Doing Business in Thailand
Investing and Doing Business in Thailand
- Gateway to Asia
Thailand enjoys a strategic location and serves as a gateway into the heart of Asia – home to what is today the largest growing economic market. The country also offers convenient trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), and easy access into the Greater Mekong sub-region, where newly emerging markets offer great business potential.
- Hub of ASEAN
Thailand was one of the founding members of ASEAN and has been instrumental in the formation and development of the ASEAN Free Trade Area (AFTA). AFTA entered into force on 1 January 2010 for the six original ASEAN (ASEAN-6) members (Thailand, Singapore, Malaysia, Indonesia, Philippines, and Brunei) thereby reducing import duties to zero; the so-called CLMV countries (Cambodia, Laos, Myanmar and Vietnam) will follow suit in 2015.
Thailand has forged close economic cooperation with other ASEAN member nations, and Thai manufactured products and services have access to their markets, which includes all 10 ASEAN countries. ASEAN is home to more than half a billion people GDP in excess of US$1.5 trillion and total trade of well more than US$1 trillion per year.
For more information please go to www.aseansec.org.
- Social and political stability
Thailand is a foreigner friendly and welcoming Buddhist country. The country's form of government is a constitutional monarchy, with a high reverence for the Thai Monarchy, and devotion to the teachings of Buddhism. And although the vast majority of the people in Thailand are Buddhist, all religions are welcome, and His Majesty the King is the patron of all religions.Growing economy
Economically, this country of 67 million people is characterized by steady growth, strong exports and a vibrant domestic consumer market. Abundant natural resources and a skilled and cost-effective work force help attract foreign investors, and enable them to prosper and develop industry in Thailand.
- Sufficient infrastructure
Thailand has good infrastructure with modernized transportation facilities, as well as upgraded communications and IT networks that ensure optimum business and living conditions. World-class industrial estates boast sophisticated facilities and support services to meet the needs of multinationals and SMEs alike.
- FDI policies
The country's well-defined investment policies focus on liberalization and encourage free trade. Foreign investments, especially those that contribute to the development of skills, technology and innovation are actively promoted by the government. Thailand consistently ranks among the most attractive investment locations in international surveys, and the World Bank's 2010 Ease of Doing Business report places Thailand as the 12th easiest country in the world in which to do business.
For more information please go to www.thinkasiainvestthailand.comGovernment support and incentives
- Numerous government agencies support investors.
Through the Board of Investment, the government offers a range of tax incentives, support services and import duty exemptions or reductions to an extensive list of promoted activities. Companies receiving investment promotion privileges from the Board of Investment not subject to foreign equity restrictions in the manufacturing sector, and there are no local content requirements nor export requirements, as Thailand's investment regime is in total compliance with WTO regulations.
- Long–established and newly emerging industries
With steady economic development and strong support industries,the country's industrial production has grown and diversified rapidly both in long–established and newly emerging industries.
The government has emphasized attracting investment in six sectors that have been determined to be key to the country's developmental objectives. These six target industries include: agriculture and agro-industry, alternative energy, automotive, electronics and ICT, fashion, and value-added services including entertainment, healthcare and tourism.Friendly and rich culture
Thailand has gained a well-deserved reputation throughout the world for its gracious hospitality. The friendliness of its people and the diverse nature of Thai culture make visitors feel safe and at home in Thailand.Education and healthcare services
The education standards in Thailand are accepted by many international examining bodies, and a great number of international schools and colleges offer world-class education, while its universities are outstanding.
In terms of healthcare, the country has developed an excellent reputation globally, due to its internationally-certified doctors and medical staff, and modern facilities and equipment. It is so good that one of the fastest-rising tourism sectors is medical tourism, with international patients visiting Thailand to take advantage of Thailand's world-class and extremely affordable health care system.
For more information please go to www.boi.go.th.
- Thailand`s Global Economic Ranking
51st Largest Area
13th Largest Tourist Receipts
19th Largest Agricultural Output
20th Largest Manufacturing Output
1st Largest Hard Disk Drive Producer
1st ASEAN Largest Automobile Producer
1st ASEAN Largest Electronic Appliance Producer
23rd Largest Economies by Purchasing Power
34th Largest Economies
37th Largest Services OutputBest Prospects
Robust economic growth in Thailand has created numerous opportunities for foreign companies in varying industry sectors, including the following:
-Automotive Parts and Services/Equipment
-Broadcast Equipment Defense Equipment
-Electrical Power Systems
-Agro-industry, Food Processing and Packaging Equipment
-Medical Devices and Services
-Printing/Graphic Arts Equipment
-Security and Safety Equipment
-Water Pollution Control Equipment
For more information please go to www.boi.go.th, www.thaitrade.com and www.tccc.or.thInfrastructural Development Projects
The Thai government has initiated several infrastructural projects in the fields of transportation, telecommunications and energy. Key projects include the high speed trian liking Bangkok with various parts of Thailand and neighboring countries. In addtion, there is also the Dawei Deep Seaport Project in Myanmar to create a land bridge in the region. As a mega project of this magnitude requires a high level funding.
For more information please go to www.thaitrade.ca and www.ditp.go.thThailand Internatioanal Trade Fair 2013
Please visit www.thaitradefair.comCost of Doing Business in Thailand
For a guide on the costs of doing business in Thailand please see www. boi.go.th/upload/content/BOI-Cost2011_53997.pdfOne Start One Stop Investment Centre (OSOS)
The Royal Thai Government currently offers investors a truly comprehensive service to assist in dealing with multiple governmental agencies. By providing a single location where investors get all their questions answered about how to start and operate a business in Thailand In addition, services are offered for company registration, and advice is given on completing applications for various official licenses/permits.
For more information please go to www.boi.go.th or http://osos.boi.go.th.A newly industrialized country, manufacturing has become its leading sector and growth engine. Agriculture continues to provide adequate food for domestic consumption, also producing several commodities for export. Since the recent past, Thailand is one of the world’s largest exporters of rice and natural rubber.
Since 1985, the relative contribution of agriculture to GDP has declines, while that of manufacturing goods has rapidly increased. As a once agriculture-based country, the Thai manufacturing sector started, indeed, with agricultural commodity processing. Most important was the production of foodstuffs, followed by textiles, clothing, and leather products, to large extents for export. However, manufactured goods that have rapidly grown in volume and value comprise high-tech products including components and computers, automobiles as well as automotive parts, electronic/electrical appliances, and precious stones as well as jewellery.
In the late 1980’s, Thailand launched large-scale industrial development such as by setting up the Eastern Seaboard south-east of Bangkok, which includes deep-sea port facilities, a petrochemical complex based on natural gas, and an integrated steel complex. From 1987 onward, foreign investment also rose rapidly in the automobile and electronics industries.
Apart from exports, tourism is an important sources of foreign exchange revenue. Thailand has been well placed to benefit from tourism. It is within easy reach of the Americas, Europe, Africa, East Asia, Australia and Oceania, and a gateway to neighbouring countries. Tourism attractions in Thailand include nature-based destinations, historical sites, culture, people’s friendly dispositions, Thai cuisine, recreational facilities, and shopping malls. Concerted efforts are geared to help protect and preserve the environment at all sites with tourism attractions, resulting in rising popularity of eco-friendly or green tourism, in recent years. With the protected natural environment, green tourism supports and uphold local communities’ traditional ways of life.
Up Coming Events
List of the International Trade Fair 2013