“Companies are dependent on direct search”

An interview with Christian Tegethoff Managing Director, CT Executive Search

What kind of assignments do you usually work in East Europe?

In Poland, the Czech Republic, Hungary, Southeastern Europe and the Baltic we mainly work for clients from West and Central Europe, as well as the Nordics. These are either medium-sized companies or large corporations that have been active in the region for many years and often operate local production sites. There is some preponderance in the B2B sector, especially in capital goods. Our clients also include consumer goods manufacturers, retailers and health care or pharmaceutical companies.

Read the complete interview here. 

Interview with Thomas Piontek

One of your responsibilities at Petrom was recruiting for the Romanian sites. What were the main challenges?

The biggest challenge was clearly the lack of qualified personnel in Romania. That is not really surprising, because 20 percent of the Romanian working population now work abroad. In today‘s European countries, you will find strong Romanian minorities everywhere – blue collars and academics alike. Consequently, the supply of qualified candidates is limited in Romania.

Read the complete interview here. 

An interview with Adrian Stadnicki Regional Director Central Eastern Europe, German Eastern Business Association (OAOEV), Berlin 

How has the trade volume between Germany and Central Eastern Europe developed in recent years?

Germany’s exchange of goods with Central Eastern Europe has been developing very positively for years. The region has become a top partner of the German economy. 2018, Germany’s trade volume with the Visegrád Group and the Baltic States amounted to more than 300 billion euros. The Czech Republic, Hungary and Slovakia rank in front of much larger countries such as Turkey, Canada, Brazil and India in terms of their trade volume with Germany.

Read the complete interview here. 

China Briefing is produced by Dezan Shira & Associates.

On May 9, the Beijing Municipal Human Resources and Social Security Bureau announced plans to raise the city’s minimum wage from July 1, 2019.

The monthly minimum wage for full-time employees will be raised from RMB 2,120 (US$309) to RMB 2,200 (US$321). The hourly wage for part-time employees, however, will remain at RMB 24 (US$3.5) on normal working days and RMB 56 (US$8.2) on statutory holidays.

Read the complete article here. 

Vietnam Briefing is produced by Dezan Shira & Associates

Vietnam recently issued new updates on labor outsourcing regulations under Decree 29/2019/ND-CP (Decree 29). The new regulation came into effect on May 5 and details guidelines on Clause 3 of Article 54 of the Labor Code regarding outsourcing services, deposit payment and the list of permissible outsourced jobs.

Read the complete article here. 

China Briefing is produced by Dezan Shira & Associates.

Following the announcements made in the annual Work Report delivered at the Two Sessions, the Ministry of Finance, State Taxation Administration, and General Administration of Customs have jointly issued a series of new policies on value-added tax (VAT).

The new policies, which took effect on April 1, 2019, aim to enhance economic activity in certain sectors by lowering VAT rates and increasing VAT credits.

Read the complete article here.

India Briefing is produced by Dezan Shira & Associates

Injured workers and worker compensation are key liability issues for any business in India.

This is particularly the case for companies with large labor forces, such as information technology and business process outsourcing (IT-BPO) or industrial companies, but small businesses are also impacted by labor laws that mandate compensation for employees injured on the job.

What laws govern compensation for workplace injuries?

Compensation for workers in India varies depending on the size of the company.

If the business employees more than 20 employees, the Employees’ State Insurance Act, 1948applies. Under this act, employees and the company pay toward an insurance benefit in case of injury. When a workplace injury occurs, the injured employee is able to avail of both medical and financial support.

Read the complete article here. 

China Briefing is produced by Dezan Shira & Associates.

As China’s economy matures, it is also producing more high-skilled labor, pushing up overall wage growth. This was illustrated by an early 2019 report by supply chain procurement solutions firm GEP, which stated that median wages in certain Chinese cities now surpass those in parts of Eastern Europe.

The wage growth has been proven by other comparative data as well in recent years. In 2017, the China Economic Review stated that China’s average wage had trebled between 2005 and 2016 to reach a level higher than in emerging economies like Brazil, Argentina, and Mexico.

Read the complete article here. 

India Briefing is produced by Dezan Shira & Associates

Foreign workers taking up overseas assignments pay more attention to the tax regime of the country when determining costs, and often tend to overlook the social security laws of the country, which are equally important.

India requires every business entity employing more than 20 workers to register with the national social security system, and makes it mandatory for employees and employers to contribute towards retirement and insurance scheme.

Read the complete article here. 

SOTM by africon

Based on our analysis of the available data on automotive parts imports in Sub-Saharan Africa, we found that South Africa, Nigeria, Angola, Kenya, and Ghana were the top five importers of filters, spark plugs and brake plugs into Sub-Saharan Africa in the year 2017. South Africa being the largest market, accounted for 47% of these automotive parts imports worth $355 million, while Ghana being the fifth largest market was worth $21 million.

Read the complete article here. 

ASEAN briefing is produced by Dezan Shira & Associates.

The ten member states of the Association of Southeast Asian Nations (ASEAN) have seen a steady inflow of German investment in recent years. Current trends are expected to continue in the coming years. We looked at German investment in Brunei and Cambodia in the first part of this five-part article, covered Indonesia and Laos in the second part, focused on Malaysia and Myanmar in the third part while looking at the Philippines and Singapore in the fourth part. We now focus on Thailand and Vietnam in this concluding part of the article.

Read the complete article here.

An article by Dezan Shira & Associates.

India is the second most favoured destination for expatriates that want to work in the emerging markets. Over the past few years, India’s rapidly growing infrastructure, industry, and services sectors have opened to greater foreign investments and multinational corporations.

This development has led to numerous employment opportunities for foreign nationals working in skilled and specialized roles in the country. Accordingly, the sectors in India that attract the largest number of foreign professionals are administrative roles in construction and engineering, followed by telecommunications and IT, and financial services.

Read the complete article here. 

Interview with Christian Tegethoff, Managing Director, CT Executive Search.

What steps do European companies typically take when entering the Indian market?

The approach is not very different from that in other countries. Many companies first visit fairs in India to gain an overview of the market. This includes the local customer structure and competition as well as licensing and customs issues.

Especially smaller companies then often decide to work with one or more dealers. These distribution partners usually also act as importers, assuming the transport and customs clearance responsibility for the producer. For the European company, this is a low-risk option because virtually no investment is required.

Read the complete article here. 

An article by Arjun Erry, Partner and Tavishi Das, Associate, Hunt Partners Mumbai

What characterizes the executive segment of the Indian HR market?

The talent pool in India is shallow for senior and upper middle management. There is an acute shortage of qualified, accomplished managers with the right mix of corporate norms, entrepreneurial zeal, and integrity.

Competition for talent is therefore very high in India. In the current job market, the combination of talent and a global mind-set in a candidate is inadequate. Employers are selective and compete fiercely to hire the right candidate from the limited available pool.

Read the complete article here.

ASEAN briefing is produced by Dezan Shira & Associates

German investment in the ten member states of the Association of Southeast Asian Nations (ASEAN) has been increasing steadily and has the potential to grow further in the coming years. We focused on German investment in Brunei and Cambodia in the first part of this five-part article, covered Indonesia and Laos in the second part, and looked at Malaysia and Myanmar in the third part. We next focus on the Philippines and Singapore.

Read the complete article here. 

India Briefing is produced by Dezan Shira & Associates

In addition to the tax and surcharge, the government levies health and education cess at 4 percent on the total tax computed.

There are separate rates for senior individual residents (above 60 years) and ‘super senior’ individual residents (above 80 years).

The International Payroll and Human Resources team at Dezan Shira & Associates has developed a simple calculator to help taxpayers determine their tax returns against the above rates of tax.

Read the complete article here. 

China Briefing is produced by Dezan Shira & Associates. 

Why the 996 work culture will not end anytime soon

The grueling work ethic is both defended and eulogized by employers in China’s technology sector as the very reason for its sudden and accelerated growth over the last 10 years. Jack Ma himself celebrates the constant grind because he believes that it has been integral to the successes of unicorns like Alibaba and Tencent.

Employees at most tech companies are either encouraged or required to put in long, unpaid hours to show their commitment to their jobs and loyalty to the company. Many companies offer their employees a suite of facilities – such as gyms, nap rooms, and laundry services – to further encourage them to spend long hours at the office.

Read the complete article here. 

China Briefing is produced by Dezan Shira & Associates. 

To help foreign investors and taxpayers understand how China computes individual income tax (IIT), China Briefing offers a guide outlining how to calculate and withhold IIT for both resident and non-resident individuals.

IIT calculation and withholding for resident individuals

When a company pays wages and salaries to a resident individual, the IIT amount must be computed using the cumulative withholding method, with the IIT withheld on a monthly basis.

Read the complete article here. 

Vietnam Briefing is produced by Dezan Shira & Associates.

Vietnam’s pilot e-visa program has been extended for another two years and expanded so that tourists from 80 countries can participate. Vietnam Briefing explains who is eligible and what you need to know to travel to Vietnam on an e-visa.

Vietnam recently extended its electronic visa (e-visa) policy until February 2021 and expanded the list of countries that are eligible to participate. An e-visa is typically applied for online, linked to a passport number, and stored on a computer – with no stamp or label delivered before travel.

On February 1, the government issued Decree no 17/2019/ND-CP, extending the pilot project launched in January 2017 and adding more countries to the list, bringing the total number to 80. The e-visa program is applicable for a single entry and valid for a maximum of 30 days.

Read the complete article here. 

ASEAN briefing is produced by Dezan Shira & Associates

German investment in the ten member states of the Association of Southeast Asian Nations (ASEAN) has been increasing steadily and has the potential to grow further in the coming years. In the first part of this five-part article, we German investment in Brunei and Cambodia, and in the second part, we covered Indonesia and Laos. We next look at Malaysia and Myanmar.

Malaysia

Ranked 28 on the Market Potential Index 2018, Malaysia represents a fast-growing market with a huge potential for German products. The country is also ranked 15 on the World Bank’s Ease of Doing Business Index 2018. Known for its excellent track record in the areas of protection of minority investors and issuance of construction permits, Malaysia has remained an attractive investment destination within ASEAN for German companies, who have invested a total of US$ 481 million in the country in 2017.

Read the complete article here. 

ASEAN briefing is produced by Dezan Shira & Associates

For expatriate workers and their employers in Singapore, understanding the process to obtain a valid employment permit is vital. The Singapore government’s Ministry of Manpower (MoM) issues a wide range of work passes and permits to expatriates planning to work in Singapore. Each of these employment permits is designed for a specific purpose and differs across various categories of employees, based on their professional skills and monthly salaries.

Some of the most common employment permits issued by the government of Singapore are discussed below:

Employment Pass

The Employment Pass (EP) is issued to expatriates employed as foreign managers, executives, and skilled professionals in Singapore, for an initial period of 2 years; thereafter, the pass can be renewed for up to three years at a time. The EP is generally issued to individuals with a job offer that includes a minimum monthly salary of SG$3,600. More experienced candidates are required to be offered a higher salary to qualify for the same.

Read the complete article here.

An interview with Christian Tegethoff, Managing Director, CT Executive Search.

How has the demand for executive search in Iran developed since 2015?

After the conclusion of the nuclear agreement, the interest of European business in Iran was huge at first, and the euphoria was great. Numerous delegations led by ministers and mayors have subsequently set off to Tehran to explore opportunities for cooperation with the Iranian side.

Many European companies decided in 2016 to set up representative offices and distribution companies. Accordingly, in 2016 and 2017 in particular, we assisted a considerable number of companies with recruitment. The machinery and plant engineering sector was particularly active at the time, but also the pharmaceutical industry, the automotive and the consumer goods sectors.

Read the complete interview here. 

An interview with Dr. Helmut Gottlieb, member of the management team, Bank Melli Iran, Hamburg.

For what reasons have European banks so far refused to accompany non-sanctioned Iran business of their customers?

Already with the entry into force of the JCPOA agreement in January 2016, the majority of European commercial banks refused to settle Iran-related business. This was regularly justified by a business policy decision of the respective management. An objective justification was never cited.

This business policy has a lasting negative impact on trade between Iran and Europe. 90% of trade between Iran and Europe is from Europe to Iran. Only a tenth of the trade volume is imported from Iran to Europe.

Read the complete interview here. 

This study was done by africon

The Nigerian automotive industry appears to be an interesting market, as our research on the automotive parts market shows that the market size is worth USD 4.4bn or more.

The total vehicles in operation in Nigeria is currently estimated at 12.7 million, and Nigerian drivers spend an average of USD 350 on automotive parts per year.

Read the complete article here. 

An interview with Dagmar von Bohnstein, Managing Director, German - Iranian Chamber of Industry and Commerce (AHK)

What is the mood among German companies in Iran? What measures have companies taken to respond to the new situation resulting from the reinstatement of US sanctions?

As could be expected, the mood among German companies is not good. Many of them waited throughout last year to see if there would be any movements on the political level. After this had not happened by November 5, the second stage of US sanctions, most of them have reduced their Iran business to a minimum and withdrew the German executives.

At the same time, hardly any German company has completely given up its engagement in Iran. They are all waiting to intensify business as the political environment improves.

Read the complete interview here.