“I don’t know any Thai. Is it going to be a problem running a business here?
This is one of the main concerns of many entrepreneurs who want to start their business in Thailand.
In this article, you will find out whether or not it’s necessary to speak Thai in order to run a business here, including any challenges you will have if you can’t speak the language.
How Important Is It?
To determine whether or not you need to speak Thai, there are five factors that need to be considered, including:
Business Location
If you plan to set up your business in expat provinces such as Bangkok, Chiang Mai, and Phuket, then you might not need to be able to speak Thai.
You can find a lot of English-speaking staff and service providers in these provinces.
Employees
It’s becoming easier to find Thai employees who can speak English fluently. A lot of Thai people also graduate abroad.
- Many Thai people at managerial levels and above are able to speak English competently at a business level.
- Although some Thai employees in operations levels might not be able to speak English well, they are usually still able to handle basic English conversations.
The main problem with Thai employees is that many of them are unable to understand complex English. To solve this problem, you can hire a manager who can speak English fluently, tell him/her what you want, and let him/her manage Thai employees on your behalf.
You can read this exclusive article on how to hire and manage great Thai employees.
Service Providers
Similar to employees, a lot of service providers in Thailand are now able to communicate in English, especially lawyers, accountants, and office providers.
However, their English skills usually go together with their prices. If they are able to speak English well, their prices are going to be more expensive than other service providers.
There are also some limitations with how well they can speak English. For example, many Thai web developers are able to only communicate in basic English. They might not be able to understand 100% of what you want them to do.
We know many expat companies in Thailand that have problems finding local service providers for simple jobs. They also tend to get charged higher prices.
Darren White, the managing director of the Coffee World, gave great insight on our Brewed in Bangkok Podcast when it comes to “expat prices” while running a business in Thailand.
Customers
When you run a business in Thailand, you need to know your target customers. If a majority of them are Thai, then it’s important for you to be able to speak Thai.
Government Agencies
If you need to deal with government agencies yourself, then you need to speak Thai. The Thailand Board of Investment is one common exception, since its officers are able to communicate in English.
If you don’t need to deal with government agencies yourself, then you can either hire a service provider or a Thai employee to handle it on your behalf.
So, Do I Need to Be Able to Speak Thai?
In short, you don’t need to be able to speak Thai in order to run a business in Thailand.
But this shouldn’t stop you from learning Thai. Being able to speak Thai, even at a basic level, comes with many benefits, both for your personal and professional life.
Many expats who run businesses in Thailand are able to speak basic Thai.
Whatever the case, it’s usually a good idea to hire a Thai manager or secretary who can speak English fluently and let him/her be your personal translator. It will help you run a business in Thailand much more smoothly. You also tend to get better prices when you let your Thai employees deal with local service providers.
As a business owner in Thailand, it’s also equally important to understand Thai culture and how to manage a cross-cultural team.
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