International Trade with the Kingdom of Thailand

Thailand is known as the Gateway to Southeast Asia and is strategically located in the heart of Southeast Asia’s Mekong region with a close proximity to both India and China. Thailand has the second largest economy in Southeast Asia with an open trade economy. Thailand is also a participant in many bilateral Federal Transit Administration agreements with the United States and in addition is a signatory to the ASEAN Free Trade Area Agreement (AFTA) which is a trade bloc agreement by the Association of Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and facilitating economic integration with regional and other international allies. This allows businesses to engage in virtually tariff-free or low-tariff trade within the ASEAN community.

   Government policy is favorable to free trade and investment in Thailand, with laws that protect the interest of minority investors and generous tax and non-tax incentives (BOI, EEC, IPA) offered. Ease of doing business in Thailand is well documented in the World Bank’s Doing Business 2020 ranking, due to the ease of company set up, clear legislation, cost-effectiveness, with both a skilled, and diversified workforces.

   Sanuk is the Thai word for “fun.” Thai business people like to make doing business a celebration and they consider having fun and nurturing relationships as an intrinsically valuable business activity. Therefore, it is important to become familiar with the Thai culture and ways. Thailand is known as the land of smiles for a reason. They are primarily a Buddhist nation and they strongly believe performing task for the good of others will earn them good Karma. They tend to be very sincere in their relation building activities.