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Doing Business with a Thai Company

Doing Business with a Thai Company
Cultural Influences/ Prohibitions
The Thai culture exercises significant influence on business dealings. Although the Thai people are tolerant of different behaviors, the optimal approach is one of politeness and respect without ever losing one’s temper or raising one’s voice. Conflicts should be resolved by polite discussion. There is a unique Thai identity, giving rise to “the Thai way” of doing things. People tend to be indirect in their dealings with each other and go around an issue rather than go directly to the key point.

Although Buddhism imposes no specific prohibitions on business, the religion exerts influence on business dealings in that Thai people tend to adhere to Buddhist principles, such as avoidance of conflict and respect for established hierarchy.


Infrastructure
  • Airports - There are 33 airports in Thailand.
  • Road - Thailand has had an active road-building program since the early 1960s and now boasts a vast network of all-weather highways linking all parts of the nation. Thousands of trucks and buses transport goods and passengers inter and intra provinces.
  • Rail - From Bangkok, trains run regularly to the outer surrounding areas as well as to farther destinations north, south, east, or west. International trains only run to Malaysia and Singapore.
  • Ports - An estimated 85% of Thailand’s trade goes through Klong Toey Port on the Chao Phya River. There are also deep seaports at Ma Ta Phut and Laem Chabang on the eastern seaboard, and at Songkla and Phuket in the south which are playing ever-increasing roles in international and coastal trade.
Regional Free Trade Agreement
In January of 1992, Thailand signed the Framework Agreement on Enhancing ASEAN Economic Cooperation (AFTA). The goal of this Agreement was to establish an ASEAN free trade zone. The countries now affected by the AFTA Agreement are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Thailand is also a member of the World Trade Organization. Thailand has already signed its first Free Trade Agreement with Bahrain, which came into effect on December 29, 2002 under the Thai-Bahrain Framework Agreement on Closer Economic Partnership. Apart from Bahrain, Thailand has also signed Free Trade Agreements with China and India. The Free Trade Agreement with China took effect on October 1, 2003 while that between Thailand and India took effect in March 2004.


Travel Restrictions
All nationalities may travel to and throughout Thailand. Some nationalities must obtain a visa prior to visiting Thailand. There are 14 nationalities including China and Taiwan, Czechoslovakia, Hungary and India that can obtain a 15-day visa upon arrival in Thailand. Tourists from 39 countries including the U.S.A., Japan, the EU, Canada, Australia, Malaysia and Singapore may enter without a visa for 30 days.