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Business Business Profile Thailand and Bangkok were at the heart of the Asian economic collapse in 1997. The economy had been growing at a steady pace throughout the 1980s and 1990s and it was perceived to be one of the Asian Tiger economies. In 1997, the economy shrunk and unemployment increased dramatically. The government took swift action to control the economy and stabilise the currency, and there was improvement during 2000. It looked like the health of the economy would return, however, this faltered in 2001 following the events of 11 September and exports from Thailand decreased. The economic growth fell to just over 1% whereas in 2000, it had been over 6%. Tourism continues to be a particular success story for Thailand. Following the economic collapse and the flotation of the Baht in July 1997, the government launched its ‘Amazing Thailand’ campaign, which saw a dramatic increase in the number of visitors, many of whom were keen to take advantage of the favourable exchange rate. Tourist arrivals have continued to increase year on year and 2001 saw 10.1 million tourists – an increase of 5.78% on 2000. As Thailand is perceived to be at the heart of South East Asia and the gateway to other markets in the region, many multinational companies have a presence in the city. Companies from all industries have offices or manufacturing companies in Bangkok, such as Toyota, Unilever, Proctor and Gamble, Philips, Sony, Compaq and even Tesco, who bought a 75% share in a retail group with 12 stores. Despite the downturn of business and the erosion of profits for all markets, most foreign investors have stayed put and favour a long-term commitment to Bangkok and Thailand as a whole. There is still a huge difference in the standard of living between city dwellers and those in the countryside. The national rate of unemployment increased significantly in 2001 to 3.89%, which is comparable to the figure for Bangkok. Business Etiquette Most senior businesspeople in large or international companies will speak English but it is not common in smaller companies. It is essential to make appointments for business meetings and to exchange business cards. Punctuality is also very important (although the visitor is quite often likely to be kept waiting after arrival) – so the Bangkok traffic must be taken into consideration when going to appointments. Thai hosts are quite likely to give small gifts to visitors, so it is a good idea to reciprocate with a typical national gift of one’s own. Visitors should never get angry or raise their voice, if things are not going according to plan, as this will mean the loss of face on both sides. Much more progress will be made by remaining calm. Meetings often take place over lunch and these are generally held in a Thai restaurant. Thai businesspeople are quite formal in their dress but, because of the extreme heat, it is quite acceptable and practical to dispense with the wearing of a suit jacket. Office hours are usually 0900-1700 Monday to Friday. There is a large ex-pat community in Bangkok and there is a big after-work drinking scene. |
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