If you are planning for opening a business in Thailand, consider it to be the best decision of your life. You will need to find a location that is not just cost-effective but it should also be able to motivate your workforce. It has to be a location where you can find other entrepreneurs sharing some thoughts with you and you can find like-minded businessmen to build up your own network. The maximum GDP of the nation is from items that are exported far and wide.
Thailand is a big place and you need to decide which will be the right location for you. After thorough research, it has been found that the district of Phrom Phrom or Asoke in Central Bangkok is the best place for setting up a company in Thailand.
Thailand is blessed with an abundance of raw resources and varieties of fisheries and stones. Thailand is one of the major exporters of textiles, jewelry, tourism, electrical gadgets and so much more. Therefore the investors, both local and foreign ones, find it to be the best destination to start a business.
In this article, we will talk about why it is best to set up your business in this influential area.
Location Matters a Lot
Bangkok is one of the ideal locations to set up the real estate industry. Phrom Phrom or Asoke in Bangkok is the right place because it is located in the central area. The district is home to two of the very famous subway stations where you and your employees can travel. Bangkok is home to a variety of shopping destinations and businesses and therefore, your employees won’t feel bored after meetings. Benjasari Park and Queen Sirikit Park are one of the famous parks in Bangkok where the office goers can rejuvenate, especially if the lush green landscapes oversee their offices. Your employees will be happy and satisfied if you plan to open your business here so they can relax after work.
Bangkok is also home to various shopping malls and delicious lunch places. Therefore, it becomes very exciting for the employees to work as well as enjoy varieties of delicacies and also visit the shopping malls. Just imagine your office is located somewhere near to this locality with so many amenities. Your employees will not be enjoying their work but will also have a healthy working environment. It will decrease their stress levels and make them more productive.
Working Hours and Wages are low
The majority of foreign investors think of setting up a business in Thailand because of the low wage rates, which is much lower as compared to other western nations. The daily wage will vary depending on the qualifications, skills, and expertise. However, the starting salary will be a minimum of $8.5 per day. The workers have to work for 8 hours a day and the workers are given permission to work up to 48 hours per week. The majority of the companies have a working schedule from Monday to Friday and they operate for 8 hours daily. Also, the employees can enjoy 13 national days every year and a minimum of 6 days holiday after working for a consecutive 12 months. The best thing is that the female employees can enjoy 90 days of maternity leave, out of which payment for 45 days will be given to them.
Population of Thailand
Thailand is home to more than 68 million people and comprising of different nationalities and ethnic minorities like Lao, Chinese, Indian and Cambodian people. Do you know why opening a business in Thailand is advantageous? Because Thailand is home to so many minorities and nationalities, each individual brings different skills into play. You will find people having different skills from different company backgrounds which can prove to be beneficial for your business. The world constitutes 1.01% of the Thai population which means that out of every 100 people; at least one of them belongs to Thailand.
Gateway to Asia
Thailand is a perfect gateway to the Asia Pacific and ASEAN markets thus making it a perfect startup hub. One of the best reasons to start a business in Bangkok is that it has a perfect location and is home to one of the largest rising commercial marketplaces in the modern world. Thailand maintains trade relations with India, China and newly formed associations of the South East Asian Nations. Altogether it has been termed as ASEAN.
If you are setting up a business in Thailand, you will easier access to the sub-region of Greater Mekong, where new potential markets are emerging and enhances the chance of doing greater business over here. Thailand is the founding member of ASEAN and has actively participated in the formation of a free trade area of ASEAN. This is also known as AFTA, which came into force on 1st January 2010. You can also get accessibility to the dynamic markets of the region. Thailand is attractive for its production base and therefore it attracts various foreign companies to get into a free trade agreement with Thailand.
Availability of Venture Capital
The majority of the ventures find it difficult to get access to venture capital. Venture capital in most of the markets is tricky, hindering the development of numerous new companies. However, this is just the opposite in the case of Thailand. First of all, there are all of five significant investment firms situated in Bangkok, Thailand. Also, the businesses get financial help from the incredible six worldwide firms that are committed to providing financial support to these businesses. Startup in Thailand has a panel of investors who can assist you to get funding or JV opportunities.
You may read some interesting articles on Angel Investors in Thailand and how to obtain financing for your projects in Thailand
Though most Thai business is still done under the Thai language, the upcoming generation is taking English seriously and working hard to break the language barriers which is keeping them from being competitive in global standards.
Finding employees having good communication skills are becoming easier to be found in Bangkok, Thailand. This is because almost all the universities and schools teach English to the students. Therefore, the majority of the young generation of Thais living in Bangkok can fluently speak in English. However, outside Bangkok, it is still an issue as English is hardly spoken.
Many schools teach Chinese and Japanese. Some of the graduate candidates also have a command over French and German language. This number is constantly on the rise. Therefore, if you are opening a business in Thailand, you can make deals with other countries as well. The demand for studying business in universities is also gaining ground. However, you will still find the language barrier in Thailand. Usually, the employees below the management people speak in the Thai language, thus making it difficult to have a dialogue with the foreigners.
Stable Economy of Thailand
Thailand is described by relentless development, strong exports, and a pulsating consumer market. Availability of natural resources and a talented and financially savvy work power aid to pull in outside speculators and empower them to flourish and create an industry in Thailand.
Along with high connectivity to highway systems, Thailand also provides- Seven noticeable worldwide air terminals, city-wide mass travel in Bangkok, 4G/Wi-Fi and broadband access all through the nation, two worldwide waterway ports, deep seaports including fluid piers, tank farms, containers. Thailand has also thought of developing new railway systems connecting Bangkok with east, west, south, and north of Thailand. The BANGKOK transit system has been expanded into the suburbs as well.
Support from Government and Incentive Schemes
The Board of Investment of Thailand provides various tax packages with incentives and support systems to the employees. This is done to meet the national objectives of development; starting a business in Thailand is beneficial for this purpose. Board of Investment (BOI) also provides investment promotion honors to the companies. It is known for coordinating the activities of work permits and service centers. If any foreign company is issued a BOI certificate, it is also permitted to bring in foreigners under work permits on a 1:1 ratio.
Education and Health Care Facilities
The educations standards are acknowledged by numerous worldwide bodies and there is an enormous number of global colleges and schools in Thailand that provide top-quality education, and some of the famous colleges rank first in the nation. Regarding medicinal services, Thailand has built up superb notoriety all around because of medical staff, highly qualified and trained doctors, and the availability of modern tools and medical equipment. The majority of the destinations and the major cities in Thailand have world-class global hospitals where patients are treated with a westernized approach and the prices are in accordance with the western prices. One of the rising industries in Bangkok is the medical tourism industry, where people from different parts of the world come here to get checkups from professional and high qualified doctors. You can think of opening a business in Thailand based on medical tourism.
New Emerging Industries in Thailand
The industrial production in the nation has grown enormously along with strong support industries and economic development. It has been identified by the government that there is a total of 15 activities that are extremely beneficial for the nation. Some of the activities include-
- Creative product designs
- Forest plantations with an exception of eucalyptus
- Aircraft parts
- Electronic design
- Avionics and propellers
- Production of electricity
- Engineering design
- Cloud services
- Calibration services
- Vocational training centers
If the projects are based on these activities, then you do not need to pay corporate income tax for it.
Also, starting a business in Thailand is beneficial because of strong corporate governance. Whether you are setting up your own Thai Company or opting for a Representative model, working with experienced Startup Specialists would let you understand the intricacies of doing business in Thailand and you can relax while the setup is done.
- Local Knowledge – The Key to a successful business
- Is this the right time to start a business in the ASEAN region?
- 10 Key Steps to endure your Startup success in Asia
- Why Thailand is a good business destination
- What you should consider before doing business in SE Asia
- How can a Startup Consultant Help you to Run your Business
- Thailand Market Entry
- Representation Services in Thailand