In the past it was customary for a Chinese businessman to receive protection from influential Thais in return for payments; in the early sixties Prime Minister General Sarit is alleged to have diverted 140 million Baht from public funds into his own bank account, and a recent study revealed that 75 percent of Thai MPs received commissions from development projects in their constituencies.

One question that preoccupies many a newcomer is whether one should be prepared to grease any palms in order to achieve one’s objectives. It is difficult to provide a satisfactory answer. As a foreigner you should steer clear of passing brown envelopes under the table during negotiations. Such actions are unlikely to smooth the way and could land you in deep trouble if you are bidding for a government contract and the Counter Corruption Commission comes to hear of your activities. The best solution is to find a reputable agent who can handle any payments that need to be made. If you try to do this yourself, you will invariably get it wrong. Every organization operating in Thailand-whether local or foreign-has its own Mr., Mrs., or Miss Fixit who has good contacts and knows exactly what to do to make the wheels run smoothly.

The problem of corruption is regularly aired in Thailand, and attempts have been made to combat political corruption, in particular. At a recent election some of the contests had to be rerun because they were shown to have been rigged. Also, some of the country’s more perspicacious leaders realize that foreign investors may shy away from countries that are institutionally corrupt. One reassuring piece of advice comes from a former British Ambassador to Thailand. “You should also know that some of the most successful Western firms in Bangkok have never ever resorted to illegal payments precisely because there are so many legal ways in which these delicate matters can be resolved to everyone’s mutual satisfaction.”

Executives at Toyota Motor’s new plant in a Bangkok suburb point out that the factory in Thailand is the first to run on clean natural gas.

The factory is equipped with robots and parts movers moving silently on the assembly floors. Toyota’s $426 million facility shows that despite the political unrest in Thailand it has not affected global carmakers’ positive views of the country.

Thailand is renowned worldwide when it comes to the production of one-ton trucks, with projected outputs of 853,000 units for this year alone. The said figure outpaced United States which according to J.D. Power Automotive Forecasting produces only 588,000 units of trucks.

Thailand is the second biggest market for trucks since it’s a common sight in rural areas where most farm products are produced. The domestic sales for this year are forecast at 510,000 units as compared to the 651,000 units forecast in the United States.

Aside from Toyota, Ford Motor Co, General Motors Corp, Nissan Motor Co Ltd, Mitsubishi Motors Corp, Isuzu Motors Ltd, and Mazda Motor Corp. have also opened factories in Thailand for their export vehicles and mostly have started building their plants after Asia’s 1997/98 economic crisis. Each of them has invested 140,000-180,000 trucks a year, exporting them to 100 countries from Australia and the Middle East to Europe and even reaching Latin America.

In recent years the Thai government has offered proposals that include generous incentives for global carmakers just to encourage them to invest in export-oriented facilities for small economy sedans. The Thai government aims to further develop its auto industry which is its second-biggest industry after computers and electronics, employing about 350,000 people and accounting for nearly 15 percent of gross domestic product.