Transcript Thailand2.ppt

Thailand
Heidi Vanderploeg
Roth Puth
Kelsey Gillaspie
Michaela Johnson
Heather Dunning
Aaron Gutierrez
Introduction
Our website serves as a guide for businesses to the
inner workings of Thailand. Our goal is to provide
businesses with the necessary information needed to
conduct business in Thailand.
It is essential for any business looking to extend their
business into Thailand that they become familiar with
the background and culture of this country.
Our company is here to provide the information that
you need to make your business dealings in Thailand
more successful and less stressful.
HV
General Information
Upon arriving in Thailand there are some immediate
differences that businesses need to be prepared for.
First of all is that Thailand is very populated and it would be
very easy to become overwhelmed if not prepared.
Population (Bioweb, 2005): In 2004, the population of
Thailand reached a high of 64.86 million and is continuing
to grow. The forecast for 2010 is approximating that their
population will exceed 70 million people. Their current
population is 65,444,371.
HV
General Info. Cont.
The language barrier. It would help to know some
common words for greetings and salutations.
Thai and English are most commonly spoken in Thailand.
However, English is mainly considered a secondary language for
the upper class.
Some commonly used Words or phrases (Thai Society):
“Mai pen rai”: Meaning ‘it doesn’t matter’ or ‘that’s okay’.
“Sanuk” is an important term Thai people often use that means
“to have fun”.
“Ku na” is the notion of saving face. Thais do not like to be
criticized in front of others.
HV
General Info Cont.
Religion (Country Reports, 2005)
It is also important to take note to
Thailand’s religions. The Thai’s regard
their religion very highly so it is
important to avoid saying anything that
might offend them.
Main religion: Buddhism.
There are also some Muslims, Hindis,
and Christians.
Keep in mind that Buddhists recognize
many different holidays that we find
unfamiliar and to be respectful of the
differences in cultures.
HV
Thai Weather
Asian-Hotels.com © 2005
Northern
Thailand
Hot Season (°F)
Rainy Season (°F)
Cool Season (°F)
69.8-93.2
March - June
73.4-87.8
July - September
60.8-86
October - February
Northern Thailand:
Hot Season - High temperatures are experienced throughout the day and only drop slightly at
night.
Rainy Season - Expect heavy rainfall throughout the season due to the effects of the southwest
monsoon. An umbrella is useful and wearing waterproof clothing is “NOT COOL”.
Cool Season - Extra layers of clothing are recommended as temperatures drop at night. Very
little rainfall at this time of year. Best time to travel and do business.
RP
Thai Weather cont…
Asian-Hotels.com © 2005
Hot Season (°F)
Rainy Season (°F)
Cool Season (°F)
77-93.2
March - May
75.2-89.6
June - October
69.8-89.6
November - February
Central
Thailand
Central Thailand:
Hot Season – The “Hottest” weather of the year with High Humidity. Little rainfall, but
expect to see early signs of the Rainy Season in late May.
Rainy season - Heavy rainfall throughout the season - flooding can be common
towards the end of this period.
Cool Season - remains quite hot but evenings tend to be cooler and a few warm
layers are required. Best time to travel and do business.
RP
Thai Weather
Asian-Hotels.com © 2005
Hot/Dry Season (°F)
Rainy Season (°F)
Southern Thailand/
West Coast
77-87.8
November - May
78.8-86
June - October
Southern Thailand/
East Coast
69.8-89.6
January - April
75.2-87.8
May - December
South Side/Both sides of the coast:
Differences in temperature and rainfall occur during both seasons on the east and west coasts.
Rainy Season – Both regions receives more rainfall than anywhere else in the country. Most
rain falls between June and November. Expect flooding in the west coast.
Hot and Dry Season – Pretty much rain-free between January and April. Cool sea breezes
relieve us from high temperatures and humidity. Best time to travel and do business on both
regions.
RP
Average Rainfall
Asian-Hotels.com © 2005
Hot Season
Rainy Season
Cool Season
2.7 inches
8.6 inches
1.2 inches
3.8 inches
4.0 inches
.98 inches
Northern Thailand
Central Thailand
Asian-Hotels.com © 2005
Hot and Dry Season
Rainy Season
Southern Thailand/
West Coast
4.9 inches
12.4 inches
Southern Thailand/
East Coast
1.6 inches
7.9 inches
RP
Thai Weather cont…
Remember:
It’s Hot
Wear light cotton clothing
Bring an umbrella
Dress warm for the night
In Northern Thailand and Central Thailand, the Cool
Season is the best time to do business and visit.
In Southern/Coast Thailand, the Hot and Dry Season
is the best time to business and visit.
RP
Thai Dining
What to do…..
Most hotels and restaurants offer private dining
rooms. Book in advance.
If hungry and you and your partner(s) want to
discuss business, it’s highly suggested to eat at
an upscale restaurant
RP
Thai Dining cont…
What you need to do and know at the table:
If you need something at a restaurant, never raise your voice or
snap your fingers at the waiter. Attract the waiter by waving quietly
with your palm down or say “nong”, this means brother or sister.
Thai Food is eaten with a spoon and a fork.
Chopsticks are only used for noodles.
Dishes and Soups are placed on the center of the table, so
everybody around the table can share. But each person has their
own individual plates and bowls to chow-down on their own.
RP
Thai Dining…
What you need to do and know at the table:
Rice is served first on the
individuals’ plate.
Rice is Thai’s primary source of
food and it’s usually served for all
dishes and most soups. Except
noodle soups, curries and salads.
White and Fried Rice cannot be
eaten alone. It must be eaten with
soups or dishes.
RP
Thai Dinning cont…
What you need to do and know at the table.
Spicy dishes cannot be served independently. Your dishes must
be balance by ordering bland dishes to avoid human discomfort.
Fish is Thailand’s primary meat source and usually inexpensive
than other meats.
Beef, pork, and other meats are very expensive compare to fish
because there is not enough land, farming-technology, and
money to raise farm animals.
Ordering a bottle of wine show that you are wealthy.
RP
Thai Dining
What you need to do and know at the table:
Tipping is not customary, although Thais are getting use to the
idea.
When you are done eating, make sure you leave a small amount
of food to say that you are full and place your spoon and fork
on your plate at the 5:25 position to show that you are done.
Never split the bill. It’s considered rude in Thailand. Always let
the host pay for it.
RP
Communications: Greetings
When making introductions, the younger person, or person of
lower status is always introduced first.
When in a formal situation last names are appropriate and
expected. However, when in an informal situation, first names
and titles are fine.
The Thai use the word “Khun” in place of our Mr. and Mrs.
The “wai” is a bow used to communicate hello, goodbye and
thank you. The higher the rank of the individual, the lower you
should bow.
It is inappropriate to return a “wai” to a person of lower
standing than yourself. For example, children and subordinates.
KG
Communications: Gestures
It is considered rude to touch, eat or pass anything with your
left hand.
The Thai people smile frequently, so you should too!
Never touch or pass anything over the head. It is considered
sacred.
It is taboo to touch members of the opposite sex, but
perfectly appropriate to touch members of the same sex.
It can be considered rude to point your feet at others or their
possessions.
Use your whole hand to gesture at things. Pointing is
considered rude.
KG
Communications: Dress
The overall theme for dress in Thailand is modest, neat and
clean.
For women conservative clothing including long skirts, dress
pants and blouses are appropriate. However, blouses must have
sleeves.
Day time attire for men includes nice pants and shirts, with the
tie being optional. At night dark suits or traditional Thai shirts
are the norm.
Undershirts are recommended to beat the heat and avoid
embarrassing sweating problems.
In personal homes the custom of removing shoes is common.
KG
Time
In the U.S. we have a 24 hour a day schedule. Splitting time into
two, twelve hour slots.
In Thailand they divide their days into four, six hour time slots.
Advice for business professionals is to stick to the 24 hour
clock so as not to confuse yourself. Most Thai can operate in
this was as well.
Thai people are usually flexible in their schedule allowing for
spontaneity.
Thai people multi-task.
KG
More Time
Polychronic vs. Monochronic
The U.S. views time in a monochromic fashion.
That is to say they view time as structured and something that
can be wasted.
Therefore, they value time.
Decision making tends to be done quickly in the short term.
The Thai view time in a polychromic fashion.
That is to say that time is less structured and punctuality isn’t as
enforced.
Decision making is made over the long term.
Time is more fluid and tasks overlap more.
KG
Business Meeting
Appointments must be made for everything and should be
scheduled a month in advance.
Along with the list of attendees you shall send an agenda of the
material that will be covered as well as info about your company.
Written materials should be available in both Thai and English.
You should arrive on time and be prepared to present when
scheduled. Most Thais will also be on time to reciprocate the
respect however, punctuality is a personality trait.
Meetings and appointments usually take place in a hotel lobby
or restaurant depending on the size of business you are dealing
with.
The person who enters the meeting room first is assumed to be
the person in charge.
MJ
Business Meeting cont.
VIP’s are usually escorted to their seats. In
large rooms the host will most likely sit
directly across from the most important
guest.
It is considered rude to start a meeting
talking about business. Although the
meetings begin with small talk, avoid telling
American-style jokes. These may not
translate correctly and may be offensive.
Wait to be introduced to others. This will
allow them to know their status comparative
to yours. They will then know if they should
do the wai or how far they should bow.
MJ
Business Cards
After the wai the handing of the business card is usually taken
care of, another first impression that is of utmost importance.
Always deliver your card to a person individually. Never deal
out or toss your business card on the table.
You should try to give your business card to the person of
senior status.
Deliver the card using your right hand with the Thai side facing
the person you’re giving it to.
It is polite to lay a received card in front of you during the first
meeting.
MJ
Gift Giving
Give your gift with both hands as a sign of courtesy.
Always give a better gift to the most important person. If you
are unsure of the hierarchy, give a joint gift.
Never give a gift with sharp edges (such as a knife or scissors),
this implies the cutting of ties in the relationship. Also never
give a handkerchief, which symbolizes sadness or tears.
Only wrap the gift in red if giving it to a Chinese Thai.
Avoid wrapping in green, black or blue due to their association
with funerals and mourning.
Give an American gift. Make sure that it has a “Made in the
USA” sticker, or that you remove any “Made in China” stickers
before wrapping.
MJ
Gift Giving cont.
Flowers are usually not a good gift especially marigolds
or carnations which are linked with funerals.
Good quality chocolates or fruit are always a safe
choice, as well as books and desk accessories.
After a gift is giving the Thai custom is to not open it
in the presence of the giver. This is to show that it is
not the gift that is important, but instead the thought
that counts.
MJ
Kinds of Businesses in Thailand
Sole Proprietorships
Partnerships
Limited Companies
HD
Requirements to Start a Private Limited Company
Minimum of 7 promoters
File a memorandum of association
Statutory meeting
Register the company
Obtain a company income tax identity card
HD
The Factory Act
Governs factory and construction operation
Governs safety and pollution-control
requirements
HD
General Business Information
Government Buildings open at 9:00 am and
close at 4:30pm
Lunch is from noon to 1:00pm
Banks are open from 9am to 3:30pm
Restaurants can close as early as 5:30pm, but
some stay open until midnight.
HD
Money Issues
Currency is called the Baht
Be aware of the exchange
rate
In local markets, vendors
expect bartering
Illegal to take 50,000 Baht
with you when you leave
Thailand
Minimum wage: 175
Baht/hr=$4.20/hr
HD
Thai Government
Government Type: Constitutional Monarchy
Economic System: Free-Enterprise Economy
Legal System: Based on the Civil Law System with the influence of the
Common Law System.
Suffrage: 18 years of age; universal and required
Administrative Provinces: 76 provinces
Independence: 1238
Political parties and leaders: The 4 big political parties: Democrat Party,
People's Party, Thai Nation Party, and Thai Rak Thai Party
RP
Thai Government
Executive Branch: Under King Phumphon Adunyadet, the country
consist of the Prime Minster by the name of Thaksin Chinnawat, the
ministers of the various ministries, deputy ministers, and the
permanent officials of the various ministries of the government.
Legislative Branch: 200 Senate seats (six year terms) and 500
House of Representatives seats (four year terms). BOTH, members
are elected by popular vote.
Judicial Branch: Supreme Court. Just like the U.S President, the
King selects the supreme judges.
RP
Equality in Business
On a scale from one to one-hundred, Thailand’s power distance
is 64.
A high power distance generally means that there is a high
degree of inequality.
There is more equality within US business firms.
AG
A Collective Culture
Thailand has much more of a collective business culture than
the US.
Its ranking of individualism is very low. The US is very high.
AG
Success and Caring
The masculinity in this dimension rates cultures success by
characteristics like motivation and the need for money.
Femininity is categorized as caring for others and caring for the
environment.
On a scale from one to 100, Thailand is listed at 34.
AG
Risk
Uncertainty avoidance measures the willingness to take chances.
Thailand’s uncertainty avoidance is 64.
They take less risk and follow strict rules. In the US, business
people will take more risks.
AG
The Big Picture
Asian firms tend to be family owned and managed.
Most US firms are owned by institutions and are independently
managed.
Thailand has centralized decision-making also discourages staff
initiative and promotions are based on connections and loyalty.
Western firms encourage and expect initiative from staff.
AG
Sources
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<http://www.econ.state.or.us.OregonTrade/thailandbt.htm>
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The End
Business in Thailand