The majority of foreign and local investors are looking forward to starting a business in Thailand. But the question is what makes Thailand a startup hub? Thailand has an ambitious goal of developing 50,000 high skilled workers. Even the Prime Minister, Chan-o-Cha has high expectations to make Thailand a global startup center to attract investors from different corners of the world.
The startup goal goes hand in hand with the initiatives taken by the national government to modernize Thailand by making use of technology. It wants to transform the business economy into a value-based economy through the mobilization of innovations and technology.
Thailand is a beautiful destination known for its exotic beaches and idyllic scenery. The economic condition of Thailand depends heavily on the tourism sector. The mouth-watering delicacies, intoxicating beauty, friendly people, relaxing lifestyle, lower living costs, and the pleasant climate makes it a perfect destination to start a business in Thailand.
What Makes Thailand A Perfect Startup Destination?
There are various factors that make Thailand a perfect destination for startups. People here can work from their laptops or smart devices from any part of the world.
The Cost of Living Is Low
One of the main reasons why Thailand is a perfect startup destination is because of the cost of living in Thailand, especially in modern cities like Bangkok and Chiang Mai. The rentals for home and commercial spaces in Thailand are also cheap and affordable.
Easy Availability Of Transport
Thailand has an excellent transport system connecting not only within the cities but also throughout the southeastern region.
Location And Infrastructure
Thailand is located in the center of Southeast Asia with huge naval and ground links with bordering countries.Thailand is a perfect gateway to the Asia Pacific and ASEAN markets thus making it a perfect startup hub. The infrastructure also plays an important role which includes an improving computerized structure that reached sky limits after the introduction of 4G. This innovation helps opened wide the ways to web-based business, a prominent business inside the Thai society that is moving the essence of the nationwide financial make-ups.
Infrastructural issues like slow internet connection and power cuts are not a major problem in Thailand. Infrastructural supports are also available in Chiang Mai and Bangkok.
Free Enterprise Economy
Thailand holds a beneficial position because it is within ASEAN’s highest three in terms of volume and size of international trade. Zero levies between the best five ASEAN individuals (counting Thailand) add to it’s advantage. Read more about ASEAN Region
Foreign Investment is welcomed
The Thai government invites remote speculation and by and large leads professional venture approaches, something that pulls in enthusiasm from universal investors. The nation likewise keeps up a market-oriented and open economy and foreign investment is viewed as a method for advancing Thai business, technology, and economic development.
The government of Thailand offers a wide range of services through The Thailand Board of Investments which includes- support services, tax incentives, and import duty franchises to organizations from different divisions trying to put resources into the market. Download the BOI Guide to understand how it operates.
Supports Entrepreneurial Culture
An important feature of starting a business in Thailand is that the business culture is supported everywhere including Phuket, Bangkok, Chiang Mai (the second largest city of Thailand). Furthermore, there is a large group of collaborating space in Bangkok. The expansion of business visionaries and collaborating space in Bangkok are real factors that make it simpler to oversee business activities and it is done at reasonable expenditures.
Accessibility To Venture Capital Funding
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.
Along with access to project funds, businesses in Thailand can get tax free incentives from Thailand BOI. If you wish to start a business in Thailand you can enjoy the benefits of the Board of Investment. The benefits include a tax package consisting of attractive incentives like – essential work certifications, no constraint on manufacturing undertakings.
Quality Of Lifestyle Is High
Bangkok is a metropolitan city that is affordable as well as modern. All the luxuries and life conveniences can be enjoyed without breaking your wallet at all. The people of Thailand are friendly and the city is beautiful and attractive as well. Because of the friendly nature, you can easily cooperate with other people, make friends with local and foreign investors, get access to funding for your ventures, and work together with other entrepreneurs. You will find that the lifestyle is high but the city is cheaper than it is in other cities.
A well-educated workforce plays a very important role in business growth and success. The majority of the citizen living here are well educated and knowledgeable. If you are planning to start a business in Thailand you will not have to face any difficulty regarding the hiring of local staff. The people here are competent and highly qualified so you can expect quality work from them. Even the local people have good command over English and they can speak with you in a fluent manner.
Thriving Tourism Sector
Thailand is a beautiful destination known for its exotic beaches and pleasing sceneries. The economic condition of Thailand entirely depends on the tourism sector. It is one of the most visited destinations which also includes Bangkok and Phuket. It would make incredible advantages and a bit of leeway for the proprietors to create meaningful relations with the customers. Individuals from around the world make a visit to this spot and find opportunities to meet their potential clients who might be concerned about their business. You can earn a very high profit if you start the right business in Thailand. If you want to start a business in Thailand, you need to know your strengths and weaknesses first. Without the right choice of business, you may not earn a handsome profit.
Which Industries are Booming for Startups
The major contributor to the economy of Thailand is the Tourism sector. Therefore, the startup opportunities in Thailand are more in this sector. One of the major examples of a startup is Local Alike, an endeavor that joins social obligation with the travel industry by working together with Thai people groups and organizations to make credible and vivid encounters for explorers.
The most attractive ventures among foreign investors, along with payment and fintech is the E-commerce startup. The rise in the number of online users and high rates of penetration are the sole causes of rising in e-commerce ventures. Few other factors influencing the rise of the e-commerce venture are the rise in the middle-class population acquiring high powers.
However, the new companies are also looking for new doors in more specialty showcases as well. An example of such a venture is the Wishbeer, which became a very famous online selling beer shop on the internet. Having more than 500 stocks, the customers can order an Agri-Tech beer and it will be delivered to them within Thailand in the shortest time possible.
Agritech and savvy cultivation are very much popular because 30% of the population depends on agriculture for fulfilling the basic necessities of life. Thailand is also planning to launch accelerators for setting up an Agri-Tech venture in Thailand in collaboration with global startup accelerators.
Also, Thailand is a safer place for doing business. It is considered to be a safer country as compared to the others. Therefore, one can carry out their business operations in a hassle-free manner. If you are starting a business in Thailand, it would be the best decision and with the right choice of business, you can earn a good amount of profits.
Read more -a comprehensive article on Investment opportunities in Thailand.
Interesting Reads :
- Business Development in Thailand/Asia,
- Thailand Market Entry, Representation Services in Thailand
- Business in Thailand – How Different it is from Rest of the World
- What you should consider before doing business in SE Asia
- Top 10 Reasons for Startup in Thailand
- Top 10 Business Opportunities in Thailand
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