The Country at a Glance
What languages are spoken?
Official language: Thai
Business languages: Thai and English, and in some circles Japanese, several Chinese dialects, Bahasa Melayu, and other languages of South Asia.
What is the current (as of August 17, 2021) exchange rate for the U.S. dollar, the euro, and the yen?
USD 1 = THB 33.42 (mid-market)
EUR 1 = THB 39.30 (mid-market)
JPY 100 = THB 30.57 (mid-market)
Describe your country's geography, proximity to other countries, and climate.
Thailand is approximately 513,120 sq. km. in area, about the size of France or Texas, with a population of nearly 70 million, and GDP (Purchasing Power Parity) of about USD 1.34 trillion for 2020.
Thailand has four main geographic regions: the mountainous and forested North, the fertile central plain, the arid Northeast, and the hilly South. Located in the middle of Southeast Asia, Thailand's immediate neighbors are Cambodia, Laos, Malaysia, and Myanmar. Nearby are China, Indonesia, Singapore, and Vietnam. The climate is generally sunny, tropical, and very humid, with a rainy season from June to October.
Are there cultural influences or prohibitions on the way business is conducted?
Thai culture significantly influences business dealings. Although different behaviors are accepted, most find the optimal approach to be one of politeness and respect without ever losing one's temper or raising one's voice. Conflicts should be resolved by polite discussion. Personal ties and trust also tend to be very important to the Thai people; accordingly, direct personal questions are common and not inappropriate. At the same time, people tend to be indirect in their dealings with each other and go around an issue or address a source of tension indirectly rather than going directly to the key point. These typical behaviors are not uniform, however. There are also notable currents that challenge established norms of the society by questioning the status quo and arguing for greater and more standardized openness, transparency, and accountability.
Are there religious influences or prohibitions on the way business is conducted?
The population is largely homogeneous and has relatively little racial or religious strife. Of the 25% who are not ethnically Thai, the majority are ethnic Chinese who have had an economic impact over the past century far outweighing their numbers. About 95% of Thais are Buddhist, 4% are Muslim, and a handful of other religions make up the remaining 1%. Although Buddhism imposes no specific prohibitions on business, the religion exerts influence on business dealings in that the Thai people tend to adhere to Buddhist principles such as avoidance of conflict and respect for established hierarchy.
Explain your country's infrastructure. Be sure to explain which cities have airports, railroad systems, ports, and public transportation.
Thailand was traditionally an agrarian economy, but since the Second World War, as a market-driven economy, it has developed sizeable industrial and services bases. Since the mid-1970s, industrialization has increased and investment has been directed toward export-oriented activities and the services industries. Between 1984 and 1994, Thailand had the most rapid economic expansion of any country in the world. Some of the country's infrastructure has been criticized as insufficient, but there have been numerous initiatives to make improvements in this area, including many that are currently underway.
Airports. As of 2021, Thailand has 11 international airports, plus another 22 providing scheduled commercial domestic services. Of these, the North has airports located in Chiang Mai, Chiang Rai, Lampang, Mae Hong Son, Mae Sot, Nan, Phetchabun, Phitsanulok, Phrae, and Sukhothai. In the Northeast, there are airports in Buri Ram, Khon Kaen, Loei, Nakhon Phanom, Roi Et, Sakon Nakhon, Ubon Ratchathani, and Udon Thani. In the South, there are airports in Chumphon, Hat Yai, Ko Samui, Krabi, Nakhon Si Thammarat, Narathiwat, Phuket, Ranong, Surat Thani, and Trang. In central Thailand, there are airports in Bangkok (Don Mueang and Suvarnabhumi), Hua Hin, Nakhon Sawan, and UTapao (Rayong/Pattaya). There is also an airport in Trat, the country's easternmost province on the Gulf of Thailand.
Bangkok's Suvarnabhumi Airport, which opened in 2006, is located approximately 25 kilometers east of central Bangkok. Built to accommodate 45 million passengers per year, the airport has been accommodating significantly higher numbers in recent years. As such, expansion is currently underway to accommodate these increased numbers. Don Mueang Airport, which also serves Bangkok, is the oldest operating airport in Asia and is located approximately 20 kilometers north of central Bangkok. It has become a hub for regional aircraft and low-cost airlines.
A major redevelopment of U-Tapao Airport is now in the works, which will likely occur on the basis of a PPP project.
Thai-flagged passenger airlines include Bangkok Airways, Nok Air, Thai AirAsia and Thai AirAsia X, Thai Airways, Thai Lion Air, Thai Smile, and Thai Vietjet Air. Thailand also receives extensive service from foreign-flagged airlines.
Rail Systems. From Bangkok, passenger and freight trains run regularly to the outer surrounding areas as well as to farther destinations north, south, east, and west. There are rail links to Malaysia and Laos, while rail links to Cambodia and Myanmar are expected to be available in the future. Multiple other rail expansion projects are planned for the near future. High-speed and dual-track railway projects are also in the planning and construction stages.
Ports. Major seaports are located at Bangkok (Klong Toey), Laem Chabang, Map Ta Phut, Prachuap, and Si Racha.
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Originally Published by Lex Mundi
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