Guide to Doing Business
in Thailand
EU Business Avenues in South East Asia
Information Communication Technologies
21 March 2017 - Brussels
2
Presentation Agenda
1. Overview
2. Culture
• Business Meetings
• General Etiquette
• Body Language
3. Government Support
• Setting up in Thailand
• Incentives Offered by Thailand
Overview
4
Setting the Context
Ranked No.
46for ease of
doing
business
according to
World Bank
67.96 million
peopleEthnic Thai
Thai Chinese
Malay
Other
Multi-Cultural
Society
• Thai (Official)
• English
(Secondary)
• Burmese
• Others
Nati
on
al
La
ng
uag
es
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/th.html, http://www.doingbusiness.org/data/exploreeconomies/Thailand, http://www.boi.go.th, http://worldpopulationreview.com/countries/thailand-population/
FDI
€8.0 billionin 2016
Culture
6
Business Meetings (1/2)
It is advised to make an appointment a few
weeks in advance for a business meeting.
However, depending on circumstances,
meetings can also be arranged on short notice.
Punctuality is a sign of respect to your
business partner (especially for government
officials), and impactful for good first impression.
If you realise that you may be a little late, it is
best to call ahead to say so.
English is commonly used in
business, especially in large
companies in Bangkok. However,
depending on the situation, make
sure to use fairly simple and
non-idiomatic language and if
language is a problem, interpreters
might be used to facilitate the
meeting.
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Business Meetings (2/2)
In Thailand, it is important to build good
relationship first with your business
partner. Thais place great importance in
“liking” their business partners so it will
influence the negotiation process.
Informal conversations before or after
a meeting are common and should not
be neglected. Thais may ask personal
questions to help them understand your
place in the social hierarchy and to build
a relationship with you.
It is important to dress appropriately
for business meetings, commonly
expected to wear formal conservative
business suits.
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General Etiquette (1/3)
Shaking hands is common in
Thailand when greeting your
business partner. It should be
lightly pressured with eye contact.
First Meeting
NOTE: Use both hands if
possible when presenting and
receiving a business card.
Business cards are vital for the first
meeting and can be laid out in front of
you, in a horizontal or vertical manner.
or
Business cards should be treated as an extension of the
person. Examine the business card before placing it on the
table or in your business card case. Treat business cards
with respect. Although not required, a business card with a
Thai language version printed on one side is preferred.
Source: http://www.expatfocus.com/expatriate-thailand-business-culture, https://www.communicaid.com/country/thailand/, http://www.ediplomat.com/np/cultural_etiquette/ce_th.htm
Courtesy is very important to Thais. Thai
greetings often involve with a wai. To wai,
hands are raised with palms together, fingers
pointing upwards and with a bowed
head. Younger and lower-ranking people are
supposed to offer the ‘wai’ first to their senior
counterparts. A wai can mean “Hello”, “Thank
you,” “I’m sorry”, or “Good Bye”.
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General Etiquette (2/3)
The decision-making process in Thailand is done collectively
and up through the hierarchy
Rank and Hierarchy are important in Thailand
Also avoid opposing someone in public is a DON’T
for the same reasons above.
therefore greet the oldest or most
senior business partner first.
It may take more time than you may be used to
Avoid confrontation in meetings as Thais are very
non-aggressive and try to avert conflict. Criticism,
especially of colleagues, should be conducted in private
Source: http://www.expatfocus.com/expatriate-thailand-business-culture, https://www.communicaid.com/country/thailand/, http://www.ediplomat.com/np/cultural_etiquette/ce_th.htm
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General Etiquette (3/3)
Any negative comments about the country and King should be
avoided. You should make sure you treat all images of the royal
family with respect.
Source: https://www.justlanded.com/english/Thailand/Thailand-Guide/Business/Business-etiquette, http://www.ediplomat.com/np/cultural_etiquette/ce_th.htm
A smile is often used for many different emotions. It may be an
apology, a thank-you, a greeting, or to show embarrassment. Be
aware: A Thai's smiling assurance does not mean you will in
fact get what you want, when you want it. It simply reflects the
Thai appreciation of harmony and their "never mind" attitude.
Never touch the head of a Thai or pass an object over it; the
head is considered sacred in Thailand
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Body Language
Use your right hand
for all interactions.
Kindly apologies if
you use your left hand.
Never pointed with your index finger
when you want to beckon someone
Speak in a calm and friendly voice
Interruptions are not welcomed
Communication Etiquette
Expect to be asked personal questions, this is viewed as
showing a polite interest in your life
Thais address one another by first
names. These are preceded by Khun
(Mr., Mrs. Or Miss), unless they carry a
higher degree
Nicknames are common in Thailand
Source: https://www.justlanded.com/english/Thailand/Thailand-Guide/Business/Business-etiquette, http://www.ediplomat.com/np/cultural_etiquette/ce_th.htm
Government Support
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Setting Up in Thailand
Entering
http://www.thinkasiainvestthailand.com/web/en-doing-business-in-
thailand.php?id=2
Setting up a Business http://www.boi.go.th/index.php?page=setting_up
_a_business_01_forming_a_company
Hiringhttp://www.boi.go.th/index.php?page=labor_issues_
01_labor_regulations
Management and Financehttp://www.tilleke.com/sites/default/files/Lex%20Mundi%20Guide%20to
%20Doing%20Business%20-%20Thailand%20-%202016.pdf
Various government
agencies and official
websites provide
information and
documentation to guide
you through setting up a
business in Thailand.
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Incentives Offered by Thailand
Tax Incentives
• Exemption/reduction of import duties on
machinery (Sections 28/29)
• Reduction of import duties for raw or essential
materials (Section 30)
• Exemption of corporate income tax and juristic person
income tax. (Section 31 and 34)
• A 50% reduction of the corporate income tax (Section
35(1))
• Double deduction from the costs of transportation,
electricity and water supply (Section 35 (2))
• Additional 25 % deduction of the cost of installation or
construction of facilities (Section 35 (3))
• Exemption of import duty on raw or essential materials
imported for use in production for export (Section 36)
Non-Tax Incentives
• Permit for foreign nationals to enter the
Kingdom for the purpose of studying investment
opportunities. (Section 24)
• Permit to bring into the Kingdom skilled workers
and experts to work in investment promoted
activities (Section 25 and 26)
• Permit to own land. (Section 27)
• Permit to take out or remit money
abroad(Section 37)
Source: http://www.boi.go.th/index.php?page=incentive
In order to obtain investment promotion, the Board of Investment (BOI) applicant must follow the
conditions specified in the BOI promotion certificate in which the following incentives will be
granted:
THANK YOU!