For quite some time, China has consistently invested in Thailand, which has become a hub for many Chinese investors due to its strategic location at the centre of the ASEAN free trade bloc with access to both China and India. This has mostly shown up in the push for digital economies, establishing Thailand as a significant hub for connectivity and new technology in Asia. That said, Thailand is a very advantageous place to invest because of its rapid modernisation and political location. You are assured of finding a niche that will bring in money because the global community has its leisures and needs.
Overview of Thailand’s Economy
The second quarter saw Thailand’s economy grow at its quickest rate in a year as the COVID-19 restrictions were loosened. However, the multi-year high inflation rate and China’s slowdown continue to hinder the emerging recovery. According to Capital Economics in a note, “Thailand’s economy kept rebounding in the second quarter of the year on the back of a reopening boost. Although higher commodity prices will drag on prospects, with the tourism sector enjoying a decent rebound, we expect the recovery to continue over the coming months”. However, the country anticipates that inflation will have a negative impact on consumer spending and investment, while a recession in the global economy will limit exports.
Why Invest in Thailand
Even with the threat of inflation and recession, investments of foreign corporations increased dramatically during the first half of the year compared to the same period of the previous year. Investments from Japan, Singapore, and the United States led the way in securing opportunities in the country’s service industries. Here are four reasons why Thailand serves as a global hub for international startups and investors:
- Competitive Business Costs – Thailand has a lot of potential for business expansion, with its economy being the second biggest in the ASEAN.
- Strong Supply Chain & Value Chain Capabilities – Thailand has rich agricultural wealth and is ranked among the top three ASEAN exporters. It is one of the world’s biggest exporters of food and agricultural products.
- Top Research & Development Investments from the Private Sector – According to the Global Innovation Index, the gross domestic expenditure of the private sector on research and development was the highest for two consecutive years.
- Intensive Startup Ecosystem Support from the Government – The National Intelligence Agency of Thailand was recognised as a government agency that actively supports the startup ecosystem to attract foreign investment.
“For the remaining months, we expect continued foreign investment in Thailand due to the government’s investment promotion measures, the state economic stimulus measures, the country’s reopening to international tourists, and greater convenience in doing business,” Deputy Minister of Commerce said.
Business & Investment Opportunities
There are quite a number of business and investment opportunities for foreigners looking for the perfect niche. Here are the top five ideas to consider when investing or establishing a business in Thailand:
- Import and Export Company
Thailand makes a great trading post with other nations because it is considered as a major transportation hub in Southeast Asia. It is also an excellent market for importing Western products due to its large expatriate community. In addition, both locals and foreigners are willing to pay for Western goods regardless of price. Top companies that usually attract foreign investors include electrical machinery and equipment, precious metals, mineral fuels (oil included), the rubber industry, and smart electronics. Having a profitable import and export company in Thailand can be a great investment.
- Real Estate Company
It is one of the most important industries in Thailand. Its GDP contribution has been growing in the past decade. The cost of real estate is continuously rising, so buying and selling land is a profitable way to grow investments. To become successful in this industry, you may consider hiring a skilled Thai team to deal with Thai owners and a separate international team to manage foreign investors.
- Translation Services
Many are in increasing need of translation services because many expatriates and corporations cannot read or speak Thai. Also, there is a big demand for translating critical documents. Most Thai businesses also require an in-house English translator because the level of English comprehension in Thailand is substantially lower than in other parts of the world. Moreover, there is a growing demand for Thai businesses to translate papers into other Asian languages. Engaging a proficient translation team (consisting of natives and polyglots) is crucial for the success of the company.
- IT Consulting Business
Thai companies realise that business transactions have transitioned digitally. Hence, IT consulting companies are in popular demand. IT consulting services help clients assess different technological strategies and align them with their business or process strategies. Marketing on digital platforms has also become exceedingly popular and is often the critical element in a company’s success. For this reason, this business would see the highest growth among the industries.
- Catering Company
Many important business opportunities and decisions in Thailand are conducted while eating. Many Thai people find preparing large meals to entertain guests inefficient. In addition, many people opt to eat most of their meals outside. Therefore, catering businesses are growing in popularity both among middle- and upper-class Thai people and expats. Birthday parties, wedding receptions, anniversary dinners, and retirement celebrations are just a few of the many events for which catering firms are employed.
Conclusion
Thailand is full of opportunities for those looking for profitable business and investment. As a result of the global health crisis, many doors have opened. Numerous companies have resorted to digital platforms for their campaigns and marketing strategies, while others have made their way to establishing creative agencies, like photography and graphic design. Thus, more ideas can be added to the list. Many companies and investors are already reaping the rewards of establishing business and investing in Thailand. Inquire now on how to register a Thai company, and we will provide the details you need to get you started.
