This year, when Sanet celebrates the 10th anniversary of its “Business Unit” (BU), it will look back on the support it provided to 25 mostly international large or medium-sized private companies when they entered the Thai market. Sanet founder Dr. Gunter Denk resumes what still convinces many companies to start sales and service in Thailand through a “BU” at Sanet.
“After having spent 25 years as an entrepreneur of a manufacturing company with strong internationalization, I knew what makes entrepreneurs tick when expanding into new markets,” he begins his description of how to safely enter the Thai market through a ” Business Unit.”
Europe and Germany in particular is losing its attractiveness as an investment location. More than 30% of SMEs are considering relocating their production abroad. But where to and how? And which arguments are there in favor of investing in Thailand? And who possesses on-site experience and a team that can help even in difficult situations?
Thailand is traditionally known as a country that has largely stayed out of major world conflicts and now boasts an ultra-modern infrastructure. Southeast Asia is considered to be the fastest growing and politically safest economic region until 2035. An investment in Thailand is safe.
And with Sanet ASEAN ADVSORS, “Pilots” are on site to guide you through a project from planning to start of production.
Recruiting and retaining loyal employees in Thailand needs cultural sensitivity. Particularly foreigners often complain about the high turnover rate of their employees in Thailand. Indeed, it is not easy to recruit loyal employees in Thailand and retaining them at the same time. Although this matter is not only a challenge in Thailand, there are cultural backgrounds to have a look at, especially in the Kingdom of Thailand. Sanet CREARING CAREERS points out what to look out for when selecting personnel and implementing personnel policies, especially in Thailand.
A highly specialized German company in plastic materials has a global market share of 14%. But in Thailand, despite preferential prices and fair margins offered by the partner, the market share remains at only 3%. This is something the management does not want to accept any longer. They hired Sanet to investigate a possible fraud by the distributor.
The HR manager is a key position especially for international companies investing in Thailand. He has important responsibilities in the company, and yet, recruitment in Thailand is not always HR’s strong point.
Many foreigners investing in Thailand are very keen to fill the managing directors by a countryman. This is basically correct, especially in the early days. The cultural proximity of the person in charge to the local management helps to install smooth processes and good leadership.
Therefore, finding an HR manager is one of the most important tasks. But caution is advised: Qualified recruitment in Thailand is often not the HR manager’s business.
HOW TO MAKE A JOINT VENTURE A RECIPE FOR SUCCESS IN THAILAND
It is easy for foreigners to set up a wholly foreign owned enterprise (WFOE) in Thailand. However, such firms are subject to limitations, for example in trading and providing services. A Joint Venture with a Thai majority, on the other hand, is free to do anything that is possible for Thai companies. Even in such a Joint Venture, foreigners may legally have a majority of voting rights and preferential dividend rights.
Yet this must be properly planned from the very outset and cleverly set up from a legal point of view. Once the company has been established, there is very little that one can do about it.
Sanet Legal, the German lawyers in Thailand for corporate law, explain how to make a Joint Venture in Thailand a successful concept. They also point out legal options that many investors have probably not considered yet.
Criticism is often seen as injurious by employees because it is often emotional and generalizing. “No one can really ever rely depend on you!” or “If you don’t improve, you’re going to have trouble here!”
Well, what Boss hasn’t let something slip out that sounds similar? And certainly no one seriously expects devaluations such as these, which are general and personal, to motivate employees.
But even factual critiques are often regarded by employees as personal attacks. Even slight criticism is perceived by many subordinates as an assault on their personality. It doesn’t help to say that none of the criticism is meant in a personal way.
CREATING CAEREERS, Sanet’s German-speaking recruitment agency in Thailand, presents an exciting assessment system as a solution.
• Cooperation with Bodo Möller Chemie
• New business unit with IT-M
• Sanet as a guest at BOI
Sanet assists SMEs in their investments in Thailand with practice-oriented advice on legal matters, investment promotion and project management.
Investing in a new market requires high professionalism of the management. The basis for decision-making must be a meaningful analysis of potential. This includes “quantitative” data, but even more so “qualitative” information about the entrepreneurial opportunities to exploit the identified potential.
The success of a business will stand or fall with its management. This is particularly valid for freshly founded subsidiaries, but also and especially for organizations in a critical situation. It is not uncommon for start-ups failing on this question. Or else they have to accept heavy initial losses until a subsequent improvement is made.
• The Free Movement of Skilled Workers in ASEAN
• Only two shareholders now in the Co. Ltd.
• the Elite Visa: here’s how!
Sanet Legal provides an overview of developments on the free flow of skilled workers and professional services in ASEAN
Sanet Legal explains the benefits of the Elite Visa for long-term residence in Thailand and provides legal advice on visas and work permits in Thailand.
• Why is the Business Unit so popular with Foreigners?
• Thai-Austrian Business Forum to present business and investment opportunities in Thailand
• Sanet Partner Mercatus to meet Thai Ambassador in Germany
The Business Unit at Sanet in Thailand is the most efficient way to start marketing or service your products without high start-up and administration costs.
• Service: Free Initial Consulting on Investment, Law, Sales and Recruitment
• Investment: Site Evaluation – here’s what you need to look out for!
• Service: Now also Payroll Service available at Sanet in Thailand
• Sales: Overview on options how to enter the Thai market
According to Sanet CREATING CAREERS, the Thai staffing agency for internationally active companies in Thailand, Thai labor market 2023 will have largely overcome the critical phase of downsizing during the COVID crisis. But what does the new situation mean for employers and employees? Sanet CREATING CAREERS gives its outlook for 2023.
As a result of the survey by Asean Eco Research in Thailand, only 14.3% of Thai companies with international business rely exclusively on their own HR department. When it comes to recruiting staff for qualified positions, 85.7% at least occasionally work with recruitment agencies. After management positions (55%) and top technical and technical sales personnel (45%), the focus of interest is on middle management in administration.
Foreigners are often questioning the qualifications of Thai employees. Sanet, by contrast, can report best experiences, a high reputation and broad recognition for its recruited Thai professionals.