Expanding to the USA from ASEAN: Complete Guide

Expanding from ASEAN member countries (Singapore, Thailand, Malaysia, Indonesia, the Philippines, Vietnam, Brunei, Cambodia, Laos, and Myanmar) to the US market presents unique opportunities and challenges beyond shared democratic values and innovation-focused economies. The Association of Southeast Asian Nations (ASEAN) represents ten separate sovereign countries that created this organization to improve economic, social, educational, and cultural opportunities across Southeast Asia. While each member nation maintains its individual sovereignty, distinct legal systems, and unique business environments, companies from these countries often face similar challenges when expanding to markets like the United States.

This guide provides comprehensive insights into the key differences that businesses from ASEAN member countries must navigate for successful US expansion, drawing on our extensive experience helping Southeast Asian companies establish successful American operations.

Critical Differences:

Market Scale and Fragmentation: The US operates as 50 distinct markets under a federal system, with significant state-by-state variations in regulations and business environments. While businesses in ASEAN member states are accustomed to navigating 10 separate national markets with particular regulations, languages, and business cultures totaling approximately 677 million people, the US represents a different challenge with 335 million across interconnected but locally distinct state markets.

Legal Framework Diversity: The US business structure requires careful consideration between a C-Corporation and an LLC, with state-specific regulations adding complexity. This differs significantly from the various legal systems across ASEAN countries, from Singapore’s efficient standard law system to Vietnam’s civil law framework, Indonesia’s hybrid approach, Thailand’s civil code system, and the Philippines’ mixed legal system influenced by Spanish and American legal traditions.

Employment Cost Structure: US employers face additional employment costs (25-40% above base salary) focused primarily on private healthcare, while ASEAN employer contribution systems vary widely by country – Singapore’s Central Provident Fund (15-20%), Malaysia’s Employees Provident Fund (12-13%), Thailand’s Social Security Fund (3-7%), Indonesia’s BPJS (10-15%), the Philippines’ SSS and PhilHealth (17-18%), and Vietnam’s social insurance (21.5%). These ASEAN systems typically fund a mix of public and private healthcare, retirement, and social security programs.

Banking and Tax Systems: The US uses a complex multi-jurisdictional sales tax system across states and localities, contrasting with the standardized national VAT/GST systems implemented across most ASEAN countries (Singapore: 9%, Malaysia: 6%, Thailand: 7%, Indonesia: 11%, Philippines: 12%, Vietnam: 10%). US banking operations also typically require more documentation and in-person verification compared to the increasingly digital banking systems in Singapore, Malaysia, and Thailand.

Major Challenges:

Immigration Complexity: Immigration requirements present significant challenges for ASEAN businesses, with E-1/E-2 Treaty Trader/Investor visa eligibility varying dramatically across ASEAN countries. Only Thailand, Philippines, Singapore, and Brunei have E-1/E-2 treaty relationships with the US, while Malaysia, Indonesia, Vietnam, Cambodia, Laos, and Myanmar nationals face more restricted visa options. This creates strategic challenges in selecting which key personnel can relocate to the US, particularly compared to the relative ease of intra-ASEAN movement for business purposes under frameworks like the ASEAN Comprehensive Investment Agreement.

Salary Adaptation: US salary structures differ significantly from ASEAN compensation models. While Singapore-based positions often have competitive base pay (though still 10-20% below comparable US roles), other ASEAN countries face much larger compensation gaps – with technical roles in Vietnam, Indonesia, the Philippines, or Thailand often commanding only 20-40% of their US equivalents. This creates significant budgeting challenges for ASEAN businesses establishing US teams, especially in high-cost markets like San Francisco or New York, where local talent expectations may be 5-8 times higher than in some ASEAN home markets.

Cultural Bridging: ASEAN businesses must adapt to distinctly different American communication and business practices. The high-context, relationship-focused, and hierarchical business cultures common in much of ASEAN (particularly Thailand, Malaysia, Indonesia, and the Philippines) contrast with America’s more explicit, transaction-oriented approach. Even Singapore’s more direct communication style differs from typical American business interactions, which tend to balance directness with positive framing and relationship management. These differences impact everything from negotiation tactics to meeting structure and feedback approaches.

Multi-Jurisdictional Compliance: Managing US multi-state regulations presents challenges that differ from the familiar ASEAN regulatory landscape. While ASEAN businesses navigate 10 separate national regulatory frameworks, US operations require compliance with interrelated federal, state, and local regulations that vary by jurisdiction. This contrasts sharply with Singapore’s unified regulatory environment, Thailand’s centralized regulatory approach, Malaysia’s federal system, Indonesia’s regional autonomy structure, and other ASEAN regulatory frameworks that typically maintain clearer national standards within each country.

Understanding Market Scale and Structure: An ASEAN vs US Comparison

The substantial scale difference between individual ASEAN member countries and the US market creates fundamental business strategy implications. While the ten ASEAN member countries collectively encompass approximately 677 million people across separate sovereign nations, each with their own regulatory frameworks, a business operating in any single ASEAN country typically functions under just that country’s regulations. In contrast, the US market, with 335 million people, functions as 50 distinct states under a federal umbrella, where businesses often must comply with multiple state jurisdictions simultaneously. This fundamental difference impacts everything from your market entry strategy to your operational costs and compliance requirements.

To put this in perspective, California’s economy reached approximately $4.1 trillion in 2024, which is substantial but still less than the ASEAN region’s combined GDP of roughly $4.2 trillion. However, the US economy ($29.1 trillion) is more than seven times larger than the ASEAN economic bloc. The US market’s fragmentation means that success in one region doesn’t automatically translate to another—the business environment in New York differs drastically from Texas, which, in turn, operates differently from California.

“The market structure difference requires ASEAN businesses to completely rethink their go-to-market approach,” notes Joanne Farquharson, President and CEO of Foothold America. “What works for a regional ASEAN strategy focused on multiple countries with a cooperative orientation often needs to be reimagined as a regional approach within the US, focusing on specific states or regions with their own local preferences.”

ASEAN & US Key Market Indicators (2025)

This stark contrast in scale and diversity requires a fundamentally different approach to market entry. While ASEAN businesses can typically launch products across multiple countries in their home region with adaptations for each national market, the US market often requires regional approaches within a single country, multiple distribution channels, and adaptation to various local preferences and regulations.

At Foothold America, we help ASEAN businesses develop targeted entry strategies for the US market. We identify the most appropriate regions, channels, and approaches based on your industry, product, and business objectives. Our deep understanding of both market landscapes enables us to provide practical guidance that maximizes your chances of success while minimizing costly missteps.

Legal Structure and Compliance

When expanding from ASEAN to the US market, choosing the proper legal structure is one of your most crucial decisions. Most ASEAN businesses opt for a C-Corporation, with registration in Delaware being particularly popular among companies of all sizes. Delaware’s popularity stems from its well-established business law framework, specialized business court system (the Court of Chancery), and strong privacy protections. However, some companies choose to incorporate in states where they’ll have significant operations, such as California for tech companies or New York for financial services.

The complexity of US expansion can be overwhelming for ASEAN businesses accustomed to their home countries’ regulatory environments. Each ASEAN country has a distinctly different legal framework:

• Singapore offers a highly efficient standard law system with streamlined business registration through ACRA (Accounting and Corporate Regulatory Authority), typically completed in hours.
• Malaysia operates under a standard law system with moderate regulatory requirements through the Companies Commission of Malaysia (SSM).
• Thailand implements a civil law code with business registration through the Department of Business Development, usually requiring multiple agency approvals.
• Vietnam follows a civil law system where business establishment through the Department of Planning and Investment involves multiple government touchpoints.
• Indonesia employs a hybrid legal system combining civil, common, and customary law elements, with business registration through the Online Single Submission (OSS) system.
• The Philippines operates under a mixed legal system with Spanish and American influences, with business registration managed through multiple agencies, including the SEC and the Department of Trade.

The US system presents a stark contrast, with multiple layers of federal, state, and local laws that can vary dramatically by location and industry.

While Delaware incorporation offers many advantages, the best choice for your business will depend on various factors, including your industry, target market, and growth strategy. US expansion experts can connect you with qualified legal and tax professionals with expertise in the US and ASEAN markets.

Comparative Regulatory Structures: ASEAN vs. US

At Foothold America, we’ve helped numerous ASEAN businesses successfully navigate these differences, establishing compliant and efficient legal structures that align with their specific needs and objectives. Our understanding of both ASEAN and US regulatory environments positions us uniquely to guide you through this complex landscape.

Immigration and Visa Requirements: Navigating Your Team’s Path to the US Market

For ASEAN businesses expanding to the United States, understanding the available immigration options is crucial for a successful market entry. While business travel between ASEAN countries and the US is generally straightforward under the Visa Waiver Program for short visits (applicable to Singapore and Brunei, while requiring standard visitor visas for other ASEAN countries), establishing a permanent business presence in the US requires careful navigation of the US immigration system.

ASEAN-US Treaty Status Variations

An important consideration for ASEAN businesses is that immigration options can vary significantly based on your specific country of origin due to different treaty relationships with the United States.

This variation means that businesses from Thailand, the Philippines, Singapore, and Brunei have greater flexibility in visa options than their counterparts from other ASEAN countries, particularly for investment-based expansion.

Key Visa Options for ASEAN Businesses

E-1 Treaty Trader Visa: The E-1 visa is available to nationals of countries that maintain a treaty of commerce and navigation with the US (in ASEAN, this includes Thailand, the Philippines, Singapore, and Brunei). To qualify, your company must engage in substantial trade with the US, with over 50% of the trade volume between the US and your ASEAN country. This visa allows executives, managers, and essential employees to work in the US for renewable two-year periods. Processing typically takes 3-6 months, with government fees ranging from $460-$1,650. When factoring in attorney fees ($3,000-$7,000), total costs typically range from $3,500-$8,500 per application.

E-2 Treaty Investor Visa: The E-2 visa is available to nationals from Thailand, the Philippines, and Singapore making substantial investments in US operations. While there’s no statutory minimum investment amount, it must be significant enough to ensure the successful operation of the enterprise. This visa offers renewable two-year periods and provides work authorization for spouses. Like the E-1, processing typically takes 3-6 months, with similar cost structures including both government fees and attorney costs ($3,500-$8,500 total).

L-1 Intracompany Transferee Visa: The L-1 visa category is particularly valuable for established ASEAN companies transferring executives, managers, or employees with specialized knowledge to a US affiliate, subsidiary, or parent company. This visa requires the employee to work with your ASEAN company for at least one year within the previous three years. The visa is initially granted for 3 years and can be extended up to 7 years for managers/executives or 5 years for specialized knowledge employees. Processing typically takes 3-6 months, though premium processing can expedite this to 15 calendar days for an additional fee. Total costs range from $5,000 to $11,000, including attorney fees. The L-1 visa offers a potential pathway to permanent residence, making it attractive for key personnel in your long-term US expansion plans.

H-1B Specialty Occupation Visa: While more complex and subject to annual caps, the H-1B visa program can be valuable for accessing specialized talent, particularly in technical fields. This visa requires a bachelor’s degree or equivalent and participation in an annual lottery system with a limited filing window in March for October start dates. H-1B visas are granted for 3 years initially and can be extended for up to 6 years total. The program’s dual intent provision, allowing for permanent residence applications, makes it attractive for long-term talent acquisition strategies despite its complexities.

Key Visa Comparison Table

*Fees may vary based on employer size and other factors. **H-1B spouse work authorization depends on specific circumstances.

Foothold America works with a network of experienced immigration attorneys and visa specialists nationwide to ensure our ASEAN clients receive expert guidance throughout the visa application process. Our partners provide specialized knowledge of various visa categories and stay current with the latest immigration policy changes, helping our clients navigate the complex US immigration system efficiently and successfully.

Cost Structures and Financial Planning

Employment Costs: ASEAN vs. US Comparison

The US employment cost structure differs fundamentally from ASEAN systems, requiring careful budgeting when planning your expansion. While both regions have employer contributions beyond base salary, their approaches vary dramatically. ASEAN countries have developed distinct national systems: Singapore’s Central Provident Fund (CPF) requires about 17% employer contribution for retirement, healthcare, and housing; Malaysia operates the Employees Provident Fund (EPF) with 12-13% contributions alongside SOCSO at 1.75%; Thailand requires 3-5% social security plus workers’s compensation of 0.2-1%; Indonesia’s BPJS system requires 7-10% for healthcare and retirement; Philippines mandates about 13% across SSS, PhilHealth, and housing funds; while Vietnam has the highest statutory contributions at approximately 21.5% total.

In contrast, US employers typically face additional employment costs of 25-40% above base salary but structured differently. The US system centers on mandatory Social Security (6.2% up to $168,600) and Medicare (1.45% uncapped) contributions, with private healthcare insurance being the most significant expense at $12,000-25,000 annually per employee. US employers typically offer voluntary retirement plans like 401(k)s with optional matching, and face fewer federally mandated benefits than ASEAN social systems. This shift from government-administered programs to privately managed benefits creates challenges and opportunities—ASEAN businesses must adapt to managing healthcare plans and retirement options directly while gaining flexibility in designing competitive compensation packages. Additionally, US employment costs vary significantly by region, unlike the nationally standardized systems in most ASEAN countries, requiring location-specific strategies when establishing American operations.

“The biggest adjustment for our ASEAN clients isn’t just the cost structure, but the fundamentally different approach to benefits administration,” explains Joanne Farquharson, President and CEO of Foothold America. “Instead of participating in centralized government-administered systems like Singapore’s CPF or Malaysia’s EPF, US employers must design, negotiate, and manage private benefits packages with multiple providers. This creates both complexity and opportunity for ASEAN businesses establishing US operations.”

Comparative Employment Costs: ASEAN vs US (2025)

*Percentages are approximate and vary based on salary levels, industry, and specific benefits offered.

These structural differences create both challenges and opportunities for ASEAN businesses expanding to the US:

Healthcare System Navigation: The shift from government-backed healthcare systems like Singapore’s MediShield, Thailand’s Universal Coverage Scheme, Indonesia’s BPJS Kesehatan, the Philippines’ PhilHealth, or Vietnam’s social health insurance to employer-sponsored private insurance represents perhaps the most significant adjustment. While this creates additional direct costs and administrative complexity, it also offers the opportunity to design competitive benefits packages tailored to your industry and employee needs.

Benefit Design Flexibility: The US system provides greater flexibility in designing compensation packages than the standardized statutory systems in most ASEAN countries, allowing ASEAN employers to differentiate themselves through benefits that align with their company values.

Administrative Infrastructure: Managing US benefits typically requires more administrative resources and specialized expertise than many ASEAN systems, often necessitating partnerships with Professional Employer Organizations (PEOs) or benefits administration platforms during initial US market entry.

Regional Cost Variation: Unlike the nationally standardized systems in ASEAN countries, US employment costs can vary significantly by state and locality, requiring careful consideration of location strategy and regional cost differences when planning US expansion.

At Foothold America, we help ASEAN businesses develop cost-effective employment strategies that balance competitiveness with financial sustainability. We leverage our deep understanding of ASEAN and US employment practices.

Employment Law Framework: Navigating a Different Legal Landscape

Understanding US employment law represents one of the biggest adjustments for ASEAN businesses expanding to America, as the frameworks differ fundamentally in both approach and specifics. While ASEAN countries operate with varied worker protections and statutory requirements (from Singapore’s relatively flexible employment system to Thailand and Indonesia’s more employee-protective frameworks), the US system offers more employer flexibility with fewer federal mandates.

The At-Will Employment Doctrine

Perhaps the most striking difference is the US concept of “at-will employment,” which means the employer or employee can terminate the employment relationship at any time, with or without cause or notice. This contrasts sharply with ASEAN employment models, which typically feature varying levels of protection against termination, notice periods (normally 1-4 weeks in Singapore to 30 days or more in other ASEAN countries), and specific requirements for valid termination reasons.

While this gives US employers significant flexibility, the reality requires careful navigation. Employers must still comply with federal and state anti-discrimination laws, and many states have created exceptions to at-will employment through implied contracts or public policy considerations. Additionally, termination practices can significantly impact company culture and reputation in ways that may be particularly challenging for ASEAN businesses accustomed to different employment norms. ASEAN businesses must adapt to these fundamental differences while maintaining their corporate values and culture. This often involves creating policies that bridge the gap between ASEAN employment philosophy and US legal requirements.

At Foothold America, we help ASEAN companies successfully navigate these differences, developing employment frameworks that maintain their core values while ensuring full compliance with US requirements. Our experience with numerous ASEAN businesses entering the US market provides valuable insights into effectively balancing these competing considerations.

Understanding US Salary Practices: A New Compensation Landscape

Moving from ASEAN to the US compensation structures requires more than simple currency conversion. Dramatic regional variations characterize the US salary landscape, and compensation structures differ fundamentally from those familiar in most ASEAN countries (with the possible exception of Singapore, which has some similarities to US compensation approaches).

Regional Compensation Variations

The US market presents regional salary variations that exceed anything typically encountered across ASEAN countries. While salary differences between capital cities and other regions in ASEAN usually range from 10-30%, US regional variations can reach 50-100% for identical roles. Cities like San Francisco, New York, and Seattle command significant premiums over mid-sized markets, while differences in state tax structures further impact take-home pay.

“The regional salary variations in the US often shock our ASEAN clients,” notes Angelique Soulet-Bangurah, PHR, Head of EOR Services & Talent Acquisition Lead at Foothold America. “A software developer role might command $180,000 in San Francisco but only $90,000 in a smaller market like Nashville or Salt Lake City. This requires completely different compensation strategies depending on where you establish your operations.”

Major Market Tiers

Tier 1 Markets (40-75% above national average)

The highest-paying markets in the US demonstrate a clear connection to specific industry concentrations and venture capital presence. The San Francisco Bay Area leads with tech salaries soaring 70-75% above national medians, driven by a dense concentration of tech giants and startups. New York City follows with salaries 60-70% above national averages, powered by its unique combination of financial services, media, and growing tech presence. With its robust biotech and education ecosystem, Boston commands salaries 50-65% above national medians, particularly in life sciences roles. Seattle rounds out this tier with tech compensation 45-60% above national averages, supported by significant tech employers and the aerospace industry.

Tier 2 Markets (15-35% above national average)

Second-tier markets offer an attractive balance of substantial compensation and moderately high living costs. Washington DC anchors this group with government and defense sector salaries 25-30% above national medians. Despite its high-profile, Los Angeles fits this tier with entertainment and media technology salaries averaging 20-30% above national figures. Austin has emerged as a compelling tech hub, offering salaries 15-25% above national averages while benefiting from Texas’s lack of state income tax. Denver’s growing tech presence maintains similar premiums, while Chicago’s diverse economy spanning finance, consulting, and traditional industries keeps it firmly in this tier.

Tier 3 Markets (At or near the national average)

These markets often provide the best salary-to-cost-of-living ratio. Atlanta and Dallas have cultivated growing tech scenes while maintaining lower costs, resulting in strong purchasing power despite slightly lower nominal salaries. Minneapolis and Philadelphia, anchored by traditional industries, hover near national averages. Nashville stands out for its rapidly growing business hub status, and while wages run 10-20% below the national median, significantly lower living costs create compelling total compensation packages.

Salary Structure Differences

ASEAN compensation typically features higher base salaries with limited variable components (except Singapore, which has more substantial variable components similar to the US). In contrast, US compensation often includes more significant variable elements such as bonuses, commissions, and equity. This difference is particularly pronounced in sales, executive, and technical roles.

For example, a sales position in Thailand or Indonesia might offer 85-90% of total compensation in base salary with a 10-15% bonus opportunity, while a comparable US role might structure compensation as 50-70% base salary with 30-50% in commission or performance bonuses. Similarly, technical roles in the US frequently include equity compensation, especially in startup and growth-stage companies, creating additional compensation upside not typically available in most ASEAN markets.

Comparative Salary Ranges (2025)

Banking and Financial Operations: Adapting to American Financial Systems

Establishing US banking operations presents unique challenges for ASEAN businesses, particularly given the contrast between the increasingly digital financial systems in countries like Singapore and the more traditional, documentation-heavy US approach.

Key Differences in Banking Systems

ASEAN businesses must adapt to several specific challenges when establishing US banking operations.

Documentation Requirements: US banks require extensive documentation for business accounts, including entity formation documents, EIN verification, and physical identification verification for signatories.

Physical Presence: While many ASEAN banks (especially in Singapore) offer comprehensive digital onboarding, many US banks require in-person meetings to establish business banking relationships.

Payment Systems: ASEAN businesses must adapt to US-specific payment systems such as ACH transfers (replacing the instant transfers available in advanced ASEAN markets like Singapore) and potential checks for certain business transactions.

International Transfers: Managing transfers between ASEAN parent companies and US operations involves higher fees, longer processing times, and more complex compliance requirements than many ASEAN companies expect.

Sales Tax vs. GST/VAT: A Fundamental Shift

The transition from the GST/VAT systems used in most ASEAN countries (Singapore’s 9% GST, Malaysia’s 6% Sales and Service Tax, Thailand’s 7% VAT, Indonesia’s 11% VAT, Philippines’ 12% VAT, and Vietnam’s 10% VAT) to the US sales tax framework represents another significant adjustment. Unlike the relatively consistent GST/VAT rates within each ASEAN country (with varying exemptions), the US sales tax operates as a complex web of state, county, and city-level taxes, each with its rates, rules, and filing requirements.

Key differences include:

Jurisdictional Complexity: While ASEAN businesses deal with a single national tax authority for GST/VAT, US sales tax may involve dozens of different tax jurisdictions depending on where you have economic nexus.

Point of Taxation: GST/VAT in ASEAN countries is collected at multiple stages with input tax credits, while US sales tax is generally applied only at the final consumer purchase.

Rate Variations: US sales tax rates vary dramatically by location, from 0% in some states to nearly 10% in others, with additional local taxes potentially adding 1-5%.

Economic Nexus: Following the 2018 South Dakota v. Wayfair Supreme Court decision, companies may have sales tax obligations in states where they have economic activity even without physical presence.

ASEAN businesses must implement systems to track sales by jurisdiction, determine appropriate tax treatment for each transaction, and manage potentially dozens of different tax filings and payments. This complexity often requires specialized software and expert guidance. It’s important to note that not all tax firms have expertise in multi-state sales tax compliance, making specialized knowledge crucial when selecting advisors.

At Foothold America, we help ASEAN businesses navigate these financial complexities, connecting you with appropriate banking partners and tax specialists who understand the unique challenges of US expansion from the ASEAN markets.

Cultural Differences in Business Practices

The cultural differences between ASEAN and US business practices extend beyond surface impressions to fundamental approaches in communication, decision-making, and workplace dynamics. Understanding these nuances is crucial for building successful relationships in the American market.

Communication Styles and Business Language

ASEAN business cultures encompass a wide spectrum of communication styles, from Singapore’s efficiency-driven directness to the more relationship-focused and contextual approaches common in Thailand, Indonesia, Malaysia, and other Southeast Asian countries. This contrasts with American communication that often emphasizes positivity and explicit, detailed explanations. Here’s a comparison of common business phrases:

ASEAN businesspeople often find American communication more direct, promotional, and positive than they’re accustomed to, while Americans may interpret the nuanced, relationship-focused communication of many ASEAN cultures as unclear or hesitant. Understanding these differences is essential for successful cross-cultural business interactions.

Business Relationship Development

Building business relationships follows different patterns in ASEAN countries versus the United States:

Conclusion: Crafting Your ASEAN-American Success Story

Expanding from ASEAN to the US market offers significant opportunities but requires navigating complex challenges through careful planning and understanding fundamental differences in scale, structure, and culture. While ASEAN businesses bring valuable strengths to the American market, including quality, innovation, and global perspective, success demands adaptation to US business practices.

The most effective approach combines thorough preparation with guidance from professionals experienced in both environments. Foothold America has helped numerous ASEAN businesses navigate the complexities of US expansion, from market entry to ongoing operations. Successful ASEAN companies maintain their core values while adjusting execution to meet American expectations, transforming their distinctive qualities into competitive advantages. Contact Foothold America to build a sustainable foundation for your business’s success in the American market.