Thing You Need to Know When Doing Business in Thailand

More than just a popular holiday destination, Thailand is also growing to be a haven for foreign investors. However, before you venture into the country, there are important things or issues that you should take into consideration. To help you, we will explore them here.

Number one of those is company structure and hierarchy. Thai business generally reflects a society in which hierarchy and respect for seniors are valued. Therefore, when doing business in the country, you need to understand the social status of people and the vertical structure of your company.

The next issue to consider is the working relationship. In Thailand, building good relationships is an essential part of the business and negotiation process. Thais, in general, place great importance in "impressing" and "liking" their business partners. Hence, social invitations should always be accepted if possible as these are used as means of getting to know each other before doing business together. During your first informal conversation, you may be asked personal questions about your age, educational background, and marital status. Thais will do this to understand your position in the social hierarchy and learn how to build "familiarity" with you.

The last but not the least issue that you need to consider is the Thai business etiquette. There is a long list of do's and dont's with regard to this topic but, for the sake of brevity, let us focus on the three most important "dont's". First, do not joke about the King and Queen as they are to be treated with respect. Second, do not touch your Thai colleague's head as it is considered sacred. And lastly, do not plan a meeting at the beginning and end of the day due to the difficulty in procuring transportation at those times.