Presentation script
Outline of Report
Letter of Transmittal – Gilbert
Title page – Gilbert
Table of contents - Gilbert
Executive summary – Gilbert
---------------------------
1. Introduction
2. Thailand – Country, Culture and Gender Role
3. Nonverbal Intercultural Communication
4. Business Procedures
4.1 Uniqueness
4.2 Forbidden Rules
4.3 Business Attire
5. Recommendations and Conclusion
6. References (APA style) - Alex, Maxine
7. Appendices – Dibya + Maxine
Other work / due dates
· Review and feedback – everyone by Sunday afternoon (29 March)
· Powerpoint preparation – Dibya, Justin, Jayden - Submission date April 3
· Powerpoint script: Justin, Jayden - Submission date – April 3
· Final report submission- Submission date – April 3
· APA sourcing/ editing: Alex, Maxine and Dibya
· Report formatting – Maxine, Alex, Dibya
·
1. Introduction
As we are becoming more and more connected through global trade, competency in intercultural communication skill is a must for a successful operation of any business. Smith, says” Just because “everyone” may speak English does not mean you understand each other.” It is challenging to understand each other when you are from the same culture and same place and the challenge is doubled when you are working in a foreign country with foreign staff. We are here to help you overcome this challenge and will share with you secret sauce that will help you achieve success in your business venture in Thailand.
We are South-Asian Intercultural Consultancy (SAIC) with six international team members from China, Canada and Nepal. We excel in providing education and training to medium sized companies looking to expand business and train business managers in intercultural competencies.
Section 2 will provide brief information on the country, culture, commonly used greeting in daily life and gender role. This section will help you navigate easily in the Thai society. The more you know about the how and why people behave the way they do, the easier it will be for the business managers to navigate in the foreign system. Section 3 will provide information on nonverbal intercultural communication skills prevalent in Thai society. Section 4 will shed some light on the uniqueness of the country and forbidden rules and regulations, which will be followed by recommendations and conclusion.
Source: Smith, B. (2015) 9 Reasons Why You Should Hire an Intercultural Consultant
https://www.linkedin.com/pulse/9-reasons-why-you-should-hire-intercultural-benjamin-smith-phd
2. Thailand – Country, Culture and Gender Role
Thailand is one of the largest countries in Southeast with neighbours; Myanmar in the west, Lao PDR in north and northeast, Cambodia in the east, and Malaysia in the south. The population of Thailand is estimated at 67 million. With a population of over 10 million, the capital city of Bangkok is the most important city, economically and politically (Source: Doing business) Table 1 will provide brief information on languages spoken, religion and trade. More practical information is in Appendix 1a and 1b.
Table 1- Thailand brief information
|
Language |
|
|
National language |
Thai |
|
Other languages |
Mandarin & Malay |
|
English |
Spoken widely |
|
Religion |
|
|
Buddhists |
90% |
|
Christianity, Hinduism, Islam and Sikhism |
Minority |
|
Exports |
|
|
Manufacturing products automotive parts and automobiles, computers and components, jewelry, rubber products, plastic pellets, and chemical products |
74% |
|
Agriculture products rice, processed chicken, tapioca and others |
13% |
|
Agro – industrial products sugar and canned foods |
8% |
|
Mining and others |
5% |
|
Imports from Canada |
|
|
machinery – mechanical, electrical, production vegetable products paper products chemical products base metal products leather, fur products Source (Appendix 1a)
|
|
Source: Jayden??
Courtesy and respect are the most important morals when communicating with Thai people. They believe that head in the most honorable part of the body. If you meet someone who is older or more important than you, it is best to lower your head to show proper respect. The country is known for being “the land of smiles”. Instead of showing emotion of anger or sadness, some will just smile, which you need to be mindful of while conducting business in Thailand.
“Wai” is a respectful gesture to use when you want to show your respect to older family members, higher status people, monks and customers. The proper way to preform a “Wai” is to place hands palm to palm together on chest-level, and make a small bow with lowering your head, without bending your waist. “Wai” gesture can also come with the verbal word to convey politeness - “sawadeekha” from female and “sawadeekrup” from male. Thais will not expect you to grasp the tones as pronunciations are unique, but your attempts will be appreciated.
Although Thai women are usually the primary caregivers of children and the elderly, they also hold cabinet positions in the legislature and work as doctors, scientists, engineers and in finance and business profession. While there are many career paths open to women, there are still some career pathways dominated by male including chief executives of large companies, managing directors at banks and participation in the military. Article 38 of the Thai constitution states that all citizens should enjoy equal protections under the law regardless of origin, sex, or religion. An expression still heard in Thailand refers to women as “the hindlegs of an elephant,” meaning they play a big role behind the scenes supporting men and being productive members of the economy. (Need Source – Jayden??)
3. Nonverbal Intercultural Communication
According to Guffey et al, p74 text book , verbal skills in another culture can be mastered through studies, however, non-verbal skills are much more challenging. This section will provide brief information non-verbal communication skills when working with Thai people.
· Body language and tone is very important and picked up on easily, if respect is not shown. While communicating, it is important to be aware of sudden body language movements to avoid any misunderstandings. Raising your voice or getting angry at someone will give you a bad reputation as it is considered very disrespectful to lash out emotions in public in Thai culture.
https://www.youtube.com/watch?v=tec9pCjkoxo
https://internsinasia.com/blog/business-etiquette-thailand-introductions
https://sites.google.com/site/thailandandireland/1-thailand/1-3-thai-communication-styles
· Hofstede (Source) defines power distance as “extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally”. Thailand scored 64 on Power distance index while United States scored 40. Further he explains “employees show loyalty, respect and deference to their superiors for protection and guidance, which may lead paternalistic management as such attitude towards managers are more formal and information flow is hierarchical and controlled”. It can be inferred Thai people will follow chain of command and decision will trickle down from top to bottom positions. It will be important for you to pay attention to organisational hierarchy and structure when working with Thai organisation.
· https://sites.google.com/site/thailandandireland/1-thailand/1-3-thai-communication-styles
· https://www.hofstede-insights.com/country/thailand/
· https://clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/
· Thailand is considered a high context society by virtue of being an Asian country, with characteristic such taking longer time to make decisions. Thai people believe in building a strong positive relationship before discussing business as such it might take a few meetings before reaching major decision. First meeting usually takes place over lunch and drink. It will be prudent to have an understanding of Thai food and meal etiquettes to perform better during the meeting. While planning a meeting, an advance notice is preferable. A good practice will be to give yourself a day or two to meet with the prospective partner, rather than on the same of your flight. Thai people are time conscious and being late to your meeting will be perceived as being
4. Business Procedures
This section will provide information on the uniqueness of Thailand for conducting business, rules and regulations for foreign businesses and business attires.
4.1 Uniqueness
Thailand is considered a hub or business ventures due to its welcoming economy. Infrastructure and systems are in already in place and ready to be used for the successful operations. Thai government encourages socio-economic advancements and foreign investments. The Ministry of Commerce designates classes of goods subjected to import controls, in the form of permits and licences (Source). Business licencing procedures are straightforward, making investment in Thai ventures a convenient process. This might have led to Thailand ranking 17th out of 190 economies world wide ( Source) for business activities. In addition, the cost of doing business is reasonable. For your consideration, the daily average wage for a worker is 203 Baht which is equivalent to $9 CAD (Source). In addition, people are friendly, polite and business driven. As a result, it will be in your best interest to consider Thailand for your investments.
Foreigners and the family members need to obtain non-immigrant visa before entering Thailand if they are seeking a longer stay or are looking for work. Visa is granted for 90 days which could be extended up to one year and is renewable each year (Source, Doing business)
https://www.communicaid.com/cross-cultural-training/blog/benefits-of-doing-business-in-thailand/
https://www.sfconsultingbd.com/asia/thailand-foreign-company-registration-formation/advantage-of-starting-a-business-in-thailand/
4.2 Rules ad Regulations
Proper rules and regulations should be followed for doing business in Thailand, otherwise there will be serious consequences. According to Just Landed, “Non-compliance could result in a three-year prison term and/or a fine of between 100,000Bhat -1,000,000 Baht (£2.277 – £22.778) at today’s exchange rates”. You will need to be aware of the activities that non-natives cannot partake in Thailand which are as follows:
· Newspaper publishing, radio or television broadcasting
· Rice, arable or orchard farming
· Livestock rearing
· Forestry and processing of naturally grown wood from forests
· Fishery in relation to marine life in Thai waters and specific economic zone
· Extraction of Thai medicinal herbs
· Trading and auctioning of Thai antiques or antiques which are of historical value to the country
· Manufacture or casting of Buddha images and alms bowls
· Trading in land ( Source???)
https://www.thethailandlife.com/starting-a-business-in-thailand
4.3 Business Attire
Black suits, white shirts and a tie are good choices for male. Wearing a suit might be uncomfortable given the warmer temperature as such it common to find people carrying suit jacket when they are outside. In most Thai companies, long-sleeved shirts are the only acceptable business attire so it will be strategic to choose proper shirts. Bow-N-Tie says, “You can wear light colors and fabrics made up of 100% cotton which will keep you cool”. Purple colour needs to avoided in business meetings as it is the color for mourning. Women must also dress conservatively. A dress or suit is appropriate but needs to be at a knee length. Shoulders should be covered and sensible are advised. Pants, shirts, and jackets should be free of wrinkles and stains and tattoos need to be covered to avoid any negative impressions.
https://tastythailand.com/what-women-should-wear-for-business-in-thailand-appropriate-business-dress-is-important/
https://tastythailand.com/what-should-men-wear-in-thailand-for-business-remember-its-a-hot-country/
https://www.bows-n-ties.com/mens-fashion-tips/business-dress-in-thailand/
5. Conclusion and Recommendations
English is widely spoken and understood throughout the country. In terms of medium of communication, your company will not have any challenges. However, you will need to pay more attention to non-verbal communication skills, business procedures and the Thai culture to excel in your business. Based on the discussion above, please find below SAIC ‘s recommendations for the machinery export in Thailand.
· Make sure you know the true meaning of ”Thai smile”, it doesn’t mean affirmation all the time, know the non-verbal cues.
· Exercise polite tone and practice “wai” gesture using “sawadeekha” for female and “sawadeekrup” for male.
· Avoid showing emotions of anger or sadness in public and pay attention to your body language and tone.
· Be aware of organisational hierarchy and structure
· Be on time for the meetings and plan ahead
· Make sure you know the meal etiquette and Thai cuisine
· Learn about forbidden rules of doing business for Foreigners
· Do not wear a purple tile to business meeting and dress conservatively
Appendix 1a: Factsheet on Thailand (pdf file needs to be inserted)
Source: https://www.international.gc.ca/country-pays/assets/pdfs/fact_sheet-fiche_documentaire/thailand-thailande-en.pdf
Thailand
Official Title: Kingdom of Thailand
General Information:
n/a
Capital Bangkok
Total Area 514,000 km²
Population (million) 67.793
Currency 1 CAN$=24.93 Thai Baht (THB) (2018 - Annual average) National Holiday The National Day of the Kingdom of Thailand, December 5th Language(s) Thai (official), Ethnic and regional dialects
Political Information:
Type of State Constitutional Monarchy
Type of Government
Parliamentary Democracy.
Bilateral Product trade
Canada - Thailand
6000
5000
4000
3000
2000
1000
0
- 1000
- 2000
- 3000
- 4000
2015 2016 2017 2018 2019
Statistics Canada
Balance
Can. Exports
Can. Imports
Total
Trade
Head of State
Head of Government
Prime Minister Prayut Chan-o-cha
Millions
King
Maha Vajiralongkorn Bodindradebayavarangkun
Ministers: Foreign Minister: Don Pramudwinai Commerce: Jurin Laksanavisit
Main Political Parties
Canadian Imports
from: Thailand
2019
Statistics Canada
M ach. M ech. Elec. Pro d .
F o o d Pro d .
Plast ics, R ub b er Pro d .
V eg . Pro d .
Precio us
M et als/ st o nes
V ehicles and Eq uip .
Pheu Thai Party, Democrat Party, Bhunjaithai Party, Thai Nation Development Party, National Development Party for the Homeland, Phalang Pracharat, Future Forward Party, others
Elections: General elections were held in March 2019.
n/a
Thailand Canada
n/a
n/a
n/a
n/a
Statistics Canada
Product Trade and Investment: (2019)
Canadian Exports
to: Thailand
2019
Statistics Canada
M ach. M ech. Elec. Pro d .
V eg . Pro d . Pap er Pro d . C hemical Pro d .
B ase M et al Pro d . Leat her, F ur Pro d .
Economic Information: (2018) IMF
|
GDP: (billion) |
$632.78 |
$2,222.58 |
|
GDP per capita: |
$9,334.02 |
$60,078.85 |
|
GDP Growth rate: (%) |
4.13 |
1.83 |
|
Inflation: (%) |
1.06 |
2.24 |
|
Unemployment: (%) |
1.20 |
5.83 |
Canadian Exports: $895,144,027
n/a
n/a
Canadian Imports: $3,744,061,343
n/a
Foreign Direct Investment in Canada (2018) Canadian Direct Investment in country (2018)
$56
$110
n/a
n/a
(million) (million)
Sources:
Representation:
Foreign Representation in Canada
Chargé d’affaires Mr. Thanapol Wang-Om-Klang
Canadian Representation Abroad
Ambassador Donica Pottie
n/a
February 2020
www.international.gc.ca
HTML version: https://www.international.gc.ca/country-pays/fact_sheet-fiche_documentaire/thailand-thailande.aspx?lang=eng
Appendix 1b PRACTICAL INFORMATION on Thailand
Source: https://thailand.ahk.de/fileadmin/AHK_Thailand/Member_Broadcast/Doing_Business_in_Thailand_2019_-_2020.pdf
TRANSPORT
Bus transport dominates for long distances and in Bangkok, with motorbikes and bicycles dominating in rural areas. Road transportation is the primary form of freight transport. Standard rail travel has been used for many decades for rural long-distance transportation, though plans are underway to expand services with high-speed rail lines extending to several major regions of Thailand. There has also been a significant rise in domestic air transport.
TIME RELATIVE TO GREENWICH MEAN TIME (GMT)
Thailand is seven hours ahead of GMT year round, as it does not observe Daylight Savings Time.
BUSINESS HOURS
Businesses in Thailand generally observe an eight-hour day – from 8 a.m. to 5 p.m. A one-hour lunch period is usually taken between noon and 1 p.m. Most business offices are closed on Saturdays and Sundays.
PUBLIC HOLIDAYS
The holidays observed by most businesses and government offices are:
· New Year’s Day – 1 January (or the nearest weekday) Makha Bucha Day* – around the third week of February Chakri Memorial Day – 6 April
· Songkran – 13 to 15 April
· Labour Day – 1 May
· Visakha Bucha Day* – around the third week of May
· Asarnha Bucha Day* – around the third week of July
· H.M. the King’s Birthday (King Vajiralongkorn) – 28 July
· Mother’s Day – 12 August
· Bhumilbol Memorial Day – 13 October
· Chulalongkorn Memorial Day – 23 October
· Father’s Day – 5 December
· Constitution Day – 10 December
· New Year’s Eve Day – 31 December
*Dates are dependent on the Thai lunar calendar.