Doing Business in Thailand

Expats doing business in Thailand will note that the state is eager to engage with foreign investors. While the Kingdom has never felt the influence of imperial power, it’s no stranger to external interaction. Aside from the government’s willingness to do business with outsiders, the friendly and welcoming attitude of Thai people makes for an inviting working environment for expats.

A variety of multinational and other major companies in Thailand continue to use Bangkok as a base for their regional operations. While the business culture at some of these companies will be familiar, the general work environment in Thailand is significantly different to what most Western expats are used to.

The expats who do make a success of their investments in the country often have a good understanding of the business culture in Thailand, in an environment that values seniority, relationships and local customs.

Fast facts

Business language

The official language of business in the country is Thai. English is widely understood and is used by many in corporate environments in Bangkok. Interpreters may, however, be needed in certain circumstances.

Business hours

Monday to Friday, 8am to 5pm or 9am to 6pm, with an hour for lunch.

Business dress

Conservative and formal. Dark suits are standard in professional environments; men wear a white shirt and a tie. Women can wear suits, dresses or modest blouses and skirts. Skirts and dresses should be knee-length, and shoulders should be covered.

Greeting

Westerners may be greeted by a handshake, but the traditional form of greeting in Thailand is the wai. In this greeting, the palms are pressed together at chest-to-forehead height, with the fingers extended upwards and accompanied by a slight bow. It is usually initiated by a person of lower status to a person of higher status as a form of respect.

Gifts

Not expected, but appropriate and well received. Small tokens for colleagues go a long way to building good relationships. Don’t open gifts in front of the giver unless invited to do so.

Gender equality

Women are equal in theory but remain under-represented in the business world.

Business culture in Thailand

Thai business culture tends to be more relaxed than other Asian economic powerhouses, such as China and Japan. The value system around doing business in Thailand, however, remains similar to these countries. Hierarchy, relationships and collective identity are integral to the Thai workplace.

Hierarchy

There are many strict, unwritten rules that define the way that Thai businesses are organised. Senior managers play an almost paternal role – issuing orders, demanding consultation on all decisions and expecting obedience. Expats from Western backgrounds often struggle to adapt to this management style and can be frustrated at the lack of initiative taken and expected of them.

Age and appearance are especially important and usually directly indicate social status and a person’s position in the business world. Older individuals, in particular, are given great respect and typically hold top-level jobs. Senior foreign businessmen, especially the well-dressed, are afforded a good deal of respect based on this belief alone, regardless of merit. In line with this, promotions in Thailand are frequently based on a candidate’s length of service more than productivity and excellence.

Relationships

Relationships are another essential part of working in Thailand. Connections are highly valued, and the early stages of most business dealings are centred on building a relationship. It is considered impolite to start negotiating before being formally acquainted.

Preserving and sustaining relationships significantly affects communication in the Thai working world. Locals will be subtle and indirect to help another person ‘save face’ and keep their reputation intact, going as far as withholding information or failing to point out a mistake.

Dos and don’ts of business in Thailand

• Don’t show any form of disrespect to Thai royalty. This includes not making any jokes about them.
• Do say yes to invitations to social engagements. Building relationships is critical in Thai business culture.
• Do have high-quality business cards printed for exchange. Always offer a card to the most senior member of a party first, and always give and accept cards with the right hand. Keep in mind that exchanges are initiated by the host.
• Do return a wai. While foreigners aren’t expected to initiate, it is rude not to return the gesture.