Doing business in Bangkok
Starting up in Thailand is fraught with pitfalls. Here are a few suggestions on how to avoid the most obvious.
Doing business in Thailand, with the Thai, can be a rewarding and profitable experience. In fact, if you really know your business, have done your homework, and have “the readies”, there is no earthly reason why your business project should not be successful. For the most part, you will find the Thai, regardless of origin, are honest and reliable. That at least has been my experience, and that
of many friends and associates. However, there are cultural and legal obstacles that may lead to frustration and failure. Contracts, whether written or verbal, do not have the same force that they have in the west. In fact, in some cases, they are not worth the proverbial “diddley squat”. SO watch it, I suggest a lawer driven document for any worthy project.
More than one hot shot from Hanover, or whiz kid from Wisconsin has gone home with tail firmly implanted between legs, and pockets well and truly laundered. More often than not, even the most basic of understanding of the culture and way of business life could have paved the road to profits.
Alas, more often than not, those who fail have reached these shores with an “I’ll teach these bumpkins how business is done” attitude that, through their own superior attitude, leaves them vulnerable to all and any cultural differences. And, as anywhere else in the world, an arrogant, smug bastard and his money are soon parted.
All too often, Hans returns to Hanover and Nigel to Newcastle, sadder, poorer and wiser men. What’s more, your troubles and potential pitfalls do not begin or end with the Thai community, not by a long shot.
There are countless Farang, or foreign business people, who love to see “newbies” arriving with their smug attitudes and fat chequebooks. All kinds of deals and “investment” opportunities will be proffered, some viable, others laughable. Never more has the term “let the buyer beware” been more appropriate.
There is a huge expat, or foreign community living and working in The Kingdom. They mostly fall into two categories ( I am referring to the majority here, the honest ones) , those who fend for themselves with their own business ventures, and those who fend for themselves with the safety net on a multinational company.
Not surprisingly, it is our opinion that the latter has the smoother road. He, or she, will be sheltered from the cultural storm by a small army of Thai secretaries, advisors, workers, and others who can translate, understand, advise, and carry our orders.
Work permits and visas are most often prearranged, and the frustrations of dealing with a bureaucracy that seems to move the goal posts frequently are, for the most part, minimized.
They often carry with them a brand name, an established foothold in Thailand, that often includes a fat salary, and a “hardship” living allowance. If they are really lucky, they sport a family structure that gives them safe haven after the day is over and they return to their homeland. That’s not to say that theirs is a care- free existence though.
They often represent bosses in some far off head office who have no idea of the cultural differences encountered here, how few actual sales calls can be made in a day, how different approaches must be when one does have a head-on meeting, how discounts are part of the culture, and how great an effect the culture shock really does have. And this is just scratching the surface. Still, they do have advantages.
The real high flyer though is the unsung hero of this little saga. This person, most often male, has been to Thailand before, usually on holiday, and has some cash to invest or develop. Or he has arrived on these shores as one of the executives mentioned in the previous chapter and, frustrated with trying to appease head office honchos, has decided to strike out on his own.
This is the guy that is either going to keep butting his head against brick walls until they fall. Or, until his head gets flat and so does his wallet. End of options. The person at the greatest risk here is the one who came opn holiday and falls in love with the place or the people, or one of the people anyway. Wow is he in for a rude awakening. Hell, being here on holiday gives an absolutely zero true picture of what it is like to do business in the Kingdom. Working and relaxing are different worlds, everywhere.
As we stated in our opening paragraph, it helps if you are good at something; it helps if you have a business plan; and it helps if you can afford to hire a Thai National immediately to at least cut down on the huge potential for misunderstanding.
It also helps if you have some idea of how expensive this town really is,
some idea of how hard it is to find qualified staff, and how much you should pay them.
You will also have an advantage if you get legal advice on visas, work permits, company formations, and the like. And a word to the wise. You will be treading on thin ice these days if you try to do business without the appropriate documents.
Not only are the authorities becoming ever more vigilant, many tax paying, paper carrying, legal and established business persons are getting tired of unencumbered carpetbaggers undercutting the prices of their goods and services too. They are not too bothered about making a discreet telephone call to immigration or the labor department. Trespassers beware.
You will get neither help, nor concessions nor even a thank you from any governmental department. You will get little of value from fellow expats either. You are on your own, bud.
That’s the way it is, and it’s not a pretty picture. But you know what? I think it is worth it. There are opportunities in Thailand for those who can operate without a safety net.
There are delights to living in this country, and it is a different way of life - many would say better - than what some of us have nudged to the back burner. The whole operation will take time, money and patience, so we sincerely hope you are long on all three.
thank. http://www.bangkokthailand.com/html/busins.htm
Bangkok Business Economic
