When it comes to business, the Kingdom of Thailand is best known for its exports of rice, textiles, tin, and electronics. However, as one of the largest and most rapidly developing economies in Southeast Asia, businesses in new industries are starting up in Thailand every year. Many of them are local, but a significant number are not. Recent decades have seen lots of large multinationals set up shop in the kingdom, and it remains a popular place for digital nomads, many of whom are entrepreneurs.
The things that attract both the above types of foreign businesses to Thailand are largely the same: low costs, relatively little bureaucracy, good connections to the rest of the world, and readily available capital. However, these benefits do not mean that doing business in Thailand is a walk in the park, although there are a number of things businesses can do that make it much easier.
Here are some of the top tips for doing business in Thailand so that you hopefully won’t have to learn the hard way.
Do your research
If you want to be prepared for the opportunities and threats that await you when entering an unfamiliar market, in-depth research will be key.
You will need to find out the market size, how much it is growing, what it wants, what your potential competitors are already delivering for it, and what laws and regulations you will have to comply with. As an example of the latter, you should be aware that many companies registered in Thailand need to have at least 51% of their shares owned by Thai citizens, and Thai employees must outnumber foreign employees by a specific amount.
Your research may involve surveys, focus groups, interviews, or research carried out by others that is available online or by request.
Outsource non-core operations
While setting up shop and actually starting trading is fairly quick and easy in Thailand, the administrative side of things can get complicated. Some accounting procedures will undoubtedly be unfamiliar and difficult, as can other aspects that require contact with the authorities, like compliance.
Many companies hire professional services accounting and other necessities which are not directly earning money for the business. Fortunately, services such as outsourcing are fairly cheap in Thailand because overheads and labour costs are low. This means you can make use of them whether you’re a home-based business or a multinational.
By outsourcing to a third party, you get more time to improve core operations like manufacturing, plus the peace of mind of knowing that these important tasks will get done correctly and on time.
Know the etiquette
If your line of business is likely to bring you into contact with Thai business people, it will pay to be prepared. The country is still quite conservative when it comes to business practices. Hierarchy matters, as does dressing smartly and building personal relationships before making business agreements.
You could be thinking of coming to Thailand to invest in medical technology opportunities or establish a new career as a self-employed digital nomad, but either way you would benefit from conducting thorough research, outsourcing administrative necessities, and learning a little about the culture and the way business is done in the country.
