I'm Afraid Of Doing Business In Thailand

[bluegibbon]

As a foreign national, I'm afraid of ever doing business or investing in small businesses in Thailand due to perceived mafia and/or violence presence/harm to my family if I were to ever do well. I'm half-Thai and it is sad that this is the case.

Is this a true fear or have I been hearing too many stories?

[keemao]

the latter

[jumnien]

If you don't compete in the usual businesses where mafias throughout the world compete in, you should be fine! This is a very friendly place if you are a friendly type of guy.

[bluegibbon]

Getting into specifics, for example say I started and ran a successful IT/web business site in Thailand. You know, borrowing ideas from successful US websites and translating it to the Thai market. Would there be any need to answer/pay money to some local mafia elements?

Edited September 10, 2007 by bluegibbon

[keemao]

no

[Prakanong]

Getting into specifics, for example say I started and ran a successful IT/web business site in Thailand. Would there be any need to answer/pay money to some local mafia elements?

Never ever heard of anything like that. You will be absolutely fine.

There are stories about bar's and the like but I really do not know

[monty]

Getting into specifics, for example say I started and ran a successful IT/web business site in Thailand. You know, borrowing ideas from successful US websites and translating it to the Thai market. Would there be any need to answer/pay money to some local mafia elements?

No problems at all...

If on the other hand you plan to start a fair and honest metered taxi service to operate within Pattaya city limits, you'd stand a fair chance to have a run in with the local bath bus boys

[bluegibbon]

Ok I'll consider your replies as semi-solid information. I still better do research on this though. All the stories (edit, AND news articles) I've been reading of the Thai mafia/hit-man, people unfairly wanting their share of the pie and going to the extremes to ensure, business jealousies, etc are still pretty shocking and keep me adversive from considering much future career in doing business regarding Thailand unless related to large companies/multi-nationals. Maybe it's different, who knows. I wish Thailand/it's government would somehow try really hard to stamp out this type of horrible crime activity like the US has been doing. I sometimes feel one needs protection in Thailand just for the fact of being part of a family that would be considered well off.

I'm planning to learn Thai as part of college so hope that things are not what they seem from my perspective.

Edited September 10, 2007 by bluegibbon

[wolfmanjack]

someone in another post said that the ice making businesses were all controlled by the mafia.

[Cuban]

Getting into specifics, for example say I started and ran a successful IT/web business site in Thailand. You know, borrowing ideas from successful US websites and translating it to the Thai market.

Just as you have borrowed the idea from someone else so will a Thai national borrow the idea, operating model, website graphics, website text and pricing scheme from you. Their customer service and running costs will be lower than yours and you could find yourself training their future staff with your specialist skill set only to loose them once they think they know your business enough to go it alone or re-join their relation in their company.

If you are going to do something like this you need to be the source of the business, not just the person that codes the website and sits back waiting for the income to come in.

I wish you well with your venture.

[blizzard]

is he going to be making ice on the web...............lol.

[cclub75]

Would there be any need to answer/pay money to some local mafia elements?

Of course. To the legal mafia : the State.

The private mafia with guns and knifes, it's more for shaddy business...

But as I said, for perfect legit and classic businesses, then the legal mafia could be a bigger threat.

Corruption is everywhere, you could be at the mercy of any official, from low to high ranking civil servants, in any department, any agency.

That's part of the pleasure of doing business in Thailand.

Edited September 10, 2007 by cclub75

[thaihome]

...

That's part of the pleasure of doing business in Thailand.

Or any third world/devloping country.

TH

[cclub75]

To give some background to my claims...

Based on my personal experiences. I would like to speak about.... The Customs.

An endless subject of discussion...

We import periodically an industrial product (always the same, neutral, it means no dangerous whatsoever, basically it's a product in plastic).

Sometimes we have to use an express carrier like UPS (for emergency delivery to customers).

UPS, normally, take care of the customs. Smoothly. It means : if the UPS package (20 to 30 kilos in our case) arrives monday morning in BKK, UPS will deliver the next day. We pay UPS, and UPS pays the Customs. That's for the theory.

However, 2 times on 3... The Customs stop the process, to "inspect" the package. Then it takes several days (almost 5 !)... And of course we have to pay a fee for the "storage".. It's not alot of money. That's not the point.

But such stupid corruption is very DISRUPTIVE ! I mean if we use UPS it's because it's URGENT.

I mean 1 week ,we could use regular air freight. It would be the same time.

And I should add : our company exists since 20 years.... They know us....

I know it's a detail; but again it's symptomatic.

Those guys, with their greed, can basically kill a business. With a smile.

Then I won't even speak about the process when you import a DIFFERENT kind of good that you used to...

The point is : when you have an history regarding the import of product A, then the Customs can't cheat you with the duties to pay. It would be too obvious.

But if one day you import a product B, then the circus can start. They could give you a crazy custom code, with higher tariff for instance.

I remember one meeting, we went to see a very mean old woman (you know, she thinks she's high so, with a stupid hair cut, but basically she's a civil servant anyway).... in Customs department. To simply explain that the product we wanted to import was this, and not that (regarding to the classification). Oh my god, she was so, so, full of stupidity, greed and contempt.

Because yes that's another point : they know that they have the "power" to steal your money, but also they are very...unfriendly !

Voila. Other people dealing with Customs I'm sure could give you thousands of other stories. From the most funny one to the most tragic.

What a liability for the economy of this country, oh my god...

[soundman]

Just as you have borrowed the idea from someone else so will a Thai national borrow the idea, operating model, website graphics, website text and pricing scheme from you. Their customer service and running costs will be lower than yours and you could find yourself training their future staff with your specialist skill set only to loose them once they think they know your business enough to go it alone or re-join their relation in their company.

If you are going to do something like this you need to be the source of the business, not just the person that codes the website and sits back waiting for the income to come in.

I wish you well with your venture.

That's it in a nutshell. Be careful with your trade secrets or make plans to maximise profit on any new idea / concept / product in the smallest possible timeframe.

Soundman.

[samran]

if you are thai, get your thai passport so you don't have to go through all the legal hoops that non-thai's have to.

[mausplan]

The guys are right about the stealing the business plan part, you need to keep key matters to yourself. Thai's have no problem with copying and sharing , even if it is not malicious , they give out information and confidential and do not copy are just pretty stamps. Non-disclosure agreements are not taken seriously. Thai's will sign because you ask them too but they know you are never going to sue a individual, you have to find them first.

Having said that , dont be discouraged , it isnt a Western country in these regards but if you are hiring IT qualified staff in Bangkok most are ok. It is essential to get a good Admin or Finance person who can also be house mother and the eyes and ears for you.

[Berkshire]

You sound like a young guy trying to make it big (or just get by) in Thailand. You don't have any Thai language skills, so you obviously haven't been in-country for any length of time. I'd say corruption is the least of your worries. I think basic business problems, such as competition, quality (and desirability) of product, understanding the laws, access to capital, and just having basic management acumen will be your demise. Sorry to say, but unless you're starting with a pile of money, your chances of success are rather minimal. I've said it before and I'll say it again--the only way a foreigner can have a lot of money in Thailand is if they brought it with them in the first place!

[Time Traveller]

If you're afraid of doing business or investing in small businesses in Thailand, then don't. Next question.

[witold]

Most new businesses fail, whether they are started in the West or in Thailand.

For someone who doesn't even speak the local language, doesn't know the local business atmosphere, chances of failure will be higher. For someone who has never run a business and who thinks that all the sudden they can run a business in a foreign country, chances of failure will be much higher.

You are not the only one who 'copies' business ideas. This is standard practice. Most successful businesses are just copies of each other. How many pizza places do you have in the US, hamburger places, etc? All the same, all making money, because it's a proven business model. It's very formulaic and people know exactly where each cost needs to be and what they can expect in terms of revenue, margin, occupancy, etc... People who think that they need a 'new' idea - 99% fail miserably and 1% may actually discover something that becomes huge. Nine times out of ten, there's good reasons why your idea has not been put into practice.

In Thailand, you have 2 problems to deal with. First, people don't have that much disposable income so they don't spend nearly as much. It's hard to make money off of poor people.

Second, Thais are willing to put in hours, work for free for family members, have a network of help, and outwork you and be happy making a lot less at the end of the day. Whereas you may want to make $4K/month for it to be worth the effort, there are plenty of Thais who think that $1.5K/month is worth the effort.

[kevozman1]

I would not do business in Thailand.

Thailand = Holiday

[coxhoedave]

if you are thai, get your thai passport so you don't have to go through all the legal hoops that non-thai's have to.

The OP is Thai regardless of if he holds a Thai passport or not. Lots of Thais are without a passport.

Best get on the Tabian Baan although if he is under 30 there may be issues regarding national service.