Doing Business in Thailand :: GCSE Business Marketing Coursework

Doing Business in Thailand Thailand’s booming economy has encouraged me to begin a new business relationship with a highly recognized Thai company. I manufacturer a line of products for the sugar processing industry. I recently signed a one-year contract with Thai Chemiclas and Engineering Co. Ltd., located in Bangkok, to be my exclusive representative in the Thailand area. Thai Chemicals and Engineering will promote my product line and get it into the all the sugar mills in the area. They will purchase two containers per month for which we have negotiated a compatible price. The containers will be shipping out of Savannah, Georgia with a final destination of the port of Bangkok. The shipping terms will be CIF: Bangkok. I decided to use a local company to represent my product line for various reasons. First of all, I need someone that knows the culture and business environment who has an established relationship with other locals. Once my products become known, I would like to establish a factory in Thailand. Therefore, I found it necessary to gather all the information required to begin a new business in Thailand. Establishing Business or a Factory Although business can be 100 % owned by foreign investors, some are reserved for 51 % Thai ownership. People of any nationalities can participate in ownership to varying degrees: through sole ownership, a limited company /corporation, an ordinary partnership, a limited partnership, or a branch of a foreign corporation. The Ministry of Commerce's Department of Commercial Registration is directly in charge of company registration. The Stock Exchange of Thailand The Stock Exchange of Thailand (SET) is a well-developed financial institution which welcomes foreign investment. Tax Corporate income tax rate is 30% Transport Bangkok's modern Don Muang International Airport can easily serve your arrivals or connections. Thailand is equipped with an extensive and ever-developing transport infrastructure and an extensive state-run rail system. There are numerous shipping ports including Bangkok's Klong Toey Port and the Eastern Seaboard's Mab Ta Phut and Laem Chabang deep-sea ports within 200 kilometres of Bangkok. Working Hours Typical business hours are : for banks and financial institutions, Monday - Friday 9:30 a.m. - 3:30 p.m.; Government offices, Monday -Friday 8:30 a.m. - 4:30 p.m. (closed noon - 1 p.m.); private business, Monday - Friday from 8:30 p.