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INVESTMENT IN THAILAND: HOW TO PREPARE A PROJECT

INVESTMENT IN THAILAND: HOW TO PREPARE A PROJECT

It is not every year that a company plans foreign investments, and the best “blueprints” cannot be adopted for a new project without risk. Planning the organization of a project carefully is decisive not only for the smooth running of the project. A lack of preparation inevitably leads to expensive, subsequent adjustments and delays in the start of your production in Thailand and thus the return on investment.
The Sanet Group in Bangkok has been supporting foreign investments in Thailand for around 20 years, not seldom from the initial workshop and strategy finding to the start of production.

Thereby, it has proven itself time and again that the management pays full attention to the following planning principles:
• Proactive communication of the project with stakeholders
• The proper composition of the project team
• Agreed project and reporting rules
• Selecting and involving of external support

Our expert opinion deals with these key criteria.

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SANET: THE “ONE-STOP SERVICE” FOR WESTERN COMPANIES IN THAILAND

SANET: THE “ONE-STOP SERVICE” FOR WESTERN COMPANIES IN THAILAND

Whenever it comes to an investment in Thailand, be it for distribution or production in Thailand, the consultants of the Sanet Group have proven to be the expert guides through law and business in Thailand.

Since founding the “Strategic Alliance Network (Sanet)” by entrepreneur Dr. Gunter Denk, operating in Europe and Asia, we have been systematically expanding the group’s expertise, particularly in Bangkok, as our company profile illustrates impressively. With its four companies and around 40 experts in the segments of management and investment consulting, legal advice and accounting, recruitment and distribution in Thailand, we at Sanet support Western companies in Thailand in any special business situation.

Find out here which services the Sanet Group offers for your investment and business in Thailand or for Western companies already based in Thailand.

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Ensuring Data Privacy in HR and Recruitment: Understanding Thailand’s PDPA

Ensuring Data Privacy in HR and Recruitment: Understanding Thailand’s PDPA

In 2022, Thailand introduced the Personal Data Protection Act (PDPA) to establish clear guidelines for safeguarding personal data. As technology advances, the threat of data breaches rises, making these guidelines essential. The PDPA defines the duties of data controllers, like companies handling employee data, to ensure proper data management and protection.

Human Resources (HR) and recruiting departments, which frequently collect and manage personal data through job applications, employee records, and healthcare information, must comply with the PDPA. To meet these regulations, HR departments should follow several key guidelines for data protection.

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“WE DON’T MOAN ABOUT THE ‘SHORTAGE OF SKILLED WORKERS’, BUT INSTEAD WE GO TO WHERE SKILLED WORKERS ARE!”

“WE DON’T MOAN ABOUT THE ‘SHORTAGE OF SKILLED WORKERS’, BUT INSTEAD WE GO TO WHERE SKILLED WORKERS ARE!”

An Austrian entrepreneur chooses a service in Thailand as the winning solution for his company’s international expansion.

We interviewed Anton Abson about the reasons behind expanding his IT services via a Business Unit in Thailand at Sanet Trade & Services for the implementation of his services in Asia. He tells about the benefits and special characteristics of a team of professionals working for him in Thailand and about the service in Thailand that he has found with the SANET Group.

Read here the blunt opinion of a strong family entrepreneur about skilled workers in Europe, the special features of Thai employees and the opinion about the “Thai-typical” business model of the Sanet Group as his service partner in Thailand.

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BOI PROMOTION THAILAND: CONGRATS TO SPALECK THAILAND

BOI PROMOTION THAILAND: CONGRATS TO SPALECK THAILAND

Sanet is proud of having successfully guided Spaleck GmbH on its path to direct market entry into Thailand and Southeast Asia.

After successfully managing the legal challenges, Sanet now will also handle the payroll and accounting services in Thailand and CREATING CAREERS, Sanet Group’s Thai recruitment agency will engage the right sales and service team.

The additional establishment of a production facility in Thailand is now firmly in the management’s sights. This new venture is expected to bring considerable additional tax and customs benefits, which will further strengthen Spaleck’s competitiveness.

The success story began in 2021 …

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Sanet Legal Ltd. becomes “Sanet Legal & Accountancy“: Accounting in Thailand

Sanet Legal Ltd. becomes “Sanet Legal & Accountancy“: Accounting in Thailand

The Sanet Group in Bangkok is now offering accounting services in Thailand for international SMEs. Sanet Legal Ltd. will thus be formally renamed “Sanet Legal & Accountancy” from April 2024.
Three “SME Packages” include everything needed for legally compliant and management-oriented accounting, such as accounting, monthly reports, tax declarations and reports tailored to the needs of both well-established companies and start-ups.

Under the guidance of a certified auditor, Sanet also offers payroll services, BOI reporting and audits for local and international SMEs.

In close cooperation with the lawyers under the common umbrella, shareholder resolutions and meetings will be prepared and implemented in a legally secure manner.

Thus, the Sanet Group further rounds off its position as a comprehensive service partner for Thailand-based corporations.

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CREATING CAREERS now a brand of “Sanet Manpower Co., Ltd.”: Recruitment in Thailand

CREATING CAREERS now a brand of “Sanet Manpower Co., Ltd.”: Recruitment in Thailand

With the name Sanet Manpower Co. Ltd., Sanet, the international Consultancy Group in Bangkok now has integrated the recruitment brand CREATING CAREERS into its portfolio, and offers a job placement service for jobseekers in addition to recruitment.

Investments and market success are largely dependent on a company’s employees. The same, of course, applies to the consultants themselves. As a licensed recruitment consultancy in Thailand, the Sanet Group is known for its corporate management and legal advice, but also for the quality of its team and its selection of employees, for example for the business units of its sales company Sanet Trade & Services.

These competencies are now reflected in the entity “Sanet Manpower Co. Ltd.” as of April 1, 2024.

The experienced professionals that Sanet deploys for recruitment in Thailand are organized into specialized teams for “Leadership” in management, HR, accounting and controlling and for “Technology”, i.e. engineers, procurement and production. A further “Operations” team is responsible for IT, operations, and logistics.

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Sanet Business Unit now with import service: Sales to Thailand

Sanet Business Unit now with import service: Sales to Thailand

For many years, the Business Unit (BU) at Sanet Trade & Services has been recognized as the fastest and most cost-effective way to establish a contractual representation in Thailand. Sanet handles marketing, technical service and sales in Thailand using employees working specifically for each principal. Of course, Sanet has regularly obtained direct orders from customers in Thailand for its manufacturers and principals.

One downside of the BU, however, was that Sanet did not trade in spare parts for the principal. The parts often had to be imported in a time-consuming process, while the customer in Thailand preferred to have their repairs carried out quickly and directly without customs clearance.

This is now changing: a new import and export license makes it possible.

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Case Study: Troublesome Joint Venture in Thailand

Case Study: Troublesome Joint Venture in Thailand

As a consultant and “cultural ambassador”, Sanet helps a German machine builder with its Joint Venture in Thailand.

The German machine manufacturer held 75% of a sales and service Joint Venture in Thailand. A Thai partner owned 25% of the shares and managed the business single-handedly and largely without any direct intervention by the German majority partner. Little attention was paid to the Thai subsidiary.

The earnings were okay, but the sales figures were not impressive enough to make the Thai company the focus of the group management. After the company was established in Thailand, the German Controller came once a year for the annual accounts and soon returned home without any major problems. Market shares, market policy and the local company management were largely unaware of the situation at headquarters.

The surprise came as soon as the Thai partner wanted to introduce a successor.

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Work Permit for Thailand: This is the Legal Situation

Work Permit for Thailand: This is the Legal Situation

“If you sweat you work” Based on this satirically exaggerated principle, the Thai legislature requires a work permit for any activity that requires mental or physical exertion, regardless of whether it is paid or not.
Misleading or simply false information on the internet about new visa types such as the ‘Work-From-Thailand-Visa’, or “remote work” for foreign employers has led to confusion regarding the unchanged need for a work permit for Thailand.
Sanet Legal Ltd, the German speaking lawyers in Thailand provide clarification:

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INVESTMENT IN THAILAND PAYS OFF

INVESTMENT IN THAILAND PAYS OFF

If you want to service the Asian markets from an environment characterized by a secure legal system, a top infrastructure and state-of-the-art industrial parks, the only question is whether you can afford in the long term to forego an investment in Thailand.

Investing in Thailand offers investors benefits that investors in other countries can only be envious of. The economic and political environment of this country in the heart of Asia is stable and characterized by thousands of modern manufacturers and suppliers in the electrical and automotive industries. Government incentives are generous, based on sound legal regulations and have been providing support for many years.

A labor market with technically outstanding engineers and skilled workers awaits investors. And an infrastructure with highways throughout the country, three deep-sea ports, punctual elevated express trains, whose network is growing rapidly every year, eases economic activity. An excellent healthcare system and a high quality of leisure time also make life worth living for investors in Thailand.

In addition, the Sanet Group has been offering a full service for investors in Thailand for 20 years, from strategy consultancy to legal implementation, the entire project organization with site evaluation and tendering, right through to applications for incentives or recruitment.

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Thailand Privilege Visa: How to Expect Privileges and Exclusivity in Thailand

Thailand Privilege Visa: How to Expect Privileges and Exclusivity in Thailand

If you are looking for the right visa for a long-term stay in Thailand, you will probably come across the Thailand Privilege Visa. The new edition of the Elite Visa allows you a 5 to 20-year residence permit and luxurious privileges and services through Privilege Points. This is available to those who are able and willing to pay the necessary fees.

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Your own employee in Thailand: High fines for illegal activities

Your own employee in Thailand: High fines for illegal activities

Having their own employees in Thailand seems to be the cheap and direct way to sales and service in Thailand for many foreign companies. But beware: The law prohibits foreigners from selling their products or even providing consulting or technical services through by themselves or through Thai employees. There is the risk of imprisonment, fines of up to USD15,000 per day and corporate tax for both business owners and employees.

The Thai Foreign Business Act protects Thai traders and marketers from foreign competition. Those who use their own employees to sell their products or services in Thailand turn them into an (illegal) permanent establishment. Draconian penalties are imposed for violating or circumventing the law. This also includes employing sales or service staff through personnel service providers or law firms. Often, the latter themselves are unaware of the risks they expose themselves and their clients through a “payroll” or “staffing service” ” for illegal activities of foreign customers.

In this article, we explain exactly how to recognize a punishable “bogus employment” and how to do it right.

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Retirement Visa for Thailand – here´s how!

Retirement Visa for Thailand – here´s how!

Many people dream of moving to Thailand once they retire. There are a few things to take care of before that can be done, applying for a Retirement Visa being one of the most important ones. Getting a retirement Visa in Thailand is fairly easy once all the correct documents have been submitted to the competent Embassy. However, there are a few requirements that could cause problems for some applicants.

Mostly the applicants face difficulties with the financial requirements of the retirement Visas, as well as the health insurance requirements. The financial aspects of the Visas aside, there are some alluring sides to holding a retirement Visa in Thailand, multiple-entry travel and Visa extensions only once a year to name a few.

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10 years Sanet “Business Unit” for Sales and Service in Thailand

10 years Sanet “Business Unit” for Sales and Service in Thailand

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.”

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Case Study: That’s how Sanet organized a successful investment in Thailand

Case Study: That’s how Sanet organized a successful investment in Thailand

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.

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Loyal Employees in Thailand

Loyal Employees in Thailand

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.

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Case study: Fraud by sales partners in asia

Case study: Fraud by sales partners in asia

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.

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Recruitment in Thailand – what is the HR Manager’s role?

Recruitment in Thailand – what is the HR Manager’s role?

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.

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How to make a joint venture a recipe for success in Thailand?

How to make a joint venture a recipe for success in Thailand?

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.

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