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French SMES need to assault Iran ?

With the lifting of sanctions, the business opportunities are developing at speed large V. Iran is not a paradise for all. The market is complex. Leaders who h

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French SMES need to assault Iran ?

With the lifting of sanctions, the business opportunities are developing at speed large V. Iran is not a paradise for all. The market is complex.

Leaders who have never set foot in the international, go your way. The Iran - 5% growth expected in 2016, is not a territory that opens easily to the primo-exporters. What are the 43 SMES, sorted on the pane, and already broken in to the business out of the borders, that the chamber of commerce and industry of Ile-de-France was taken in early June for a voyage of exploration in ancient Persia. On site, representatives of Business France and private consultants were waiting to put them in contact with potential business partners. Estelle Gillot-Jack, head of service, development of international markets in the ICC, we delivers its light on a country that, since the official lifting of the sanctions in January 2016, is irresistible to many entrepreneurs.

What are the promising sectors today in Iran?

In the energy, industry, mining and the iron and steel industry, equipment manufacturers and service providers can do business. In the telecom and ICTS, many projects are also possible : Iran is the largest market for telecoms in the Middle East, and the population, is educated, is fond of new technologies. The areas of the environment and urban services are watching closely also. The Iranians have serious problems of management of water and waste, and, more generally, issues of pollution to manage. On the health plan, providers of medical equipment may have a card to play, knowing that construction projects of hospitals are in progress. The market of cosmetics is a true eldorado, this is the second in the region after Saudi Arabia. The Iranian are, in particular, consume large amounts of makeup. The reputation and the image of the mark with France in this field is an asset, even if at the level of distribution networks, it can be a bit complicated. I could also mention the potential in the equipment for agro-food or the tourist facility. To summarize, the opportunities are everywhere.

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But the market remains difficult to access...

financial issues remain problematic. For the moment, the promise of lifting of sanctions is not reflected in the facts. The French firms have a lot of trouble finding a banking partner to accompany them. There are many small banks, in france, who do not have interests in the United States and that therefore, not having the fear of fines, are willing to invest. But they take a great deal of expense, which may not crop completely the margins of the company. It is important to be patient, the situation will eventually improve, without a doubt, even from one day to the next day. This is the time to position themselves, otherwise others will do it in our place. Nothing that in Europe, the Italians, the Germans, the Austrians, or the Swiss, are particularly pro-active.

what looks like the countries, today?

the managers of The SMES that we have accompanied them on the mission were amazed. The sanctions have impacted heavily on the iranian business, but they have still been able to show intelligence to find mounts legal to run their business and, therefore, the country. One is therefore confronted with an industrial country that has faced up to its basic needs. Tehran is a city of its own, the car park is not shame, the public services work properly. Things are pretty organized and structured.

Describe for us the contractors iranians ?

They are used to working with foreign partners. These are very good negotiators, salespeople historically known for. They are demanding, or impatient. With the French, they find that it is going too slowly. It is not uncommon for them to want you to sign "on the field". At this time, they are extremely in demand, thus scroll through a lot of the world. It is necessary to have this in mind and do follow-up work after each meeting.

is it possible to be investor 100% in this country ?

Yes, this is not like in China, we do not need to "sponsor". Iran is not approached like any other market : it is necessary to ask what is the best approach, a direct debit "light" to the creation of a structure with a local partner. To appeal to an international volunteer (VIE) will not necessarily be on the commercial results expected if the young graduate is not highly accompanied. But it is true in all countries. In regard to the formalities to be completed to gain a foothold, they are quite complex. Iran is ranked 118 for the ease of doing business rank in Doing Business of the World Bank. That is to say, if there is a margin of progression.

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Among the large black spots of the country, there are human rights and corruption. How have you addressed these issues with the SME that you have accompanied them there ?

We have not raised the subject of human rights. China was the first country to practice the death penalty. It does not mean that it is due to the fact of doing business with the Chinese. Everyone is able to make the distinction between politics and the individuals. The French contractors will build relationships with entrepreneurs iranians, not with the government. And then, the opening can bring the country to evolve. As regards corruption, we have been made aware of the risk that he has to enter in this game.

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