Hail the King and Don’t Forget to Party

Anyone hoping to do business in Southeast Asia will eventually travel through Thailand, which has rapidly become the economic hub of the region.

But travel there requires advance planning and a knowledge of cultural and business customs.

Thailand is a constitutional monarchy where the king is held in high esteem. It is considered rude--and in some cases can result in legal problems--to be perceived as being disrespectful of the king, said John Irvine of John Irvine & Associates, a Santa Ana-based international marketing and cultural training firm specializing in Southeast Asia.

For example, when the king’s image is projected at the start of a movie at a theater, everyone in attendance is expected to stand.

The principal religion of the country is Buddhism, which affects the way in which business is conducted.

And Thai people cultivate sanuk , roughly the equivalent of joie de vivre , said Irvine, whose wife is Thai.

“In Thai, the word for work and the word for party are the same,” he said. That doesn’t mean Thais don’t like to work, but that it is important that everything is done with a sense of enjoyment.

“A meeting that doesn’t include a meal is not much of a meeting,” Irvine said. “Thais love to do business outside of business.”

Preserving harmony is also a key aspect of Thai culture. Outward displays of anger, especially open confrontation, are avoided at all costs. It is important to keep these factors in mind when trying to establish business relationships.

Perhaps the most critical factor in ensuring a successful business trip, however, is making sure the appropriate person goes on it. If you are expecting to meet with a high-level official of a Thai company, for example, you must send a person of equivalent rank.

“You can’t send a sales manager over if you are going to meet with the president,” Irvine said. “Status is very critical in Thailand.”

Unlike in the United States, where concern over status is equated with snobbishness, in Thailand it is more a matter of people knowing where they fit in, what their responsibilities are and who depends on them.

Concern and respect for status are also manifested in concern for appearance. It pays to present yourself professionally. This is one reason not to plan to walk to meetings, even those a short distance away, Irvine said. “Because of the humidity, you will arrive looking sweaty and disheveled and won’t make a good impression.”

Having a Thai go-between can also be useful during business negotiations because Thais avoid direct confrontation. If a Thai business person is unhappy with your offer, you will not hear it directly, but rather by asking a trusted go-between, he said. Such people can be found through mutual contacts, trading companies, consulting firms and government trade offices.

Above all, never put a Thai business colleague on the spot, Irvine said. “Preserving your counterpart’s face should be your absolute priority.”

Getting Around

The primary destination of most business travelers will be Bangkok, which is served by Don Muang International Airport. Most major international airlines serve the city. You don’t need a visa for stays of up to 15 days. For more information, or to apply for a visa, contact the Thai Consulate in Los Angeles at (213) 934-6532.

The majority of Thailand’s manufacturing industry is centered around Bangkok. The city itself, however, is decentralized, said Tassenee Watanakuy of the Tourism Authority of Thailand in Los Angeles. Because traffic is a tremendous problem, it’s helpful to choose a hotel as close as possible to your meeting sites, and if you must travel to different parts of the city during the day, plan carefully to allow enough time, she said.

If you need assistance, there are transportation service and Thai Hotel Assn. counters in the arriving-passenger area of the airport. Bangkok has dozens of business-class hotels with complete business services. For more information, call the Tourism Authority of Thailand at (213) 382-2353.

Because of traffic, Irvine suggests you avoid setting meetings during peak travel times in the early morning or late afternoon. Midday meetings, especially at lunch, are best. Meal times also offer an opportunity to socialize and get to know your host, a critical factor in developing successful business relationships.

Taxis are plentiful in the city. Some have meters but most don’t. If you use an unmetered taxi, always negotiate a price before you get in. Ask a knowledgeable Thai, such as the concierge at your hotel, what a reasonable price is for your destination. Generally, taxi fares are less expensive than those in the United States.

Keep in mind, however, that Thais love to negotiate, so don’t expect set prices, Irvine said. “Thais have no concept of not bargaining. There has to be a negotiation or it’s not satisfying.” Negotiating can also serve as a good icebreaker, he said.

When traveling by cab, it also helps to write the destination in Thai to give to the driver. In many cases, an address is less helpful than a description of the location with some landmarks, Irvine said.

Some people prefer to rent a car and hire a Thai driver. That way you can get work done if you get stuck in traffic, and you are assured you won’t get lost, Irvine said.

Road conditions are good throughout the country, but people who drive themselves should remember that there are not as many signs in English outside the main metropolitan areas, Watanakuy said.

You need an international driver’s license and passport. Major rental companies, such as Hertz and Avis, have offices throughout Thailand and can also assist in finding you a driver.

For longer trips, you can take Thai Airways International or Bangkok Airways, both of which serve numerous domestic cities.

Business Hours

Most offices in Bangkok are open weekdays from 8 a.m. to 5 p.m. Retail outlets are often open longer, seven days a week. Government offices typically close from noon to 1 p.m. and at 4:30 p.m. Banks are typically open from 8:30 a.m. to 3:30 p.m. weekdays. The major banks operate currency exchange centers in tourist areas from 7 a.m. to 9 p.m. seven days a week.

Money

The currency in Thailand is the baht, which is worth slightly less than 4 cents. Each baht is the equivalent of 100 satang. Traveler’s checks are honored at banks and hotels, as are major international credit cards. Although hotels offer exchange services, the rates are typically more favorable at banks.

Safety

As in most cities, petty crime is common in tourist areas. Gemstone scams in which someone offers to show a traveler where to buy gems for resale in the United States are common. The U.S. Department of State’s Bureau of Consular Affairs warns travelers to be wary of such offers and of friendly strangers who offer to serve as tour guides. Some travelers have reported being drugged and robbed in bars or in their hotel rooms.

Credit card fraud is on the rise, and travelers should use their cards only with established businesses.

In terms of health, note that the AIDS virus is epidemic in Thailand. For updated safety information, contact the U.S. State Department’s Bureau of Consular Affairs at (202) 647-5225.

Customs

Although business customs are fairly Westernized, it’s still best to wait and take your cue from the Thai host. The traditional Thai greeting, a prayer-like gesture called the wai, may be used instead of shaking hands.

Some casual U.S. gestures, such as sitting with your legs crossed or putting your feet on a table, can offend Thai people, who consider it extremely disrespectful to point your foot at a person.

Similarly, what in the United States might be considered a “friendly pat on the head” violates another Thai cultural rule. The head is regarded as the highest part of the body and is not touched. Public displays of affection are also discouraged.

Finally, because of the number of Western visitors, tipping is much more common in Thailand than it used to be. In hotels and restaurants serving tourists, tipping 10% to 15% is customary. It is less common to tip in local establishments serving primarily Thai customers, Irvine said.

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Resources

Some useful addresses, phone numbers and publications for doing business in Thailand:

OFFICIAL FOREIGN OFFICES

The Thai Embassy can answer questions about visa requirements and offer advice about business and trade issues. Royal Thai Embassy

1024 Wisconsin Ave . N.W. Washington, D.C. 20007 (202) 467-6790 Fax: (202) 429-2949

The local office of the Thai Consulate and the American Chamber of Commerce in Thailand can assist with common questions. Thailand Consulate General

801 N. La Brea Ave. West Hollywood, CA 90038 (213) 937-1894 Fax: (213) 937-5987 American Chamber of Commerce

P.O. Box 11-1095 140 Wireless Road 7th Floor, Kian Gwan Building Bangkok, Thailand (662) 251-9266 Fax: (662) 255-2454

TRADE CONTACTS

The following organizations promote trade between the United States and Thailand. U.S.-Asian Council

1400 L. St. N.W. Washington, D . C . 20005 (202) 289-1911 Fax: (202) 289-0519 U.S.-Thailand Business Council

3000 K. St. N.W. Washington, D . C . 20009 (202) 337-5973 Fax: (202) 337-0039

People interested in investment opportunities in Thailand should contact the following organizations.

Thai Trade Center, Los Angeles

3660 Wilshire Blvd., Suite 230 Los Angeles, CA 90010 (213) 380-5943 or 380-5944 Fax: (213) 380-6476

Board of Trade of Thailand

150 Rajbopil Road Bangkok, Thailand 10200 (662) 221-0555 Fax: (662) 225-3995 Office of the Economic Counselor

5 World Trade Center, Suite 3443 New York, NY 10048 (212) 466-1745 Fax: (212) 466-9548 The Export Promotion Department can provide information on tariffs. Export Promotion Department 22777 Ratchadaphisek Road Bangkok, Thailand (662) 511-5066 Fax: (662) 512-1079

For in-depth information on trade practices and laws in each country, business people can access the National Trade Data Bank by calling the U.S. Commerce Department. U.S. Commerce Department

International Trade Administration Asia Business Center 14th Street and Constitution Avenue N.W., Room 2327 Washington, D . C . 20230 (202) 482-2522 Fax: (202) 482-4453 The following organization can assist companies with export marketing information and provide access to the Automated Trade Library Service, a free on-line database. California Trade and Commerce Agency

Export Development Program Office of Export Development 1 World Trade Center, Suite 990 Long Beach, CA 90831-0990 (310) 590-5965 Fax: (310) 590-5958

--Researched by JENNIFER OLDHAM and DAVID NEIMAN, Los Angeles Times

Sources: John Irvine & Associates, Royal Thai Embassy, U.S. Commerce Department