Business traditions of Thailand

If you are considering expanding your business in Thailand, setting up a joint venture, or holding important business meetings in the country, it is important that you understand the Kingdom's business culture.

Building Business Relationships

In general, Thai culture is much more relaxed than in other countries. To build successful business relationships in Thailand, you need to be open and honest.

It is important to note that when doing business in Thailand, initial meetings are often focused on establishing rapport. Ultimately, Thais prefer to build relationships before doing business. Your first meetings may involve more dining and entertainment than talking about business. Be personable, talk about things that interest your Thai business partners, and show a genuine interest in their lives.

Greetings

The typical greeting in Thailand is a “wai”. This involves raising your hands as if in prayer and slowly bowing your head. This respectful Thai greeting will let your business partner know that you understand and respect their culture. It is generally expected that a junior person will be the first to initiate a greeting, with the depth of the bow corresponding to the level of respect shown to the person. Wai gestures are offered to a person of equal or higher status, while subordinates should wai first. Thai businessmen respect foreigners who try to follow tradition. Foreign business partners may not initiate the wai, but it is an insult not to return it. If a wai is not offered, it is customary to shake hands with men and nod with women.

Ethnic Thais have two names. The first is the name given at birth, followed by the family name. The names in Thailand given to Thais at birth are unique because each name has its own meaning. It is sometimes very difficult for an uninformed person to determine which name is female and which is male. In Thai corporations, people often address each other by their first name and title. While family names are used for very formal occasions and written communication.

When addressing a Thai, you should start with the words "Mr." or "Mrs.", and then call them by their birth name (first name). There is also a short form of address: instead of "Mr.", you can use the word Khun.

Introduce people in order of seniority. For example, a secretary should be introduced before a boss.

Language

Thailand has never been a colony, like many other Asian countries, so English is not a natural language for Thais. The Thai alphabet is unique and is used only in Thailand, so when a Thai has to learn English, he will also have to learn a new alphabet. Finally, compulsory English teaching in schools can be quite insufficient. These are two main reasons why it is more difficult for Thais to learn English than, for example, people from Hong Kong, Malaysia, Singapore and the Philippines.

For business people in Thailand, it will be an advantage to know some Thai, because many receptionists, taxi drivers, etc. do not speak English. In addition, it is a great respect for Thais when a “farang” (foreigner) tries to speak their language.

Business Cards

A business card is more than just a piece of paper with information printed on it. It is the “face” of a person and a representation of your status. A high-quality business card is an important asset in Thailand. Usually, business cards have Thai on one side and English on the other.

Business cards usually contain information about the name, position, company details, address, home page, email, etc. Titles such as “Dr.” or "PhD".

To show respect for the person giving you a business card, the proper way to receive it is as follows:

• Always give and receive a card with your right hand or both, as the left hand is considered dirty.
• Look at the card to show respect for the giver's importance, and try to pronounce his name.
• Keep the card in a suitable place, preferably in a card holder.

Business Meetings

It is common practice to schedule meetings in advance. When scheduling a meeting, it is best to give advance notice and confirm the meeting the day before. Both parties should arrive on time to ensure mutual respect.

Before any business meeting, Thais conduct thorough preparation. All participants receive a full scenario of the upcoming event, with a list of all participants, their status and authority. Thais will expect the same information from you (about the company, the composition of the participants, your position on the key issues of the meeting). You should be patient, since Thais will need more time to familiarize themselves with the information received and draw conclusions than Europeans. All materials about the event that you provide to Thais for further work should be in both Thai and English.

As soon as you find yourself in the room where the business meeting will take place, you should stand until you are shown your place, in accordance with a strict hierarchy and your position in the company.

Both private companies and government agencies usually have a very hierarchical structure. Only the most basic information and decision-making authority is reserved for senior management, meaning that those making informed decisions are very busy.

Choosing a suitable venue for a meeting is an important aspect of making a good first impression. Initial meetings should take place over lunch or dinner, and entertaining guests should be part of developing the business relationship. A professional and comfortable venue will be more than suitable.

Negotiations

Once the first meeting has been arranged, important decisions will likely be made at subsequent meetings. In Thailand, it is common for there to be lengthy discussions within the hierarchy before a final decision is made. Subsequently, it may take several meetings to finalize a business deal. Maintaining dignity and not appearing aggressive are important when doing business in Thailand. It is considered inappropriate to show anger during discussions, and this can lead to a deal being lost.

In business meetings, it is extremely important to be polite and respectful when delivering a speech or presentation. Thais place a high value on politeness, so it is essential to speak clearly and professionally, while smiling warmly when addressing your audience. This will help you build a positive reputation with your business partners and ultimately communicate effectively. When listening, it is best not to interrupt the speaker to ask questions, as this may be seen as an insult. Respectful, calm and patient behavior will have a positive impact on how you are perceived. Finally, sensitive or difficult conversations are usually initiated by employees with a higher level of authority. Thais do not prefer direct communication and are unlikely to outright say “no” to proposals. They tend to give vague answers in order to remain polite, and expect foreigners to be equally considerate, especially when they respond negatively.

Moments of silence are common, as answers are carefully considered and foreigners should not rush into responding.

Dress Code

When doing business in Thailand, it is important to dress conservatively. Appearance is very important to Thais, and men are expected to wear dark suits, white shirts and a tie. Women should wear simple dresses or suits, and skirts should be knee length or longer. Shoulders should always be covered. Women should avoid wearing bright red. An important consideration when doing business in Thailand is to avoid wearing black. Thais only wear black at funerals.

When it gets too hot, businessmen will often take off their jackets and drape them over their shoulders - this is acceptable and not considered too casual.

For some social events, the dress code may be "smart casual". For this, men should wear long trousers and a long-sleeved or short-sleeved shirt. For women, dress may be less formal than what is worn for meetings.

General Etiquette

In Thai society, it is extremely important to always show respect to the king, the country, and Buddha. Any image of Buddha should always be treated with the utmost respect. When visiting temples or visiting Thai partners, it is customary to remove shoes. This should be strictly adhered to, otherwise it may cause offense.

Do not pass objects over a person's head or touch their head or hair. Thais consider the head sacred and such actions are considered disrespectful. It is also considered rude to point your foot at any object or person. Never sit in a way that your feet are pointing in the direction of Buddha, an image of the king, or a person.

When giving gifts or handing something to someone, use both hands. Handing gifts to someone with one hand can be considered offensive. Never open gifts in the presence of the giver.

If you find yourself at a business lunch initiated by a Thai, it is a good idea to eat more slowly than the host. In Thai tradition, it is considered extremely impolite for a guest to finish their plate before the host. When eating, use a spoon, not a fork. The fork is only used to place food on the spoon.

Small gifts are also welcome. Consider bringing a token gift with you when you first meet a new contact.

Thai business culture is all about Sanuk, which means achieving satisfaction in everything you do and making the most of the situation. Thais follow the concept of Mai Pen Rai or Never Mind, which characterizes their overall focus on life and approach to business.

Hierarchies define not only the work environment, but Thai society as a whole. Thais are not inclined to challenge the hierarchical structure and therefore do not question decisions made by senior management.

The concept of "face" is also crucial in business interactions, as people seek to preserve their own reputation, as well as that of their business and others.

Public and Religious Holidays

Thailand is a country with many holidays, many of which have their roots in Buddhist traditions due to the influence of religion in the country.

In addition, the Kingdom celebrates numerous holidays and festivals that are not public holidays. For example, although Thai society recognizes Christmas, it is not an official holiday.

During public holidays, many public and government offices will be closed, including banks, post offices, and immigration offices. However, commercial establishments will remain open.

While specific dates may change each year, Thailand's holidays generally remain the same. This is especially true for those who follow the lunar calendar and some additional public holidays declared by the government.

• New Year (January 1)
• Chinese New Year (January-February, varies each year)
• Makha Bucha Day (February-March, varies each year)
• Chakri Day (April 6)
• Songkran Day (April 13-15)
• Coronation Day (May 5)
• Royal Ploughing Day (May, varies each year)
• Visakha Bucha Day (May, varies each year)
• Asarnha Bucha (July, varies each year)
• Buddhist Lent Day (July, varies each year)
• Her Majesty the Queen's Birthday (August 12)
• Chulalongkorn Day (October 23)
• His Majesty the King's Birthday (December 5)
• Constitution Day (December 10)
• New Year's Eve (December 31)