Business Etiquette in Thailand
Relationships
Most Thai business are owned and controlled by Thai families of Chinese descend. This is even the case with most large conglomerates listed on the Thai or foreign stock exchange. The Thai families know each other well and are often related through marriage. Thais are therefore most comfortable doing business with people they know and respect. New business relationships, especially with foreigners develop slowly and do not flourish after one meeting. Establishing a good personal relationship is the key to a successful business relation in Thailand.
Respect for the Royal family
The Thai King and Queen and other members of the Royal Family are highly is revered in Thailand. Jokes or negative comments about the members of the Thai Royal Family are never appreciated and, in certain cases can even lead to arrest or deportation.
YES does not always mean YES.
The Thai word for YES (I agree) is “Chai”’. However, the polite form “Khrap” (for men) or “Kha” (for women) is often also translation into YES. The YES in this case is best translated in a polite YES, I follow you. To avoid confusion, it is best to specifically ask for confirmation that the answer is indeed YES, I agree.
Initial contact
The first time contact with a Thai company is best done by formal letter. Do not use e-mail for your first contact. Plan your visit to Thailand well in advance and state in your letter that you would like to meet in person to discuss business opportunities that are of mutual benefit. Thais are reluctant to respond to sales offers.Best is to enclose your company profile and clearly state the names and positions of the persons attending the initial meeting. If the name of a senior executive is known the letter can be personally addressed to that person otherwise it is best addressed to the attention of the Managing Director. You can expect to be met by a person with a position similar to yours. For instance a sales manager would most likely be met by a purchasing manager, which in a Thai company is normally not a position with any authority. In the strict hierarchical society of Thailand, the final say for important business decisions often lies with the most senior member of the family. It is common that this person is revealed to you only when the deal is made.
Business meeting
The initial meeting will normally take place in the office of the person you are meeting. Be on time, or better even, a few minutes early, to show respect. Do not get straight to business, but talk about personal topics like your family, how much you like Thailand or sports. If the potential to explore further cooperation exists, you can expect to be invited for lunch or dinner, or perhaps a round of golf.
Patience is a virtue
At times things are done at a much slower pace than in the Netherlands. It is important to remain patient and not to show irritation or other form of emotion as that may have an adverse effect.
Business attire
Business attire in Bangkok is still quite conservative. Both men and women are expected to wear dark coloured business suits. Business attire outside Bangkok (for instance when visiting a factory) is much less formal, and a long sleeved shirt should be sufficient.
Business cards
Business cards are exchanged after the initial greeting. Present your card to the most senior person first. It is important that your business card clearly states your first name and your position in the company. Look at the business cards that you receive and place them on the table in front of you. In Thailand you can expect to be addressed by your first name, preceded by Mr, Mrs, Ms or Khun. The latter is a polite form of address for both men and women.
The Wai
The “Wai” is the traditional Thai form of greeting by a person of lower status to a person of higher status. The “Wai” is then returned by the person of higher status, unless there is a great difference in status. Do not return the “Wai” to services personnel in hotels and restaurants or to service staff at offices or homes. For Westerners unfamiliar with the “Wai” is it best to let the initiative to the Thai host, or your Thai business partner. Westerners will often be greeted with a ‘weak’ handshake.
Presents
A small present will be appreciated now and then. Typical Dutch souvenirs or treats like stroopwafels or chocolates are really appreciated. Thais do not like liquorice “dropjes”. It is not a common practice to open presents in the presence of the giver.