Thailand Investment In 2020 And Beyond
The Investment Opportunities in Thailand for 2020 and beyond have been challenging in; which the Thai Government has provided the potential investors with an attractive scheme and for registered investors the best incentives. The Thai Government has provided incentives to attract foreign investors through an Eastern Economic Corridor (ECC) area and the S-Curve industries. What is Eastern Economic Corridor (EEC)? This is a massive project which is expected to increase growth in Thailand; there have been numerous investments made, such as:
- Motorway Project (2 Billion USD)
- High Speed rain (2.5 Billion USD)
- Double track railway (2.2 Billion USD)
- Leam Chabang Deep Sea Port (1.1 Billion USD)
- Ta Phut Deep-sea port Expansion (350 million USD)
- U-Tapao airport expansion (7.1. USD)
Breach Of Contract
The Thai government has identified 12 industries that are targeting form promotion and support for the purpose of advancement.
These projects underwent stages of construction which have spurred the economic growth of the Thailand economy.
- Education Development
- Defense Industry
- Medical Industry
- Digital Industry
- Biofuels and Biochemicals
- Logistics and Aviation
- Next-Generation Automotive
- Robotics for Industry
- Food for the Future
- Agriculture and Biotechnology
- Smart Electronics
- Affluent, Medical and Wellness Tourism
Juslaws & Consultcan provide legal advice and assistance on processing the businesses which are under the 12 targeted industries being promoted by the Eastern Economic Corridor with our international and Thai lawyers who have experience dealing with foreign investments.
Why Consider Investment Opportunities in Thailand?
Thailand boasts a brand new industrialized, emerging market economy, and international investors equate Thailand with its robust growth rates that are impacted by the ever-increasing population and exceeding global exports.
Overview of the Economy in Thailand
While Indonesia has the largest economy in Southeast Asia, Thailand is a close second. Per capita, however, it only ranks fourth. Its GDP growth falls to around 4% to 5% per year, which gains a lot from its strong automotive industry and its significant rice and agriculture exports.
Unfortunately, the pandemic largely disrupted these practices, along with domestic consumption (general and wellness), tourism industry, and trade. Regardless, the GDP managed to recover during the course of 2022.
Why Consider Investment Opportunities in Thailand?
Thailand boasts a brand new industrialized, emerging market economy, and international investors equate Thailand with its robust growth rates that are impacted by the ever-increasing population and exceeding global exports.
Overview of the Economy in Thailand
While Indonesia has the largest economy in Southeast Asia, Thailand is a close second. Per capita, however, it only ranks fourth. Its GDP growth falls to around 4% to 5% per year, which gains a lot from its strong automotive industry and its significant rice and agriculture exports.Unfortunately, the pandemic largely disrupted these practices, along with domestic consumption (general and wellness), tourism industry, and trade. Regardless, the GDP managed to recover during the course of 2022.
Investing in Thailand with ETFs
Exchange-Traded Funds are the easiest way to invest in Thailand. This is by far the most popular option for US investors wanting access to the Thai market. Overall there are around 120 securities that find their weight primarily in financials and energy, with 40% of its portfolio being attributable to its three largest holdings. On top of that, ETFs are also comparatively cheaper than other mutual funds.
Risks of Investing in Thailand
Before considering investment opportunities in Thailand, it is pertinent to consider the geopolitical risks that are involved in Thailand's economy. There are also some risks to the country's economy related to monetary policy and inflation. Should Thailand fail to contain one of these risks, there is a real potential for economic destabilization.
Some geopolitical risks might include:
- The inflation rate in Thailand has been persistently weak, remaining around 1%, which can be attributed to high household debt and declines in private and public investment.
- Since 1932 there have been 20 constitutions and charters, several military coups, and internal challenges within their monarchic rule.
- There are trade tensions between China and the US that negatively affect Thailand, including restrictions on import and export opportunities.
Before committing to any investment opportunities in Thailand, these risks need to be carefully considered. Overall, it is best for foreign investors to keep Thailand as part of a diversified investment portfolio.
Investment and Business opportunities in Thailand
Real Estate Business
Buying and selling land in Thailand is a great way to grow investments. The cost of real estate is constantly rising, which ensures that a real estate company will continue to earn revenue for its investors. Having a competent Thai team to deal with Thai owners while an international team deals with foreign investors is a recipe for success in this industry.
Import and Export Company
Thailand is a major transportation hub in South-East Asia which makes it a great trading post with other countries. Some of the top companies in this area that often attract foreign investors include precious metals, mineral fuels, the rubber industry, raw materials, smart electronics, and electrical machinery. Having a successful import and export company can be a great investment opportunity in Thailand. While foreign investment in this sector can be excellent, it is difficult to establish the necessary licenses in the private sector.
Translation Services
The Eastern Economic Corridor is full of international investors and expat owned businesses, and this has meant that a significant need for translators has emerged. There is a rising need for important documents to be available in more than one language, including English and other Asian languages. This has meant that there is an investment opportunity in companies that can translate documents.
IT Consultation Business
Most Thai companies now understand that business takes place in the digital world. Especially if they want to do business with foreign companies. This has resulted in a rise in popularity of investment in the digital industry and things like cloud security which some believe will see the highest growth throughout the industry. The entire business community requires some kind of IT service, and this has also meant that consulting companies are also in demand lately. Even marketing on digital platforms has become exceedingly popular and is often the key factor in the economic growth and success of a company.
Catering Company
A significant part of Thai culture, including Thai tourists, relies heavily on food and eating. Street food is extremely popular, and even food delivery is becoming a good investment option. Catering companies are a great way to take part in investment and to immerse yourself in the Thai culture along with local people. Modern apartments in areas like Chiang Mai and Bangkok are not well equipped for home cooking, which means that there is a lot of market for a catering business. Reliable catering is also essential to the hotel business and to public health.
Automobile Rental Business
A business that can offer vehicle rental is essential to the Thailand Board of Investment due to the large population in Thailand. Drivers should have an international driver's license if your rental businesses include a driver, as per the Thai government's policy, but if there are no drivers, then a simple opportunity to rent a vehicle can serve as one of the major local support measures in Thailand. Reliable transportation is in high demand in Thailand, and the Thai government does not have the resources to provide this now.
Jewelry Business
Thailand has abundant natural resources, but you might not want to be part of the raw import and export business, so for many investors, a good middle ground is found in the jewelry business.
In Closing
––≠≠Thailand is always looking for new investors for business opportunities, education development, and new business in niche areas like renewable energy.
You might be interested in the following resources:
Setup your Thai Company with BOIThailand
Speak with a Foreign Business License Lawyer
Everything you need to know on - Company Registration Thailand
