Geography

Area: 513,115 sq. km.

Location: Southeastern Asia, bordering the Andaman Sea, the Gulf of Thailand, Myanmar, Lao P.D.R., Cambodia, and Malaysia.

Cities: Capital - Bangkok (pop. 10 million). Other cities - Samut Prakan (pop. 390,300), Nonthaburi (pop. 300,200), Hai Yai (pop.191, 200), Chiang Mai (pop. 152,300) (2002).

Climate: Tropical; hot and dry from February to May (average day temperature 34 degrees Celsius), rainy, warm, cloudy southwest monsoon from June to October (average day temperature 29 degrees Celsius), dry, cool northeast monsoon from November to January (temperature range from 20 to 32 degrees Celsius).

Terrain: Central plains; Khorat Plateau in the east; mountains elsewhere.

Natural Resources: Tin, rubber, natural gas, tungsten, tantalum, timber, lead, fish, gypsum, lignite, fluorite, arable land.

People

Nationality: Noun-Thai (Singular and Plural) Adjective-Thai.

Population: 64,631,595 (2006).

Ethnic Groups: Thai 75%, Chinese 14%, Malay 3%, and the rest are minorities (Mons, Khmers, and hill tribes).

Religions: Buddhism 95%, Muslim 4%, Other 1%.

Languages: Thai, English is widely understood, particularly in Bangkok. English and some European and Asian Languages are spoken in most hotels, shops and restaurants in major tourist destinations, and Thai-English road and street signs are found nationwide.

Literacy: 94.9% both male and female over age 15 are literate.

Government

Type: Constitutional Monarchy.

Independence: 1238 (traditional founding date; never colonized).

Constitution: Constitution signed by King PHUMIPHON on 11 October 1997; abrogated on 19 September 2006 after coup; interim constitution promulgated on 1 October 2006; junta has promised new constitution by October 2007.

Branches: Executive branch - King PHUMIPHON (Chief of state), Prime Minister (Head of government) elected from among the representatives leads the government, Deputy Prime Ministers, Cabinet. Legislative branch-Parliament consists of the Senate (200 seats; members elected by popular vote to serve six-year terms) and the House of Representatives (500 seats; members elected by popular vote to serve four-year terms) Judicial branch-Supreme Court (judges appointed by the monarch).

Political Parties: Democrat Party, People's Party, Thai Nation Party, Thai Rak Thai Party.

National Day: December 5 1927, Birthday of King PHUMIPHON.

Economy

Currency: Baht (THB).

GDP: 550.2 billion (2005 est.).

Agriculture: 9.9% of GDP. Products - rice, cassava (tapioca), rubber, corn, sugarcane, coconuts, soybeans.

Industry: 44.1% of GDP. Products - tourism, textiles and garments, agricultural processing, beverages, tobacco, cement, light manufacturing such as jewelry and electric appliances, computers and parts, integrated circuits, furniture, plastics, automobiles and automotive parts; world's second-largest tungsten producer and third-largest tin producer.

Trade: Exports (2005) - $105.8 billion - textiles and footwear, fishery products, rice, rubber, jewelry, automobiles, computers and electrical appliances. Main Partners - Japan, China, U.S., Malaysia, UAE, Singapore Imports - $107 billion: capital goods, intermediate goods and raw materials, consumer goods, fuels. Major Partners - Japan, China, U.S., Malaysia, UAE, Singapore.

Traditions: Thailand is the only country in Southeast Asia never to have been colonized by European nations. The name Thai means "free." The Thai hold the Asian values of balance, harmony, order, and care in the establishment of relationships. The family is the foundation of Thai society. Thai place great emphasis and value on outward forms of courtesy such as politeness, respect, genial demeanor and self-control in order to maintain harmonious relations. Traditionally public dispute or criticism is avoided at all cost-a non-confrontation society. The Thai avoid confrontation and find mutually acceptable ways to deal with differences. Preserving faces both for themselves and with those they interact is a must for the Thai.

Rank: Thai respect hierarchical relationships. Social relationships are defined as one person being superior to the other. Royalty and monks always ranks highest. Parents are superior to their children, teachers to their students, and bosses to their subordinates. When Thai meet a stranger, they will immediately try to place you within a hierarchy so that they know how to interact with you. Several factors determine a person's social status: income; occupation and education; age; clothing; social connections; and family names. This is often done by asking what might be seen as very personal questions in other cultures. Speech is modified depending on rank, status, and hierarchy, and a "deferential" style of communication is in order in the presence of authority. For instance, the Thai language offers ten ways of saying the word you, and the choice depends in part on the relative status of the listener.

Ones role determines behavior. When you are the superior, some responsibilities as the higher-ranking individual are expected: picking up the tab at dinner; dressing your role; trying not to avoid your position; being courteous to those of lower status; and the like. Even though you rank above many Thai people, you always rank below monks and royalty. If you are the inferior, you are expected to obey and listen to the superior, sometimes without questioning or interrupting because it can be seen as arguing. When entering business meetings, the highest ranking person should sit first. Be clear in providing your rank and status, and inform participants of whom you report to. Thai expect the highest ranking senior official to conduct the business conversation, and will not understand if subordinates interrupt.

Business Communications

Greetings: Thai welcome each other by a gesture of bowing known as Wai. Press your hands together like in prayer, keeping arms and elbows close to your body, bow your head to slightly touch your fingers, and say Sawadee (pronounced Sa-wad-dee). Not all Thai are comfortable with touching strangers, and the wai allows people to greet each other without physical contact. The wai is a sigh of respect as well as a greeting, given by the person of lower status to the person of higher status. It is mainly used for both meeting and departing. Respect and courtesy are demonstrated by the height at which the hands are held and how low the head comes down to meet the thumbs of both hands. All the greetings, such us Hi, Hello, Good morning, as well as Goodbye, and See you later are also called Sawadee in Thai. If your host does wai you then you should definitely wai that person in return. However, it is unusual for older people to wai younger people in return; simply nod and smile in response. You don't have to wai children and service staff.

Thai will shake hands with Westerners, but they will be pleased if you greet them with their traditional greeting. The best way to deal with this is to follow the lead of the host.

Names, Titles and Forms Of Address: Thai address one another by first names and titles and reserve last names for very formal occasions and written communications. Mr., Mrs., or Miss can be shortened as Khun, both men and women. Occasionally, you will meet Chinese-Thai business people. Use proper titles as well.

Names: The surname follows the given name (first name). Example Chuan Leekpai, former Prime Minister. His first name is Chuan and last name is Leekpai. Nicknames are popular in Thailand, and once you are more familiar with people, it is usual for Thai to encourage you to call them by their nickname instead of their first name. To keep things a little formal, it is acceptable to call your colleague Khun Ying instead of Khun Somying. Don't be surprised if you get a nickname by Thai, particularly if your name is hard for them to pronounce. Also note that Thai will tend to translate Khun David to be Mr. David when dealing with foreigners, rather than Mr. Smith; it doesn't imply familiarity, however.

As mentioned above, many Thai business people are Chinese. The order of Chinese names is different from Thai names. Chinese names consist of a family name and two personal names. Example Mao Ze Dong, the first leader of Communist China. His last name is Mao and first name is ZeDong. Chinese wives do not take the husbands surname, but maintain their maiden names. Madam plus the maiden name is appropriate. Example: Li Chu Chin married to Chang Wu Jiang is Madam Li rather than Mrs. Chang. (Morrison, Conaway, Burden).

Many Chinese adopt an English first name. Example: Chang Wu Jiang = Mr. Walter Chang. There are only 400 Surnames in Chinese, but they translate into more. Wong, Wang, Huang, are all English versions of the same.

Business Cards: A high quality business card is an important asset in Thailand. If the business card is in a language other than Thai, the translation should appear in Thai, printed on reverse side. Title may also be included on the card. Business cards are given out after the initial handshake and greeting. Give your card to the most senior person first, using your right hand to present the card. If you receive a card, look at it for a few seconds before placing it on the table or in a business card case. It is polite to make some comment about the card, even if it is only to acknowledge the address.

Meetings: Business trips are best planned in November-March. Avoid planning business trips or meetings the weeks before and after Christmas, and during the New Year Festivals (both Thai and Chinese ones). Most businesses close for an entire week. Inform in written a month or two in advance to arrange appointments. Punctuality is important; allow extra time between appointments, particularly during the rainy season.

Government times are 8:00 a.m. to 4:00 p.m. Business hours are 8:30 a.m. to 5:00 p.m., Mon-Fri. Shops open 10:00 a.m.-7:00 or 9:00 p.m., Mon-Sat or Sun. Appointments are necessary for meetings; made one month in advance. Provide your Thai counterparts a list of who will be attending the meeting and their credentials so that Thai know the relative status of those people and can plan properly. Thai business people like to get to know you before discussing business, so your initial meeting may be over lunch or drinks. Show your respect by arriving at meetings on time, but do not expect Thai to be on time. Always send an agenda and material about your company and your position in advance. Written material should be available in both English and Thai. If your meeting is in Bangkok, you can use English in the meeting and presentation as well as have your proposals or handouts in English. However, make sure to speak clearly and slowly without any idioms or complicated words. Thai are more comfortable with British and American accents than other. Some Thai business people need to interpret English to Thai in their head, so be patient and allow extra time between your presentations. Take a professional interpreter if the language will be a problem. Make sure to have your materials colorful and interesting, especially if it is in English. Prepare several copies of your proposal - ideally one for each participant, and a few spare for who may be interested.

When Meetings Ends: Simple conversation is common at the start or end of your presentation. It helps building a good relationship between you and the Thai. Shake hands of those involved in the meeting. You may offer a wai to the host.

Decision Making: The individual is responsible for his or her decisions. Thai are non-assertive, as well as being very conscious of the feelings of others and their position in the social hierarchy. Decision making takes a long time because of the hierarchy. The situation and/or the hierarchy can affect decisions. The typical superior is authoritarian.

Negotiation Style: Business is conducted and accomplished at a much slower than in western countries. It is very elastic. Different Thai ethnic groups conduct business differently; the educational level and degree of international exposure will influence their attitudes and styles. The Thai like to build a good relationship before negotiation. Thai enjoy combining business and pleasure. Always accept invitations to activities such as golf, lunch, and other functions because it is seen as an opportunity to get to know each other. Because of the Thai deference to rank and authority, all requests and decision must pass through many levels before reaching top management. Be patient and flexible in negotiation process. You might need to go back and present more information. In negotiating, be assertive and never lose control of your emotions; that is considered poor manners. Maintaining group harmony and avoiding conflict are critical to Thai people. Direct confrontation is seen very impolite. The Thai try to avoid confrontation at all costs. They will never say no and rarely criticize, but will make implausible excuses instead. Be aware of these signposts because it may indicate significant problems. For instance, your Thai counterpart may focus on small, insignificant details as problems. Don't get upset and impatient because these may imply there is a larger problem that needs your attention. The Thai don't want you to lose face. Likewise, they don't expect direct negative answers. To identify the problem, stand back and ask for details, try to avoid the specific topic but be careful to place all pieces together. Learn even a few words of Thai to make an impression because it shows your interest in the country and its culture.

Contracts and Legality: The Thai will not normally close a deal until they have built a strong relationship. Contracts can change if the relationship changes with their business partners. Contracts are usually written in Thai as well as in English.

Communication: Communication is formal and according to protocol. Non-verbal communication is often more crucial than verbal communication. The Thai hardly say no, so "listen to" their non-verbal communication. Watch your body language and facial expressions because these will be believed over your words. When dealing and interacting with others, be respectful and courteous since it leads to the concept of harmonious relationship. It is inappropriate to be too direct or assertive as it can rupture a relationship. It is rude to confront differences directly. Restrain your emotions; it is not respected to show your anger or outburst in business.

Silence is active and indicates thought not disengagement. A smile can indicate embarrassment and discomfort. If someone begins laughing for no apparent reason in a business meeting, do change the subject. That person is embarrassed. Humility in communication is important. Do not exaggerate your ability to deliver, and expect Thai to be self effacing in communicating.

Although many Thais have been educated in the U.S., Britain, Canada or Australia and speak English well, speaking and understanding a conversation on a telephone is often the most difficult part of mastering a foreign language. To deliver your message and prevent misunderstanding, it is best to write. This also gives the Thai company more time to think about a response. If there is any question about the comprehension of English by the people you are meeting, always use your own translator.

Common Phrases:

• Sa-wad-dee-krab (used by males): Hello or Goodbye

• Sa-wad-dee-kha (used by females): Hello or Goodbye

• Ka-roo-na (with a request): Please

• Khaup-khoon: Thank you

• Mai-pen-rai: You're welcome

• Khaw-toat: Excuse me or Sorry

• Pom-cher (used by males): My name is

• Di-chan cher (used by females): My name is

• Pom khao jai krab (used by males): I understand

• De-chan khao jai kha (used by females): I understand

• Pom/Di-chan mai khao jai: I don't understand

Facial Expression: Smile - Thailand is "The Land of Smiles". It means that Thailand is a land of numerous smiles-and not all of them are signals of cheerfulness. The different interpretations of smiling may lead to problems, particularly if the situation in which they occur involves stress or tension. A smile is often used for many different emotions. It may be an apology, a thank-you, a greeting, or to show embarrassment, shame, remorse, tension, fear, or sadness. The smiles that Thai employ are intended to relieve tension, an effort to preserve the relationship. It simply reflects the Thai appreciation of harmony and their "never mind" attitude.

Gestures and Physical Space: Avoid show affection in public, especially between the members of the opposite sex. Touching between people of the same sex is common. Never touch or pass anything over anyone's head. The head is considered sacred and must be respected. Never point your foot at anyone or use your foot to move anything or touch anyone; it is considered extremely rude. Don't cross your legs in the presence of the elderly or monks. Don't put your hands in your pockets while talking to someone. Never put your arm over the back of the chair in which someone is sitting. Avoid wave your hands about as you talk. Never pass anything with your left hand. Never point with your hand and never, never with one finger. To point to something, use the open hand. To beckon, have palm down, gesture fingers toward body. Do not put hands in your mouth, bite nails, or dislodge food from teeth with the fingers.

Stance: Posture signals breeding. Stand and sit without slouching in a formal stance, and keep hands out of pockets. Bending your back when walking pass a person who is older than you. Thai will prefer to stand a couple feet away from someone they are addressing.

General

Tips For Doing Business In Thailand:

• Be wise by hiring a representative with local connections. Networking with government officials and/or correct authorities can be the key to doing business successfully.

• Use full date in correspondence since most of Asian countries use day/month/year format. (i.e., 5/3/07 means March 5, 2007).

• Be polite and deny it if you get a compliment by a Thai person. Modesty is the key.

• Be low key and courteous. Lower your voice to show respect. Remember the most senior and elderly are respected.

• Do smile. Thai smile for all occasions: to say hello or thank you, to apologize, to make a request, and to smooth over bad feelings.

• Avoid topics relating to politics and religion. Never ever discuss about the monarchy or issues such as national security.

• Do show respect for the king. Rise when the national anthem is played.

• Do show respect for religion. Dress properly when going to a temple.

• Practice your wai; otherwise don't do it. Position of your hands shows your respect.

• Do not lose your emotion.

Dress: Your social status and success will be perceived by the Thai in the way you dress. Business attire is conservative. Businessmen should wear conservative suits, shirts and ties. In the evening, dark business suits or formal traditional Thai shirts are appropriate. Businesswomen should wear conservative suits or dresses, high necked blouses, low heels and neutral colors. Shoes are always highly polished. Men should wear slacks and shirts, with or without ties in casual settings; women should wear light dresses or skirts and blouses. Short-sleeved blouses are acceptable, but sleeveless ones are not.

Dining: If you are invited to a Thai's house, arrive close to the appointed time. Remove your shoes before entering the house if your host is not wearing ones. Step over the threshold rather than on it.

Thai food is eaten with a spoon and a fork. Chopsticks are for Chinese food and noodles. The spoon is held in the right hand and the fork in the left used to push food onto the spoon. Cut with the side of the spoon, not the fork. Sticky rice, a northern Thai delicacy, is often eaten with the fingers of the right hand. It is not unusual for a huge amount of food to be presented--it is seen as bad form on the part of the host if not enough food is provided. Most meals are served as buffets or with serving platters in the center of the table. If there are any soups, then diners will also have a small round bowl placed in front of them. This bowl is for soup only. Food may be transferred to your plate, where it can be mixed with rice. Rice is eaten with almost every meal. If the food is spicy, don't try to force yourself. Instead, try another less spicy dish. Food may be passed from one diner to another during the meal. Follow the lead in passing dishes. Any scraps, such as shell fish, are usually placed on a communal plate, typically one plate for every 3-4 people. If none is available and you have no rice left on your plate it is a good idea to request a new dinner plate.

Never finish the last bit of food in the serving plates. Wait until it is offered to you and then refuse politely the first time. When it is offered again, accept; it is considered an honor to have the last bit of food. Leave a small amount of food on your plate when you have finished eating to show you are full. Never leave rice on your plate as it is considered wasteful. Place your spoon and fork on your plate at the 5:25 position to indicate you are done eating. Toothpicks are common at the end of the meal, but be sure to cover your mouth with your free hand.

Thais will usually have the restaurant staff serve the dishes if soups or more complicated dishes have been ordered. At finer hotels this is certainly the case, but at more casual restaurants, especially outside of Bangkok, all are welcome to help themselves. Use the serving spoons provided. Be careful not to get any rice on the serving spoon or back in the main dish.

To attract a waiter, wave quietly with your palm down or say "Nong" (brother or sister). Never snap your fingers or raise your voice to attract a waiter. The bill is likely settled at the end of the meal. The host or the most pays the bill. Never offer to split a bill in a restaurant.

If eating a quick meal with Thai staff, such as a quick lunch at a local food market, it is common to split the bill based on what each person ate.

If a service charge is included, then no tip is needed. Ten percent of the bill is acceptable, and change will normally be given in a series of smaller bills if you pay cash. A tip of between 10 and 50 baht is more than satisfactory.

Drinking: Drink water, tea or beer with meals. Never drink tap water unless it's boiled. Alcohol is not common at lunch, but always present at dinner. Communicate clearly to your host if you do not drink alcohol, or only wish to drink a little. If you are dining at a restaurant, the staff will keep your glass full at all times. Be careful to keep track of how much you have drunk, especially if you are not used to the humidity and are dehydrated. Ice can be added to beer.

Entertaining: Entertaining is an important part of relationship building. Thai love to eat and food is a central feature of most activities. The business lunch or dinner mostly takes place at a restaurant. It is best to arrive on time and as a group. The host and the more senior members of the group should be seated first. Foreign guests are almost always told where to sit. Thai will always do the ordering. If you are asked what you prefer, don't be hesitate in making suggestions or reminding the host of any allergies, etc.

Host Duties: The host pays the bill. Never offer to split a bill in a restaurant.

If, as a foreigner, you want to host a meal and pay for it, you can arrange with the restaurant to present the bill only to you, away from the table. This way you may avoid an embarrassing situation with the Thai guests wanting to pay because you are the visitor to Thailand.

Toasting: A popular toast is 'Chai Yo!' It is acceptable to toast with a non-alcoholic beverage. Toasting to longevity or health is acceptable.

Gifts: Gifts should be wrapped attractively since appearance matters. Avoid wrapping a gift in green, black, or blue as these are used at funerals and in mourning. Only use red wrapping paper if giving a gift a gift to a Chinese-Thai. Gifts are not opened in the presence of the giver, unless invited to do so. Simply hold the gift or put it away and open it later in private. Give and receive a gift with your right hand. You should offer a wai. It is usual to give gift baskets full of tinned fruits, cookies, whisky and other items at New Year. However, these are commonly given and received on behalf of a company.

If you are invited for a meal, bring flowers, cakes or fruit. Don't bring marigolds or carnations, however, as they are associated with funerals. When giving a gift to an individual, something small and inexpensive form your home country is most appreciated, rather than something obviously expensive.

Appropriate:

• Illustrated books

• Company product

• Brandy

• Neckties and clips

• Cigarettes

• Dolls in native dress

• Stationary

• Good quality chocolate

Inappropriate:

• Sharp objects; knives and scissors

• Mirrors

• Perfume

• Handkerchiefs

Flowers: Avoid giving marigolds or carnations as they are associated with funerals.