Expats doing business in Thailand will note that the state is eager to engage with foreign investors. While the Kingdom has never felt the influence of imperial power, it’s no stranger to external interaction. Aside from the government’s willingness to do business with outsiders, the friendly, welcoming attitude of locals creates an inviting working environment for expats.

A variety of multinational and other major companies in Thailand continue to use Bangkok as a base for their regional operations. While the business culture at some of these companies will be familiar, the general work environment in Thailand is significantly different to what most Western expats are used to.

The expats who do make a success of their investments in the country often have a good understanding of Thailand's business culture, which values seniority, relationships, and local customs.


Fast facts

Business hours

Monday to Friday, 8.30am to 5.30pm or 9am to 6pm, with an hour for lunch.

Business language

The official language of business in the country is Thai. English is widely understood and is used by many in corporate environments in Bangkok. Interpreters may, however, be needed in certain circumstances.

Greetings

Westerners may be greeted by a handshake, but the traditional Thai greeting is the wai. Palms are pressed together in a prayer-like gesture at chest height, with fingers extended upwards, accompanied by a slight bow. The junior or lower-status person typically initiates the wai as a mark of respect.

Business dress

Conservative and formal. Dark suits are standard in professional environments; men wear a white shirt and a tie. Women can wear suits, dresses or modest blouses and skirts. Skirts and dresses should be knee-length, and shoulders should be covered.

Gifts

Not expected, but appropriate and well received. Small, thoughtful tokens for colleagues go a long way towards building relationships. Gifts should be given with both hands and aren’t typically opened in front of the giver.

Gender equality

Thailand stands out for women in business leadership, with higher representation than global averages. Foreign businesswomen are generally treated with the same respect as their male counterparts in corporate settings.


Business culture in Thailand

Business culture in Thailand tends to be more relaxed than in other Asian economic powerhouses such as China and Japan, although this shouldn’t be mistaken for casual. The value system around doing business in Thailand, however, remains similar to those of these countries. Hierarchy, relationships and collective identity are integral to the Thai workplace.

businessmen shaking hands

Hierarchy

There are many strict, unwritten rules that define how Thai businesses are organised. Senior managers play an almost paternal role – giving orders, expecting obedience and consultation on all decisions. Western expats may struggle to adapt to this management style. The lack of initiative expected of junior staff can prove frustrating for those accustomed to flatter organisational structures.

Age and appearance are especially important and usually directly indicate a person’s social status and position in the business world. Older individuals, in particular, are given great respect and typically hold top-level jobs. Senior foreign businessmen, especially the well-dressed, are afforded a good deal of respect based on this belief alone, regardless of merit. 

In line with this, promotions in Thailand are frequently based on a candidate’s length of service rather than productivity and excellence, although this is gradually shifting in multinational and entrepreneurial firms.

Relationships

Relationships are another essential part of working in Thailand. Connections are highly valued, and the early stages of most business dealings are centred on building a relationship. It is considered impolite to start negotiating before being formally acquainted.

Preserving and sustaining relationships significantly affects communication in the Thai working world. Locals favour subtle, indirect approaches to help others ‘save face’ and maintain their standing. They may even withhold information or sidestep pointing out a mistake rather than risk causing embarrassment.


Dos and don’ts of business in Thailand

  • Don’t show any form of disrespect to Thai royalty, including making jokes
  • Do say yes to invitations to social engagements. Building relationships is critical in Thai business culture.
  • Do have high-quality business cards printed for exchange. Present and receive cards with both hands, offering the card to the most senior member first. If your card is bilingual, present it with the Thai side facing up. Take a moment to look at the cards you receive and make a positive comment.
  • Do return a wai when offered by business colleagues or those of similar or higher status. Foreigners aren’t expected to initiate the gesture, but failing to return it can seem dismissive. A smile suffices for service staff.