weird for an office worker to be able to feel too comfortable with their manager. Individuals are taught to have a high sense of formality and permission ‘Ask respectfully and it shall maybe be given to you’ is the way I would describe it. They also don’t believe that people on lower positions should have higher expectations beyond their rank.

Individualism Belgium

Belgians scored 75 on this index. This shows that Belgians like individual and private opinions, taking care of themselves and immediate family, than belonging to a group. In other words they don’t like to be labeled. In the work space, relationships are contract based, they will rather want you to focus on why you are here and your performance in the job field. You can state your opinion but it is preferred to state it in a formal and respectful way, especially to your higher ups.

Individualism China

China scored 20 on this index, which already says a lot compared to Belgium. China is a highly communistic culture where individuals tend to act in the interest of a group of people. They don’t feel like they should state their opinions and will prevent doing so that at their job. When it comes to hiring closest family members tend to get preferential treatments such as leaving work early or not being scold for not doing a better etc. Chinees people are also not committed to their job or company, which I found really weird as it is known in the Asian culture, that working hard and dedication is key to success. Chinees people are very supportive if they are familiar to you, they tend to be cold or shut down when they don’t know you on a personal level.

Masculinity Belgium

When scoring higher on masculinity, shows that it’s a country that is driving, power oriented and wants to be the best of the best, this makes me think of the US as an perfect example. But when scoring higher on femininity that shows that you’re a country that cares for it’s people and the quality of life of the citizens. Belgium scored with 54 points on this index, making them a masculine country. In my opinion I agree with this point because Belgians strive to be the best they can be, they rather archive mutual agreement than winning a discussion.

Masculinity China

At 66 China scores higher than Belgium, making it a extremely masculine country, they are success oriented and driven to become the best. This makes perfect sense as Chinees people will sacrifice family and free time for work. Service people, like hairdressers, nail salons will even sometimes work late to earn more as a business. They don’t value free time as we do in the west and even farmers will leave their family behind to secure a better job. Another example that widely known to be a common thing in China and Asia, are students being driven to earn higher grades than average, because it is been linked to being successful.

Uncertainty avoidance Belgium

Belgium scored an astonishing 94 on this index. This is the cause of being repeatedly ruled by other countries. Certainty is often seen through academic work and ideas that can respond for the need of detail, context and background. Belgians like to be taught and trained. In rules and security are preferred, else it creates stress, that’s why planning and being organized is favored in Belgium.

Uncertainty avoidance China

China scored low with 30 points. Chinees people are very ambiguous, even the Chinees language is full of ambiguous meanings that are hard for western people to follow. Chinees people are adaptable and entrepreneurial, they learn fast when something is taught to them and have a high sense of opening a business. It’s interesting that 70 to 80 % of Chinees businesses are small and family owned

Long term orientation Belgium

In this type of society, people believe that the truth depends on the situation, context and time. They have the ability to adapt easily in situations and changing conditions and have a strong ability to invest and save money. Belgians also thrive in archiving better results, this goes hand in hand with the fact that Belgium is a masculine country.

Long term orientation China

China scored 87 on this one, which means they have realistic views. In societies with this ideology, they believe that the truth depends on the situation, context and time, just like Belgians. They can adapt easily and thrive to be successful.

Indulgence Belgium

Belgium scored with 57 on this one. Which means it is a indulgent society. They have the urge to be free and spend time doing fun things and enjoy. This is a very positive attitude as a country because they don’t put pressure on themselves and act as individuals. Belgians place a higher importance on free time and do as they please, with caution obviously. There is also no limits to spending money.

Indulgence China

China scored vey low with only 24 points, which isn’t shocking in my opinion, Chinees people tend to be very sarcastic and doubtful a lot. Individuals with this mindset have a perception that the way they act is linked to how society sees them, thus being free and indulging yourself is somewhat wrong in their eyes.

How will it benefit Belgium

Now after doing my research on the Asian economy and it’s growth, it could and can benefit Belgium in so many dimensions of the Belgian economy. China and India major reasons where consumption and state investing. Belgium is doing well in terms of employment and trading, since Belgium is part of the EU, they benefit from a lot, but as we have stated in our paper the EU GDP per capita is very low. China and India have found a smart way to thrive their economy, by private investments it will boost the economy. Belgium could consider using this method to boost their economy. On my research of ASEAN, they have set fundamental principles to help one another. They give advice and recommendations to their fellow members, if the EU had a basic principle, they could help other countries within the EU.

For example, the Greek crisis was a vivid example of how there are no basic principles set to help during hard times in the EU. Therefore, their economy is dropping. Asians have respect for each other and hardworking, they put their job first before anything, as stated in my Hofstede dimensions, Chinees have a low score on indulgence because leisure time is seen as a bad thing, whilst Belgians value free time more. Now I'm not saying that Belgians should work 24/7, but a little discipline will help them to grow their economy. Belgium is on an overall scale doing well with their economy and future insight on their economy looks bright. They need to sort out their pension rate it is causing a lot of young graduates to become jobless. Once Belgium gets a hold of this theory, it will make its citizens live much better and easier.

JuiceInnov8

What is JuiceInnov8?

JuiceInnov8 is a university spin-off deep-tech startup with a focus in food biotechnology space. Their mission is to reinvent the juice industry by creating a better and healthier juice with less sugar and lower calories.

The startup was founded in 2014 by Chonchayong Trairatkeyoon. JuiceInnov8 is a startup that is located in Bangkok, Thailand. Since they are a university spin-off, they have their workplace at the Chulalongkorn University of Bangkok. They also have a launch site in San Francisco. JuiceInnov8 is one of Asia’s top rising deep-tech startups.

The company is now working with leading brands and suppliers in the food & beverage supply chain in Asia, North America, and Australia. Since the cost of operating and development is lower in Asia compared to other regions, they have an advantage in scaling the technology. This means that they can deliver their technology platform to customers anywhere in the world while maintaining cost and competitiveness in development and production in Thailand.

What does JuiceInnov8 do?

What they exactly do is they cultivate and screen through hundreds of microbes from the nature to find the exact and perfect natural sugar reducer for a specific type of juice under a controlled condition and selected pathway.

Their technology platform will enable juice producer to customize a range of natural sugar reduction from mildly sweet – less sugar to sugar-free – zero calories. Their goal is to reduce at least 30% of sugar from every glass of juice we drink.

SWOT-analysis

With the SWOT-analysis you’ll have a better insight into JuiceInnov8.

Strengths

• First venture-backed food biotech startup in Asia
• Lower cost of operating and development
• Developing healthy juice
• Unique concept

Weaknesses

• Lack of reputation
• Need a lot of funding’

Opportunities

• Working with industry partners to launch a new category of products
• Many collaborations with international companies
• Expanding to other continents

Threats

• Many competitors (who have loyal customers and relationships with businesses that they regularly work with)

PESTEL-analysis:

The PESTEL-analysis will help us see if JuiceInnov8 will succeed in the future.

Political

If we’re going to look to the political factors of Thailand, then we can conclude that Thailand has been somewhat unstable but they recovered after a short downturn by the help of the tourism industry and the countries largest companies.

Economic

As I mentioned earlier JuiceInnov8 is a deep tech company and they are becoming more successful. As a deep tech company, they will move Thailand from a middle to a high-income economy. This will benefit all companies. Aside from that, they can encourage an innovative society that will bring sustainable growth.

Social

Thailand had a literacy rate of 95.7% for the total population in 2010. The government spent around 4.3% of GDP on education during 2006–2009. The high literacy rate signifies the presence of a large educated workforce.

Technology

Manufacturing increasingly focused on green technology.

Environmental

Thailand faces problems with air declining wildlife populations, deforestation, soil erosion, water scarcity, and waste issues. The cost of air and water pollution for the country scales up to approximately 1.6-2.6% of GDP per year. Thailand’s economic growth has come at great cost in damage to its people and environment.

Legal

The Labour Protection Act (LPA) prohibits discrimination in employment based on gender, except where equal treatment is impossible because of the nature of certain work. Also, health and safety is a major area of risk for all organizations and one which requires reporting and continues improvement.

Would JuiceInnov8 be successful in Belgium?

I think that it could be successful in Belgium. The product that JuiceInnov8 is working on to launch is a juice with less sugar and lower in calories. We live in an age where people just want to be healthy and have a fit body but it doesn’t always work out the way they want, because we all love sweet drinks that are full of sugar. First of all, it is worth considering that too many sugars are not healthy at all. Secondly, it only causes more damage to our body without realizing it. Another fact to consider is that the more sugar your body consumes the higher chance that you can get chronic diseases.

In Belgium, there aren’t many companies who bring products like this to the market. If JuiceInnov8 would launch their product here in Belgium, then it would be a success for sure. The drink is natural and healthy and Belgians care a lot about their health.

Nowadays shakes are a trend here in Belgium, but many people discovered that they are not healthy at all and are looking for a replacement. So, if the juice would be for sale in Belgium, then many people will buy it for sure. It’s freshly made out of durian fruit, without any added sugars at all, lower in calories and it’s healthy too.

Would JuiceInnov8 be successful in Morocco?

In Morocco, sugar consumption is very high. According to local statistics, sugar consumption is between 35kg and 40kg per person per year.

Moroccans are known for their delicious cookies and mint tea, which is full of sugar. Most of their food is full of sugars but very delicious. They don’t pay attention to what they eat.

Diabetes is one of the very common ‘diseases’ in Morocco. Many locals are becoming more and more aware of the danger to their health of consuming sugar. They try to be a bit healthier by consuming less sugar.

If JuiceInnov8 would launch their product in Morocco it would sell, but not much. As I said before, the chance that they would sell more in the southern part of the country is high. The people there are care more about their health and want to look very fit. So, if they could have a juice sold there with less sugar and lower calories, then they will buy that. Conclusion, if JuiceInnov8 will be a success in Morocco is not so sure. Maybe in some parts of the country, like the Northern part but not the Southern part.