In business situations, North Americans like to get to the point quickly because to them time is money. Arguments and criticism are often used as negotiation tactics, and a certain degree of aggression is considered normal as long as there aren't any blatant insults directed at a colleague. In Thailand, foreign businesspeople need to adopt a new strategy. As in most parts of Asia, Thais place the utmost importance on harmonious relationships and saving face. Cutting to the chase, as Westerners like to say, won't work in Thailand. Here are important things to keep in mind when doing business in this country.
The King of Thailand
His Majesty King Bhumibol Adulyadej came to the throne in 1946, making Thailand a unique nation in a world where there are few remaining monarchies. He has been to every remote corner of Thailand to make the lives of his people better, and pictures of him adorn the walls of most offices in the country. Thais love him, and foreigners must show respect. It's not just a matter of politeness, but of law. Insulting the King or other members of the Royal Family may invite harsh penalties. Therefore, it's best to keep silent about this delicate topic.
Initial Consultations with Thai Executives
In Thailand, working relationships begin slowly. As in other Asian countries, the best way to make contact with a Thai company is to arrange to be introduced by an intermediary who knows both you and the Thai party. The primary reason for this is due to the language barrier. Many companies don't have employees who can communicate in English. Don't rely on cold calling because it is of little use.
Once contact is made, business matters won't be addressed right away. In fact, serious discussions won't take place until the third or fourth encounter with Thai associates. Western business people can expect their Thai counterparts to ask informal questions about marital status, age, education, time spent with a company, etc. Thais place great importance on hierarchical relationships, so during the first meeting they will ask these questions to try to get a sense of where you belong in the social structure. Be polite at all times and smile in order to build trust.
Meetings and Negotiations
Be prepared to spend lots of time gathering information, bargaining, and making decisions. In Thailand, time is perceived differently than in the West and this ingrained cultural trait comes from Buddhism. Thais will not be in a rush to finalize a deal. Whatever isn't completed in one meeting can be finished in the next. Jai yen means 'cool heart' in Thai, and staying calm regardless of the circumstances is the most important philosophy foreigners will encounter here. Westerners who show impatience will be regarded as maladjusted and disturbed, and a venture will fall apart almost immediately.
In business circles some Thai executives have a fair command of English, but it would be wise to bring an interpreter in case communication difficulties become apparent. Presentations should be given in English with lots of colorful graphs and pictures. Bear in mind that Thais aren't direct. Instead of saying 'no' they will give ambiguous answers to save face and preserve honor.
Miscellaneous Tips
Thailand isn't a homogenous society. Ethnic Chinese make up ten percent of the population, and they are prominent in the business community while Thais dominate the government. Thais who trace their ancestry to China may have strong commercial interests in that country, and a deal might have to be closed in both nations.
The traditional Thai greeting is the wai. Bring both hands together as if praying, and raise them slightly above the chest to eye level. Gift giving hasn't caught on all that much, but when dealing with Chinese Thais good quality pens or calculators will do nicely. Wrap the gift in red paper and avoid white, blue and black.
Aside from sporadic political flare-ups, Thailand is largely stable and has a pro-business environment. It's a developing country with a radically different culture so it isn't realistic to expect that Thais will think or act in the same manner as Americans or Europeans. Respect them and they will enter a business relationship enthusiastically.
Reference:
Negotiating International Business - Thailand
Scott Hayden - Since joining Suite101 in early 2007, I've contributed articles about travel, history and health. My speciality is writing about workplace ...
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