World Country Guide

Business Profile

Economy
The Thai economy expanded very rapidly during the 1980s and early to mid-1990s; average annual GDP growth between 1990 and 1996 was 8.5 per cent. Nevertheless, certain aspects of its economic performance during this period gave cause for concern, notably the foreign debt, shortcomings in the taxation system and the weakness of the country's financial institutions. The economy was already slowing down when the Asian currency crisis struck in the late summer of 1997. In 1998, the economy contracted by 11 per cent. After a strong initial recovery, the Thai economy stutterd in 2001/2 but has now recovered again and is growing strongly.
Before Thailand assumed its position as one of the Asian tiger economies, agriculture had been the main economic activity: this has declined in relative importance as the industrial and service base expanded and developed. The sector remains important nonetheless: the main crops are rice (of which Thailand is the world's leading exporter), sugar, cassava, maize, rubber, cotton and tobacco. Fishing is also significant, especially for prawns, which have become one of the country's largest exports. Another important natural resource, timber, was highly lucrative until, under international pressure, a logging ban was introduced in 1989. However, illegal logging continues - especially on the Thai-Myanmar border where much of the best quality timber may be found. The country's other principal natural resources are minerals and gemstones are the most lucrative (again, there is much illegal activity in this industry) but there are also major deposits of tin and lead, plus copper, gold, zinc and iron, and rare metal ores containing antimony, manganese and tungsten. Natural gas and oil fields have been located offshore and are now being developed. In the industrial sector, Thailand manufactures cement, electronics, jewellery and refined sugar; there is also an important oil refinery. In the service sector, Thailand has a large tourism industry catering for over 8 million arrivals annually and worth about $7 billion to the economy. Thai companies are also highly active in transport, telecommunications, finance and the media. Thailand is a member of the Association of South East Asian Nations (and as such will participate in the planned Free Trade Area), as well as the Asian Development Bank and the Colombo Plan (a cooperative trading body covering South Asia). Thailand's main trading partners are Japan, Singapore, the USA, Germany and Hong Kong.

Business
Most people in senior management speak English but in very small companies, or those situated outside the industrial belt of Bangkok, English is not as widely spoken. Most businesses of substantial size prefer visitors to make appointments. Visiting cards are essential. Punctuality is advisable. Office hours: Mon-Fri 0800-1700. Government office hours: Mon-Fri 0830-1200 and 1300-1630.

Commercial Information
The following organisations can offer advice: Department of Export Promotion, 22/77 Rachadapisek Road, Chatuchak, Bangkok 10900 (tel: (2) 511 5066; fax: (2) 512 2670; e-mail: iticdep@depthai.go.th; website: www.thaitrade.com); or Thai Chamber of Commerce, 150 Rajbopit Road, 2146, 10200 Bangkok (tel: (2) 622 1860; fax: (2) 225 3372; e-mail: tcc @thaiechamber.com; website: www.thaiechamber.com).

Conferences/Conventions
The Thailand Incentive and Convention Association has 191 members representing all sectors of business interested in conventions and incentives. Members include hotels, airlines, publishing houses, advertising agencies, cruise operators, travel agents, lawyers, equipment suppliers and banks. The aim of the association is to provide help with every possible query that an organiser may have, as well as providing practical assistance. It publishes a quarterly newsletter, an annual guide, a gift-ideas catalogue and a social programme. The Bangkok Convention Centre is the largest venue in the country, but there are many other venues (including hotels) in Bangkok and elsewhere. The largest markets for delegates in 1988 were Malaysia, Japan, the USA, Taiwan and Australia, though interest from Canada and Germany showed a considerable increase. In October 1991, Thailand hosted the annual meeting of the World Bank and International Monetary Fund attended by 15,000 delegates. Further information can be obtained from the Thailand Incentive and Convention Association (TICA), 99/7 Ladprao Soi 8, Ladyao, Chatuchak, Bangkok 10900 (tel: (2) 938 6590; fax: (2) 938 6594-5; e-mail: info@tica.or.th; website: www.tica.or.th).