Business Ethics In Thailand

[Mobi]

The following letter appeared in yesterday's Bangkok Post:

I was shocked when I went to the Krung Thai Bank in Nong Khai a few weeks ago to ask why there was no interest posted in my savings account for June 2006. I was told that foreigners can't receive interest any more. When I said my accounts at Kasikorn Bank and Bangkok Bank gave interest in June, I was informed that "only private banks give them but KTB is a government bank and no longer pays interest to accounts with non-Thai people". I said I had never been told this or I would not have kept my funds there the last six months. No notice and no interest! They just stopped giving foreigners their interest. After more than 15 years of banking at this KTB in Nong Khai, I immediately withdrew my funds and went to where I was wanted. Beware!

FEELING CHEATED

So I advise any naive farangs out there, who seriously think there is a single ethical thought in Thai business practices, or that any Thais could give a tinker's arse about foreigners, that they had better think again.

There are , of course, dozens upon dozens of similar examples in every walk of life in LOS.

Doesn't stop me wanting to stay here though - after all I'm retired.

But I am under no misapprehension of where I - johnny foreigner - stand in the scheme of things.

Edited September 7, 2006 by Mobi D'Ark

[Plus]

Is it entirely up to the bank discretion to pay the interest or not. What if they told you there's interest when you opened account but changed their mind later.

Is there any legal ground for any of this?

[Losangels]

I think there is more to the story of why a foreigner wasn't paid interest on the account at Krung Thai bank. Most likely there were some miscommunication with the staff at the bank which may or may not say it (not knowing any better which is likely the case). I would talk to the manager at that branch asking for an explanation. As far as I know all banks in Thailand must follow the rules and regulations from Bank of Thailand. Of course BOT changes the rules often and all the banks in Thailand may not know the details about them, sometimes rules come out in conflict of each other which confuses the banks not to mention the customers.

As far as business ethics here many of you think is unfair to foreigners which I believe in general is true. But is is also unfair to many Thais, the system is not geared toward "fair" competition, if you play by the normal rules that are acknowledged and accepted in the developed countries, I think you won't be in business long. Therefore you have to play by the unofficial rules to survive in the business, which I feel is unethical to say the least.

[Hans Brix]

I never put any cash in Thai banks

[Gonzo the Face]

If you are going to discuss "ethics" in Thai business then this will be the shortest thread in the history of TV

Also as ethics have no bearing with Thai Business , maybe some mod should close the thread as non thai related

[Losangels]

If you are going to discuss "ethics" in Thai business then this will be the shortest thread in the history of TV

Also as ethics have no bearing with Thai Business , maybe some mod should close the thread as non thai related

Or move it to the Business, banking, investment forum?

[Donz]

We know how this thread is going to turn out

[farang prince]

We know how this thread is going to turn out

Gee, Don, please tell me how it is going to turn out. Inquiring minds want to know.

[Mobi]

I think there is more to the story of why a foreigner wasn't paid interest on the account at Krung Thai bank. Most likely there were some miscommunication with the staff at the bank which may or may not say it (not knowing any better which is likely the case). I would talk to the manager at that branch asking for an explanation. As far as I know all banks in Thailand must follow the rules and regulations from Bank of Thailand. Of course BOT changes the rules often and all the banks in Thailand may not know the details about them, sometimes rules come out in conflict of each other which confuses the banks not to mention the customers.

As far as business ethics here many of you think is unfair to foreigners which I believe in general is true. But is is also unfair to many Thais, the system is not geared toward "fair" competition, if you play by the normal rules that are acknowledged and accepted in the developed countries, I think you won't be in business long. Therefore you have to play by the unofficial rules to survive in the business, which I feel is unethical to say the least.

You may be right about mis-communication, but I doubt it, after all the guy had been banking there for 15 years. It has happened before. Sometimes, the so-called "private" banks don't pay interest to foreigners either. Then, when they have a big campaign to attract deposits, they decide to pay interest for a while. Like everything here, there are no regulatory bodies that are interested in policing such pracices.

I also agree that unethical business practises also effect Thais. I was making two points - general lack of any ethics (which can effect anyone) and the inherent racism which is used to advantage against foreigners trying to do business here.

Edited September 7, 2006 by Mobi D'Ark

[kmart]

I also agree that unethical business practises also effect Thais. I was making two points - general lack of any ethics (which can effect anyone) and the inherent racism which is used to advantage against foreigners trying to do business here.

Exactly. There is no accountability here.

[womble]

Yeah, it's not just aimed at farangs, all consumers here get a raw deal. It's the people who own the companies and have the dosh that exploit all others in any way they can.