Thailand - Exportinfo.org Country Report

Thailand

Overview

United States is Thailand’s second largest importer.

Thailand is located in the middle of Southeast Asia, which makes it an attractive area for foreign businesses interested in bringing in more sales from the surrounding countries.

Since 1999, Thailand’s economy has continued to show signs of recovery from the economic crisis in 1997.

Imports are increasing and Thai currency has stabilized.

During the years 2001-02, interest rates are expected to be low, and many firms may take advantage of this opportunity to reduce external debt.

Banks will feel pressure to increase lending.

These conditions will generate opportunities for new businesses or for the expansion of existing businesses.

Inflation is not expected to have any dramatic increase or decrease in 2001 or 2002.

Opportunities

Electronic products

Software

Telecommunications equipment

Medical equipment

Food processors

Computer services

Auto parts

Transportation

Defense

Petrochemicals

Health care

Petroleum refining

Marketing Tips

Price is very important to consumers in Thailand.

Giving gifts to consumers is a good way to keep your business running.

Local franchises are cheaper: franchise fees are lower and profit sharing is smaller.

Direct marketing is expected to increase in the coming years.

Joint ventures that provide technology and training will be successful businesses in Thailand.

Frequently contact local representatives to establish a good working relationship and to better understand the values of the Thai people.

To compete with third world countries and local competitors, U.S. exporters should emphasize quality, new technology developments, and customer service.

Advertising and trade promotions are good ways to market a product/service.

Providing customer support, training, and availability of parts is important for a successful business.

Business Culture

Patience, respect for elders, and not making others lose face is important in Thailand.

Thailand is a very traditional country.

Thai people don’t like to hurt other people’s feelings or cause any unhappiness.

Thai businesspeople can accept new ideas quickly.

Businesses operate 8-hours a day, 8:00am to 5:00pm, 5 days a week.

Do's

Try to learn and use some words in the Thai language, it will be very appreciated
Schedule a meeting just to get acquainted before getting into business
Always invite their wives to business dinners
Remove your shoes before entering into a Thai home
Bring along gifts
Write a letter introducing yourself and your purpose before arriving in Thailand for the first meeting
Always be on time
Handshake for Thai men and a smile for Thai women would be appropriate
Always smile

Don’ts

Do not be too direct, that is considered impolite
Do not lift the bowl when eating
Do not shake a Thai woman’s hand unless she volunteers first
Never touch anyone on the head, especially children
Do not cross your legs
Do not point your foot at anyone

Legal System