Business in Bangkok

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Posted by: Economist.com | LONDON
Categories: Etiquette
IF YOU go to Bangkok on business, don't fret about Thai customs and taboos. Many guidebooks will tell you how important it is not to touch anyone’s head or to point your feet at them. But often on the Skytrain you'll see groups of locals playfully flicking each other about the head, as though the taboo is honoured more often in the breach. And likewise you often see Thais brazenly sticking their feet out at the people sitting on the opposite bench.

In general, in fact, you should take any advice about doing business—including the tips below—with a pinch of salt. Thai businesses are hugely varied: some are modern and cosmopolitan, run by people with degrees from the world’s top universities who are fluent in various languages. Some are very much not. It pays to find out in advance about your counterparts.

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Eating and drinking

• If you are ordering Thai food, ask for it to be "pet-NIT-noi", which means "a little bit spicy". Otherwise it may come very spicy indeed (the way Thais like it) or very bland (on the assumption that foreigners won't want any spices at all).

• Breakfast meetings are not very popular. Dinners don’t go on too late because your Thai counterparts will need to get home, and may live a long way from the centre. You might get dragged along to a karaoke bar; if so it’s more important to make an effort to sing than be a good singer.

• Social-hierarchy rules govern who should pay for meals and things. But these don’t apply with foreigners. At business meals the inviter generally pays.

• If you continue to do business with the same people, you might have more social contact with them, beyond fairly short business lunches and dinners. You might after a while be invited to nightclubs, though don’t expect deep friendships from business contacts. Thais are happy to talk about their families up to a point, but don’t get too personal. And don’t assume that the lady that you see a businessman with is his wife!

• Tipping is a filthy foreign habit, of course, but Thai taxi drivers and waitresses won’t object, if you give a modest offering of no more than 20 baht. Most decent restaurants will automatically add a 10% service charge, though a few leave it up to you.

(Photo credit: AP)

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Working habits

• Big firms based in Bangkok are usually used to the Western ways of doing business. Smaller firms, especially ones away from the capital, may be a bit shy of dealing with foreigners, especially given the language and cultural barriers.

• You may find that the social, family and political connections of the people you are contemplating doing business with are more important than their skills, capital or business experience.

• Thailand has a high level of corruption in public life (though it’s not the worst in the region) so there is a danger of being expected to do business according to “local customs”—things such as price-fixing cartels or bribery. They are illegal here, as elsewhere, but the law is flouted more often than in say Britain or America.

• Your Thai counterparts may speak fabulous English. Or their English could be worse than they realise—this can often be the case with junior government officials. Try to find out discreetly beforehand whether you should bring a translator.

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Meetings and greetings

• When Thais meet other Thais they do a wai, a gesture that involves bringing the palms of the hands together and bowing the head slightly. Some expats say your Thai counterparts will appreciate a wai when you meet them. Others (more sensibly) will point out that there are all sorts of subtle differences in how you do the wai depending on your status relative to the other person’s, so there’s a risk of giving the wrong one. A handshake is normally fine.

• Thailand is a very class-based, hierarchical society, and appearances do count when you’re doing business: if you dress in scruffy clothes and arrive on the bus, you’ll not make much of an impression. It’s probably best to come to meetings in a business suit.

• Thais are not particularly good timekeepers and meetings often start late. They can often drag on, too, and it’s not easy to chivvy things along without appearing rude.

• Meetings usually start with a bit of small talk—stick to uncontroversial subjects like food, sports, the weather, etc. Beware of the monarchy: only gushing praise and seriousness are acceptable.

• Swap business cards politely at the start of meetings; receiving someone’s card doesn’t have any particular significance.

• You don’t often hear the word “no”, but you might hear “maybe” or “we’ll think about it”, which may mean “no”. Even “yes” sometimes only means “yes I can hear what you’re saying”.

• Don’t expect to confirm a deal on a handshake at the end of the first meeting. In fact you might not get to meet the decision-makers at your first meetings.