Starting a business in Thailand.

[Breitling"33"]

I have been wondering why so many people have had problems starting businesses in Thailand. I worked with a swedish guy at IBM in Ireland many years ago who had setup a business exporting hand made items from Thailand into the UK & Sweden.

So the basics were he bought them cheap, shipping was pretty cheap and demand 4-5 years ago for such items was good (So a great business you would think and my Swedish friend making loads of money) sadly no!

His wife was Chinese/Thai a pretty girl whose mother owned a little shop selling clothes to tourists(good contacts). Well my friend invests a great deal of money in buying stock through her mother (about 20 thousand pounds). Got some of the stock through contacted some shops and made some money he was happy.

Next shipment turns up a bit smaller than expected, problems. He was told by her mother MONEY would solve the issue, various problems including many bribes (approx £5000). Sent her more money. Nothing arrives, problems! Contact her mother to ask why the goods had still not arrived. He was told factor closed, money gone! Happens here?

This lead to arguments with his wife and a short time split when she returned home. They are back together but he is not allowed to mention the money that has been wasted (altogether about £15 thousand pounds loss).

Its an interesting story that I remembered soon after getting off the plane and thinking "there is money to be made here" then I remembered my friend and thought and even more to be lost!

I look at Thailand and see opportunity. When I speak to my HK Chinese friends (Chinese are born business people in my mind) they say keep well away from any ideas of setting up a business in the LOS. I have also read other horror stories on the net about running a business or even buying property in Thailand.

Does anyone know anyone who has set up a successful business in Thailand.

[urtheman]

I was told by many people to be very careful and don't expect much. Business here is very iffy and if an influential Thai wants to buy your business at "fair market value" sell it or else. Many stories around of people being offered money for their business they say no and boom someone gets shot.
They still haven't found the killers of the investigator of the land frauds that was here in Phuket.
That being said some people make money being a land developer but that requires quite a bit of capital and expertise.

[Breitling"33"]

Originally Posted by urtheman

I was told by many people to be very careful and don't expect much. Business here is very iffy and if an influential Thai wants to buy your business at "fair market value" sell it or else. Many stories around of people being offered money for their business they say no and boom someone gets shot.
They still haven't found the killers of the investigator of the land frauds that was here in Phuket.
That being said some people make money being a land developer but that requires quite a bit of capital and expertise.

It sounds pretty risky when you are potentaily putting your life on the line to make a few quid.

Sounds like my friend may have got off lightly, I would not call loosing £15,000 lightly but I have read worse tales on the net. Houses being stolen is one I often see.

It is funny Thailnd looks such a nice easy going place(on the Surface). It is strange for us guys because we smile when we are happy and don't when we are not! So everything seems a little sereal in Thailand, it did to me at least.

[r3aps]

Originally Posted by Breitling"33"

It sounds pretty risky when you are potentaily putting your life on the line to make a few quid.

Sounds like my friend may have got off lightly, I would not call loosing £15,000 lightly but I have read worse tales on the net. Houses being stolen is one I often see.

It is funny Thailnd looks such a nice easy going place(on the Surface). It is strange for us guys because we smile when we are happy and don't when we are not! So everything seems a little sereal in Thailand, it did to me at least.

my mother knows someone whose son was killed last year sometime.he had a diving business somewhere in thailand and they think it was because it was doing well or rivalry that caused the death of this man.he was shot to death.
steve

[Breitling"33"]

Originally Posted by r3aps

my mother knows someone whose son was killed last year sometime.he had a diving business somewhere in thailand and they think it was because it was doing well or rivalry that caused the death of this man.he was shot to death.
steve

On the Surface evrything looks friendly but obviously just under the surface there is another face to the LOS. I think as a farang you just have to try and keep your feet on the ground and not get too attached to the place.

I like to know about the places & people I visit and find the internet a great place to find out information from those with greater knowlege of the places. That way I try to enter situations (countrys) with my eyes open. I would have liked to see the hill tribes (backpacking sort of thing) but after reading up a little on the net I am not as keen. I like to know what I am possibably letting myself in for before I go ahead with things. Access the risks sort of thing, probably comes from working along side so many accountants.

[richie007]

Having spoken to many of my clients, friends, work colleagues.......there is one thing that they all agree upon. Corruption in Thailand is RAMPANT. The goal posts are always shifting and anyone contmeplating investing in Thailand need to have their head read.

After Indonesia, Thailand is considered to be the most corrupt country in South East Asia

[stevem]

Originally Posted by richie007

anyone contmeplating investing in Thailand need to have their head read.

A rather broad generalising ignorant statement. If it wasn't for farang investing in Thailand, what sort of a nightlife scene do you think there would be??? So if you think it is so bad, why do you bother coming.

I feel the same about anyone investing in Australia, the government is just as corrupt, but the only difference is in Australia it is hidden, and people are ignorant of the fact that it does exist.

And by the way, I am Australian.

[PDM3]

Hi Stevem

Well stated! There is not a country in this world, where corruption does not exist in the highest possible administrative positions.

I admire those with sufficient resources and nerve, to do what most of us would really like to. As long as you enter into these business / investment propositions in Thailand with your eyes wide open and some good legal advice, it should be no different than doing so in your own country.

As you state, most tourist-oriented areas are predominantly financed and promoted by Farangs. Without this input, Thailand's tourist industry would be in a worse position than it already is.

Cheers

Pdm3

[Bafana]

We do business in Thailand - The trick is if you are not a multi national with mega bucks and huge government connections is to go in as either a partner with or as a sub contractor to a Thai firm. Just make sure you pick well.

That way the local knows all the ins and outs, as well as, who he needs to bribe on ocassion and you don't get ripped off.

This appraoch could be applied to a single peron wanting to start in Thailand but would be more risky as individual partners tend to be more unreliable.

Another good way to start in another country is to go and work for a big established company there and gain local experience - This will help you get all the connections you need and will allow you to understand how things work SE Asian style without over exposing yourself...

[Apollo]

So many farangs work their butts off for a few thousand quid in farangland, only to quite willing "invest" it with people on the other side of the world, different lang, race, culture, etc. Next thing they know, where's the money gone?

[Apollo]

B33, what have you learned about the hill tribes? I'd be quite curious to learn what you sussed out.

[Breitling"33"]

Hi Apollo,

B33, what have you learned about the hill tribes? I'd be quite curious to learn what you sussed out.

There are loads of very interesting sites on the web with information on the hill tribes. I have listed 2 good sites below about the Akha people but from what I have read things are simlar fro all the hill tribes of Thailand:

http://www.yellowtimes.org/article.php?sid=1838

http://www.akha.org/

There are also endless horror stories incl. child prostitution and serious medical problems. On the issue of health problems/risks when visiting the hill tribe regions it sounds as if you should have EVER injection in the book to be on the safe side Also the inpact form tourists is both good and bad, often bad.

Seems a good idea if vistiting these villages to buy REAL things off the local people (whatever, no point in haggling as even at the higher westerner rate its pennys anyway). They seem to get very little money from the tourism companys that drag tourists through their villages... Visiting prostitutes there will only bring the people down to a lower level and give more girls the idea of entering prostitution as a way of making money from rich westerners.

I would like to visit the hill tribes in Thailand still but I want to have a positive impact or a neutral impact rather than a negative one. I also have to assess the health risks as I like to be in good health when returning form a holiday.

[beuk]

I know a man in Belgium who also import stuff from thailand to sell it in Belgium. Altough he has verry good contacts with many companys overthere he has the same shipping problems lately. The shipping rates gets higher or the taxes rise for some reason and the biggest problems he`s suffering at the moment is that once the shipment leaves Thailand it`s out of the thai`s hand and he has the full responsebilaty to get them into his shop. Shipmants arrive in Belgium at the harbor and get lost or won`t be allowed in by the bordercontrols. Or he has the find the right dock where they delivered everything.

[Apollo]

Cheers, B33. You sound well-grounded with regards to travelling to exotic destinations and dealing with people outside of developed areas.

[stevem]

Originally Posted by beuk

Shipmants arrive in Belgium at the harbor and get lost or won`t be allowed in by the bordercontrols. Or he has the find the right dock where they delivered everything.

But is this really the Thai exporters fault?? Seems like a lot of folks are "down" on the Thai ways at the moment. The big problem is folks expect things to be and work the same as they are used to back home.

Once you know how the system works, and you can make it work for you, doing business in Thailand isn't all that hard. Its the lack of rules and regulations, that attract so many farang to Thailand in the first place, and yes some farang do eventually find it difficult to come to terms with. You just have to learn to go with the flow.

I prefer the lack of rules and regs environment, to the strictly enforced western society, where you virtually have to have a permit to fart. Although things are definitely on the change in Thailand.

I've owned bars in Thailand for the past 8 years, and have not experienced any major problems, touch wood.!!

Sounds like everyone should stop and have a Singha or 2.

[farangman]

Surely there are a lot of corruption in Thailand, but the beauty of it is that it's on all levels, not only the bigshot politicianc who can earn some extra or bribe off someone.

I don't think there are any big problems running a business in Thailand. I know several foreigners who're successfull. The problems occur when you get TOO successful and earn too much. Keep a relatively low profile and you'll be fine.

Or else, you can do like me, work online. Not a single thai would have to even know about it, no hazzle.

Trond,
http://www.affiliateguiding.com/

[richie007]

Originally Posted by stevem

I feel the same about anyone investing in Australia, the government is just as corrupt, but the only difference is in Australia it is hidden, and people are ignorant of the fact that it does exist.

And by the way, I am Australian.

You've gotta be joking???! I highly doubt that the Australian gov't is anywhere as corrupt as Thailands. Everyone knows the extent of corruption
runs deeply through every strata of Thai society. That is an observation and not criticism. The point is establishing a business in LOS is not necessarily a level playing field for a farang and hence it is wise to proceed with a fair degree of caution