Doing Business in Thailand

Exchange Controls

Foreign exchange controls have been relaxed over the past few years and commercial banks are now able to undertake most transactions without prior approval from the Bank of Thailand (BoT). Importers can freely purchase foreign exchange or draw foreign exchange from their accounts to pay for imports. Letters of credit may also be freely opened without authorisation from the BoT.

Existing exchange controls cover capital outflows in the form of portfolio investment and investment in overseas real estate by Thais.

There are no restrictions on the remittance of foreign exchange in payment for imported goods. The central bank however has to be notified of payment remittances exceeding $20,000. Both importers and exporters must obtain a Thor Tor 2 form from the central bank in order to clear goods worth more than Baht500,000 through customs.

Do's and Don'ts Of Doing Business in Thailand

Understanding the Importance of Buddhism

Religious artifacts in general and Buddha statues in particular are sacred. The most important part of the Buddha statue is the head and touching it should be avoided. Any mistreatment or disrespectful handling of a Buddha statue is considered desecration which results in severe criminal penalties.

Respect for Royalty

In Thailand, the King and other members of the Royal Family are very much revered and jokes about royalty are absolutely not tolerated.

Posture

The feet are considered as the lowliest part of the body and when seated, you should ensure that the soles of your feet should never be pointed toward anyone (you should pay particular attention to this point if you are in the presence of a monk or a Buddha image).

Smile...Be Patient (You're in the Land of a Thousand Smiles)

Thais often smile because smiling is equated with patience and the Thais greatly admire those who are patient. Violence, conflict and confrontation are avoided by Thais. Remember that losing your composure is losing face and losing respect in Thailand. Do not be surprised to encounter situations where an obvious injustice or abuse is tolerated with an outwardly submissive attitude all for the sake of not losing face.

Sanuk-sabai

"Sanuk" means to enjoy or to have fun and "sabai" means to be comfortable or easy going. Thais are basically pleasure-loving people and most activities are geared toward being enjoyable whether it be work or play.

Language

Thai is generally spoken but in business circles, English is also used. However, the Thais will appreciate any effort by a foreigner to learn at least some everyday expressions. Essential phrases include "Sawadee" (Hello) and kob kun (thank you).

Names & Titles>

Thai names consist of a given (first) name and a family (last) name. Khun is the Thai non-gender term equivalent to Mr., Mrs., Ms., or Miss. When introduced to a Thai, Khun is placed before the first name and it is then appropriate to refer to the person as Khun (first name only).


Some Useful Sources of Information

Markets and Sectors
http://tradeport.org/ts/countries/thailand/sectors.html

Market Access
http://www.tradeport.org/ts/countries/thailand/market.html

Other Sources of information

Thailand Trade Resources: Resource about business, travel & leisure
related information
http://www.thaiindex.com/business/businesa.htm

The Trading Guide and Catalogue for Thailand
http://www.thaitrading.com/

Trade On Line: Links and information on business in Thailand
http://www.sino.net/index.html

Worldwalker: Business and travel information
http://www.worldwalker.com