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

13

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.

14

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!