THAILAND

by Nurul

Country Background

• Terrain: Densely populated central plain; northeastern plateau; mountain range in the west; southern isthmus joins the land mass with Malaysia.
• Climate: Tropical monsoon.

Main Challenges

• The major challenge for Thailand is political stabilization. The supporters seek to resolve growing political and economic problems.

Major Opportunities

• Emphasis on 10 sectors which constitute 85% of Thai-land’s export value:
• food and rice,
• textiles, garments and jewellery
• electronics and electrical appliances
• construction materials
• plastic and plastic products
• automobiles and parts
• rubber products
• unique Thai products such as Thai “Hom Mali” rice, silk, orchids, spas and restaurants
• cosmetics and pharmaceutical product
• printing

Doing Business in Thailand

• Apply for permission to use company name
• Deposit paid-in capital in a bank
• Obtain a corporate seal
• Get approval for memorandum of association and apply to register the company as a legal entity (final registration) at the Private Limited Companies Registrar.
• Submit company work regulations to the Office of Labor Protection and Welfare of the Ministry of Labor at the district where the head office of the company is located

Using an agent/distributor

• Importer must obtain licenses for products such as foodstuffs, certain pharmaceuticals and chemicals. It is the responsibility of the local agent or distributors to apply necessary licenses.

Establishing an office

• Majority foreign corporation operating in Thailand do thorough private limited liability companies.

Selling to the government

• Successful bidding on Thai government contract and supply tenders is to have a reputable local representative with good access to the procuring agency and knowledge of specific requirement

Joint ventures/licensing

• Many Thai firm, actively seeking U.S, joint venture can bring technical, marketing and management skills to a business relationship.
• In return, Thai firm offers assets, valuable local vendor and government contract and establish business relationship throughout the region.

Distribution & sales channels

• wide range of teleport and satellite transponder services to Thai and international television stations
• Thaicom global beam allows the customers to re-broadcast their television programs up to 120 countries in four continents, Asia, Europe, Australia and Africa.

Electronic commerce

• social behavior and national culture, more specifically issues pertaining to trust and shopping behavior, were the major influences for the success of e-commerce in Thailand

Openness to foreign investment

• Thailand’s rules governing foreign business land leasing/ownership are mixed compared with other nations.  While it takes less time on average to lease private land in Thailand, ownership rights available to foreign businesses are weaker and it is somewhat more difficult to access land information.

Right to private ownership & establishment

• They may transfer shares of a foreign-invested company without prior government approval.
• However, the business law requires that all stake holders be listed in the articles of association and changes in the articles of association of a foreign company must be approved by DDFI-CPI.
  business customs
• This prefer to build relationships before conducting business. Therefore, it will be likely that several meetings will take place. Discussing business before establishing relations is impolite. Often, issues will need to be discussed repeatedly and at many levels before decisions are made.
• Body language is important in Thai communication and respect and politeness should always be shown. Sit nicely and do not lounge in the chair. Saying no directly is considered impolite and Thais generally will never do so. Being receptive to subtle body language and indirect replies will help to avoid confusion and misunderstandings.
• Appointments for meetings should be made well in advance. It is a good idea to confirm the details of the meeting the day before. Arriving on time shows respect, although Thais often have a more relaxed view of time than is common in the west. Information concerning the agenda, the companies represented and the persons in attendance should be sent in advance. This will help Thai members prepare accordingly by knowing the hierarchy of the group. To avoid confusion and misunderstandings, written material, including business cards, should be provided in Thai and English. Business cards are generally exchanged after the greetings. A business card should be offered with the right hand. Take time to read the card and make a polite comment about it.
• Business dress is conservative. Suits should be dark or mute coloured. If skirts are worn, they should be knee-length or longer. The shoulders should always be covered. Smart shoes, and socks without holes are essential in case the shoes are to be removed.

Local time, business hours, & holidays

• local time = minus 1hours from Malaysia
• business hours = 9.00 a.m-4.30 pm. Lunch is from midday to 1.00 p.m.
• holidays
• 1 January = New Year’s Day
• Full moon, 3^rd Thai lunar month (February)= Magha Puja
• 6 April = Chakri Memorial Day
• 13 April – 15 April=Songkran Festival
• 5 May = Coronation Day
• May, arbitrary date= Royal Ploughing Ceremony and Farmer’s Day
• Full moon, 6^th Thai lunar month (May)=Vesak
• Full moon, 8^th Thai lunar month (July)= Asalha Puja
• First waning moon, 8^th Thai lunar month (July)= Beginning of Vassa
• 12 August = HM the Queen’s Birthday
• 23 October = Chulalongkorn Day
• 5 December = HM the King’s Birthday
• 10 December= Constitution Day
• 31 December = New Year’s Eve

Fact facts

Population	67.0 million
Capital	Bangkok (population 9,668,854)
Area	Nakhon Pathom
Ethnic Group	Akha, Bru, Cham, Chinese,Chong,Hmong, Karen
Religious	Buddhist 93%-94%, Muslim 5%-6%, Christian 1%, Hindu, Brahmin, other.
Major Language	Thai (official language); English is the second language  of the elite; Malay and regional languages and dialects.
Monetary Unit (Currency)	Bath
Major Industries	tourism, textiles and garments, agricultural processing, beverages, tobacco, cement, light manufacturing such as jewelry and electric appliances, computers and parts, integrated circuits, furniture, plastics, automobiles and automotive parts; world’s second-largest tungsten producer and third-largest tin producer
Major Export	Machinery,Electrical machinery and equipment Vehicles ,Rubber ,Mineral fuel oil wax Plastics
Major Import	Mineral fuel oil wax,Electrical machinery and equipment Machinery,Precious stone and metals,Iron and steels,vehicles
GDP (Gross domestic product) – in USD	$317 billion
GDP per capita (in USD)	$4,716.

Source: 

http://www.state.gov/r/pa/ei/bgn/2814.htm